MIRA
INFORM REPORT
|
Report Date : |
08.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
CUMMINS INDIA LIMITED |
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Registered
Office : |
No.35A/1/2, Erandawane, Kothrud, Pune – 411 038, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
17.02.1962 |
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Com. Reg. No.: |
11-012276 |
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Capital
Investment / Paid-up Capital : |
Rs.396.000
millions |
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|
|
CIN No.: [Company Identification
No.] |
L29112PN1962PLC012276 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEC05744E |
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Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Diesel Engines and Filtration Equipments. |
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No. of Employees
: |
2988 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 62440000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well established and a reputed company having good track records. Financial position of the company appears to be strong and healthy. Directors are reported as experienced and respectable businessmen. Fundamentals of the company appears to be sound. Trade relations are fair. Business is active. Payments are regular and as per commitments. Fundamentals of the company are sound. The Company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DENIDED BY
|
Name : |
Mr. Abhijeet Sankar |
|
Designation : |
Finance Department |
LOCATIONS
|
Registered Office / Factory 1 / Corporate Office : |
No.35A/1/2, Erandawane, Kothrud, Pune – 411 038, |
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Tel. No.: |
91-20-25385435/5380240 |
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Fax No.: |
91-20-25380125 |
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E-Mail : |
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Website : |
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Factory 2 : |
Plot No. 19/25A, Silver Industrial Estate, Bhimpore, Daman
396 210, |
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Branch Office : |
Located at: v
Pune, v
v Dist. Khamman, Andhra Pradesh v
v
v
v
v
v
v Haryana v
v
v Hubli, Karnataka v Bilaspur, Madhya Pradesh v
v Singrauli, Madhya Pradesh v
Mumbai, v
v Orissa v Rajasthan v Chennai, Tamilnadu v
v
v
v Noida, Uttar Pradesh v
Asansol, v
Kokata, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Rajeev Bakshi |
|
Designation : |
Director |
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|
Name : |
Mr. J. M. Barrowman |
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Designation : |
Alternate Director |
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Name : |
Mr. Patrick Ward |
|
Designation : |
Director |
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|
Name : |
Mr. P. S. Dasgupta |
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Designation : |
Director |
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Name : |
Mr. M. A. Lavett |
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Designation : |
Director |
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|
Name : |
Mr. Naseer Munjee |
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Designation : |
Director |
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Name : |
Mr. B. H. Reporter |
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Designation : |
Director |
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Name : |
Mr. James Kelly |
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Designation : |
Director |
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Name : |
Mr. Venu Srinivasan |
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Designation : |
Director |
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Name : |
Mr. Anant Talaulicar |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. John Wall |
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Designation : |
Director |
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Name : |
Mr. Pradeep Bhargava |
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Designation : |
Alternate Director |
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Name : |
Mr. Sean Milloy |
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Designation : |
Alternate Director |
KEY EXECUTIVES
|
Name : |
Mr. Abhijeet Sankar |
|
Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
488 |
- |
|
|
488 |
- |
|
|
|
|
|
|
100,980,000 |
51.00 |
|
|
100,980,000 |
51.00 |
|
Total shareholding
of Promoter and Promoter Group (A) |
100,980,488 |
51.00 |
|
(B) Public
Shareholding |
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|
|
|
