MIRA
INFORM REPORT
|
Report Date : |
09.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
DYNAMATIC TECHNOLOGIES LIMITED (w.e.f. 1992) |
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Formerly Known
As : |
DYNAMATIC HYDRAULICS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
07.03.1973 |
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Com. Reg. No.: |
08-002308 |
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Capital Investment
/ Paid-up Capital : |
Rs.54.147
Millions |
|
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|
|
CIN No.: [Company Identification
No.] |
L72200KA1973PLC002308 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRD01116D |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Subject is in the business of manufacturing automotive components,
hydraulics gear pumps, aerospace components and wind farm power generation. |
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No. of Employees
: |
1730 (Approximately) |
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 6864000 |
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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 company having good track. Financial
position appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered 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 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Corporate Office : |
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|
Tel. No.: |
91-80-28394933 / 34 / 35 |
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Fax No.: |
91-80-28395823 |
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E-Mail : |
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Website : |
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Key Facilities : |
Airforce Road,
HAL Ancillary Unit – III, Ojhar, Niphad, |
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Aerospace
Division : |
Tel. No.: 91-80-28391517 UK Jarvis
Street Barton Hill, Tel.
No.: +44 1179553610 Website:
www.oldlandcnc.co.uk |
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|
|
|
Automotive
Division : |
JKM Automotive F67, C23~24,
" |
|
Tel. No.: |
91-44-47103000 |
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|
|
|
Hydraulics Division : |
Tel.
No.: 91-80-28394933/ 34/ 35 516A and 516B, 5th
Floor, World Trade Center, Barakhamba Lane, Babarlane, New
Delhi - 110 001, India Tel. No.: 91-11-41527861/
62/ 63 Fax No.: 91-11-41527860 704, Sakar III,
Opposite High Court, Navjivan Post, Ahmedabad - 380 014, Tel. and Fax No.:
91-79-27544110 Dubash House, 15,
J.N Heredia Marg, Ballard Estate, Mumbai – 400 001, Tel No.:
91-22-43544500 to 549 Fax
No.:91-22-43544544 UK Cheney
Manor Industrial Estate,
Swindon
T:
+44 (0) 1793 530101 G–A,
Eden Dale, No. 7, Bishop Waller’s
Avenue (East), Mylapore, Chennai – 600
004, Tel
No.: 91-44-42109582 / 24986595 Fax
No.: 91-44-24672258 149, Gunrock Enclave, Secunderabad
- 500 009, Tel No.: 91-40-27818225 Fax No.: 91-40-27718225 |
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Metallurgy Division : |
Dynametal® |
|
Tel. No.: |
91-44-47103000 |
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Powermetric Division : |
Powermetric® Design |
|
Tel. No.: |
91-80-2839-4933/
34/ 35 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Vijai Kapur |
|
Designation : |
Chairman |
|
|
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|
Name : |
Mr. Udayant Malhoutra |
|
Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Dr. K. Aprameyan |
|
Designation : |
Director |
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|
Name : |
Mr. Govind Mirchandani |
|
Designation : |
Director |
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|
Name : |
Mr. S. Govindarajan |
|
Designation : |
Director |
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|
Name : |
Air Chief Marshal S. Krishnaswamy (Retired) |
|
Designation : |
Director |
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|
Name : |
Ms. Malavika Jayaram |
|
Designation : |
Director |
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Name : |
Mr. B. Seshnath |
|
Designation : |
Executive Director and Chief Marketing Officer |
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|
Name : |
Mr. N. Rajagopal |
|
Designation : |
Executive
Director and Chief Technology Officer |
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|
Name : |
Mr. Raymond Keith Lawton |
|
Designation : |
