1. Summary Information
|
|
|
Country |
|
|
Company Name |
AUTOMOTIVE AXELS LIMITED |
Principal Name 1 |
Mr. Ashok Rao |
|
Status |
Good |
Principal Name 2 |
Dr. Babasaheb N. Kalyani |
|
|
|
Registration # |
08-4198 |
|
Street Address |
Hootagalli Industrial Area, Off |
||
|
Established Date |
21.04.1981 |
SIC Code |
-- |
|
Telephone# |
91-821-2402453/ 2402452 |
Business Style 1 |
Manufacturing, |
|
Fax # |
91-821-2402451/ 2402217 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Axle Housing |
|
|
# of employees |
2000
[Approximately] |
Product Name 2 |
Complete Axles |
|
Paid up capital |
Rs.151,120,000/- |
Product Name 3 |
Gears and Brake Assemblies |
|
Shareholders |
Promoters and Promoter Group – 71.04% Public Shareholding - 28.96% |
Banking |
State
Bank of Kotak
Mahindra Bank ICICI
Bank Limited BNP
Paribas |
|
Public Limited Corp. |
Yes |
Business Period |
30 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A [65] |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Controlling Enterprises : |
|
Meritor Heavy Vehicle System LLC |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,442,034,000 |
Current Liabilities |
650,038,000 |
|
Inventories |
902,765,000 |
Long-term Liabilities |
706,604,000 |
|
Fixed Assets |
1,328,159,000 |
Other Liabilities |
356,559,000 |
|
Deferred Assets |
0 |
Total Liabilities |
1,713,201,000 |
|
Invest& other Assets |
78,982,000 |
Retained Earnings |
0 |
|
|
|
Net Worth |
2,038,739,000 |
|
Total Assets |
3,751,940,000 |
Total Liab. & Equity |
3,751,940,000 |
|
Total Assets (Previous Year) |
2,985,060,000 |
|
|
|
P/L Statement as of |
30.09.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
6,679,950,000 |
Net Profit |
440,744,000 |
|
Sales(Previous yr) |
2,663,042,000 |
Net Profit(Prev.yr) |
96,614,000 |
MIRA
INFORM REPORT
|
Report Date : |
22.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
AUTOMOTIVE AXELS LIMITED |
|
|
|
|
Registered Office : |
Hootagalli Industrial Area, Off |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.09.2010 |
|
|
|
|
Date of Incorporation : |
21.04.1981 |
|
|
|
|
Com. Reg. No.: |
08-4198 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.151.120 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L51909KA1981PLC004198 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRA04953E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange |
|
|
|
|
Line of Business : |
Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and
Brake Assemblies |
|
|
|
|
No. of Employees
: |
2000
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 8150000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
Position of the company appears to be sound. The trade relations are reported
as 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. |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
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/ Factory: |
Hootagalli Industrial Area No. 36 Off |
|
Tel. No.: |
91-821-2402453/ 2402452/ 55/ 56
/ 240451/ 2402582/ 86 |
|
Fax No.: |
91-821-2402451/ 2402217 |
|
E-Mail : |
|
|
Website : |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Ashok Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Babasaheb N. Kalyani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. B.C. Prabhakar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Timothy Earl Joseph Bowes |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bhalchandra B. Hattarki |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash C. Bhalerao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish Sekhri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Larry Dowes |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. C. K. Sabareeshan |
|
Designation : |
Executive Director (Finance) |
KEY EXECUTIVES
|
Name : |
Mr.
