MIRA INFORM REPORT

 

 

Report Date :

24.06.2011

 

IDENTIFICATION DETAILS

 

Name :

FIEM INDUSTRIES LIMITED

 

 

Registered Office :

D-34, DSIDC, Packaging Complex, Kirti Nagar, New Delhi – 110 015, Delhi

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

06.02.1989

 

 

Com. Reg. No.:

55-34928

 

 

Capital Investment / Paid-up Capital :

Rs.119.622 Millions

 

 

CIN No.:

[Company Identification No.]

L36999DL1989PLC034928

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELF02380A

 

 

PAN No.:

[Permanent Account No.]

AAACF1034E

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer, Exporter of Automotive parts like Automotive Lamps, Head Lamp, Tail Lamp, Blinkers, Rear View Mirror and all kind of Lamps.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

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 :

D-34, DSIDC, Packaging Complex, Kirti Nagar, New Delhi – 110 015, Delhi, India

Tel. No.:

91-11-25927820, 25927919

Fax No.:

91-11-25927740

E-Mail :

arvind.chauhan@fiemindustries.com

fiemdelhi@airtelbroadband.in

Website :

http://www.fiemindustries.com

Area :

200 Sq. ft.

Location :

Owned

 

 

Corporate Office :

32 Mile Stone, G. T. Road, Kundli District, Sonepat – 131028, Haryana, India

Tel. No.:

91-130-2219168/9169/9174/9175/9176/9177/9178

Fax No.:

91-130-2219179

E-Mail :

fiemunit1@fiemindustries.com

jkjain@fiemindustries.com

 

 

DIRECTORS

 

Name :

Mr. J.K. Jain

Designation :

Chairman and Managing Director

Qualification :

B.Com

Date of Appointment :

05.08.1996

 

 

Name :

Mrs. Seema Jain

Designation :

Whole Time Director

Qualification :

B.Sc.

Date of Appointment :

01.04.2005

 

 

Name :

Mr. J.S.S. Rao

Designation :

Whole Time Director

Qualification :

M.Com

Date of Appointment :

02.05.2003

 

 

Name :

Mr. Kashi Ram Yadav

Designation :

Whole Time Director

Qualification :

Matriculation

Date of Appointment :

01.05.1995

 

 

Name :

Ms. Aanchal Jain

Designation :

Whole Time Director

 

 

Name :

Mr. Rahul Jain

Designation :

Non-Executive Director

 

 

Name :

Mr. C.D. Shah

Designation :

Independent Director

 

 

Name :

Mr. Iqbal Singh

Designation :

Independent Director

 

 

Name :

Mr. Charoen Sachamuneewongse

Designation :

Independent Director (w.e.f. 30.04.2009)

 

 

Name :

Mr. P.S. Bhatia

Designation :

Independent Director (up to 30.04.2010)

 

 

Name :

Mr. C.S. Kothari

Designation :

Independent Director

 

 

Name :

Mr. J.S. Chandhok

Designation :

Independent Director

 

 

Name :

Mr. Amitabh Prakash Agrawal

Designation :

Independent Director (w.e.f. 01.08.2010)

 

 

KEY EXECUTIVES

 

Name :

Mr. O. P. Gupta

Designation :

Chief Financial Officer

 

 

Name :

Mr. Arvind K. Chauhan

Designation :

Company Secretary and Compliance Officer

 

 

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

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

8,034,309

67.16

Bodies Corporate

84,400

0.71

Sub Total

8,118,709

67.87

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

8,118,709

67.87

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

540

-

Sub Total

540

-

(2) Non-Institutions

 

 

Bodies Corporate

1,578,199

13.19

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

666,508

5.57

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

886,339

7.41

Any Others (Specify)

711,931

5.95

Non Resident Indians

516,996

4.32

Foreign Corporate Bodies

104,051

0.87

Clearing Members

3,717

0.03

Hindu Undivided Families

66,802

0.56

Directors & their Relatives & Friends

20,365

0.17

Sub Total

3,842,977

32.13

Total Public shareholding (B)

3,843,517

32.13

Total (A)+(B)

11,962,226

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

11,962,226

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter of Automotive parts like Automotive Lamps, Head Lamp, Tail Lamp, Blinkers, Rear View Mirror and all kind of Lamps.

