MIRA
INFORM REPORT
|
Report Date : |
12.03.2011 |
IDENTIFICATION DETAILS
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Name : |
LUMAX INDUSTRIES LIMITED |
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Registered
Office : |
B-85-86, Mayapuri Industrial Area, Phase - 1, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
10.12.1981 |
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Com. Reg. No.: |
55-012804 |
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CIN No.: [Company Identification
No.] |
L74899DL1981PLC012804 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELL02101B |
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PAN No.: [Permanent Account No.] |
AAACL1126D |
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Legal Form : |
It is a Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Supplier of Auto Components, Mainly Automotive Lighting Systems for Four Wheeler and Two Wheeler Applications. |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 5726000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are fair. Business
is active. Payments are reported to be regular and as per commitments. 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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered/ Corporate Office : |
B-85-86, Mayapuri Industrial Area, Phase - 1, |
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Tel. No.: |
91-11-28111777, 28116990, 28115709 |
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Fax No.: |
91-11-28115779, 28113631 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.16, Sector-18, Maruti Complex, Gurgaon , |
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Tel. No.: |
91-124-2341090 |
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Fax No.: |
91-124-2342149 |
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E-Mail : |
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Factory 2 : |
Plot No.6, Industrial Area, Dharuhera, District Rewari, |
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Factory 3 : |
D2-43/2, M.I.D.C. Industrial Area, Chinchwad, Pune, |
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Factory 4 : |
608-609, |
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Factory 5 : |
Plot No. 51, |
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Factory 6 : |
Plot No. 5, Industrial Park – II, Village Salempur, Mehdood, Haridwar,
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Warehouse : |
Plot No.E-38, Site-IV, Surajpur Greater Noida, District Gautam Budh
Nagar, |
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Proposed Plant
Locations : |
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DIRECTORS
As on 31.03.2010
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Name : |
Mr. D.K. Jain |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Deepak Jain |
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Designation : |
Senior Executive Director |
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Name : |
Mr. Anmol Jain |
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Designation : |
Senior Executive Director |
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Name : |
Mr. Ikuo Abe |
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Designation : |
Senior Executive Director - |
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Name : |
Mr. Atsushi Ishii |
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Designation : |
Executive Director - |
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Name : |
Mr. Makio Natsusaka |
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Designation : |
Non- Executive Director - |
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Name : |
Mr. A.P. Gandhi |
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Designation : |
Independent Director |
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Name : |
Mr. Rattan Kapur |
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Designation : |
Independent Director |
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Name : |
Mr. Gursaran Singh |
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Designation : |
Independent Director |
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Name : |
Mr. Suman Jyoti Khaitan |
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Designation : |
Independent Director |
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Name : |
Mr. M.C. Gupta |
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Designation : |
Independent Director |
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Name : |
Mr. Dhiraj Dhar Gupta |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Naval Khanna |
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Designation : |
Group Finance Head |
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Name : |
Mr. B.S. Bhadauriya |
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Designation : |
Vice President (Legal) and Company Secretary |
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Name : |
Mr. Prem Pardasani |
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Designation : |
Vice President, New Product Development |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 11.02.2011
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Category of Shareholder |
No. of Shares |
Percentage of
holding |
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(A) Shareholding
of Promoter and Promoter Group |
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2,030,697 |
21.72 |
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954,426 |
10.21 |
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2,985,123 |
31.93 |
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3,902,257 |
41.75 |
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3,902,257 |
41.75 |
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Total
shareholding of Promoter and Promoter Group (A) |
6,887,380 |
73.68 |
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(B) Public
Shareholding |
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25,340 |
