BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
SUNDRAM FASTENERS LIMITED |
Principal Name 1 |
MR. SURESH KRISHNA |
|
Status |
GOOD |
Principal Name 2 |
MS. ARATHI KRISHNA |
|
|
|
Registration # |
18-004943 |
|
Street Address |
98-A, DR.
RADHAKRISHNAN SALAI, 7TH FLOOR, MYLAPORE, CHENNAI – 600 004,
TAMILNADU |
||
|
Established Date |
10.12.1962 |
SIC Code |
-- |
|
Telephone# |
91-44-28478500 |
Business Style 1 |
MANUFACTURER |
|
Fax # |
91-44-28478510 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
FASTENERS |
|
|
# of employees |
-- |
Product Name 2 |
COLD EXTRUDED AND POWDER METAL PARTS |
|
Paid up capital |
Rs.210,128,370/- |
Product Name 3 |
|
|
Shareholders |
PROMOTER AND PROMOTER GROUP-49.53% PUBLIC SHAREHOLDING-50.47% |
Banking |
UNITED BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
48 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (58) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
ASSOCIATES |
|
TVS INFOTECH LIMITED |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
3,842,432,000
|
Current Liabilities |
1,820,345,000
|
|
Inventories |
2,095,264,000
|
Long-term Liabilities |
5,679,087,000 |
|
Fixed Assets |
5,601,393,000 |
Other Liabilities |
858,463,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
8,357,895,000 |
|
Invest& other Assets |
1,620,351,000 |
Retained Earnings |
4,591,417,000 |
|
|
|
Net Worth |
4,801,545,000 |
|
Total Assets |
13,159,440,000 |
Total Liab. & Equity |
13,159,440,000 |
|
Total Assets (Previous Year) |
12,933,150,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
13,338,606,000 |
Net Profit |
754,285,000 |
|
Sales(Previous yr) |
12,621,944,000 |
Net Profit(Prev.yr) |
154,850,000 |
MIRA
INFORM REPORT
|
Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
SUNDRAM FASTENERS LIMITED |
|
|
|
|
Registered Office : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600 004, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
10.12.1962 |
|
|
|
|
Com. Reg. No.: |
18-004943 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L35999TN1962PLC004943 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00555C / CHES17415G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACS8779D / AAACS8779D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company shares are listed on
stock exchange. |
|
|
|
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
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 19210000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Directors are reported to be experienced an 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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Corporate
Headquarters : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600 004, |
|
Tel. No.: |
91-44-28478500 |
|
Fax No.: |
91-44-28478510 / 28478508 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory (In |
Padi, Chennai-600050, Ghengleput District, |
|
Tel No.: |
91-44-26258460 |
|
Fad No.: |
91-44-26357052 |
|
E mail: |
|
|
|
|
|
Factory (In |
Krishnapuram, Aviyur-626160, Virudhunagar District, |
|
|
|
|
Factory (In |
Mittamandagapet
Village-605106, Villupuram District, Tamilnadu, India |
|
|
|
|
Factory (In |
47/2, |
|
Tel No.: |
91-44-26272231/ 55512231 |
|
Fad No.: |
91-44-26272696 |
|
E mail: |
|
|
|
|
|
Factory (In |
SIPCOT Industrial Complex, Gummidipoondi-601021, |
|
|
|
|
Factory (In |
Auto Ancillary SEZ, |
|
|
|
|
Factories (In |
Tamilnadu: Harita, Hosur-635109, |
|
Tel No.: |
91-4344-276651 |
|
Fad No.: |
91-4344-276082 |
|
E mail: |
|
|
|
|
|
Factory (In |
Puducherry Korkadu, Nettapakkam Commune, Bahur Taluk, Puducherry-605110 |
|
|
|
|
Factory (In |
Andhra Pradesh Bonthapally Village-502313, Medak District |
|
|
|
|
Factory (In |
Uttarakhand Patnagar,
Itegrated Industrial Estate, Rudrapur, District Udam Singh Nagar,
Uttarakhand-263153 |
|
|
|
|
Factories (Outside |
Sundaram Fasteners ( |
|
|
|
|
Factories (Outside |
Cramlington Precision Forge Limited, |
|
|
|
|
Factories (Outside |
Sundram RBI Sdn, |
|
|
|
|
Factories (Outside |