Director |
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Name : |
Mr. James Tucker |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. Sunder |
|
Designation : |
President and Group Chief Financial Officer |
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|
Name : |
Ms. G. Haritha |
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Designation : |
GM Compliance and Company Secretary |
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Name : |
S.K. Kapur |
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Designation : |
Vice President - Corporate Affairs |
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Name : |
Rear Admiral Rajender Singh (Retired) |
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Designation : |
Head - Group HR |
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Name : |
Mr. N. Ram Mohan |
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Designation : |
Financial Controller |
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|
Name : |
Mr. Pradeep Chennamale |
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Designation : |
Head - Strategic Financial Initiatives |
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Name : |
Ms. Rekha S. Nair |
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Designation : |
Head - Corporate Communications |
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Name : |
Ms. Rama K. |
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Designation : |
General Manager - Finance |
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|
Name : |
Mr. Althaf Shareef |
|
Designation : |
General Manager - Information Systems |
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|
Name : |
Mr. Anil Kumar Katti |
|
Designation : |
Chief Operating Officer - Powermetric Design |
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|
Name : |
Mr. J. Devaraj |
|
Designation : |
Secretarial Manager |
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|
Name : |
N. Ram Mohan |
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Designation : |
Financial Controller |
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|
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|
Name : |
Mr. P.K. Ray Chaudhuri |
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Designation : |
Head of Engineering, Research and Development |
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|
Name : |
Mr. R. Shiva Kumar |
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Designation : |
Head – Production Engineering |
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|
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|
Name : |
Mr. Denis Delannoy |
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Designation : |
Expert Metallurgy – Foundry |
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 |
|
|
|
|
|
|
|
|
933,066 |
17.23 |
|
|
2,061,328 |
38.07 |
|
|
2,994,394 |
55.30 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2,994,394 |
55.30 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10,550 |
0.19 |
|
|
392 |
0.01 |
|
|
1,362,586 |
25.16 |
|
|
1,373,528 |
25.37 |
|
|
|
|
|
|
106,438 |
1.97 |
|
|
|
|
|
|
712,923 |
13.17 |
|
|
200,777 |
3.71 |
|
|
26,643 |
0.49 |
|
|
3,796 |
0.07 |
|
|
22,669 |
0.42 |
|
|
178 |
- |
|
|
1,046,781 |
19.33 |
|
Total Public shareholding (B) |
2,420,309 |
44.70 |
|
Total (A)+(B) |
5,414,703 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
5,414,703 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Subject is in the business of manufacturing automotive components,
hydraulics gear pumps, aerospace components and wind farm power generation. |
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Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Class of Goods |
Unit |
Installed Capacity* |
Actual Production |
|||
|
Gear Pumps |
Valves |
Castings |
Components |
|||
|
Hydraulic and precision engineering |
Nos. |
500,000 |
473,352 |
41,461 |
- |
27,538 |
|
Aluminium castings (melting capacity)** |
MT |
4,380 |
- |
- |
1,454 |
- |
|
Automotive components |
Nos. |
10,852,650 |
- |
- |
- |
9,438,697 |
|
|
|
|
473,352 |
41,461 |
1,454 |
9,466,235 |
* As certified by
the management and accepted by the auditors, this being a technical matter.
** Production of
the Aluminium castings (AC) includes 902,036 Nos. transferred to Automotive
Components (AUC) and Hydraulics and Precision Engineering division (HPE).
