MIRA INFORM REPORT
|
Report Date : |
11.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
APOLLO TYRES LIMITED |
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Registered Office : |
6th Floor, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
28.09.1972 |
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Com. Reg. No.: |
09-2449 |
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CIN No.: [Company
Identification No.] |
L25111KL1972PLC002449 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNA01479C |
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PAN No.: [Permanent
Account No.] |
AAACA6990Q |
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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 Automobile Tyres, Automobile Tubes, Automobile Flaps
and Camel Black/ Rethreading Materials. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (73) |
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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 69060000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well established company having good track. Financial
position of the company appears to be sound. Directors are reported to be experienced
and respectable businessmen. Trade relations are fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered
Office : |
6th
Floor, |
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Tel. No.: |
91-484-22381902/ 03/
22381895/ 22381808/ 22381895/22372767/ 22370780 |
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Fax No.: |
91-484-22370351 |
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E-Mail : |
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Website : |
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Head/
Corporate Office : |
Apollo House, 7,
Institutional Area, Sector 32, Gurgaon - 122001, |
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Tel. No.: |
91-124-6383002 to
18/ 2721000 |
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Fax No.: |
91-124-6383017 /
3021 |
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E-Mail : |
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Factory 1: |
Perambra Plant P.O Perambra Thrissur,
District Kerala - 680689, |
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Tel. No.: |
91-480-2725901 to 09 |
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Factory 2: |
Limda Plant Premier Tyres Limited, Kalamassery Always, Ernakulam
(Kerala) – 683104, |
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Tel. No.: |
91-484-2540261 to 66 |
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Factory 3: |
Pune Plant Plot A-1, |
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Tel. No.: |
91-2138-232287 to 90 |
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Branch Office
: |
4th
Floor, 60 Skylark Building, |
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Tel. No.: |
91-11-2643 1005 |
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Fax No.: |
91-11-2647 1283 |
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Overseas
Office : |
Located at: |
DIRECTORS
As on 31.03.2010
|
Name: |
Mr. Onkar S.
Kanwar |
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Designation: |
Chairman and Managing
Director |
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Age: |
57 years |
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Qualification: |
B.Sc., Bachelor
of Administration ( |
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Date of
Joining: |
1st February,
1988 |
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Previous
Employment: |
BST Manufacturing
Limited |
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Name : |
Mr. Arun Kumar Purwar |
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Designation : |
Director |
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Name : |
Mr. K. Jacob
Thomas |
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Designation : |
Managing
Director, Vaniamapara Rubber Company Limited |
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Name : |
Mr. Neeraj Kanwar |
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Designation : |
Vice Chairman and
Managing Director |
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Name : |
Mr. Nimesh N.
Kampani |
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Designation : |
Director |
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Name : |
Mr. Raaja Kanwar |
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Designation : |
Managing
Director, Apollo international Limited |
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Name : |
Mr. Robert
Steinmetz |
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Designation : |
Formal Chief of international
Business Continental Ag |
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Name : |
Mr. K Jose Cyriac |
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Designation : |
Director (Kerala
Government Nominee) |
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Name : |
Mr. U. S. Oberoi |
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Designation : |
Chief (Project
and Corp. Affairs) and Whole Time Director |
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Name : |
Mr. Machael J.
Hankison |
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Designation : |
Chairman, The
Spar Group Limited, |
KEY EXECUTIVES
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Name : |
Mrs. Suman Sarkar |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. Shardul S.
Shroff |
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Designation : |
Senior Partner,
Amarchand and Mangaldas and Suresh A
Shroff and Company |
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Name : |
Dr. S. Narayan |
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Designation : |
Former principal Secretary to the prime minister of |
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Name: |
Mr. T. Balakrishna |
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Designation: |
Principal Secretary, industries Government of Kerala |
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Name : |
Mr. P. N. Wahal |
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Designation : |
Head –
Secretarial and Company Secretary |
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Name : |
Mr. P. Prabakaran |
