MIRA
INFORM REPORT
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Report Date : |
13.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT GEARS LIMITED |
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Registered
Office : |
20 K M |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
23.12.1971 |
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Com. Reg. No.: |
55-034365 |
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Capital
Investment / Paid-up Capital : |
Rs. 88.603 Millions |
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CIN No.: [Company Identification
No.] |
L29130HR1971PLC034365 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RTKB02585C |
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PAN No.: [Permanent Account No.] |
AAACB4860G |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of wide range of hypoid/spiral gears and shafts, complete
automotive transmission, gearbox sub-assemblies and differential assemblies |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2360000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having satisfactory
track. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Factory 1 : |
20 K M |
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Tel. No.: |
91-129-4288888 |
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Fax No.: |
91-129-4288822 |
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E-Mail : |
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Website : |
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Corporate Office/ Branch Office
: |
14th Floor, Hoechst House, Nariman Point, Mumbai – 400021, |
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Tel. No.: |
91-22-2883180 |
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Factory 2 : |
Kausa Shil Mumbra, District – Thane – 400612, |
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Tel. No.: |
91-22-25352692/25352034 |
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Fax No.: |
91-22-25351651 |
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E-Mail : |
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Branch Office : |
1009, Also Located at
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DIRECTORS
As on 31.03.2011
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Name : |
Mr. Sameer Kanwar |
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Designation : |
Joint Managing Director |
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Name : |
Mr. W.R. Schilha |
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Designation : |
Non Executive Director |
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Name : |
Mr. S.G. Awasthi |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. V.K. Pargal |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. Rakesh Chopra |
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Designation : |
Non Executive Independent Director |
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Name : |
Dr. Ram S. Tarneja |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. Surinder P. Kanwar |
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Designation : |
Chairman cum Managing Director |
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Name : |
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Designation : |
Non Executive Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Milind Pujari |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. P.C. Kothari |
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Designation : |
Head Finance and Accounts |
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Name : |
Mr. B.L. Pansare |
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Designation : |
Location Head ( |
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Name : |
Mr. Naresh Verma |
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Designation : |
Corporate Head – HR |
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Name : |
Mr. B.P. Shah |
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Designation : |
Head Operation (Mumbra) j |
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Name : |
Mr. K.K Deshpande |
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Designation : |
Head OE – Marketing and Business Development |
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Name : |
Mr. Jagdeep Singh |
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Designation : |
Business Head – After Market |
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Name : |
Mr. Sanjeev Kumar Mital |
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Designation : |
Head Material and Central Purchase |
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Name : |
Mr. Prashant Khattry |
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Designation : |
Group Head (Legal) and Company Secretary |
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AUDIT COMMITTEE : |
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SHAREHOLDERS’/INVESTORS’
GRIEVANCE COMMITTEE: |
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REMUNERATION COMMITTEE : |
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FINANCE COMMITTEE : |
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REVIEW COMMITTEE : |
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EXECUTIVE COMMITTEE : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Category of Shareholders |
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(A) Shareholding of Promoter and Promoter Group |
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2301290 |
29.44 |
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1662213 |
21.26 |
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3963503 |
