MIRA
INFORM REPORT
|
Report Date : |
23.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
FORCE MOTORS LIMITED (w.e.f.
12.05.2005) |
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|
|
|
Formerly Known
As : |
BAJAJ TEMPO LIMITED |
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|
Registered
Office : |
Mumbai – |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
Date of
Incorporation : |
08.09.1958 |
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|
|
|
Com. Reg. No.: |
11-011172 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs.131.790 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L34102PN1958PLC011172 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB00002C |
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|
|
PAN No.: [Permanent Account No.] |
AAACB7066L |
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|
Legal Form : |
Public Limited Liability
Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Design, development and manufacture of automotive
components, aggregates and vehicles. |
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|
No. of Employees
: |
4662 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 13371000 |
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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 a Firodia Group Company. It is an established company
having fine track. Financial position of the company appears to be sound.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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/ Corporate Office/ Factory 1 : |
Mumbai – |
|
Tel. No.: |
91-20-22776380-89/
27476381 Extn. 4274 |
|
Fax No.: |
91-20-22775984/
2773017/ 27473017/ 27404678/ 27485281 |
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E-Mail : |
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|
Website : |
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Location : |
Owned |
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|
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|
Factory 2 : |
Pithampur Industrial Area, Pithampur, District Dhar - 454 775, |
|
Tel. No.: |
91-7292-253004 |
|
Fax No.: |
91-7292-308180 |
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|
|
|
Overseas
Office : |
Located at: v
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Abhay N. Firodia |
|
Designation : |
Chairman |
|
Qualification: |
B.A. (Hons.) |
|
Date of
Appointment : |
01.07.1987 |
|
|
|
|
Name : |
Mr. Prasan Firodia |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Sudhir Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S.N. Inamdar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pratap Pawar |
|
Designation : |
Director |
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|
Name : |
Mr. L. Lakshman |
|
Designation : |
Director |
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|
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|
Name : |
Mrs. Anita
Ramachandran |
|
Designation : |
Director |
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|
Name : |
Mr. S. Padmanabhan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Arun Seth |
|
Designation : |
Director |
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|
Name : |
Mr. Vinay Kothari |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Atul Chordia |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R.B. Bhandari |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Aparna G. Lambore |
|
Designation : |
Company Secretary |
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Audit Committee : |
|
|
Name : |
Mr. Vinay Kothari |
|
Designation : |
Member |
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|
Name : |
Mr. Pratap V Pawar |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. S Padmanabhan |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. S. A. Gundecha |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. Sanjay Bhandari |
|
Designation : |
Senior GM Sales (Tractors) |
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|
|
|
Name : |
Mr. Sunil
Dhadiwal |
|
Designation : |
GM Sales (Passenger Vehicles) |
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|
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|
Name : |
Mr.
Sudhanshu Shiromani |
|
Designation : |
GM Sales (Goods Vehicles) |
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|
Name : |
Mr. V. K.
Magoon |
|
Designation : |
D.G.M.
(Sales) |
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|
|
|
Name : |
Mr. Rajesh
Sharma |
|
Designation : |
D.M.
(Sales) |
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|
|
|
Name : |
Mr. Bobby
Markose |
|
Designation : |
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|
|
|
|
Name : |
Mr. V.
Ramakrishnan |
|
Designation : |
South I DDM
(Sales) |
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|
SERVICE |
|
|
Name : |
Mr. M.P.
Kanade |
|
Designation : |
Vice
President (Corporate
Quality and Product Support) |
|
|
|
|
Name : |
Mr. S.
Vijayan |
|
Designation : |
Sr.DM
(Service) |
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|
|
|
Name : |
Mr. V.N.
Bellary |
|
Designation : |
DDM
(Service) |
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|
|
|
International Sales : |
|
|
Name : |
Mr. Abhay
Desai |
|
Designation : |
GM (International Sales and Marketing) |
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|
|
|
Name : |
Mr. Sachin
Dasharath |
|
Designation : |
D.M.
(SAARC Countries) |
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|
|
|
Name : |
Mr.
Ravindra Patki |
|
Designation : |
D.M.