|
|
|
|
28,139,960 |
14.21 |
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|
13,358,096 |
6.75 |
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22,730,646 |
11.48 |
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64,228,702 |
32.44 |
|
|
|
|
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13,052,054 |
6.59 |
|
|
|
|
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|
17,765,811 |
8.97 |
|
|
963,950 |
0.49 |
|
|
1,008,995 |
0.51 |
|
|
272,654 |
0.14 |
|
|
1,611 |
- |
|
|
437,672 |
0.22 |
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|
288,180 |
0.15 |
|
|
8,878 |
- |
|
|
32,790,810 |
16.56 |
|
Total Public
shareholding (B) |
97,019,512 |
49.00 |
|
Total (A)+(B) |
198,000,000 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
198,000,000 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Diesel Engines and Filtration Equipments. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
2988 (Approximately) |
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Bankers : |
Ř
State Bank of Ř
The Saraswat Co-operative Bank Limited Ř
State Bank of Ř
HDFC Bank Limited Ř
Citibank, N.A. Ř
Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
252, Veer Savarkar Marg, |
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Holding Company : |
Cummins Inc. |
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Fellow Subsidiaries : |
v
Cummins ( v
Cummins Business Services, v
Cummins Commercial Izadora v
Cummins Deutschland Gmbh v
Cummins Diesel N.V. v
Cummins Diesel Sales Corporation, v
Cummins Diesel v
Cummins Diesel v
Cummins Diethelm Limited v
Cummins Engine ( v
Cummins Engine ( v
Cummins Engine ( v
Cummins Filtration v
Cummins Firepower v
Cummins France Sa v
Cummins Generator Technologies ( v
Cummins Generator Technologies Limited, v
Cummins Hong Kong Limited v
Cummins v
Cummins Italia Spa v
Cummins Japan Limited v
Cummins Mexico Sa v
Cummins Middle v
Cummins Mid-South, LLC v
Cummins Natural Gas Engines, Inc. v
Cummins Power Generation ( v
Cummins Power Generation, v
Cummins Power Generation Limited, v
Cummins Power Generation Limited, Kent v
Cummins Power Generation Singapore PTE Limited v
Cummins Power Generation ( v
Cummins Rocky Mountain LLC v
Cummins Sales and Service Philippines Inc. v
Cummins South v
Cummins v
Cummins Technologies India Limited v
Cummins Turbo Technologies (US) v
Cummins Turbo Technologies Limited v
Cummins v
Cummins Westport v
Cummmins Generator Technologies ( v
Diesel Recon Company v
Diesel Recon, v
Shanghai Cummins Trade Company Limited v
Cummins Npower v
Cummins Brasil Limited v
Cummins Limited v
Cummins S De R L De C V |
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Associates : |
v
Cummins Generator Technologies India Limited |
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Joint Venture : |
v
Valvoline Cummins Limited v
Cummins Exhaust India Limited v
Cummins Research and Technology India Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.2/- each |
Rs.400.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
198000000 |
Equity Shares |
Rs.2/- each |
Rs.396.000
millions |
|
|
|
|
|
Notes: of the above equity shares:
1. 190500000 shares of Rs. 2/- each are allotted as fully paid up bonus
shares by capitalization of reserves.
2. 100980000 shares of Rs. 2/- each are held by the holding company, Cummins
Inc.,
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 |
396.000 |
396.000 |
396.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15213.964 |
13550.505 |
10640.851 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15609.964 |
13946.505 |
11036.851 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
86.238 |
211.976 |
287.165 |
|
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2] Unsecured Loans |
0.133 |
0.403 |
0.915 |
|
|
TOTAL BORROWING |
86.371 |
212.379 |
288.080 |
|
|
DEFERRED TAX LIABILITIES |
329.522 |
215.469 |
175.857 |
|
|
FINANCE LEASE LIABILITITY |
0.000 |
16.702 |
37.131 |
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|
|
|
|
|
|
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TOTAL |
16025.857 |
14391.055 |
11537.919 |
|
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|
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|
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|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3336.586 |
3090.162 |
2548.520 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
7329.224 |
3992.691 |
4321.455 |
|
|
DEFERREX TAX ASSETS |
499.415 |
446.115 |
309.635 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4096.685
|
4679.747 |
3214.565 |
|
|
Sundry Debtors |
5229.012
|
6821.030 |
5504.531 |
|
|
Cash & Bank Balances |
559.282
|
323.227 |
123.005 |
|
|
Other Current Assets |
92.655
|
83.193 |