50.70 |
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Total shareholding of Promoter and Promoter Group (A) |
3963503 |
50.70 |
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(B) Public Shareholding |
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3300 |
0.04 |
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10218 |
0.13 |
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50 |
- |
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|
13568 |
10.17 |
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894451 |
11.44 |
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1967228 |
25.16 |
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710268 |
9.09 |
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160954 |
2.06 |
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7505 |
0.10 |
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99356 |
1.27 |
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Trusts |
1000 |
0.01 |
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3840762 |
49.13 |
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Total Public shareholding (B) |
3854330 |
49.30 |
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Total (A)+(B) |
7817833 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
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-- |
-- |
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-- |
-- |
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-- |
-- |
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Total (A)+(B)+(C) |
7817833 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturer of wide range of hypoid/spiral gears and shafts, complete
automotive transmission, gearbox sub-assemblies and differential assemblies |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Automotive gears |
Nos. |
NA |
5218000 |
4414226 |
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Industrial furnaces |
Nos. |
NA |
20 |
3 |
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Gear box |
Nos. |
NA |
2500 |
Nil |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitee Haskins and Sells Chartered Accountant |
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Address : |
12, |
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Related Parties : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
10000000 |
Equity Shares |
Rs.10/- each |
Rs. 100.000 Millions |
|
1500000 |
Preference Shares |
Rs.100/- each |
Rs. 150.000 Millions |
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TOTAL |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
7817833 |
Equity Shares |
Rs.10/- each |
Rs. 78.178 Millions
|
|
104250 |
Preference Shares |
Rs.100/- each |
Rs. 10.425
Millions |
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TOTAL |
|
Rs. 88.603 Millions |
NOTES:
Series VI, VII and VIII aggregating Rs.20.850 millions were allotted on 29 September, 2003 in respect of the present value of 50% of the differential interest on account of reduction in interest rate on the term loans as per the Corporate Debt Restructuring scheme. 50% of series VI, VII and VIII amounting to Rs. 10.425 millions were redeemed at par on 31 March, 2011 and balance of Rs. 10.425 millions are redeemable at par on 31 March, 2012.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
88.603 |
99.028 |
99.028 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
502.283 |
422.682 |
376.056 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
590.886 |
521.710 |
475.084 |
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LOAN FUNDS |
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1] Secured Loans |
484.769 |
363.446 |
502.944 |
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2] Finance Lease Obligation |
96.581 |
50.858 |
65.440 |
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TOTAL BORROWING |
581.350 |
414.304 |
568.384 |
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DEFERRED TAX LIABILITIES |
12.053 |
14.553 |
22.553 |
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TOTAL |
1184.289 |
950.567 |
1066.021 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
796.240 |
625.090 |
682.846 |
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Capital work-in-progress |
52.328 |
19.018 |
14.643 |
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Advance in Capital Account |
19.521 |
1.247 |
2.179 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
536.698
|
375.851 |
324.305 |
|
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Sundry Debtors |
591.445
|
500.303 |
480.982 |
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Cash & Bank Balances |
110.711
|
69.354 |
45.939 |
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Other Current Assets |
18.283
|
13.844 |
12.318 |
|
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Loans & Advances |
145.356
|
104.461 |
105.707 |
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Total
Current Assets |
1402.493
|
1063.813 |
969.251 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditors |
579.500
|
382.044 |
328.578 |
|
|
Other Current Liabilities |
382.013
|
279.337 |
184.922 |
|
|
Provisions |
124.780
|
97.786 |
92.458 |
|
Total
Current Liabilities |
1086.293
|
759.167 |
605.958 |
|
|
Net Current Assets |
316.200
|
304.646 |
363.293 |
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.566 |
3.060 |
|
|
|
|
|
|
|
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TOTAL |
1184.289 |
950.567 |
1066.021 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
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|
Sales Including Processing Charges |
3305.057 |
2462.397 |
2383.768 |
|
|
|
Other Income |
