MIRA
INFORM REPORT
|
Report Date : |
03.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
SKF INDIA LIMITED |
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Registered
Office : |
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Country : |
India |
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Financials (as
on) : |
31.12.2010 |
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Date of
Incorporation : |
12.04.1961 |
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Com. Reg. No.: |
11- 11980 |
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Capital
Investment / Paid-up Capital : |
Rs.527.300 Millions |
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CIN No.: [Company Identification
No.] |
L29130MH1961PLC011980 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS00975C |
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PAN No.: [Permanent Account No.] |
AAACS0684H |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are
listed on the Stock Exchange. |
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Line of Business
: |
Subject is engaged in Manufacturing Bearings and related
components. |
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No. of Employees
: |
2078 (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 339480000 |
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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 records. Financial
position of the company appears to be sound. Directors are reported to be
experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported to be regular 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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
|
Registered Office : |
Mahatma Gandhi Memorial Building, Netaji Subhash Road,
Mumbai - 400 002, Maharashtra, India |
|
Tel. No.: |
91-22-66337777 |
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Fax No.: |
91-22-22819074 |
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E-Mail : |
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Website : |
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Factory 1 : |
Chinchward, Pune – 411033 |
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Tel. No.: |
91-20-66112500 |
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Fax No.: |
91-20-27473822 |
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Factory 2 : |
Plot 2, Bommasandra Industrial Area, Hosur Road, Bangalore
- 560099, Karnataka, India |
|
Tel. No.: |
91-80-40329000 |
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Fax No.: |
91-80-40329107 |
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Factory 3 : |
Plot no. 2, Industrial Park 2, Village Salempur Mehdood, SIDCUL,
Bahadrabad By – Pass Road, Haridwar, Uttaranchal – 249402, India |
|
Tel. No.: |
91-33-4238200 |
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Unit No 33, 3rd Floor, 68, Tardeo Road, Close to Crossroads Mall, Nr.
Haji Ali, Mumbai - 400 034, Maharashtra, India |
|
Tel. No.: |
91-22-6633 7715 |
|
Fax No.: |
91-22-67216913 |
DIRECTORS
As on 31.12.2010
|
Name : |
Mr. Kamlesh C. Mehra |
|
Designation : |
Chairman |
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|
Name : |
Tore Bertilsson |
|
Designation : |
Director (21.10.2010) |
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|
Name : |
Giuseppe Donato |
|
Designation : |
Director (20.10.2010) |
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Name : |
Mr. Narendra J. Jhaveri |
|
Designation : |
Director (05.03.2011) |
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Name : |
Mr. Prasad Menon |
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Designation : |
Director (08.03.2011) |
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|
Name : |
Henrik Lange |
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Designation : |
Director |
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Name : |
Darius C. Shroff |
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Designation : |
Director |
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|
Name : |
Tryggve Sthen |
|
Designation : |
Director |
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Name : |
Mr. Vartan Vartanian |
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Designation : |
Director |
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Name : |
Mr. Rakesh Makhija |
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Designation : |
Director |
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Name : |
Mr. Shishir Joshipura |
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Designation : |
Managing Director |
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COMPANY MANAGEMENT TEAM : |
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Name : |
Chandramowli Srinivasan |
|
Designation : |
Finance Director |
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Name : |
Ms Harsha Kadam |
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Designation : |
Director –Tow Wheeler Business, Global |
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Name : |
Mr. Ranjan Kar |
|
Designation : |
Director – Automotive Business |
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Name : |
Mr. R Manohar |
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Designation : |
Director – Demand Chain |
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Name : |
Mr. Sudhir Rege |
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Designation : |
