BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
WENDT INDIA LIMITED |
Principal Name 1 |
MR. M. M. MURUGAPPAN |
|
Status |
GOOD |
Principal Name 2 |
MR. E. ALLITSCH |
|
|
|
Registration # |
08-003913 |
|
Street Address |
FLAT NO.105, 1ST
FLOOR, CAUVERY BLOCK, NATIONAL GAMES HOUSING COMPLEX, KORAMANGALA, |
||
|
Established Date |
21.08.1980 |
SIC Code |
-- |
|
Telephone# |
91-80-25701423/ 1424 |
Business Style 1 |
MANUFACTURER |
|
Fax # |
91-80-25701425 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
SUPER ABRASIVE GRINDING WHEELS |
|
|
# of employees |
NOT AVAILABLE |
Product Name 2 |
GRINDING MACHINES AND TOOLS |
|
Paid up capital |
RS.20,000,000/- |
Product Name 3 |
-- |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-79.74% PUBLIC SHAREHOLDING-20.26% |
Banking |
STATE BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
31 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (63) |
|
Related
Company |
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|
Relation
|
Country
|
Company
Name |
CEO |
|
SUBSIDIARIES |
|
WENDT GRINDING TECHNOLOGIES LIMITED |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
203,526,000
|
Current Liabilities |
170,401,000
|
|
Inventories |
101,476,000
|
Long-term Liabilities |
0,000 |
|
Fixed Assets |
308,403,000 |
Other Liabilities |
105,302,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
275,703,000 |
|
Invest & other Assets |
243,721,000 |
Retained Earnings |
561,423,000 |
|
|
|
Net Worth |
581,423,000 |
|
Total Assets |
857,126,000 |
Total Liab. & Equity |
857,126,000 |
|
Total Assets (Previous Year) |
694,915,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
815,096,000 |
Net Profit |
159,509,000 |
|
Sales(Previous yr) |
559,397,000 |
Net Profit(Prev.yr) |
98,233,000 |
MIRA INFORM
REPORT
|
Report Date : |
20.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
WENDT INDIA LIMITED |
|
|
|
|
Registered
Office : |
Flat No.105, 1st Floor, Cauvery Block, National Games Housing
Complex, Koramangala, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
21.08.1980 |
|
|
|
|
Com. Reg. No.: |
08-003913 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.20.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85110KA1980PLC003913 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRW00459E |
|
|
|
|
Legal Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Super
Abrasive Grinding Wheels (Diamond and Cubic Boron Nitride), Special Purpose
Grinding Machines and Tools. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 2326000 |
|
|
|
|
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. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Flat No.105, 1st Floor, Cauvery Block, National Games
Housing Complex, Koramangala, |
|
Tel. No.: |
91-80-25701423/ 1424 |
|
Fax No.: |
91-80-25701425 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Factory/ Head/ Sales and Marketing Office : |
Plot 69/ 70, SIPCOT Industrial Estate, Hosur – 635 126, |
|
Tel. No.: |
91-4344-276851/ 276852/ 276854/ 405500/ 405501 |
|
Fax No.: |
91-4344-405620/ 405619/ 405630 |
|
E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. M. M. Murugappan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. E. Allitsch |
|
Designation : |
Alternate Director to P. Verholen |
|
|
|
|
Name : |
Mr. Shrinivas G. Shirgurkar |
|
Designation : |
Director |
|
Date of Birth/ Age : |
08.04.1948 |
|
Qualification : |
BE (Mechanical) |
|
Experience in Specific functional areas : |
In 1970 he started
his career as a Machine Tool Designer and in 1979 set up Ace Designers as a
partnership firm offering Machine Tool Design Consultancy. Now he is the
Managing Director of Ace Designers Limited, which is one of the largest
manufacturers of CNC turning machines in |
|
Date of
Appointment : |
17.04.2006 |
|
|
|
|
Name : |
Mr. K. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. S. Shetty |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Apeksha Nagori |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Venkatesh M.S. |
|
Designation : |
General Manager – Marketing |
|
|
|
|
Name : |
Mr. Rajesh
Khanna |
|
Designation : |
Chief Executive |
|
|
|
|
Name : |
Mr. J. H.
Sastry |
|
Designation : |
General Manager - Manufacturing |
|
|
|
|
Name : |
Mr. D. R.
