1. Summary
Information
|
|
|
Country |
|
|
Company Name |
STEEL STRIP WHEELS LIMITED |
Principal Name 1 |
Mr. R. K. Garg |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Dheeraj Garg |
|
|
|
Registration # |
16-006159 |
|
Street Address |
Village Somalheri/ Lehli, PO Dappar Tehsil Derabassi, District –
Mohali -140506, |
||
|
Established Date |
28.02.1985 |
SIC Code |
-- |
|
Telephone# |
91-172-2790979 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-172-2794834 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Automotive steel Wheels |
|
|
# of employees |
Not Available |
Product Name 2 |
-- |
|
Paid up capital |
Rs.
148,432,000/- |
Product Name 3 |
-- |
|
Shareholders |
Public Shareholding- 47.56% Promoter Group – 52.44 % |
Banking |
HDFC Bank
Limited |
|
Public Limited Corp. |
YES |
Business Period |
26 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Ba (51) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
-- |
-- |
-- |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,503,057,000 |
Current Liabilities |
1,607,383,000 |
|
Inventories |
1,504,783,000 |
Long-term Liabilities |
3,640,037,000 |
|
Fixed Assets |
4,963,856,000 |
Other Liabilities |
266,609,000 |
|
Deferred Assets |
000 |
Total Liabilities |
5,514,029,000 |
|
Invest& other Assets |
371,474,000 |
Retained Earnings |
2,680,709,000 |
|
|
|
Net Worth |
2,829,141,000 |
|
Total Assets |
8,343,170,000 |
Total Liab. & Equity |
8,343,170,000 |
|
Total Assets (Previous Year) |
6,101,228,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
6,561,649,000 |
Net Profit |
298,020,000 |
|
Sales(Previous yr) |
4,193,456,000 |
Net Profit(Prev.yr) |
145,248,000 |
MIRA INFORM
REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
STEEL STRIP WHEELS LIMITED |
|
|
|
|
Registered
Office : |
Village Somalheri/ Lehli, PO Dappar Tehsil Derabassi, District –
Mohali -140506, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
28.02.1985 |
|
|
|
|
Com. Reg. No.: |
16-006159 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 148.432 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27107PB1985PLC006159 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
stock exchange |
|
|
|
|
Line of Business
: |
Manufacturer of Automotive steel Wheels. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having
satisfactory track. 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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Village Somalheri/ Lehli, PO Dappar Tehsil Derabassi, District –
Mohali -140506, |
|
Tel. No.: |
91-172-2790979/ 2793112 |
|
Fax No.: |
91-172-2794834/ 2790887 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head/ Corporate Office : |
S.C.O.49-50, Sector - 26, Madhya Marg, |
|
Tel. No.: |
91-172-2790979,2793112 |
|
Fax No.: |
91-172-2794834,2790887 |
|
E-Mail : |
|
|
|
|
|
Plant 1 : |
Village Lehli / Someheri, P. O. Dappar, Tahsil Derabassi, District
Mohali -140506, Punjab, India |
|
Tel. No.: |
91-1762-275228 |
|
|
|
|
Plant 2 : |
Plot No. A-10, Sipcot Industrial Growth Centre, Oragadam, Vallam
Village, Sriperumbudur Taluk, District - Kandhipuram, Tamil Nadu – 602105,
India |
|
Tel. No.: |
91-44-27192804 |
|
|
|
|
Plant 3 : |
Plot No. 733, 734, 735, 747 Moja, Jojobera, P.O. Chhota, Govindpur, |
|
Tel. No.: |
91-657-2277753 |
|
|
|
|
Sales Office 1 : |
Room No. 1487, Building No. 83, Shrirang Co-operative Society, Samata
Nagar, Kandivali (East) – 400101, Mumbai, |
|
Tel. No.: |
91-9324631086 |
|
|
|
|
Sales Office 2 : |
S – 2, Second Floor, Vasant Square Mall, Community Center, Pocket V,
Plot No. A, Sector B, Vasant Kunj, |
|
Tel. No.: |
91-11-40000376/ 40000377 |
|
|
91-11-40000378 |
|
|
|
|
Sales Office 3 : |
RL – 58, Indirai, MIDC, Sambhaji Nagar, Chinchwad, Pune – 411019, |
|
Tel. No.: |
91-20-32402332 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. R. K. Garg |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Dheeraj Garg |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
A. V. Unnikrishnan |
|
Designation : |
Deputy Managing Director |
|
|
|
|
Name : |