(Africa, |
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|
|
|
Purchase : |
|
|
Name : |
Mr. Satish
Kumar Changede |
|
Designation : |
Purchase |
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|
|
|
Name : |
Mr.
Radhakrishnan |
|
Designation : |
Corporate
HR |
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|
|
|
Name : |
Mr. Gogle |
|
Designation : |
Senior Manager – Finance |
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|
|
|
Name : |
Mr. A.G. Bhave |
|
Designation : |
Senior General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
533,230 |
4.05 |
|
|
6,285,042 |
47.70 |
|
|
6,818,272 |
51.75 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6,818,272 |
51.75 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
- |
|
|
4,172 |
0.03 |
|
|
35,600 |
0.27 |
|
|
799,401 |
6.07 |
|
|
839,373 |
6.37 |
|
|
|
|
|
|
3,245,018 |
24.63 |
|
|
|
|
|
|
1,583,016 |
12.01 |
|
|
690,583 |
5.24 |
|
|
5,518,617 |
41.88 |
|
Total Public shareholding (B) |
6,357,990 |
48.25 |
|
Total (A)+(B) |
13,176,262 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
13,176,262 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Design, development and manufacture of automotive
components, aggregates and vehicles. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity Per
Annum |
Installed
Capacity Per
Annum |
Actual
Production |
|
On-road automobiles having 4 or more wheels such as Light, Medium and Heavy
Commercial Vehicles, Jeep type vehicles and passenger cars |
Nos. |
60000* |
55000 |
26717 |
|
Agricultural Tractors |
Nos. |
12000 |
12000 |
1097 |
|
Diesel Engines for other purposes |
Nos. |
7500 |
6000 |
20 |
|
Moulds, Dies, Press Tools, Jigs and Fixtures |
Nos. |
1000 |
500 |
1599** |
* Inclusive of a
capacity not exceeding 10,000 numbers per annum for the manufacture of three
wheelers.
** Includes 1461
Capitalised for self-use.
Note: Installed Capacity is as estimated by the Managing
Director and accepted by the Auditors without verification.
GENERAL INFORMATION
|
No. of Employees : |
4662 (Approximately) |
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Bankers : |
v
State Bank of v Canara Bank v Standard Chartered Grindlays Bank Limited v Citibank NA v
Bank of v
Bank of v HDFC Bank Limited |
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Facilities : |
Notes: Item No.1 is secured by hypothecation of company stock of raw
materials, stock-in-process, stores, finished goods, tolls and book debts,
present and future, situated at Akurdi, District Pune and Pithampur, District
Dhar (MP), Charges created in favour of banks to the company rank pari passu
inter se. Item No. 2 is secured by first charge on all fixed assets (including
equitable mortgage over land and building) and second charge on all current assets
of the company, both present and future, situated at Akurdi, District Pune
and Pithampur, District Dhar (M.P.), Charges created in favour of banks to
the company rank pari passu inter se.
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.G. Bhagwat Chartered
Accountants |
|
Address : |
Pune, |
|
|
|
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Cost Auditors: |
Joshi Apte and Associates Cost Accountants |
|
Address : |
Pune, |
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|
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Joint Venture
Company : |
Man Force Trucks Private Limited |
|
|
|
|
Other Related
Parties : |
v Jaya Hind Investments Private Limited v Jaya Hind Industries Limited v Pinnacle Industries Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13213802 |
Equity Shares |
Rs.10/- each |
Rs.132.138 Millions |
|
|
|
|
|
Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13176262 |
Equity
shares fully paid up |
Rs.10/- each |
Rs.131.763 Millions |
|
|
[of the above
200918 Equity Shares are allotted as fully paid shares pursuant to a contract
without payment being received in cash and 5729934 Equity Shares are allotted
as fully paid Bonus Shares by capitalization of reserves] |
|
|
|
|
Add : Amount paid on Forfeited Shares |
|
Rs.0.027 Million |
|
|
Total |
|
Rs.131.790 Millions |
Note: Offer
on right basis for 17932 Equity Share of Rs.10/- each is kept in abeyance as per
provision of section 206A of the companies Act, 1956
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 |
131.790 |