GENERAL INFORMATION
|
No. of Employees : |
1730 (Approximately) |
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Bankers : |
v
State Bank of v
State Bank of v
v
v
DBS Bank Limited v
Standard Chartered Bank v
Citi Bank v
HDFC Bank v
ICICI Bank v
Axis Bank Limited v
Kotak Mahindra Bank Limited v
Yes Bank v
Export and Import Bank of |
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Facilities : |
Notes: * Secured,
ranking pari passu among the lenders, by way of first charge on fixed assets and
second charge on current assets # Secured,
ranking pari passu among the lenders, by way of first charge on current
assets and second charge on fixed assets ^ Secured against vehicles purchased from such loans
|
|
|
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Banking
Relations : |
Satisfactory |
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|
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Auditors : |
|
|
Name : |
B S R and Associates Chartered Accountants |
|
Address : |
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Subsidiaries : |
v
Dynamatic Limited, v
JKM Global Pte Limited, v
JKM Research Farm Limited (JRFL) v
JKM Erla Automotive Limited (JEAL) |
|
|
|
|
Companies over which key management personnel or
relatives of such personnel are able to exercise significant influence (other
related entities) : |
v
Christine Hoden ( v
Greenearth Biotechnologies Limited (GBL) v
JKM Holding Private Limited (JHPL) v
JKM Human Resources Private Limited (JHRPL) v
JKM Offshore ( v
Primella Sanitary Products Private Limited
(PSPPL) v
Udayant Malhoutra and Co Private Limited (UMCPL) v
Vita Private Limited (VPL) v
Wavell Investments Private Limited (WIPL) v Pramilla Estates
Private Limited (PEPL) |
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 |
|
500000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.50.000 millions |
|
|
TOTAL |
|
Rs.250.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5414703* |
Equity Shares |
Rs.10/- each |
Rs.54.147
Millions |
|
|
|
|
|
* Includes:
(i) 1,048,390
shares allotted by way of bonus shares by capitalisation out of securities
premium and capital redemption reserve.
(ii) 617,143
shares allotted as fully paid up pursuant to the merger with JKM Daerim
Automotive Limited without payment being received in cash.
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 |
54.147 |
54.147 |
54.147 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1661.748 |
1406.538 |
1294.737 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1715.895 |
1460.685 |
1348.884 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2452.440 |
1737.888 |
1868.284 |
|
|
2] Unsecured Loans |
230.844 |
119.232 |
182.066 |
|
|
TOTAL BORROWING |
2683.284 |
1857.120 |
2050.350 |
|
|
DEFERRED TAX LIABILITIES |
261.977 |
230.901 |
209.775 |
|
|
|
|
|
|
|
|
TOTAL |
4661.156 |
3548.706 |
3609.009 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2612.051 |
2183.290 |
2001.937 |
|
|
Capital work-in-progress |
508.933 |
84.382 |
301.642 |
|
|
|
|
|
|
|
|
INVESTMENT |
524.357 |
509.857 |
509.857 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
572.013 |
425.880 |
374.522 |
|
|
Sundry Debtors |
868.251 |
664.174 |
724.314 |
|
|
Cash & Bank Balances |
70.109 |
52.594 |
72.985 |
|
|
Other Current Assets |
71.601 |
37.857 |
28.935 |
|
|
Loans & Advances |
454.295 |
324.736 |
337.293 |
|
Total
Current Assets |
2036.269 |
1505.241 |
1538.049 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
511.918 |
354.510 |
236.133 |
|
|
Other Current Liabilities |
447.308 |
344.259 |
464.427 |
|
|
Provisions |
61.228 |
35.295 |
41.916 |
|
Total
Current Liabilities |
1020.454 |
734.064 |
742.476 |
|
|
Net Current Assets |
1015.815 |
771.177 |
795.573 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4661.156 |
3548.706 |
3609.009 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
3105.407 |
2831.023 |
2856.504 |
|
|
|
Income from project execution services |
436.558 |
142.379 |
100.769 |
|
|
|
Service income |
1.022 |
3.825 |
6.474 |
|
|
|
Other Income |
61.615 |
49.751 |
76.122 |
|
|
|
TOTAL (A) |
3604.602 |
3026.978 |
3039.869 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1905.118 |
1639.690 |
1690.887 |
|
|
|
Personnel expenses |
519.104 |
404.034 |
379.800 |
|
|
|
Other operating expenses |
518.194 |
443.908 |
507.907 |
|
|
|
TOTAL (B) |
2942.416 |
2487.632 |
2578.594 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
662.186 |
539.346 |
461.275 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