 

 

GENERAL INFORMATION

 

Customers :
  • Punjab Tractors Limited
  • Hyundai Motors India Limited
  • Tata Motors Limited
  • Swaraj Mazda Limited
  • VST Tiller and Tractors Limited
  • HMT Tractors Limited
  • Force Motors Limited
  • Escorts Limited

 

 

Bankers :
  • Citi Bank N. A.
  • Standard Chartered Bank
  • State Bank of Patiala

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

Term Loans from Banks

327.395

183.359

Vehicle Loan

0

0

From Bank

11.499

4.467

From Others

0.000

0.027

Working Capital advance from banks

203.475

304.633

Total

542.369

492.486

 

Notes :

 

A) TERM LOANS FROM BANKS

  1. From Citibank NA :- Loan outstanding as at 31st March 2010 Rs 45.341 Millions (Previous Year Rs 69.910 Millions) (Principal amount including interest repayable within 12 months from the date of Balance sheet Rs 24.716 Millions) (Secured against Exclusive charge on all the movable and immovable assets procured out of the term loan including equitable mortgage on factory land and building at Nalagarh Unit, H.P. and second charge on all movable and immovable fixed assets at Rai Unit )

 

  1. From Standard Chartered Bank :- Loan outstanding as at 31st March 2010 Rs 181.034 Millions (Previous Year Rs 113.448 Millions) (Principal amount repayable within 12 Months is Rs 32.413 Millions) (Secured against First Charge on movable fixed assets (Present and Future) including Plant and Machinery at Hosur Unit-2 (Present and future) and Equitable Mortgage on Land and Building at Hosur Unit-2 situated at Thally road, Hosur, Tamilnadu and Unit-3 situated at Kelamangalam Road, Hosur, Tamilnadu and Property at Mansarover Garden, Delhi and equitable mortgage on first pari passu charge basis on land and building and plant and machinery of Rai unit)

 

  1. From State bank of Patiala :- Loan outstanding as at 31st March 2010 Rs 101.019 Millions (Previous Year Nil) (Principal amount including interest repayable within 12 Months is Rs 17.687 Millions) (Secured against Pari Passu charge over the fixed assets of Rai projects (both Present and future) including equitable mortgage of land and building at Rai, Sonepat and first charge on movable fixed assets of Hosur unit- III (tamilnadu) and Karnataka unit IV and Second charge over the entire fixed assets of unit VI nalagarh Unit (first charge with Citibank) and ceeding second charge on fixed assets of Rai unit in favour of Citibank on reciprocal basis.)

 

B) WORKING CAPITAL ADVANCES FROM BANKS

  1. From Citibank NA :- Loan outstanding as at 31st March 2010 Rs 81.630 Millions (Previous Year Rs 168.246 Millions) (Principal amount repayable within 12 months from the date of Balance sheet Rs 81.630 Millions) (Secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories and on all fixed assets of the company (excluding assets specifically purchased out of term loans from Citibank and Standard Chartered Bank) including equitable mortgage charge on first pari passu basis on Land and Building situated at Kundli, Haryana and Thally Road Hosur, Tamilnadu)

 

  1. From Standard Chartered Bank :- Loan outstanding as at 31st March 2010 Rs 121.845 Millions (Previous Year Rs 136.386 Millions) (Principal amount repayable within 12 months from the date of Balance sheet Rs 121.845 Millions) (Secured against First Pari Passu charge on Stocks and Book Debts, and Equitable mortgage charge on First Pari Passu basis on land and building situated at Kundli unit Haryana and Thally Road Hosur, Tamilnadu)

 

C) LOANS SECURED AGAINST HYPOTHECATION OF VEHICLES

  1. Loan outstanding as at 31st March 2010 Rs 11.499 Millions (Previous Year Rs 4.494 Millions) (Principal amount repayable within 12 months from the date of Balance sheet Rs 3.819 Millions (Previous Year Rs 3.344 Millions))

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Anil S. Gupta and Associates

Chartered Accountants

Address :