Kulkarni |
|
Designation : |
General Manager - Technology |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
797,352 |
39.87 |
|
|
797,352 |
39.87 |
|
|
|
|
|
|
797,352 |
39.87 |
|
|
797,352 |
39.87 |
|
Total shareholding of Promoter and Promoter Group (A) |
1,594,704 |
79.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,850 |
0.09 |
|
|
1,850 |
0.09 |
|
|
|
|
|
|
18,697 |
0.93 |
|
|
|
|
|
|
372,722 |
18.64 |
|
|
12,027 |
0.60 |
|
|
871 |
0.04 |
|
|
709 |
0.04 |
|
|
10,447 |
0.52 |
|
|
403,446 |
20.17 |
|
Total Public shareholding (B) |
405,296 |
20.26 |
|
Total (A)+(B) |
2,000,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
2,000,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Super
Abrasive Grinding Wheels (Diamond and Cubic Boron Nitride), Special Purpose
Grinding Machines and Tools. |
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|
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Resin, Metal and
Electroplated Diamond/ CBN Wheels, Hones Pellets, Dressing Tools etc. |
Nos. |
250,000 |
202,658 |
|
Diamond
Segmented Saws, Mining Products and Tools |
Nos. |
3,000 |
2,641 |
|
Machinery and Accessories |
Nos. |
25,000 |
7,766 |
|
|
|
|
|
Note:
1. Installed
capacities are as certified by the management and have not been verified by the
auditors, this, being a technical matter.
2. Licensed
capacity is not applicable.
3. Figures in brackets relate to previous year.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
State Bank of |
|
|
|
|
Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Chennai, |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
|
Subsidiaries : |
v
Wendt Grinding
Technologies Limited Plant Address: 109/21 Moo 4, Eastern
Seaboard Industrial Estate (Rayong), Tambol Pluakdaeng, Amphur Pluakdaeng, Ph : +66-3895-5490 / +66-3895-5491-2 Ext.
10 Fax : +66-3895-5493 E-mail : praveen@wendt-thai.com, wil@wendtindia.com v
Wendt Middle Plant Address: Warehouse No. W3-8, P.O. Box
No. 50732, Hamriyah Free Zone – Sharjah, UAE Ph : +971 50 1153343 Fax : +971 65 778084 E-mail : satyaprasadk-wme@wendtindia.com,
wil@wendtindia.com |
|
|
|
|
Venturers to the
joint venture with whom transactions have taken place during the year : |
v
Carborundum Universal Limited (CUMI) v
Wendt GmbH |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000
Millions |
|
|
|
|
|
(Of the above 1,500,000 Equity shares were allotted as Bonus
shares by capitalization of General and Capital Redemption
Reserve)
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 |
20.000 |
20.000 |
20.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
561.423 |
460.218 |
420.289 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
581.423 |
480.218 |
440.289 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
2.877 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.756 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
3.633 |
|
|
DEFERRED TAX LIABILITIES |
23.846 |
23.279 |
22.874 |
|
|
|
|
|
|
|
|
TOTAL |
605.269 |
503.497 |
466.796 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
308.403 |
277.830 |
215.048 |
|
|
Capital work-in-progress |
17.990 |
17.176 |
46.009 |
|
|
|
|
|
|
|
|
INVESTMENT |
225.731 |
167.174 |
119.974 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
101.476
|
70.433 |
52.222 |
|
|
Sundry Debtors |
149.585
|
117.437 |
125.779 |
|
|
Cash & Bank Balances |
9.905
|
13.064 |
15.128 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
44.036
|
31.801 |
317.997 |
|
Total
Current Assets |
305.002
|
232.735 |
511.126 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
130.654
|
104.326 |
80.547 |
|
|
Other Current Liabilities |
39.747
|
14.507 |
14.330 |
|
|
Provisions |
81.456
|
72.585 |
330.484 |
|
Total
Current Liabilities |
251.857
|
191.418 |
425.361 |
|
|
Net Current Assets |
53.145
|
41.317 |
85.765 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
605.269 |
503.497 |
466.796 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
815.096 |
559.397 |
512.023 |
|
|
|
Machining Charges |
2.221 |
1.500 |
1.587 |
|
|
|
Other Income |
29.895 |
22.165 |
30.862 |
|
|
|
TOTAL (A) |
847.212 |
583.062 |
544.472 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
245.886 |
167.622 |
170.013 |
|
|
|
Purchase of Traded Goods |
13.036 |
8.117 |
|
|
|
|
Employees Cost |
109.517 |
97.847 |
84.624 |
|
|
|
Other Costs |
220.949 |
153.796 |
142.072 |
|
|
|
(Accretion) / Decretion to Stock |
(7.539) |
(15.725) |
(3.939) |
|
|
|
TOTAL (B) |
581.849 |
411.657 |
392.770 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
265.363 |
171.405 |
151.702 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
0.006 |
0.022 |