Director – Service Business |
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Name : |
Mr. Vithal Nayak |
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Designation : |
Director – Human Resources |
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Name : |
Mr. Amar Bhat |
|
Designation : |
Director – Business Excellence and Sustainability |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep Bhandari |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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28254568 |
53.58 |
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|
28254568 |
53.58 |
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Total shareholding of Promoter and Promoter Group (A) |
28254568 |
53.58 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6803951 |
12.90 |
|
|
34735 |
0.07 |
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|
2050631 |
3.89 |
|
|
7614884 |
14.44 |
|
|
16504201 |
31.30 |
|
|
|
|
|
|
1398737 |
2.65 |
|
|
|
|
|
|
5686756 |
10.78 |
|
|
835437 |
1.58 |
|
|
52839 |
0.10 |
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|
52839 |
0.10 |
|
|
7973769 |
15.12 |
|
Total Public shareholding (B) |
24,477,970 |
46.42 |
|
Total (A)+(B) |
52,732,538 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Manufacturing Bearings and related
components. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
2078 (Approximately) |
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Bankers : |
·
The Hongkong and Shanghai Banking Corporation
Limited ·
HDFC Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B S R and Associates Chartered Accountants |
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Address : |
Godrej Castlemaine, Bund Garden Road, Pune – 411001, Maharashtra,
India |
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Holding Company: |
AB SKF (Head Offices) Goteborg, Sweden |
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Name of the Related Party : |
· SKF Actuation System (Liestal) AG (Magnetic Elektromotoren AG) · Oy SKF AB, Finland · P.T. SKF Indonesia, Indonesia · RFT S.p.A., Italy · RKS S.A.-SKF Slewing Bearings, France · SKF (China) Sales Limited Limited, China · SKF (Dalian) Bearings and Precision and Company Limited · SKF (Thailand) Limited Thailand · SKF (U.K.) Limited, United Kingdom · SKF Actuators AS, Goteborg, Sweden · SKF Argentina S.A.. Argentina · SKF Australia Pty. Limited, Australia · SKF B.V., Netherlands · SKF Bearings Bulgaria EAD. Bulgaria · SKF Canada Limited Scarborough, Ont., Canada · SKF China Limited. ChinaSKF Condition Monitoring Centre (Livingstone) Limited UK · SKF Coupling Systems AB, Hofors, Sweden · SKF de Mexico Limited S. A. de C. V. Mexico D.F., Mexico · SKF del Peru S.A.. Peru · SKF do Brasil Ltda., Brazil · SKF Equipements, France · SKF Espanola 5.4.. Madrid, Spain · SKF European Distribution Centre (EDC), Belgium · SKF European Financial Service Centre, EFC, Nieuwegein, Netherlands · SKF France S.A., France · SKF GmbH. Germany · SKF Industrie SpA, Italy · SKF International AB · SKF Japan Limited. Japan · SKF Korea Limited Korea · SKF Linearsysteme GmbH. Germany · SKF Malaysia Sdn. Bhd. Malaysia · SKF Osterreich AG., Austria · SKF Philippines Inc., Philippines · SKF Sealing Solutions (WUHU)Company Limited, China · SKF Sealing Solutions AB. Sweden · SKF Shanghai Bearings Company Limited, China · SKF South Africa (Pty) Limited, South Africa · SKF Asia Pacific Pte. Limited, Singapore · SKF Sverige AS, Sweden · SKF Technologies India Private Limited., India · SKF USA Inc., Kulpsville/Lansdale, PA, USA · SKF Venezolana S.A.. Caracas, Venezuela · SKF Ukraine, Ukraina · Transrol S.A.S., Chambéry, France · SKF Lubrications Systems, France SAS · SKF Lubrications Systems. Germany AG · SKF Mekan AB. Sweden · Berger Vogel SrI., Italy · Polyseal. USA · Jaeger Industrial Limited, Limited, Taiwan · ABBA Linear Tech Company Limited (Taipei). Taiwan · SKF Engineering and Research Service B.V., Nieuwegein, Netherlands · Economos India Private Limited New Delhi. India · SKF Sealing Solutions GmbH, Leverkusen - Opladen, Germany · SKF Aero France S.A., Saint-Vallier-sur-Rhone. France · SKF Linear Motion 6 Precision Technologies, USA · SKF NV/SA. Belgium · SKF Automotive Component Corp., Changwon (Pusan) · SKF Bearing Services Taiwan. Taipei · SKF Chilena S.A.I.C, Santiago · SKF International AS (Treasury Centre). Göteborg · SKF Bearing Industries (Malaysia) Sdn. Bhd, Nilai · SKF Automotive Technologies Limited · SKF Lubrication Systems Japan Limited · SKF Economos GmbH, Judenburg · SKF Actuation system(Pinghu) Company Limited,(former Jaege (Pinghu) Precision Actuatronic Limited) · SKF Lubrication Systems USA Inc · Beijing Nankou SKF Railway Bearings Company Limited., Beijing · SKF Hellas S.A., Athens |
CAPITAL STRUCTURE
As on 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
52732538 |
Equity Shares |
Rs.10/- each |
Rs.527.300
Millions |
|
|
|
|
|
Note :
Of the above shares :
19823540 Equity Shares of Rs.10 each (Previous
Year 19823540 Equity Shares of Rs.10 each) are issued as fully paid up bonus
shares by capitalization of Rs.198.200 Millions from Reserves and Securities
Premium account.
7470030 Equity Shares of Rs.10 each (Previous
Year 7470030 Equity Shares of Rs.10 each) were issued at a premium of Rs.54/-
per share against conversion of warrants.
2488 Equity Shares of Rs.10 each (Previous
Year 2488 Equity Shares of Rs.10 each) are not allotted and held in abeyance.