24.046 |
|
|
Loans & Advances |
2694.940
|
2663.192 |
1934.680 |
|
Total
Current Assets |
12672.574
|
14570.389 |
10800.827 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3768.243
|
4762.398 |
4030.914 |
|
|
Other Current Liabilities |
1409.480
|
1214.251 |
953.280 |
|
|
Provisions |
2634.219
|
1731.653 |
1458.324 |
|
Total
Current Liabilities |
7811.942
|
7708.302 |
6442.518 |
|
|
Net Current Assets |
4860.632
|
6862.087 |
4358.309 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
16025.857 |
14391.055 |
11537.919 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28448.704 |
33042.837 |
23307.792 |
|
|
|
Other Income |
1215.595 |
1507.467 |
1227.127 |
|
|
|
TOTAL (A) |
29664.299 |
34550.304 |
24534.919 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
23173.844 |
28270.458 |
20238.602 |
|
|
|
TOTAL (B) |
23173.844 |
28270.458 |
20238.602 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6490.455 |
6279.846 |
4296.317 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
20.507 |
26.080 |
6.665 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6469.948 |
6253.766 |
4289.652 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
360.801 |
455.587 |
329.620 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
6109.147 |
5798.179 |
3960.032 |
|
|
|
|
|
|
|
|
|
Add |
Exceptional Item |
0.000 |
192.037 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1670.475 |
1653.605 |
1153.122 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4438.672 |
4336.611 |
2806.910 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4955.127 |
3154.023 |
2114.431 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
443.867 |
433.661 |
701.728 |
|
|
|
Proposed Final Dividend |
1188.000 |
514.800 |
514.800 |
|
|
|
Interim Dividend |
1188.000 |
1267.200 |
396.000 |
|
|
|
Tax on Dividend |
399.213 |
319.846 |
154.790 |
|
|
BALANCE CARRIED
TO THE B/S |
6174.719 |
4955.127 |
3154.023 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
5076.277 |
13424.852 |
7420.494 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
915.549 |
1336.392 |
NA |
|
|
|
Components |
2219.318 |
4462.380 |
NA |
|
|
|
Machinery Spares |
8.674 |
16.183 |
NA |
|
|
|
Capital Goods |
305.254 |
261.073 |
NA |
|
|
|
Others |
13.657 |
47.283 |
NA |
|
|
TOTAL IMPORTS |
3462.452 |
6123.311 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.42 |
21.90 |
14.18 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
9279.400 |
10914.300 |
9925.200 |
10492.800 |
|
Total Expenditure |
7304.600 |
8741.900 |
8128.800 |
8644.300 |
|
PBIDT (Excl OI) |
1974.800 |
2172.400 |
1796.400 |
1848.500 |
|
Other Income |
96.500 |
205.100 |
102.600 |
212.800 |
|
Operating Profit |
2071.300 |
2377.500 |
1899.000 |
2061.300 |
|
Interest |
4.100 |
4.100 |
3.100 |
7.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
2067.200 |
2373.400 |
1895.900 |
2053.600 |
|
Depreciation |
93.100 |
92.900 |
91.000 |
89.400 |
|
Profit Before Tax |
1974.100 |
2280.500 |
1804.900 |
1964.200 |
|
Tax |
571.800 |
601.600 |
415.900 |
524.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1402.300 |
1678.900 |
1389.000 |
1439.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1402.300 |
1678.900 |
1389.000 |
1439.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.48
|
12.55 |
11.44 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.47
|
17.55 |
16.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
37.01
|
32.02 |
28.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.41 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.53
|
0.58 |
0.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.62
|
1.89 |
1.68 |
LOCAL AGENCY FURTHER INFORMATION
LITIGATION:
CASE – 1:-
Bench:-
|
Stamp No.
:- |
WPST/15228/2008 |
Filing Date:- |
30.06.2008 |
Main
Matter
|
Stamp No.
:- |
WP/4857/2008 |
Filing Date:- |
07.07.2008 |
Petitioner:- Suresh Sripati Rao
Petn. Adv.:- Shri. K.S. Verma
Respondent:- Cummins India Limited
Resp. Adv.:- Haresh Mehta and Company. For. R. No. 1
District:- Pune
Bench:- Single
Status:- Admitted
Last Date:- 08.07.2008
Stage:- Admission
Last Coram:- Hon’ble Shri. Justice Dr. D.Y. Chandrachud
Act:- Industrial Dispute Act, 1947.
FINANCIAL RESULTS:
During the year,
net sales turnover was Rs. 28448.704 millions (Rs. 28449.000 million) as
compared to Rs. 33042.837 millions (Rs. 33043.000 million) during the previous
year (14% lower). Exports and other foreign exchange earnings were Rs. 5076.277
millions (Rs. 5076.000 million) as compared to Rs. 13424.852 millions (Rs.
13425.000 million) during the previous year (62% lower). Profit after tax was
Rs. 4438.672 millions (Rs. 4439.000 million) as compared to Rs. 4336.611
millions (Rs. 4337.000 million) for the previous year (2% higher).
JOINT
VENTURES:
a.
