MIRA
INFORM REPORT
|
Report Date : |
04.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
TUBE INVESTMENT OF INDIA LIMITED TI METAL FORMING UNIT OF TUBE INVESTMENT OF INDIA LIMITED |
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Registered
Office : |
"Dare House", 234 N S C Bose Road, Chennai –
600001, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of Incorporation
: |
09.09.1949 |
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Com. Reg. No.: |
18-2905 |
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Capital
Investment / Paid-up Capital : |
Rs.371.300 Millions |
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CIN No.: [Company Identification
No.] |
L35921TN1949PLC002905 |
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|
TAN No.: [Tax Deduction & Collection
Account No.] |
CHET00142C |
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PAN No.: [Permanent Account No.] |
AAACT1249H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufactures of Precision Steel Tubes and Strips, Car
Doorframes, Automotive and Industrial Chains and Bicycles. |
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No. of Employees
: |
3150 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
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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 39660000 |
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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 well
established and a reputed company having fine track. Financial position of the
company appears to be sound. Fundamentals are strong and healthy. 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 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
“Dare House”, 234 N S C
Bose Road Chennai – 600 001, |
|
Tel. No.: |
91-44-42177770/26390194/ 26390388 |
|
Fax No.: |
91-44-42110404/26390634 |
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E-Mail : |
customercare@ticyclesindia.com marketingstrips@tii.murugappa.com powertransmission@tidc.murugappa.com |
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Website : |
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Plant Location : |
Bicycles &
E-Scooters
Engineering
Metal Formed
Products
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. M M Murugappan |
|
Designation : |
Chairman |
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Name : |
Mr. L. Ramkumar |
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Designation : |
Managing Director |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Name : |
Mr. Pradeep V Bhide |
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Designation : |
Director |
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Name : |
Mr. S Sandilya |
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Designation : |
Director |
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Name : |
Mr. N. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
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Designation : |
Director
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KEY EXECUTIVES
|
Name : |
Mr. S Suresh |
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Designation : |
Company Secretary
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Names
of Shareholders |
|
|
|
Shareholding
of Promoter Group |
|
|
Indian
|
|
|
|
Individuals / Hindu Undivided Family |
16129615 |
8.98 |
|
Bodies Corporate |
72142145 |
40.14 |
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Any Other (specify) |
|
|
|
Trusts |
1398630 |
0.78 |
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Sub Total |
89670390 |
49.90 |
|
Foreign |
|
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|
Institutions |
|
|
|
Mutual
Funds/ Axis |
21501240 |
11.96 |
|
Financial
Institutions/Banks |
900145 |
0.50 |
|
Insurance
Companies |
6048306 |
3.37 |
|
Foreign
Institutional Investors |
14922243 |
8.30 |
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Any Other (specify) |
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Foreign
Bodies Corporate |
5053 |
-- |
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Sub
Total |
43376987 |
24.14 |
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Non-Institutions |
|
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|
Bodies
Corporate |
12423219 |
6.91 |
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Individuals
- |
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|
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Individual
shareholders holding nominal share capital up to Rs.0.100 million. |
21977519 |
12.23 |
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Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million. |
10880812 |
6.05 |
|
Any
Other (specify) NRIs/OCBs |
|
|
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Non Resident Indian |
1228496 |
0.68 |
|
Trusts |
135136 |
0.08 |
|
Clearing
Members |
20939 |
0.01 |
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Sub Total |
46666121 |
25.97 |
|
Total Public Shareholding (b) |
90043108 |
50.10 |
|
Total (a) + (b) |
179713498 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
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|
|
|
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1) Promoter and Promoter Group |
-- |
-- |
|
2) Public |
6430630 |
3.45 |
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Sub Total |
6430630 |
3.45 |
|
Total (a) + (b) + (c) |
186144128 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures of Precision Steel Tubes and Strips, Car Doorframes,
Automotive and Industrial Chains and Bicycles. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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|
|
|
|
Traded Goods – Cycles |
Nos. |
-- |
693404 |
|
ERW / CDW Tubes |
Tonnes |
207911 |
127406 |
|
Cold Rolled Steel
Strips |
Tonnes |
100120 |
49475 |
|
E-Scooters |
Nos. |
-- |
5579 |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
3150 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
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Memberships : |
Confederation of
Indian Industry |
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Subsidiary
Companies : |
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Joint Venture
Companies : |
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CAPITAL STRUCTURE
As on 30.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
215000000 |
Equity Shares |
Rs.2/- each |
Rs.430.000 Millions |
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|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
186144128 |
Equity Shares |
Rs.2/- each |
Rs.372.288
Millions |
|
|
|
|
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As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
215000000 |
Equity Shares |
Rs.2/- each |
Rs.430.000 Millions |
|
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
185666931 |
Equity Shares |
Rs.2/- each |
Rs.371.300
Millions |
|
|
|
|
|
Note:
Of the above:
(a) 1078910 Shares of Rs.10 each (Before Sub division of Shares) were issued for consideration other than cash.
