%20LIMITED%20-%20143803%2006-Jun-2011_files/image002.jpg){kind=small}
1. Summary Information
|
|
|
Country |
|
|
Company Name |
|
Principal Name 1 |
Mr. Rajendra Mal Bafna |
|
Status |
Moderate |
Principal Name 2 |
Mr. Arun Kumar Mittal |
|
|
|
Registration # |
05-30370 |
|
Street Address |
87, |
||
|
Established Date |
23.09.1988 |
SIC Code |
-- |
|
Telephone# |
91-1274-249368/ 71 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-1274-249372 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Helical Springs |
|
|
# of employees |
200
(Approximately) |
Product Name 2 |
Coil Springs for Railways |
|
Paid up capital |
RS.
45,035,000/- |
Product Name 3 |
Other Springs |
|
Shareholders |
Promoters Shareholding – 44.48% Public Shareholding – 55.52% |
Banking |
HDFC Bank Limited |
|
Public Limited Corp. |
YES |
Business Period |
23 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B (30) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates |
|
Coventry Spring and Engineering Company Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
50,906,000 |
Current Liabilities |
58,186,000 |
|
Inventories |
36,874,000 |
Long-term Liabilities |
92,217,000 |
|
Fixed Assets |
69,795,000 |
Other Liabilities |
0 |
|
Deferred Assets |
8,852,000 |
Total Liabilities |
150,403,000 |
|
Invest& other Assets |
29,011,000 |
Retained Earnings |
0 |
|
|
|
Net Worth |
45,035,000 |
|
Total Assets |
195,438,000 |
Total Liab. & Equity |
195,438,000 |
|
Total Assets (Previous Year) |
198,338,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
324,009,000 |
Net Profit/ Loss |
1,137,000 |
|
Sales(Previous yr) |
323,910,000 |
Net Profit/
Loss(Prev.yr) |
(14,107,000) |
MIRA
INFORM REPORT
|
Report Date : |
06.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
87, KMNH – 8Vill Salawas, Post Sangwari, Rewari - 123401, Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
23.09.1988 |
|
|
|
|
Com. Reg. No.: |
05-30370 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 45.035 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999HR1988PLC030370 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturers of Parts and Accessories for Motor Vehicles and their
Engines. |
|
|
|
|
No. of Employees
: |
200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 180000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
87, KMNH – 8Vill Salawas, Post Sangwari, Rewari - 123401, |
|
Tel. No.: |
91-1274-249368/ 71 |
|
Fax No.: |
91-1274-249372 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative Office: |
209, Hans Bhawan, 1, Bahadur Shah Zafar Marg, New Delhi-110002, |
|
Tel. No.: |
91-11-23370390/ 23379986 |
|
Fax No.: |
91-11-23370621 |
DIRECTORS
As on 29.09.2010
|
Name : |
Mr. Rajendra Mal Bafna |
|
Designation : |
Whole time Director |
|
Address : |
|
|
Date of Birth/Age : |
23.06.1952 |
|
Date of Appointment : |
16.03.1996 |
|
|
|
|
Name : |
Mr. Arun Kumar Mittal |
|
Designation : |
Director |
|
Address : |
D 810, New Friends Colony, New Delhi-110065 |
|
Date of Birth/Age : |
30.06.1954 |
|
Date of Appointment : |
30.01.2002 |
|
|
|
|
Name : |
Mr. Narpat Raj Mahnot |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Audit Committee: |
|
|
|
|
|
Share Transfer and Investors’ Grievance: |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
156,300 |
3.47 |
|
|
1,849,030 |
41.02 |
|
|
2,005,330 |
44.48 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
2,005,330 |
44.48 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
300 |
0.01 |
|
|
300 |
0.01 |
|
|
|
|
|
|
404,156 |
8.97 |
|
|
|
|
|
|
1,432,853 |
31.78 |
|
|
630,542 |
13.99 |
|
|
34,819 |
0.77 |
|
|
3,200 |
0.07 |
|
|
6,300 |
0.14 |
|
|
5 |
- |
|
|
25,314 |
0.56 |
|
|
2,502,370 |
55.51 |
|
Total Public
shareholding (B) |
2,502,670 |
55.52 |
|
Total (A)+(B) |
4,508,000 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
4,508,000 |
- |
%20LIMITED%20-%20143803%2006-Jun-2011_files/image004.gif){kind=small}
(1) Indian%20LIMITED%20-%20143803%2006-Jun-2011_files/image005.gif){kind=small}
Individuals / Hindu Undivided Family%20LIMITED%20-%20143803%2006-Jun-2011_files/image006.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs. 0.100 Millions
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Parts and Accessories for Motor Vehicles and their
Engines. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Goods Manufactured and Turnover |