28254568 Equity Shares of Rs.10 each (Previous
Year 28254568 Equity Shares of Rs.10 each) are held by the Swedish holding
company, AB SFK and its subsidiaries.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
527.300 |
527.300 |
527.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7959.800 |
6620.000 |
5924.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8487.100 |
7147.300 |
6451.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.100 |
1.000 |
1.500 |
|
|
TOTAL BORROWING |
0.100 |
1.000 |
1.500 |
|
|
DEFERRED TAX LIABILITIES |
30.000 |
0.000 |
22.700 |
|
|
|
|
|
|
|
|
TOTAL |
8517.200 |
7148.300 |
6475.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2833.900 |
2016.700 |
1758.100 |
|
|
Capital work-in-progress |
359.100 |
551.000 |
628.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
8.400 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2417.200 |
1820.400 |
2244.900 |
|
|
Sundry Debtors |
2711.100
|
2162.900
|
2150.500
|
|
|
Cash & Bank Balances |
2119.100
|
2892.600
|
1919.300
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2338.500
|
1359.900
|
804.100
|
|
Total
Current Assets |
9585.900
|
8235.800
|
7118.800
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3092.200
|
2863.300
|
2228.100
|
|
|
Current Liabilities |
209.500
|
162.700
|
191.600
|
|
|
Provisions |
960.000
|
637.600
|
610.000
|
|
Total
Current Liabilities |
4261.700
|
3663.600
|
3029.700
|
|
|
Net Current Assets |
5324.200
|
4572.200
|
4089.100
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8517.200 |
7148.300 |
6475.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20684.100 |
15709.300 |
16202.400 |
|
|
|
Other Income |
247.600 |
131.200 |
101.800 |
|
|
|
TOTAL (A) |
20931.700 |
15840.500 |
16304.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
18137.400 |
14243.700 |
14224.800 |
|
|
|
TOTAL (B) |
18137.400 |
14243.700 |
14224.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2794.300 |
1596.800 |
2079.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
(199.8) |
124.000 |
153.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2994.100 |
1720.800 |
2233.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
333.400 |
289.800 |
289.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2660.700 |
1431.000 |
1943.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
890.500 |
488.500 |
667.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1770.200 |
942.500 |
1276.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3840.200 |
3238.700 |
2367.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed divined |
369.100 |
210.900 |
237.300 |
|
|
|
Tax on Proposed Dividend |
61.300 |
35.800 |
40.300 |
|
|
|
Transfer to General Reserve |
1000.000 |
94.300 |
127.700 |
|
|
BALANCE CARRIED
TO THE B/S |
4180.000 |
3840.200 |
3238.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1703.400 |
1058.900 |
1494.800 |
|
|
TOTAL EARNINGS |
1703.400 |
1058.900 |
1494.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
85.500 |
232.900 |
148.100 |
|
|
|
Components, Stores and Spares etc. |
1836.200 |
1051.800 |
956.900 |
|
|
|
Capital Goods |
214.400 |
209.400 |
315.500 |
|
|
TOTAL IMPORTS |
2136.100 |
1494.100 |
1420.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
33.60 |
17.90 |
24.2 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2011 |
30.06.2011 |
30.09.2011 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
6332.300 |
6010.600 |
6058.700 |
|
Total Expenditure |
5413.100 |
5239.000 |
5235.500 |
|
PBIDT (Excl OI) |
919.200 |
771.600 |
823.200 |
|
Other Income |
82.100 |
81.700 |
98.100 |
|
Operating Profit |
1001.300 |
853.300 |
921.300 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
PBDT |
1001.300 |
853.300 |
921.300 |
|
Depreciation |
91.60 |
96.300 |
97.900 |
|
Profit Before Tax |
909.700 |
757.000 |
823.400 |
|
Tax |
300.200 |
242.100 |
266.500 |
|
Profit After Tax |
609.500 |
514.900 |
556.900 |
|
Net Profit |
609.500 |
514.900 |
556.900 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
PAT / Total Income |
(%) |
8.46
|
5.95
|
7.83
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.86
|
9.11
|
11.99
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.42
|
13.96
|
21.89
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.20
|
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.50
|
0.51
|
0.47
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.25
|
2.25
|
2.35
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Indian economy
continued to build on its strong recovery and achieved robust growth rates
exceeding 8% in all quarters of the year. The growth was well spread across the
segments of the economy and in some cases specially in automotive sector the
surging demand exceeded all expectations. Whilst this led to improved capacity
uilizaion a factories of most automotive component vendors, it also led to
inability of some component vendors to keep pace with the production schedules
of the automotive OEMs. The Company benefited from the investment made last
year a Haridwar which continued to make progress onwards achieving is installed
capacity. The Company also made investments in enhancing capacities in the
Bengaluru facility while continuing is focus on
productivity improvement measures across all
plants.
In this year of
all round economic growth, The Company has achieved credible financial results.
Their sales continued to develop very positively, driven by strong performance
in their Automotive Division, and a continued good development in Industrial
Division. The Company focused on deeper
customer relationships and improved is value proposition to the customers,
resulting in growth in volume. The continued focus on engineering solution for
customers is helping in maintaining their position as the market leader.
The Company achieved a significant milestone
as its Sales surpassed the Rs.20 billion mark reflecting the leadership
position of the Company. As a reflection of strong intrinsic value the revenue
growth was translated into higher profitability growth on the back of strong
customer relationship and higher value offerings. Operating profits (EBIT) grew
to Rs.2460.900 Millions from Rs.1307.000 Millions over the last year. Operating margin stood a 11.9% for 2010 up
from 8.3% in the previous year.
Profit afer tax increased to Rs.1770.200
Millions, a growth of 88% over 2009. Their Earnings per share for the year was
Rs.33.6.
The rapid recovery
of the growth momentum in year 2010 was comforting. A couple of concerns emerged which will need
careful monitoring over the next few
quarters namely inflation and economic fall outs of changing geo-political
situation across the globe. An Immediate fallout of the global development is
the volatility in the commodity prices and the resultant pressures on margins.