49.566 |
48.626 |
69.214 |
|
|
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TOTAL (A) |
3354.623 |
2511.023 |
2452.982 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
1636.819 |
1205.437 |
1126.561 |
|
|
|
Payments to and provisions for employees |
498.141 |
398.456 |
412.777 |
|
|
|
Other expenses |
898.527 |
629.655 |
682.927 |
|
|
|
TOTAL (B) |
3033.487 |
2233.548 |
2222.265 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
321.136 |
277.475 |
230.717 |
|
|
|
|
|
|
|
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|
Less |
INTEREST AND
FINANCIAL EXPENSES (D) |
84.644 |
85.654 |
77.382 |
|
|
|
|
|
|
|
|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
236.492 |
191.821 |
153.335 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
90.917 |
95.531 |
98.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
145.575 |
96.290 |
55.029 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
48.447 |
34.874 |
14.600 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
97.128 |
61.416 |
40.429 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
88.469 |
45.423 |
21.580 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
2.085 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
11.727 |
11.466 |
9.903 |
|
|
|
Tax on Distributed Profits |
2.294 |
1.904 |
1.683 |
|
|
|
Transferred to Redemption Reserve |
10.425 |
0.000 |
0.000 |
|
|
|
Transferred to General Reserve |
10.000 |
5.000 |
5.000 |
|
|
BALANCE CARRIED
TO THE B/S |
149.066 |
88.469 |
45.423 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
455.912 |
284.879 |
451.068 |
|
|
|
Tooling Development Income |
6.474 |
0.564 |
15.557 |
|
|
|
Other Earnings |
25.911 |
4.746 |
7.207 |
|
|
|
Exchange Gain |
0.000 |
0.000 |
10.578 |
|
|
TOTAL EARNINGS |
488.297 |
290.189 |
484.41 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
19.301 |
22.191 |
4.709 |
|
|
|
Loose Tools, Stores & Spares Parts |
19.070 |
15.295 |
14.220 |
|
|
|
Capital Goods* (includes Rs. 40.002 million on fixed assets imported
by lessor under finance lease) |
143.148 |
17.471 |
130.030 |
|
|
TOTAL IMPORTS |
181.519 |
54.957 |
148.959 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.11 |
7.54 |
4.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2ND
Quarter |
|
Net Sales |
|
989.700 |
1008.300 |
|
Total Expenditure |
|
906.200 |
914.800 |
|
PBIDT (Excl OI) |
|
83.500 |
93.500 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
83.500 |
93.500 |
|
Interest |
|
28.000 |
30.500 |
|
PBDT |
|
55.500 |
63.000 |
|
Depreciation |
|
25.500 |
25.900 |
|
Profit Before Tax |
|
30.000 |
37.100 |
|
Tax |
|
10.500 |
12.300 |
|
Profit After Tax |
|
19.500 |
24.800 |
|
Net Profit |
|
19.500 |
24.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.90
|
2.45 |
1.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.40
|
3.91 |
2.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.62
|
5.70 |
3.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.18 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.82
|
2.25 |
2.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29
|
1.40 |
1.60 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL AND
OPERATIONAL PERFORMANCE
During the year the Company has made scheduled repayments of
Rs.136.100 millions of term loans to Financial Institutions and Banks. Further disbursements
from the banks of Rs.121.200 millions have been received to part-finance
acquisition of additional plant and machinery.
Turnover of the Company has grown by 34% as compared to
previous year. However EBIDTA was lower at 8.93% vis-ŕ-vis 10.34% of previous
year, mainly on account of pressure on margins due to rising costs of raw
materials and petroleum products. Profit before tax was higher at Rs. 145.600
millions as against Rs. 96.300 millions in the previous year. After provision
for tax (net) of Rs. 48.500 millions net profit after tax is at Rs. 97.100
millions as against Rs. 61.400 millions for the previous year.
In view of higher demand from both Domestic and Overseas
customers, the Company is planning necessary investments in expanding capacities
by investing in additional machines and balancing equipments. Additional capex
for FY2011-12 shall be financed by way of a mix of internal accruals and debt.
Further, the Company has also drawn up a plan for setting up a
While the Company is well positioned to meet higher off take
from the market, it is also focused on improvement in margins by efficient
utilization of working capital and achieving higher operating efficiencies.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY AND MARKET
OVERVIEW
FY 2010-11 ended with a GDP growth of 8.6%, a clear
indication that
BGL has maintained its position as the leading suppliers of
Gear components for the LCV/ Medium/Heavy Commercial Vehicles, Utility
Vehicles, Construction and for the Agricultural Tractors in
INDUSTRY STRUCTURE
& DEVELOPMENTS IN THE INDUSTRY:
The Indian automotive industry comprises of the following
product segments.
- Passenger Vehicles (UV and MPV)
- Commercial vehicles (HCV, MCV, and LCV)
- Cars
- Two wheelers and Three wheelers
- Tractors
- Off-highway vehicles and other mobile construction
equipment
TRACTOR INDUSTRY:
The tractor industry continued to grow at 24% during FY
2010-11. With more thrust given to agricultural growth in the budget, this
number is bound to increase. Also, monsoon is expected to be normal for the
second consecutive year. Further, non-agricultural use of tractors (for haulage
in construction and infrastructure projects) continued to rise, resulting in
higher tractor demand .The Company is
having a major share of the market & focused on growth in both Domestic
& Export market.
