MIRA INFORM REPORT

 

 

Report Date :

14.05.2011

 

 

IDENTIFICATION DETAILS

 

Name :

WABCO - TVS (INDIA) LIMITED

 

 

Registered Office :

Plot No.3 (SP), III Main Road, Ambattur Industrial Estate, Chennai - 600 058, Tamil Nadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.11.2004

 

 

Com. Reg. No.:

18-54667

 

 

Capital Investment / Paid-up Capital :

Rs.94.838 millions

 

 

CIN No.:

[Company Identification No.]

L34103TN2004PLC054667

 

 

Legal Form :

Public Limited Company. The Company's shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of air-assisted and air brake systems for commercial vehicles.

 

 

No. of Employees :

1026 (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 10800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between TVS Group, India and Wabco Holding Inc., USA.

 

It is a well established and reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessman. Their trade relations are fair. 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 – 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/ Factory :

Plot No.3 (SP), III Main Road, Ambattur Industrial Estate, Chennai - 600 058, Tamil Nadu , India

Tel. No.:

91-44-26238000 / 42242000

Fax No.:

91-44-26238009 / 26241278

E-Mail :

corpsec@scl.co.in

madhavan.rajagopalan@wabco-tvs.co.in

Website :

www.wabco-tvs.com

 

 

Factory 1 :

Plot No. AA8, Central Avenue, Auto Ancillary SEZ, Mahindra World City, Natham Sub-post, Chengalpet, Kancheepuram District- 603002

Tel. No.:

91-044-47442000

Fax No.:

91-44-47490006

 

 

Factory 2 :

Large Sector, Adityapur Industrial Area, Gamharia, Seraikella-Kharsawan District,  Jharkhand-832108

Tel. No.:

91-657-2387996

Fax No.:

91-657-2387997

 

 

Software Design Centers :

"Ispahan! Centre", 7th Floor, 123/124 Nungambakkam High Road, Chennai - 600 034

 

Tel. No.:

91-44-28285000

Fax No.:

91-44-28332212

 

 

Software Design Centers-2 :

Module No. 1107, D Block 11th Floor, Tidel Park No. 04 Rajiv Gandhi Salai,

Taramani, Chennai - 600 113, India

Tel. No.:

91-44-22545700

Fax No.:

91-44-22540909

 

 

DIRECTORS

As on 31.03.2010

 

Name :

Mr. Venu Srinivasan 

Designation :

Chairman

 

 

Name :

Mr. Leon Liu

Designation :

Director     

 

 

Name :

Mr. Nikhil Madhukar Varty

Designation :

Director    

 

 

Name :

Mr. D E Udwadia

Designation :

Director    

 

 

Name :

Mr. Narayan Seshadri

Designation :

Director    

 

 

Name :

Mr. Trevor Lucas

Designation :

Director    

 

 

Name :

Mr. C N Prasad

Designation :

Director    

 

 

Name :

Mr. Kurt Lehmann

Designation :

Director    

 

 

Name :

Mr. P Kaniappan

Designation :

Whole Time Director    

 

 

KEY EXECUTIVES

 

Name :

Mr. T S Rajaghopalan

Designation :

Chief Financial officer

 

 

Name :

Mr. R Madhvan

Designation :

General Manager and Secretary

 

 

Audit Committee :

 

 

Mr. Narayan K Sheshadri

Mr. D E Udwadia

Mr. P Kaniappan

 

 

Investor Grievances Committee :

 

Mr. Narayan K Sheshadri

Mr. C N Prasad

Mr. P Kaniappan

 

 

 

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

 

 

(2) Foreign

 

 

Bodies Corporate

14,225,684

75.00

Sub Total

14,225,684

75.00

Total shareholding of Promoter and Promoter Group (A)

14,225,684

75.00

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,048,085

10.80

Financial Institutions / Banks

302

-

Insurance Companies

100

-

Foreign Institutional Investors

372,556

1.96

Sub Total

2,421,043

12.76

(2) Non-Institutions

 

 

Bodies Corporate

312,021

1.65

Individuals

 

 

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

1,682,829

8.87

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

297,774

1.57

Any Others (Specify)

28,233

0.15

Non Resident Indians

28,233

0.15

Sub Total

2,320,857

12.24

Total Public shareholding (B)

4,741,900

25.00

Total (A)+(B)

18,967,584

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)

18,967,584

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of air-assisted and air brake systems for commercial vehicles.