The continued rise in interest rate as a measure for battling inflation could
impact the growth.
The Company has laid the foundation for growth
with several building blocks during 2010 which will help achieve is straegic
goals -
- New factory a Haridwar to meet growing
demand for auto sector
- Solution factory a Pune to offer value added
solutions to their customers
- Sourcing domestically large industrial
bearings for their industrial business.
The Company will
continue to drive strategies that will be customer-centric to capture growth
opportunities. They will continue to, build capabilities to meet the market
demands and further consolidate their position. The Company is confident that
year 2011 will bring newer opportunities and is well positioned to leverage the
same.
INDUSTRY STRUCTURE AND DEVELOPMENT
The
Indian bearing market comprising ball and roller bearings is estimated to be
Rs.66 billion in size. The Industry structure can sector. The organized bearing
sector contributes close to 65% of the total market size. Of the total domestic
demand, almost 35% is met through the imports route.
The
bearings industry can further be classified based on the rolling element used
in the bearings into basic bearing family categories like deep groove ball
bearings, tapered roller bearings, cylindrical roller bearings, spherical
roller bearings, needle roller bearings etc. and other special bearings for
special applications. Ball bearings are the market followed by the Tapered
Roller bearings. The major users of bearings in India are Original Equipment
Manufacturers (OEMs). The automobile segment consumes the largest share of
bearings, followed by the industrial sector. Bearings are used in many user
industry segments such as Automobile, Agriculture machinery, Defense, General
engineering, Infrastructure - Cement, Off-Road vehicles, Power, Railways,
Steel, Machine tools, to name a few.
Building
on the strong foundation and global experience of its parent company, SKF India
has emerged as a key player in the Indian Industry and enjoys market leadership
position. Leveraging its approach of knowledge engineering, SKF India provides
Mechatronics, Services and Lubrication Systems, to a wide spectrum of
industries to help customers become more efficient, competitive and ultimately
more profitable.
OUTLOOK
In the long-term, the Indian economy is projected to grow
rapidly and demand conditions are expected to remain strong. Amid growing
demand in the industrial and automotive sectors, organizations are taking the
crucial call to invest in new production lines, with their existing plants
running at near full capacities. The demand is sustainable, if one looks at the
penetration levels in automobiles, which are very low in the country.
India
will continue to grow, and will continue to build more roads, ports, airports
and power plants, and other infrastructure, causing this.In the near term,
higher commodity prices, rising interest rate and norms may dampen demand.
Infrastructure
has been the focal point in various Government programmes. The liberal
allocation for infrastructure and initiatives economic growth in the medium
term.
As the diverse demand of consumers for better
and improved products grows, and product liability and safety issues get more
stringent, a qualitative leap in the performance of bearings will be required.
Meeting these two requirements competitively will be the key challenge in the
future. In many applications, bearings are the limiting factor in increasing
the power density of the equipment. Hence, working with customers and helping
them make optimum design choices is an important customer expectation now.
As
they embark on the next phase of their journey, they commit ourselves to their
values of technology and innovation leadership, with their customers being at
the heart of their existence. They are well-positioned to take on the future
towards delivering greater customer value.
Their
core approach to provide customers superior solutions and higher value through
innovation in products and services will further help us become the preferred
supplier in all the business segments. Innovation and constant technology
upgradation from the Group will continue to enhance their competitive edge, and
enable their business to move up the value chain and ensure that SKF India is
well-positioned in the future.
FINANCIAL AND SEGMENT PERFORMANCE
SKF
India operates in a single segment, namely in bearings and related components,
which are used in a wide range of applications across industries.
The
Company continued to enjoy leadership position in terms of market share among
the domestic organized sector. During the year, domestic revenue of the Company
was up by 30%, and exports sales were higher by 61%. The share of export in
year.
In
this year of all round economic growth, SKF India has achieved positively,
driven by strong performance in their Automotive Division, and a continued
healthy development in their Industrial Division. The Company focused on deeper
customer relationships and improved its value proposition to the customers,
resulting in growth in volume.
The
continued focus on engineering solutions for customers is helping us maintain
their position as the market leader.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30.09.2011
Rs. in Millions
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
(a)
Net Sales / Income from operations |
5997.500 |
15321.100 |
|
(b)
Other Operating Income |
61.200 |
118.200 |
|
Total
Income |
6058.700 |
15439.300 |
|
Expenditure |
|
|
|
a)
(Increase) / Decrease in stock in trade and work in progress |
129.300 |
5.200 |
|
b)
Consumption of raw materials |
1586.400 |
3987.200 |
|
c)
Purchase of traded goods |
2438.800 |
6043.700 |
|
d)
Employees cost |
389.800 |
1054.200 |
|
e)
Depreciation |
97.900 |
245.400 |
|
f)
Other expenditure |
949.800 |
2278.900 |
|
Total |
5333.400 |
13604.200 |
|
Profit
from operations before other income, interest and exceptional Items |
725.300 |
1835.100 |
|
Other
income |
5.500 |
28.800 |
|
Profit
before interest and exceptional Items |
730.800 |
1863.900 |
|
Interest |
92.600 |
138.300 |
|
Profit after Interest but
before Exceptional Items |
823.400 |
2002.200 |
|
Exceptional
Items |
-- |
-- |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
823.400 |
2002.200 |
|
Tax
expense |
266.500 |
671.200 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
556.900 |
1331.000 |
|
Extraordinary items |
-- |
-- |
|
Net
Profit (+) / Loss (-) for the year period |
556.900 |
1331.000 |
|
Paid up
equity share capital (Face value of Rs.10/- per share) |
527.300 |
527.300 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
10.6 |
25.2 |
|
(b) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
10.6 |
25.2 |
|
Public
shareholding |
|
|
|
Number of shares |
24477970 |
24477970 |
|
Percentage of shareholding |
46.40 |
46.40 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
28254568 |
28254568 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
53.60 |
53.60 |
Note:
·
Prior year’s figures have been regrouped wherever necessary to
confirm to current year classification.
