1. Summary Information
|
Country |
|
||
|
Company Name |
TVS
SRICHAKRA LIMITED |
Principal Name 1 |
Mr. S. Narayanan |
|
Status |
Good |
Principal Name 2 |
Mr. R. Naresh |
|
Registration # |
18-009414 |
||
|
Street Address |
TVS
Building, 7-B, |
||
|
Established Date |
02.06.1982 |
SIC Code |
-- |
|
Telephone# |
91-452-2420461/ 462/ 464/ 465 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-452-2420266 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
New Pneumatic
Tyres of rubber |
|
|
# of employees |
-- |
Product Name 2 |
Inner Tubes of
rubber |
|
Paid up capital |
Rs.
76,570,500/- |
Product Name 3 |
Phenolic Moulded
Products |
|
Shareholders |
Promoter Group -
44.03% Public
shareholding - 55.97% |
Banking |
State
Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
29 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (58) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries
: |
-- |
TVS Cherry Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,599,273,000 |
Current Liabilities |
1,655,965,000 |
|
Inventories |
1,554,359,000 |
Long-term Liabilities |
1,744,553,000 |
|
Fixed Assets |
1,121,406,000 |
Other Liabilities |
74,742,000 |
|
Deferred Assets |
0 |
Total Liabilities |
3,475,260,000 |
|
Invest& other Assets |
58,512,000 |
Retained Earnings |
781,720,000 |
|
|
|
Net Worth |
858,290,000 |
|
Total Assets |
4,333,550,000 |
Total Liab. & Equity |
4,333,550,000 |
|
Total Assets (Previous Year) |
2,861,061,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
7,007,054,000 |
Net Profit |
298,180,000 |
|
Sales(Previous yr) |
5,763,507,000 |
Net Profit(Prev.yr) |
90,071,000 |
MIRA INFORM REPORT
|
Report Date : |
20.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
TVS SRICHAKRA LIMITED |
|
|
|
|
Registered Office : |
TVS Building, 7-B, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
02.06.1982 |
|
|
|
|
Com. Reg. No.: |
18-009414 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L25111TN1982PLC009414 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MRIS00086C |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
Manufacturing of Two and Three Wheeler Tyres. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 3400000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are 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 condition. |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
TVS Building, 7-B, |
|
Tel. No.: |
91-452-2420461/
462/ 464/ 465 |
|
Fax No.: |
91-452-2420266 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative
Office : |
10,
Jawahar Road, Madurai-625002 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
|
|
|
|
|
Factory 2 : |
|
|
|
|
|
Factory 3 : |
Plot No. 7,
Sector 1, Integrated Industrial Estate, Sidcul, PantNagar-263153, Rudrapur,
Tehsil-Kichha, District Udham Singh Nagar, |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. S. Narayanan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. R. Naresh |
|
Designation : |
Executive Vice Chairman |
|
|
|
|
Name : |
Ms. Shobhana Ramachandhran |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. S. Viraraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. H.
Atthreya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. V.
Raghavan (Till 25.09.2009) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sitaram Rao
Valluri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.
Vijayaraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.
Ravichandran (Till 25.09.2009) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.
Chinnadurai (Till 25.09.2009) |
|
Designation : |
Director |
|
|
|
|
Name : |
H. Janardana Iyer |
|
Designation : |
Director |
KEY EXECUTIVES
|
Audit
Committee : Shareholders/Investors
Committee |
Mr. M. S. Viraraghavan Chairman Mr. N. H.
Atthreya Mr. Sitaram Rao
Valluri Mr. S. Narayanan Chairman Mr. Shobhana
Ramachandran Mr. P.
Vijayaraghavan |
|
|
|
|
Name : |
Mr. L.R.