Peiner Umformetechnik |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Suresh Krishna |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Ms. Arathi Krishna |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Ms. Arundathi Krishna |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. K Ramesh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Venu Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V Narayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R Ramakrishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C V Karthik Narayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M Raghupathy |
|
Designation : |
Director (Retired) |
KEY EXECUTIVES
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
104,085,280 |
49.53 |
|
|
104,085,280 |
49.53 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
104,085,280 |
49.53 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
19,648,077 |
9.35 |
|
|
8,138,829 |
3.87 |
|
|
10,956,901 |
5.21 |
|
|
973,963 |
0.46 |
|
|
39,717,770 |
18.90 |
|
|
|
|
|
|
3,343,512 |
1.59 |
|
|
|
|
|
|
51,969,612 |
24.73 |
|
|
10,773,626 |
5.13 |
|
|
238,570 |
0.11 |
|
|
98,974 |
0.05 |
|
|
4,150 |
- |
|
|
200 |
- |
|
|
135,246 |
0.06 |
|
|
66,325,320 |
31.56 |
|
Total Public
shareholding (B) |
106,043,090 |
50.47 |
|
Total (A)+(B) |
210,128,370 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
210,128,370 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
||||||||||||||
|
|
|
||||||||||||||
|
Product: |
v
Fasteners v
Radiator Caps v
Powder Metal Parts v
Cold Extruded Parts v
Hot Forged Parts v
Pumps and Assemblies
|
PRODUCTION STATUS
As on 31.03.2010
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
High tensile fasteners |
|
MT |
65985 |
48279 |
|
Automotive and other miscellaneous cold formed/extruded parts/Precision
formed gears |
|
MT |
4600 |
4090 |
|
Powder metal parts |
|
MT |
8317 |
4879 |
|
Iron powder |
|
MT |
8000 |
934 |
|
Radiator caps |
|
Nos. |
100 |
71 |
|
Gear shifters |
|
Nos |
50 |
39 |
|
|
|
Nos |
50000 |
27948 |
|
Hot and warm forged parts |
|
MT |
60000 |
717 |
|
Shafts |
|
Nos |
1350000 |
635667 |
|
Hubs |
|
Nos |
1350000 |
641861 |
|
Pump Assemblies (Water /Oil/Fuel Pumps) |
|
Nos |
-- |
4840155 |
GENERAL INFORMATION
|
Bankers : |
Ř
United Bank of Ř
State Bank of Ř
Standard Chartered Bank Ř
HDFC Bank Limited Ř
ICICI Bank Limited Ř
Canara Bank |
||||||||||||||||
|
|
|
||||||||||||||||
|
Facilities: |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Sundaram and Srinivasan Chartered Accountant |
|
Address : |
New No. 4 (Old No. 23), |
|
|
|
|
Associates : |
v TVS
Infotech Limited, Chennai v
TVS Infotech Inc., |
|
|
|
|
Subsidiaries : |
v
Sundram Fasteners Investments Limited, Chennai v
Cramlington Precision Forge Limited, v Sundram RBI Sdn. Bhd., Kuala Lumpur, Malaysia v
Upasana Engineering Limited, Chennai v
Sundram Fasteners ( v
Sundram Non-Conventional Energy Systems Limited,
Chennai v
Sundram Bleistahl Limited, Chennai v
Sundram International Inc., v
Peiner Logistick GmbH, v
Peiner Umformtechnik GmbH, v
PUT Grundstücks GmbH, |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210128370 |
Equity Shares |
Re.1/- each |
Rs.210.128
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 |
210.128 |
210.128 |
210.128 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4591.417 |
4062.134 |
4010.984 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4801.545 |
4272.262 |
4221.112 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3693.885 |
4611.949 |
3371.093 |
|
|
2] Unsecured Loans |
1985.202 |
2061.844 |
2179.648 |
|
|
TOTAL BORROWING |
5679.087 |
6673.793 |
5550.741 |
|
|
DEFERRED TAX LIABILITIES |
813.670 |
747.047 |
691.487 |
|
|
|
|
|
|
|
|
TOTAL |
11294.302 |
11693.102 |
10463.340 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5601.393 |
5418.913 |
4858.958 |
|
|
Capital work-in-progress |
196.408 |
260.848 |
335.421 |
|
|
|
|
|
|
|
|
INVESTMENT |
1423.943 |
1424.530 |
1332.464 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2095.264
|
2214.908
|
2092.942
|
|
|
Sundry Debtors |
2603.674
|
2349.345
|
2602.776
|
|
|
Cash & Bank Balances |
50.323
|
107.772
|
201.858
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1188.435
|
1156.834
|
696.326
|
|
Total
Current Assets |
5937.696
|
5828.859
|
5593.902
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1668.539
|
|
1620.694
|
|
|
Other Current Liabilities |
151.806
|
198.624
|
|
|
|
Provisions |
44.793
|
40.090
|
36.711
|
|
Total