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Designation : |
Additional Chief Secretary Finance Government of Kerala |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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|
5,330,791 |
1.06 |
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193,329,721 |
38.36 |
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198,660,512 |
39.41 |
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|
1,977,000 |
0.39 |
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|
1,977,000 |
0.39 |
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Total shareholding of Promoter and Promoter Group (A) |
200,637,512 |
39.81 |
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(B) Public Shareholding |
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42,843,757 |
8.50 |
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1,819,485 |
0.36 |
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10,000,000 |
1.98 |
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2,710,801 |
0.54 |
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128,715,701 |
25.54 |
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186,089,744 |
36.92 |
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46,065,677 |
9.14 |
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65,745,138 |
13.04 |
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898,050 |
0.18 |
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4,588,649 |
0.91 |
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|
3,500 |
- |
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|
3,764,549 |
0.75 |
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|
5,500 |
- |
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|
815,100 |
0.16 |
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117,297,514 |
23.27 |
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Total Public shareholding (B) |
303,387,258 |
60.19 |
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Total (A)+(B) |
504,024,770 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
504,024,770 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Automobile Tyres, Automobile Tubes, Automobile Flaps
and Camel Black/Rethreading Materials. |
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Products : |
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Exports: |
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Countries : |
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Imports: |
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Countries : |
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PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Automobile Tyres |
Nos. |
13153934 |
10528299 |
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Automobile Tubes |
Nos. |
- |
8177119 |
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Automobile Flaps |
Nos. |
- |
4523482 |
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Alloy Wheels – Traded |
Nos. |
- |
6167 |
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Camel Back/ Pre-cured Tread Rubber |
Nos. |
344256 |
195899 |
GENERAL INFORMATION
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No. of Employees : |
5257 Approximately |
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Bankers : |
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Facilities : |
NOTES: SECURED
LOANS 1. Loan from
International Finance Corporation is secured by : • A pari passu
first charge along with other lenders on the Company's land at Perambra in Kerala,
at village Limda in Gujarat and at Oragadam and Mathur village in Tamil Nadu,
together with the Factory Buildings, Plant and Machinery and Equipments, both
present and future. • A first and
fixed charge on the Company's land and premises situated at Gurgaon, Haryana,
together with all existing and future buildings, erections and structures. • A pari passu
first charge on all the movable assets except current assets of the Company. • A pari passu
second charge along with Loan from Standard Chartered Bank on all the current
assets of the Company. 2. Loan from BMP
Paribas is secured by: • A pari passu
first charge along with other lenders by way of mortgage on the Company's
land at village Limda in Gujarat, at Perambra in Kerala and at Oragadam and
Mathur Village in Tamil Nadu together with the factory Buildings, Plant and
Machinery and equipments, both present and future. • A pari passu
first charge along with other lenders by way of hypothecation over all the
movable assets of the Company, both present and future (except stocks and
book debts). 3. Loan from
Standard Chartered Bank is secured by: • A pari passu
first charge along with other lenders by way of mortgage on the Company's
land at village Limda in Gujarat, at Perambra in Kerala and at Village
Oragadam and Mathur, Tamil Nadu together with the factory Building, Plant and
Machinery and equipments both present and future. • A pari passu
first charge along with other lenders by way of hypothecation over all the
movable assets of the Company, both present and future (except stocks and
book debts); and • A pari passu
second charge along with Loan from International Finance Corporation by way
of hypothecation over all the current assets of the Company. 4. Loan from
BEML is secured by : • A charge to be
created by way of hypothecation on the assets at Village Limda in 5. 1,250 11.50%
Secured Redeemable Non-Convertible Debentures of Rs 1 Million each
aggregating to Rs 1,250 Million subscribed by Life Insurance Corporation of
India is secured by a pari passu first charge along with other lenders
created by way of mortgage on the Company's.Land and Premises at Perambra in
Kerala and at Village Limda in Gujarat together with the factory buildings, Plant
and machinery and Equipments, both present and future. 6. Loan from
IDBI Bank is secured by; • A pari passu
first charge along with other lenders created by way of mortgage on the
Company's land at Perambra in Kerala and at Oragadam and • A pari passu
first charge along with other lenders by way of hypothecation over all the
movable assets of the Company , both present and future (except stocks and
book debts). 7. Loan from Yes
Bank: • A pari passu
first charge along with other lenders to be created by way of mortgage on the
Company's land at Village Limda in Gujarat, at Perambra in Kerala and at