S Ramkumar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
S. C. Balawat |
|
Designation : |
General Manager-Production & Maintenance |
|
|
|
|
Name : |
John Kurien |
|
Designation : |
General Manager-DMO |
|
|
|
|
Name : |
J. Venkatesan |
|
Designation : |
General Manager-Sourcing |
|
|
|
|
Name : |
S. R. S. Gopal |
|
Designation : |
Financial Controller |
|
|
|
|
Name : |
Jose K. |
|
Designation : |
Manager-Human Resource |
|
|
|
|
Name : |
Jayathirtha Rao |
|
Designation : |
Manager-Infomation Systems |
|
|
|
|
Name : |
Muthusamy E. |
|
Designation : |
Manager-Plant Engineering |
|
|
|
|
Name : |
R. Shivakumar |
|
Designation : |
Manager-Production |
|
|
|
|
Name : |
K. Prabhakar Pai |
|
Designation : |
Head of Quality Assurance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Bodies Corporate |
5367806 |
35.52 |
|
Sub Total (A)
(1) |
5367806 |
35.52 |
|
|
|
|
|
2. Foreign |
|
|
|
Bodies Corporate |
5367275 |
35.52 |
|
Sub Total (A)
(2) |
5367275 |
35.52 |
|
|
|
|
|
Total [A1 + A2] |
10735081 |
71.04 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
1473666 |
9.75 |
|
Financial Institutions / Banks |
25 |
- |
|
Foreign Institutional Investors |
24976 |
0.17 |
|
Sub Total (B)
(1) |
1498667 |
9.92 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
1558283 |
10.31 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100 million |
1008370 |
6.67 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
258593 |
1.71 |
|
|
|
|
|
Any other
[specify] |
52981 |
0.35 |
|
NRI Resident Indian |
46792 |
0.31 |
|
Clearing members |
5682 |
0.04 |
|
Trusts |
507 |
- |
|
Sub Total (B)
(2) |
2878227 |
19.05 |
|
(B) = (B) (1) +
(B) (2) |
4376894 |
28.96 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
- |
- |
|
|
15111975 |
100.00 |
|
Total (A) + (B) +(C) |
|
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and
Brake Assemblies |
|
|
|
|
Products : |
Product Item Code No. 870850 Product Description Brakes Item Code No. 870839.00 Product Description Other
parts Item Code No.
870899 Other
Products : Complete Axles,
Brake Assemblies, Axle
Housing |
PRODUCTION STATUS as on 30.09.2010
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Axle Housing |
Nos. |
202000 |
132100 |
|
Complete Axles |
Nos. |
172000 |
103123 |
|
Brake Assemblies |
Nos. |
1248000 |
886283 |
|
Gear Sets |
MT |
9552 |
3725.25 |
Note :
- (as certified
by management and relied upon by the auditors, being a technical matter)
** Brake Assemblies include sub assemblies
- Actual
production of Axle Housings includes 103,123 Nos. used for production of
Complete Axles (previous year 38,262 Nos)
- @ Includes
jobbing nil MT (previous year Nil MT)
GENERAL INFORMATION
|
Customers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
2000
[Approximately] |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ř
State Bank of Ř
Kotak Mahindra Bank Ř
State Bank of Ř
Bank of Ř
ICICI Bank Limited Ř
BNP Paribas Ř
IDBI Bank Limited Ř
Export Import Bank of Ř
HDFC Bank Limited Ř
Axis Bank Limited Ř
BNP Paribas Ř
CITI Bank N.A Ř
The Toronto Dominion Bank Ř
The |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
Deloitte Haskins and Sells (Chennai) Chartered Accountants |
|
Address : |
|
|
|
|
|
Internal Auditors : |
Price Water House Coopers Chartered Accountants |
|
Address : |
|
|
|
|
|
Controlling
Enterprises : |
|
|
|
|
|
Enterprises
under Common Control : |
|
CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23,000,000
|
Equity
Shares |
Rs.10/- each |
Rs.230.000 millions |
|
2,000,000 |
Preference Shares |
Rs.10/- each |
Rs.20.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15,111,975 |
Equity Shares fully paid up |
Rs.10/- each |
Rs.151.120
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
151.120 |
151.120 |
151.120 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1887.619 |
1596.090 |
1547.783 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2038.739 |
1747.210 |
1698.903 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
633.122 |
334.968 |
565.688 |
|
|
2] Unsecured Loans |
73.482 |
119.184 |
155.034 |
|
|
TOTAL BORROWING |
706.604 |
454.152 |
720.722 |
|
|
DEFERRED TAX LIABILITIES |
135.351 |
141.701 |
140.250 |
|
|
|
|
|
|
|
|
TOTAL |
2880.694 |
2343.063 |
2559.875 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1328.159 |
1451.153 |
1607.097 |
|
|
Capital work-in-progress |
78.982 |
71.075 |
79.614 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
902.765
|
599.661 |
875.130 |
|
|
Sundry Debtors |
1237.475
|
671.599 |
651.005 |
|
|
Cash & Bank Balances |
89.716
|
86.677 |
192.029 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