Subramanian |
|
Designation : |
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 |
|
|
|
|
|
|
|
|
377,091 |
4.92 |
|
|
2,994,544 |
39.11 |
|
|
3,371,635 |
44.03 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,371,635 |
44.03 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
650 |
0.01 |
|
|
5,580 |
0.07 |
|
|
94 |
- |
|
|
15,639 |
0.20 |
|
|
21,963 |
0.29 |
|
|
|
|
|
|
679,219 |
8.87 |
|
|
|
|
|
|
2,742,318 |
35.81 |
|
|
837,173 |
10.93 |
|
|
4,742 |
0.06 |
|
|
952 |
0.01 |
|
|
3,790 |
0.05 |
|
|
4,263,452 |
55.68 |
|
Total Public shareholding (B) |
4,285,415 |
55.97 |
|
Total (A)+(B) |
7,657,050 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
7,657,050 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Two and Three Wheeler Tyres. |
||||||||
|
|
|
||||||||
|
Products : |
· Mopeds · Scooter · Light Motor Cycle · Motor Cycle · 3 Wheeler · Light Commercial Vehicle · Tractor Front · Tractor Trailer · Jeep · Racing · Industrial Pneumatic · Implement · Skid Steer · Multi Purpose · Mining · Antique |
PRODUCTION STATUS (As on 31.03.2010):-
|
Particulars |
|
Unit |
Licensed Capacity |
Installed Capacity |
|
Automotive Tyres |
|
Nos.(000) |
33000 |
32153 |
|
Automotive Tubes |
|
Nos.(000) |
33000 |
30050 |
GENERAL INFORMATION
|
Bankers : |
Ř State
Bank of Ř HDFC Bank
Limited |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sundaram and
Srinivasan Chartered
Accountants |
|
Address : |
New No. 250, |
|
|
|
|
Group Company : |
o TVS Motor Company
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Share |
Rs.10/- Each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7657050 |
Equity Share |
Rs.10/- Each |
Rs. 76.570
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 |
76.570 |
76.570 |
76.570 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
781.720 |
573.123 |
514.801 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
858.290 |
649.693 |
591.371 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1743.623 |
1570.855 |
1582.624 |
|
|
2] Unsecured Loans |
0.930 |
1.314 |
2.867 |
|
|
TOTAL BORROWING |
1744.553 |
1572.169 |
1585.491 |
|
|
DEFERRED TAX LIABILITIES |
74.742 |
74.203 |
73.703 |
|
|
|
|
|
|
|
|
TOTAL |
2677.585 |
2296.065 |
2250.565 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1121.406 |
715.272 |
628.121 |
|
|
Capital work-in-progress |
32.408 |
7.657 |
10.224 |
|
|
|
|
|
|
|
|
INVESTMENT |
26.104 |
12.450 |
12.450 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1554.359
|
653.930
|
934.999 |
|
|
Sundry Debtors |
1189.360
|
1065.866
|
845.363 |
|
|
Cash & Bank Balances |
85.835
|
132.601
|
42.349 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
324.078
|
273.285
|
365.091 |
|
Total
Current Assets |
3153.632
|
2125.682
|
2187.802 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1627.813
|
502.158
|
|
|
|
Other Current Liabilities |
7.343
|
3.683
|
547.618 |
|
|
Provisions |
20.809
|
59.155
|
40.414 |
|
Total
Current Liabilities |
1655.965
|
564.996
|
588.032 |
|
|
Net Current Assets |
1497.667
|
1560.686
|
1599.770 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2677.585 |
2296.065 |
2250.565 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7007.054 |
5763.507 |
4581.370 |
|
|
|
Other Income |
56.849 |
14.309 |
44.130 |
|
|
|
TOTAL (A) |
7063.903 |
5777.816 |
4625.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
4174.310 |
3961.061 |
3074.676 |
|
|
|
Purchase of traded goods |
5.302 |
6.351 |
7.393 |
|
|
|
Other Expenses |
2040.369 |
1457.702 |
1242.422 |
|
|
|
Increase and Decrease in Stock |
136.182 |
(63.543) |
(37.819) |
|
|
|
TOTAL (B) |
6356.163 |
5361.571 |
4286.672 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
707.740 |
416.245 |
338.828 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
156.132 |
185.908 |
110.908 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
551.608 |
230.337 |
227.920 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
117.889 |
98.766 |
90.863 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
433.719 |
131.571 |
137.057 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
135.539 |
41.500 |
43.839 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
298.180 |
90.071 |
93.218 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX
RELATING TO PRIOR YEARS |
0.000 |
(0.394) |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
447.650 |
398.828 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
30.000 |
9.500 |
NA |
|
|
|
Proposed Dividend |
0.000 |
26.800 |
|
|
|
|
Interim Dividend Paid |
76.570 |
0.000 |
|
|
|
|
Tax on Interim Divided |
13.013 |
0.000 |
|
|
|
|
Tax on Distribution of Dividend |
0.000 |
4.555 |