COMMERCIAL VEHICLE
INDUSTRY:
During the year, Passenger Vehicles segment grew at 29%,
Utility Vehicles grew by 18% and Multi-Purpose Vehicles grew by 42% the overall
Commercial Vehicles segment registered growth of 27% during April-March 2011.
While Medium and Heavy Commercial Vehicles (M and HCVs) registered growth of
32%, Light Commercial Vehicles grew at 23%. During April-March 2011, overall
automobile exports also registered a growth rate of 29%.
For the current year, Medium and Heavy Commercial Vehicles
(M and HCVs) is projected to grow by 10 -12% as against 32.6% of last year.
Light Commercial Vehicles growth to continue at 28 %.
OFF-HIGHWAY VEHICLES & CONSTRUCTION EQUIPMENT:
With the growth of economy and various efforts and
initiatives taken by our Government, sectors such as Infrastructure and power
have picked up. With this, off-highway and construction vehicles sales also
grew up by about 10% last year and are expected to maintain the momentum in
coming years.
The Company has tied up with major off-highway vehicle
manufacturers to supply transmission parts in
OUTLOOK:
The competition in the Country’s auto sector is likely to
increase due to increasing penetration of global original equipment
manufacturers. There has been an overall growth in the domestic sales of
vehicles of all segments in the beginning of the financial year 2011-12.
Since the Company is largely serving to Tractor and off
highway vehicle industry, we have managed to grow by more than 30% year on year
in sales turnover and continue to target the same growth in our annual budget
plan for coming year. Outlook for Furnace business is positive.
CONTINGENT LIABILITIES
A. *In respect of claims against the Company not acknowledged as debt (Sales tax, ESIC) - Rs. 0.159 Millions (Previous Year: Rs. 0.752 Millions) against which the Company’s appeals are pending with the relevant appellate authorities.
B. In respect of Sales Invoice Finance facility - Rs. 72.037 Millions (Previous Year: Rs. Nil)
C. *In respect of Income Tax –
A. On account of disallowance of expenditure on reconditioning of plant and machinery for the assessment year 1994-95 – Rs. 5.041 Millions (Previous Year: Rs. 5.041 millions) for which the Company’s appeal against ITAT order is pending with the High Court.
B. On account of disallowance of provision of leave encashment (including interest) for assessment years 2007-08, 2008- 09 and 2009-10 - Rs. 4.400 millions (Previous Year: Rs. Nil) for which the Company has preferred appeal against appropriate authority.
D. *In respect of Employees - Rs. 4.987 millions (Previous Year: Rs. Nil). The Company has filed an appeal in the Bombay High Court against the order passed by Third Labour Court on issue of back wages and reinstatement of 11 employees.
E. In respect of penal interest for late renewal of Employee Deposit Linked Insurance Policy for financial year 2008-09 – Rs. 0.443 millions (Previous Year: Nil).
*Future ultimate outflow of resources embodying economic benefits in respect of these matters is uncertain as it depends on financial outcome of judgments / decisions on the matters involved.
UNAUDITED
FINANCIAL RESULT FOR THE QUARTER ENDED 30.09.2011
Rs.