201, Vikram Tower, 16 Rajendra Place, New Delhi – 110008, Delhi, India

 

 

Associates/Subsidiaries :
  • Fiem Auto Private Limited
  • Halogen Auto and Electrical Industries Private Limited
  • Fiem Industries Japan Company Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

30000000

Equity Shares

Rs.10/- each

Rs.300.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11962226

Equity Shares

Rs.10/-each

Rs.119.622 Millions

 

Note :

 

  1. 1,04,065 (Previous year 1,04,065) fully paid up equity shares of Rs 10/- each allotted during 2007-08 to the shareholders of M/s Fiem Sung San (India) Limited Pursuant to its Amalgamation without payment being received in cash.
  2. 10,00,000 (Previous year 10,00,000) Equity shares of Rs 10/- each were allotted as fully paid bonus shares by capitalization of profits on 9.03.2006.

 

 

 

 

 

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

119.622

119.622

119.622

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

980.162

840.427

1017.114

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1099.784

960.049

1136.736

LOAN FUNDS

 

 

 

1] Secured Loans

542.369

492.486

479.916

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

542.369

492.486

479.916

DEFERRED TAX LIABILITIES

118.762

103.361

93.666

 

 

 

 

TOTAL

1760.915

1555.896

1710.318

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1535.313

1372.076

1391.645

Capital work-in-progress

252.258

132.038

36.103

 

 

 

 

INVESTMENT

0.462

0.200

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
273.324

269.986
228.431

 

Sundry Debtors
307.352

325.381
239.493

 

Cash & Bank Balances
13.670

15.347
9.818

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
139.407

152.143
149.185

Total Current Assets
733.753

762.857

626.927

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
464.480

374.742

 

Other Current Liabilities
217.303

272.061
282.914

 

Provisions
79.205

64.769
61.920

Total Current Liabilities
760.988

711.572

344.834

Net Current Assets
(27.235)

51.285

282.093

 

 

 

 

MISCELLANEOUS EXPENSES

0.117

0.297

0.477

 

 

 

 

TOTAL

1760.915

1555.896

1710.318

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2941.888

2192.893

1772.979

 

 

Other Income

8.385

10.076

28.764

 

 

TOTAL                                     (A)

2950.273

2202.969

1801.743

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of goods traded in

33.785

25.303

17.637

 

 

Cost of moulds, dies and tools for sale

37.313

49.532

11.932

 

 

Raw materials consumed

1687.107

1302.309

1053.964

 

 

Manufacturing Expenses

564.029

422.430

341.985

 

 

Employee Cost

98.851

86.126

74.673

 

 

Cost of finance

33.295

39.978

19.508

 

 

Administrative and Selling expenses

188.864

134.458

114.010

 

 

Prior period items

1.284

1.570

0.522

 

 

Increase / (Decrease) in stock

56.428

(24.264)

(52.468)

 

 

TOTAL                                     (B)

2700.956

2037.442

1581.763

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (A-B)                                       (C)

249.317

165.527

219.980

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (D)

92.467

88.232

78.215

 

 

 

 

 

 

PROFIT BEFORE TAX (C-D)                              (E)

156.850

77.295

141.765

 

 

 

 

 

Less

TAX                                                                  (F)

49.348

31.177

48.372

 

 

 

 

 

 

PROFIT AFTER TAX (E-F)                                 (G)

107.502

46.118

93.393

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

344.069

337.939

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

11.000

5.000

NA

 

 

Dividend

29.906

29.906

NA

 

 

Tax on Dividend

4.967

5.082

NA

 

BALANCE CARRIED TO THE B/S

405.698

344.069

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

127.170

113.160

 

 

Testing Fee Received

0.041

0.0180

 

 

 

Packing and Forwarding

0.316

0.007

 

 

 

Moulds and Dies Modification Charges

0.640

0.000

 

 

 

Other Earnings

0.657

0.000

 

 

TOTAL EARNINGS

128.824

113.185

108.256

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

76.724

98.527

 

 

Stores & Spares

4.110

2.057

 

 

 

Capital Goods

31.737

24.693

 

 

 

Trading Goods

67.262

73.203

 

 

 