Oragadam and Mathur Village in Tamil Nadu, together with the factory
Buildings, Plant and Machinery and equipments both present and future. The
Charge creation is under process. • A pari passu
first charge along with other lenders by way of hypothecation over all the
movable assets of the Company, both present and future (except stocks and
book debts). 8. Loan from
Standard Chartered Bank (Second Loan): • A pari passu
first charge along with other lenders to be created by way of mortgage on the
Company's land at Village Limda in Gujarat, at Perambra in Kerala and at
Oragadam and Mathur Village in Tamil Nadu together with the factory
Buildings, Plant and Machinery and
equipments, both present and future. The Charge creation is under process. • A pari passu
first charge along with other lenders to be created by way of hypothecation
over all the movable assets of the Company, both present and
future (except stocks and book debts). The Charge creation is under process. 9. Loan from
Dhanalakshmi Bank: • A pari passu
first charge along with other lenders to be created by way of mortgage on the
Company's land at Village Limda in Gujarat, at Perambra in Kerala and at
Oragadam and Mathur Village in Tamil Nadu together with the factory
Buildings, Plant and Machinery and equipments both present and future. The
Charge creation is under process. • A pari passu
first charge along with other lenders by way of hypothecation over all the
movable assets of the Company, both present and future (except stocks and
book debts). 10. Cash Credits
and Guarantees from Banks are secured by Hypothecation of Raw materials,
Work-in-Process, Stocks, Stores and Book Debts ranking in priority to the
charge created in respect of the IFC Loan and loan from Standard Chartered
Bank, and also by a second charge on the Company's land at Perambra in Kerala
and at Village Limda in Gujarat, together with the Factory Buildings, Plant
and Machinery and Equipments, both present and future. 11. Deferred
payment credit is secured by specific assets purchased under the scheme and
include Rs 27.51 Million (Rs 24.11 Million) repayable within one year. 12. The Company
had availed interest free Sales Tax Loan from the Gujarat State Government
amounting to Rs 112.61 Million. This loan is secured by a pari passu charge
on the entire fixed assets of the Company, both present and future situated
at Village Limda in The said loan is
repayable in six equal annual installments on the expiry of 14 years from the
commencement of commercial production, May 31,2006. Accordingly, a sum of Rs
18.53 Million (Rs 18.53 Million) was paid during the year and a similar
amount is repayable within one year. 13. Secured
Loans include Rs 729.11 Million (Rs 576.74 Million) repayable within one
year. 14. Maximum amount outstanding on Commercial papers at any time during
the year is Rs 2,220 Million (Rs 2,250 Million). |
|
Banking
Relations : |
- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Joint Venture
Company : |
Michelin Apollo Tyres Private Limited |
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Memberships : |
Confederation of Indian Industry |
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Associates : |
·
Apollo International Limited (AIL) ·
Encorp E Services Limited ·
UFO Moviez India Limited ·
Landmark Farms and Housing (Private) Limited ·
Sunlife Tradelinks (Private) Limited ·
Travel Tracks Limited ·
Classic Auto Tubes Limited (CATL) ·
PTL Enterprises Limited (PTL) ·
National ·
Pressurite (Pty) Limited, ·
Apollo Finance Limited ·
Artemis Medicare Services Limited ·
Artemis Health Sciences Limited ·
Apollo Automotive Tyres |
|
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
730000000 |
Equity Shares |
Re.1/- Each |
Rs.730.000 millions |
|
200000 |
Cumulative Redeemable Preference Shares |
Rs.100/- Each |
Rs. 20.000 Millions |
|
|
Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
504024770 |
Equity Shares |
Re.1/- Each |
Rs.504.020
Millions |
|
|
Add Forfeited Shares |
|
Rs. 0.070 Million |
|
|
Total |
|
Rs. 504.090 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
504.090 |
504.090 |
488.510 |
|
|
2] Share Application Money |
0.000 |
0.000 |
45.650 |
|
|
3] Reserves & Surplus |
16761.870 |
13053.040 |
11799.990 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
17265.960 |
13557.130 |
12334.150 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8759.460 |
4623.880 |
2231.450 |
|
|
2] Unsecured Loans |
2570.160 |
2331.270 |
2375.060 |
|
|
TOTAL BORROWING |
11329.620 |
6955.150 |
4606.510 |
|
|
DEFERRED TAX LIABILITIES |
1974.510 |
1560.670 |
1412.000 |
|
|
|
|
|
|
|
|
TOTAL |
30570.090 |
22072.950 |
18352.660 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16102.250 |
11433.360 |
9709.960 |
|
|
Capital work-in-progress |
5360.440 |
2814.090 |
944.080 |
|
|
|
|
|
|
|
|
INVESTMENT |
5593.760 |
2974.480 |
3027.130 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5527.280
|
4170.470 |
5132.910 |
|
|
Sundry Debtors |
1375.430
|
872.840 |
1551.330 |
|
|
Cash & Bank Balances |
2588.280
|
3405.980 |
2658.530 |
|
|
Other Current Assets |
44.180
|
5.030 |
128.390 |
|
|
Loans & Advances |
2629.480
|
1952.690
|
1786.840
|
|
Total
Current Assets |
12164.650
|
10407.010
|
11258.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5810.800
|
4242.830 |
|
|
|
Other Current Liabilities |
1095.800
|
358.390
|
5658.250
|
|
|
Provisions |
1744.410
|
956.280
|
930.850
|
|
Total
Current Liabilities |
8651.010
|
5557.500
|
6589.100
|
|
|
Net Current Assets |
3513.640
|
4849.510
|
4668.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
1.510 |
2.590 |
|
|
|
|
|
|
|
|
TOTAL |
30570.090 |
22072.950 |
18352.660 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
50365.610 |
40704.410 |
36939.270 |
|
|
|
Other Income |
111.830 |
112.470 |
92.230 |
|
|
|
TOTAL (A) |
50477.440 |
40816.880 |
37031.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
42754.970 |
37190.870 |
32851.260 |
|
|
|
Increase/(Decrease) in Work in Process and
Finished Goods |
(226.760) |
265.860 |
(552.740) |
|
|
|
TOTAL (B) |
42528.210 |
37456.730 |
32298.520 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7949.230 |
3360.150 |
4732.980 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
739.460 |
668.430 |
520.410 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7209.770 |