 

 

Products :

Generic Names of principal Products of Company as on 31.03.2009

Item Code No. (ITC Code)

Product Description

8708

Air assist and full air actuation systems for automotive and non–automotive applications and elements thereof

 

 

GENERAL INFORMATION

 

Customers :

As on 31.03.2009

 

·         Force

·         Ashok Leyland Beml

·         Mahindra

·         Tata Motors

·         Volvo

·         Tafe

·         Swaraj Mazda

·         Caterpillar

 

 

No. of Employees :

1026 (Approximately)

 

 

Bankers :

State Bank of India, Corporate Accounts Group Branch, Greams Dugar, Greams Road, Chennai – 600 008, Tamil Nadu, India

 

 

Facilities :

Secured Loans

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions

From Banks

 

 

Secured by hypothecation of raw materials, components, work in process, finished goods, book debts, stores, spares and tools.

71.923

352.044

Secured by hypothecation of specific plant and machinery

0.000

200.000

Total

71.923

552.044

Un Secured Loans

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions

From Bank Short Term

0.000

50.000

Total

0.000

50.000

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Sundaram and Srinivasan

Chartered Accountants

Address :

23, Sir C P Ramaswamy Road, Alwarpet, Chennai – 600 018, Tamil Nadu, India

 

 

Associates/Subsidiaries :

Associates Company:

·         Sundaram Industries Limited, Madurai

·         Southern Roadways Limited, Madurai

·         T V Sundram lyengar and Sons Limited, Madurai

·         Clayton Dewandre Holdings Limited, Rotterdam, The Netherlands.

 

Holding Company:

 

·         Clayton Dewandre Holdings Limited, Rotterdam, The Netherlands

(became a holding company of this company from 3rd June 2009.

 

Ultimate Holding Company:

·         Wabco Holding Inc., USA

 

Fellow Subsidiary:

 

·         WABCO Fahrzeugbremsen, Germany

·         WABCO China Company Limited , China

·         WABCO France SAS, France

·         Meritor WABCO Vehicle Control Systems, USA

·         Shandong Wieming Automotive Product Company  Limited , China

·         WABCO (Shanghai) Management Company Limited, China

·         WABCO Automotive, South Africa

·         WABCO Automotive UK Limited , United Kingdom

·         WABCO Australia Pty Limited, Australia

·         WABCO Compressor Mfg. Company  USA

·         WABCO Hong Kong Limited, Hong Kong

·         WABCO Japan Inc, Japan

·         WABCO Korea Limited , Korea

·         WABCO Polska Zoo, Poland

·         WABCO Development Gmbh, Germany

·         WABCO Logistics GmbH, Germany

·         WABCO Asia Private Limited , Singapore

·         WABCO Europe BVBA, Belgium

·         WABCO Austria GesmbH, Austria

·         WABCO Belgium BVBA/SPRL, Belgium

·         WABCO Do Brasil Industria E Comercio DE freios Limited , Brazil

·         WABCO Brzdy K Vozidlum spoi S.R.O, Czeh Republic

·         WABCO Gmbh, Germany

·         WABCO Radbremsen Gmbh, Germany

·         WABCO Automotive Italia SRL, Italy

·         WABCO BV, Netherlands

·         WABCO Europe Holdings BV, Netherlands

·         WABCO Espana SLU, Spain

·         WABCO Automotive AB, Sweden

·         WABCO (Schweiz) GmbH, Switzerland

·         WABCO Automotive B.V. Netherlands

·         WABCO ARAC Kontrols Sistemleri Destek VE Pazarlama Limited Sirketi, Turkey

·         WABCO Middle East and Africa FZCO, Dubai

·         WABCO Centro de Distribuicao de Pecas Automotive Limited, Brazil

 

 

CAPITAL STRUCTURE

 

as on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs.5/- each

Rs. 100.000 million

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

18967584

Equity Shares

Rs.5/- each

Rs.94.838 millions

 