114.843
|
104.895 |
162.386 |
|
Total
Current Assets |
2344.799
|
1462.832 |
1880.550 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
592.820
|
515.694 |
|
|
|
Other Current Liabilities |
57.218
|
38.523 |
853.611 |
|
|
Provisions |
221.208
|
87.780 |
153.775 |
|
Total
Current Liabilities |
871.246
|
641.997 |
1007.386 |
|
|
Net Current Assets |
1473.553
|
820.835 |
873.164 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2880.694 |
2343.063 |
2559.875 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6679.950 |
2663.042 |
7468.481 |
|
|
|
Other Income |
40.322 |
41.709 |
59.236 |
|
|
|
TOTAL (A) |
6720.272 |
2704.751 |
7527.717 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed |
4743.006 |
1754.148 |
|
|
|
|
(Increase)/Decrease In Stock Of Finished Goods &
Work-In-Process |
[7.671] |
58.565 |
|
|
|
|
Manufacturing, Administration & Selling Expenses |
1080.556 |
533.500 |
|
|
|
|
TOTAL (B) |
5815.891 |
2346.213 |
6400.616 |
|
|
|
|
|
|
|
|
Less |
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
904.381 |
358.538 |
1127.101 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
35.552 |
46.874 |
63.859 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
868.829 |
311.664 |
1063.242 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
209.957 |
184.973 |
208.938 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
BEFORE TAX (E-F) (G) |
658.872 |
126.691 |
854.304 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
218.128 |
30.077 |
296.450 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
AFTER TAX (G-I) (J) |
440.744 |
96.614 |
557.854 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1205.665 |
1167.019 |
-- |
|
|
|
|
|
|
|
|
|
Add |
Proposed Dividend and Dividend Tax written
back |
0.570 |
0.000 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
44.100 |
9.661 |
-- |
|
|
|
Proposed Dividend |
128.451 |
41.290 |
-- |
|
|
|
Tax on Dividend |
21.334 |
7.017 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1453.094 |
1205.665 |
-- |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
61.508 |
|
|
|
|
|
Consumables & Spares |
1.990 |
1.128 |
|
|
|
|
Capital Goods |
1.710 |
40.064 |
|
|
|
TOTAL IMPORTS |
65.208 |
92.611 |
195.776 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
29.17 |
6.39 |
36.91 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
1794.640 |
2781.360 |
2739.130 |
|
Total Expenditure |
1572.350 |
2433.090 |
2396.010 |
|
PBIDT (Excl
OI) |
222.290 |
348.270 |
343.120 |
|
Other Income |
0.810 |
0.980 |
0.580 |
|
Operating
Profit |
223.100 |
349.250 |
343.700 |
|
Interest |
9.750 |
15.760 |
18.920 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
213.350 |
333.490 |
324.780 |
|
Depreciation |
52.190 |
57.840 |
62.720 |
|
Profit
Before Tax |
161.160 |
275.650 |
262.060 |
|
Tax |
63.520 |
91.650 |
84.670 |
|
Reported PAT |
97.640 |
184.000 |
177.390 |
|
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 |
97.640 |
184.000 |
177.390 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
PAT / Total Income |
(%) |
6.56
|
3.57 |
7.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.86
|
4.76 |
11.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.94
|
4.35 |
24.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.07 |
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
0.63 |
1.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.69
|
2.28 |
1.87 |
LOCAL AGENCY FURTHER INFORMATION
Review of
performance
The Gross Sales and other income for the financial year was 7323.62 Mn as
against 2,907.99 Mn for the previous financial year registering a growth of
152%. The Profit Before Tax of 658.87 Mn and the Profit After Tax of 440.74 Mn
for the financial year as against 126.69 Mn and 96.61 Mn respectively for the
financial year, improved by 420% and 356% respectively.
MANAGEMENT
DISCUSSION & ANALYSIS
Economy
The year saw the Indian economy bouncing back strongly after a sudden
and steep down turn and witnessed a strong growth in domestic consumption which
was fueled by government spending and sustained by private growth. The first
three quarters saw the economy registering a Gross Domestic Product growth rate
of 8.0% with the economy likely to pass 8.5% levels for FY11.
Agriculture growth is forecasted to improve upto 3.5% on account of
abundant rainfall in FY11. This is likely to give a boost to all industry
dependent on Agriculture. This is by and large expected to influence Commercial
Vehicle (CV) sales.
The Industry sector posted a very strong show during the said period
with a consistent growth number of above 10% through the first three quarters.
