MIRA
INFORM REPORT
|
Report Date : |
26.07.2011 |
IDENTIFICATION DETAILS
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Name : |
GABRIEL INDIA LIMITED |
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Registered
Office : |
29th Milestone, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.02.1961 |
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Com. Reg. No.: |
11-015735 |
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Capital Investment
/ Paid-up Capital : |
Rs.71.850
Millions |
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CIN No.: [Company Identification
No.] |
L34101PN1961PLC015735 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEG04598G |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturer of Shock Absorbers, Struts, Front Forks and Engine
Bearings. It is also the principal supplier to both the OE and Aftermarket
segments with a sizeable presence in the overseas markets. |
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No. of Employees
: |
1243 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 7462000 |
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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 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) |
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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 : |
29th Milestone, |
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Tel. No.: |
91-20-24101931–34/ 261091/ 098/ 012 91-2135-610700/ 610757 |
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Fax No.: |
91-20-24101935 / 8018 / 561935 91-2135-261200 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
1, Sri Aurobindo Marg, |
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Corporate Office 2 : |
Magnet House, N. M. Marg, Ballard Estate, Mumbai – 400
038, |
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Sales Office : |
10, Prasad Chambers, Opera House, Mumbai - 400 004, |
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Factory 2 : |
B-2 MIDC, Ambad Industrail Area, Nashik - 422 010, |
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Factory 3 : |
5, Industrial
Area No. 3, |
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Factory 4 : |
Plot No. 5, Sector II, Parwanoo - 173 220, |
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Factory 5 : |
52-55, S.No.
102/3 -106 (PT), Sipcot, Phase – II, |
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Factory 6 : |
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Deep C.
Anand |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Deepak
Chopra |
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Designation : |
Chairman |
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Name : |
Mr. Arvind Walia |
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Designation : |
Managing
Director |
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Name : |
Mr. Manoj
Kolhatkar |
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Designation : |
Joint Managing
Director |
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Date of Birth/
Age : |
29.07.1968 |
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Qualification : |
B.E., DBM |
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Expertise in
functional areas : |
General
Management |
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Name : |
Mr. H.R. Prasad |
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Designation : |
Director |
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Date of Birth/
Age : |
01.11.1934 |
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Qualification : |
BE, MS ( MIT) |
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Expertise in specific
functional areas : |
General
Management |
|
List of other
Indian Companies in which Directorships held : |
v
Fortune Financial Services India Limited v
UNI Deritend Limited v
UNI Abex Alloy Products Limited v Prama
Corporation |
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Name : |
Mr. Russi Jal
Taraporevala |
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Designation : |
Director |
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Name : |
Mr. Rajeev
Vasudeva |
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Designation : |
Director |
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Date of Birth/
Age : |
19.07.1959 |
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Qualification : |
CA, MBA and LLB |
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Expertise in
specific functional areas : |
Specializing in
recruitment and assessment of CEO’s, COO’s, and critical leadership talent in
the technology and private equity sectors |
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Date of
Appointment : |
12.11.2008 |
|
List of other
Companies in which Directorships held : |
v
Egon Zehnder International Private Limited v
Egon Zehnder International Research Services v
Egon Zehnder International AG |
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Name : |
Mr. Gurdeep
Singh |
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Designation : |
Director |