0.041 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
265.357 |
171.383 |
151.661 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
29.781 |
25.918 |
21.950 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
235.576 |
145.465 |
129.711 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
76.067 |
47.232 |
41.287 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
159.509 |
98.233 |
88.424 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
72.435 |
67.506 |
60.880 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
35.000 |
35.000 |
35.000 |
|
|
|
Interim Dividend @ 100% |
0.000 |
0.000 |
20.000 |
|
|
|
Final Dividend @ 250% |
50.000 |
50.000 |
20.000 |
|
|
|
Tax on Dividend |
8.304 |
8.304 |
6.798 |
|
|
BALANCE CARRIED
TO THE B/S |
138.640 |
72.435 |
67.506 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of goods exported |
144.602 |
124.104 |
174.714 |
|
|
|
Others |
14.439 |
10.914 |
5.857 |
|
|
TOTAL EARNINGS |
159.041 |
135.018 |
180.571 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
168.060 |
105.580 |
92.900 |
|
|
|
Stores and Spare parts |
12.015 |
9.349 |
7.117 |
|
|
|
Capital Goods |
16.713 |
31.339 |
40.050 |
|
|
TOTAL IMPORTS |
196.788 |
146.268 |
140.067 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
79.76 |
49.12 |
44.21 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
18.83
|
16.85 |
16.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
28.90
|
26.00 |
25.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
38.40
|
28.49 |
17.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.41
|
0.30 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.40 |
0.97 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.21
|
1.22 |
1.20 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was promoted by S C Khatau in December'83 in technical and financial
collaboration with
ECONOMIC OVERVIEW:
The Indian economy continued to be buoyant, holding its ground despite
high inflationary trend in food and vegetables in the recent past. Volatile
situation in some of the developed economies and the spiraling oil prices as a
fallout of
However, the domestic economy is today at a crucial juncture, balancing
between inflation, industrial growth and monetary policy tightening. The
Reserve Bank of
The Index of Industrial Production (IIP) numbers has slowed down over
the last few quarters, however, the Government is expected to show prudence in
it’s action to get this back on the growth path.
The monsoon, another factor responsible for macroeconomic parameters
influencing the demand and development is expected to be good helping the
agricultural growth to keep check on food prices and fighting the headline
inflation.
At the global level, surviving one of the deepest downturns, the
economic turnaround in some of the developed countries and the matured markets
has been rather quick demonstrating growth. However, the high level of sovereign
debt with no visible plans to recover from the situation in some western
countries remains a major cause of concern making the pace and shape of growth
some what uncertain.
RESULTS OF
OPERATIONS
Resonating with the economical growth, the Company achieved a top line
of Rs.817.300 millions during the year which is 46% higher than the previous
year. The domestic turnover recorded an appreciable growth of 54% over the
previous year reflecting on better performance of many of the industrial
segments the Company operates. The major segments which contribute to the
Company’s growth are Automotive, Engineering, Cutting Tools and Steel that have
had their positive impact on the Company’s Domestic Business. The Export sales
recorded a 17% growth during the year despite the slow industrial recovery in
many of the developed nations including UAE which is still to experience signs
of economic recovery.
In order to grow the business more aggressively as well as with
increased focus, the Company had classified its businesses under three
verticals- Super abrasives, Non-Super abrasives and International Business
during end of 2009-10 which has now started paying rich dividends. The Company
is putting more efforts towards strengthening the Non Super abrasives business
mainly comprising of machine tools and precision components. Like in past, it
would continue to commit adequate investments in Plant and Machinery,
Infrastructure and Human Resource.
During the year, the Company has successfully launched some of the new
machines like CNC Rotary Surface Grinding with vertical spindle, CNC Guide Roll
Grinder WGM3S, 6-axes CNC Notch Milling Machine, Profile Grinding with Video
Vision WDM 8V machine besides indigenously building Delapena Honing Machines.