240.543 |
214.265 |
177.043 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
421.643 |
325.081 |
284.232 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
204.065 |
185.663 |
172.120 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
217.578 |
139.418 |
112.112 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
69.157 |
31.244 |
63.410 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
148.421 |
108.174 |
48.702 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
332.483 |
282.638 |
264.146 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
- Interim dividend |
32.488 |
24.366 |
13.537 |
|
|
|
- Proposed dividend |
21.659 |
16.244 |
8.122 |
|
|
|
- Tax on dividend |
8.909 |
6.901 |
3.681 |
|
|
|
- Transferred to general reserve |
14.842 |
10.818 |
4.870 |
|
|
|
BALANCE CARRIED
TO THE B/S |
403.006 |
332.483 |
282.638 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of goods on F.O.B. basis |
672.818 |
360.412 |
272.279 |
|
|
|
Interest |
7.712 |
7.963 |
8.013 |
|
|
TOTAL EARNINGS |
680.530 |
368.375 |
280.292 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
542.920 |
472.257 |
424.687 |
|
|
|
Stores and spares |
13.352 |
1.749 |
1.480 |
|
|
|
Capital goods |
158.573 |
18.090 |
116.165 |
|
|
TOTAL IMPORTS |
714.845 |
492.096 |
542.332 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.41 |
19.98 |
9.37 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
938.720 |
1119.890 |
|
Total Expenditure |
|
872.600 |
957.680 |
|
PBIDT (Excl OI) |
|
66.120 |
162.210 |
|
Other Income |
|
3.590 |
4.050 |
|
Operating Profit |
|
69.710 |
166.260 |
|
Interest |
|
79.870 |
91.870 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(10.160) |
74.390 |
|
Depreciation |
|
59.780 |
63.280 |
|
Profit Before Tax |
|
(69.940) |
11.110 |
|
Tax |
|
(22.360) |
3.270 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(47.580) |
7.830 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(47.580) |
7.830 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.12
|
3.57
|
1.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.01
|
4.92
|
3.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.68
|
3.78
|
3.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.10
|
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.16
|
1.93
|
2.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.00
|
1.77
|
2.07 |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
The Company was incorporated in 1973 as Dynamatic Hydraulics Limited under
provisions of the Companies Act, 1956 (‘the Act’). In 1992, the name of the
Company was changed to Dynamatic Technologies Limited. The Company is in the
business of manufacturing automotive components, hydraulics gear pumps,
aerospace components and wind farm power generation. The Company is listed in
COMPANY
PERFORMANCE
The Company has
shown a significant growth in profitability and sales during the period.
Total income on a
consolidated basis was Rs.5036.782 millions, as against Rs.4451.589 millions in
2009-10. EBITDA on a consolidated basis
was Rs.828.283 millions as against Rs.632.960 millions in 2009-10.
Net Profit Before
Tax on a consolidated basis was Rs.303.284 millions, as against Rs.158.345
millions in 2009-10.
Net Profit After
Tax on a consolidated basis was Rs.216.763 millions, as against Rs.105.146
millions in 2009-10.
The Hydraulics and
Precision Engineering business grew to Rs.2303.731 millions from Rs.1935.784
millions in 2010. Profit (Before Interest and Tax) grew from Rs.98.545 millions
to Rs.195.653 millions. This includes the turnover from the Hydraulics division
of Dynamatic Limited,
The Aerospace
business grew from Rs.782.134 millions to Rs.1024.156 millions and Profit
(Before Interest and Tax) grew from Rs.143.258 millions to Rs.318.515 millions.
This includes the turnover from the Aerospace division of Dynamatic Limited,
The Aluminium
Castings business declined from Rs.349.627 millions to Rs.337.104 millions and
Profit (Before Interest and Tax) declined from Rs.20.148 millions to a loss of
Rs.7.173 millions.
The Automotive
business grew from Rs.1900.449 millions to Rs.1924.928 millions while Profit
(Before Interest and Tax) declined from Rs.105.100 millions to Rs.20.624
millions.
Exports from
SUBSIDIARIES
The Company has
five Subsidiaries, the brief particulars of which are given below.
INDIAN, WHOLLY
OWNED SUBSIDIARIES
JKM Research Farm
Limited, India, (JKMRF) is a Wholly Owned Subsidiary of the Company. It
continues to be the Research and Development facilitator to the Company.