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Date of Birth/
Age : |
23.07.1944 |
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Qualification : |
B. Tech in
Chemical Engineering |
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Expertise in
specific functional areas : |
Process
implementation, Human resources and Industrial relation, Business Development
and Technical Support |
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Date of
Appointment : |
28.07.2009 |
|
List of other
Companies in which Directorships held: |
v Blue Star
Limited v Halonix Limited v Tecnova India
Limited v Everest Kanto
Cylinder Limited v Gateway Rail
Freight Limited |
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Name : |
Mr. Mahendra
Goyal |
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Designation : |
Director |
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Name : |
Mr. John Crable |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Alok Agarwal |
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Designation : |
Vice President Finance |
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Name : |
Mr. Anshul Bhargava |
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Designation : |
Company Secretary |
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Core Management Team : |
v
Mr. Amitabh Srivastava v
Mr. Atul Jaggi v
Mr. A.V. Ramanamurthy v
Mr. C.S. Subramanium v
Mr. Diwakar Bhatt v
Nalin Jaini v
Mr. Rajeev B. Joshi v
Mr. Rajeev Gera v
Mr. Rajendra Abhange v
S. Sengupta v
Mr. Shridhar Nanal v
Mr. Sudesh Deshpande |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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3,224,690 |
4.49 |
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35,952,734 |
50.06 |
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39,177,424 |
54.55 |
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Total shareholding of Promoter and Promoter Group (A) |
39,177,424 |
54.55 |
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(B) Public Shareholding |
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|
8,410 |
0.01 |
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|
67,150 |
0.09 |
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|
250 |
- |
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250,000 |
0.35 |
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|
500 |
- |
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326,310 |
0.45 |
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5,318,920 |
7.41 |
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16,006,726 |
22.29 |
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6,494,953 |
9.04 |
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4,497,637 |
6.26 |
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13,750 |
0.02 |
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3,968,680 |
5.53 |
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451,549 |
0.63 |
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48,658 |
0.07 |
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15,000 |
0.02 |
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32,318,236 |
45.00 |
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Total Public shareholding (B) |
32,644,546 |
45.45 |
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Total (A)+(B) |
71,821,970 |
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) |
71,821,970 |
- |
(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 Shock Absorbers, Struts, Front Forks and Engine Bearings. It is also the principal supplier to both the OE and Aftermarket segments with a sizeable presence in the overseas markets. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
Licensed
Capacity*, Installed Capacity and Actual Production
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Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
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Shock Absorbers and Struts |
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Nos. |
21,346,600 |
16,097,489 |
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Front Forks |
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Nos. |
2,685,000 |
1,755,256 |
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Castings |
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Nos. |
600,000 |
546,203** |
Installed capacity
is as per a certificate issued by the Management and is not verified by the
Auditors being a Technical matter.
* Licensing
requirement for Automotive parts, including the Company's products, have been
dispensed with effective July 25, 1991.
** Actual production includes Castings for two wheelers captively
consumed 532,424 Nos.
GENERAL INFORMATION
|
Customers : |
v
Tata Motors v
Hyundai v
Mahindra and Mahindra v
v
v
Ford v
General Motors v
Force Motors v
Mahindra Renault v
Fiat v
Mitsubishi v
Bajaj (Scooters and Motorcycles) v
Yamaha (Motorcycles) v
Kinetic Motors v
Honda Motor Cycles and Scooters v
TVS (Scooters and Motorcycles) v
TVS (Scooters and Motorcycles) v
Bajaj Auto v
Ashok Leyland v
Eicher Motors v
Swaraj Mazda v
Kinetic Engineering |
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No. of Employees : |