131.790 |
131.790 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3210.983 |
2701.374 |
2143.396 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3342.773 |
2833.164 |
2275.186 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1190.778 |
620.027 |
940.844 |
|
|
2] Unsecured Loans |
1304.295 |
858.283 |
668.379 |
|
|
TOTAL BORROWING |
2495.073 |
1478.310 |
1609.223 |
|
|
DEFERRED TAX LIABILITIES |
157.296 |
88.029 |
338.229 |
|
|
|
|
|
|
|
|
TOTAL |
5995.142 |
4399.503 |
4222.638 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3925.312 |
2843.098 |
2892.550 |
|
|
Capital work-in-progress |
143.115 |
122.314 |
201.517 |
|
|
|
|
|
|
|
|
INVESTMENT |
567.446 |
567.447 |
571.567 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3113.075
|
1937.268
|
1960.312
|
|
|
Sundry Debtors |
1613.656
|
1502.273
|
1228.913
|
|
|
Cash & Bank Balances |
147.574
|
257.092
|
166.268
|
|
|
Other Current Assets |
0.057
|
0.302
|
0.463
|
|
|
Loans & Advances |
966.440
|
647.548
|
709.895
|
|
Total
Current Assets |
5840.802
|
4344.483
|
4065.851
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3610.726
|
2357.300
|
2399.233
|
|
|
Other Current Liabilities |
344.908
|
680.611
|
697.820
|
|
|
Provisions |
525.899
|
439.928
|
411.794
|
|
Total
Current Liabilities |
4481.533
|
3477.839
|
3508.847
|
|
|
Net Current Assets |
1359.269
|
866.644
|
557.004
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5995.142 |
4399.503 |
4222.638 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14804.529 |
9555.503 |
7490.656 |
|
|
|
Other Income |
935.993 |
963.068 |
3669.353 |
|
|
|
TOTAL |
15740.522 |
10518.571 |
11160.009 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
11058.165 |
7328.562 |
6462.379 |
|
|
|
Other Expenses |
3621.817 |
2408.891 |
2450.432 |
|
|
|
Expenses included in above items, Capitalised |
(208.953) |
(67.685) |
(72.201) |
|
|
|
TOTAL |
14471.029 |
9669.768 |
8840.610 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1269.493 |
848.803 |
2319.399 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
448.172 |
419.955 |
418.256 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
821.321 |
428.848 |
1901.143 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
235.142 |
(175.378) |
655.513 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
586.179 |
604.226 |
1245.630 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1385.024 |
887.469 |
(358.161) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
65.881 |
39.529 |
0.000 |
|
|
|
Provision for Tax on Distributed Profits |
10.688 |
6.720 |
0.000 |
|
|
|
Transfer to General Reserve |
1824.634 |
60.422 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
70.000 |
1385.024 |
887.469 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on FOB Basis |
271.709 |
269.640 |
300.847 |
|
|
TOTAL EARNINGS |
271.709 |
269.640 |
300.847 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
115.293 |
26.750 |
98.679 |
|
|
|
Components |
2525.904 |
1057.993 |
1240.857 |
|
|
|
Spare Parts for Resale |
0.000 |
0.000 |
0.341 |
|
|
|
Capital Goods |
34.365 |
3.113 |
0.153 |
|
|
|
Machinery Spares, Tools and Others |
71.909 |
12.777 |
18.323 |
|
|
TOTAL IMPORTS |
2747.471 |
1100.633 |
1358.353 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
44.49 |
45.86 |
94.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Net Sales |
4314.400 |
5286.460 |
5224.370 |
|
Total Expenditure |
3885.720 |
5009.610 |
4947.830 |
|
PBIDT (Excl OI) |
428.680 |
276.850 |
276.540 |
|
Other Income |
0.990 |
0.440 |
0.540 |
|
Operating Profit |
429.670 |
277.290 |
277.080 |
|
Interest |
59.950 |
78.710 |
102.630 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
369.720 |
198.580 |
174.450 |
|
Depreciation |
140.760 |
150.120 |
148.320 |
|
Profit Before Tax |
228.960 |
48.460 |
26.140 |
|
Tax |
35.930 |
6.010 |
2.750 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
193.040 |
42.450 |
23.390 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
193.040 |
42.450 |
23.390 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.72
|
5.74
|
11.16
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.55
|
4.49
|
25.38
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.41
|
5.97
|
27.32
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.15
|
0.84
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.09
|
1.75
|