Cummins Exhaust India Limited (CEIL) :
Sales and
other income of CEIL, a 50:50 Joint Venture between Cummins Filtration Inc.,
U.S.A. and the Company, for the year ended March 31, 2010, was Rs. 447.572
millions (Rs. 448 million) as compared to Rs. 429.565 millions (Rs.430 million)
during the previous year (4 % higher). CEIL declared a dividend aggregating to
Rs.14.5 per equity share of Rs. 10/- each during the year ended March 31, 2010,
on the paid-up share capital of Rs. 40.000 millions. CEIL is engaged in the
business of manufacture and sale of exhaust silencers and mufflers for Internal
Combustion Engines.
b.
Cummins Research and Technology India
Limited (CRTI) :
Sales
and other income of Cummins Research and Technology India Limited (CRTI), a
50:50 Joint Venture between Cummins Inc., U.S.A. and the Company, for the year
ended March 31, 2010, was Rs. 409.910 millions (Rs. 410 million ) as compared
to Rs. 482.717 millions (Rs. 483 million) during the previous year (15 %
lower). CRTI has a Research and Technology Centre at Pune and is engaged in
providing Information Technology Enabled Mechanical Engineering Development
Services to Cummins Inc., its subsidiaries and joint ventures across the world.
c.
Valvoline Cummins Limited (VCL) :
VCL is
a 50:50 joint venture with Valvoline International Inc.,
INITIATIVES AT
PHALTAN :
With the recovery
in the economy, the Company has once again stepped up activity and investment
at its Phaltan Project. Two projects are underway and are expected to commence
operations during the third quarter of 2010.
Ř A High Horse Power
Rebuild centre which will have a state of the art facility to Rebuild up to 900
High Horse Power engines per annum.
Ř A Parts
Distribution Centre (PDC) which will undertake kitting, assembly of products,
parts, components etc. and distribution of the same from a centralized location
to cater to the requirements of other plants of Cummins as well as after
market.
Total investment
in these projects and in building common infrastructure facilities for the
plants at Phaltan is expected to be around Rs. 1200.000 millions during the
year 2010-11.
OTHER INITIATIVES:
The Company reacted
with agility to brace the economic slowdown at the beginning of the year. Some
initiatives in this direction included:
Ř Effective
redeployment of manpower among Business Units / Group Companies to ensure
optimum utilization of resources.
Ř Judicious capital
investments and deferment of capital expenditure where possible, without
affecting growth. However, investment in people, customer relationships, new
products and technologies and critical projects / capacity expansion continued
as planned to strengthen the Company’s position for long term profitable growth
in
Ř CBS operations,
which commenced during the FY 2004-05 for transactional services, like
financial transactions, payroll processing, IT infrastructure management etc.,
were discontinued effective September 1, 2009, to enable the Company to focus
on its core business activities. However, in order to ensure continuity of
services as per quality and security standards of Cummins, these services have
been outsourced to a group company, Cummins Technologies India Limited (CTIL).
Ř Intensified use of
Accelerated Cost Efficiency and Six Sigma tools to drive down costs.
Ř Effective vendor
management and consolidation to leverage better costs.
Management
Discussion and Analysis Report
Industry
Structure and Developments Economic Trends and Implications
Despite
the global economic crisis, the Indian Economy closed on a relatively good note
in fiscal year 2009-10. This recovery started from the second quarter of FY10,
primarily in the domestic market, supported by various monetary and fiscal
stimulus packages released by the Indian Government. Industrial production also
rebounded and is expected to have grown by 9.8 percent in 2009-10.
The
economic recovery has been accompanied with a rise in fiscal deficit and
inflation. Fiscal deficit during 2009-10 is estimated to be 7.1 percent of GDP,
up from 5.9 percent during 2008-09. In an attempt to control the rising fiscal
deficit, the government rolled back some elements of the stimulus package that
were offered during the previous fiscal. Inflation management also remained a
big challenge for the Government during 2009-10. Inflation crossed 10 percent
in March, the highest during the 17 month period starting October 2008. WPI
inflation is expected to be higher during 2010-11 (at an average of 6 percent)
as compared to 3.6 percent estimated for 2009-10 on account of lower base in
the first seven months of 2009-10, rise in demand, hike in excise duty across
the board, and increase in customs duty on crude and petroleum products.
Assuming
normal monsoons, robust industrial growth and resilient performance of the
service sector, GDP in FY
11 is
expected to grow at above 8 percent. The focus of the government spending on
the infrastructure sector would continue to support growth.
Segment-wise
and Product-wise Performance
Power
Generation
The
domestic market demand that had been impacted in the second half of 2008-09
showed signs of recovery during the year.