Mr. B. B. Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. S Grewal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. S. Jha |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Ute Mayr |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. H. K. Singhal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajeev Singhal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Shaman Jindal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4,934,627 |
33.25 |
|
|
2,848,488 |
19.19 |
|
|
7,783,115 |
52.44 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7,783,115 |
52.44 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
351,879 |
2.37 |
|
|
88,830 |
0.60 |
|
|
440,709 |
2.97 |
|
|
|
|
|
|
4,539,573 |
30.58 |
|
|
|
|
|
|
1,681,544 |
11.33 |
|
|
317,530 |
2.14 |
|
|
80,699 |
0.54 |
|
|
26,448 |
0.18 |
|
|
19,654 |
0.13 |
|
Hindu Undivided
Families |
25,597 |
0.17 |
|
Trusts |
9,000 |
0.06 |
|
|
6,619,346 |
44.60 |
|
Total Public shareholding (B) |
7,060,055 |
47.56 |
|
Total (A)+(B) |
14,843,170 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
14,843,170 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Automotive steel Wheels. |
||||
|
|
|
||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Bankers/ Institutions : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
SECURED LOANS
Notes: Term Loans from banks, financial
institutions and others are secured to be secured by equitable mortgage created/to
be created by deposit of title deeds of the company’s Immovable properties
for Dappar and Oragadam units in addition to the deed of hypothecation
charging Company’s moveable properties both present and future and second
charge created/to be created on raw materials, semi-finished goods,
consumable stores, finished goods and book debts etc. Working Capital Limits from Banks are secured to be secured by First
pari passu charge on stocks of Raw material, Semi-finished goods, finished
goods, Consumables stores, hypothecation of book debts. The limits are
further secured/to be secured by llnd pari-passu charge over immovable assts
of the company. Buyer credit loans are secured by way of lien on non – funds based working
capital limits and counter indemnity of the company. All secured loans are further secured by personal guarantee of
chairman and Director and Managing Director of the company
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.C. Dewan and Company Chartered Accountants |
|
Address : |
SCO-90, 1st Floor, Swastik Vihar Panchkula |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
19000000 |
Equity Share |
Rs. 10/-each |
Rs. 190.000 Millions |
|
1200000 |
Optionally Convertible Preference Shares |
Rs. 145/-
each |
Rs. 174.000
Millions |
|
|
Total |
|
Rs. 364.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14843170 |
Equity Shares |
Rs. 10/-
each |
Rs. 148.432
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
148.432 |
130.662 |
136.572 |
|
|
2] Share Application Money |
0.000 |
57.750 |
0.000 |
|
|
3] Reserves & Surplus |
2680.709 |
1702.356 |
1567.128 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2829.141 |
1890.768 |
1703.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3640.037 |
2759.094 |
2348.480 |
|
|
2] Unsecured Loans |
0.000 |
245.300 |
0.000 |
|
|
TOTAL BORROWING |
3640.037 |
3004.394 |
2348.480 |
|
|
DEFERRED TAX LIABILITIES |
213.262 |
159.112 |
153.942 |
|
|
|
|
|
|
|
|
TOTAL |
6682.440 |
5054.274 |
4206.122 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4963.856 |
3378.728 |
3417.470 |
|
|
Capital work-in-progress |
368.391 |
850.271 |
181.932 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.083 |
3.500 |
2.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1504.783
|
771.175 |
527.604 |
|
|
Sundry Debtors |
884.733
|
631.374 |
436.523 |
|
|
Cash & Bank Balances |
268.151
|
248.237 |
69.410 |
|
|
Other Current Assets |
50.206
|
40.389 |
15.711 |
|
|
Loans & Advances |
299.967
|
177.554 |
134.449 |
|
Total
Current Assets |
3007.840
|
1868.729 |
1183.697 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1436.514
|
913.452 |
509.657 |
|
|
Other Current Liabilities |
170.869
|
101.076 |
65.551 |
|
|
Provisions |
53.347
|
32.426 |
4.461 |
|
Total
Current Liabilities |
1660.730
|
1046.954 |