M.T. |
NA |
6000.000 |
3712.023 |
GENERAL INFORMATION
|
Customers : |
Maruti Suzuki v
Tata
Motors v
Sundaram
Clayton v
Bajaj
Tempo v
Alstom
Limited v
ABB
Limited v
BHEL v
Bombardier
Transportation v
Eicher
Tractors Limited v
Enexco
Limited v
Gerb
Vibration Limited v
Miltech
Industries Private Limited v
Minda
Impco Limited v
Pipe
Supports Indi Private Limited v
Railways |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
No. of Employees : |
200 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
SECURED LOAN: A) Term Loans from Financial Institutions are secured by first mortgage ranking pari-passu of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery, spares, tools and accessories, present and future subject to prior charge to be created in favour of the company's bankers on the stock of raw materials, semi-finished and finished goods, consumable stock and such movables as may be agreed by the lead institution for securing the working capital requirements. B) Lenders have at their option a right to convert the 20% of outstanding amount into fully paid equity shares, in the event of default by the Company in payment of principal and / or interest. C) The Company, in 1990 availed Term Loans of Rs. 92.567 Millions from a consortium of three financial institutions namely ICICI, IDBI and IFCI, with ICICI as the lead institution. Due to recession in the market and accumulated losses which were partly occasioned by high interest rates and partly by time over-run and cost over-run, and despite best efforts of the promoters and the management, the Company turned into a sick company and was referred to Board for Industrial and Financial Reconstruction (BIFR) vide Reference Case No. 197/97. A Rehabilitation Scheme/Package formulated and agreed upon by all the FIs was approved by the BIFR on 27.12.1999 where under the dues were freshly determined and fixed as Rs.117.800 Millions. The net worth of the Company turned positive and after considering the Balance Sheet for the year ended on 31st March, 2000, the BIFR closed the reference case on 4.10.2001. As per the package, one of the sources of finance to repay the FIs was working capital facilities. Since the Company was under RBI's defaulters list, no banks were willing to extend the required working capital limits. This was duly brought to the notice of the BIFR. However, despite the best efforts, the Company could not arrange the working capital limits thereby leading to delayed repayments to the Financial Institutions. In all, however, over the years, the Company made a total repayment of Rs. 128.413 Millions out which Rs.110.189 Millions was made under/after the BIFR Scheme to the consortium members. The major portion of this was paid to the lead institution, ICICI. As the Company did not have the details of amounts adjusted by and amongst members of the Consortium out of the various repayments made by it and since, ICICI had filed a winding-up petition in the High Court of Punjab and Haryana at Chandigarh on 8.10.2004 for recovery of Rs.32.993 Millions. the Company, after October 2005, preferred not to make any further payments to the FIs since the matter was sub-judice D) In 2005, the RBI released a Scheme / Guidelines for One-Time Settlement of loan accounts of Small and Medium Companies. Since our Company fulfilled the criteria for availing the benefits under the said ,Scheme, which is binding upon the banks and FIs, our Company re-calculated the payments made under the said Scheme, and after adjusting the amounts already paid to the consortium members, the dues towards the consortium came out to be Rs.0.262 Millions only. The Company accordingly made an application under the OTS Scheme to the FIs before the deadline of end March 2006 and offered to pay the said amount of Rs.0.262 Millions. However, the Financial Institutions did not settle the Company's matter under RBI's OTS Guidelines and demanded unreasonably high amounts In the meanwhile ICICI assigned its debts to Kotak
Mahindra Bank Ltd (KMBL) on 25.04.2005. The Company was constrained to file
Civil Suit No. 1569/2006 in Delhi High Court in August 2006 against ICICI,
IDBI, IFCI and KMBL for declaring that RBI circulars in question are
applicable to the Settlement of NPA dues of the Company and that in