This was fueled by a healthy mix of spread across the sectors which make up the
industry sector. The growth was led by Capital goods, the index of which went
up by 53% signaling significant capacity addition and an increasing confidence
in the future prospects of the industry.
The service sector was the most consistent of the three sectors with an
average growth of 8.4% in the first three quarters.
The resilience of Indian economy and the banking system was well
demonstrated by the fast return to normalcy. The growth estimates for FY11 is
being pegged at 8.5%
The Index of Industrial Production Index (IIP index) which follows the
industry mirrored the strong show by the economy with a quarterly growth of as
high as 15.1% on account of the strong capacity addition undertaken by the
industry which was backed strongly by increased private consumption. The IIP
showed signs of moderation to a level which would be much more sustainable in
the future and is expected to settle by 10% by the end of the period.
Inflation (WPI) started rising from Oct-09 onwards due to demand and
supply side pressures. The accommodative outlook of the government and a fast
paced growth of the economy were the chief reasons behind it. The government
had to maintain a fine line between excessive inflation and facilitating
growth. The policy rates were regularly hiked to keep both variables under
check, with an YTD cumulative increase of 275 bps with another increase being
expected by the end of the year. The Inflation reached it peak June’10 and has
come under control by September’10 though it is still higher than the
government’s targets of 6%.
The INR started to appreciate with respect to the USD from September’09
onwards on account of strong show by the economy and increased inflows. The INR
reached a peak of 44.44 Rs. per Dollar in Apr’10 and was later controlled on
account of rising current account deficit and balance of payments weakness.
However the rupee continued to appreciate once again on account of very strong
capital inflows into the economy fuelled by strong show by the economy and
confidence of the foreign investor. RBI is likely to intervene and cap the
appreciation due to widening trade and current account deficit.
Outlook
In the long, the Indian economy is expected to restore to 8-9% GDP
growth and the large scale investment planned in infrastructure will result in
the CV industry witnessing healthy growth. Most of the plans by domestic and international
Original Equipment Manufacturers (OEMs) which had been put on hold due to
economic pressures have been revived.
The industry has seen a large number of players entering the market
which is dominated by two players. These two account for over 80% of the
market. The entry by so many new entrants will result in margin pressures
across the value chain and result in introduction of the latest technology in
the Indian market.
The industry also benefited from the introduction of emission norms. The
change was affected in two steps. BS-IV norms were introduced in 13 cities on
1st April 2010, while BS-II norms were introduced in rest of
The strong show was facilitated by the improved liquidity situation on
account of the accommodative and growth intensive path followed by the
government. While the policy rates have been revised upwards regularly, it has
not resulted in significant increase in the interest rates and hence the market
was less affected by the hikes.
In the short term, also, the CV market is likely to show the following
trends:
● OEMs to target niche segment and needs
● Sales to moderate after the intense activity
before the emission norm introduction
● Improved liquidity situation to tighten and
further moderate sales
● The strong infusion of capacity to
strengthen demand for trucks
● Bus sales to moderate since most of the
state transport authorities have renewed their fleets
● Export market to grow and aid sales
● Rising fiscal deficit to impact further
infusion of capital and moderating growth
● Government steps in order to curtail inflation
will moderate growth
Market has witnessed a strong comeback in high tonnage vehicles and this
can be seen by the 143% improvement in production of Multi-Axle trucks over
last year. The tractor market of above 26.4 Tonnes also witnessed an increase of
233% over last year. Existing 4x2 vehicles are being replaced by 6x2 and 8x2
vehicles for their increased load carrying capacity and the same trend is also
being recognized by new entrants with launches of more and more trucks in the
higher tonnage category. Emission norms introduction has facilitated the
introduction of better engine technology to power these heavier trucks and
better infrastructure has given the necessary support for these trucks to do
what they are being designed for.
Industry Structure
& Developments
Commercial
Vehicles’ Market :
During the year (Oct ’09 - Sep ’10), the addressed CV (Medium and Heavy
Commercial Vehicles) market recovered from a low of 159,447 units of vehicles
above 7.5T in 2009 to a healthy level of 317,387 units in 2010. This is a
significant increase of 100%. This increase is among the highest across the
world and it goes to prove that
This increase was experienced across the segment of commercial vehicles.
The M and HCV Trucks went up from 123,036 units in FY09 to 263,078 units in FY10.