(b) 27311792 Shares of Rs.10 each (Before Sub division of Shares) were issued as Bonus Shares by capitalization of Reserves.
(c) 10620 Shares of Rs.10 each (Before Sub division of Shares) were issued to the erstwhile Share holders of TIDC India Limited on account of Amalgamation
(d) 886931 Shares of Rs.2 each have been allotted to employees, to date, pursuant to the exercise of their option under the Employees Stock Option Scheme.
The above is after adjustment for the cancellation of 6150386 Shares of Rs.10 each (Before Sub division of Shares) which were bought back at a price of Rs.100 per Share from the Share holders pursuant to the offer for Buy-back of Shares.
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 |
371.300 |
369.500 |
369.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9542.700 |
7799.500 |
7000.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9914.000 |
8169.000 |
7369.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6145.400 |
4728.000 |
2919.700 |
|
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2] Unsecured Loans |
1092.600 |
2330.200 |
1077.900 |
|
|
TOTAL BORROWING |
7238.000 |
7058.200 |
3997.600 |
|
|
DEFERRED TAX LIABILITIES |
517.600 |
413.100 |
457.700 |
|
|
|
|
|
|
|
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TOTAL |
17669.600 |
15640.300 |
11824.800 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5608.400 |
5276.300 |
5141.500 |
|
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Capital work-in-progress |
312.100 |
429.300 |
296.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
9105.500 |
7494.400 |
4543.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3876.900
|
2943.900
|
2338.100
|
|
|
Sundry Debtors |
3733.700
|
3257.800
|
2439.700
|
|
|
Cash & Bank Balances |
136.400
|
86.200
|
120.700
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1079.200
|
993.600
|
900.100
|
|
Total
Current Assets |
8826.200
|
7281.500 |
5798.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4956.600
|
2989.500 |
3612.500
|
|
|
Other Current Liabilities |
690.100
|
1377.700 |
0.000
|
|
|
Provisions |
535.900
|
474.000 |
343.100
|
|
Total
Current Liabilities |
6182.600
|
4841.200 |
3955.600 |
|
|
Net Current Assets |
2643.600
|
2440.300
|
1843.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17669.600 |
15640.300 |
11824.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
29661.700 |
23456.400 |
20610.900 |
|
|
|
Other Income |
257.200 |
162.800 |
758.500 |
|
|
|
TOTAL (A) |
29918.900 |
23619.200 |
21369.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed |
17115.900 |
13622.300 |
13800.800 |
|
|
|
Purchase of Traded Goods |
1364.300 |
693.800 |
|
|
|
|
Employee Cost |
2416.300 |
1780.600 |
|
|
|
|
Operating and Other Costs |
5995.400 |
4991.800 |
|
|
|
|
Exceptional Items |
(206.000) |
399.500 |
|
|
|
|
Accretion to Stock |
(475.200) |
(119.500) |
(211.700) |
|
|
|
TOTAL (B) |
26210.700 |
21368.500 |
19666.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3708.200 |
2250.700 |
1703.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
604.200 |
287.600 |
281.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3104.000 |
1963.100 |
1421.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
691.000 |
668.100 |
591.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
2413.000 |
1295.000 |
830.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
716.400 |
482.900 |
108.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1696.600 |
812.100 |
721.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3346.100 |
3111.100 |
2776.100 |
|
|
|
|
|
|
|
|
|
Less |
Final Dividend including Tax on Dividend for 2009-10 |
0.200 |
0.000 |
0.000 |
|
|
Add |
Dividend on Own Shares held through Trust |
6.600 |
4.400 |
4.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
150.000 |
150.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
233.400 |
108.300 |
25.000 |
|
|
|
Interim Dividend @ `1.50 (Previous Year Nil) per Equity Share
of `2/-
each |
278.400 |
0.000 |
0.000 |
|
|
|
Tax on Interim Dividend (Net) |
36.600 |
0.000 |
0.000 |
|
|
|
Dividend Proposed - Final @ `1.50 (Previous Year `1.50)
per Equity Share of `2/- each |
278.500 |
277.200 |
184.800 |
|
|
|
Tax on Final Dividend |
45.200 |
46.000 |
31.400 |
|
|
BALANCE CARRIED
TO THE B/S |
3927.000 |
3346.100 |
3111.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1617.200 |
1099.800 |
1835.000 |
|
|
TOTAL EARNINGS |
1617.200 |
1099.800 |
1835.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1378.000 |
1488.900 |
1454.000 |
|
|
|
Stores & Spares |
133.400 |
59.200 |
49.800 |
|
|
|
Capital Goods |
1231.000 |
729.000 |
439.500 |
|
|
|
Others |
149.800 |
359.800 |
232.500 |
|
|
TOTAL IMPORTS |
2892.200 |
2636.900 |
2175.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
9.16 |
4.39 |
3.91 |
|
|
|
Diluted |
9.11 |
4.38 |
3.91 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3RD
Quarter |
|
Net Sales |
8742.600 |
8519.200 |
8792.200 |
|
Total Expenditure |
7716.400 |
7686.400 |
7993.800 |
|
PBIDT |
1026.200 |
832.800 |
798.400 |
|
Other Income |
12.400 |
130.200 |
9.400 |
|
Operating Profit |
1038.600 |
963.000 |
807.800 |
|
Interest |
154.800 |
176.400 |
175.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