·
The company is of the view, that in manufacturers bearings and other
related components which is a single business segment in accordance with
AS-17-Segment Reporting notified pursuant to companies (Accounting Standards)
Rules, 2006
·
Number of investor complaints (a) pending of the beginning of
quarter nil (b) received during the quarter 1 (c) attended during the quarter –
1 (d) pending at the end quarter nil
·
In the year ended December 31, 2009 the company announced a
Voluntary Retirement Scheme for its employees. An amount of Rs.167.600 millions
was incurred as VRS compensation under this scheme.
·
The above financial results were reviewed by the audit committee
and approved by the board are its meeting held on November 1, 2011.
FIXED ASSETS
·
·
Buildings
·
Plant, Machinery and Tools
·
Furniture, Fixtures
·
Office Equipments
·
Vehicles
·
Softwares
BUSINESS
DESCRIPTION
Subject is engaged in manufacturing bearings and related components,
which are used in a range of applications across industries. The Company
services various industries from agriculture machinery, automobile, cement,
defense, general engineering, infrastructure power, machine tools, off-road
vehicles, railways and steel. The Company manufactures its products out of
plants based in Bengaluru, Pune and Haridwar. It provides solutions across five
platforms namely Bearings and units, Seals, Mechatronics, Services and
Lubrication Systems, to a spectrum of industries. As of December 31, 2010, the
Company had a distribution network with over 300 distributors and 14,000 plus
retailers across India. As of December 31, 2010, the Company manufactured
around 60 sizes of deep groove ball bearings, 70 sizes of taper roller
bearings, textile machinery component. Its associate company, SKF Technologies
(India) Private. Limited, offers customers complete sealing solutions. For the
three months ended 31 March 2011, SKF India Limited's revenues increased 26% to
RS6.33B. Net income increased 40% to RS609.5M. Revenues reflect an increase in
income from operations and higher other operating income. Net income also reflects
a decease in stock in trade and higher gross margin. The Company is engaged in
manufacturing and marketing of ball roller bearings, seals, lubrication
systems, mechatronics and services.
MORE BUSINESS
DESCRIPTION
Manufacture and
distribution of ball bearings, roller bearings and textile machinery
components. ISO 14001 certified
SKF (India) is a leading technology and solutions provider of bearings, seals, related products, systems and services. Locally the company manufactures a product range comprising about 60 sizes of deep groove ball bearings, 70 sizes of taper roller bearings, textile machinery components, automotive specials, bearing accessories like housings, sleeves etc to cater to the needs of the automotive, electrical and industrial OEMs and aftermarket customers.
Subject is a part of the SKF Group, the leading global supplier of rolling bearing and seals. Along with a varied range of products it also offers extensive solutions and services in this business sector. SKF also has an important position in the market for linear motion products, high precision bearings, spindles and spindle services for the machine tool industry, electrical actuators, actuation systems and is an established producer of rolling bearing steel. SKF India delivers high end technical knowledge starting with self-aligning ball bearings, spherical roller bearings, the hub bearing units that are widely used in cars and truck wheel ends, in addition to the new and latest revolutionary CARB bearings that find specialized application in steel plants and paper mills. The company domestically manufactures around 60 sizes of deep groove ball bearings, 70 sizes of taper roller bearings, textile machinery component in addition to catering the needs of automobile, electrical and industrial OEM and aftermarket customers.
BOARD OF DIRECTORS
Mr. Kamlesh C.
Mehra (Non-Executive Independent Chairman of the Board)
Mr. Kamlesh C. Mehra is Non-Executive Independent Chairman of the Board.
