MIRA
INFORM REPORT
|
Report Date : |
09.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
VST TILLERS TRACTORS LIMITED |
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|
|
|
Registered
Office : |
Plot No.1, Dyavasandra Industrial Layout, Post Box No.4801, Whitefield
Road, Mahadevapura Post, Bangalore - 560 048, Karnataka |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
18.12.1967 |
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Com. Reg. No.: |
08-001706 |
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Capital Investment
/ Paid-up Capital : |
Rs.86.395
millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L34101KA1967PLC001706 |
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|
|
Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacture and
or deal with Tractor, Tillers, Diesel Engines, Harvesters, Reapers, Binders,
Transplanters/ planters, Trench Cutters, Front end Loaders and all kinds of
allied agricultural, plantation and horticultural machinery including
attachments, components, accessories, spares implements and other equipments. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 6561000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. The company is doing well.
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 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Corporate Office/ Factory 1 : |
Plot No.1, Dyavasandra Industrial Layout, Post Box No.4801, Whitefield
Road, Mahadevapura Post, Bangalore - 560 048, Karnataka, India |
|
Tel. No.: |
91-80-28510805 / 06/ 07 |
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Fax No.: |
91-80-28510221 |
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E-Mail : |
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Website : |
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Factory 2 : |
Plot No. 39, Phase 1, SPICOT Industrial Complex, Mookandapalli, Hosur
- 635 126, |
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Factory 3 : |
Precision Component Division, Plot No.42/43, Survey No.20, Metagalli
Industrial Area, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. V.K. Surendra |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. V.P. Mahendra |
|
Designation : |
Managing Director |
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|
Name : |
Mr. B.C.S. Iyengar |
|
Designation : |
Executive Director |
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|
Name : |
Mr. V.V. Pravindra |
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Designation : |
Deputy Managing Director |
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|
Name : |
Mr. A. Hishikawa |
|
Designation : |
Director |
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|
Name : |
Mr. R. Subramanian |
|
Designation : |
Director |
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|
Name : |
Mr. M.K. Bannerjee |
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Designation : |
Director |
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Date of Birth/
Age : |
16.08.1946 |
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Qualification : |
MBA |
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Expertise in specific functional Areas |
Operations Management and Software Development |
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Date of Appointment : |
12.06.1990 |
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|
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|
Name : |
Mr. V. Ramachandran |
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Designation : |
Director |
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|
Name : |
Mr. K.K. Rai |
|
Designation : |
Director |
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Date of Birth/ Age : |
04.06.1944 |
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Qualification : |
B.A., CAIIB |
|
Expertise in specific functional Areas |
Has over four
decades of experience in Banking and Finance. He held top level positions in
Vijaya Bank and Allahabad Bank both public sector Banks. He retired as the Executive
Director of Allahabad Bank. Currently he is on the Board of four other listed
and one non listed companies as Independent Director. |
|
Date of Appointment : |
26.05.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Subash B.K. |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,639,776 |
42.13 |
|
|
764,663 |
8.85 |
|
|
4,404,439 |
50.98 |
|
|
|
|
|
|
253,125 |
2.93 |
|
|
253,125 |
2.93 |
|
Total shareholding of Promoter and Promoter Group (A) |
4,657,564 |
53.91 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
388,334 |
4.49 |
|
|
4,538 |
0.05 |
|
|
225 |
- |
|
|
336,944 |
3.90 |
|
|
730,041 |
8.45 |
|
|
|
|
|
|
517,097 |
5.99 |
|
|
|
|
|
|
2,039,668 |
23.61 |
|
|
635,560 |
7.36 |
|
|
59,598 |
0.69 |
|
|
49,307 |
0.57 |
|
|
9,091 |
0.11 |
|
|
1,200 |
0.01 |
|
|
3,251,923 |
37.64 |
|
Total Public shareholding (B) |
3,981,964 |
46.09 |
|
Total (A)+(B) |
8,639,528 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
8,639,528 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacture and or
deal with Tractor, Tillers, Diesel Engines, Harvesters, Reapers, Binders,
Transplanters/ planters, Trench Cutters, Front end Loaders and all kinds of
allied agricultural, plantation and horticultural machinery including
attachments, components, accessories, spares implements and other equipments. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
(Figures in
Numbers)
|
Particulars |
Installed
Capacity |
|
Power Tillers and Tractors |
30,000 |
|
Diesel Engines |
33,000 |
|
Precision Components |
216,000 |
|
|
|
(Figures in
Numbers)
|
Particulars |
Production |
|
Power Tillers |
22,706 |
|
Tractors |
4,602 |
|
Diesel Engines |
27,637 |
|
Precision Components |
208,140 |
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|
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v
Canara Bank v
State Bank of |
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Facilities : |
Notes: Working Capital
loans sanctioned by Commercial Banks are secured by way of first charge on
hypothecation of inventories, bills receivable and other current assets and a
second charge on all fixed assets of the company, ranking pari passu basis
with other members of the consortium.