|
|
|
BALANCE CARRIED
TO THE B/S |
626.247 |
447.650 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
945.325 |
957.853 |
|
|
|
TOTAL EARNINGS |
945.325 |
957.853 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1019.794 |
1098.574 |
1042.184 |
|
|
|
Stores & Spares |
0.758 |
9.240 |
5.292 |
|
|
|
Capital Goods |
96.178 |
32.884 |
7.500 |
|
|
TOTAL IMPORTS |
1116.730 |
1140.698 |
1054.976 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
38.94 |
11.76 |
12.17 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1ST
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2271.990 |
2714.340 |
2890.160 |
|
Total Expenditure |
2063.100 |
2473.080 |
2640.280 |
|
PBIDT (Excl OI) |
208.890 |
241.260 |
249.880 |
|
Operating Profit |
208.890 |
241.260 |
249.880 |
|
Interest |
59.620 |
58.340 |
63.990 |
|
PBDT |
149.280 |
182.920 |
185.890 |
|
Depreciation |
45.240 |
39.930 |
48.170 |
|
Profit Before Tax |
104.040 |
142.990 |
137.720 |
|
Tax |
30.000 |
42.500 |
38.500 |
|
Profit After Tax |
74.040 |
100.490 |
99.220 |
|
Net Profit |
74.040 |
100.490 |
99.220 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.22
|
1.56
|
2.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.19
|
2.28
|
2.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.15
|
4.63
|
4.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.20
|
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.96
|
3.29
|
3.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.90
|
3.76
|
3.72 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is a part of TVS Group, the largest auto ancilary
group with a turnover of 1.6 billion dollars. Incorporated in Jun.'82,
Srichakra Tyres (STL) was promoted by R Naresh, T V Sundram Iyengar and Sons
and Sundaram Industries. Renamed as TVS Srichakra Tyres Limited on Oct, 1997.
The company manufactures tyres, tubes, Flaps, rubberised textile fabric and it
is one of the largest manufacturers of Industrial Pneumatic Tyres, Farm and
Implement Tyres, Skid Steer Tyres, Multipurpose and Vintage Tyres.
In Sep.'94, the company came out with a rights issue to meet the cost of
expanding the installed capacity from 1.500 Millions to 2.400 Millions
tyres/tubes and to meet the long-term working capital requirements, at a
project cost of Rs 36.000 Millions. Some of the major clients of STL are Hero
Honda, Bajaj Auto, TVS Suzuki, etc. The company has a joint venture with DuPont
and Cherry.
STL exports to the
Nitya Sarvamangala Trading and Holding Limited and TVS Srichakra Holdings
Limited are its subsidiaries. The company launched a new premium range of moped
tyre, under the name "MEGA STAR" during the year 1999-2000.
In 2000-01 company has expanded its plant capacity of the
tyre division from 5.3 millions nos to 5.5 millions nos of tyres per annum. The
company has also invested Rs.31.700 Millions for this expansion and modernization.
It is developing new tyres for the export market. During 2002-03 the 2
subsidiary companies viz Nitya Sarvamangala Trading and Holding Limited and
Subject Holdings Limited was amalgamated with the company with prior approval
from the board as well as from the Hon'ble High Court of Chennai. It has also
increased the tyre capacity and tube capacity to 7.362 millions and 6.552
millions respectively. The above expansion as well as modernization of its
plant was done at a outlay of Rs.52.500 Millions. The company has invested in
modeling software, machine center and in other related infrastructure for
developing proven products, in the least possible development cycle time.
The Company is accredited with ISO 9001 and ISO 14001 and won TPM Excellence
award and practicing Six Sigma and Lean Manufacturing Techniques.
OPERATIONS:
The Company has
recorded a Net Sales of Rs. 7010.000 Crores for the year under review
registering a growth of 22% over last year, which has resulted mainly from
domestic market. Overseas sales, though it was affected due to recessionary
trends, could maintain its sales at the last year's level. The impressive
growth in profit has resulted due to cost cutting measures undertaken by the
Company.
MARKETS
Domestic
The two and three
wheeler industry had a healthy growth of over 20% during the year 2009 - 2010.
With this growth, the two wheeler vehicle production has crossed the 100 lakh
land mark during the year. This buoyancy in vehicle production helped the
Company to close the year with the healthy growth in volume in Original
Equipment segment. The intensive brand building exercise and greater focus on
strengthening the quality of the network helped the Company to achieve higher
growth in the After Market segment.