He joined Tata Steel in 1962 and has held several positions of importance in
his long career of almost 48 years. In 1975, he was appointed Resident
Director, Tata Industries in Delhi which position he held with distinction upto
1981. He was Chairman of Tata Robbins Frazer, Tata Davy / Tata Construction,
The Indian Tube Company, Tata Stewarts and Llyods, Tata Projects and member of
the Joint Consultative Committee on steel and the Joint Bi-Partite Committee on
Coal (JBCCI). He was also a Director of the UP State Minerals Development
Corporation. In 1997, he took charge of the Forbes Group of companies and was
the Deputy Chairman and Managing Director of Forbes Gokak Limited and also a
Director of several companies. He is a sportsman and has held positions of eminence
on several State and National Bodies. He is on the executive committees of
ASSOCHAM, CII and several other professional organizations. He has been
appointed by the Government of India on the Government council of VV Giri,
National Labour Institute. Apart from the Chairman of SKF India Limited, he is
the Resident Director (Corporate) of the Shapoorji Pallonji Group, P T Gokak
Indonesia, Forvol travels and is director on several boards including Telcon, a
joint venture between Tata Motors and Hitachi. He is also on the Board of the
following Companies and Committees apart from Member of the Audit Committee,
Share Transfer / Investors' Grievance Redressal Committee and Chairman of
Remuneration Committee of SKF India Limited. His other directorships include:
Forvol International Services Limited, Telco Construction Equipment Company
Limited, NextGen Publishing Limited, Sovereign Pharma Private Limited
Mr. Tore Bertilsson
(Non-Executive Non Independent Director)
Mr. Tore Bertilsson is Non-Executive Non Independent Director .He holds a Bachelor of Science degree in Economics, from Gothenburg University, Sweden and has done Global Management Programme from London Business School. He is associated with SKF Group since 1989 and has professional experience for more than 37 years. During this period he held several positions including Treasury Director and Chief Flnancial Officer at SKE Before joining SKF he was the Senior Vice President ‘Head of Corporate. Treasury andInternatonal Division of Skandinaviska Enskflda Banken and prior to which he was Regional Director in Trygg-Hansa Insurance Company and in FlnansScandic AB. Presently. Mr. Bertflsson is Executive Vice President and Chief Financial Officer and a member of the Group Management of Aktiebo [aget SKE He is a[so on the Board of Gamla Livforsakringsbolaget SEB Trygg L. Agrenska AB. AB Ludvig Svensson, PRI PensionsgarantL SKF Sverige AB. SKF International AB, SKF Reinsurance Co Limited, SKF Forvaltning AB. SKF (UK) Limited, PEER Bearing Company Limited and SKF (China) Investments Company Limted.
Mr. Shishir Joshipura
(Chief Executive Officer)
Mr. Shishir Joshipura is Chief Executive Officer, Managing Director, Executive Director. He is an engineering graduate from Birla Institute of Technology and Science, Pilani and has completed Advance Management Program from Harvard Business School. He started his career with Thermax in India as a Engineer Trainee and was associated in various capacities with the Company till he joined SKF India Limited. During his tenure of more than 25 years with Thermax he has worked in various positions from Installation Engineer to Area Sales Manager - Western Region and as a Regional Head (West). He was promoted to the position of CEO, Thermax EPS Limited, a 50:50 JV established by Thermax with EPS USA in 1999. From 2005 to 2009, Mr. Joshipura was an Executive Council Member and Group Business Head in Thermax for Cooling and Heating Business. He was also Director incharge for Energy rental and carbon credit business. During this period, Mr. Joshipura had taken several initiatives to focus on energy efficiency and productivity improvement across diverse sectors such as paper, chemical, power, Textile and IT. Mr. Joshipura led several operational excellence initiatives improving 'on-time performance', plant throughput, cost optimisation and increase in sales of products through product innovation. He is also a Director of Thermax Sustainability Energy Services Limited and Alliance for Energy Efficient Economy (AEEE) an industry think tank for Energy Efficiency.
Mr. Henrik Lange
(Non-Executive Non-Independent Director)
Mr. Henrik Lange is Non-Executive Non-Independent Director. He holds a Bachelor of Science degree in International Economics and Business Administration from Gothenburg University, Sweden. He is having professional experience of over 20 years in various senior positions in the field of Finance and Manufacturing. Mr. Lange has held various positions within the SKF Group. Mr. Lange has worked as Assistant Controller, SKF Bearing Services, Sweden; Financial Controller, SKF UK Limited; Managing Director, SKF Poland, and SKF Austria; Senior VP, Group Business Development, AB SKF, Sweden. Presently, Mr. Lange is the President, Industrial Division of Aktiebolaget SKF. Mr. Lange is also on the Board of SKF GmbH, Germany, SKF Sverige AB, Sweden, SKF Japan Limited. Japan, Willy Vogel AG, Germany, SKF(China) Investment Company Limited, China, SKF (Dalian) Bearings and Precision Technologies Company Limited, China, PartnerTech Limited, Sweden, West Sweden Chamber of Commerce and Industry, Sweden.