2691.720 |
4212.570 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1227.820 |
980.070 |
878.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5981.950 |
1711.650 |
3334.470 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1832.070 |
630.470 |
1141.440 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4149.880 |
1081.180 |
2193.030 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3245.330 |
2992.010 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
1000.000 |
500.00 |
NA |
|
|
|
Debenture Redemption Reserve |
62.500 |
62.50 |
NA |
|
|
|
Proposed Dividend |
378.020 |
226.810 |
NA |
|
|
|
Dividend Tax |
62.780 |
38.55 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
5891.910 |
3245.330 |
2992.010 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3135.720 |
2483.840 |
|
|
|
|
|
2.520 |
19.430 |
|
|
|
TOTAL EARNINGS |
3138.240 |
2503.270 |
940.240 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12426.540 |
10328.930 |
7274.010 |
|
|
|
Stores & Spares |
78.200 |
107.500 |
40.180 |
|
|
|
Capital Goods |
3666.400 |
1086.110 |
204.440 |
|
|
TOTAL IMPORTS |
16171.140 |
11522.540 |
7518.630 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.23 |
2.15 |
4.66 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st Quarter) |
30.09.2010 (2nd Quarter) |
31.12.2010 (3rd Quarter) |
|
Net Sales |
11212.670 |
11756.050 |
14321.120 |
|
Total Expenditure |
10043.930 |
10541.170 |
12830.220 |
|
PBIDT (Excl OI) |
1168.740 |
1214.880 |
1490.900 |
|
Other Income |
6.560 |
57.560 |
31.040 |
|
Operating Profit |
1175.300 |
1272.440 |
1521.940 |
|
Interest |
258.900 |
361.980 |
434.440 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
916.400 |
910.460 |
1087.500 |
|
Depreciation |
341.350 |
376.710 |
367.440 |
|
Profit Before Tax |
575.050 |
533.750 |
720.060 |
|
Tax |
169.000 |
160.200 |
179.070 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
406.050 |
373.550 |
540.990 |
|
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 |
406.050 |
373.550 |
540.990 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.22
|
2.65 |
5.92
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.88
|
4.21 |
9.03
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.16
|
7.84 |
15.90
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36
|
0.13 |
0.27
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.16
|
0.92 |
0.91
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.41
|
1.87 |
1.71
|
LOCAL AGENCY FURTHER INFORMATION
LITIGATION:
|
Case Details |
Special Civil Application/6473/2008 |
|
Case Status |
Pending |
|
Pending Date |
07/09/2009 |
|
Petitoner Name |
Harmendrasingh Inderjitsingh Sehgal |
|
Respondent Name |
Apollo Tyres Limited |
|
Petitoner Advocate |
Mr. Tushar L. Sheth |
|
Respondent Advocate |
Mr. Kiran C. Raval |
HISTORY:
Subject is the tyre manufacturing company in
MARKET OVERVIEW
Highlight of the
Indian market was resurgence of a strong demand, both in the OEM and replacement
segments. In the key economic performance driven segment of commercial vehicle
tyres, demand from original equipment manufacturers picked up in the last two
quarters of the year after a relatively slow first half. Truck sales registered
a growth of .15% while passenger cars grew by 21% as compared to the previous
year.
Export volumes
witnessed a decline, primarily because of an unforeseen surge in domestic
demand and the need to service this segment, and partly because of the export
markets recovering at a relatively slower pace. The Indian tyre industry was
definitely back to operating at its full capacity in 2009-10.
Raw material
prices remained stable at a reasonably comfortable level in the first half.
This, coupled with a healthy demand, enabled the industry to achieve operating
margins upward of 12% for the first time in the last five years. However,
towards the end of the financial year, natural rubber touched an all time high
at- Rs 150/ kg. Increasing demand from
To combat the
rising cost of raw materials, some of the manufacturers were forced to
undertake price hikes, spread across the 3rd and 4th quarters. A robust demand
provided support externally, while upping internal efficiencies further
countered rising costs. While the antidumping duty imposed on truck-bus radial
tyres from
Going forward, the
inverted duty structure (imported natural rubber attracting twice the duty of a
tyre) staying the way it is, further price hikes would be needed to come to the
rescue of the industry, in the face of an even steeper rise in raw material
costs.
The European
market, Apollo's most recent domestic market after it acquired Vredestein
Banden BV in May 2009, now renamed as Apollo Vredestein BV, was plagued with
excess capacities in the 1st and 2nd quarters with a sharp drop in demand,
particularly from original equipment manufacturers. However, the second half
saw relatively better performance with an upward demand swing, especially in
the winter tyre segment due to the cold wave across
The improvement in
performance was aided largely by raw material prices remaining stable for the
better part of the year. Simultaneously, there were no price revisions
undertaken, which further contributed to a stable and secure sentiment being
built in the market. However, in the months to come, price increases seem to be
unavoidable, due to the spurt in raw material prices.
Of the three
domestic markets the South African economy was the worst affected by the
previous year's global slowdown. After trying to find its feet in the first two
quarters of the year, the final two quarters showed some signs of recovery with
a positive GDP growth.
Slowdown in demand
had forced manufacturers to limit production in the first half, but since
January 2010 all local manufacturers are producing to their full capacity;
encouraged by a strong demand for passenger car and truck tyres in both the
domestic and export markets.
Going forward, the
challenge lies in successfully overcoming the raw material price volatility.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Indian tyre
industry is dominated by five major players-Apollo Tyres, Birla, Ceat, J KTyre and
MRF-who continue to account for a substantial part of the industry's Rs. 260
billion turnover. These big five are present in all
product segments,
except for two wheelers, where only Ceat and MRF sell.