Current Liabilities |
1865.138
|
1240.048
|
1657.405
|
|
|
Net Current Assets |
4072.558
|
4588.811
|
3936.497
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11294.302 |
11693.102 |
10463.340 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13338.606 |
12621.944 |
12059.231 |
|
|
|
Other Income |
27.403 |
34.410 |
18.360 |
|
|
|
TOTAL (A) |
13366.009 |
12656.354 |
12077.591 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials, Components consumed,
work-in-process and finished goods |
6247.475 |
6013.885 |
5316.028 |
|
|
|
Salaries and Wages, Stores consumed and
other expenses |
5415.260 |
5004.639 |
5255.791 |
|
|
|
TOTAL (B) |
11662.735 |
11018.524 |
10571.819 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1703.274 |
1637.830 |
1505.772 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
149.963 |
991.988 |
138.731 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1553.311 |
645.842 |
1367.041 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
474.840 |
422.328 |
342.314 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1078.471 |
223.514 |
1024.727 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
324.186 |
68.664 |
350.934 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
754.285 |
154.850 |
673.793 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
264.638 |
230.982 |
-- |
|
|
|
|
|
|
|
|
|
|
Income
Tax (Paid)/ Refund relating to earlier years |
[4.152] |
19.220 |
-- |
|
|
|
Transfer
from Investments Allowance Reserve (utilized) Account |
-- |
2.506 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
84.051 |
-- |
-- |
|
|
|
Tax on Interim Dividend |
14.285 |
-- |
-- |
|
|
|
Interim Dividend Payable |
105.064 |
105.064 |
-- |
|
|
|
Tax on Interim Dividend Payable |
17.450 |
17.856 |
-- |
|
|
|
Transfer to General Reserve |
500.000 |
20.000 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
293.921 |
264.638 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
3321.529 |
4291.253 |
3419.189 |
|
|
|
Claims Received |
0.260 |
2.989 |
23.888 |
|
|
|
Other |
10.513 |
4.900 |
0.000 |
|
|
TOTAL EARNINGS |
3332.302 |
4299.142 |
3443.077 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1403.799 |
2341.673 |
1877.888 |
|
|
|
Components & Spares Parts |
486.758 |
521.472 |
592.505 |
|
|
|
Capital Goods |
92.944 |
344.194 |
489.262 |
|
|
|
Tools Steel, Tools, Gauges etc |
92.250 |
84.207 |
111.461 |
|
|
|
Others |
12.855 |
4.574 |
6.154 |
|
|
TOTAL IMPORTS |
2088.606 |
3296.12 |
3077.27 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.57 |
0.83 |
3.21 |
|
|
|
Diluted |
3.57 |
0.83 |
3.31 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
30.12.2010 3rd
Quarter |
|
Net Sales |
4060.100 |
4652.600 |
4654.900 |
|
Total Expenditure |
3557.900 |
4065.400 |
4109.300 |
|
PBIDT |
502.200 |
587.200 |
545.600 |
|
Other Income |
0.300 |
37.700 |
2.300 |
|
Operating Profit |
502.500 |
624.900 |
547.900 |
|
Interest |
47.900 |
53.700 |
56.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
454.600 |
571.200 |
491.400 |
|
Depreciation |
132.700 |
135.100 |
138.900 |
|
Profit Before Tax |
321.900 |
436.100 |
352.50 |
|
Tax |
96.400 |
127.500 |
72.40 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
225.500 |
308.600 |
280.10 |
|
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 |
225.500 |
308.600 |
280.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.64
|
1.22
|
5.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.09
|
1.77
|
8.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.35
|
1.99
|
9.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.05
|
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.57
|
1.85
|
1.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.18
|
4.70
|
3.37 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, a TVS Group company is one of the leading auto component
manufacturers in
SALES AND PROFITS
The Company recorded total Net Sales and other income of Rs.13366.000
Millions for the year ended March 31, 2010 as against Rs.12656.300 Millions
achieved during the previous year. The export sale was at Rs.3321.500 Millions
as against Rs.4291.300 Millions in the previous year. The Profit after tax was
higher at Rs.750.100 Millions as against Rs.174.100 Millions in the previous
year.