 

 

Notes:-

 

 

  • Pursuant to the scheme of demerger of Brakes division into the company from Sundaram-Clayton Limited, Chennai.(SCL) the shareholders of SCL are entitled for allotment of 1,89,67,584 Equity Shares of Rs. 5/- each fully paid up for consideration other than in cash.
  • These shares are deemed to be issued, subscribed and fully paid up in terms of the scheme of arrangement. These shares were allotted on 7th May 2008.
  • On 3rd June 2009, M/s Clayton Dewandre Holdings Limited, Rotterdam, The Netherlands (CDH) acquired 6795684 equity shares of Rs. 5/-each fully paid up in the company. Consequently the aggregate number of equity shares held in the company stood at 14,42,25,684 equity shares. Thus the company became a subsidiary of CDH on and from the above date.

 

 

 

 

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

94.838

94.838

94.838

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2608.352

1881.752

1582.010

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2703.190

1976.590

1676.848

LOAN FUNDS

 

 

 

1] Secured Loans

71.923

552.044

202.338

2] Unsecured Loans

0.000

50.000

0.006

TOTAL BORROWING

71.923

602.044

202.344

DEFERRED TAX LIABILITIES

32.457

39.993

32.360

 

 

 

 

TOTAL

2807.570

2618.627

1911.552

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1801.603

1913.957

1697.558

Capital work-in-progress

66.131

38.837

43.145

 

 

 

 

INVESTMENT

22.024

90.069

86.578

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
460.675
463.040

310.250

 

Sundry Debtors
1314.315
702.603

757.789

 

Cash & Bank Balances
23.828
12.791

116.327

 

Other Current Assets
0.455
0.886

1.723

 

Loans & Advances
197.369
109.226

153.629

Total Current Assets
1996.642

1288.546

1339.718

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

861.026
535.760

983.893

 

Other Liabilities
0.000
0.000

0.000

 

Provisions
217.804
177.022

271.554

Total Current Liabilities
1078.830

712.782

1255.447

Net Current Assets
917.812

575.764

84.271

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2807.570

2618.627

1911.552

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

5912.580

4259.458

5343.391

 

 

Other Income

182.102

198.320

122.116

 

 

TOTAL                                     (A)

6094.682

4457.778

5465.507

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials Consumed

3302.405

2461.778

3062.222

 

 

Salaries and Wages, Stores consumed and other expenses

1435.568

1262.589

1225.581

 

 

TOTAL                                     (B)

4737.973

3724.367

4287.803

 

 

 

 

 

Less

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

1356.709

733.411

1177.704

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

28.941

68.542

32.868

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1327.768

664.869

114.836

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

144.449

139.321

101.171

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1183.319

525.548

1043.665

 

 

 

 

 

Less

TAX                                                                  (I)

397.464

170.327

345.259

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

785.855

355.221

698.406

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

515.652

251.510

(0.074)

 

 

 

 

 

Add

Sundaram –Clayton Limited, Chennai (SCL) as on 01.01.2007

0.000

0.000

321.458

 

Profit after tax for three months from 01.01.2007 to 31.03.2007

0.000

0.000

22.055

 

 

 

 

 

 

 

 

 

 

Less

Tax Relating to earlier years

3.959

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

78.586

35.600

546.788

 

 

Proposed Dividend

47.420

0.000

0.000

 

 

Dividend Tax Payable

7.876

0.000

16.037

 

 

Interim Dividend Paid

0.000

47.420

94.363

 

 

Interim Dividend Payable

0.000

0.000

113.806

 

 

Dividend Tax Payable

0.000

8.059

19.341

 

BALANCE CARRIED TO THE B/S

1163.666

515.652

251.510

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export (on FOB basis)

536.731

343.318

186.346

 

 

Freight and insurance recovery

15.817

10.044

6.729

 

 

Software service

99.774

104.140

76.756

 

 

R and D service

8.743

37.340

2.996

 

 

Others

99.530

66.222

9.330

 

TOTAL EARNINGS

760.595

561.064

282.157

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

411.547

314.755

335.640

 

 

Spares, stores and components

14.976

19.388

20.582

 

 

Capital Goods

15.453

74.382

182.112

 

TOTAL IMPORTS

441.976

408.525

538.334

 

 

 

 

 

 

Earnings Per Share (Rs.)