Over the year,
Birla Tyres has emerged as a significant player in the truck segment. In FY08
Birla had upped its capacity in this segment and has been steadily gaining
market share since then.
Multinationals
like Bridgestone and Goodyear Tyres though present, continue to exist as
smaller players. Bridgestone, which has till now focused solely on passenger
car radials, continues to be a market leader in this segment. Taking the import
route through Thail and
Quite unlike the
global tyre industry, which is dominated by passenger car radial sales, the
Indian tyre industry's 75% of the turnover can be accounted for by commercial
vehicle tyres. Having said that, passenger car radials retain their slot as the
fastest growing segment. Yet another point of difference between
As original
equipment manufacturers make a move towards embracing radial tyres for their
commercial vehicles, radialisation in the truck segment is slowly gaining
ground. Keeping these factors in view, radialisation levels in the commercial,
vehicle segment are expected to be anywhere between 25-30% in the next 3 years.
In anticipation of
the next big radialisation wave, most manufacturers have either installed
capacities or announced plans of doing the same, including Apollo, Birla, MRF,
Bridgestone, J K Tyre and Michelin. Similarly, considering strong demand
forecast in the passenger car segment, manufacturers across the board are
making investments to maximise capacities.
Another key factor
for the industry is imports of truck tyres from
FY10. In another
move, the Government imposed an antidumping duty on imports of truck radials
from
The European tyre
market pie is divided between five major players, namely, Bridgestone,
Continental, Goodyear, Dunlop, Michelin and Pirelli, which account for nearly
85% of the turnover. Close on the heels of the big five is Hankook with its new
facility in
Car sales once
again looked up with a jump of nearly 11% in FY10, with year end sales volumes
almost reaching their pre-slowdown March 2008 levels. Though low, offtake of
tyres by original equipment manufacturers and in the truck and agriculture
segment, meant that the industry was left with lower margins for the better
part of the financial year. The agriculture tyre segment saw a drop of 20% compared
to FY09, even as all tyre sales to the automotive manufacturers came to a near
standstill and the replacement market was hit severely by the global economic
crisis.
The European
passenger car market figures, as calculated by European Rubber Manufacturer's
Conference, show total sales of about 200 million tyres for FY10 - a marginal
increase, largely attributable to good sales in the 4th quarter due to a bull
run in winter tyre sales. Another factor aiding passenger car tyre sales was
the narrowing gap between the premium, mid and budget range, resulting in an
increased preference for premium tyres from customers.
However, it must
be remembered that the European market does not offer much scope for growth
except in certain niche segments. An annual growth in the total market size is
not a very regular feature.
Going forward, the
new European tyre legislation is likely to have a huge and lasting impact on
new product developments - introduction of labelling, covering factors like rolling
resistance, wet grip and noise, will ensure that all manufacturers work towards
inclusion of more ecofriendly products in their portfolio. All major players
are
already focusing
on going green and working on issues related to the use of environment friendly
raw materials
and various
aspects of sustainable development.
Four tyre
manufacturers-Apollo, Bridgestone Firestone, Continental and Goodyear - sell
nearly 70% of the tyres in
the country; while
the remaining 30% is imported by independent manufacturers or these four.
While Bridgestone
Firestone produces truck-bus tyres under the Firestone brand in
Since 2006 local
industry associations have been pleading for an anti-dumping legislation on
tyres made in
The Waste
SEGMENT WISE PERFORMANCE
Fy 10 was a
landmark year for Apollo Tyres' India Operations which achieved a new benchmark
by registering a sales turnover to the tune of Rs 50,3 billion, boosted by
robust demand in both commercial vehicle and passenger vehicle segments. The
company recorded a healthy growth of about 24% in overall sales value over
FY09. Category wise this translates to a growth of 16% in heavy commercial
vehicles, 26% >r> passenger car, 18% in
light commercial
vehicles in volume terms, while maintaining sales volumes in tractor rear
tyres.
There were two new
additions to the passenger vehicle bouquet - Amazer 3G and Amazer 3G Maxx - a
new range of tubeless radials in the budget segment, which is growing rapidly.
These tyres offer a host of benefits like
longer life, extra
grip and reduced rolling resistance for better fuel efficiency.
In the commercial
vehicle tyre segment, Apollo was able to maintain its market share and
leadership in the critical
truck-bus segment.
The goal is to further strengthen leadership in the cross ply segment, while
leading the radialisation of commercial vehicle tyres in
In
FY10 would
probably rank amongst one of the worst years for the South African tyre
industry. This coupled with the introduction of the National Credit Act in 2006
in
Apollo Tyres
The highest
growth, over last year, was observed in the passenger car segment which saw as
much as 10% growth in volumes whilst the total growth was around 6.3%. This
can be largely attributed to the effective after sales service provided by the
company and the change in brand perception post the rebranding of Dunlop Zones.
An astute marketing strategy also translated into cultivation of trust within
large truck-bus customers, who satisfied with the prompt and efficient after
sales service, repeated purchases.
The highest
revenue came from the passenger car tyres category, followed by the truck-bus
segment.
OUTLOOK
Across Apollo's
three domestic markets, the outlook largely looks positive.