579.669 |
|
|
Net Current Assets |
1347.110
|
821.775 |
604.028 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.692 |
|
|
|
|
|
|
|
|
TOTAL |
6682.440 |
5054.274 |
4206.122 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6561.649 |
4193.456 |
3173.144 |
|
|
|
Other Income |
13.967 |
11.213 |
11.165 |
|
|
|
Prior Period Income |
0.728 |
0.632 |
0.000 |
|
|
|
TOTAL (A) |
6576.344 |
4205.301 |
3184.309 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing
Expenses |
539.990 |
308.811 |
225.603 |
|
|
|
Administrative
Expenses |
132.500 |
100.425 |
67.289 |
|
|
|
Raw Material
Consumed |
4279.870 |
2680.599 |
2122.470 |
|
|
|
Increase/(Decrease)
in Stocks |
(63.883) |
(31.531) |
(22.104) |
|
|
|
Other
Manufacturing Expenses |
11.813 |
13.131 |
9.700 |
|
|
|
Employee Cost |
0.000 |
0.000 |
129.003 |
|
|
|
Selling and
Administration Expenses |
440.946 |
302.517 |
190.532 |
|
|
|
Miscellaneous Expenses |
0.000 |
0.692 |
0.692 |
|
|
|
Prior Period
Expenses |
0.807 |
3.327 |
2.042 |
|
|
|
Personal
Expenses |
349.007 |
208.225 |
0.000 |
|
|
|
TOTAL (B) |
5691.050 |
3586.196 |
2725.227 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
885.294 |
619.105 |
459.082 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
201.535 |
168.556 |
160.120 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
683.759 |
450.549 |
298.962 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
328.055 |
254.578 |
171.313 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
355.704 |
195.971 |
127.649 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
57.684 |
50.723 |
49.709 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
298.020 |
145.248 |
77.940 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
22.265 |
13.616 |
0.000 |
|
|
|
Tax on Dividend |
3.697 |
2.314 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
272.058 |
129.318 |
77.940 |
|
|
|
|
|
|
|
|
|
Add |
OPENING BALANCE
OF SURPLUS IN PROFIT AND LOSS A/C |
348.491 |
219.173 |
141.234 |
|
|
|
|
|
|
|
|
|
|
CLOSING BALANCE
OF PROFIT AND LOSS A/C CARRIED TO B/S |
620.549 |
348.491 |
219.173 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
370.753 |
203.288 |
|
|
TOTAL EARNINGS |
0.000 |
370.753 |
203.288 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
127.912 |
125.370 |
|
|
|
Stores & Spares |
0.000 |
5.867 |
17.232 |
|
|
|
Capital Goods |
0.000 |
148.110 |
63.448 |
|
|
TOTAL IMPORTS |
0.000 |
281.889 |
206.05 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.28 |
11.12 |
6.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2011 |
30.06.2011 |
|
Audited / UnAudited |
|
UnAudited |
UnAudited |
|
|
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
2343.600 |
2301.300 |
|
Total Expenditure |
|
2091.200 |
2016.200 |
|
PBIDT (Excl OI) |
|
252.400 |
285.100 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
252.400 |
285.100 |
|
Interest |
|
61.600 |
55.500 |
|
Exceptional Items |
|
0.000 |
(0.100) |
|
PBDT |
|
190.800 |
229.500 |
|
Depreciation |
|
106.400 |
108.000 |
|
Profit Before Tax |
|
84.400 |
121.500 |
|
Tax |
|
19.500 |
6.100 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
64.900 |
115.400 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
64.900 |
115.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.53
|
3.45 |
3.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.42
|
4.67 |
4.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.46
|
3.73 |
2.77 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.10 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.87
|
2.14 |
1.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.81
|
1.78 |
2.04 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL PERFORMANCE
The gross Sales of the Company increased by 58.38% from Rs. 4536.65 Million in 2009-10 to Rs. 7185.31 Million in 2010-11. 9.64 Million wheel rims were sold in 2010-11 as compared to 7.17 Million wheel rims in the previous financial year. This corresponds to an increase of 34.41% in numbers of wheels. The comparatively higher increase in sales could be achieved thanks to the higher volumes of Exports, Truck and tractor wheels sold during the financial year.