The Company continues to be a net foreign exchange earner for the
thirteenth year in succession.
DIVIDEND
The Directors have decided to pay as Second Interim Dividend of Rs.0.50
per Share of face value of Re.1 each, which together with the Interim Dividend
of Rs.0.40 declared and paid earlier would amount to a total dividend for the
year of Rs.0.90 per share of Re 1 each. Dividend disbursed amounted to Rs.
84.051 Millions. Second Interim Dividend will absorb a total amount of
Rs.105.064 Millions. The Directors do not recommend any final dividend.
MANAGEMENT
DISCUSSION AND ANALYSIS
Business Overview
Indian Gross Domestic Product and the Index of Industrial Production
registered a growth of 7.2% (6.7%) and 10.4% (2.4%) respectively, inching their
way back from the global economic shock, thanks to the strong fundamentals of
Indian economy.
The global economic slowdown during 2008-09 impacted the performance of
the automotive sector with sales falling to levels not seen since early 1990s,
consumer sentiments touched an all time low and accessibility to finance was a
major constraint.
During 2009-10, the global slowdown eased. The emerging economics grew
at a faster pace; however the growth in the developed economies has been
minimal or static despite massive governmental intervention. In
The domestic market maintained steady improvement over the year and grew
significantly in the second half. Sales of cars, utility vehicles, MPVs, LCVs
and two-wheelers grew throughout the year thanks to the stimulus offered by the
Government in the form of excise duty cuts. The tractor segment enjoyed a
higher growth rate supported by farm mechanization and subsidized interest
rates. The MandHCV segment remained sluggish in the first half of the year.
During the second half, all segments of automotive industry gained momentum as
the stimulus offered by the Government had the lag effect on the entire
industry. Higher disposable incomes, strong internal demand, lower interest
rates on account of improved liquidity, accelerated depreciation scheme and
increased outlay on infrastructure helped to improve and sustain the demand.
There was a minimal improvement in the sales of passenger cars during
2009 in the
combined with low levels of consumer confidence, sales of passenger cars
may remain flat during 2010.
Domestic Sales
In spite of increased competition in the aftermarket segment, the Company
was able to improve its share and enjoy a growth over 2008-09 levels. Due to
the significant recovery of the automobile sector and robust demand in the
domestic market, especially from the second quarter of the financial year, the
Company’s domestic sales grew from Rs 8330.000 Millions to Rs 10020.000
Millions, an increase of 20%.
Exports
The US and European markets faced an unprecedented decline in the volume
of production due to the global economic crisis. Due to this, the Company’s
exports were lower at Rs 3320.000 Millions as against Rs 4290.000 Millions in
the previous year, a decline of 22%. The decline would have been steeper but
for the increased sales of hubs and shafts and powder metal products from the
Company’s SEZ and EOU factories. Volatility in exchange rates, combined with
the continuing slump in demand from European customers, is bound to have a
negative impact on the exports for the current year as well. The Company is
planning to add new products and new customers to mitigate the decline in
demand due to the sudden downturn in the market.