Backed by a rising
demand, India Operations hopes to better its landmark performance of FY10. With
the Chennai facility commencing production, some supplyend concerns would
finally be laid to rest.
The biggest
challenge comes from rising raw material costs, especially natural rubber and
crude, and the inverted duty structure. Price hikes are an option, but are
definitely not a solution. Passing on high production costs may not always be
possible in a market where the largest revenue base - the commercial vehicle
segment – is neither cash-rich, nor has proper access to credit. However, with
continuous improvement in internal efficiencies and cost-competitive
production,
not affected in
the recession, while an extreme winter season actually helped sales of the
season's tyres. Going
forward, the sales
are expected to improve further.
For Europe Operations
too, fast increasing raw material prices are an area of concern and could force
tyre manufacturers to undertake a price hike. On an average, the tyre sell out
prices in
South Africa Operations
is riding on a number of initiatives which revolve around brand promotion and
product improvements in the truck-bus
category which have led to record sales, investments in manufacturing units to
expand capacities across product lines, including passenger car, light truck,
truck-bus radial tyres, exploring export destinations in other African and
South American countries.
A key change going
forward would be in the area of human resources, in compliance with local laws
of equity at the workplace. Apollo Tyres
In adherence to
the Waste Tyre Regulation, Apollo Tyres South Africa, a key contributor to the
Regulation, will be
required to submit
monthly sales data to external accountants for the purpose of determining the
monthly Green Fee charge, and recovering this cost by way of invoicing to
domestic customers. This is expected to provide a relatively permanent solution
to the tyre disposal issue.
In view of the
above, the South African Operations too appear to be on the right track with
potential for considerable growth in the years to come.
OPERATIONS
During the
financial year ended March 31, 2010, the Company has scaled new heights and set
benchmarks in terms of sales and profitability. The Net Sales of India
Operations increased from Rs 40,704 millions during the previous year to Rs
50,366 millions in the year, registering a growth of 23.7%.
Operating Profit,
before interest and depreciation, amounted to Rs 7,950 millions as against Rs
3,360 millions during the previous year. Net Profit, after providing for
interest, depreciation and tax amounted to Rs 4,150 millions as against Rs
1,081 millions during the previous year, registering an increase of 284%.
The amount
available for appropriations, including surplus from previous year amounted to
Rs 7,395 millions. Surplus of Rs 5,892 millions has been carried forward to the
Balance Sheet after providing for Dividend of Rs 378 millions, Dividend Tax of
Rs 63 millions, Debenture Redemption Reserve worth Rs 62 millions and General
Reserve of Rs 1,000 millions.
The consolidated
figures of sales from operations in India, South Africa and Europe (post the
recent acquisition of Apollo Vredestein
BV based out of the Netherlands), amounted to Rs 81,207 millions and Net
Profit, after providing for interest, depreciation and tax amounted to Rs 6,534
millions record ing a growth of63%insalesand369%in Net Profit respectively.
On a consolidated
level, the break up of revenues across the three geographies is as follows:
The Company has
recorded commendable growth during the year. Consistency across operations has
strengthened Apollo's position as a leading global tyre manufacturing
organisation headquartered in
PRODUCTION
During the year,
the Company has achieved 19.4 % growth in production tonnage by registering
production of 326,739 MT as against 273,575 MT in the previous year.
BUY BACK OF SHARES
The Board of
Directors at the meeting held on March 19, 2009 had approved buy back of equity
shares at a price not exceeding Rs 25 per share upto an amount not exceeding Rs
1220 millions, representing approximately 10% of the Company's paid up equity
share capital and free reserves as per last audited accounts.
The Company could
not buy back any shares because of the run-up in the market price of the
Company's shares immediately after the commencement of buy back beyond Rs 25
per share i.e. maximum price fixed for buy back. Therefore, the Company closed
its buy-back offer on the due date for the closure i.e. March 18, 2010.
RAW MATERIALS
Natural Rubber
continued its upward trend during the year as the prices moved from a level of
Rs 100/kg in June, 2009 to Rs 140/kg in December, 2009. It recorded a new peak
of around Rs 150/kg in March, 2010. The demand and supply gap in the
Crude oil remained
steady in the band of US$ 70-80/barrel but crude-based raw materials, like
synthetic rubber, carbon black, and nylon tyre cord fabric, remained firm due
to adverse demand-supply gap caused by plant shutdowns in highcost countries
and revival of demand from emerging economies.
The anti-dumping
duty continued on nylon tyre cord fabric and rubber chemicals while during the
year, anti-dumping duty was imposed on carbon black imported from
DOMESTIC MARKETING
The year has been
a record year for the Company with the demand increasing in both the commercial
vehicle and passenger vehicle tyre categories. India Operations achieved a new
benchmark in sales turnover at Rs 50 billion. During the year, the company
recorded a very healthy growth of 23.7% in overall sales value over the
previous year. Seen category wise this translates to a number growth of 16% in
heavy commercial vehicles, 26% in passenger car radials, 18% in light
commercial vehicles, and maintaining sales volumes in tractor rear.