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
10/2, |
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Cost Auditors : |
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|
Name : |
Rao, Murthy and Associates Chartered Accountants |
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Address : |
No.23/33,
Surveyor’s Street, Basavanagudi, |
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Legal Advisers : |
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|
Name : |
J. Sagar Associates Advocates and Solicitors |
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Address : |
2, Frontline Grandeur, 14, |
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Associates : |
v
VST Auto Ancilliaries Private Limited v
Vinay Industries v
v
v
MHI-VST Diesel Engines Private Limited v
Anand and Associates v
Rama Infotech |
|
|
|
|
Joint Ventures : |
v
MHI-VST Diesel Engines Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8639528 |
Equity Shares |
Rs.10/- each |
Rs.86.395
millions |
|
|
|
|
|
i) Issued,
Subscribed and Paid-up Capital includes 1,50,000 equity shares of Rs.10 each,
which were allotted as fully paid pursuant to a contract for consideration
other than cash.
ii) issued, Subscribed
and Paid-up Capital includes 28,79,843 equity shares of Rs.10 each, which were
allotted as fully paid up by way of bonus shares by capitalisation of share
premium.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
86.395 |
86.395 |
57.597 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1553.864 |
1182.406 |
863.562 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1640.259 |
1268.801 |
921.159 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
23.099 |
5.647 |
|
|
2] Unsecured Loans |
99.166 |
84.922 |
65.730 |
|
|
TOTAL BORROWING |
99.166 |
108.021 |
71.377 |
|
|
DEFERRED TAX LIABILITIES |
27.720 |
13.078 |
34.231 |
|
|
|
|
|
|
|
|
TOTAL |
1767.145 |
1389.900 |
1026.767 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
534.177 |
510.515 |
382.892 |
|
|
Capital work-in-progress |
27.990 |
17.069 |
3.565 |
|
|
|
|
|
|
|
|
INVESTMENT |
368.276 |
43.541 |
50.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
548.528
|
444.760 |
511.438 |
|
|
Sundry Debtors |
621.876
|
674.424 |
362.315 |
|
|
Cash & Bank Balances |
207.661
|
149.851 |
187.388 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
169.230
|
96.200 |
85.005 |
|
Total
Current Assets |
1547.295
|
1365.235 |
1146.146 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
368.250
|
266.078 |
335.876 |
|
|
Other Current Liabilities |
230.656
|
179.058 |
152.323 |
|
|
Provisions |
111.687
|
101.324 |
71.161 |
|
Total
Current Liabilities |
710.593
|
546.460 |
559.360 |
|
|
Net Current Assets |
836.702
|
818.775 |
586.786 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
3.524 |
|
|
|
|
|
|
|
|
TOTAL |
1767.145 |
1389.900 |
1026.767 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4253.105 |
3445.365 |
2741.360 |
|
|
|
Other Income |
59.729 |
27.671 |
48.227 |
|
|
|
TOTAL (A) |
4312.834 |
3473.036 |
2789.587 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials consumed |
2870.815 |
2256.920 |
1840.265 |
|
|
|
Personnel & Other Expenses |
701.709 |
566.409 |
474.870 |
|
|
|
Prior Year’s Adjustment |
(0.007) |
(0.892) |
(0.370) |
|
|
|
TOTAL (B) |
3572.517 |
2822.437 |
2314.765 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
740.317 |
650.599 |
474.822 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7.164 |
6.737 |
5.298 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
733.153 |
643.862 |
469.524 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
22.718 |
25.851 |
28.150 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
710.435 |
618.011 |
441.374 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
248.543 |
194.746 |
152.263 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
461.892 |
423.265 |
289.111 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
249.314 |
101.607 |
88.035 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
77.756 |
64.796 |
43.198 |
|
|
|
Tax on Distributed Dividends |