Financial
Performance
Improved market share in the domestic segment, sharp decline in interest
rates in the domestic and international
markets and stringent cost control measures helped the Company achieve
better performance. The performance
of the Company was supported by the continuous efforts on reduction in
working capital and reduced spending
on capital expenditure.
The Company continued to be under pressure due to rising manufacturing
costs. Non-availability of power led to the Company purchasing power and
resorting to self generation at higher costs. This was further compounded by an
increase in freight rates and appreciation of the Rupee in the second half of
the year. The Company incurred additional expenses on wages arising out of
long-term wage settlements in respect of Puducherry and Hosur factories, and
roll back of pay-cuts effected to management staff during the previous year.
This further dented the margins.
The Company is consistent in adopting the Total Productive Maintenance
(TPM) practices in order to achieve a reasonable control over other operating
expenses, thereby enhancing its cost competitiveness.
During the year, PBIDT (Profit before interest, foreign exchange
fluctuation, depreciation and tax) was higher at Rs 1703.300 Millions as
against Rs 1637.800 Millions in the previous year. Interest charges were lower
at Rs 254.800 Millions against Rs 385.000 Millions in the previous year.
Depreciation was higher at Rs 474.800 Millions (Rs 422.300 Millions) on account
of increased capital expenditure incurred over the recent years.
Foreign exchange fluctuation resulted in a gain of Rs 104.900 Millions,
as against a loss of Rs 607.000 Millions in the previous year. In line with the
Accounting Standard AS-11 (dealing with the effects of change in foreign
exchange rates) and to ensure the principles of consistency, the Company
recognizes the exchange differences arising out foreign currency denominated
items as income or expense in the profit and loss statements.
Profit before tax was higher at Rs 1078.500 Millions (Rs 223.500
Millions). Profit after tax amounted to Rs 750.100 Millions (Rs 174.100
Millions). Considering the slow start at the beginning of the year, the Company
has been able to post healthy profits.
Subsidiaries
The subsidiaries showed a mixed performance. Subsidiaries engaged in
servicing the requirements of emerging markets have performed better than in
the previous year. Subsidiaries catering to developed markets have performed
poorly because of adverse market conditions. Sales and other income of
subsidiaries declined to Rs 4153.600 Millions from Rs 5761.500 Millions. The
subsidiaries made a cash loss of Rs 97.300 Millions as against cash profit of
Rs 380.400 Millions during the previous financial year. Net Loss amount to Rs
277.900 Millions as against net profit of Rs 186.200 Millions in the earlier
year.
Subsidiaries
Sundram Fasteners
(
Sundram Fasteners (
Steel prices increased sharply during the year. SFZL could not pass on
the cost increases to its customers. Strengthening of RMB vis-ŕ-vis other
currencies affected the profitability of exports. Global and Chinese economic
slowdown affected the performance of SFZL during the first half of 2009. During
2010, market conditions have shown a marked improvement. Barring unforeseen
conditions, SFZL will post sizable net profits in the coming years.
SFZL has retained certifications according to ISO / TS16949-2002 and ISO
9000-2000.
The Company has so far invested USD 13 million (Rs 568.760 Millions) in
the Equity capital. SFZL has entered into a new business venture with
Caterpillar and has thereby increased its market share. SFZL has also received
an award from Haiyan Government for maintaining Best labour relationship.
Peiner
Umformtechnik GmbH
Peiner Umformtechnik GmbH (Peiner),
Sales and other income during the year 2009 amounted to Euro 42.730
million (Rs 2882.591 Millions) as against Euro 63.977 million (Rs 4123.962
Millions) during 2008. The company incurred a loss before depreciation and
taxes of Euro 2.562 million (Rs 1710.074 Millions) as against profit of Euro
4.089 million (Rs 285.756 Millions) during 2008. Loss before taxes amounts to
Euro 3.651 million (Rs 244.047 Millions) during 2009 as against profit of Euro
3.046 million (Rs 214.726 Millions) during 2008.
Uncertain economic conditions prevailing in
Cramlington
Precision Forge Limited
Cramlington Precision Forge Limited (CPFL)
The Company has invested GBP 1.9 million (Rs 152.314 Millions) in CPFL.