1243 (Approximately) |
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Bankers : |
v ABN Amro Bank v Axis Bank v
Bank of v ICICI Bank v IndusInd Bank v ING Vysya Bank v Kotak Mahindra Bank v Standard Chartered Bank v
State Bank of v Punjab National Bank v Citi Bank |
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Facilities : |
Notes: v a) The Secured
Term Loans amounting to Rs.394.970 millions (Previous Year Rs.404.970
millions) from banks are secured as follows: i) Rs. 199.970
millions (Previous year Rs.199.970 millions) from Bank of India is secured by
first charge on specified movable plant and machinery installed at Khandsa
plant and Chakan plant and collaterally secured by first and exclusive charge
on the immovable properties situated at Hosur plant. ii) Rs.45.000
millions (Previous year 75.000 millions) from ING Vysya Bank, secured by
equitable mortgage of Land and Building situated at Ambad plant. iii) Rs.150.00
millions (Previous year Rs. NIL) from Kotak Mahindra Bank secured by first
Pari Passu charge over the movable fixed assets both present and future and
exclusive charge by way of equitable mortgage over the immovable properties
situated at Chakan plant. iv) Rs. NIL
(Previous year Rs.130.000 millions) from State Bank of (b) Buyer's
Import Credit for Capital Goods facility Rs.60.210 millions (Previous year
NIL) is secured by exclusive charge on the Dyna Chrome plating machine and
all related equipment. (c) The Working capital
facilities amounting to Rs.658.550 millions (Previous year Rs.640.750
millions) are secured by hypothecation of stocks, book debts and other
current assets of the Company. v a) Secured Term
Loans from banks due for repayment within a year is Rs.180.030 millions
(Previous year Rs.171.110 millions). (b) Buyer's
Import Credit for Capital Goods due for repayment within a year is Rs. NIL
(Previous Year NIL) (c) Fixed
deposits due for repayment within a year Rs.162.100 millions (previous year
Rs.30.040 millions) (d) Sales Tax
Deferral loan due for repayment within a year is Rs.46.130 millions (previous
year Rs.24.980 millions). (e) Other Loans
and advances due for repayment within a year is Rs.1.250 millions (Previous
year Rs.1.560 millions). v Estimated amount
of contracts remaining to be executed on capital account and not provided for
are Rs.337.000 millions (Previous year Rs.127.460 millions). v During the year,
the Company has availed a long term foreign currency buyers credit
("foreign currency loan") amounting to Euro 1,013,956 with interest
rate linked to Euribor. In order to hedge the currency risk and interest rate
risk, the Company has entered into SWAP and forward contracts with its
bankers with terms similar to the original foreign currency loan. Pursuant to
the hedging of the foreign currency and interest rate risk, the foreign
currency loan has been recorded as a fixed Indian currency loan. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountants |
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Address : |
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Memberships : |
Confederation of Indian Industry |
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Holding Company : |
Asia Investment Private Limited, March 25, 2011 |
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Fellow Subsidiaries : |
v
Anand Automotive Limited v
Anchemco Limited v
Perfect Circle India Limited v
Victor Gaskets India Limited v
Chang Yun India Limited |
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Associates : |
Federal-Mogul Bearings India Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
140000000 |
Equity Shares |
Re.1/- each |
Rs.140.000 Millions |
|
100000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
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Total |
|
Rs.150.000
Millions |
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
71821970 |
Equity Shares |
Re.1/- each |
Rs.71.820
Millions |
|
|
Add: Share Forfeiture |
|
Rs.0.030
Million |
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Total |
|
Rs.71.850 Millions |
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Notes:
1. Out of above
35,952,734 equity shares were held by Asia Investments Private Limited. Asia Investments
Private Limited increased the shareholding in the Company to 50.60% on March
25, 2011. From that date the Asia Investments Private Limited has become the
Holding Company.
2. In earlier
years:
(a) 1,235,000
Equity Shares of Rs.10 each allotted as fully paid up by way of Bonus Shares by
capitalization of Reserves
(b) 1,733,996
Equity Shares of Rs.10 each at a premium of Rs.20 each allotted as fully paid
up on conversion of Partly Convertible Debentures on November 30, 1991
(c) 2,675,198
Equity Shares of Rs. 10 each at a premium of Rs.115 each allotted as fully paid
up on conversion of Partly convertible Debentures on November 01, 1996
(d) The Company
had sub divided its every equity share of Rs.10 each (fully paid up) into 10
(Ten) equity shares of Re.1 (One) each (fully paid up) based on the approval of
the shareholders in the Extraordinary General Meeting held on 16th
December 2005.