consequence thereto, the Company is liable to pay only Rs.0.262 Millions to
the consortium and to restrain each of the FIs from taking any coercive steps
for recovery against the Company till the judicial determination of alleged
dues by the Hon'ble Court. The said suit was disposed with the liberty to the
Company to take all possible defences if and when any legal proceedings are
resorted by the FIs. The Company then filed Inter-Pleader suit offering to
deposit the said amount in the court, which Was disposed off on 10.05.2007,
in view of the filing of the application by KMBL on 23.01.2007 in the Debts
Recovery Tribunal-ll (DRT-II), E) In 2008, IFCI and IDBI are stated to have assigned their loan accounts to Dhir and Dhir Asset Reconstruction and Securitization Company Limited (D and DARSCL) for Rs.3,04,00,000 and Rs. 4,11,50,000 respectively D and DARSCL filed an application in DRT-I, D and DARSCL also issued notice under Section 13(2) of SARFAESI Act demanding an amount of Rs. 1444.660 Millions against dues calculated on both IFCI and IDBI debts. The same was duly replied to by the Company, raising vital questions of fact and law. The winding-Up petition which was filed by ICICI on 08.10.2004 in the High Court of Punjab and Haryana at Chandgarh, was admitted on 26.05.2005 and the Company judge in his order dated 29.05.2009 directed for advertisement to be issued as factum of admission which was published on 22.07.2009. On 29.07.2009 D and DARSCL filed an application u/s 14 of SARFAESI Act with Dy. Commissioner, Rewari in attempt to take possession of the Company's assets. However, the High Court of Punjab and Haryana at Meanwhite the DRT-II imposed a cost of Rs. 0.002 Millions on Kotak Bank on 11.12.2009 for not filling their response to our reply and further imposed a cost of Rs. 0.025 Millions on 01.02.2010 on ICICI Bank for not furnishing the details of the payments received by them from our Company. An application for directing the lenders to calculate and settle our dues as per OTS guidelines of RBI as per the judgement of Supreme Court in Sardar Associates, case has been filled in DRT-I which is pending. The Company is hopeful that in view of Supreme Court's judgement, the liability would be settled as per the RBI guidelines, by which our liability would come to Rs. 0.262 Millions only. Alchemist Assets Reconstruction Company Limited (formerly known as Dhir and Dhir Assets Reconstruction and Securitization Company Limited) has sent letters on 05.05.2010 to seven customers of the Company for stopping payments of purchase consideration of goods purchased from the Company in breach of the High Court order dated 21.08.2009. In reply to this the Company has filed a contempt of Court petition on 27.05.2010. The matter is still pending in the Court. F) Loan from HDFC Bank Ltd., against hypothecation of motor cars. G) Loan from Maruti Suzuki India Ltd. against hypothecation of motor cars. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountant |
|
Address : |
401-408, Pragati House, 47-48, |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 29.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
|
|
|
|
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4508000 |
Equity Shares |
Rs.10/- each |
Rs.45.080
millions |
|
Less: |
Allotment Money in Arrears (Unreconciled) |
|
Rs. 0.045
Millions |
|
|
Total |
|
Rs. 45.035 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
45.035 |
45.035 |
45.035 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
45.035 |
45.035 |
45.035 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
92.217 |
94.259 |
95.967 |
|
|
2] Unsecured Loans |
0.000 |
0.022 |
1.321 |
|
|
TOTAL BORROWING |
92.217 |
94.281 |
97.288 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
137.252 |
139.316 |
142.323 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
69.795 |
77.373 |
85.863 |
|
|
Capital work-in-progress |
4.379 |
5.387 |
2.503 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
8.852 |
10.968 |
3.812 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
36.874
|
18.239 |
20.362
|
|
|
Sundry Debtors |
38.625
|
44.192 |
53.229
|
|
|
Cash & Bank Balances |
3.811
|
0.427 |
0.957
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
8.470
|
15.982 |
29.006
|
|
Total
Current Assets |
87.780
|
78.840 |