The Company is
poised for further growth in brand image and sales volume in the coming years
based on the strong foundation laid in the last few years. The Company had the
distinction of developing better technology driven products in the OE and After
Market segment and this augurs well for achieving higher growth levels in the
coming years.
Overseas
Significant
contribution has come from the new products in the Tractor segment
developed by the Company in the last two years, which have been well
accepted by the overseas market.
PROSPECTS FOR THE
CURRENT YEAR
It is expected by
the Company that the Government would increase expenditure in infrastructure
and other sectors in the coming years. The Government spending, coupled with
better industrial climate and increased purchasing power, would also give
further impetus to growth. Wide fluctuations in the prices of natural rubber,
petroleum products and other duties can be anticipated in the coming years. The
Company is geared to handle the situation by concentrating on improving operating
efficiencies and implementing all round cost reduction measures to ensure that
the cost push does not impact the Company's profitability.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure
and Development
Automobile industry
continues to be the growth engine for the general economy of the Country and
the
In the Domestic
front compared to the previous year they did see a phenomenal shift in higher demand
due to the Two and Three Wheeler vehicle production growth of around 25% during
the year 2009-10 over 2008-09. This coupled with the GDP growth of 7% and
General Industrial Production growth at 8.6% (3.6% last year) helped in better
performance during the year 2009-10. However, the International Market is yet
to bounce back after the severe global recession and hence the Company could
not achieved its plans in full as far as Export business is concerned.
During the year
steep fall and then followed by gradual and then steep increase of major raw
material prices definitely had an impact in the overall business. During the
year they experienced power shortage to the extent of 30% for several months
(in the second half of the year) which resulted in the Company having got to
grapple with the issue of sourcing alternate power resulting in increase of
cost of production.
Discussion and
Analysis
Market:
Original Equipment Manufacturers:
Company registered
a growth in volume and value, however the volume growth was lesser than the
industry growth. This happened due to the demand far exceeding the original
plans of the vehicle manufacturers, especially during the first half of the
year. During the year, the Company had several opportunities to making inroad with
some of the new OEs due to the overall shortage in availability of Two and
Three wheeler tyres. The Company could cash-in on some of the opportunities
only.
After Market
The Company strengthened
its base in the After Market scenario by registering a planned growth in terms
of volume of tyres and tubes during the year. The focus continues to be on
Semi-Urban and Rural Markets. The Company launched massive Brand Building
Exercise campaign through TV Commercials apart from greater thrust on Below The
Line activities during the year 2009-10.
Export
The year 2010-11
will have mixed fortunes in Export front. Though it will be better than
2009-10, it will not reach the peak enjoyed in the year 2008-09. One positive
sign is that since the trade stocks have come down during the recession period,
there will be a buying spree in the next two quarters. In view of this, current
scenario seems optimistic and with there concentration in two wheeler business,
the Company should definitely exceed last year performance by exporting more
two wheeler tyres to Africa and
Manufacturing
The Company
continued its initiatives in sustaining the manufacturing excellence, derived
through TPM recognitions by working on increased productivity, lean and
flexible manufacturing systems, and empowered work teams for workmen and
targeting continuous cost compression. The Company won the “Green Aspirer”
Award from Frost and Sullivan - Green India and an award for Excellence in
Supply Chain Management given based on the data base provided by Centre for
Monitoring of Indian Economy (CMIE).
Outlook
Two wheeler
Industry recorded a growth of around 25% in the year 2009-10, and the Company
recorded higher growth than the average industry growth. Market indications are
that this year, 2010-11, will see a growth of around 15%. The Company will
continue to focus on retaining the respective Share of Business with the major
OEs, focus on increase in the volume of business from the new OEs. Continued
thrust on innovation in New Product Development should help us aim for higher
growth during the year. After Market continues to throw open greater
opportunities in this year also and the Company will give specific focus in
improving the brand image through planned Above The Line and Below The Line
activities. The Company will continue its focus on improving the quality of the
Dealer Network and more effective Logistic Management should help us to aim at
increased market share during this year.