883.800 |
786.600 |
632.700 |
|
Depreciation |
183.100 |
181.800 |
197.500 |
|
Profit Before Tax |
700.700 |
604.800 |
435.200 |
|
Tax |
200.500 |
153.400 |
163.500 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
500.200 |
451.400 |
271.700 |
|
Extra-ordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjusted Profit |
0.000 |
0.000 |
0.000 |
|
Net Profit |
500.200 |
451.400 |
271.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.67
|
3.44
|
3.38
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.14
|
5.48
|
4.03
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.72
|
17.78
|
7.59
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.15
|
0.11
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.35
|
0.59
|
1.08
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.50
|
1.47
|
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
PERFORMANCE
The Company performed they’ll during the year 2010-11, crossing the Rs.30000.000
millions mark in gross revenue terms, for the very first time. All the business
segments of the Company registered a double digit growth and maintained their
profitability despite a sustained period of high costs. Strong consumer demand
contributed to the robust volume growth in all the product lines of the
Company. The operating profit before depreciation and interest for the year
2010-11 at Rs.3500.000 millions was up by 32% over the previous year. Together
with an extraordinary income of Rs.210.000 millions on sale of land and
building, the Company’s Profit before Tax for 2010-11 was Rs.2410.000 millions,
a growth of 109% over the previous year.
The Bicycles division of the Company crossed Rs.10000.0000 millions in
sales for the first time, reporting a revenue of Rs.11210.000 millions in
2010-11, a growth of 18% over the previous year It was only four years ago that
the division crossed the Rs.5000.000 millions mark in revenue – a fine example
of how customer insight-led product development, operational excellence and
superior service can spur faster growth.
The year also marked the introduction of the first indigenous carbon
fibre bicycle and launch of the internationally renowned ‘GT’ and ‘Mongoose’
brand cycles in the domestic market. These products complement their range of
premium products and give us a position at all price points in the premium
segment.
During the year, 78 new models were introduced and these were received
well.
With a slew of premium products, the number of outlets selling the
division’s products increased too. Currently, 647 outlets retail the Bicycle
division’s entire range of products, of which 175 sell exclusively the
division’s branded products.
In the Electric Scooters segment, lesser number of vehicles was sold
during the year owing to a contraction in demand. Considering the difficult
market conditions, the Company restructured the operations and further
controlled its costs. With the incentives announced by the Government of India
for the development and sale of electric vehicles in the country and rising
fuel prices, renewed consumer interest is being witnessed for these products.
It may, however, take a longer time for these products to gain acceptance and
establish a position for themselves in the market place. The Wholly Foreign
Owned Enterprise set up by the Company in
Overall, the division reported a profit before interest and tax of
Rs.780.000 millions, representing a growth of 14% over the Previous year, made
possible by the growth in volume, better product mix, control over cost and
keeping the funds employed in the business, low.
The Engineering division of the Company too had a very good year,
clocking a turnover of `Rs.11950.000 millions, a growth of 34% over the
previous year. The growth in this division over the last two years has been
high, riding largely on the growth of the Auto industry in the country. Having
come out of the recession in early 2009, all segments of the Auto industry have
grown significantly in the last two years, thanks to the policies of the
Government of India. Being a key supplier of tubes to all segments of this
industry, the Engineering division was able to register a growth of 21% in the
value-added tubes segment and an overall growth of 20% in tubes. In the cold
rolled steel strips segment too, the division grew 7%, despite the dominance of
large integrated mills. The growth numbers of this division would have been
higher but for the fact that capacities were fully taken up and some
requirements of customers could not be met.
The product range in the tubes segment is being augmented and plans are
afoot to introduce new products. The division will have to invest in new
capacities to meet the growing demand in the auto sector. Substantial
investments are expected to be made in the current financial year.
This division reported a profit before interest and tax of Rs.1130.000
millions, a growth of 32% over the previous year, contributed by better product
mix, higher volume and a combination of internal operating efficiencies besides
partial pass through of cost increases. The funds employed were also kept at
around the same level as the previous year, despite the higher activity,
yielding a higher return on the capital employed.