Consumable Stores

3.520

8.186

 

 

TOTAL IMPORTS

183.353

206.666

268.746

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.99

3.86

7.81

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2010

1st Quarter

30.09.2010

2nd Quarter

31.12.2010

3rd Quarter

31.03.2011

4th Quarter

Net Sales

932.610

1009.850

1075.110

1194.840

Total Expenditure

837.990

924.890

987.500

1082.620

PBIDT (Excl OI)

94.620

84.960

87.610

112.220

Other Income

1.740

1.050

0.120

1.700

Operating Profit

96.360

86.010

87.730

113.920

Interest

10.440

22.410

26.080

36.220

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

85.920

63.600

61.650

77.700

Depreciation

29.680

32.070

35.950

32.750

Profit Before Tax

56.240

31.530

25.690

44.950

Tax

16.000

8.500

5.500

14.100

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

40.240

23.030

20.190

30.840

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

40.240

23.030

20.190

30.840

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
3.64

2.09

5.18

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.33

3.52

8.00

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.91

3.62

7.02

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.14

0.08

0.12

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.18

1.25

0.73

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.96

1.07

1.82

 

 

LOCAL AGENCY FURTHER INFORMATION

 

REVIEW OF BUSINESS PERFORMANCE

 

FY 2009-10 has proved a year of impressive performance for Automobile Industry. The effect of rebound of the economy is clearly visible on Automobile Industry, which have registered a production growth of 25.76% and two-wheeler domestic sales has grown by 26% during FY 2009-10.

 

Indian Auto Component Industry, being the integral part of the Automobile Industry has also been enjoying this impressive recovery in FY 2009-10. The increasing demand from OEMs is contributing in the growth of Auto Component manufacturers. This increased demand has compelled them to add new capacities apart from optimum utilization of existing capacity.

 

The Company being suppliers to OEMs and mainly into two-wheeler business has shown remarkable performance during FY 2009-10 by registering a growth of 34% in Net Sales. The company has also improved well on profits and earned a profit of Rs. 107.500 Millions in comparison to Rs. 46.100 Millions in FY 2008-09 resulting in a growth of 133%.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic Overview, Industry Structure, Developments and Outlook

 

As they all are aware, FY 2007-08 and 2008-09 have witnessed one of the worst economic recessions. However, 2009-10 started on the positive note as economy shown the signs of quicker recovery. The fiscal stimulus by the government and its thrust on the infrastructure spend provided a healthy dose to economy in the hour of need. Though, slow recovery in the developed economies has its impact on export front, however domestic demand has

substantially contributed to the fast pace of the economic rebound in India. Further, the recovery is quite broad based, though some of the sectors like real estate, financial services etc. have still to wait for their best old days. A number of industrialist and economist have admitted that they had not anticipated economic recovery so early and so fast. The growth has been far better than other economies. Their Country has achieved a GDP of around 7.5%, which clearly displays the speed of turnaround and strength of their economy as a whole.

 

Because of sluggish demand during FY 2007-08 and 2008-09, Automobile Companies were facing difficulty of underutilization of capacities. And as a result thereof, Automotive Components manufacturers also experienced similar difficulty.

 

Now, Indian Automobile Industry, which constitutes the presence of world's best Automobile players from Japan, Korea, Europe, America and their own home grown turned global players are experiencing good growth. The rebound in demand is so acute that in some segments of passenger cars and two-wheelers, demand has outstripped supply resulting in waiting period of months. Shortage of components supply to OEMs has become frequent news.

 

Following data released by SIAM for FY 2009-10 tells the story of this impressive recovery:

  1. Indian Automobile Industry as a whole registered a Production Growth of 25.76%
  2. Passenger Vehicle Production crossed 2 million and Two-wheeler production crossed 10 million.
  3. Annual Growth in Sales of Passenger Vehicle Segment is 25.57%
  4. Annual Growth in Sales of Commercial Vehicle Segment is 38.31%
  5. Annual Growth in Sales of Three Wheeler Segment is 25.92%
  6. Annual Growth in Sales of Two Wheeler Segment is 26.00%

 

Indian auto component industry, being the integral part of the Automobile Industry follows the moves of parent Industry and has been reaping the dividend of this impressive recovery in FY 2009-10. Because of unexpected demand from OEMs they are also facing a pleasant demand pressure, which is resulting in their phenomenal growth. This increased demand has compelled them to add new capacities apart from optimum utilization of existing capacity.