2.25
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.25
|
1.16
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of
Establishment |
Yes |
|
2) Locality of
the firm |
Yes |
|
3) Constitutions of
the firm |
Yes |
|
4) Premises
details |
No |
|
5) Type of
Business |
Yes |
|
6) Line of
Business |
Yes |
|
7) Promoter’s
background |
Yes |
|
8) No. of
employees |
Yes |
|
9) Name of person
contacted |
No |
|
10) Designation
of contact person |
No |
|
11) Turnover of
firm for last three years |
Yes |
|
12) Profitability
for last three years |
Yes |
|
13) Reasons for
variation <> 20% |
-- |
|
14) Estimation
for coming financial year |
No |
|
15) Capital in
the business |
Yes |
|
16) Details of sister
concerns |
Yes |
|
17) Major
suppliers |
No |
|
18) Major
customers |
No |
|
19) Payments
terms |
No |
|
20) Export /
Import details (if applicable) |
No |
|
21) Market
information |
-- |
|
22) Litigations
that the firm / promoter involved in |
-- |
|
23) Banking
Details |
Yes |
|
24) Banking
facility details |
Yes |
|
25) Conduct of
the banking account |
-- |
|
26) Buyer visit
details |
-- |
|
27) Financials,
if provided |
Yes |
|
28) Incorporation
details, if applicable |
Yes |
|
29) Last accounts
filed at ROC |
Yes |
|
30) Major
Shareholders, if available |
No |
HISTORY
Subject is an integrated automobile company, which focuses
on design, development and manufacture of automotive components, aggregates and
vehicles in
Exports
The export turnover
for the year was Rs.271.700 millions against the previous year's export of
Rs.269.600 millions.
Orders for Machinery
Since the close of
the Accounting Year the Company has placed orders for new machinery, equipment
and other capital assets of value of Rs.358.300 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The growth story for the auto Industry in
Enhanced competition, uprated technologies, heightened performance
standards for environmental protection and safety - are a beneficial force
causing the automobile industry to modernize, adapt newer technologies and
processes and, in its own way, march towards market maturity.
PERFORMANCE OF THE
COMPANY
During the year the Company achieved higher turnover and sold 19,822
numbers of Light Cptnmercial Vehicles, (including Small Commercial ,Vehicles),
6,215 numbers of Multi Utility Vehicles and 1,013 numbers of Tractors and thus
achieved a growth of 55% in the sales turnover, which stood at Rs.14804.500
millions compared to the previous year’s sales turnover of 9555.500 millions.
The Traveller range of vehicles with the common rail engine, has been
well received. The growth in this product category has been gratifying. The
Company has taken various steps to enhance production in order to cater to this
growing market. A Euro IV version of the Traveller with further advancement in
optics, has also been introduced in the market.
Sale of Trax vehicles improved during the relevant period. The anomaly
in the taxation structure relating to Tariff Item 8702.10 remains not fully
resolved, and this does adversely affect the cost of the vehicle to the
customer, and thus the vehicles’ sales volumes.
The Trump 40, the Small Commercial Vehicle (SCV), has continued to gain
volumes during the relevant period. It is appreciated in the market for its
ruggedness, performance and operating economy.
The Tractor business of the Company is being re-energized. The OX-25 a
full service small tractor, has been especially appreciated both for Orchard
usage, and for regular tillage / haulage operations. Steps are initiated to
achieve significant growth in this product line.
New Product-lines,
new collaborations, Technologies and Plans
The new SUV developed by the Company has been named ‘Force One’. The
testing and certification activities for the vehicle have been completed. A
completely new Sales Channel comprising of 30 dealers pan-India, with
independent and dedicated Show Rooms, separate Service Facilities, as also
importantly - fully dedicated and well trained Sales and Service Staff teams -
are created, to support the sales of these SUVs. This sales’ vertical will
focus on the Personal Vehicles, as distinct from the Company’s traditional
product-line of Light Commercial Vehicles, or of Agricultural Vehicles
(tractors). Thus there are now three independent sales verticals in the
Company.