Fixed Assets:
- Land Freehold
and Leasehold
- Buildings
- Plant and
Machinery
- Electrical
Installation
- Furniture and
Fixtures
- Vehicles
- Intangible
Assets
Contingent
Liabilities not provided for:
|
Particular |
As
on 31.03.2010 (Rs. In Millions) |
|
Estimated amount of contracts remaining to be executed on capital
account |
88.553 |
|
On guarantees executed by company’s Bankers |
4081.95 |
|
Excise Duty under dispute |
19.589 |
|
Sales tax under dispute |
0.608 |
|
Customs duty on goods lying at bonded warehouse |
37.987 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Quarter ended 31.12.2010 (Unaudited) |
Year to date figures for the current period ended 31.12.2010 |
|
a) Net Sales / Income from Operations |
2870.279 |
7828.283 |
|
b) Other Operating Income |
19.881 |
48.210 |
|
Total |
2890.160 |
7876.493 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(229.328) |
(190.997) |
|
(b) Consumption of Raw Materials |
2102.496 |
5129.765 |
|
(c) Purchase of Traded Goods |
-- |
-- |
|
(d) Employees Cost |
196.122 |
553.307 |
|
(e) Depreciation |
48.169 |
133.338 |
|
(f) Other Expenditure |
570.991 |
1684.384 |
|
Total Expenditure |
2688.450 |
7309.797 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
201.710 |
566.696 |
|
Other Income |
-- |
-- |
|
Profit/(Loss) before Interest and Exceptional items |
201.710 |
566.696 |
|
Interest |
63.991 |
181.950 |
|
Profit / (Loss) after interest before Exceptional items |
137.719 |
384.746 |
|
Exceptional Items |
-- |
-- |
|
Profit / (Loss) From
Ordinary activities before Tax |
137.719 |
384.746 |
|
- Tax |
38.500 |
111.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
99.219 |
273.746 |
|
Extraordinary Items |
-- |
-- |
|
Net Profit/(Loss) for the period |
99.219 |
273.746 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
76.570 |
76.570 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Earnings per Share
( EPS) (a) Basic and Diluted EPS before Extraordinary Items for the period, for the year to date and for the previous year (Not to be annualised) |
12.96 |
35.75 |
|
(b) Basic and Diluted EPS after Extraordinary Items for the period, for the year to date and for the previous year (Not to be annualised) |
12.96 |
35.75 |
|
Public Share
Holding |
|
|
|
- Number of Shares |
4293857 |
4293857 |
|
- Percentage of shareholding |
56% |
56% |
|
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) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
3363193 |
3363193 |
|
- 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) |
44% |
44% |
Note:
- Presently,
the Company operates only in one segment.
- Status
of Investor Grievances for the quarter ended 31.12.2010: No. of Complaints
pending as at 01.10.2010 - Nil; Received during the quarter - Nil; Disposed during the quarter - Nil; Lying
unresolved as at 31.12.2010 – Nil
- The
above Unaudited Financial Results were reviewed by the Audit Committee, approved
by the Board of Directors on 09.02.2011 and a limited review of the same
has been carried out by the Statutory Auditors of the Company.
- The
company has a wholly owned subsidiary. Since there are no transactions
during the period, the accounts of the subsidiary has not been consolidated.
- Figures
for the corresponding previous period have been recast / regrouped,
wherever necessary, to make them comparable.
AS PER WEBSITE
DETAILS
PROFILE:
Subject is one of the leading two and three wheeler tyre manufacturer
in
Incorporated in 1982, the company manufactures a complete range of Two and
Three wheeler Tyres and Tubes for the domestic market and Industrial Pneumatic
tyres, Farm and Implements Tyres, Skid steer tyres, Multipurpose tyres,
Floatation tyres etc. for the export market, at its state-of-art manufacturing
facility at Madurai in Tamil Nadu. Spread over an area of 2.5 lakhs sq. mts,
the manufacturing unit at
TVS Tyres is one of the major suppliers to all leading original equipment manufacturers
namely TVS Motors, Hero Honda, Bajaj Auto and Yamaha Motors and has a strong
network of over 2050 dealers and 23 depots across the country to cater to the
after market. The company is a global player, exporting to
Accredited on 1996 with ISO 9001 certifications, TVS Tyres adopted strong
quality standards from its inception and these benchmarks were further
strengthened with the certification of ISO 14001, ISO 9001-2000 and TS 16949.
The company has other practices like Six Sigma and Lean Manufacturing
Techniques in place to abide by their high quality standards. TVS Tyres was
also the winner of the prestigious TPM Excellence Award in 2003 and TPM
Consistency Award in 2005.
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.44.68 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.53 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
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%)
ATING 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.