0.27 |
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400 |
- |
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55,220 |
0.59 |
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80,960 |
0.87 |
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814,575 |
8.71 |
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1,130,849 |
12.10 |
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414,102 |
4.43 |
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19,866 |
0.21 |
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5,927 |
0.06 |
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80 |
- |
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13,859 |
0.15 |
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2,379,392 |
25.45 |
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Total Public shareholding
(B) |
2,460,352 |
26.32 |
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Total (A)+(B) |
9,347,732 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total
(A)+(B)+(C) |
9,347,732 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturer and Supplier of Auto Components, Mainly Automotive Lighting Systems for Four Wheeler and Two Wheeler Applications. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Licensed
Capacity # |
Installed
Capacity # |
Actual
Production |
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Head Lamp Assembly |
Nos. |
N.A. |
9,775,000 |
7,793,370 |
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Tail Lamp Assembly/Rear Combination Lamp |
Nos. |
N.A. |
8,025,000 |
5,208,254 |
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# as certified by the management
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
1352 (Approximately) |
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Bankers : |
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Facilities : |
Notes: i) a) Term Loan
from Syndicate Bank amounting to Rs.262.500 millions (Previous year
Rs.350.000 millions) is secured by way of first charge on the plant and
machineries along with the unregistered equitable mortgage (UREM) on land and
building, situated at Chakan-II unit (except assets excusively hypothecated
to Banks and Body Corporates). b) Term Loan
from Syndicate Bank amounting to Rs.253.125 millions (Previous year Rs.270.000
millions) is secured by extension of charge by way of hypothecation on the
plant and machineries along with the UREM on land and building, situated at
Chakan-II unit. This facility is further secured by UREM of Dharuhera unit
along with hypothecation on plant and machinery of Dharuhera (both present
and future) and those of Gurgaon unit (acquired from proceeds of this
facility). c) Term Loans
from ABN AMRO Bank N.V. to the extent of Rs.33.125 millions (Previous year
Rs.94.375 millions) is secured by way of first pari passu charge on the land
and building alongwith all the plant and machineries, situated at Gurgaon
units, both present and future. ii) a) Relating
to cash credit facility from Citibank, N.A. secured by way of first
pari-passu charge on all present and future stock and book debts along with
paripassu charge on all fixed assets at Chinchwad unit and equitable mortgage
on land and building at Chinchwad unit, Rs.71.007 millions (Previous year
Rs.93.292 millions). b) Relating to
cash credit facility from IDBI Bank Limited secured by way of first
pari-passu charge on all current assets of the Company. This facility is
further secured by way of equitable mortgage on land and buildings and first
pari-passu charge against movable fixed assets at Chinchwad unit of the
Company, Rs.0.524 million (Previous year Rs Nil). c) Relating to
cash credit facilities from Syndicate Bank secured by way of first pari-passu
charge on all the stock and book debts of the Company, both present and future.
This facility is further secured by extension of charge by way of
hypothecation on the plant and machinery alongwith the UREM on Land and
Building situated at Chakan-II unit, Rs.21.959 millions (Previous year
Rs.95.410 millions). iii) a) Loans
from body corporate amounting to Rs.41.808 millions is secured against the
respective mould for which such loan has been granted. b) Loans from
body corporate amounting to Rs.93.345 millions (Previous year Rs.65.350
millions) are pending registration of charges. iv) Hire
purchase loans from banks aggregating to Rs.2.923 millions and from the body
corporates aggregating to Rs.3.468 millions are secured by way of
hypothecation of the respective vehicles acquired out of the proceeds
thereof. v) The following
loans are repayable within one year: - Installments
of term loans Rs.188.125 millions (Previous year Rs.164.375 millions). - Interest
accrued and due Rs.2.766 millions (Previous year Rs.0.872 million). - Hire purchase
loans from banks - Rs.2.036 millions (Previous year Rs.1.257 millions). - Hire purchase loans from body corporate - Rs.1.399 millions
(Previous year Rs.2.687 millions).
Note: Sales tax deferment
loan (interest free) from Director of Industries, Haryana Rs.39.300 millions
(Previous year Rs. 23.770 millions) and finance lease obligation of Rs.0.601
million (Previous year Rs.8.316 millions) are repayable within one year. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi and Associates Chartered Accountants |
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Address : |
Gurgaon, |
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Group Companies : |
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Associates : |
Stanley Electric Company Limited, |
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Joint Venture : |
SL Lumax Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9347732 |
Equity Shares |
Rs.10/- each |
Rs.93.477
millions |
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Of the above:
(i) 3,947,500
equity shares of Rs.10 each are allotted as fully paid-up bonus shares by
capitalization of the General Reserve.
(ii) 10,000 equity
shares of Rs.10 each were allotted as fully paid-up pursuant to contracts for
consideration other than cash.