Sales and other income during the year 2009 amounted to GBP 3.225 million
(Rs 244.225 Millions) as against GBP 6.922 million (Rs 555.902 Millions) during
2008. CPFL made a cash loss of GBP 0.202 million (Rs 15.155 Millions) during
2009 as against cash profit of GBP 0.252 million (Rs 19.114 Millions) during
2008. Net loss after providing for depreciation and taxes amounted to GBP 0.332
million (Rs 24.954 Millions) as against a loss of GBP 0.073 million (Rs 4.033
Millions) during 2008. Exceptional costs amounting GBP 122,000 was incurred
following a consolidation of senior personnel which also contributed to the
losses.
The collapse of the European truck market which began in November 2008,
has resulted in a 54% decline in turnover compared to 2008. However the
company’s turnover generated from new business products is expected
to increase throughout 2010. The Company has shown a remarkable
turn-around during 2010 and will post decent profits.
Upasana
Engineering Limited
Upasana Engineering Limited (UEL), a 100% subsidiary is engaged in the
manufacture of spokes and nipples, dies and tools, automotive components and
cold extruded components. During the year, Sales and other income increased to
Rs 398.933 Millions from Rs 328.600 Millions in the previous year, an increase
of 24%. Domestic Sales increased to Rs 352.717 Millions from Rs 253.826
Millions in the previous year. Export Sales declined to Rs 44.893 Millions from
Rs 67.915 Millions due to global slowdown especially in the developed
economies. The operations resulted in a cash profit of Rs 18.846 Millions as
against Rs 7.906 Millions in the previous year. The Company took advantage of
the increased sales by substantial reduction in the loss after depreciation to
Rs 1.553 Millions as against Rs 11.426 Millions in the previous year.
The Company’s facility at Hosur for manufacture of cold extruded
components caters to the needs of OEM customers in
Barring unforeseen circumstances, the Company will show substantial
improvement in sales during 2010. The Company is continuing its efforts towards
increasing its market share in the domestic market.
Sundram Bleistahl
Limited
Sundram Bleistahl Limited (SBL) is engaged in manufacture of sintered
valve guides at its 100% export oriented unit at Hosur, Tamilnadu. Bleistahl
Produktions GmbH and Company KG holds 24% of the equity capital. SBL caters to
the needs of Bleistahl Productions GmbH and Company KG in
The Company has invested Rs 53.200 Millions towards 76% of the Equity
capital of the subsidiary.
Awards
The Company received several awards and recognitions for its
achievements.
• Winner of “Supplier of the Year 2009” award from General Motors
Corporation, USA for lean manufacturing, high productivity and high quality for
manufacturing and supply of critical transmission parts namely output carrier
shafts and reverse clutch hubs, with the Company being the only Indian Company
out of the seventy-six suppliers to win the coveted award out of a supplier
base of over twenty thousand.
• “Best Supplier” award from New
Holland Fiat (
• “Excellence in Quality” award from Tata Motors Limited,
• “Best Supplier award” from Rane (
• “Maximum value to the Customer” award from Bosch Limited,
• “Enduring Relationship Award” from WABCO TVS Limited, Chennai
• All
• “Best Performance in Product Development” Award from Mahindra and
Mahindra Limited,
CONTINGENT
LIABILITIES
(Rs.
in millions)
|
Particulars |
31.03.2010 |
|
On letters of guarantee |
106.028 |
|
On letters of credit |
332.880 |
|
On guarantee issued to housing development finance corporation on behalf of employees |
1.343 |
|
Bills discounted |
563.726 |
|
On partly paid shares of the Adar property holding company limited |
0.001 |
|
The company has given guarantees to fulfill various obligations of cramlington precision forge limited, UK, a wholly owned subsidiary of the company and Sundaram Fasteners (Zhejiang) Limited, China the amount of which is to the extent of non-fulfilment of obligations of the subsidiaries. |
0.254 |
|
Estimated contingent liability for stamp duty in respect of leased lano at Uttarkhand |
0.362 |
UNAUDITED FINANCIAL RESULTS (STANDALONE)
FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER 2010
(Rs.