The M and HCV Buses market went up from 36,421 units in FY09 to 54,309 units in
FY10, mainly due to stronger sales on account of JNNURM project. LCV market
also saw an increase with the below 3.5T market registering 55% growth. This
was largely due to the products from Tata Motors (Ace model) and similar model
from Mahindra.
Large and heavy truck sales improved significantly on account of
increased good movement, improved industry activity fueled by government and
private spending. The inflation remained high and RBI had to resort to regular
hikes in policy rates, despite these the industry posted a strong growth.
Domestic:
The economic slowdown had challenged all auto and commercial vehicle ancillaries.
The company had embarked upon a major cost-cutting drive to mitigate the impact
of the down turn and in addition, the company has initiated a number of new
product programs and also planning a new foot-prints in the northern part of
the country to maintain its leadership position within the independent axle
manufacturers present in
Furthermore, the company is looking at different market segments to
reduce its dependency on a single industry and is looking for ways to use it
core competency in areas which would be profitable, sustainable and less cyclic
in nature than the CV industry.
Exports:
The global market slowdown had impacted their exports to ArvinMeritor
plants and with the markets in Europe and
However, the company has taken this opportunity to realize new
opportunities which can be met with current products and has been successful in
adding further products to its export list and is committed to expand the
number and type of products that can be exported from
Unaudited Reviewed Financial
Results For The Quarter Ended 30.06.2011
|
Particulars |
3 Months Ended 30-06-2011 (Unaudited) |
Year
to Date Figures for Current Period 30-06-2011 (Unaudited) |
|
Net Sales /Income from
Operations |
2739.125 |
7315.123 |
|
Expenditure |
|
|
|
(increase)/Decrease in
stock in trade and Work-in-Progress |
5.766 |
[131.800] |
|
Consumption of
Raw-Materials |
1912.238 |
5323.530 |
|
Purchase of Traded Goods |
- |
- |
|
Employee Cost |
140.030 |
385.385 |
|
Depreciation |
62.724 |
172.754 |
|
Other Expenditure |
337.974 |
824.321 |
|
Total |
2458.732 |
6574.190 |
|
Profit; (Loss) from
Operations Before Interest and Exceptional Items (1 - 2) |
280.393 |
740.933 |
|
Other Income |
0.581 |
2.363 |
|
Profit / (Loss) Before
Interest and Exceptional Items (3
+ 4) |
280.974 |
743.296 |
|
Interest |
18.921 |
44.428 |
|
Profit / (Loss) After
Interest but Before Exceptional Items (5 - 6) |
262.053 |
698.868 |
|
Exceptional Items |
-- |
-- |
|
Profit / (Loss) Before
Tax (7 - 8) |
262.053 |
698.868 |
|
Tax Expense |
84.667 |
239.844 |
|
Net Profit / (Loss) from
Ordinary Activities After Tax {9-10) |
177.386 |
459.024 |
|
Extraordinary Items (Net
of Tax Expense Rs.) |
-- |
-- |
|
Net Profit / (Loss) for
the Period (11 -12) |
177.386 |
459.024 |
|
Paid-up Equity Share
Capital (Face Value Rs.10) |
151.120 |
151.120 |
|
Reserves Excluding
Revaluation Reserves (As per Balance Sheet of Previous Accounting Year) |
-- |
-- |
|
Earnings Per Share (EPS)
) |
|
|
|
Basic and Diluted EPS
Before Extraordinary Items for the Period, for the Year to Date and for the
Previous Year (Not to be Annualised) |
11.74 |
30.37 |
|
Basic and Diluted EPS After
Extraordinary Items for the Period, for the Year to Date and for the Previous
Year (Not to be Annualised) |
11.74 |
30.37 |
|
Public Shareholding |
|
|
|
Number of Shares |
4376894 |
4376894 |
|
Percentage of
Shareholding |
28.96% |
28.96% |
|
Promoters and Promoter Group Shareholding |
|
|
|
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) |
-- |
-- |
|
i) Non-encumbered |
|
|
|
Number of Shares |
10735081 |
10735081 |
|
Percentage of Shares (As
a % of the Total Shareholding of Promoter and Promoter Group) |
100% |
100% |
|
Percentage of Shares [As
a % of the Total |
71.04% |
71.04% |
·
The
above results were reviewed By the Audit committee, taken on record
by the board of directors of the company at their meeting held on 27.07.2011
- The Company has purchased brake manufacturing
business in Jan 2011. The total sales includes Rs.451.974 millions and Rs.971.788 millions related to brake business for the quarter
June'11 and year to date respectively. Hence, is not comparable with
earlier period sales.