103.554 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000
|
0.000 |
0.000 |
|
|
Other Current Liabilities |
48.275
|
41.598 |
65.071 |
|
|
Provisions |
9.911
|
17.424 |
0.000 |
|
Total
Current Liabilities |
58.186
|
59.022 |
65.071 |
|
|
Net Current Assets |
29.594
|
19.818 |
38.483 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
24.632 |
25.770 |
11.662 |
|
|
|
|
|
|
|
|
TOTAL |
137.252 |
139.316 |
142.323 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
324.009 |
323.910 |
356.271 |
|
|
|
Other Income |
2.877 |
4.663 |
4.029 |
|
|
|
TOTAL (A) |
326.886 |
328.573 |
360.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/ Decrease in Stocks |
(3.021) |
1.303 |
(2.729) |
|
|
|
Material and Components Consumed |
194.817 |
202.189 |
199.245 |
|
|
|
Employment Expenses |
34.343 |
36.947 |
38.862 |
|
|
|
Manufacturing Expenses |
56.975 |
53.653 |
77.858 |
|
|
|
Selling, Administrative and Other Expenses |
32.600 |
46.837 |
41.918 |
|
|
|
TOTAL (B) |
315.714 |
340.929 |
355.154 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11.172 |
(12.356) |
5.146 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.609 |
0.952 |
1.031 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10.563 |
(13.308) |
4.115 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7.310 |
7.537 |
23.197 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3.253 |
(20.845) |
(19.082) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
2.116 |
(6.738) |
(4.307) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1.137 |
(14.107) |
(14.775) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(25.770) |
(11.663) |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(24.632) |
(25.770) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
0.585 |
29.005 |
48.299 |
|
|
TOTAL EARNINGS |
0.585 |
29.005 |
48.299 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
2.253 |
9.867 |
|
|
|
Stores & Spares |
0.185 |
0.452 |
0.657 |
|
|
|
Capital Goods |
0.000 |
5.387 |
0.312 |
|
|
TOTAL IMPORTS |
0.185 |
8.092 |
10.836 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.25 |
(3.13) |
(3.28) |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
30.06.2010 (1ST
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
31.03.2011 (4th
Quarter) |
|
|
|
|
|
|
|
Sales Turnover |
91.600 |
104.600 |
108.200 |
107.600 |
|
Other Income |
-- |
0.300 |
-- |
0.200 |
|
Total Income |
91.600 |
104.900 |
108.300 |
107.800 |
|
Total Expenses |
89.700 |
102.200 |
104.900 |
102.100 |
|
Operating Profit |
1.900 |
2.400 |
3.300 |
5.500 |
|
Profit On |
-- |
-- |
-- |
-- |
|
Profit On |
-- |
-- |
-- |
-- |
|
Gain/Loss On Foreign Exchange |
-- |
-- |
-- |
-- |
|
VRS Adjustment |
-- |
-- |
-- |
-- |
|
Other Extraordinary
Income/Expenses |
-- |
-- |
-- |
-- |
|
Total Extraordinary
Income/Expenses |
-- |
-- |
-- |
-- |
|
Tax On Extraordinary Items |
-- |
-- |
-- |
-- |
|
Net Extra
Ordinary Income/Expenses |
-- |
-- |
-- |
-- |
|
Gross Profit |
1.900 |
2.700 |
3.300 |
5.700 |
|
Interest |
0.100 |
0.200 |
0.100 |
0.100 |
|
PBDT |
1.900 |
2.500 |
3.300 |
5.700 |
|
Depreciation |
1.800 |
1.800 |
1.800 |
1.800 |
|
Depreciation On Revaluation Of
Assets |
-- |
-- |
-- |
-- |
|
PBT |
0.100 |
0.700 |
1.500 |
3.900 |
|
Tax |
-- |
-- |
0.700 |
1.100 |
|
Net Profit |
0.100 |
0.700 |
0.800 |
2.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.35
|
(4.29) |
(4.10) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.00
|
(6.43) |
(5.36) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.06
|
(9.03) |
(7.80) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
(0.46) |
((0.42) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.34
|
3.40 |
3.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.51
|
1.33 |
1.59 |
LOCAL AGENCY FURTHER INFORMATION
Contingent
Liabilities Provided For:
|
Particulars |
31.03.2010 Rs.
In Millions |
31.03.2009 Rs.
In Millions |
|
Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advance) |
3.948 |
3.948 |
Operations:
During the year ended 31st March 2010, the Gross Sales of the Company increased by marginally about 1% amounting to Rs. 329.907 Millions. Profit before Interest, Depreciation and Taxes was Rs. 11.171 Millions against a loss of Rs. 12.356 Millions and net Profit was at Rs 1.137 Millions compared with the loss of Rs. 14.108 Millions for the preceding year.