in Millions
|
Particular |
Quarter Ended 30.09.2011 |
Half Year Ended 30.09.2011 |
|
|
|
|
|
Gross
Sales/ Income From operation |
1068.400 |
2127.200 |
|
Less
: Excise Duty |
86.400 |
172.700 |
|
Net
Sales / Income from operations |
982.000 |
1654.500 |
|
Other
Operating Income |
26.300 |
43.500 |
|
Expenditure |
|
|
|
(Increase)
/ Decrease in stock in trade and work in progress |
(68.900) |
(82.000) |
|
Consumption
of raw materials |
584.600 |
1111.800 |
|
Employee
Cost |
135.000 |
276.300 |
|
Power
and fuel |
80.400 |
156.500 |
|
Depreciation |
25.900 |
51.400 |
|
f)
Other expenditure |
183.700 |
358.400 |
|
Total |
940.700 |
1872.400 |
|
Profit
from operations before other income, interest and exceptional Items |
67.600 |
125.600 |
|
Other
income |
0.000 |
0.000 |
|
Profit
before interest and exceptional Items |
67.600 |
125.600 |
|
Interest |
30.500 |
58.500 |
|
Profit after Interest but
before Exceptional Items |
37.100 |
67.100 |
|
Exceptional
Items |
0.000 |
0.000 |
|
Profit (+)/Loss(-) from Oridinary
Activities before tax |
37.100 |
67.100 |
|
Tax
expense |
12.300 |
22.800 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
24.800 |
44.300 |
|
Extraordinary items |
0.000 |
0.000 |
|
Net
Profit (+) / Loss (-) for the year period |
24.800 |
44.300 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
78.200 |
78.200 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
|
|
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
3.13 |
5.59 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year to
date and for the previous year (not to be
annualised) |
3.13 |
5.59 |
|
Public
shareholding |
|
|
|
Number of shares |
3854330 |
3854330 |
|
Percentage of shareholding |
49.30% |
49.30% |
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
|
b)
Non Encumbered |
|
|
|
Number
of shares |
3963503 |
3963503 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100% |
100% |
|
Percentage
of shares (as a % of total share capital of the company) |
50.70% |
50.70% |
1. The above financial results as reviewed and recommended by the Audit Committee have been approved by the Board of Directors at its meeting held on 14 November 2011
2. The auditors of the company have carried set limited review of the Un-Audited Financial Results to quarter and half year ended September 30. 2011
3. During the quarter, approval of central government has been received for a part of increase remuneration payable to joint managing director that has been originally requested Employee cost for the quarter and half year ended September 30, 2011 includes Rs. 0.279 millions being provision for additional remuneration payble to the joint managing director which is subject to approval of the central government for which application has been filed before ministry of corporate affairs by the company
4) Statement of Assets and Liabilities
(Rs.
in millions)
|
Particulars |
As at 30.09.2011 Unaudited |
|
Shareholders’ Funds |
|
|
(a) Capital |
88.600 |
|
(b) Reserves and Surplus |
545.800 |
|
Loan Funds |
621.400 |
|
Deferred Tax Liabilities |
11.600 |
|
Total |
1267.400 |
|
Fixed Assets |
971.100 |
|
Investments |
0.000 |
|
Deferred Tax Assets |
0.000 |
|
Current Assets, Loans and Advances |
|
|
(a) Inventories |
612.500 |
|
(b) Sundry Debtors |
625.200 |
|
(C) Cash and Bank balances |
91.900 |
|
(d) Other current assets |
21.600 |
|
(e) Loans and Advances |
148.300 |
|
Less : Current Liabilities and Provisions |
|
|
(a) Liabilities |
1091.800 |
|
(b) Provisions |
111.400 |
|
Total |
1267.400 |
5. The company is primarily engaged in the auto motive gears business as such there is no other separate reportable segments as defined by accounting standard – 17 segment reports
6 There was no investors complaint pending as at the beginning of the quarter no complaint was received during the quarter and no complaint was pending at the quarter end on the basis of the details provided by registrar
7 Previous period years figures have been regrouped wherever necessary to conform to these period years.
FIXED ASSETS
- Land Freehold
- Land Leasehold
- Building and Roads
- Plant and Machinery
- Electrical Installation
- Furniture and Fixture
- Computer
- Vehicles
WEBSITES DETAILS
OVERVIEW
Subject is one of the world leaders in gears technology and
Subject is a major global supplier of automotive gears and heat treatment
furnaces. The company
manufactures a wide range of Ring Gears and Pinions, Transmission
Gears and Shafts, Differential Gears, Gear Boxes majorly for the automotive
industry.