- During the quarterly no investor complaint was
received. There were
no investor complaints pending for redressal at the commencement and end of
the quarter.
- Previous year / period's figures are re-grouped / re-stated wherever
necessary to make them comparable with those of the current period.
Segment wise revenue, results
and capital employed under clause 41 of the listing agreement for the quarter
ended 30.06.2011
Rs. In millions
|
Particulars |
3 Months Ended 30-06-2011 (Unaudited) |
Year
to Date Figures for Current Period 30-06-2011 (Unaudited) |
|
Segment Revenue |
|
|
|
Net Domestic Sales Sales for Export* |
2570.565 168.560 |
6947.522 367.601 |
|
Total |
2739.125 |
7315.123 |
|
Less : Inter Segment Revenue |
-- |
-- |
|
Net Sales /Income from Operations |
2739.125 |
7315.123 |
|
Segment
Results (Profit / (Loss) Before
Tax and Interst from Each
Segment) |
|
|
|
Domestic For Export* |
301.201 15.068 |
807.098 35.514 |
|
Total |
316.269 |
842.612 |
|
Less : i) Interest ii)Other Un-allocable
Expenditure Net off Un-allocable Income |
18.921 35.295 |
44.428 99.317 |
|
Total Profit / (Loss) Before Tax |
262.053 |
698.867 |
|
Capital Employed |
|
|
|
Segment Assets Domestic |
3252.859 |
3252.859 |
|
For Export |
129.169 |
129.169 |
|
Common Assets Total Assets (a+b) Less : Total Common
Liabilities |
1698.329 5080.357 2582.593 |
1698.329 5080.357 2582.593 |
|
Capital Employed |
2497.764 |
2497.764 |
1 *Sales for Export are channelised through
Meritor HVS (
2 Previous year and year to date figures have
been re-grouped wherever necessary.
FIXED ASSETS:-
- Land-Freehold
- Building
- Plant and Machinery
- Furniture and Office
- Equipment
- Vehicles
- Own Vehicles
- Assets held for disposal
WEBSITE DETAILS:
Established in 1981, Subject is a joint venture of Kalyani
Group and Arvin Meritor Inc.,
Subject has a Quality Management System that is certified to ISO/TS 16949:2002
standard and also Environmental Management System that is certified to ISO
14001:2004 standard.
HISTORY:
1981 - Foundation Stone laid
1981 - Incorporation and commencement of business
1982 - First Annual General meeting of Members
1983 - First Public Issue of equity shares
1984 - Commercial production of Rear Axle Housing
1986 - Commercial production of Brake Assembly
1988 - Commercial production of Axle Assembly for LCV
manufacturers
1991 - Entered Export market by exporting prototypes to
MB-Germany
1995 - Rights issue in the ratio of 1:4
1996 - Sales cross Rs.1 billion
1998 - Quality Management System certified to ISO 9001
2000 - Quality System certified to QS 9000
2003 - Sales cross Rs.2 Billion
2005 - Quality System certified to TS16949
2005 - Sales cross Rs.3.5 Billion
2005 - Foundation Stone laid for 'Kalyani Nagar' colony of
Employees
2006 - Environment Management System Certified to IS14001
2006 - Silver Jubilee year - Sales Cross Rs.4.5 Billion
DEFINING
MOMENTS
REFERENCE TO BIFR IN 1989
The company brought in Rockwell's state-of-the-art
manufacturing technology to
Business Description
Automotive Axles Limited (AAL) is an independent manufacturer of rear
drive axle assemblies in
Press Release
Automotive Axles Ltd. Recommended Dividend; Appoints Auditors
Mar 03, 2011
Automotive Axles Ltd. announced that the Board has recommended a dividend of
INR8.50 per share for the year ended September 30, 2010 , be paid to the
members of the Company, whose name appear in the register of members/beneficial
owners list as on January 19, 2011,be and is hereby approved. The Company also
announced that it has appointed M/S. Deloitte Haskins and Sells (Chennai),
Chartered Accountants, Bangalore , be and are hereby appointed as Auditors of
the Company, to hold office from conclusion of this meeting until conclusion of
the next Annual General Meeting and that the Board of Directors, be and is
hereby authorised to fix their remuneration for the period.