Under Super abrasives, the Company continues to focus on the development
of new products and new applications which would provide base for future
growth. During the year, the Company has successfully introduced and tested
several new products including Vitrified C8N wheels for Auto Component and
Paper and Textile industry, High performance Electroplated CBN wheels for
Automotive industry, Metal Bond wheels for Cutting Tools Industry, precision
Dressing Rolls for Aerospace industry and Electroplated Diamond wheels for
Ceramic industry.
During the year, the Company has also formally launched Innovation
Management Process as one of the drivers for growth. It has initiated work on
two new projects namely Low cost Resin Bond wheels and Vitrified Diamond
Products besides strengthening its capability for brazed products. The Company
is one of the few companies in
FUTURE PROSPECTS:
Aligning the management practices and policies with the
• Continually improving product performance by use of technology and
superior manufacturing. While the existing products would continue to be
offered to the customers, new products and new application developments would
be the focus.
• Market penetration to increase the share with existing customers.
• Developing competitive edge by improving service levels and offering
value added services.
In order to achieve the objectives, the Company would strive hard to
focus on Innovation for both products and processes to ensure sustained growth
year on year. This would be well supported by deploying state-of-the-art
technologies and process automation in critical areas as required. Harnessing
the opportunities and potential in growing new industries such as Construction,
Infrastructure, Defense, Aerospace, Railways and Steel would continue to be key
focus for growth. Various initiatives such as trade shows, exhibitions in both
domestic as well as overseas, customer training and other value added services
are expected to strengthen the customer engagement levels with the Company.
The recent acquisition of Winterthur Technology Group (WTG) by the
SUBSIDIARY
COMPANIES:
Wendt Grinding
Technologies Limited,
lnspite of continued political odds and subdued industrial activities,
the Company’s wholly owned subsidiary in
In order to reinforce brand image and create increased recall, the
subsidiary Company participated in major Industrial Trade exhibitions,
conducted local advertising campaigns, technical seminars and prospected new
market through surveys in addition to organizing plant tours for its key
customers to showcase it’s capability. It also, added new industry specific
distributors as partners and increased it’s product basket, As a part of
business de-risking, it added solar glass panel manufacturers. The Company
continues to focus on opportunities in industries such as Glass, Automobile,
Steel, Auto parts. Engineering, Process, Wood, and Construction. Further, the
Company is also exploring opportunities to extend re-profiling business to
Wendt Middle
The second wholly owned subsidiary in Sharjah, Wendt Middle East FZE,
achieved a reasonable growth by dosing with an annual sale of AED 916 (000’s) (Rs.11.300
millions) despite continued economic slowdown and recent social unrest, The
loss for the year was AED 748 (000’s) (Rs.9.000 millions) with a total
accumulated loss of Rs.17.800 millions. The volatility in the primary economic
drivers such as Construction, Trading and Oil in the Middle East region further
contributed to achieving the business lower than the plan.
However, the Company has worked on many new initiatives and strategies
to minimize the impact of continued economic slowdown by focusing on increased
product range for Trading and concentrate on precision ground components.
Additionally, the Company is also exploring opportunities to extend
re-profiling, honing and grinding services to
RECOGNITIONS AND
AWARDS:
Recognition, Awards and accolades keeps the employees and the Company as
a whole motivated for achieving higher results. During the year the Company has
got the following awards.
Engineering Export
Promotion Council (EEPC) Award
This year yet again Engineering Export Promotion Council (EEPC)
Best Manufacturing
Award
The Company has received the Best Manufacturing Award and Certificate of
Recognition in the Machine Tools sector for Ranking No.1 under Top 500 SMB
category for 2008-09 following a survey conducted by the Centre for Monitoring
of Indian Economy (CMIE) in association with Industry 2.0 magazine for superior
manufacturing performance.
Quality Circle
Awards
At the National level, the Company’s employee team participated in
Quality Circle competition and has been awarded for SGA with “Distinguished
Category” at the national convention NCQC 2010 organized by QCFI at
Vishakhapatnam.
Like wise, at the Regional level, teams from the Company won many
quality related awards such as Small Group Activities (SGA), Kaizen, Quality
Quiz and 5S from participation in CCQC 2010 [Quality Circle Competitions]
organized by QCFI, Bangalore Chapter.
CII Work Skill
Competition
At the Regional level, one of the employees of the Company was ranked 2nd
in the Turner Trade Competition organized by CII and was advanced to the
National Level.