In the Metal Formed Products division, all product lines grew at a
higher rate, except the sections for railway wagons. The Automotive chains
segment grew by 30%, which was higher than the growth of 26% registered by the
two wheeler segment of the Auto industry, resulting in an improvement in the
market share. Here again, constraints were faced in meeting in full the
requirements of customers despite having increased capacity and productivity.
In Industrial chains, the segment grew 11% in the domestic market and 60% in
the export market. This was enabled by the strong industrial growth and the
revival of demand from overseas customers. In the Fine Blanked products
segment, significant progress was achieved with the commercialization of the
new products developed, resulting in a growth of 138%. This has also helped de-risk
some of the revenue streams as the user base has been expanded. With the launch
of more products, this segment offers good potential for growth.
Supply of car doorframes grew 17% in line with industry growth. This
segment too achieved a landmark in that the figure of 1 Million sets of car
doorframes sold in a year was crossed for the first time, the volume having
doubled in just five years. Full fledged operations commenced at the re-located
car doorframe facility at Sanand in
The division recorded a turnover of `775 crores, a growth of 34% over
the previous year. Profit before interest and tax grew by 26% with high volume
growth from key product lines. The margin, however, was slightly impacted due
to extra costs incurred to service customers on time, entry of a regional
player in the wagons business resulting in intense price pressure and an
inability to pass on cost increases fully. The return on capital employed
remained healthy, despite the significant investments made recently in creating
additional capacity and establishing state-of the- art facilities.
SUBSIDIARY
COMPANIES
CHOLAMANDALAM
INVESTMENT AND FINANCE COMPANY LIMITED
Cholamandalam Investment and Finance Company limited (CIFCL), a
subsidiary of the Company (60.56% equity holding), has reported a consolidated
gross income of Rs.12220.000 millions (previous year: Rs.9560.000 millions) and
consolidated profit before tax of Rs.1230.000 millions (previous year:
Rs.570.000 millions) in the financial year 2010-11. During the year under
review, CIFCL refocused on its core businesses viz., vehicle finance, home
equity and business finance, which enabled a strong performance. The profit for
the year is after reckoning Rs.2270.000 millions for the potential
delinquencies in the personal loan segment and exceptional items in a
subsidiary and Rs.210.000 millions on account of additional provision on all
standard assets in compliance with the new Provisioning norms introduced by the
Reserve Bank of India in January 2011.
CHOLAMANDALAM MS
GENERAL INSURANCE COMPANY LIMITED
Cholamandalam MS General Insurance company limited (CMSGICL), a joint venture with Mitsui
Sumitomo Insurance Company limited ,
Japan, achieved a Gross Written Premium of Rs.9680.000 millions during 2010-11
(previous year Rs.7850.000 millions), registering a growth of 23%. The General
Insurance industry in
TUBULAR PRECISION
PRODUCTS (
Tubular Precision Products (
FINANCIERE C10 SAS
TICI MOTORS (
TICI Motors (
RESEARCH AND
DEVELOPMENT
In continuing its efforts to develop application oriented technologies
through the Nano Functional Materials Centre at Indian Institute of Technology,
The Company continues to participate at the Advanced Steel Products and
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The Indian economy is estimated to have recorded a growth of 8.5% during
2010-11 following on the 7.3% growth achieved in the previous year, clearly
emphasizing that
The Company faced a new kind of challenge during the year; at least two
of its businesses encountered capacity constraints in the wake of a surge in
demand. This challenge spurred the team to stretch all its resources to the
maximum, resulting in the Company posting its best performance to date. The
favourable economic environment in the country and high demand from the user
segments of the Company helped it post a turnover of Rs.31300.000 millions and
an operating profit of Rs.2210.000 millions, a growth of 28% and 30%
respectively, over the previous year.
BUSINESS REVIEW
Bicycles /
Components / Electric Scooters
TI’s Presence
The Bicycles/Components/Electric scooters division of the Company
comprises of bicycles of the standard and special variety including alloy bikes
and specialty performance bikes, bicycle components sold as spares, fitness
equipment (motorized tread mills, elliptical, recumbent bikes etc.) and
Electric scooters.
Industry Scenario
The bicycle industry in
The Company and three other players cater to over 90% of the Indian
bicycle market; regional players and imports account for the rest. The Company
enjoys an overall market share of close to 30% while continuing to lead the
specials segment with a dominant market share.
The fitness equipment business in the country normally caters to the
home and commercial segments. The Company’s fitness business is presently
restricted to the home segment, which comprises of six national players,
importers and regional players. This segment is estimated at Rs.4000.000
millions, growing by 13% annually.
The size of the nascent Indian Electric scooters industry was estimated
at about 40,000 scooters in 2010-11 as against 60,000 scooters in the previous
year. There has been a significant consolidation in the industry with a number
of regional players/importers vacating their position due to their inability to
meet the exacting quality and service requirements of the customer. This has
reduced the customers’ confidence in product reliability, affecting overall
industry penetration. By the close of 2010-11, there were only three major
national players left in this segment. It is expected that the sustained focus
of the national players on product quality and service coupled with government
support and rising fuel prices will improve the off-take of this product in the
years ahead.