(iii) 850,232
equity shares of Rs. 10 each were allotted as fully paid-up, pursuant to the
Scheme of Amalgamation with Laser Lamps (Haryana) Limited
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
93.477 |
93.477 |
93.477 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1337.918 |
1311.897 |
1340.123 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1431.395 |
1405.374 |
1433.600 |
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LOAN FUNDS |
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1] Secured Loans |
786.551 |
1041.792 |
552.467 |
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2] Unsecured Loans |
219.427 |
251.512 |
323.869 |
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TOTAL BORROWING |
1005.978 |
1293.304 |
876.336 |
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DEFERRED TAX LIABILITIES |
158.180 |
153.242 |
176.254 |
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TOTAL |
2595.553 |
2851.920 |
2486.190 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2398.571 |
2205.392 |
1376.095 |
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Capital work-in-progress including Capital Advances and Pre-operative
Expenditure (Net of Impairment) |
295.130 |
392.608 |
441.321 |
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INVESTMENT |
36.865 |
36.689 |
469.953 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
538.849
|
763.126 |
708.903 |
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Sundry Debtors |
780.498
|
624.177 |
689.617 |
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Cash & Bank Balances |
194.068
|
190.029 |
45.916 |
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Other Current Assets |
23.174
|
50.735 |
9.554 |
|
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Loans & Advances |
277.078
|
287.536 |
167.621 |
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Total
Current Assets |
1813.667
|
1915.603 |
1621.611 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
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|
Sundry Creditors |
1405.975
|
1246.151 |
1015.370 |
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Other Current Liabilities |
451.154
|
382.882 |
306.354 |
|
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Provisions |
91.551
|
69.339 |
101.126 |
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Total
Current Liabilities |
1948.680
|
1698.372 |
1422.850 |
|
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Net Current Assets |
(135.013)
|
217.231 |
198.761 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.060 |
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TOTAL |
2595.553 |
2851.920 |
2486.190 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
6341.538 |
5230.821 |
5219.777 |
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Other Income |
76.610 |
61.799 |
118.734 |
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TOTAL (A) |
6418.148 |
5292.620 |
5338.511 |
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Less |
EXPENSES |
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|
Purchase of Trading Goods |
65.359 |
93.853 |
644.626 |
|
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|
Raw Materials and Components Consumed |
4158.759 |
3281.030 |
3139.598 |
|
|
|
Cost of |
330.787 |
293.422 |
27.007 |
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|
Personnel Expenses |
590.620 |
543.491 |
463.259 |
|
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|
Operating and other Expenses |
739.675 |
716.716 |
690.123 |
|
|
|
Decrease in Inventories |
13.701 |
84.988 |
(86.482) |
|
|
|
Prior period items |
1.686 |
0.837 |
1.736 |
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|
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TOTAL (B) |
5900.587 |
5014.337 |
4879.867 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
517.561 |
278.283 |
458.644 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
113.197 |
92.463 |
65.122 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
404.364 |
185.820 |
393.522 |
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|
|
|
|
|
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|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
340.540 |
222.255 |
191.576 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
63.824 |
(36.435) |
201.946 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4.559 |
(20.246) |
60.475 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
59.265 |
(16.189) |
141.471 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
28.371 |
55.496 |
55.062 |
|
|
|
Less:
Impact of Revised AS-15 |
-- |
-- |
(17.292) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
28.043 |
9.348 |
37.391 |
|
|
|
Tax on Dividend |
4.658 |
1.588 |
6.354 |
|
|
|
Transfer to General Reserve |
6.000 |
0.000 |
80.000 |
|
|
BALANCE CARRIED
TO THE B/S |
48.935 |
28.371 |
55.496 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of manufactured goods at F.O.B. Value |
124.451 |
130.126 |
104.110 |
|
|
|
Recovery of Testing Charges |
3.081 |
1.502 |
1.983 |
|
|
TOTAL EARNINGS |
127.532 |
131.628 |
106.093 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
753.722 |
921.957 |
689.602 |
|
|
|
Components and Stores & Spares |
6.972 |
7.633 |
10.028 |
|
|
|
Capital Goods |
186.627 |
949.689 |
226.606 |
|
|
TOTAL IMPORTS |
947.321 |
1879.279 |
926.236 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.34 |
(1.73) |
15.30 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1751.380 |
2116.480 |
2166.480 |
|
Total Expenditure |
1610.420 |
1962.190 |
1995.130 |
|
PBIDT (Excl OI) |
140.960 |
154.290 |
171.350 |
|
Other Income |
7.050 |
5.470 |
6.380 |
|
Operating Profit |
148.010 |
159.760 |
177.730 |
|
Interest |
22.520 |
22.700 |
27.780 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
125.490 |
137.060 |
149.950 |
|
Depreciation |
64.960 |
70.520 |
70.250 |
|
Profit Before Tax |
60.530 |
66.540 |
79.700 |
|
Tax |
12.600 |
21.300 |
19.580 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
47.930 |
45.240 |
60.120 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
47.930 |
45.240 |
60.120 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.92
|
(0.31) |
2.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.01
|
(0.70) |
3.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.52
|
(0.88) |
6.74 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
(0.03) |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.06
|
2.13 |
1.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.93
|
1.13 |
1.14 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS PERFORMANCE
The global financial
crises in the auto industry, which began during the latter half of 2008, was
also aggravated by the substantially more expensive auto fuels linked to the
2003-08 oil crises . The related credit crunch put a lot of pressure on raw
material prices, and their availability. But once again,
During the year
2009-10, the recovery in the automobile sector in
As the Company's
business is directly dependent on the Original Equipment Manufacturer(s) of
Automobiles (OEMs), consequently, in this background, during the year the
Company has achieved a 21.23 percent growth in the Annual Sales by clocking the
sales of Rs.6341.540 millions as compared to Rs.5230.820 millions in the
previous year ended March 31, 2009.