Mr. Rakesh Makhija
(Non-Executive Non Independent Director)
Mr. Rakesh Makhija is Non-Executive Non Independent Director. He served as Chief Executive Officer, Managing Director, Executive Director of SKF India Limited until December 01, 2009 and appointed as President, Asia of the SKE Group effective January 01, 2010. He is a Chemical Engineer from the Indian Institute of Technology, New Delhi with more than 35 years of experience in the Industry. He has been associated with the Company for more than 7 years as the Managing Director of the Company. During this period, Mr. Makhija has taken several initiatives to focus on growth, value addition and cost effectiveness besides overseeing the Company's businesses. He has taken several initiatives for driving this growth for which the company has received recognition and awards from its various suppliers, customers and institution, out of which few are: 'Green Manufacturer of the Year' for promoting green practices within the manufacturing areas, CNBC Asia's ‘India Business Leader Award' for Talent Management, 'Autofit Rolling Trophy' at the 4th National convection on Six Sigma organized by the CII, 'Dun and Bradstreet - American Express Corporate Award' as the top company in the Bearing Sector, Best Quality / Supplier award from Bajaj, Lucas TVS and ELGI, Prior to SKF, Mr. Makhija was the Country Manager and Managing Director of Honeywell International, overseeing all of Honeywell's businesses in India. Mr. Makhija also represents as a Member on the Board of Kennametal India Limited and Swedish Chamber of Commerce India and is a Member of Audit Committee and Share Transfer / Investors- Grievance Redressal Committee of SKF India Limited.
Mr. Darius C. Shroff
(Non-Executive Independent Director)
Mr. Darius C. Shroff is Non-Executive Independent Director, since 1993. He is a Senior Partner of Crawford Bayley and Company, a firm of Soucitors and Advocates, having over 42 years of experience in the legal profession. He has experience London Business School. He is associated with SKF Group since 1989 and has professional experience for more than 37 years. During this period he held several positions including Treasury Director and Chief Financial Officer at SKE Before joining SKF he was the Senior Vice President — Head of Corporate. Treasury andInternatonal Division of Skandinaviska Enskflda Banken and prior to which he was Regional Director in Trygg-Hansa Insurance Company and in Flnans Scandic AB. Presently. Mr. Bertflsson is Executive Vice President and Chief Financial Officer and a member of the Group Management of Aktiebolaget SKE He is also on the Board of Gam[a Livforsakringsbo[aget SEB Trygg L. Agrenska AB. AB Ludvig Svensson, PRI Pensionsgarantl SKF Sverige AB. SKF International AB, SKF Reinsurance Co Limited, SKF Forvaltning AB. SKF (UK) Limited, PEER Bearing Company Limited and SKF (China) Investments Company Limted.
Mr. Tryggve Sthen
(Non-Executive Non-Independent)
Mr. Tryggve Sthen is Non-Executive Non-Independent Director, since 2003. He is M.Sc. (M.S.E.E.) in Technical Physics and Electro technology from Linkoping Institute of Technology and Business Administration, Law, Astronomy, English at Vasteras / Uppsala University. He is the President Automotive Division, Aktiebolaget SKF and his present responsibility include global responsibility within SKF Group for overall Division results as well as Business Development, Sales, Product Development, Engineering and Manufacturing functions for the Cars, Trucks, Components and Vehicle Aftermarket Segment. He is also a Director of SKF GmbH, Germany, SKF France S.A., P.T. SKF Indonesia, SKF Automotive Bearings Company Limited, China, SKF Automotive Technology Company Limited, China AEC Japan Company Limited, Japan, Green Cargo, RIV-SKF Officine di Villar Perosa S.p.A
Mr. Vartan Vartanian
(Non-Executive Non-Independent Director)
Mr. Vartan Vartanian is Non-Executive Non-Independent Director. He has done Bachelor of Applied Sciences in Mechanical Engineering from University of Toronto, Canada. He is associated with SKF Group since 1990 and has held various positions such as Managing Director of SKF Poland from 1992 and Managing Director of SKF Czech Republic and Slovakia in 1995. Subsequently, Mr. Vartanian was appointed Area Director CEE-MEA in 1998 and Area Director Service Division Europe in 2004. Mr.Vartanian is the President, SKF Service Division of Aktiebolaget SKF. Mr. Vartanian has experience in industry with special focus on Sales, Marketing, Business Development, Management; International business. Mr. Vartanian is also on the Board of SKF Eurotrade AB, SKF Norway, Endorsia.com International AB, SKF NV/SA, Belgium and SKF Loziska, Prague.
Mr. Shishir Joshipura (Chief Executive Officer, Managing Director, Executive Director)
Mr. Shishir Joshipura is Chief Executive Officer, Managing Director, Executive Director. He is an engineering graduate from Birla Institute of Technology and Science, Pilani and has completed Advance Management Program from Harvard Business School. He started his career with Thermax in India as a Engineer Trainee and was associated in various capacities with the Company till he joined SKF India Limited. During his tenure of more than 25 years with Thermax he has worked in various positions from Installation Engineer to Area Sales Manager - Western Region and as a Regional Head (West). He was promoted to the position of CEO, Thermax EPS Limited, a 50:50 JV established by Thermax with EPS USA in 1999. From 2005 to 2009, Mr. Joshipura was an Executive Council Member and Group Business Head in Thermax for Cooling and Heating Business. He was also Director incharge for Energy rental and carbon credit business. During this period, Mr. Joshipura had taken several initiatives to focus on energy efficiency and productivity improvement across diverse sectors such as paper, chemical, power, Textile and IT. Mr. Joshipura led several operational excellence initiatives improving 'on-time performance', plant throughput, cost optimisation and increase in sales of products through product innovation. He is also a Director of Thermax Sustainability Energy Services Limited and Alliance for Energy Efficient Economy (AEEE) an industry think tank for Energy Efficiency.