41.43

18.73

36.82

 

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2010

(1ST Quarter)

30.09.2010

(2nd Quarter)

31.12.2010

(3rd Quarter)

Net Sales 

2023.750

2259.380

2186.180

Total Expenditure

1591.640

1728.460

1691.240

PBIDT (Excl Ol)

432.110

530.920

494.940

Other Income

6.360

9.090

12.500

Operating Profit

438.470

540.010

507.440

Interest

0.170

1.420

0.000

Exceptional Items

0.000

0.000

0.000

PBDT

438.310

538.590

507.440

Depreciation

35.750

36.130

35.170

Profit Before Tax

402.560

502.460

472.270

Tax

122.690

164.590

159.950

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

279.860

337.870

312.320

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

279.860

337.870

312.320

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
12.89
7.97

12.79

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
20.01
12.34

19.53

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
31.15
16.41

34.36

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.44
0.26

0.62

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.42
0.67

0.87

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.85
1.81

1.07

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Contingent Liability:

 

Particulars

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions)

On counter guarantee given to bankers

0.180

5.903

On letter of credit opened with bankers

1.505

1.861

Capital commitments not provided

30.812

8.293

On account of future export obligations (Under Export Promotion Capital Goods Scheme and Advance Licence)

32.743

191.323

Bills discounted

747.049

296.648

Total

812.289

504.028

 

 

Fixed Assets:

 

·         Land

·         Leasehold Land

·         Plant and Machinery

·         Dies and Jigs

·         Vehicles

·         Furniture and Fixtures and Equipments

 

 

PERFORMANCE

 

During the year 2009-10, the sales of medium and heavy commercial vehicles (MHCV) registered a positive growth of 33% over the previous year 2008-09 and the sale of light commercial vehicles (LCV) registered a positive growth of 37% during the same period. Overall, the commercial vehicle (CV) industry ended with a positive growth of 35% over the previous year.

 

During the year, the Company achieved a total turnover of Rs 6090.000 Millions as against turnover of Rs 4460.000 Millions registered a growth of 37%. The growth in the turnover is due to improved economy resulted in growth in CV industry as explained in the above paragraph and also increased sales from aftermarket and exports.

 

The Company has outperformed MHCV market growth in OE through,

 

a. Increased content per sale; and

b. Improved market share

 

Future plan of action:

 

Development and launch of following products:

 

  • Fourteen valve devices for North American OEMs.
  • Products for door control system for European market door cylinder, solenoid control valve and emergency valve.
  • Next generation Foot Brake Valve for European customer with internal pressure limiting feature.
  • Value engineered Foot Brake Valve with integrated switch for Indian customers.
  • New graduated hand control valve conforming to ECE R13 regulations for Indian customers.
  • Concept development of simplified ECAS solution for Indian and Asian market.
  • DDSBA for 'S' Cam brakes for US market.
  • Brake chambers for US market.
  • Long stroke type 24/24 Spring Brake Actuator and Brake Chamber for Indian market.
  • Value engineered Spring Brake Actuator for Indian Market.
  • ASA variants for Indian customers.
  • Compressor with energy saving feature for European and Indian customer engines in various capacity ranges from 230 cm3 to 460 cm3.
  • Value engineered condenser oil separator for Indian/ global markets.
  • Integral pedal unit for Indian customers.
  • Clutch servo for Russian customer.
  • Clutch master cylinder for US/ Brazilian markets.
  • Value engineered clutch master cylinder.
  • Value engineered clutch servo.
  • Pneumatic clutch actuator.
  • Introduction of Electronically Controlled Braking System (EBS) to Indian customers for enhanced safety.

·         Production level introduction of AMT for Indian vehicles.

  • Rubber seals resistant to chemical attack from oil

 

Management Discussion and Analysis Report:

 

As addressed in last year's Management Discussion and Analysis Report, during the year 2009-10, WABCO Holdings Inc., USA a global technology leader and tier-one supplier to the commercial vehicle industry, raised its ownership position through indirectly owned subsidiary M/s Clayton Dewandre Holdings Ltd, UK to 75 percent in WABCO-TVS (India) Limited (WTIL).