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 |
71.850 |
71.850 |
71.850 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1793.530 |
1420.870 |
1251.900 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1865.380 |
1492.720 |
1323.750 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1113.730 |
1045.720 |
1275.230 |
|
|
2] Unsecured Loans |
377.270 |
442.380 |
293.940 |
|
|
TOTAL BORROWING |
1491.000 |
1488.100 |
1569.170 |
|
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DEFERRED TAX LIABILITIES |
156.810 |
141.000 |
105.800 |
|
|
|
|
|
|
|
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TOTAL |
3513.190 |
3121.820 |
2998.720 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
2100.400 |
1843.870 |
1755.600 |
|
|
Capital work-in-progress |
196.830 |
121.400 |
155.730 |
|
|
|
|
|
|
|
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INVESTMENT |
133.320 |
133.320 |
133.310 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1017.710
|
799.580
|
672.160 |
|
|
Sundry Debtors |
1124.970
|
773.080
|
822.730 |
|
|
Cash & Bank Balances |
37.310
|
134.090
|
90.830 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
741.370
|
633.340
|
604.990 |
|
Total
Current Assets |
2921.360
|
2340.090
|
2190.710 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1550.250
|
1052.410
|
1047.520 |
|
|
Other Current Liabilities |
125.670
|
142.070
|
67.990 |
|
|
Provisions |
162.800
|
122.380
|
121.120 |
|
Total
Current Liabilities |
1838.720
|
1316.860
|
1236.630 |
|
|
Net Current Assets |
1082.640
|
1023.230
|
954.080 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3513.190 |
3121.820 |
2998.720 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
9616.960 |
6973.990 |
5202.460 |
|
|
|
Other Income |
181.770 |
128.880 |
175.690 |
|
|
|
TOTAL (A) |
9798.730 |
7102.870 |
5378.150 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Excise Duty |
4.120 |
4.050 |
4.310 |
|
|
|
Cost of Materials |
7124.890 |
5172.910 |
3924.410 |
|
|
|
Personnel Expenses |
695.580 |
469.150 |
415.360 |
|
|
|
Manufacturing, Administration, Selling and Distribution and Other
Expenses |
1001.000 |
754.760 |
645.710 |
|
|
|
TOTAL (B) |
8825.590 |
6400.870 |
4989.790 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
973.140 |
702.000 |
388.360 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
163.330 |
147.950 |
163.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
809.810 |
554.050 |
224.940 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
219.020 |
201.830 |
152.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
590.790 |
352.220 |
72.330 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
120.170 |
111.820 |
16.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
470.620 |
240.400 |
56.100 |
|
|
|
|
|
|
|
|
|
Less |
Prior Period Items (Net of Tax) |
17.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
892.050 |
747.120 |
755.450 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend – Interim |
21.550 |
21.550 |
0.000 |
|
|
|
Dividend – Proposed Final |
50.280 |
39.500 |
50.280 |
|
|
|
Dividend Tax |
11.930 |
10.380 |
8.540 |
|
|
|
General Reserve |
45.340 |
24.040 |
5.610 |
|
|
BALANCE CARRIED
TO THE B/S |
1216.370 |
892.050 |
747.120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
263.780 |
126.130 |
109.090 |
|
|
TOTAL EARNINGS |
263.780 |
126.130 |
109.090 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials
and
components |
1362.330 |
864.560 |
733.070 |
|
|
|
Stores |
46.380 |
24.120 |
16.140 |
|
|
|
Machinery Spares |
2.010 |
67.040 |
0.020 |
|
|
|
Capital Goods |
125.380 |
26.270 |
94.220 |
|
|
TOTAL IMPORTS |
1536.100 |
981.990 |
843.450 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.31 |
3.35 |
0.78 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.80
|
3.38
|
1.04
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.14
|
5.05
|
1.39
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.76
|
8.42
|
1.83
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.24
|
0.05
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.79
|
1.88
|
2.12
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.78
|
1.77
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Established in 1961 with the setting up of a Shock Absorber
plant at Mulund, Subject is the flagship company of the Anand group. It was
promoted in technical and financial collaboration with Gabriel Company, US
(20.81% stake). The company is a manufacturer of Ride control products i.e.