The Earnings before interest and depreciation (EBITDA) increased by 42.21 % from Rs. 622.49 Million in 2009 10 to Rs. 885.25 Million in 2010-11. The EBITDA margin has slightly decreased to 12.34% from 13.76% in 2009-10 due to increasing steel prices during the financial year.
A significant increase could be achieved in Profits before
and after tax in 2010-11. They grew by 81.53% to Rs. 355.74 and by 105.18% to
Rs. 298.02 Million respectively. The depreciation and other amortization
increased to Rs. 328.05 Million from Rs. 255.27 Million due to the enhanced
utilization of the Dappar and Oragadam plants and the commencement of
commercial operations at
FUTURE OUTLOOK
The focus of the Company is to develop world-class facilities for the manufacture of quality steel wheel rims for all segments of the automotive industry while increasing its customer base in India as well as internationally.
The growth of the automobile component industry is likely to
slow down considerably in 2011 -12 from the high growth rates of 26- 30% seen
during 2010-11. This is due to higher price of vehicles and rising interest
rates. The expected growth rates for 2011 -12 are expected to be around 8-10
percent in the domestic market and exports by around 70 percent.
ISSUE AND ALLOTMENT
OF EQUITYSHARES ON PREFERENTIAL BASIS
The Company issued
and allotted 8,50,000 Equity Shares of Rs. 10/- each against cash, at a price
of Rs. 520/- (Rupees Five hundred Twenty only) per equity shares i.e at a
premium of Rs. 510/- per share to Sumitomo Metal Industries Limited on a
preferential allotment basis on 9th December, 2010 (Non Promoter
Category). Sumitomo Metal Industries Limited is a
The Company also
issued and allotted 3,77,000 equity shares of Rs. 10/-each fully paid up, at a
price of Rs. 595/-per shares ( i.e. at a
premium of Rs. 585/- per share) to GS Global Corporation, on 12th
January, 2011 on preferential allotment basis (Non Promoter Category). GS
Global Corporation is a
MANAGEMENT DISCUSSION AND ANALYSIS
Business Overview
Manufacturing facilities and products range
The Company manufactures steel wheels for the automotive industry.
Its product range comprises steel wheels for Passenger cars, Multi utility
vehicles (MUV), Tractors, Trucks, Light Commercial Vehicles (LCV), Heavy
Commercial Vehicles (HCV), Off The Road Vehicles (OTR) as well as Two and Three
Wheelers. The Company has three manufacturing facilities strategically located
in Dappar (near
|
Location |
Installed
Capacity (P. A) as at 31.03.2011 |
Facilities for |
|
Dappar ( |
9.00 Millions |
Passengers Cars, Two and Three Wheelers, Tractors, MUVs, LCVs, HCVs and
OTR |
|
Oragadam (Tamilnadu) |
2.50 Millions |
Passengers Cars |
|
|
1.00 Millions |
HCV/ LCV both tube type/ tubeless |
The unit was under expansion and its installed capacity has now been enhanced from 2.5 million nos. p.a. capacity to 6.0 million nos. p.a. capacity from FY2011-12. The unit commenced commercial production during the last quarter of FY 2010-11. The Company is a strong and reliable partner to the Indian and international automotive industry and increasingly recognized as a global player in the development and manufacturing of steel wheels for Original Equipment Manufacturers (OEMs).
Sales Analysis
The Company caters
to the following automotive industry segments:
- Passenger cars
and multi utility vehicles (MUVs) (hereinafter referred to as “PC”)
- Two/three
wheelers (hereinafter referred to as “2/3W’)
- Light/ heavy
commercial vehicles (hereinafter referred to as “LCV/ HCV”) and
- Off the road
vehicles (hereinafter referred to as “OTR”)
During the
financial year 2010-11 the Company sold 9.641 Millions nos. of wheels as
compared to 7.173 Millions nos. during 2009-10 and thereby registered an overall
growth in sales of 34.41%. The highest segment wise growth during the financial
year was registered in the LCV/ HCV segment with 161 .05% as compared to
2009-10, followed by 2/3W with 75.20%, OTR with 66.67%, PC with 27.71% and
Tractors with 25.74% growth over last year.