in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
|
31.12.2010 |
31.09.2010 |
|
|
Unaudited |
Unaudited |
|
1 a. Sales |
|
|
|
- Domestic |
3708.200 |
10783.500 |
|
Less: Excise Duty |
344.500 |
1000.800 |
|
Sub
Total |
3363.700 |
9782.700 |
|
- Exports |
1285.600 |
3571.100 |
|
Total Net Sales |
4649.300 |
13353.800 |
|
b. Other Operating Income |
5.600 |
12.000 |
|
Total Income (a+ b) |
4654.900 |
13365.800 |
|
2. Expenditure |
|
|
|
Increase)/Decrease in stock in trade and work in progress |
(95.900) |
(286.200) |
|
Consumption of Materials |
2260.500 |
6605.000 |
|
Employee Cost |
413.400 |
1176.000 |
|
Stores and Tools Consumed |
542.500 |
1470.700 |
|
Depreciation and Amortisation |
138.900 |
406.700 |
|
Other Expenses |
959.000 |
2671.900 |
|
Total |
4218.400 |
12044.100 |
|
Profit/(Loss) from Operations before Other Income, Interest and
Exceptional Items |
436.500 |
1321.700 |
|
Other Income |
2.300 |
4.900 |
|
Profit/(Loss) before Interest and Exceptional Items |
438.800 |
1326.600 |
|
Interest |
56.500 |
158.100 |
|
Foreign exchange (Gain)/ Loss on loans |
29.800 |
58.000 |
|
Profit/(Loss) from Ordinary Activities before Tax |
352.500 |
1110.500 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit/(Loss) from Ordinary Activities before Tax |
352.500 |
111.0500 |
|
Tax expense |
72.400 |
296.300 |
|
Net Profit/ (Loss) from Ordinary Activities after Tax |
280.100 |
814.200 |
|
Paid - up Equity Share Capital (Face value of Rs. 1/- each) |
210.100 |
210.100 |
|
Earnings Per Share (Rs.) |
|
|
|
(Basic and Diluted not annualised) |
|
|
|
- Before Extraordinary Items |
1.33 |
3.87 |
|
- After Extraordinary Items |
1.33 |
3.87 |
|
Public
shareholding |
|
|
|
-Number of shares |
106,043,090 |
106,043,090 |
|
- Percentage of shareholding |
50.47 |
50.47 |
|
Promoters and Promoter
Group Share holding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of shares (as a % of the total shareholding
of promoter and promoter group) |
-- |
-- |
|
Percentage of shares (as a % of the total share capital of
the company) |
-- |
-- |
|
b) Non -
Encumbered |
|
|
|
- Number of Shares |
104,085,280 |
104,085,280 |
|
Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
100.00 |
100.00 |
|
Percentage of shares (as a % of the total share capital of
the company) |
49.53 |
49.53 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
30.09.2010 Unaudited |
|
Liabilities |
|
|
1. Share Holders Funds |
|
|
a) Share Capital |
210.100 |
|
b) Reserve and Surplus |
5125.600 |
|
2. Loan Funds |
6902.300 |
|
3. Deferred Tax Liability (Net) |
846.800 |
|
|
|
|
Total |
13084.800 |
|
Assets |
|
|
1. N et Fixed Assets – including capital work in progress |
6141.300 |
|
2. Investments |
1423.700 |
|
3.Current Assets, Loans and Advances |
|
|
a) Inventories |
2642.700 |
|
b) Sundry Debtors |
3679.700 |
|
c) Cash and Bank Balances |
39.300 |
|
d) Loans and Advances |
1319.200 |
|
4. Less Current Liabilities and Provisions |
|
|
a) Liabilities |
2111.700 |
|
b) Provisions |
49.400 |
|
Total |
13084.800 |
Note:
1. The above financial results were reviewed by the audit committee and thereafter approved by the Board Directors at its meeting held on February 11, 2011. As required under clause 41 of the listing agreement, Limited review of the above mentioned results has been completed by the auditors and the report of the same ha been placed before the board.