Shock Absorbers, McPherson Struts and Front Forks. The Ride control products
are produced in its plants located at Mulund,
COMPANY
HIGHLIGHTS:
v
2010-11 revenue grew by 38% over the previous year,
ahead of Industry growth of 27%.
v
EBITDA at Rs.973.000 Millions grew by 39%, PBT at
Rs.591.000 Millions by 68% and PAT at Rs.453.000 Millions by 89% over the
previous year.
v
Exports at Rs.292.000 Millions grew by 132% over
the previous year.
v
The Hosur Plant (for two wheeler products) recorded
a high growth rate of 41%, with sales touching INR 2800 Million. The facility
was recognized with the Best Supplier’ Award from TVS Motors Limited
v
The Nashik Facility was awarded the prestigious
‘BAL TPM Excellence Award’ by Bajaj Auto Limited
v
The DSIR (Department of Scientific and Industrial
Research) Ministry of Science andTechnology recognized the company’s
state-of-the-art R and D facility at Chakan, complimenting the company on its
thrust on driving Research and Development.
v
A special project initiated to modernize the Chkan
Plant with improved material flow, incorporating latest process technologies
including the ‘Dynachrome Automatic Plating System’ and ‘Water Based Painting
System’ was completed during the year.
v
The VSME (Visionary Leaders for Small and Medium
Enterprises) program launched in collaboration with JICA (Japan International
Cooperation Agency) and CII (Confederation of India Industries). The program is
specifically aimed at improving Quality and Productivity of critical long term
vendors and was successfully completed in Chakan, with a target to cover all
critical suppliers in the next 3 years across all Gabriel locations.
v
In House R and D efforts resulted in the successful
development of new products for new models of Two Wheeler for TVS, Honda,
Yamaha and Royal Enfleld.
v
The Company consolidated its position in all
segments of the Automotive Industry - Commercial Vehicles, Passenger Cars and
Two Wheelers (Acqusition of new business ensures sustenance of Market share in
forthcoming years).
COMPANY PROFILE:
Subject, a name in the Indian auto component industry offers the widest
range of Ride Control products in
A pioneer of Ride Control products in the country, ‘Gabriel’ is a renowned
brand synonymous with shock absorbers. Its products have established a strong
presence both in domestic OE as well as replacement markets. Gabriel India is a
provider of innovative and proprietary products and solutions that are the
company’s hallmark.
The flagship company of the Anand group, Gabriel commenced operations in
1961, with a single plant in Mulund, Mumbai, and has grown manifold since then
with six manufacturing facilities spread across the country today. (Pune,
Nashik, Hosur, Dewas, Khandsa, Parwanoo).
Gabriers manufacturing facilities spread across various locations in the
country ensure timely deliveries to customers while optimising the availability
of material. With a combined capacity of over 21 million Shock Absorbers,
Struts and 2.7 million Front Forks, these facilities cater to the requirements
of all segments of the market. making Gabriel the OEM supplier in the country
as also to the Defence, Railways and the Aftermarket segments in
Gabriel has three well equipped, high-tech R and D centres located at
Chakan, Hosur and Nashik to develop new products and carry out comprehensive
tests to optimize performance and enhance capability of its Ride Control
products. These facilities provide valuable
These extend to several areas including noise measurement, value
engineering, improving product quality by root cause analysis of customer
complaints, as well as cost reduction through localization efforts. These R and
D centres also provide customers with a facility to conduct Ride Tuning
exercises.
The ongoing support extended by its Collaborators helps the Company in
offering ‘requirement specific’ technology solutions to different international
OEMs of the Automotive Industry as well as to its Aftermarket and Export
customers.