Review of
Performance
During the year under review, the division recorded a growth of 12% in
the volume of bicycles sold to the trade channel. Bicycles sold by the Company
crossed 4 Million in 2010-11, even as State Governments purchased a lower
quantity than before. The business also crossed Rs.10000.000 millions in turnover
in 2010-11. The Profit before Interest and Tax grew by 14% over the previous
year, despite competitive market conditions and rising input costs,
particularly steel. This improvement was made possible due to the focus on the
special, premium and performance bikes segments, market activation initiatives
and the various steps taken by the Company to promote “Cycling”. The Company
continues to be the front runner in terms of providing quality products through
specialized outlets, which offer the customer the best purchasing experience.
As of date, the Company has 647 retail outlets, contributing 25% of the total
revenue from this segment.
During the year, the Company strengthened its position in the industry
through a number of timely launches viz.:
• Introduced a bicycle with a carbon frame, for the first time in the
country, designed and manufactured at the Company’s plant. These bikes,
launched under the “Montra” brand, were benchmarked with global performance
bikes and positioned for the urban health and fitness conscious segment.
• Introduced the “GT” range of bicycles - an entry level bike in the
premium segment.
• Introduced the “Mongoose” range of bicycles in the BMX segment.
These and other models introduced during the year under review met with good
customer response and accounted for 23% of the Company’s revenues.
The fitness industry in
The sale of Electric scooters was lower than the previous year, due to a
demand contraction. This trend is expected to be reversed consequent to the
concessions announced by the Central Government during the last quarter of
2010-11 and the rising price of petrol.
Engineering
TI’s Presence
The Engineering division of the Company comprises of cold rolled steel
strips and precision steel tubes viz., Cold
Drawn Welded tubes (CDW), Electric Resistance Welded tubes (ERW) and
value-added tubular components. These products cater to the growing
requirements of the automotive, boiler, bicycles and general engineering
industries.
Industry Scenario
For the second successive year, the Indian automotive industry reported
high growth, despite high interest rates and rising prices due to increasing
input costs. All sectors of the industry performed creditably; the two wheeler
segment grew 26% and passenger cars by 30%. A large portion of this growth came
from the rural sector, where a combination of favourable monsoons, higher
output and higher price realization for agricultural products translated into higher
disposable incomes. Increased production by the industry was thus quickly
absorbed. The Company augmented its production capacity by deploying equipment
brought back from Tubular Precision Products (
Global markets reported growth, though small. Fears of a sovereign debt
crisis in some of the European economies and the overhang of the crisis in the
American markets pegged growth down. The advanced economies, however, posted
encouraging growth in the last calendar quarter and the first quarter of this
calendar year, inspiring optimism for 2011.
The Cold Rolled Steel Strips segment is dominated by integrated steel
manufacturers. The Company continues to be a niche player focusing on special
grades, catering to diverse applications in various sizes and grades. The
Review of
Performance
During the year under review, volumes grew 16%, turnover was up by 34%
and this division crossed Rs.10000.000 millions in sales during the year. The
export of tubes grew 15% largely catalyzed by robust growth coming out of
Service levels to customers, a key thrust area, improved across all
plants through higher efficiency levels and better throughput. Higher volume
and better operating efficiencies led to an improvement in the Profit before
Interest and Tax by 32%. A new four-year wage settlement with the employees’
Metal Formed
Products
TI’s presence
Automotive and industrial chains, fine blanked products, roll formed car
doorframes and cold rolled formed sections for railway wagons and passenger
coaches constitute the Company’s Metal Formed Products.
Industry scenario
The Company is one of the three major players manufacturing roller
chains in
There are currently two established roll-formed car doorframe
manufacturers in
The Government of India intends to raise the share of goods transported
by the Indian Railways, catalyzing the demand for additional wagons. The
Company, another national player and a few regional players cater to the
growing demand.
Review of
Performance
Strong volume growth was witnessed in the domestic market for car
doorframes, automotive and industrial chains on the back of good growth in the
user industries, and higher exports. This contributed to the higher growth in
turnover of this segment by 34% and profit before interest and tax by 26%.
Though the European economies have not revived in full, demand from the
Company’s customers in these economies was higher on account of the superior
quality and value proposition provided by the products of the Company. Demand
from overseas customers and the French subsidiary of the Company increased
during the year. The Company enhanced capacity and productivity in addressing
the growing automotive chain requirements of Original Equipment Manufacturers
and the replacement market. Because of the growth of the passenger car industry
by 30% and particularly of those models for which doorframes are manufactured
by the Company, the doorframe segment grew by 17% in volume terms. The product
range in the railway sections business was enhanced with the commencement of
the manufacture of wall and roof assemblies for passenger coaches. Riding on
the growth of the passenger car industry and the better response to some of the
models for which doorframes are manufactured by the Company, the doorframe
segment grew by 17% in volume terms.