 

Post the global financial crisis and general economic slowdown, during the year, WTIL, the leader in the automotive air and air assisted brake actuation systems for the commercial vehicle industry in India, recorded its best ever performance.

 

The Company recorded all time high sales of Rs. 6090.000 Millions during 2009-10 as against Rs. 4460.000 Millions in 2008-09, registering a growth of 37%. Profit before tax also recorded all time high at Rs.1180.000 Millions as against Rs.520.000 Millions in the previous year, representing an increase of 127%.

 

I. Industry Structure and Development:

 

After coming-out of global recession, the Indian economy recorded a strong performance during 2009-10 especially in H2 of FY 2009-10. In spite of negative growth in agricultural sector, GDP is expected to register a 7.5% growth, facilitated by much improved 9.4% growth in industrial production and 8.3% growth in the services sector. However, inflation is reported to be increasing and is expected to be around at 4% for the year.

 

In order to improve the economy, the Government has taken various measures including stimulus measures like Excise duty reduction, investment in infrastructure projects, special focus on urban development through JNNURM project, reduced interest rate, improved lending etc., resulted in increase in commercial vehicles production / sales in 2009-10.

 

 

Indian companies are gaining recognition as manufacturers of high quality automotive components in the international market. Presence of global players like VOLVO, MAN, Navistar and Daimler will drive technology in their Market. Exports are expected to grow, driven by the cost management factors of international manufacturers to source from cost-effective countries which are expected to benefit the Company's businesses.

 

II. Business outlook and overview

 

In 2010-11, GDP growth will be propelled by a strong performance by the Industrial sector and a robust recovery

in the Agricultural and allied sectors. The services sector too is expected to do well. The industrial sector is projected to grow by 9.6% mainly due to growth in manufacturing sector. Agriculture sector is expected to grow at 5.8% and Services sector is expected to grow at 9.8%.

 

This improved outlook of the economy is expected to have positive impact in the automotive sector, which will see a growth in 2010-11. The increased infrastructure development projects in the domestic market and increase in agricultural output will result in improved freight demand availability, the MHCV industry is likely to register a positive growth of 10 ~ 12% in the year 2010-11.

 

Operations review

 

  1. Manufacturing

 

In the year 2007-08 the company made operational its new manufacturing facility in a Special Economic Zone (SEZ) at 'Mahindra World City' near Chennai. During the year 2009-10, the company had the full benefit of the plant and is expected to bring additional revenue growth during the coming years.

 

To meet the challenges of emerging competition and to serve the customers better, the Company had already set-up a manufacturing facility in Jamshedpur nearer to a major customer plant. The Company is working on a business case to open one more plant in the western sector to service customers in that region.

 

The Company's manufacturing facilities follow the best practices such as Total Quality Management (TQM), Total Productive Maintenance (TPM) and Lean Manufacturing and has best-in-class practices for safety, work environment, water and energy conservation. These initiatives are deployed company wide to achieve significant improvement in productivity and reduction in manufacturing cost.

 

Continuous improvement actions are implemented to improve manufacturing quality and productivity in all the manufacturing locations.

 

During the year, the Company obtained "Super Platinum" award, for its manufacturing excellence from Frost & Sullivan.

 

  1. Quality

 

The quality system at the factory aims at achieving total customer satisfaction through its focus on improving product quality to World standards. This is achieved through total employee involvement and continuous improvement culture. Rigorous usage of poka-yokes, utilization of statistical tools for process optimization and control also contribute towards improving the product quality.

 

The standardization of the quality procedures is aligned with QS 9000 / TS 16949 requirements. WTIL is certified for TS 16949.

 

TQM is a way of life at WTIL. 100% participation in employee involvement has been successful for the past 11 consecutive years.

 

Employees have completed more than 229 projects by applying statistical tools through QC Circles in 2009- 10. The average number of suggestions implemented per employee is 57 in 2009-10 which is close to international benchmark.

 

Cost management

 

The Company continues its rigorous focus on its costs through an effective cost deployment system. Value engineering and global sourcing projects are being pursued for cost reduction and also to insulate from cost escalation. Commodity sourcing from prime dealers and price indexing with customers will help in managing the cost effectively and efficiently.