The Company posted
Earnings Before Depreciation, Interest and Tax (EBDITA) of Rs.517.560 Millions
for the year ended March 31st 2010 as against Rs.278.270 millions in the
previous year an increase of 86% as compared to the previous year.
The Directors are
pleased to inform you that as compared to Loss of Rs.16.190 millions during the
previous year, the company has posted a Profit After Tax of Rs.59.270 millions.
The improvement on margins was accomplished through better sales realizations,
effective cost rationalization measures which included better control over the
material cost and overheads cost, apart from the sharp focus on operational
efficiencies.
Further, pursuant
to completion of negotiations with customer in relation with the company's
investment in a plant in Singur,
RECOGNITION AND AWARDS
The Company’s
commitment on continuous improvement in quality and TQM practices is being
recognized and appreciated by the Customers, as a result of which the Company
has received the following awards and recognitions from Customers and other
Agencies during the year:
·
Silver Trophy for “Manufacturing Excellence” from
ACMA.
·
“Tier – 2 Upgradation” Award by Maruti Suzuki India
Limited
·
Best Product Development Award by Mahindra and
Mahindra.
·
Dharuhera Unit got 85% marks in Annual Vendor
System Audit by Maruti Suzuki India Limited in 2009-10 against 81% marks in the
last year.
·
Vendor performance Award by Maruti Suzuki India
Limited
·
“Golden Leaf Award for ECO Profit” by Society for
enhancing sustainability and value of organisation.
·
Quality Award for Zero PPM from
·
Participation Award from Hero Honda Motors Limited
for implementation of Green Vendor Development Programme.
NATURE OF OPERATIONS
The Company is a
manufacturer and supplier of auto components, mainly automotive lighting
systems for four wheeler and two wheeler applications. The Company has
technical as well as financial collaboration with Stanley Electric Company
Limited,
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRYSTRUCTURE, DEVELOPMENTS AND OUTLOOK
ECONOMIC ENVIRONMENT
The fiscal year
2009-10 began as a difficult one. There was a significant slowdown in the
growth rate in the second half of 2008-09, following the financial crisis that
began in the industrialized nations in 2007 and spread to the real economy
across the world. The growth rate of the Gross Domestic Product (GDP) in
2008-09 was 6.7 per cent, with growth in the last two quarters hovering around
6 per cent.
There was
apprehension that this trend would persist for some time, as the full impact of
the economic slowdown in the developed world worked through the system. It was
also a year of reckoning for the policy makers, who had taken a calculated risk
in providing substantial fiscal expansion to counter the negative fallout of
the global slowdown.
The continued
recession in the developed world, for the better part of 2009-10, meant a
sluggish export recovery and a slowdown in financial flows into the economy.
Yet, over the span of the year, the economy posted a remarkable recovery, not
only in terms of overall growth figures but, more importantly, in terms of
certain fundamentals, which justify optimism for the Indian economy in the
medium to long term. The real turnaround came in the second quarter of 2009-10
when the economy grew by 7.9 per cent, thereafter 8.60% in the fourth quarter
and 7.40% for the full year.