Due to uncertainty of the Court Cases against the Company, the performance for the first 7 to 8 months was very much below expectations and behind that of the previous year. However on 21st August 2009, The Punjab and Haryana High Court, Chandigarh delivered a stay against the Asset Recovery Company from taking possession of the Company. This resulted as a moral booster to all the employees of the Company, and from end November 2009, the performance of the Company improved drastically which enabled it to out-do the overall performance of preceding year.
BUSINESS OVERVIEW
The Company is a leading manufacturer of Auto Suspension
Springs and is one of the leading market players in springs for other
Industrial Applications. Business from the Auto Suspension Springs accounted
for more than 90% of the total turnover. As
Although the Company performed better than the previous year in terms of better production, the sales did not show much improvement due to pressures on the selling price and increase in the cost of raw materials over the past one year. Due to capacity constraints and pending litigation cases in the courts, the Company has not only been losing market shares but also been losing great opportunities.
|
Category |
Industry Sales (‘000’ nos.) |
Heavy Coil Springs (‘000’ nos.) |
Company Share (%) |
|||||
|
2009-10 |
2008-09 |
% growth |
2009-10 |
2008-09 |
% growth |
2009-10 |
2008-09 |
|
|
Passenger Vehicles |
2383 |
1851 |
28.7% |
1758 |
1641 |
7.1% |
25% |
31% |
|
M & H Comm. Vehicles |
197 |
160 |
23.01% |
154 |
156 |
-0.7% |
29% |
35% |
|
Total |
2580 |
2011 |
28.3% |
1913 |
1797 |
6.5% |
|
|
INDUSTRY STRUCTURE
& DEVELOPMENT
As
With
COMPANY PERFORMANCE
a)
Existing
Products:
The Company is having a strong presence in the Mini and Compact Passenger Cars segment as its main customer, Maruti Suzuki has 8 models in this segment in comparison to its competitors. There has been suprising growth in the newly launched MPV the New Eeco almost to the tune of 7000 vehicles being manufactured every month.
Due to manufacturing capacity constraints the company is unable to push its products with the other Auto mobiles players. Also it has lowered its supply for the Fails safe Brake Actuator Springs supplied to the Medium and Heavy Commerical Vehicles.
The Company has found a new market and has included supplies for cab suspension again for the Commercial Vehicles.
Due to Capacity issues the Company's Market share has fallen to 30% in the Passenger Vehicle Segment and 16% in the Commerical Vehicle Segment.
b)
New
Product Development:
Witnessing the growth in the automobile market with new players coming in there were a few new developments the company made in the last fiscal. The company was able to design Progressive Design Springs for the successful running Maruti Eeco for both Petrol and CNG version. A new Design for the upcoming new Alto was a big success. Along with this the company designed High Stress Springs for the TATA Aria to be launched in September 2010. Other than Suspension Springs the Company has developed Springs for Electronic Power Steering for the New Swift and Springs for CNG Valves for all CNG variants to be launched by Maruti Suzuki towards a "Green Growth"
The Company is also looking at adapting newer technology to increase its foray in the Front Suspension, Spring Technology.
BUSINESS OUTLOOK AND
OVERVIEW
Towards the start of the current year the Automotive
Industry in
In this background, the Company wants to retain market share, it has to increase its production to more than 2 million numbers and also look at future expansion in capacity.
As such, the Company would have to re-strategize and improve its production systems
OPERATIONS REVIEW
(a)
Quality
Management
Towards its journey in reaching World Class levels, the Company has stressed focus in areas with key deliverables under Quality Management by:-
- Reduction in Customer complaints.
- Reduction in breakdown time.
- Reduction in changeover time.
- Improvement in inventory turnover ratio.
- Improvement in housekeeping levels.
- Establishing Quality Systems.
(b)
Energy
Management
Under Energy Management, the main focus areas were:-
- Identification of avoidable energy losses.
- Quantification of losses.
- Recommendations for minimizing / eliminating the identified losses.
- Monitoring support in implementation.
(c)
Cost
Management
The main focus areas were:-
- Understanding its present cost structure.
- Identification of all costs.
- Classification in value-added and non-value added costs.
- Reduction and elimination of the non-value adding costs.
Fixed Assets:
·
·
Building
·
Office Premises
·
Tube Well
·
Plant and Machinery
·
Office Equipments
·
Furniture and Fixture
·
Computers
·
Vehicles
·
Software
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.44.85 |
|
|
1 |
Rs.73.29 |
|
Euro |
1 |
Rs.64.89 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.