Their modern manufacturing facilities are located at Mumbra near
Mumbai
(
In its relentless efforts to meet and exceed the needs and demands of its
customers subject has made rapid progress in the international market. Leading
OEM's like TATA Motors Ltd. (TML), New Holland Tractors, John Deere Equipment
Private Limited. (JDEPL), VST Tractors (Mitsubishi), Carraro, John Deere
Coffeyville Works (JDCW), TMA, TDI and Tier I companies like Dana Corporation
in USA, and several others source their complex gears and furnaces requirements
from Subject. Subject has strong technology and human resource base to meet the
exacting standards of the most demanding customers in the world.
With both plants
ISO/TS-16949:2002 Certified and
Today, Subject is
Their Group company Raunaq International Limited, an Engineering Contracting Organisation
managed by dedicated team of professionals at various levels in different
disciplines, is engaged in the service of core sector of industries in
HISTORY
Subject was founded
by the tireless Dr.
Raunaq Singh, a man who aspired to take on the challenges
of the liberalization of the Indian economy and the opportunities of the 21 st
Century. With his dynamic leadership, Dr. Raunaq Singh was instrumental in
strengthening Bharat Gears to leadership position it is in today.
Incorporated on 23rd December 1971, BGL is
BGL combines a modern line of machinery from all over the world.
Subject manufactures a wide range of hypoid/spiral gears, differential gears
and shafts, complete automotive transmissions, gearbox sub-assemblies and
differential assemblies.
World class parallel axis gear grinding and welding machines are deployed to enhance the capabilities to
produce internals for heavy-duty power shift transmissions.
Subject furnace division builds a variety of furnaces - sealed quench,
continuous gas carburisers, rotary hearths etc. with technical know-how from
With niche markets in the OEM segment being serviced from the Mumbra plant, BGL
felt the need to penetrate the untapped replacement market that comprises about
50% of the auto component industry. The fresh capacity needed to address the
opportunity was achieved by the amalgamation of Universal Steel and Alloys
Limited with subject under a scheme of rehabilitation sanctioned by BIFR
effective April 1, 1998. The facilities so acquired at
Apart from being the largest manufacturer of gears for OEM's in
Both plants are ISO/TS-16949:2002 and Faridabad Plant is ISO 14001:1996 also.
BGL's customer list includes almost all the players in the automobile industry in the tractors, trucks and buses and
utility vehicle segments like TML, JDEPL, Escorts, Carraro India, Mahindra and
Mahindra, JCB and Hero Motors, Axle India, VST Tillers, TAFE, Ashok Leyland,
Spicer India and Toyota Kirloskar. For several of the players, BGL is the
single source supplier for gears. In the export market, BGL's clients include
Carraro Spa Italy, JDCW-USA, TMA-USA, DANA Corp.-
MAJOR MILESTONE
1972 Foundation Stone laid at Mumbra Factory.
1974 Inauguration of the Hypoid Plant and Commencement of Production with 'Gleason Machines'.
1980 First
'Oerlikon Spiromatic Generator' installed. BGL becomes the First Company in
1981
Memorandum of Association signed with
1985-2007
Collaboration Agreement with ZF AG
1987 Delivery for ZF S6-36 Gears & Shafts to
Ashok Leyland Ltd. and ZFAG,
1987 Start of Assembly of ZF S5-24 Gear Boxes for Ashok Leyland.
1988 Start of
business with DANA CORPORATION,
1994 BGL receives ISO 9002
1996 BGL crosses turnover of Rs. 1 Billion.
1998 Foundation Stone for
2000 Start of Commercial Production in
2000 BGL receives SQ 9000 for Mumbra Plant
2001 BGL receives SQ 9000 for Faridabad Plant
2004 BGL Faridabad starts supply to Toyota Kirloskar Auto Parts
2004 BGL Faridabad receives ISO 14001 certification
2005 BGL Faridabad & Mumbra receives TS 16949 certification
2008 Introduction of Dry Cut Hobbing process
2009 Introduction of Klinglenberg Close Loop CNC Gear Measuring system
2010 Introduction of Bevel Gear dry cutting process with close loop technology
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.52.42 |
|
|
1 |
Rs.81.92 |
|
Euro |
1 |
Rs.69.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
45 |
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.