Demand
for their low horse power products has also picked up and the manufacturing
facilities in Pirangut and
With
the improved availability of natural gas, demand for lean burn gas generator
sets improved with the Company bagging orders worth 20 MW.
Demand
for producer gas generator sets which use gasifier technology developed along
with Indian Institute of Science, was also encouraging.
The
Automatic Transfer Switches (ATS) that was launched in early 2009 have found
acceptance in the market place and the Company is steadily improving its
presence in this market.
Industrial
Ř
The Industrial Engine Business grew 24%
during 2009-10. The diverse nature of the segments helped the Industrial
business ride smoothly through the lower growth period of 2009.
Ř
The Construction segment, which is
directly related to the industrial activity and GDP growth, staged a smart recovery
in the later half of the year to grow by 30% on an annual basis.
Ř
The Mining segment grew by 16% during
2009-10. Successful implementation of new product programs, introduction of
electronic engines on varied applications, was the key to growth.
Ř
The Compressor segment witnessed a
robust growth of more than 50% over last year. This growth was triggered by
strong performance in the Water Well, Gas Compression and Portable compressor
segments.
Ř
The high pressure water well drill rig
market showed significant increase in demand mainly due to the deficient and
irregular monsoon.
Ř
Government’s directive to use clean
fuel in the major cities of
Ř
The Marine segment grew close to 50%
over last year. The success in this segment can be attributed to the Company’s
focus on maximizing naval opportunities and introduction of new products for
new applications.
Ř
The Rail segment grew over 19% and its
performance was boosted by the execution of the Sri Lanka DEMU project, CNG
DEMU project and strong participation in 4-wheeler and 8-wheeler cars project.
Automotive
Ř
The Automotive Business grew by 144% in
2009-10 as compared to 2008-09.
Ř
After securing 100% of the requirements
for the Delhi Transport Corporation (DTC) tender for low floor buses, the
Company has secured all of the second phase tender. The Company maintained 100%
market share in the premium CNG engines through its B series Lean Burn engines.
Ř
The heavy commercial segment of 300 HP
and above remained nascent during the Financial Year 2009-10. However, with the
increase in infrastructural activities this segment is likely to pick up medium
term.
Distribution
Ř
The Distribution Business Unit (DBU)
recorded a 18% growth in revenues over the previous year and reported a robust
performance in almost all lines of business.
Ř
Through a comprehensive project on
reduction in Selling and Administrative Expenses and stringent cost control,
the DBU has been able to achieve significant improvements in profitability
across its operations.
Exports
Ř
The global crisis impacted exports
severely, resulting in a revenue drop of 65% over the previous year.
New
Business Initiatives 2009-10
Power
Generation:
Ř
The Company introduced 7.5/10 kVA
generator sets to supplement its existing 15 to 3000 kVA range. These 7.5/10
kVA products are available across the country through a retail distribution
channel. It is also a niche product for Cummins globally and the demand is
expected to increase significantly across the globe.
Ř
The Company re-designed and launched
the low horsepower export product range under a new International Specification
of Cummins and it was well accepted in the global markets. The Company also
introduced a new range of products between 40 kVA and 160 kVA for exports.
Industrial
:
Ř
The Company captured new businesses in
high horsepower applications by positioning new value packages in Rail (Diesel
Electric Multiple Unit), Marine and Pump segments.
Ř
The Company seeded a prototype unit for
a Self Propelled Accident Relief Train (SPART) as a part of Indian Railway’s
increased focus on safety. The Company also won a prestigious order from the
Indian Railways for 4 wheeler Over Head Equipment Cars (maintenance machine).
Distribution:
Ř
The Company’s distribution arm launched
a new initiative to devise and implement a support strategy for Automotive OEMs
which resulted in significant growth in auto parts sales.
Ř
In order to improve the dealer network
efficiency and deliver service excellence, the company implemented a network
consolidation project without compromising on customer reach and dealer
efficiency.
Ř
Achievements
Power
Generation:
Ř
The Company’s manufacturing plant in
Pirangut is now ISO : 9001, ISO : 14001 and OHSAS : 18001 certified.
Industrial:
Ř
A leading OEM in the construction
equipment sector in
Ř
A leading player in the compressor
segment conferred two awards on subject for Customer Support Excellence.