The Company has a Technical collaboration with KYB Corporation,
INDIAN ECONOMY
During the year
2010-11 the Indian economy sustained its growth story of year 2009-10. Although
the world economy showed signs of recovery, the fast growth displayed by the
Indian economy was indicative of its inherent strength. The Indian economy grew
by 8.6% in 2010-11, a rate which was quite comparable to growth rate of
The Indian
automotive industry recorded the highest ever sales in 2010-11 with all
segments i.e. passenger cars, commercial vehicles and two-wheelers showing
strong growth. The automotive sector grew by 27% over the previous year. This
has made
Maruti Suzuki
India Limited alone sold more than 1.3 million units in the fiscal year. The
commercial vehicle segment grew by a robust 33% in this year riding on strong
growth of 26% last year. The two wheeler segment grew by 27% over last year’s
growth of 25%.
The new emission
norms, rising commodity prices especially oil prices and a possible hike in
interest rates would affect the industry. The industry is expected to
consolidate and grow overall by 15% in 2011-12 and beyond.
PERFORMANCE
The total sales at
Rs.9617.000 Millions, (Previous Year Rs.6974.000 Millions), registered a growth
of 38%, which is higher than the industry trend of 27%. While the Profit Before
Tax of Rs.591.000 Millions (Previous year Rs.352.000 Millions) recorded a
growth of 68%, the Profit After Tax of Rs.453.000 Millions (Previous Year
Rs.240.000 Millions) grew by 89%. As a result, the Earnings Per Share grew
significantly to Rs.6.31.
The restructuring
of the organization in terms of manpower and the various cost reduction measures
helped the Company improve its efficiency over the previous year. EBITDA for
the year was Rs.973.000 Millions (10.12% to net sales) against Rs.702.000
Millions (10.06% to net sales) in the previous year.
EXPORTS
The total exports
of the Company grew at 132% from Rs.126.000 Millions to Rs.292.000 Millions in
the current year. The growth was due to expansion of OE as well as exports for
replacement market.
After Market
exports recorded a growth of 32% in the current year. While there was substantial
improvement in market share in 2/3 wheeler segments in
Both OE and After Market exports will be the focus area for growth in
the coming years.
OPERATIONS
The company has
undertaken a significant facility restructuring exercise during the year which
included:
1. At Parwanoo: The Parwanoo Plant
has initiated in the year expansion plans for meeting higher demands all round.
The capacities for commercial vehicle business would be 3 Lac numbers per
month.
2. At Khandsa: A dedicated facility
for Maruti-Suzuki India Limited, had undergone expansion for meeting the
increased requirement from MSIL. The plating capacity was augmented to its full
potential and has also started supplies to MANDO Chennai for their requirements
of piston rods. Major initiatives were taken and continue to be planned for
productivity, quality and delivery improvements.
3. At Chakan: The layout of the
Plant has been changed to improve material flow. The new state of art plating
facility has been commissioned successfully and has eliminated lot of material
movement as also improved quality and reliability. Environment friendly water
base painting system has also been installed. All these activities have been
undertaken while the plant kept meeting the demands of OEM customers.
Casting Facility
The output has steadily increased during the year with improved quality
standards.
4. At Ambad: Plant received the
prestigious recognition of “BAL TPM Excellence Award” from its major customer
‘BAJAJ’. It received approvals from OEMs like Piaggio for export possibilities
to
5. At Hosur: Capacity
augmentation was undertaken to increase plant’s capacity to 1.5 lac front fork
per month and 4.5 Lac shox per month. The focus has been on quality and
productivity.
6. At Dewas: The plant is projected to become a major source for
exports for commercial vehicle products.
Technology Tie –up
The Company
continues its association with Technology partners KYB,
The Company has
evolved an in-house state of the art Research and Development facility at Chakan
which has design and development competency to meet the latest requirements of
the customers. This setup has been recognised by DSIR during the year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure
and Development
During the year
2010 -11 the economic development around the world was uncertain. While
the European and Western countries struggled with the aftermath of recession of
2009, Asian countries showed resilience with improved performance.