Industry Overview
The automobile industry is one of the fastest growing
sectors in
As per data released by SIAM India, the automobile industry witnessed a growth of 27.45% in production during 2010-11(17.92 million nos vehicles as compared to 14.06 million nos vehicles during the previous year) which is the highest since 2004-05. Four wheelers witnessed a growth of 27.87% with 3.74 million nos as compared to 2.92 million nos during 2009-10 and two and three wheelers witnessed a growth of 27.34% with 14.18 mjllion nos as compared to 11.13 million nos during 2009-10. In four wheelers, the commercial vehicles production, outperformed with a 32.63% growth (0.75 million nos during 2010-11 as compared to 0.57 million nos during 2009-10).
Strengths of the
Company
R and D Capabilities
The company is recognized by the government of
Future Outlook and
Business Plan
The growth of the automobile component industry is likely to moderate to single digits in 2011-12 from the high growth rates of 26- 30% seen during 2010-11. This is due to higher prices of vehicles and rising interest rates. The company expects to grow its export business by at least 70 percent in numbers and the truck wheel business by a minimum of 50 percent. The tractor wheel business is expected to be up by 25 percent.
The Union Budget 2011-12 has proposed to extend the excise duty refund available to taxis having a seating capacity of less than 7 and to other vehicles having a seating capacity of up to 13 passengers. This is expected to marginally aid the sales of utility vehicles in the specified category. Also, the concessional excise duty of 10 per cent has been extended to vehicles based on fuel cell and hydrogen cell technology, which will improve the long term growth prospects of these vehicles.
Specified parts of hybrid vehicles have been exempted from basic customs duty and special CVD in the budget. In addition, excise duty on these parts has been reduced to 5 per cent from 10 per cent earlier, in order to incentivize domestic production and reduce import dependence. These factors are expected to aid the sales of hybrid vehicles and have a marginally positive impact on the passenger cars industry over the longer term.
The increase in exemption limits of tax slabs for individual tax payers from Rs. 0.160 Million to Rs. 0.180 Million is likely to lead to increase in disposable incomes of addressable households, and thus aid two-wheeler sales.
Enhancement of interest subvention on crop loans from 2 to 3 per cent, revision of wage rates under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) scheme and increased allocation towards rural development projects like Rashtriya Krishi Vikas Yojana are expected to have a marginally positive impact on two-wheeler and tractor sales. Moreover, announcement of the launch of the ‘National Mission for hybrid and electric vehicles’ is expected to benefit sales of hybrid and electric vehicles over the longer term.
All the above factors are likely to have a positive impact on the demand of our products in future. The company hopes to cope with these challenges with its continued focus on cost control, process efficiencies and product innovations.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2011
(Rs. In millions)
|
Particulars |
|
July to September
2011 (3 Months) |
April to September
2011 (6 Months) |
|
1.) Gross sales/ income from operations |
|
2546.300 |
5039.400 |
|
Less: Excise Duty |
|
210.800 |
405.500 |
|
(a) Net Sales /Income from Operations |
|
2335.500 |
4633.900 |
|
(b) Other Operating Income |
|
8.100 |
11.000 |
|
Total Income |
|
2343.600 |
4644.900 |
|
2. Expenditure : |
|
|
|
|
a) (Increase / Decrease in Stocks in Trade and WIP) |
|
(90.400) |
(85.800) |
|
b) Consumption of Raw Material |
|
1665.100 |
3195.400 |
|
c) Employee Costs |
|
127.400 |
244.900 |
|
d) Depreciation |
|
106.400 |
214.400 |
|
e) Other Expenditure |
|
389.100 |
752.900 |
|
f) Total (2) |
|
2197.600 |
4321.800 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
|
146.000 |
323.100 |
|
4. Other Income |
|
-- |
-- |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
|
146.000 |
323.100 |
|
6. Interest (Net) |
|
61.600 |
117.100 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
|
84.400 |
206.000 |
|
8. Exceptional Items |
|
0.000 |
(0.100) |
|
9. Profit / (Loss) from Ordinary Activities before tax (7+8) |