2. The company operated in only one segments.
3. The company had received two investor complaints during the current quarter and the same were resolved. There was no investor complaint outstanding at the beginning or end of the quarter.
FIXED ASSETS
v
Cost of Assets
v
Depreciation/Amortization
v
Capital Work-in-Progress
WEBSITE DETAILS:
Profile
Subject is a part of the US $5 billion TVS Group, headquartered
in
The product range consists of high-tensile fasteners, powder metal components,
cold extruded parts, hot forged components, radiator caps, automotive pumps,
gear shifters, gears and couplings, hubs and shafts, tappets and iron powder.
Over the years, the Company has acquired cutting-edge technological
competencies in forging, metal forming, close-tolerance machining, heat
treatment, surface finishing and assembly.
Manufacturing locations are supported by engineering and design personnel working on new product design and development. Understanding the global nature of business and the need to provide quality products on “just in time” basis to customers, the company has established supply chain logistics networks spanning several continents.
At subject growth is a natural outcome of total adherence to three core operating principles: customer orientation, total quality and ethical business practices.
Awards:
Subject has received awards for quality, delivery and general
excellence from many of its customers and industry associations over the years.
Some recent examples of the awards that they have been honoured with:
Fasteners Division
Ř
ACMA Export Award/Trophy for
1996, 1998, 1999, 2003, 2004 and 2005.
Ř
Engineering Export Promotion Council
(Government of
Ř
Supplier Delight 2005 Award from Holset.
Ř
Best Performer Award from Cummins
Ř
Overall Commendation Award from Maruti Udyog
Limited for 2005.
Autolec Division (Pumps and Assemblies)
Ř
Excellent Performance Award from Cummins
Ř
Overall Performance Award from Tata Cummins for
2006.
Ř
Best Development Award from Holset for 2004.
Ř
Government of India- Special Economic Zone-Best
Exporter Award for 2005.
Radiator Caps Division
Ř Supplier of the Year Award from General Motors for 5 consecutive years - from 1996 to 2000.
Ř Saturn Supplier Quality Award for 2003 and 2004.
Ř Valeo PQA Award for 2004.
Metal Forms Division
Ř Vendor Performance Award from Maruti Udyog Limited for 1996.
Ř Import Substitution Award from Lucas-TVS for 2001.
Ř Excellence in Performance Award from MICO (Bosch) for 2001 and 2003
Ř In Recognition of Support Award from Tecumseh for 2004.
Ř Appreciation Award from Hyundai for 2006.
Ř ACMA Bronze Trophy for Excellence in Technology for 2006.
PRESS RELEASE:
Sundram Fasteners is recorded domestic sales of Rs. 7308.6 millions for the nine months ended December 31, 2009 as against Rs. 6845.1 millions during the same period in the previous year. Export sales for the period was Rs 2427.1 millions (Rs 3537.7 millions), in view of the continuing recessionary trends in global automotive industry.
The total sales and other income for the period was Rs 9750.4 millions (Rs 10397.0 millions).
Gross Profit before interest, depreciation and provision for taxation was Rs 1332.6 millions during the period (Rs 1469.3 millions). The margins were under pressure due to increase in cost of raw materials, manufacturing inputs and additional usage of captive power. Operating expenses were at Rs 8417.8 millions (Rs 8927.7 millions).
Interest charges was Rs 209.1 millions (Rs 299.6 millions). Exchange fluctuations on foreign currency loans resulted in a gain of Rs. 74.2 millions as against a loss of Rs. 505.3 millions.
Depreciation for the period was Rs. 363.3 millions ( Rs. 318.7 millions). The provision for tax was Rs. 260.9 millions ( Rs. 119.0 millions).
The net profit after tax was Rs 573.5 millions (Rs 226.6 millions). Earning per share on face value of Re 1 per share for the period amounted to Rs 2.73 (Rs 1.08).
The Directors have declared an Interim Dividend of Re. 0.40
per share (face value Re 1 each). The interim dividend will absorb a total
amount of Rs. 84.1 millions.
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.44.33 |
|
|
1 |
Rs.74.14 |
|
Euro |
1 |
Rs.65.78 |
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 |
NO |
|
--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%)
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.