JKM ERLA
Automotive Limited,
During the year
the Company, had promoted JKM ERLA Automotive limited,
Subject, through
its Wholly Owned Subsidiary, JKM Erla Automotive Limited, is in the process of
acquiring Eisenwerk Erla GmbH
Eisenwerk Erla
GmbH generates revenues in excess of Euro 100 million between its two units
located in
This acquisition
is an important milestone for the Company. The potential advantages of the
acquisition are:
• Global player in
the exhaust and turbocharger segments of the automotive industry.
• Manufacturing
locations in Europe and
• Experienced
management team.
• Provides the
Company 100% ownership of one of the finest ferrous foundries in
• Marquee
customers in the Automotive and Turbocharger markets.
Subject had
entered the automotive business in 1997 through its 73% owned joint-venture
with Daerim Enterprise Company Limited,
The Company is in
the process of de-merging its existing Automotive business into JKM Erla
Automotive Limited, a Wholly Owned Subsidiary of the Company. The Board of Directors have approved the
Scheme of Arrangement by way of the de-merger of the Automotive unit into the
Company subject to the approval of shareholders and compliance with the
relevant provisions of the Companies Act, 1956.
OVERSEAS, WHOLLY
OWNED SUBSIDIARIES
JKM Global Pte.
Limited,
Dynamatic Limited,
Swindon, UK, (DLUK) is a Wholly Owned Subsidiary of the Company held
through JKM Global Pte. Limited,
During the year,
the
The Hydraulics
unit of DLUK located in
Dynamatic Oldland
AerospaceTM, located in
Yew Tree
Investments Limited, Bristol, UK (YTIL) is a Wholly Owned
Subsidiary of Dynamatic Limited,
With the
restructuring of the UK Subsidiaries, Oldland Aerospace Limited and DM 38
Limited have become dormant companies during the year.
AWARDS,
RECOGNITION AND IMPORTANT MILESTONES
• Dynamatic®
Hydraulics has received the ‘Best Performance Award’ in the Supply Chain
Management Category from the Swaraj Tractor Division of Mahindra and Mahindra
for outstanding SCM performance.
• Dynamatic® has
received an ‘Award of Appreciation’ from Voltas Limited (A Tata
Enterprise) for the consistent quality of products supplied.
• Dynamatic
Oldland Aerospace Division,
• Subject was
featured on the cover of the Aviation Week, for the issue of the month
of June 2010. Dynamatic Technologies has successfully achieved ‘Single
Source Supplier’ status for the Airbus 320 Flap Track Beams being supplied
to Spirit AeroSystems (
• Subject has
conducted the Ground Breaking Ceremony at its 35 acres site located in
Karnataka Industrial Area Development Board’s (KIADB)
• Dynamatic®
Tech Day was conducted at Mahindra and Mahindra, where Indra Pump was
launched. This is the next generation hydraulic gear pump designed and
developed by Dynamatic® for Mahindra.
MANAGEMENT’S DISCUSSION AND ANALYSIS
ECONOMY
According to World
Economic Forum, uncertainty in the global economy persists and the shift
in the balance of economic activity away from advanced economies and towards
developing ones continues. Despite significant Government stimulus
spending aimed at dampening the recession, growth in advanced economies remains
sluggish as they are mired in persistent unemployment and weak
demand. Recent concerns about the sustainability of sovereign debt in
According to the Reserve
Bank of
The Indian economy
has grown by 8.5% during 2010-11. Agricultural growth was above average, following
a good monsoon. The Index of Industrial Production (IIP), which grew by 10.4%
during the first half of 2010-11, moderated subsequently bringing down the
overall growth for April-February 2010-11 to 7.8%. The main contributor to this
decline was a deceleration in the capital goods sector. However, other
indicators, such as the manufacturing PMI, tax collections, corporate sales and
earnings growth, credit off-take by industry (other than infrastructure) and
export performance suggested that economic activity was strong.
During the year,
the Company’s performance has been satisfactory. The Company has outperformed
in the Hydraulics and Aerospace segments in 2010-11, when compared to previous
year performance.