Press Release
Automotive Axles to launch new two-speed model MS 13 240 in
Datamonitor AutomotiveWire
13 April 2011
[What follows is the full text of the news story.]
Automotive Axles, Ltd., or AAL, a joint venture of Kalyani Group and
Meritor Inc., has announced that it will launch its first green axle, the new
two-speed model MS 13 240.
The axle is ideal for a wide range of commercial vehicles including 4X2
dump applications as well as 4X2, 6X2 and 8X2 haulage vehicles. The MS 13 240
series will enter full production in mid-2011.
AAL's new two-speed axle is customized for local operating conditions,
while using proven technology developed for Meritor axle applications in
various regions of the world - providing AAL customers with global quality at a
local price. According to Raghunathan Sundararajan, vice president, Meritor
India, "The MS 13 240 axle not only provides increased fuel efficiency, it
also improves turnaround time."
The MS 13 240 is approximately 6-8 percent more fuel efficient than a
conventional axle configuration and offers traction-on-demand allowing the
driver to effectively manage difficult gradients. The multiple ratio design
facilitates fast track road infrastructure and hill climbing. The axle is
available in nine ratio sets ranging from 4.10/5.59 to 7.17/9.77.
Press Release
FUTURE AUTOMOBILE DESIGNS
SHOULD FOCUS ON CHEAP FUELS: ASHOK RAO
Star of
08 April 2011
[What follows is the full text of the news story.]
He was presenting a lecture on the topic 'Current trends and scope in
Automobile Engineering' as part of 'Crusades,' the annual fest of Mechanical
Engineering department of Vidya Vardhaka College of Engineering (VVCE) this
morning.
The function was also attended by the Dr. B. Sadashive Gowda, Principal
of VVCE and G. B. Krishnappa, HoD of Mechanical Engineering Dept., faculty and
students.
?LPG, electrical systems, solar and hydrogen systems are replacing the
costly petrol fuel. The vehicles in future should be designed to work on
economic fuels. Likewise designing of complex software should be avoided,? he
said, adding that the effect of technology on environment should also be kept
in mind.
?Positive attitude, discipline and constant learning are expected from
engineers,? he said.
He cited the example of road works to delineate the scope of automobile
engineering in future. ?We see that most of the difficult works like
earth-moving are done by equipments, not people. The demand for these
equipments like tippers, trucks and the like are shooting up. Every month
5000-6000 tippers are produced in the country,? he stated.
"The services we are provided for mobile phones in
In the interactive session that followed, to a student?s worry that
NASSCOM has stated in media that 70 percent of the engineers are unfit to work,
he reciprocated with a question, ?Do you want the sugar-coated truth or the
plain truth?? He acknowledged the statement made by NASSCOM.
?Ultimately knowledge is useless unless something comes out of it,? he
said and urged the students to keep inquisitiveness although their lives.
Published by HT Syndication with permission from Star of Mysore.
Press Release
BIKE RIDER KILLED AFTER
HITTING ZIG-ZAG BARRICADE
Star of
22 March 2011
[What follows is the full text of the news story.]
Mysore, March 22 -- A bike rider was killed on the spot when the bike he
was riding hit zig-zag barricades erected on Mysore-Hunsur road near Belavadi
last evening.
Shivanna (49), a resident of Doddahuyilalu village and 'D' group
employee of Automotive Axles factory, is the unfortunate victim.
The mishap occurred when Shivanna riding his Hero Honda (KA 09/EN 8119)
motorcycle from Belavadi side towards
The local residents gathered in large numbers at the spot and resorted
to a protest following the accident. The villagers of Doddahuliyalu too joined
the protest, leading to tension for some time.
The protestors, blaming the Traffic Police for the accident, shouted
slogans against them. They also blocked traffic movement on Mysore-Hunsur road
for nearly an hour, demanding the Police to pay compensation to the victim's
family.
As repeated pleas went in vain, the Police resorted to mild lathi charge
to disperse the crowd, following which the irate crowd pelted stones at the
Police. However, the Police were successful in bringing the situation under
control in a short time.
Meanwhile, the body of the deceased Shivanna was shifted to the
A KSRP platoon has been deployed at the spot as a precautionary measure.
Published by HT Syndication with permission from Star of Mysore.
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.45.61 |
|
|
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.