Exports
Ř
The Company received the prestigious
Engineering Export Promotion Council’s “Star Performer Award” for Export
Excellence for the year 2007-08. This was in recognition of its outstanding
contribution to Engineering Exports (Western Region) in the category of “Large
Enterprises”. The Company has received this award for the 20th consecutive
year.
Outlook and Initiatives
for the Current Year and Thereafter
Power Generation
Ř The fundamentals
that drive the demand for generator sets are positive. GDP is growing,
industrial production is accelerating, power deficits continue, and investments
in infrastructure are increasing. This has already translated into an
improvement in demand for generator sets from the domestic market. This trend
is expected to continue.
Ř There is also an
improvement in demand from other emerging markets.
Industrial Outlook
Ř With a growing middle
class base, favorable demographics, rising disposable income, consumption
levels, growing corporate sector – including Service and Industry, the outlook
remains positive. After a slowdown period in 2008-09, the economy is expected
to grow strongly this year and gain momentum in coming years.
Ř Government and
private investments will continue to grow in the infrastructure sector due to
sustained economic growth.
Ř
Ř The railway energy
saving drive will lead to transition from ‘Self Generation’ to ‘End on
generation’ coaches and will drive demand for diesel engines.
Ř The freight
corridor project and increased focus on safety by the Indian Railways will lead
to an increase in demand for track maintenance machines and maintenance rail
cranes.
Automotive
Ř With the demand
for CNG low floor buses and the recovery of the heavy truck and tipper
segments, the outlook for Automotive Business appears positive.
Distribution
Ř The company plans
to set up a state-of-the-art rebuild facility at the Cummins Megasite in
Phaltan for its line of HHP mechanical and electronic engines to cater to the
growing demand in the region.
Ř Despite the
downturn in the economy and weak sentiments in the market, the Distribution
Business maintains a positive outlook for the current year and has launched
several initiatives to continue this growth.
FINANCIAL RESULTS FOR THE
YEAR ENDED MARCH 31, 2011
(Rs. in millions)
|
Particulars |
Quarter ended march 31, 2011 (Audited) |
Accounting Year
ended march 31, 2011 (Audited) |
|
1. a. Net sales |
10095.600 |
39454.400 |
|
b. Other Operating income |
397.200 |
1157.300 |
|
Total Income
(a+b) |
10492.800 |
40611.700 |
|
2. Expenditure |
|
|
|
a. (Increase)/decrease in stock in trade and work in progress |
(367.000) |
(482.800) |
|
b. Consumption of raw material and components |
6334.800 |
24040.400 |
|
c. Purchase of traded goods |
814.400 |
2245.900 |
|
d. Employee cost |
701.400 |
2546.300 |
|
e. Depreciation |
89.400 |
366.400 |
|
f. Other expenditure |
1160.700 |
4469.800 |
|
g. Total |
8733.700 |
33186.000 |
|
3. Profit from Operations before Other income , Interest and
Exceptional Items (1-2) |
1759.100 |
7425.700 |
|
4. Other Income |
212.800 |
617.000 |
|
5. Profit before Interest and Exceptional Items (3+4) |
1971.900 |
8042.700 |
|
6. Interest |
7.700 |
19.000 |
|
7. Profit after interest but before Exceptional items (5-6) |
1964.200 |
8023.700 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit from Ordinary Activities before tax (7+8) |
1964.200 |
8023.700 |
|
10. Tax expense (Note 2) |
524.500 |
2113.800 |
|
11. Net Profit from Ordinary Activities after tax (9-10) |
1439.700 |
5909.900 |
|
12. Paid-up equity share capital ( Face Value Rs. 2 each ) |
396.000 |
396.000 |
|
13. Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
-- |
17660.600 |
|
14. Earnings Per Share ( EPS ) |
|
|
|
a) Basic and Diluted EPS before Extraordinary items for the period /
year (Not annualized) (Rs.) |
7.27 |
29.85 |
|
b) Basic and Diluted EPS after Extraordinary items for the period /
year (Not annualized) (Rs.) |
7.27 |
29.85 |
|
15. Public shareholding |
|
|
|
Number of shares |
97019512 |