FINANCIAL REVIEW
Profits and
Profitability
Prices of key raw materials like steel remained volatile during the year
under review. High inflation accentuated by high oil prices arising out of the
political unrest in the Middle East and North Africa increased input costs
significantly. The Company’s focus on cost reduction through operational
efficiencies and partial pass through of the cost increases enabled it to
maintain the operating margin, before exceptional items at 7.4%. During
2009-10, the Company had provided for the likely diminution in the value of its
investment in Tubular Precision Products (
BUSINESS
DESCRIPTION
Subject is engaged in the production of bicycles/components/electric scooters, engineering and metal formed products. The Company operates in three segments: Cycles/Components /E Scooters, Engineering and Metal Formed Products. The Bicycles/Components/Electric scooters division of the Company consists of bicycles of the standard and special variety, including alloy bikes and specialty performance bikes, bicycle components sold as spares, fitness equipment and electric scooters. The Engineering division of the Company consists of cold rolled steel strips and precision steel tubes, cold drawn welded tubes (CDW), electric resistance welded tubes (ERW) and value-added tubular components. The Company has presence in automotive and industrial chains, fine blanked products, roll formed car doorframes and cold rolled formed sections for railway wagons and passenger coaches constitute the Company’s Metal Formed Products. For the nine months ended 31 December 2010, Tube Investments of India Limited revenues increased 54% to RS36B. Net income increased RS1.56B, up from RS754.7M. Revenues reflect an increase in income from e-scooters, higher revenue from Metal Formed products and a rise in income from insurance divisions. Net income also reflects higher gross & operating profit margins. Tube Investment of India Limited is an Indian based Company.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2011
Rs. in
Millions
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
|
|
|
|
(a) Net Sales |
8745.800 |
8463.200 |
25903.100 |
|
(b) Other Operating Income |
46.400 |
56.000 |
150.900 |
|
Total Revenue |
8792.200 |
8519.200 |
26054.000 |
|
Expenditure |
|
|
|
|
Decrease / Increase in stock in trade and
work in Process |
(153.100) |
(231.700) |
(502.800) |
|
Consumption of
Raw Materials (Net) |
5042.600 |
5086.300 |
15441.400 |
|
Purchase of
Traded Goods |
595.000 |
393.500 |
1256.700 |
|
Employee Cost |
641.400 |
663.800 |
1922.500 |
|
Depreciation |
197.500 |
181.800 |
562.400 |
|
Other
Expenditure |
1867.900 |
1774.500 |
5278.800 |
|
Financing
Charges |
--- |
--- |
--- |
|
Total |
8191.300 |
7868.200 |
23959.000 |
|
Profit /
(Loss) From Operations before other Income Interest and Exceptional Items |
600.900 |
651.000 |
2095.000 |
|
Other Income |
9.400 |
130.200 |
152.000 |
|
Profit/(Loss) before Interest and Exceptional items |
610.300 |
781.200 |
2247.000 |
|
Interest |
175.100 |
176.400 |
506.300 |
|
Profit / (Loss) after interest before Exceptional
items |
435.200 |
604.800 |
1740.700 |
|
Deferred Tax |
163.500 |
153.400 |
517.400 |
|
Profit After Tax |
271.700 |
451.400 |
1223.300 |
|
Minority
Interest |
0.000 |
0.000 |
0.000 |
|
Net Profit |
271.700 |
451.400 |
1223.300 |
|
Paid – Up
Equity Share Capital (Face Value of Rs. 2 Each) |
372.300 |
371.800 |
372.300 |
|
Basic Earnings
Per Share |
1.46 |
2.43 |
6.58 |
|
Diluted
Earnings per Share |
1.46 |
2.43 |
6.58 |
|
Debt Equity
Ratio |
|
|
|
|
Debt Service
Coverage Ratio |
-- |
-- |
-- |
|
Interest
Service Coverage Ratio |
-- |
-- |
-- |
|
Aggregate of
Public Shareholding |
|
|
|
|
Number of
Shares |
96473738 |
96238308 |
95945861 |
|
% of
Shareholding |
51.83% |
51.77% |
51.71% |
|
Promoters and Promoter group share holding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
- Number of Shares |
1338610 |
1338610 |
1338610 |
|
- Percentage of shares(as a % of the total share capital of the company) |
1.49% |
1.49% |
1.49% |
|
- Percentage of shares(as a % of the total share capital of the company) |
0.72% |
0.72% |
0.72% |
|
b) Non-encumbered |
|
|
|
|
- Number of Shares |
88331780 |
88331780 |
88331780 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
98.51% |
98.51% |
98.51% |
|
- Percentage of Share (as a % of the total share capital of the company) |
47.45% |
47.45% |
47.45% |
Notes
1.