The fast-paced
recovery of the economy underscores the effectiveness of the policy response of
the Government in the wake of the financial crisis. Moreover, the broad- based
nature of the recovery creates scope for a gradual rollback, in due course, of
some of the measures undertaken over the last fifteen to eighteen months, as
part of the policy response to the global slowdown, so as to put the economy
back on to the growth path of 9 per cent per annum.
AUTO AND AUTO COMPONENT INDUSTRYOUTLOOK
On the canvas of the
Indian economy, automotive industry occupies a prominent place. Due to its deep
forward and backward linkages with several key segments of the economy,
automotive industry has a strong multiplier effect and is capable of being the
driver of economic growth. A sound transportation system plays a pivotal role
in the country's rapid economic and industrial development. The well-developed
Indian automotive industry fulfils this catalytic role by producing a wide
variety of vehicles viz passenger cars, light, medium and heavy commercial
vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds,
three wheelers, tractors etc.
Automotive
Industry comprises of automobile and auto component sectors and is one of the
key drivers of the national economy as it provides large-scale employment,
having a strong multiplier effect. Being one of the largest industries in
The Indian
Automobile sector showed a remarkable recovery in the year ended March 31, 2010
and it registered a growth of 25.76 percent this year, which is the highest
growth rate in the last seven years.
Passenger vehicle
production crossed two million units, of which Maruti itself produced one
million cars, while two – wheeler production crossed 10 million – unit mark.
Passenger vehicle
sales during 2009-10 grew at 25.57 percent, utility vehicles up by 20.88
percent and MPV's growing by 40.94% in this period. The overall Commercial
Vehicle segment was up by 38.31 percent during April 2009-10 as compared to the
same period the previous fiscal. Two – Wheeler sales were up by 26% and overall
exports during April 2009-2010 were up by 17.90%.
AUTO COMPONENT INDUSTRY
Surge in
Automobile Industry since the nineties has led to robust growth of the auto
component sector in the country. In tandem with the industry trends, the Indian
component sector has shown great advances in recent years in terms of growth,
spread, absorption of new technologies and flexibility. Indian auto component
industry has seen major growth with the arrival of world vehicle manufacturers
from
The
Original Equipment
Manufacturers (OEMs) have also taken into cognizance the humungous opportunity
in small car sub segment. Four out of the six launches in 2009 falls in small
car sub – segment, which includes Tata Nano, Maruti Ritz, Fiat Punto and Honda
Jazz. Only Tata Manza and Chevrolet Cruze fall in the mid size sub segment and
eight more launches are expected in the small car sub segment in the next 15-18
months.
Global Auto majors
have acknowledged
Additionally, the
Foreign Auto majors have either invested or are investing in setting up
Research and Development (R and D) centres in
The focus of the
global auto majors on
The Company is
well placed with having five existing plants with huge manufacturing capacities
and adding up three more facilities – (i) One in Haridawar - (already commenced
production in March 2010), (ii) Second in Sanand, Gujarat and (iii) Third in
Bidadi, Bangalore to cater the growing demand in the automotive sector.
The growing
opportunity in the Indian Auto Industry with the emergence of foreign auto majors,
the Indian Auto Component Industry has also to face challenges in the form of
increasing insistence and demand from these Customers for Warranty Claims and
Product Liability commitments. However, the Indian Component Industry is
accepting the challenges of these commitments and at the same time focusing on
delivery of excellent quality products to its customers. The other challenges
being faced by the Auto Component Industry are presence of counterfeit
components, pressure from OEMs to reduce prices, volatile environment, volatile
interest rate movements, talent crunch and competition.
The Company
propose to convert the opportunities into growth of the Company by focusing on
Product Quality, Design, cost reduction measures, appropriate automation leading
to economic production costs and consistent quality product, strengthening I.T
capability for Design, Development and Simulation, process improvements,
quality up-gradations, increase market share by diversifying existing customer
base with the addition of new strategic customers and enhancing the existing
relationship.
DISCUSSION ON FINANCIALPERFORMANCE WITH REFERENCE
TO OPERATIONALPERFORMANCE
The Indian
Automotive Industry registered a remarkable growth in nearly all segments
during the financial year ended March 31, 2010. The production of Automobiles
in this financial year has grown 25.76% in the year ended March 31, 2010 as
compared to the last year ended in March 31, 2009.