Within the overall
|
|
Vehicle Production during the year 2010 – 11 (In’000 Nos.) |
Growth over Previous Year % |
|
Passenger Vehicles |
2,987 |
27 |
|
Commercial Vehicle |
752 |
33 |
|
Two / Three Wheeler |
14,176 |
27 |
|
Overall growth |
-- |
27 |
Outlook
It is estimated
that after 2 successive high growth years, the ‘automotive industry’ is likely
to consolidate in the year 2011-12 at growth rate of 15%. This estimate factors
in influencing indices like inflation, rising interest rate, fuel cost, etc.
which affect the demand of automotive products.
In 2 Wheeler
segment incremental capacities of 3 million are likely to be created at an
estimated investment of Rs.20-24 billion over next 2 years. The commercial
vehicle industry is expected to grow at CAGR of 16-18% over the next 5 years
(2009-10 to 2014-15) on the back of sustained growth in the economy and an
improvement in industrial and agricultural production.
Keeping pace with
the industry, Company had continued with its capacity augmentation plans
investing Rs.550.000 millions for capacities and quality during 2010-11.
Company is planning to invest further Rs.1500.000 millions in next 2/3 years
for building capacities, quality improvement and R and D.
With a broad base
of customer’s portfolio and strong progress in all segments, the company is
confident of sustained growth in the immediate future, and tide over industries
short term turbulences, if any.
As volumes
increase, Company is reaching a critical mass enabling it to develop local
technologies comparable with world class technologies.
Performance of the Company
At net sales of
Rs. 9617 mill the Company recorded growth of 38% against last year growth of
34%. It outpaced the industry which grew at 27% in the year 2010-11.
Company
performance, segment wise, saw growth in the Passenger vehicles business at
25%, Commercial vehicles by 29%, Two wheeler Business by 47%, After market by
32% and Exports by 132% resulting in an overall growth of 38%.
(i) Two and Three
wheelers:
At growth rate of
47% the Company out performed the industry which grew at 27%. Company’s two
facilities at Hosur and
Presently, Company’s market share in this segment is estimated to be
20%.
(ii) Passenger
Vehicles:
The market share
estimated at 33%, is serviced by facilities at Khandsa and Chakan. The facility
at Khandsa, Gurgaon caters to Maruti Suzuki (the largest car manufacturer)
requirements of around 45%. During the year Company has successfully developed
validated product for Volkswagen for which SOP would be in June 2011 which
would be supplied from the facility at Chakan, Pune. Other supplies to
strategic applications like export to
(iii) Commercial
Vehicles:
The Company
continued its dominance in supply from Dewas plant to commercial vehicles at
market share exceeding 80%. With
the business already acquired and under development the Company is likely to
maintain its lead and dominance in this segment for future.
(iv) After Market
and Exports:
In the After
market, the Company recorded growth of 32%. To have sustainable strong presence
in the ‘after market’ the Company has broad based its product portfolio by
developing new part numbers. Presently within After Market domain, the Company
is servicing nearly all models of automobiles in
Starting from a
very negligible base 2 years back, Company recorded exports of around
Rs.292.000 millions which constitutes 3% of the net sales. Continuous thrust on
exports, directly and through partner channels is likely to result in strong
development of this market segment.
CONTINGENT
LIABILITIES ARE IN RESPECT OF:
|
Particulars |
31.03.2011 (Rs. in Million) |
|
(i) Bills discounted, Letters of Credit and Bank guarantees |
400.020 |
|
(ii) Income Tax,
Service Tax, Sales Tax and Excise duty
against which the Company is in appeal |
96.700 |
|
(iii) Claims not acknowledged as debts |
24.050 |
FIXED ASSETS:
Tangible Assets
v
v
v
Buildings
v
Plant and Machinery
v
Vehicles
v
Furniture and Fixtures
Intangible Assets
v
Computer Software
v
Technical Knowhow
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.44.42 |
|
|
1 |
Rs.72.49 |
|
Euro |
1 |
Rs.63.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
62 |
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.