The technical collaboration arrangement with Daimler AG will facilitate
the introduction of a 6 to 8-seater ‘People Carrier’, a high end, high
performance vehicle; the introduction of which is expected towards the end of
the next financial year. The Company is considering setting up an independent
facility for the same at the Pithampur plant location, subject to satisfactory
conclusion of interactions with the Government of Madhya Pradesh.
It is planned that new additions in the Personal Vehicles Category -
like the MPV (Multi Purpose Vehicle) for which a technical collaboration
agreement is signed with Daimler AG, will also be sold through the new channel,
catering to the sophisticated and premium end of the market.
The Company has entered into agreement with MB tech (a company of the
Daimler Group) for technical support in respect of refinement - of electronic
architecture, installation of aggregates and systems, and build quality of the
coach work, interiors, etc. - of the Company’s products.
There is a separate technical support agreement entered into with Lotus
Engineering,
The introduction of the above products, and the fine- tuning of
Company’s product lineup, in interaction with the consultants, is expected to
result in substantially refining the Company’s product lineup - in keeping with
evolving market expectations and the emerging state of the art.
The cathodic paint shop installed at Pithampur was capitalized during
the period by taking it over from MAN
FORCE TRUCKS PRIVATE LIMITED during the period. This is a fifth generation CED
paint shop incorporating the latest technologies, and is expected to result in
significant benefits in product quality and cost optimisation.
The Company has embarked on a project to install a robotized top coat
painting line at Pithampur. Also ordered is a high capacity pressline. Both
these are expected to be commissioned in early 2012.
Heavy Commercial
Vehicles and Joint Venture of the Company - Man Force Trucks Private Limited
As reported earlier, the Company’s joint venture with MAN Truck and Bus
AG (earlier MAN Nutzfahrzeuge AG),
The revenue achieved by MFTPL, during the relevant period is 9290.805
millions. The total number of trucks sold in the domestic market was 3161 and
in the export market 809. This represents 115.49% increase in sales value over
the previous year.
As at 31st of March 2010, the Company had an accumulated book
loss of Rs. 2680.679 millions. The performance of the JV Company during the
relevant period also, was not as expected. The Company is in discussion with
the joint venture partner MAN, to resolve issues which arise from two aspects:
On the one hand, the need to offer vehicles with appropriate technology,
and to specially develop such products for the Indian market - more so in
regard to haulage vehicles, and on the other hand, regarding the need to
increase export sales.
Export of vehicles via the MAN global network was an important
consideration for the very formation of the joint venture. The Company had
completed the project for Heavy Commercial Vehicles independently. For this
project technology for engines, gearboxes, cabs, etc. was purchased on full
payment from MAN and ZF, etc. The joint venture was created with equity
participation from MAN, considering their offer to export upto 10,000 vehicles
per annum.
While the above basic issues relating to strategic alignment are being
resolved, the partners are working to find solutions for the success of the
project.
The financial results of MFTPL are being audited, and are expected to be
finalized and adopted in the near future.
FINANCIAL
PERFORMANCE
The Company sold 27050 numbers of vehicles during the financial year
2010-11 compared to 20595 vehicles in the previous year 2009-10. However the
proportion of LCVs and UVs have increased in relation to the Small Commercial
Vehicles (SCV).
The Profit before Interest and Tax from operations was 1048.500 millions
compared to operating profit for the previous year 2009-10 amounting to 380.000
millions.
The net profit of the Company after interest, depreciation and tax items
was 586.200 millions for the year 2010-11 as compared to 604.200 millions for
the year 2009-10, in which year exceptional item/gain accounted fort 216.600
millions in the profit.
Considering the improved operating performance of the Company, the Board
of Directors of the Company has recommended a dividend of 5 per share on
1,31,76,262 equity shares of 10 each for the consideration of the Members.
A sum of 1824.634 millions is transferred to the General Reserve
Account. The Reserves and Surplus of the Company as on 31st March,
2011 stood at 3210.983 millions.