The above results
have been reviewed by the Audit Committee and approved by the Board of
Directors at its meeting held on 1st February, 2012.
2.
The Statutory
Auditors of the Company have carried out a Limited Review of the above
Unaudited Standalone and Unaudited Consolidated Financial Result for the
quarter and nine months ended 31st December, 2011.
3.
The Board of
Directors has declared an interim dividend of Rs.2/- (Rupees Two only) per
Equity share of Rs.2/- each for the Financial Year 2011-12.
4.
During the
quarter, the Company granted 126800 Stock Options to certain employees of the
Company
5.
During the quarter,
the Company allotted 255430 shares to its employees consequent other exercise
of options granted under the Company's Employees Stock Option Scheme.
6.
During the
quarter, the Company invested Rs 5.600 millions in its Wholly Owned Subsidiary,
TICI Motors (
7.
Notes on
Consolidated Financial Results
a)
During the quarter ended 31st December, 2011, Cholamandalam Investment and
Finance Company Limited, (CIFCL), a Subsidiary of the Company, sold by way of
bilateral assignment some of its hypothecation loan receivables. The gain on
assignment is accounted over the residual tenor of the receivables sold as
against upfront recognition in earlier years. Had CIFCL recognized the gain
upfront as in earlier years, consolidated Profit before Interest and Tax and
consolidated Profit after Tax would have been higher by Rs.152.600 millions and
Rs.92.200 millions respectively for the quarter and nine months ended 31st
December, 2011. This change is also in line with the draft revised guidelines on
Securitization transaction issued by Reserve Bank of
b)
Insurance Regulatory and Development Authority (IRDA) has issued an Order dated
3rd January 2012 directing member companies of the Indian Motor Third Party
Insurance Pool to provide for Motor Pool losses, calculated at an ultimate loss
ratio of 159%, 188%, 200% and 213% for the years 2007-08 to 2010-11
respectively and relaxed the Solvency Margin ratio required to be maintained
for the next 4 years commencing 31st March 2012. The industry is awaiting
guidance from IRDA on the various clarifications it has sought through the
General Insurance Council including the loss ratio for the year 2011-12.
Pending clarification from IRDA,
Cholamandalam MS General Insurance Company Limited.,(CMSGICL), a Subsidiary of
the Company, has estimated the share of losses from Indian Motor Pool Third
Party Insurance for the nine months period ended December 2011 as Rs.33.60 Cr.
In the event that the Motor Pool Loss is required to be provided for all the
years from 2007-08102011-12, Management of CMSGICL has estimated that an
additional sum of Rs.117.50 Cr. is required by 31st March 2012.
8
During the
quarter, 10 investor complaints were received and resolved. There was no
complaint pending both at the beginning and end of the quarter.
9
The above
financial results are also available on our website www.tiindia.com
10 Previous period figures have been re-grouped /
re-classified, where necessary.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF
THE LISTING AGREEMENT
Rs. in Millions
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
1. Segment Revenue |
|
|
|
|
Cycles / Components / E Scooters |
3503.300 |
3200.200 |
9886.500 |
|
Engineering |
3683.500 |
3542.300 |
10822.400 |
|
Metal Formed Products |
1922.700 |
2072.100 |
6323.000 |
|
Un-allocable Operating Income |
1.300 |
0.400 |
2.000 |
|
Insurance |
|
|
|
|
Other Financial Services |
|
|
|
|
Others |
|
|
|
|
TOTAL |
9110.800 |
8815.000 |
27033.900 |
|
Less : Inter Segment Revenue |
318.600 |
295.800 |
979.900 |
|
TOTAL REVENUE |
8792.200 |
8519.200 |
26054.000 |
|
|
|
|
|
|
2. Segment Revenue |
|
|
|
|
Cycles / Components / E Scooters |
160.800 |
210.600 |
591.500 |
|
Engineering |
300.800 |
285.900 |
934.700 |
|
Metal Formed Products |
200.200 |
256.400 |
783.900 |
|
Un-allocable Operating Income |
|
|
|
|
Insurance |
|
|
|
|
Other Financial Services |
|
|
|
|
Others |
|
|
|
|
TOTAL |
661.800 |
752.900 |
2310.100 |
|
|
|
|
|
|
Interest |
(175.100) |
(176.400) |
(506.300) |
|
Other Net Un-allocable Income /
(Expenditure) / Inter Segment Eliminations |
(51.500) |
28.300 |
(63.100) |
|
Un-allocable Exceptional Items |
|
|
|
|
Net
Profit before Tax |
435.200 |
604.800 |
1740.700 |
|
|
|
|
|
|
3.