12.614 |
10.762 |
7.341 |
|
|
|
Transfer to General Reserve |
320.000 |
200.000 |
225.000 |
|
|
BALANCE CARRIED
TO THE B/S |
300.836 |
249.314 |
101.607 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
122.890 |
99.438 |
150.246 |
|
|
|
Others (Freight, Insurance etc.) |
2.688 |
2.726 |
1.501 |
|
|
TOTAL EARNINGS |
125.578 |
102.164 |
151.747 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components & Spares |
119.849 |
95.075 |
86.926 |
|
|
|
Capital Equipments |
15.379 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
135.228 |
95.075 |
86.926 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
53.46 |
48.99 |
50.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1131.800 |
1374.600 |
|
Total Expenditure |
|
966.800 |
1193.400 |
|
PBIDT (Excl OI) |
|
165.000 |
181.200 |
|
Other Income |
|
18.200 |
12.100 |
|
Operating Profit |
|
183.200 |
193.300 |
|
Interest |
|
2.000 |
1.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
181.200 |
191.500 |
|
Depreciation |
|
9.600 |
9.100 |
|
Profit Before Tax |
|
171.500 |
182.400 |
|
Tax |
|
58.800 |
59.300 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
112.700 |
123.100 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
112.700 |
123.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
10.71
|
12.19 |
10.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.70
|
17.94 |
16.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
34.13
|
32.95 |
28.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.49 |
0.48 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.49
|
0.52 |
0.68 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.18
|
2.50 |
2.05 |
LOCAL AGENCY FURTHER INFORMATION
COMPANY’S
PERFORMANCE
The Company has clocked
a modest growth by selling over 23000 Tillers and 4700 Tractors and continues
to maintain its leadership position in the power tiller industry.
The turnover for
the year registered an increase by 23% from Rs.3440.000 millions in 2009-10 to
Rs.4250.000 millions while the operating profit increased to Rs.650.000
millions compared to Rs.590.000 millions. However, the operating margin
declined by 1.83% due to increase in raw material costs. Profit after tax was
Rs.460.000 millions, an increase of 9% over the previous year and earnings per
share during the year increased from Rs.48.99 to Rs.53.46.
The sale of power
tillers during the year increased by 23%. While the Tractor sales have grown by
26% during the year. The Company’s aggressive plan to market Rice Transplanters
has been encouraging primarily driven by expensive farm labor and government
subsidy.
The performance of
Precision Component Division improved with exports registering a growth of 45% from
Rs.55.000 millions to Rs.80.000 millions. However export margins have been
impacted due to spiraling raw material costs with very little scope for passing
on the increase to their overseas customers. During the year, this division has
capitalized on growth opportunity in production of components for captive
consumption which has indirectly contributed to the overall performance of the
Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry structure
and developments:
The Indian economy
grew at around 8.5% during 2010-11 as against 8% recorded in 2009-10. With the
various measures adopted by the government and a normal monsoon the agriculture
and allied sector posted a healthy 5.6% growth compared to a negligible growth
during 2009-2010. The government’s strategy to improve credit availability and
interest subvention to farmers has spurred the growth in this sector.
The agricultural
sector contributes around 17% to the GDP and engages over 65% of the countries
workforce. Large parts of this sector are unorganized with limited bank finance
and low farm technology.
However, with the
higher support prices for food grains, realization has improved for farmers
contributing to the overall growth. The continuation of government schemes such
as the National Rural Employment Guarantee Act (NREGA) has indirectly given a
fillip for increased demand for farm machinery.