Mr. Vithal Nayak
(Director)
Mr. Vithal Nayak is Director - Human Resources. His Qualification is BE Mechanical. MMS. He has 21 years of experience. He served as Head of HR, IR, Pers andAdmn. in Lupin Limited.
Mr. Harsha Kadam
(Director)
Mr. Harsha Kadam is Director - Electrical and Two Wheeler Business, Global. His Qualification is BE - Mech, PGDIM - Finance, PGDIM HR. He has over 20 years of experience. He served as Project Engineer Trainee in Chemical Industries Consulting Bureau.
Mr. Rajan Kar
(Director)
Mr. Rajan Kar is Director - Automotive Business of SKF India Limited. His Qualification is B Tech, PGDM. He has over 23 years of experience. He served as Regional Business Dev. Manager in Exxon Mobil India.
Mr. R. Manohar
(Director)
Mr. R. Manohar is Director - Demand Chain. His Qualification is MTech, AICWA. He has over 28 years of experience. He served as Regional Category Team Manager in Delphi Automotive Sytems.
Mr. Sudhir Rege (Director)
Mr. Sudhir Rege is Director -Service Business Unit. His Qualification is
BE Mechanical. MMS. He has over 22 years of experience. He served as Head of
Torrington Business in Ingersoll Rand India Limited
PRESS RELEASE
SKF India net
profit up 35 pc in Jul-Sep, to invest Rs 150 cr
Mumbai, November 01, 2011 (PTI) -- SKF India, technology and solutions
provider of bearings, seals, lubrication systems, mechantronics and services,
today said its net profit rose 35.60 per cent to Rs 55.69 crore in the quarter
ended September 2011 as against Rs 41.07 crore during the corresponding period
last year.
Sales also rose by 13.87 per cent to Rs 599.75 crore in the quarter
ended September 2011 as against Rs 526.70 crore during the previous quarter
ended September 2010, a company statement said here.
Earnings per share for the first nine months of the current year is Rs
31.9 as compared to Rs 25.2 for the corresponding period last year.
The company plans to spend Rs 150 crore over various augmentation
facilities in FY 12, which will be financed through internal accruals, SKF
India Managing Director Shishir Joshipura said.
The company is doubling its capacity for hub bearings and adding
capacity for medium size ball bearings, he said.
SKF India's third quarter performance has shown steady growth against a
very demanding economic scenario.
"High inflation, increasing input costs and a high interest rate
regime continued to put pressure on performance. The quarter saw continued
moderation in demand in some sections of the automotive sector.
FTII wins Pune leg
of Sweden India Nobel Memorial quiz
PUNE: The Film and Television Institute of India (FTII) won the Pune leg
of the qualifying rounds of the Sweden India Nobel Memorial quiz held on Wednesday
at Pravara Centre for Management Research and Development.
FTII students Rangoli Agarwal, Kislay and Eeshit Narain were declared
winners among 40 other participating teams from well-known colleges and
technical institutes across the city.
The event was graced by Alexandra Berg Von Linde, second secretary,
Embassy of Sweden, New Delhi, and Shishir Joshipura, managing director, SKF
India Ltd.
The competition is organised every year as part of the Sweden India
Nobel Memorial Week to celebrate the spirit of the Swedish innovator,
entrepreneur and philanthropist, Alfred Nobel.
Winners of the Pune round will now represent the city at the grand
finale to be held at IIT, Delhi on October 15.
Besides Pune, regional qualifiers will also be held in Mumbai and Delhi
during this month and the next. The national winners will get an all expenses
paid trip to Sweden comprising visits to headquarters of partner companies,
universities and the Nobel Museum.
"However, we remain positive about the sustained growth opportunities
in the medium to long term even as near term outlook remains challenging,"
Joshipura said.
The company will continue to focus on providing value added solutions to
its customers to support its growth plans, he said. PTI AP MR 11012042
CRISIL rates The
New Ball Bearing Co's bank facilities at BB-/"stable"/A4+
6 September 2011 - Rating agency CRISIL yesterday rated the bank
facilities of Indian engineering products distributor The New Ball Bearing
Company at BB-/"stable"/A4+.
The company benefits from its established market position as one of the
major dealers of the products of SKF India Ltd in Pune, Kolhapur and Bangalore,
and from its moderate risk management policies.
The below-average financial risk profile of the company and the strong
competition it has to endure with partially offset these strengths.
CRISIL assigns
BB-/"stable"/A4+ ratings to bank facilities of The New Ball Bearing
Co
Sep 6, 2011 - Rating agency CRISIL yesterday rated the bank facilities
of Indian engineering products distributor The New Ball Bearing Company at
BB-/"stable"/A4+.
The company benefits from its established market position as one of the
major dealers of the products of SKF India Ltd in Pune, Kolhapur and Bangalore,
and from its moderate risk management policies.
The below-average financial risk profile of the company and the strong
competition it has to endure with partially offset these strengths.
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] 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.49.25 |
|
|
1 |
Rs.78.73 |
|
Euro |
1 |
Rs.67.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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.