CRISIL Independent
Equity Research (IER) Rating
The Company has been recognized by NSE as one of the few listed
companies in
Cufest 2010
Employees of the Company participated in Group- level Quality
competitions “Cufest 2010” [Quality Festival of CUMI], and won awards for Quality
Logo, Poster and Idea King events.
MGTC Cultural Meet
Women Employees of the Company participated in the cultural meet
organized by Murugappa Group and won awards for individual talents.
GENERAL
PERFORMANCE REVIEW:
During the year 2010-11, the Indian economy continued its momentum by
maintaining the tempo ending with a reasonable GDP growth rate of around 8.3°h
in the midst of spiraling commodity prices. Despite the inflationary trend in
foods, the economy was not out of the growth path. Accelerated investments in
Infrastructure, rapid rise in exports and growth in industrial out put helped
the growth.
In order to increase customer base, provide prompt services and ensure
sustained growth in the domestic arena, the Company created two additional
regions namely Jaipur and Nashik during the year. This move will help the
Company to complement its market presence and competitive edge.
While the Company continues to offer products and services to the
existing industries such as Automotive, Cutting Tool, Engineering, Steel,
Ferrite, Glass, Ceramics, Paper and Textile, it expanded the industry base to
Railways, Aerospace, Construction, Infrastructure and Oil and Gas during the
year. This is in line with the Company’s underlying core objective of
constantly looking for opportunities in growth sectors which is vital for the
success. As a result, the comprehensive product range particularly in the Super
abrasives business has become still more inclusive in terms of applications and
product basket.
In order to bring more focus and direction to address sustained growth
year-on-year, the Company had formed the Strategic Intent followed by
identification of Strategic Initiatives and deployment of Product Management
approach few years back. To strengthen and support this, in the year 2009-10,
the Company re-classified the businesses into three verticals namely Super
abrasives. Non-Super abrasives and International Business. The above
initiatives and underlying actions have complemented well and have started
yielding results from this financial year 2010-11.
ECONOMIC OUTLOOK:
While there is optimism shown by continuing fiscal expansion plans and
resultant demand growth, against the earlier government projection of 9%, the
Indian GDP growth is now expected to be around 8.2% in the coming year. The
Indian economy however has displayed remarkable resilience by engineering a
substantial increase in domestic demand to compensate for the relatively lower
export growth. This clearly indicates that more focus is towards driving higher
domestic consumption and investments.
The major Industrial sectors which are expected to support the growth
projections would be Automotive, Steel, Engineering, Infrastructure and
Construction, Fertilizer and Cement during the coming year. Sizeable investments
and expansion plans in Steel. Automobile, Auto-component industries are
expected to take advantage of the growth opportunities and growing domestic
demands. The Indian auto sector has been experiencing robust growth during last
two fiscals notwithstanding input material and fuel price hikes. This industry
has closed the year with a growth of around 29% mainly driven by improved
market sentiments, technological innovations, improved economic conditions, new
product launches and consumer confidence in income security as well as relaxed
policies by the Government for vehicle financing. The major contributors for
this growth have been small cars with around 3 Million cars and Commercial
vehicles. The Company expects a slightly moderated growth of around 12-15% in
the coming year as well in view of hardening of interest rates and rising
commodity prices. On the same note, the auto component segment is also expected
to reflect the trend with an estimated growth of 16-18% on account of OEM
demand and planned investments by major component manufacturers.
Promotion of Infrastructure development, construction and housing sector
has been one of the main agendas of the Government supported with various
initiatives. Consequently, the performance of Indian steel industry has been
better than the global average growth rate of 7-8% during the year achieving a
growth of 9.5-10% despite the rise in input raw material prices. During the
coming year, the steel industry is expected to maintain the upbeat due to
continued planned Capex spend by major players, setting up of new plants and
low per capita steel consumption as well as demand from major users like
automotive industry.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Company is the supplier of Super abrasives tooling to a wide
spectrum of industry and its growth is greatly dependent on the performance of
the industry. Since the Company caters to the requirement of Automobile, Auto
Components, Engineering and the related industry which had a positive growth,
the Company has mirrored the same positive trend posting an impressive
performance during the year 2010-2011.
The revival in domestic industrial activities resulting in higher demand
for Super abrasive products aided to achieve a much better performance.
Recognizing this, the Company continued to focus its efforts on seizing the
opportunities and has been working on various strategies to widen the product
portfolio while also working on reducing dependency of the business on specific
industries. As a result, several newer applications for various emerging
industries and markets have been identified with industries like Aeronautical,
Construction, Petroleum, Power and Glass.