Capital Employed (Segment Assets - Segment Liabilities) |
|
|
|
|
Cycles / Components / E Scooters |
1105.700 |
1226.800 |
1105.700 |
|
Engineering |
4371.200 |
4037.700 |
4371.200 |
|
Metal Formed Products |
4857.500 |
4735.600 |
4857.500 |
|
Un-allocable Operating Income |
|
|
|
|
Insurance |
|
|
|
|
Other Financial Services |
|
|
|
|
Others |
|
|
|
|
Other Un-allocable Assets Net of
Un-allocable Liabilities |
10092.500 |
10192.200 |
10092.500 |
|
|
|
|
|
|
TOTAL |
20426.900 |
20192.300 |
20426.900 |
Fixed Assets
- Land
- Building
- Plant and Machinery
- Railway siding
- Furniture
- Vehicles
BOARD OF DIRECTOR
M. M. MURUGAPPAN
NON-EXECUTIVE CHAIRMAN OF THE BOARD
Mr. M. M. Murugappan is Non-Executive Chairman of the Board
of Subject. Mr. M M Murugappan holds a Masters degree in Chemical Engineering
from the
PRADEEP MALLICK
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Pradeep Mallick is Non-Executive Independent Director of
Subject. Mr. Pradeep Mallick holds a Bachelors degree in Engineering from
Indian Institute of Technology,
L. RAMKUMAR MANAGING
DIRECTOR, DIRECTOR
Mr. L. Ramkumar is Managing Director, Director of Subject. Mr. L. Ramkumar is a Cost Accountant and has a Post Graduate Diploma in Management from Indian Institute of Management, Ahmedabad. He joined the Board in February 2008. He has over 30 years of experience in management including 15 years in the Company itself in different capacities.
R. SRINIVASAN
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. R. Srinivasan is Non-Executive Independent Director of Subject. Mr. R. Srinivasan is a Graduate in Mechanical Engineering. He joined the Board in June 2004. He was formerly Managing Director of Widia India Limited. He is on the Board of various companies including Sundram Fasteners Limited and Cholamandalam MS General Insurance Company Limited
PRESS RELEASE
Tube Investments of
India Limited Updates On Delisting Of Global Depository Receipts From
May 19, 2011
Tube Investments Of India Limited announced that with reference to earlier
announcement dated February 10, 2011 informing of the Company's decision to
make an application to the Luxembourg Stock Exchange (LSE) seeking the approval
of LSE for delisting / withdrawal for trading there from of the Company's
Global Depository Receipts (GDRs), considering the lack of trading in the said
GDRs, Tube Investments of India Limited has now informed BSE that, on the
Company's application, LSE has confirmed that the Company's GDRs will be
delisted from LSE with effect from May 18, 2011. The Company's equity shares
will continue to be listed on the National Stock Exchange of India Limited
(NSE) and the Bombay Stock Exchange Limited (BSE). The Company has made an
application to the Madras Stock Exchange Limited (MSE) for delisting of equity
shares, for which the approval of MSE is pending.
Tube Investments Of
India Limited Recommends Final Dividend
May 02, 2011
Tube Investments Of India Limited announced that the Board of Directors of
the Company have recommended a final dividend of INR1.50 per equity share of
INR2 each for the financial year ended March 31, 2011.
Tube Investments of
India Limited Proposes Delisting From Luxemburg Stock Exchange
Feb 10, 2011
Tube Investments Of India Limited announced that considering lack of trading in
the Company's Global Depository Receipts (GDRs) in Luxemburg Stock Exchange
(LSE), the Company has decided to make an application to LSE seeking their
approval for delisting / withdrawal of trading of Company's GDRs from LSE. The
Company's equity shares will continue to be listed on National Stock Exchange
of (
Tube Investments Of
India Limited Fixes Record Date For Interim Dividend
Jan 31, 2011
Tube Investments Of India Limited announced that February 09, 2011 has been
fixed as the Record Date for the purpose of payment of interim dividend. The
interim dividend will be paid on February 18, 2011.
07 December 2011
CHENNAI, Dec 7Asia Pulse - TI Diamond Chains, a unit of Tube Investments of India (BSE:504973), part of the diversified US$3.8 billionMurugappa Group, has expanded its production facility at an investment of Rs 30 crore (US$5.8 million).
The Chennai-based company recently opened the expanded
facility in
With the expansion, TI Diamond Chains production capacity of two-wheeler automotive chains would be increased by 20 per cent, it said.
"The facility has been set up with the state of the art equipment to be run with the best in class practices," said Tube Investments of India Chairman M M Murugappan. He is also Murugappa Group Vice-Chairman.
The expanded facility would enable TI meet the growing demand from its auto-customers, with much higher levels of quality and reliability, he added.
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.48.96 |
|
|
1 |
Rs.77.46 |
|
Euro |
1 |
Rs.64.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.