CONTINGENT LIABILITY IN RESPECT OF:
|
Particulars |
31.03.2011 (Rs. in
millions) |
|
(a) Letters of Credit and Bank Guarantees outstanding |
286.421 |
|
(b) Taxes and Duties |
198.983 |
|
(c) Others |
217.550 |
|
(d) As reported earlier, a foreign company has initiated legal
proceedings in a foreign court, in respect of notional and unfounded claims
for damages, without there being any enforceable arrangement, relating to
export business. The Company has obtained opinion from a Senior Counsel, in
respect of these alleged claims against the Company. The Company has been
advised that such notional I unfounded claims are not as per the applicable
law nor these claims, if any, can be enforced in the Court of Law in |
|
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31ST DECEMBER,
2011
(Rs
in Millions)
|
S.
No. |
Particulars |
3 Months ended on 31.12.2011 (Unaudited) |
3 Months ended on 30.09.2011 (Unaudited) |
9 Months ended on 31.12.2011 (Unaudited) |
|
1 |
a) Net Sales / Income from Operations |
4922.695 |
4978.194 |
13984.968 |
|
|
b) Other Operating Income |
301.670 |
308.273 |
840.267 |
|
2 |
Expenditure : |
|
|
|
|
|
a) (Increase) / Decrease in Stock in trade and Work in
Progress |
(515.078) |
(80.212) |
(921.049) |
|
|
b) Consumption of Raw Materials |
4418.626 |
3903.735 |
11731.683 |
|
|
c) Employees Cost |
666.329 |
792.541 |
1986.821 |
|
|
d) Depreciation |
148.322 |
150.122 |
439.202 |
|
|
e) Other Expenditure |
377.948 |
393.559 |
1045.737 |
|
|
f)
Total |
5096.147 |
5159.745 |
14282.374 |
|
3 |
Profit from Operations before Other income, Interest and
Exceptional Items (1-2) |
128.218 |
126.722 |
542.861 |
|
4 |
Other Income |
0.545 |
0.443 |
1.977 |
|
5 |
Profit before Interest and Exceptional Items (3+4) |
128.763 |
127.165 |
544.838 |
|
6 |
Interest and Finance Charges |
102.628 |
78.706 |
241.281 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
26.135 |
48.459 |
303.557 |
|
8 |
Exceptional Items |
-- |
-- |
-- |
|
9 |
Profit (+)/ Loss(-) from Ordinary Activities before tax (7+8) |
26.135 |
48.459 |
303.557 |
|
10 |
Tax Expense |
2.748 |
6.009 |
44.683 |
|
11 |
Profit (+)/ Loss(-) from Ordinary Activities after Tax
(9-10) |
23.387 |
42.450 |
258.874 |
|
12 |
Extraordinary Items (Net of Taxes) |
-- |
-- |
-- |
|
13 |
Net Profit (+)/ Loss(-) for the period (11-12) |
23.387 |
42.450 |
258.874 |
|
14 |
Paid-up Equity Share Capital(Face Value of Rs. 10 per
share) |
131.790 |
131.790 |
131.790 |
|
15 |
Reserves excluding Revaluation Reserves as per balance sheet
of previous accounting year |
-- |
-- |
-- |
|
16 |
Earnings 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
annualized) |
1.77 |
3.22 |
19.65 |
|
17 |
Public shareholding |
|
|
|
|
|
- Number of shares |
6357990 |
6357990 |
6357990 |
|
|
- Percentage of shareholding |
48.25 |
48.25 |
48.25 |
|
18 |
Promoters and Promoter Group Shareholding (a) Pledged /
Encumbered |
|
|
|
|
|
Number of shares |
-- |
-- |
-- |
|
|
Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
-- |
-- |
-- |
|
|
Percentage of shares (as a % of the total share capital of
the Company) |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
(b) Non-encumbered |
|
|
|
|
|
Number of shares |
6818272 |
6818272 |
6818272 |
|
|
Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
Percentage of shares (as a % of the total share capital of
the Company) |
51.75 |
51.75 |
51.75 |
FIXED ASSETS
v
Free
v Lease hold Land
v Buildings
v Plant, Machinery and Equipment
v Dies and Jigs
v Electric Installation
v Furniture and Fixtures
v Electric Fittings
v Vehicles
v Aircraft
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.52.00 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.68.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.