BUSINESS OUTLOOK:
The Indian economy growth is expected to grow at 8.2% which is slightly
downgraded from earlier projection of 9.0% as a result of continued
inflationary trends triggered by increase in commodity prices, increasing raw
material prices and interest rates affecting the liquidity. On the above
background, the Company will continue to focus on retaining its strong domestic
market position by virtue of its rich product portfolio, market reach and
penetration. The Company will also continue to intensify its efforts to further
improve its market presence and address competition in the domestic front.
Continued focus on product developments and applications, introduction
of new products and concentrate on growth industries for Super abrasives will
play a major role for growth of the Company in the coming year. More over,
improved service levels as also initiatives for better engagement levels with
customers will ensure superior value proposition in the market. In order to
achieve aggressive growth in the Non-Super abrasives business, the Company has
planned new introductions as well as product extensions in grinding machines,
Delapena Honing machines and machines for Steel Industry as well as development
of precision components for new customers. The above plans will be adequately
supported by earmarking necessary investments in building, infrastructure,
machinery and equipment for reinforcement of customer confidence on the
Company.
The Company will also aggressively pursue opportunities in the overseas
market which includes both Wendt group locations and Non-group regions for
growth of Super abrasives as well as Non-Super abrasive products.
The relatively newly established 100% owned subsidiary, Wendt Middle
East FZE at Sharjah, which has been in its infancy, has started showing improved
results despite the socio-economical disturbances in the region. It has renewed
its focus on more of trading products and services in the UAE and neighboring
market especially for Oil and Gas and General Engineering industry. With this
change on focus and strategy, the Company expects to gain more traction during
the coming year.
The other subsidiary Company, Wendt Grinding Technologies Limited in
Financial
Performance with respect to Operational Performance
The Operating profit and Contribution of the Company has recorded
reasonable growth during the year due to improved operational efficiency and
better product. mix. The availability of reliable information and effective
customer data, Knowledge management such as drawings, specification, data sheet
through the SAP ERP System, helped the Company to improve its response time and
service levels. Thanks for the ERP system which helped the Company to supply
the right product at the right time with right specifications there by
providing value addition to the customer.
CONTINGENT LIABILITY NOT PROVIDED FOR:
|
Particulars |
31.03.2011 (Rs.
in millions) |
|
a) Disputed
income tax demands under appeal The company has received
favourable orders from the Commissioner of Income Tax (Appeals) (CIT-A) in
respect of two assessment years, however the department is in appeal with the
Income Tax Appellate Tribunal. In respect of one assessment year, the Company
has received a favourable order from CIT-A but the order giving effect to the
CIT-A order is yet to be received by the Company. The said amounts
has been arrived at based on the assessment order received from the relevant
authority. Outflows, if any, arising out of this claim would depend on the
outcome of the decision and the Company's rights for further appeal before
the Judiciary. |
5.932 |
|
b) Guarantees given by Company's Bankers |
18.551 |
|
c) Bills Discounted |
9.065 |
FIXED ASSETS:
Tangible Assets
v Land
v Building
v Plant and Machinery
v Furniture, Fixture and Equipments
v Vehicles
Intangible Assets:
v Technical Knowhow
v ERP-Software
WEBSITE DETAILS:
Subject was
incorporated in 1980 as a Joint Venture between Wendt GmbH and The House of Khataus.
In 1991, Carborundum Universal Limited (CUMI), a US$ 3.0 Billion Murugappa
Group Company acquired the Khatau’s stake in the business. Since then subject
has been a 40 - 40 Joint Venture between Wendt GmbH and CUMI. The public holds
the balance 20% equity.
Wendt
“Wendt
Wendt
While Wendt GmbH-the
pioneers in Super abrasive tooling solutions and high precision grinding
machines for Insert grinding and Steel industries for over 8 decades, the 100
year Murugappa Group is the market leader in diverse businesses such as
Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs,
Fertilizers, Plantations, Bio-products and Nutraceuticals having 29 companies
with manufacturing facilities spread across 13 states in India. The group is
among the fastest growing diversified business houses in
Wendt India known
for its diversified and impressive Product Portfolio , Innovation strategy,
strong Product Development, Personalized technical services and providing
Technology Solutions in Grinding to its 750+ direct customers in the domestic
market.
Wendt
Exports constitute
over 30% of Wendt
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.62.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
63 |
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.