The broad array of
challenges which are existing and potential threats to the National Security in
the fast changing geo-strategic security environment mandate a periodical
re-appraisal of their security procedures to cope with them. The Government,
keeping this in view, instituted periodic reviews of the National Security
System in its entirety, from time to time.
The Company
designs and builds highly engineered products for Automotive, Aeronautic,
Hydraulic and Security applications and enjoys a leadership position as the
partner of choice to the Ministry of Defence and other leading defence agencies
in
The Company’s wind
farm in
During May 2011,
the Company through its Wholly Owned Subsidiary, JKM ERLA Automotive Limited
was in the final stages of acquiring Eisenwerk Erla, GmbH, which generates
revenues in excess of Euro 100 million between its two units located in
OVERVIEW,
STRUCTURE AND DEVELOPMENT
Hydraulics
Industry
Agriculture has
been the mainstay of
In the recent
past, the sector has recorded a growth of about 5.4% per annum with substantial
increase in plan allocations and capital formation in the sector with concessional
interest rates to farmers, debt relief for farmers, higher support prices for
key crops and accelerated irrigation benefit programs declared by Government of
India in its recent budget.
Dynamatic®
Hydraulics which designs, develops, manufactures and markets various Hydraulic
pumps and related products for Indian and overseas tractor markets, is the
largest manufacturer of Hydraulic pumps and has sustained its market leadership
as one of the world’s largest Hydraulic Gear Pumps makers for the last 35 years
and is focused on becoming the numero uno.
Automotive
Industry
The Automobile
passenger car industry in
Chennai, also
known as the “Detroit of India” has the largest chunk of car manufacturing
industries, accounting for 60% of the country’s automotive exports. Hyundai
continues to be the single largest exporter of cars to over 100 countries, all
of which are manufactured at their facility in Chennai. Nissan has started
manufacturing cars from Chennai and has made it one of their largest export
hubs. Ford has completed the proposed expansion of their plant and launched the
successful “FIGO” car in the Indian market. The Figo is also being exported to
While there is an
opportunity for steep growth,
JKM Automotive™,
the automotive division of Dynamatic Technologies, is located in Chennai and
possesses state-of-the-art manufacturing technology to produce and supply high
quality automotive components to leading OEMs including Hyundai Motor India
Limited, Fiat India, Tata Motors, Ford Motor Company, John Deere, Cummins,
Nissan and Honeywell on a single source basis.
The unique
locational advantage offered by Chennai has enabled JKM Automotive™ to forge
strong partnerships with each of its customers and the division is poised to
grow at over 15% during the financial year 2011-12. This year will also see JKM
Automotive™ further mitigating business risk by making a shift from being a
Hyundai centric single customer business into a multi customer business.
Aerospace and
Defence Industry
Defence Industry
P-8I
On January 1, 2009
The P-8I’s will
replace the Indian Navy’s antiquated fleet of 8 Russian TU-142M Maritime
Reconnaissance aircraft. The P-8I is a true multi-mission Maritime Patrol
Aircraft (MPA) that features greater flexibility and a broader range of
capabilities, than the MPAs currently in service. The P-8I can operate
effectively over land or water while performing anti-submarine warfare
missions, search and rescue, maritime interdiction and long-range intelligence,
surveillance, target acquisition and reconnaissance.
In October 2010,
Ministry of Defence, Government of
The US Navy plans
to purchase 108 P-8A’s to replace its fleet of P-3C Aircraft. The first aircraft
was tested in 2009 and initial operational clearance is slated for 2013.
The P-8I is being
built by a Boeing-led industry team that includes CFM International, Northrop
Grumman, Raytheon, Spirit AeroSystems and GE Aviation. The fabrication of the
first aircraft began in the last quarter of 2010.