|
84.400 |
205.900 |
|
10. Tax expense |
|
16.300 |
44.300 |
|
11.MAT Credit entitlement |
|
0.000 |
(24.900) |
|
12. Provision for deferred tax assets/ liability and other tax |
|
3.200 |
6.200 |
|
13. Net Profit / (Loss) from Ordinary Activities after tax (9-10-11-12) |
|
64.900 |
180.300 |
|
14. Extraordinary items (net of tax expense Rs. Nil) |
|
-- |
-- |
|
15. Net Profit / (Loss) for the period (13-14) |
|
64.900 |
180.300 |
|
16. Paid-up equity share capital (Face Value – Rs. 10/- per share) |
|
1484 |
1484 |
|
17. Reserves excluding Revaluation Reserve |
|
-- |
-- |
|
18. Earnings Per Share (EPS) – (not annualized) before and after extraordinary items for the period |
|
|
|
|
(a) Basic |
|
4.38 |
12.15 |
|
(b) Diluted |
|
4.38 |
12.15 |
|
(c) Annualised EPS |
|
|
|
|
19. Public shareholding : |
|
|
|
|
- Number of shares |
|
7060055 |
7060055 |
|
- Percentage of Shareholding |
|
47.56% |
47.56% |
|
20. Promoters and promoter group Shareholding : |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
|
500000 |
500000 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
6.42% |
6.42% |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
3.37% |
3.37% |
|
b) Non-encumbered |
|
|
|
|
- Number of Shares |
|
7283115 |
7283115 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
93.58% |
93.58% |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
49.07% |
49.07% |
UNAUDITED
BALANCE SHEET AS AT 30TH SEPTEMBER 2011
|
Particulars |
As
on 30.09.2011 (Unaudited) |
|
1. Shareholders
Funds |
|
|
a) Capital |
148.432 |
|
b) Share Application Money |
0.000 |
|
c) Reserve and Surplus |
2858.195 |
|
2. Loan Funds |
4471.826 |
|
3. Deferred Tax Liability/ (Assets) |
219.462 |
|
4. Total |
7697.915 |
|
1. Net Fixed Assets |
5558.030 |
|
2. Investments |
2.708 |
|
3. Current
Assets, Loans and Advances |
|
|
a) Inventories |
1680.734 |
|
b) Sundry Debtors |
1326.698 |
|
c) Cash and Bank Balances |
63.155 |
|
d) Other Current Assets |
60.443 |
|
e) Loans and Advances |
262.440 |
|
4. Less: Current Liabilities and Provision |
|
|
a) Liabilities |
1229.780 |
|
b) Provision |
26.513 |
|
5. Miscellaneous Expenditures (Not written off or adjusted) |
0.000 |
|
Total |
7697.915 |
Note:
- The Unaudited result for the quarter ended September 30, 2011 have
been reviewed by the audit committee and approved by the Board of Director
of the company in their meeting held on 28.10.2011.
- The above results pertain to the Automotive Wheel Rim manufacturing
segment which is the only business segment of the Company in terms of
Accounting Standard 17 on Segemental Reporting issued by the
- No Investor complaints were pending at the beginning of the quarter
no complaints were received during the quarter ended Sept 30, 2011. there
is no complaints pending at the end of the quarter.
- For the year / period under consideration the figures have been
regrouped / recasted wherever necessary, to make them comparable with
those of the corresponding figures of the previous year period.
FIXED ASSETS
- Land Freehold
- Land Leasehold
- Buildings
- Plant Machineries and Equipments
- Plant Machineries and Equipments – Rand D
- Furniture, Fixture and office Equipment
- Data Processing Equipments
- Data Processing Equipments – R and D
- Vehicles
- Die Toolings
- Die Toolings New Product – R and D
BUSINESS
DESCRIPTION
Subject is an India-based company. The Company is engaged in
the manufacture and sale of automotive wheel rims, which are used in automotive
vehicles. The Company has two operational manufacturing units located at Dappar
in
BOARD OF DIRECTOR
R. K Garg
Reuters Biography
Non- Executive Chairman of the Board RT
Shri. R. K. Garg is the Non-Executive Chairman of the Board of
Steel Strips Wheels Limited. Mr. Garg is a qualified Engineer. He has started
his career in the Government Service and started his own business in the year
1975. He is an industrialist and is a technocrat with more than three decades
of experience in the Industrial field including steel, acrylic fibre,
automotive wheel rims, civil construction and other allied activities. He is
the Promoter Director of Steel Strips Group. He serves as Director of Indian
Acrylics Limited, Steel Strips Wheels Limited, SAB Industries Limited, Steel
Strips Infrastructures Limited, Steel Strips Limited, Indlon Chemicals Limited,
Lavan Chemical Company Iran, SAB Developers Private Limited.