UNAUDITED FINANCIAL RESULTS FOR THE NINE
MONTHS/ QUARTER ENDED 31ST DECEMBER, 2010
(Rs. in millions)
|
Particulars |
Quarter Ended (Unaudited) |
Nine Months Ended (Unaudited) |
|
31.12.2010 |
31.12.2010 |
|
|
1 (a) Net Sales/ Income from Operations |
2159.184 |
6000.023 |
|
(b) Other Operating Income |
7.291 |
32.517 |
|
Total Income |
2166.475 |
6032.540 |
|
2 Expenditure |
|
|
|
(a) (Increase)/Decrease in Stocks |
(28.247) |
(21.469) |
|
(b) Consumption of Raw Materials |
1573.684 |
4260.209 |
|
(c) Purchase of Goods for Resale |
9.512 |
49.604 |
|
(d) Purchases of Moulds, Tools & Dies |
9.968 |
58.669 |
|
(e) Employees Cost |
168.545 |
480.423 |
|
(f) Depreciation / Amortisation / Impairment |
70.253 |
205.734 |
|
(g) Other Expenditure |
261.669 |
738.066 |
|
Total Expenditure |
2065.384 |
5771.236 |
|
3 Profit from Operation before Other Income & Interest (1-2) |
101.091 |
261.304 |
|
4 Other Income |
6.381 |
18.465 |
|
5 Profit before Interest (3+4) |
107.472 |
279.769 |
|
6 Interest |
27.775 |
73.002 |
|
7 Profit before tax (5-6) |
79.697 |
206.767 |
|
8 Provision for Tax — Current Tax |
-- |
-- |
|
— Minimum Alternate Tax(MAT) |
16.000 |
41.000 |
|
— Less: MAT Credit entitlement |
(16.000) |
(41.000) |
|
— Deferred Tax Charge / (Credit) |
19.580 |
53.483 |
|
— Fringe Benefit Tax |
-- |
-- |
|
9 Net Profit) (loss) (7-8) |
60.117 |
153.284 |
|
10 Paid up Equity Shares Capital of 10/- each |
93.477 |
93.477 |
|
11 Reserve excluding Revaluation Reserves |
-- |
-- |
|
12 Earning per Share (EPS) |
|
|
|
Basic and Diluted EPS (in Rs.) |
6.43 |
16.40 |
|
13 Aggregate of Public Shareholding |
|
|
|
a) No. of Shares (Nos.) |
2460352 |
2460352 |
|
b) Percentage of Shareholding (%) |
26.32 |
26.32 |
|
14 Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
— Number of Shares |
NIL |
NIL |
|
— Percentage of Shares (as a % of the total shareholding of promoters 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 |
6887380 |
6887380 |
|
Percentage of Shares (as a % of the total shareholding of promoters and promoter group) |
100% |
100% |
|
— Percentage of Shares (as a % of the total share capital of the company) |
73.68% |
73.68% |
NOTES:-
1. The above results for the quarter ended December 31, 2010 have been reviewed by the Auditors and were taken on record at the Board of Directors Meeting held on January 29, 2011.
2. The Company’s business activity falls within a single business segment i.e. manufacture of Automotive Components and therefore, segment reporting in terms of Accounting Standard 17 on Segmental Reporting is not applicable.
3. There was no investor complaint pending at the beginning of the quarter. During the quarter ended December 31, 2010,
10 investor complaints were received and 8 were suitably disposed off and 2 complaints are pending as on quarter ended December 31, 2010.
4. The Company has set up Automotive Components production
facility in
5. The company has entered into a Lease Deed dated July 17,2010 with one of its Customer for use of industrial land for 35 years, where the company is currently setting up a manufacturing unit, the agreed lease rentals whereof would be payable in subsequent periods. The statutory auditors have reported in their report for the quarter ended December31, 2010 that these lease rights would need to be capitalized as Lease rights for the total rentals payable of Rs.232.900 millions over the 35 years period and amortized equally over the said period commencing from the effective date of lease i.e. May 5, 2009. Had the amortization been carried out in this manner, the amortization would have been Rs.11.100 millions having consequential impact on the reported profits being lower by Rs.11.100 millions in these financial results for the quarter and nine months period ended December 31, 2010.