 

Information Technology

 

The Company uses ERP system that integrates all business processes across the Company as well as dealers and suppliers. During the year, the Company has focused on further leveraging the ERP system.

 

website details:-

 

Company profile

 

Subject is a joint venture between TVS Group and WABCO Holdings Inc.

 

Subject has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, their company has achieved a share of business in the OE (Original Equipment) segment greater than 85% and a market share in the after-market greater than 75%.

 

Their Research and Development center is full-fledged and state-of-the-art to facilitate design, development, simulation and testing. A team of professional engineers powered with the best production facilities gear them up to translate design competence into excellence in manufacturing through concepts such as cellular manufacturing and operation standards

 

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2009

 

 (Rs. In Millions)

 

Particulars

3 months ended 31.12.2010

Year to date figures for previous year ended 31.12.2010

 

 

(Unaudited)

(Unaudited)

1

Net sales / Income from operations

2108.249

6271.041

 

Other operating income

77.926

198.268

 

Total Income

2186.175

6469.309

2

Expenditure

 

 

 

a) (Increase)/ decrease in stock in trade and work in progress

(23.658)

(54.319)

 

b) Consumption of materials

1223.955

3653.957

 

c) Employees cost

182.210

517.029

 

d) Depreciation

35.170

107.051

 

e) Other expenditure

308.726

893.666

 

f) Total

1726.403

5117.384

 

 

 

 

 

 

 

 

3

Profit from operations before other income, interest and exceptional items (1-2)

459.772

1351.925

4

Other income

10.610

25.062

5

Profit before interest and exceptional items (3+4)

470.382

1376.987

6

Interest (Net of receipts)

(1.887)

(0.301)

 

 

 

 

7

Profit after interest but before Exceptional items (5-6)

472.269

1377.288

8

Exceptional Items

0.000

0.000

9

Profit/ (Loss) from ordinary Activities before  tax (7+8)

472.269

1377.288

10

Tax expenses

159.952

447.239

11

Net Profit/ (Loss) from ordinary Activities after tax (9-10)

312.317

930.049

 

 

 

 

12

Extraordinary Items (Net of Tax expenses)

0.000

0.000

13

Net Profit/ (Loss) for the period (11-12)

312.317

930.049

 

 

 

 

14

Paid up Equity share capital

(face value of the share of Rs.2/- each)

94.838

94.838

15

Reserve excluding Revaluation Reserve as per Balance Sheet of the previous accounting year

 

 

16

Earning per share (EPS)

Basic and Diluted EPS before Extraordinary Items for the year and for the previous year

16.47

49.03

 

Earning per share (EPS)

Basic and Diluted EPS after Extraordinary Items for the year and for the previous year

16.47

49.03

 

 

 

 

17

Public Share holding

 

 

 

Number of Shares of Rs.5/- each

4741900

4741900

 

Percentage of shareholding

25

25

 

 

 

 

18

Promoters and promoters group shareholding

 

 

 

a) Pledge / Encumbered

 

 

 

Number of Shares

Nil

Nil

 

% of Shares as (as a percentage of the total shareholding of the promoter group)

Nil

Nil

 

Percentage of Shares (as a percentage of the total share capital of the company)

Nil

Nil

 

Non Encumbered

 

 

 

Number of Shares

14225684

14225684

 

% of Shares as (as a percentage of the total shareholding of the promoter group)

100

100

 

Percentage of Shares (as a percentage of the total share capital of the company)

75

75

 

 

Note:

 

  1. The above unaudited financial results for the quarter ended 31.12.2010 were reviewed and recommended by the audit committee for approval on 19.01.2011 and approved by the board of directors on 19.01.2011 and a limited review of the same has been carried out by the statutory auditors of the company.
  2. The company operates in only one segment namely automotive components.
  3. status of investors complaints: No of Complaints received and disposed during the quarter 5 No of companies lying unresolved at the time of commencement and at the end of the quarter- Nil

 

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.44.91

UK Pound

1

Rs.73.05

Euro

1

Rs.64.03

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

 

 

-

 

 

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.