 

With the improved market sentiments, unprecedented customer interest in new vehicles, sound fundamentals of the economy, increase in discretionary disposable income in all segment of society, thrust of the government on infrastructure spend are some of the reasons which indicates that outlook for the sector will remain robust.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011

 

Particulars

Quarter Ended

31.03.2011

(Unaudited)

Year Ended

31.03.2011

(Unaudited)

Income

 

 

a) Net Sales / Income from Operations

1163.311

4172.784

b) Other Operating Income

31.528

39.614

Total Operating Income

1194.839

4212.398

Expenditure

 

 

(a) (Increase)/decrease in Stock in Trade

10.230

(75.937)

(b) Consumption of Raw Materials

690.986

2544.513

(c) Purchase of traded goods

40.101

84.924

(d) Manufacturing Expenses

206.544

778.242

(e) Employees Cost

36.035

132.401

(f) Depreciation

32.750

130.445

(g) Other Expenditure

98.722

368.857

Total Expenditure

1115.368

3963.445

Profit / (Loss) From Operations before other Income Interest & Exceptional Items

79.471

248.953

Other Income

1.695

4.600

Profit/(Loss) before Interest and Exceptional items

81.166

253.553

Interest

36.222

95.150

Profit / (Loss) after interest before Exceptional items

44.944

158.403

Exceptional Items

0.000

0.000

Profit / (Loss) From Ordinary activities before Tax

44.944

158.403

Tax Expenses

14.100

44.100

Net Profit/(Loss) From Ordinary activities after Tax

30.844

114.303

Extraordinary Items

0.000

0.000

Net Profit/(Loss) for the period

30.844

114.303

Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )

119.623

119.623

Reserves (Excluding Revaluation Reserves)

--

--

Earning Per Share (EPS)

 

Basic ands Diluted Before Extraordinary Items

2.58

9.56

Basic ands Diluted after Extraordinary Items

2.58

9.56

Public Share Holding

 

 

- Number of Shares

3843517

3843517

- Percentage of shareholding

32.13%

32.13%

Promoters and Promoter group share holding

 

 

a) Pledged / Encumbered

 

- Number of Shares

--

--

- Percentage of share (as a % of the total shareholding of promoter and promoter group)

--

--

- Percentage of shares(as a % of the total share capital of the company)

--

--

b) Non-encumbered

 

- Number of Shares

8118709

8118709

- Percentage of Share (as a % of the total shareholding of promoter and promoter group)

100.00%

100.00%

 - Percentage of Share (as a % of the total share capital of the company)

67.87%

67.87%

 

Notes :

 

  1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on 14’ May, 2011. The statutory auditors of the company have earned Out limited review on the above results.

 

  1. The company has one foreign subsidiary i.e. Fiem Industries Japan Company Limited incorporated in Japan. Under Clause 41 (I)(e) of the Listing Agreement, the company has adopted the option of submitting un-audited quarterly financial results only on standalone basis.

 

  1. The Company is primarily engaged in Automotive Components business. As such there is no other separate reportable segment as defined by Accounting Standard-17 Segment Reporting.

 

  1. The status of the investor complaints for the quarter ended on 31.03.2011 is as follows.

 

Opening

Received

Disposed off

Closing

 

No. of complaints

0

0

0

0

 

  1. Provision for Taxation includes Current Tax and Deferred Tax and is net of MAT entitlement credit available to the company, if any. By Order of the Board

 

 

FIXED ASSETS :

 

  • Leasehold Land
  • Freehold Land
  • Factory Building
  • Plant and Machinery
  • Office Equipment
  • Vehicles
  • Staff Bus and Delivery Van
  • Mould, Blocks and Dies
  • Electrical Fittings
  • Computers
  • Tools and Equipments
  • Furniture and Fixtures

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.44.93

UK Pound

1

Rs.72.09

Euro

1

Rs.64.21

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

 

49

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.