6. Previous Year / Nine Months / Quarter Figures have been regrouped / recasted wherever necessary, to make them comparable.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
31.03.2010 (Rs.
in millions) |
|
(i) Bills of exchange discounted from a bank. |
136.109 |
|
(ii) Demand
raised by Central Excise department against the rejected goods sent on 57(f)
(4) challans, being disputed by the Company. |
7.755 |
|
(iii) Other Excise Duty Demands, being disputed by the Company. |
2.027 |
|
iv) Demand raised
by Service Tax department for the service tax on Royalty and Technical know
how, being disputed by the Company. |
3.452 |
|
(v) Demand
raised by ESIC department against short contribution paid by the Company,
being disputed by the Company. |
2.880 |
|
(vi) Demand
raised by Sales Tax Authorities against purchase tax on inter-unit stock
transfers, being disputed by the Company. |
1.736 |
|
(vii) Various
other claims made against the Company not acknowledged as debts, being
disputed by the Company. |
0.391 |
|
(viii) Income
Tax demand in respect of Assessment Year 2004-05 for which the Company has
filed an appeal with CIT (Appeals). |
2.375 |
|
(ix) Income Tax
demand in respect of Assessment Year 2005-06 for which the Company has filed
an appeal with CIT (Appeals). |
27.885 |
|
(x) Income Tax
demand in respect of Assessment Year 2006-07 for which the Company has filed
an appeal before Dispute Resolution Panel against the draft order. |
12.831 |
|
(xi) Demand raised
by BSES Rajdhani Power Limited for which the Company has filed a writ
petition in High Court of Delhi. |
2.261 |
|
(xii) Export
Obligation to be undertaken by the Company under EPCG licenses. |
17.677 |
|
(xiii) Claims against the Company not acknowledged as debts. |
6.870 |
FIXED ASSETS:
·
·
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Computer Software
· Technical Knowhow
WEBSITE DETAILS:
OVERVIEW:
As the most experienced automotive lighting solutions
company in
Lumax strives for continual improvement of manufacturing processes with
emphasis on consistent quality and cost effectiveness. Lumax signifies
LUMINOSITY MAXIMA for today's demanding automobile users.
Lumax has come a long way since its inception as a trading company in the year
1945, under the aegis of its founder Late Sh. S.C. Jain . Today Lumax accounts
for over 60%
market share in Indian Automobile Lighting Business, fueled in
no small measure by its more than two decade old technical and financial
collaboration with
Lumax has six
ultra modern manufacturing plants in
Lumax has a futuristic vision with an experienced and customer focused
management team. This is clearly evident from their financial growth which has
seen a steady upward trend right since their inception. Lumax posted a growth of over
39% in 2004-05, despite a de-merger from its mirror and filters
businesses. Automotive Lighting now enjoys a singular focus at subject.
Lumax facilities are manned by over a 1352 (31-03-2010) highly skilled and specialized
personnel composed of associates, executives and managers.
Lumax is listed on major stock exchanges in
HISTORY:
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LUMAX has grown from success to success since its foundation in the year 1945 . The company went Public in the Year 1984 , and thus in the same year embarked on its highly successful technical collaboration with Stanley, Japan .Ten years of highly rewarding partnership resulted in Stanley picking up financial stake in Lumax in the year 1994.
Lumax became an ISO 9002 certified company in 1995, attained its QS 9000
certification in the year 1998 and achieved the ISO/TS 16949: 2002 and
ISO 14001 in 2003 . In the same year subject de-merged from its Mirror
and Filter Division, there-by focusing on its core competency of producing
stellar Automotive Lighting Products.
Lumax has a futuristic vision with an experienced and customer focused
management team. This is clearly evident from their financial growth which has
seen a steady upward trend right since their inception. Lumax posted a growth
of over 30% in the year 2003-04, despite a de-merger from its mirror and
filters businesses. Automotive Lighting now enjoys a singular focus at subject.
Lumax strives for continual improvement of manufacturing processes with
emphasis on consistent quality and cost effectiveness. Lumax signifies LUMINOSITY
MAXIMA for today's demanding automobile users.
They at Lumax in the new millennium, are committed to retain excellence in
quality of their products and services, with focus on customer satisfaction and
market leadership. They vow to remain a responsible corporate citizen,
contributing to the lives of their people and the preservations of their
Planet's eco-balance. They extend theirselves as the partner in growth.
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.45.21 |
|
|
1 |
Rs.72.55 |
|
Euro |
1 |
Rs.62.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
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.