The power tiller
sector in
The Indian tractor
market which is the largest in the world is expected to increase at a CAGR of
6-7% by 2014-15. With the rise in rural incomes and the governments focus on
increasing mechanization, improvement in yields are expected. During the year
the domestic tractor industry sold 482,237 units compared to 402,935 units in
the previous year with over 12 major players catering to various segments from
25HP to above 55HP. The company commands a significant market share in
Maharashtra,
CURRENT YEAR
OUTLOOK
Agriculture is the
mainstay of more than 600 million Indians but is highly fragmented. The
Government is targeting over 5% growth for agriculture in the Eleventh Five
Year Plan and according to the Economic Survey, expenditure on rural
development and investments are expected to grow. A favorable monsoon coupled
with ease of credit availability to farmers will have a positive influence on
the power tiller and tractor industry. The company is confident of maintaining
its growth momentum. On the export front the outlook is positive for tractors
and the company is taking steps to expand production capacity to cater to
specific markets.
The steps taken to
introduce Rice Transplanters in various states is on going. Extensive work to
train self help groups on various aspects of adapting to mechanized
transplantation is being pursued and your
Company driven by
these initiatives is expecting to reap rewards in the long term.
Currently, the
most challenging task is efficiency in procuring Components. Due to the robust
growth experienced in the automobile sector, availability of adequate material
has been affecting the Company’s production leading to opportunity losses.
Recognizing that scale and market growth are essential, the Company is
revamping vendors commensurate with growth and is increasing value added
activities. In the above background, the Company will continue to focus on retaining
its advantage in power tillers in the year ahead and scale up tractor supplies
to meet the growing demand.
During the year,
the Company has embarked on establishing a new Tractor manufacturing plant in
Hosur, Tamilnadu with an installed capacity of 15000 units p.a. to cater to the
increased demand in the lower hp tractor segment. The financial outlay for this
project is budgeted at Rs.660.000 millions and is proposed to be funded with a
mixture of internal accruals and debt. The plant is expected to go on stream
during the third quarter of 2012. This project will also give the Company the
prospect of introducing more tractor models in the future.
At Precision
Component Division, infrastructure is being upgraded in required areas to cater
to higher captive consumption. They believe the export demand would remain flat
as the Company’s aim is to concentrate on in-house supplies.
Future plan of
action:
a. Testing and
approval of 21 HP tractor under progress.
b. New aesthetics
for 21 HP tractor under development and Production implementation.
c. Homologation
updation for Tractor for European Market.
CONTINGENT
LIABILITIES NOT PROVIDED FOR: (As on 31.03.2011)
I. Cases filed by
the customers in various consumer courts not acknowledged as debt Rs.4.237
millions
II. Bank Guarantee
Outstanding with Canara Bank Rs.6.222 millions as at March 31, 2011
III. Foreign
Letter of Credit (FLC) Outstanding with Canara Bank Rs.20.874 millions as at
March 31, 2011
IV. Input Cenvat
claim not admitted by the department of Customs, Central Excise and Service Tax
is Rs.1.156 millions. Company has appealed to the Commissioner (Appeals) of
Customs, Central Excise and Service Tax.
FIXED ASSETS:
v
Land
v
Buildings
v
Plant and Machinery
v
Computer Systems
v
Office Equipments
v
Vehicles
v
Furniture and Fixtures
WEBSITE DETAILS:
BACKGROUND
Subject was
incorporated in the year 1967 in
In 1984, an
additional technical and financial collaboration with Mitsubishi Agricultural
Machinery Company Limited,
The manufacturing
plant is located in Whitefield Industrial area near
Subject has in-house
Design and Development section for upgrading the level of technology in line
with current requirements. It also upgrades existing products and develops new
products demanded by market from time to time. Subject has ISO-9001
certification for Quality Management System since January 1998. Subject follows
ISO 9001-2008 Quality System requirements to satisfy all customer needs.
The main products of
the Company namely Power Tillers and Tractors are used in the agricultural
sector all over the
The Company has a
nation-wide network of Dealers supported by Sales and Service. This is
supported by supply of spare parts, provision of service tools and equipments,
making available service information through technical literature, instruction
manuals etc., and imparting training to Dealers’ personnel as well as end users
namely the farmers, are some of the effective steps taken by the Company
towards customer satisfaction.
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.51.77 |
|
|
1 |
Rs.81.32 |
|
Euro |
1 |
Rs.69.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.