The triumvirate of
their marketing strategy, namely, Product Leadership, Customer Intimacy, and
Operations Excellence, were pursued even more vigorously to create better
differentiators in the market and gain consumer preference and market share.
In the realm of
passenger vehicle tyres, the year was witness to the launch of a new range of
tubeless radials in the economy segment with the introduction of Amazer 36 and
Amazer 3G Maxx. A new advertising and communication campaign was released on
television with the central creative thought on Apollo tubeless radials The
Road is a Friend.'
Branded tyre
outlets 'Apollo Zones' are also extending their footprint across major cities
in the country and being very well received by their business partners who are
coming forward to participate under this programme. The Zones, which display
Apollo's high-performance, technology-driven tyres and alloy wheels in a
friendly and interactive fashion, are aimed at capturing the customers' share
of mind and heart. Their unique appeal lies in the visual dispaly, an in-store
experience which promises comfort, convenience and best-in-class service.
In the area of
commercial vehicles tyres, the Company was able to gain market share and
further consolidate its
leadership
position in truck-bus tyres. their priority is to maintain the dominant
leadership position in cross ply tyres, whilst leading radialisation in
Truly 2009-10 has
concluded on a resounding note for the Company and the spirit remains
unstoppable as ever.
EXPORTS
The demand outlook
in international markets saw a revival at the start of year 2009-10, from the lows
of the previous year's closing. The severe dip in all-around demand had put
considerable strain in despatches out of
Exports of
passenger car radial tyres continued to be the highest amongst the Indian tyre
producers. The exports of truck and bus tyres were better than the previous
year, though enhanced focus on exploiting surging demand in the domestic market
led to controlled despatches for exports.
On the marketing
front, efforts were made for enhancing brand Apollo, across geographies, by
conducting successful programmes like Apollo Vista,
The year also
witnessed the coming together of high-performing business partners for two
conclaves - one in
EXPANSION
PROGRAMME/FUTURE OUTLOOK
State of the art
radial facility at Chennai went on stream as per schedule. After the initial
trial production, in September 2009, regular marketable production of passenger
car radials (PCR) commenced on March 11, 2010. Whereas on successful completion
of trial production of truck-bus radials (TBR) in March 2010, their regular
marketable production commenced onMayll,2010. Further expansion of TBR and PCR
capacity is in progress to meet projected market requirements.
Cross ply and
radial farm tyre capacity augmentation was done in Perambra thereby increasing
the plant capacity by approximately 48,000 units/year in rear tractor and
34,000 units/year in front tractor on an annualised basis.
ACQUISITION OF
On May 15 2009,
the Company completed its second international acquisition of
The acquisition
has benefited the Company by providing access to the high-end passenger car
radial technology and a well-established distribution network for entry into
These integration
initiatives will favourably position the Company for growth and improved
profitability in the coming years.
SUBSIDIARY
COMPANIES
During the year ,
Apollo (
Apollo Tyres
Co-operatief U.A acquired
Apollo Tyres South
Africa (Pty.) Limited, the Company's subsidiary, has acquired Pollock and
Aitken (Pty) Limited, a Company owning property in
For operational
purposes, the Board has made certain restructuring changes in respect of the
following subsidiaries:
- The shares of
Apollo Tyres AG (
- Apollo Tyres Zrt
(
Apollo Tyres GmbH
(
FIXED ASSETS:
- Land
- Buildings
- Plant and Machinery
- Electrical Installation
- Furniture, Fixtures and Office Equipments
- Vehicles
UNAUDITED
CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs. In Millions)
|
Particulars |
31.12.2010 Quarter Ended |
31.12.2010 Nine Months Ended |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
14319.840 |
37288.560 |
|
b) Other Operating Income |
1.280 |
1.280 |
|
Total Operating Income |
14321.120 |
37289.840 |
|
|
|
|
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(1896.630) |
(3960.140) |
|
(b) Consumption of Raw Materials |
11295.840 |
28294.310 |
|
(c) Purchase of Traded Goods |
526.290 |
1119.430 |
|
(d) Employees Cost |
779.040 |
2321.850 |
|
(e) Depreciation |
367.440 |
1085.500 |
|
(f) Other Expenditure |
2125.680 |
5639.870 |
|
Total Expenditure |
13197.660 |
34500.820 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
1123.460 |
2789.020 |
|
Other Income |
31.040 |
95.160 |
|
Profit/(Loss) before Interest and Exceptional items |
1154.500 |
2884.180 |
|
Interest |
434.440 |
1055.320 |
|
Profit / (Loss) after interest before Exceptional items |
720.060 |
1828.860 |
|
Exceptional Items |
-- |
-- |
|
Profit before Tax |
720.060 |
1828.860 |
|
Tax Expenses |
179.070 |
508.270 |
|
Net Profit after tax |
540.990 |
1320.590 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.1/- each) |
504.090 |
504.090 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
|
|
|
|
Earning per share |
|
|
|
Basic EPS before and extraordinary Items |
1.07 |
2.62 |
|
Diluted EPS before and extraordinary Items |
1.07 |
2.62 |
|
Public Share
Holding |
|
|
|
Number of Shares |
303387258 |
303387255 |
|
Percentage of Shareholding |
60.19% |
60.19% |
|
Promoters and
Promoter group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
15000000 |
15000000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
7.48% |
7.48% |
|
- Percentage of shares(as a % of the total share capital of the company) |
2.98% |
2.98% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
185637512 |
185637512 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
92.52% |
92.52% |
|
- Percentage of Share (as a % of the total share capital of the company) |
36.83% |
36.83% |
WEBSITE DETAILS:
PROFILE:
Subject is a high-performance company and
the leading Indian tyre manufacturer. Head quartered in Gurgaon, a
corporate-hub in the National Capital Region of India, Apollo is a young,
ambitious and dynamic organisation, which takes pride in its unique identity.