97019512 |
|
Percentage of shareholding |
49% |
49% |
|
16. Promoters and Promoter Group Shareholding |
|
|
|
a. Pledged / Encumbered |
|
|
|
Number of shares |
Nil |
Nil |
|
Percentage of shares (as a % of the total Shareholding of Promoter and
Promoter group) |
NA |
NA |
|
Percentage of shares (as a % of the total Share Capital of the
Company) |
NA |
NA |
|
b. Non-encumbered |
|
|
|
Number of shares |
100980488 |
100980488 |
|
Percentage of shares (as a % of the total Shareholding of Promoter and
Promoter group) |
100% |
100% |
|
Percentage of shares (as a % of the total Share Capital of the
Company) |
51% |
51% |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Particulars |
Quarter ended march 31, 2011 (Audited) |
Accounting Year
ended march 31, 2011 (Audited) |
|
1. Segment
Revenue : |
|
|
|
Engine Business |
9275.400 |
36361.500 |
|
Others |
820.200 |
3092.900 |
|
Revenue from
operations |
10095.600 |
39454.400 |
|
|
|
|
|
2. Segment
Results : |
|
|
|
Profit(+)/Loss(-) before interest and tax |
|
|
|
Engine Business |
1493.200 |
6219.000 |
|
Others |
265.900 |
1206.700 |
|
Total |
1759.100 |
7425.700 |
|
|
|
|
|
Less : Interest |
7.700 |
19.000 |
|
|
|
|
|
Add : Unallocable income |
212.800 |
617.000 |
|
Add: Exceptional Item |
-- |
-- |
|
Total Profit
Before Tax |
1964.200 |
8023.700 |
|
|
|
|
|
3. Capital
Employed : (segment assets - segment liabilities) |
|
|
|
Engine Business |
11759.500 |
11759.500 |
|
Others |
540.100 |
540.100 |
|
Total |
12299.600 |
12299.600 |
Notes
1. Disclosure of Assets and Liabilities as per
clause 41(1 )(ea) of the Listing Agreement for the year ended March 31 2011
Statement of Assets and Liabilities
(Rs. in millions)
|
Particulars |
As at March 31,
2011 (Audited) |
|
1. Shareholders’ funds: |
|
|
a) Capital |
396.000 |
|
b) Reserves and surplus |
17666.700 |
|
|
|
|
2. Loan funds |
182.600 |
|
a) Secured Loans |
0.000 |
|
b) Unsecured Loans |
|
|
|
|
|
3. Lease Rent Payable |
-- |
|
Total (1 +2+3) |
18245.300 |
|
|
|
|
4. Fixed assets |
4410.700 |
|
5. Investments |
7254.500 |
|
6. Deferred tax assets |
187.400 |
|
7. Current assets, loans and advances |
|
|
a) Inventories |
5189.600 |
|
b) Sundry debtors |
7181.600 |
|
c) Cash and Bank balances |
1037.200 |
|
d) Other current assets |
98.500 |
|
e) Loans and advances |
3297.100 |
|
8. Less: Current liabilities and provisions |
|
|
a) Liabilities |
7108.800 |
|
b) Provisions |
3302.500 |
|
9. Net Current assets (7 - 8) |
6392.700 |
|
Total (4 + 5 + 6 + 9) |
18245.300 |
Notes:
1. The Board of Directors have recommended a
final dividend of Rs. 8/- per equity share of Rs.2/- each fully paid up for the
financial year 2010-11 in addition to the interim dividend of Rs.7/- per share
declared on February 03, 2011
2. Tax Expense for the quarter ended March 31,
2011 is net of write back of provision of Rs.32.800 millions in respect of
earlier years (Rs. Nil for previous quarter ended March 31, 2010)
3. Subsequent to year end (in April 2011), the
Company divested its entire 2 million shares held in Cummins Exhaust India
Limited for a consideration of Rs.534.400 millions.
4. Previous period(s) / year(s) figures have
been re-grouped wherever necessary.
5. At the beginning of the quarter, no
investor complaint was pending. During the quarter, 4 complaints were received.
The Company has resolved the same and no complaint was pending at the end of
the quarter.
6. The above financial results have been
reviewed by the Audit Committee and approved by the Board of Directors at their
meeting held on May 30, 2011.
FIXED ASSETS:
· Freehold land
· Land*
· Roads
· Building
· Plant and Machinery
· Furniture and fittings
· Vehicles
· Software
· Technical Knowhow
· Global Sourcing Consideration
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.44.74 |
|
|
1 |
Rs.73.25 |
|
Euro |
1 |
Rs.65.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--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 |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
66 |
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.