S. K Bansal
Reuter Biography
Non –Executive Independent Director RT
Shri. S. K. Bansal is Non-Executive Independent Director of
Steel Strips Wheels Limited. He is a B.Sc., F.C.A, CFE, A.I.I.A and A.H.I.A. He
is a Practising Chartered Accountant since 1974 and possess more than 34 years
of experience in the areas Income Tax, Company Law Audit and Accounts etc. Over
the years he occupied several advisory positions. He is a member of Association
of Certified Fraud Examiners,
M.M Chopra
Reuters Biography
Non- Executive Independent Director Board Member RT
Admiral (Retired) Shri. M. M. Chopra, AVSM (Retd.) is Non
Executive Independent Director of Steel Strips Wheels Limited. He has held
various prestigious positions in Indian Navy. After retiring from Navy, he
functioned in advisory capacities to many big corporates and was also the
Executive Director of M/s
S. S Grewal
Reuters Biography
Managing Director, Executive Director, Executive Independent Director Board
Member RT
Shri. S. S. Grewal is Non-Executive Independent Director of
Steel Strips Wheels Limited. He is a B.A. He has over 50 years of Practical
Experience occupying senior managerial Position in
S. S Jha
Reuters Biography
Non- Executive Independent Director Board Member RT
Shri. S. S. Jha is Non-Executive Independent Director of
Steel Strips Wheels Limited. He is an M.Sc. Physics from
Ute Mayr
Reuters Biography
Whole Time Director Board Member RT
Ms. Ute Mayr serves as Whole Time Director of Steel Strips
Wheels Limited. Ms. Mayr is having over 6 years experience with DEG- Deutsche
Investitions and Entwick lungsge sells chaft mbH,
H K. Singhal
Reuters Biography
Non- Executive Director Board Member RT
Shri. H. K. Singhal serves as Non-Executive Director of Steel Strips Wheels Limited. He is a Chartered Accountant has more than 30 years of experience in the area of corporate finance, banking, audit, treasury operations, internal management and management information systems. He has made contributions to the Company growth and implementation of investment plans and business strategies. Over the period he occupied several managerial and advisory positions. He holds directorship of various Companies and is a member of audit and other committees. He is the Whole time Finance Director of Indian Acrylics Limited, a group Company. He serves as Director of Indian Acrylics Limited, Steel Strips Wheels Limited, Steel Strips Limited., Steel Strips Infrastructures Limited, Indlon Chemicals Limited, SAB Udyog Limited, SAB Industries Limited, Steel Strips Mercantile Private Limited, Malwa Holdings Private Limited, Munak Financiers Private Limited, Munak Investments Private Limited, Arya Hospital Private Limited, SAB Developers Private Limited, S.J. Mercantile Private Limited Munak International Private Limited.
B. B Tandon
Reuters Biography
Non- Executive Independent Director Board Member RT
Prof. Dr. B. B. Tandon is Non-Executive Independent Director
of Steel Strips Wheels Limited. He is an M.Sc. from London School of Economics,
Phd. From Queens
A V Unnikrishnan
Reuters Biography
Deputy Managing Director, Whole time Director, Board Member RT
Shri. A. V. Unnikrishnan is Deputy Managing Director,
Whole-time Director of Steel Strips Wheels Limited. He is an B.A. He is
associated with the Group since 1980 and has held various portfolios since
then.
PRESS RELEASE
Accord Fintech (
05 October 2011
Accord Fintech (
05 October 2011
Accord Fintech (
03 October 2011
Accord Fintech (
02 September 2011
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. 49.08 |
|
|
1 |
Rs. 78.65 |
|
Euro |
1 |
Rs. 67.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.