Registered as a company in 1976, Apollo is built around the core principles of
creating stakeholder value through reliability in its products and
dependability in its relationships.
Apollo’s present strength and market dynamism steps from its early years of
strife in establishing itself as a tyre manufacturer within the closed Indian
economy. Over two decades, Apollo worked on a portfolio of products, tuned to
customer needs and an array of innovative marketing initiatives to establish
itself as a leader in its home market. Some of these include segmenting
customers by their load and mileage requirements, running tyre loyalty
programmes, establishing customer contact programmes which resulted in better
health and driving habits, introducing India’s first farm radials and India’s
first range of high-speed tubeless passenger car tyres.
For the first time, in 2006 Apollo ventured outside
In 2009, Apollo acquired Vredestein Banden B V in the
The company currently produces the entire range of automotive tyres for ultra
and high speed passenger cars, truck and bus, farm, Off-The-Road, industrial
and specialty applications like mining, retreaded tyres and retreading
material. These are produced across Apollo’s eight manufacturing locations in
In the three domestic markets of
For Subject, offering the right product to the right customer is essential.
Special efforts are made to understand customer needs and segment the market
accordingly. After which, products are developed for niche applications within
a larger category to enable the company to provide efficient, fuel and
cost-saving products to each customer segment. Innovation has always been an
integral part of the Apollo way of doing business, this applies as much to
product development and marketing as to how the company as a whole is focused
on challenging existing boundaries.
An integral part of the Subject world is its community involvement and giving
programmes directly related to its business. In
Apollo is one of the largest corporate investors in developing sporting talent
through its Mission 2018, which is focused on nurturing and training youngsters
in the sport of tennis to enable an Indian to win a Singles Grand Slam
Championship by the year 2018.
Press Release:
Apollo Tyres
fights adverse conditions
Continues revenue
growth story, profits impacted by rubber cost push
The Board of
Directors of Apollo Tyres Limited approved the company’s unaudited financial
results for the 2nd quarter and the first 6 months of the financial year
2010-11. Of particular concern to the Board is the spiraling prices of natural
rubber to current all-time highs, which have sharply impacted the Indian
Operations. The Board appreciated the efforts of the management and employees
in maintaining the overall growth trend, overcoming the difficulties of a
lock-out in one plant in
Half Yearly
Performance Highlights
FY2010-11
(April-September) vs FY2009-10
• Net sales at Rs
37.7 billion (Rs 37700 millions) from Rs 36.8 billion (Rs 36810 millions)
• Operating profit
at Rs 3.8 billion (Rs 3880 millions) from nearly Rs 5 billion (Rs 4980
millions)
• Net profit at Rs
1.2 billion (Rs 1270 millions) from Rs 2 billion (Rs 2030 millions) the
previous year
Quarterly
Performance Highlights
Quarter 2
FY2010-11 (July-September) vs Quarter 2 FY2009-10
• Net sales at Rs
19.5 billion (Rs 19490 millions) from Rs 20 billion (Rs 20460 millions)
• Operating profit
at Rs 1.86 billion (Rs 1860 millions) from nearly Rs 2.9 billion (Rs 2900
millions)
• Net profit at Rs
532 million (Rs 530 millions) from Rs 1.3 billion (Rs 1290 millions) in the
previous year
Commenting on the
results, Onkar S Kanwar, Chairman,
Apollo Tyres Limited, said, “It’s been a very difficult 6 months
managing the unprecedented rise in natural rubber prices. Unfortunately even
when international natural rubber prices were significantly lower than Indian
prices, we were unable to import in large quantities due to the duty policy of
the government. We have had no option but to pass on price increases to our
customers, though it is impossible to pass on a near 50% increase in the course
of one year. Natural rubber constitutes 60% of our raw material costs, and if I
look at the November to November period, natural rubber was at Rs 76/kg in
November 2008, Rs 113 in November 2009 (a 14% rise) and is at Rs 192 now –- an
increase of nearly 70% in a single year and 150% in 2 years! This has affected
all aspects of our operation.” Chairman
Onkar Kanwar added: “I do hope the Government will look at some
measure to check speculation, as well as bring down the unreal duty structure
we have. With no action over so many years, despite understanding the plight of
the Indian tyre industry, even an optimistic person like me is forced to
consider greater investments outside India, rather than at home.”
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.44.04 |
|
|
1 |
Rs.72.40 |
|
Euro |
1 |
Rs.63.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
73 |
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.