C-17
On June 6, 2011,
the cabinet committee on security under the Chairmanship of the Indian Prime
Minister decided to purchase 10 C-17 Globe Master III Heavy-Lift Transport
Aircraft from the
Medium Multi-Role
Combat Aircraft (MMRCA)
The Indian Air
Force is expected to purchase 126 MMRCA at a cost of approximately
Rs.420000.000 millions. Six aircraft manufacturers - the Saab Gripen,
Eurofighter Typhoon, Dassault Rafale, Mikoyan MiG-35 and the American Lockheed
Martin F-16IN and Boeing F/A-18IN (a version of the Super Hornet) - had
responded to the RFP and submitted their bids.
Flight trials were
conducted for the six fighter aircraft during which test pilots flew 222
Sorties spanning 270 hrs in different weather conditions in
On April 27, 2011,
Hindustan
Aeronautics Limited – Sukhoi 30MKI
The Sukhoi 30MKI
is without doubt one of the finest multi-role aircraft in the world today. The
melting pot of a robust Russian airframe combined with state-of-the-art western
avionics and locally developed computers, has given the Indian Air Force a
quantum leap in offensive capability unrivalled in
Indigenisation
Hindustan
Aeronautics Limited (HAL) has mastered the manufacturing of wing and tail, and
has started producing the Fuselage this year. The manufacturing of the engine
is the most challenging aspect of indigenisation and will be undertaken soon.
Defence
Procurement Procedure 2011
The Defence
Procurement Procedure (DPP) 2011, which supersedes earlier versions with effect
from 1st January, 2011, has incorporated several new provisions and
revised some. The revised provisions, especially those related to the validity
of RFPs, Offsets, Transfer of Technology for maintenance infrastructure,
technical oversight committee, performance and warranty bond, fast track
procedure, exchange rate variation and trial evaluations are all welcome
changes that will together help expedite defence acquisition and enable greater
defence industrialisation in India.
Commercial
Industry
In the strongest
evidence yet of strengthening recovery in the commercial aviation sector, the
two largest makers of aircraft in the world announced more than $24 billion
worth of new jet orders at the Farnborough Air Show 2010, the bulk of which
came from lessors eager to help airlines bolster capacity as global air traffic
revived.
The single-aisle
market is the fastest-growing sector of the world aircraft fleet. Boeing predicted
that the vast majority of new jet sales during the next 20 years – around 69% -
would be of Single-Aisle Aircraft like the Boeing 737 and the Airbus A320,
which normally seat around 150 passengers. The demand from emerging markets in
Asia and the low-cost carriers in Europe and
Rapidly expanding
Indian carriers, including a crop of new discount airlines, have ordered close
to $40 billion worth of big jets over the past two years.
Airbus has bagged
295 orders from Indian customers, while Boeing has secured 138 orders. The
value of Boeing’s order book, which is close to $20 billion at list prices, is
nearer to Airbus’ approximate $22 billion in Indian orders.
The growth
potential of the Indian aviation sector has led global manufacturers to
recognize that
Airbus
In recognition of
the country’s strategic importance, Airbus has pledged to play a long term role
in the development of the Indian aviation sector. Apart from establishing an
engineering center and a full-fledged flight training center, Airbus also works
directly with Indian Companies in the design and manufacture of Aero-Structures
and encourages its major tier-one partners to do so, as appropriate.
Airbus-built
aircrafts have become a key element in the operations of Indian based airlines.
Starting with the 1960 delivery of an A300 to Indian Airlines, the fleet of
Indian carriers now include both Single-Aisle and Wide- Body Aircraft and is
poised to expand with the future introductions of A350 and A380 by King Fisher
Airlines, whose deliveries start next year.
Airbus continues
to pursue other potential areas of co-operation with
Boeing
Boeing’s 2010
current market outlook for
Boeing is continually
exploring new business and investment opportunities and potential partnership
businesses in
Bombardier
Bombardier
forecasts 24,000 deliveries in the business aircraft arena valued at USD 626 bn
over the next 20 years. It concedes both business and commercial aircrafts
markets continue to remain down with the ongoing economic slump but reiterates
that the business aircraft indicators are improving, while commercial aircraft
market begins to recover. The Canadian Original Equipment Manufacturer also
points to developing regions, such as
As part of its
efforts to weather the downturn, Bombardier is moving ahead with new products
that will be ready to capture the market when the condition improves. Larger
capacity aircraft, in the 100-149 seat range, will account for 7,000 unit
shipments valued at USD 423.7 bn over the next 20 years. Aircrafts with 60-99
seats will follow, with 5,800 shipments valued at USD 208.6 bn. The 29-50 seat
range will account for 300 new aircrafts worth USD 6.5 bn. Bombardier further
predicts that more than half of the current commercial fleet will be replaced
in the next 20 years.
Embraear
Embraear expects
the executive jet business in
Gulfstream
Gulfstream points
out that while it had five aircrafts in service in
Dynamatic Oldland
AerospaceTM, India, is a pioneer and a recognized leader in the Indian Private Sector for
the development of Complex Aero-Structures and manufacture of Aircraft Parts
and Accessories. Dynamatic Oldland AerospaceTM has successfully executed
important projects for defence agencies of national importance such as DRDO,
HAL, etc. Products include the wing and rear fuselage of the LAKSHYA,
The unit is
actively involved in HAL’s HJT-36 project, which is the intermediate jet
trainer program of HAL. Key projects include the fabrication and assembly of
the control surface (Flaps and Ailerons) and development of wings assembly jigs
for IJT.
The largest
defence program in
Dynamatic
Technologies has signed a contract with Boeing for the manufacture of cabinets
to house critical power and mission equipment for the P-8I program and supply
of first shipment is scheduled in July first week.
On the commercial
aircraft business, Dynamatic Oldland AerospaceTM has achieved global single
source status for the supply of Flap Track Beam assemblies for the Airbus
Single Aisle Aircraft family. Dynamatic® is working closely with Spirit
AeroSystems, the world’s largest Aero- Structure manufacturer, as an industrial
partner in this project. By July 2010, every Airbus A320 Family Aircraft is
partly ‘Made in
Dynamatic Oldland
AerospaceTM is vertically integrated to manufacture CNC components, Sheet Metal
Components, Soft Tooling, Hard Tooling, Jig Manufacturing and has Comprehensive
Engineering capabilities. The Aerospace Division is AS9100 approved, NADCAP
approved for Heat Treatment and Non Destructive Testing and Airbus / Boeing
approved for the manufacture of Aero-Structures.
Dynamatic Oldland
AerospaceTM, UK, is a division of Dynamatic Limited,
The Aerospace
Division has been continuously expanding to build capabilities in large
Aero-Structures Assemblies, Composites and Complex Engineering. It is poised to
grow into the role of preferred strategic supplier to both Tier Ones and
Primes. As a pioneer in Indian Private Sector with a demonstrated track record
for the manufacture and development of complex Aero-Structures, Dynamatic®
enjoys the first mover advantage and has formulated a strategic growth plan for
its future.
As a first step towards
its goal, Dynamatic® signed an MoU with the Government of Karnataka in June,
2010, for the acquisition of 35 acres of land in the Aerospace park to be set
up by the KIADB, adjacent to the
OUTLOOK
The overall
outlook for next accounting year April 2011 to March 2012 looks positive.
The Company’s
reputation for developing innovative, cost-effective and high quality products
continues to grow, both in the Domestic and Overseas markets. In the
medium-term, the Company is expected to maintain a healthy growth.
Having witnessed a
strong organic growth in all the segments over the years, the Company has
embarked on a path of inorganic growth through acquisitions, thereby opening up
bigger opportunities in the Global markets.
FIXED ASSETS
Tangible assets
v
Land and Development
v
Buildings
v
Plant and Machinery
v
Measuring Instruments
v
Electrical Installations
v
Data Processing Equipment
v
Office Equipment
v
Tools, Dies and Moulds
v
Vehicles
v
Motor Boat
Intangible assets
v
Application Software
v
Prototype Development
WEBSITE DETAILS:
BUSINESS DESCRIPTION
Subject is engaged in the manufacturing automotive
components, hydraulics gear pumps, aerospace components and wind farm power
generation. The Company operates in five segments: Hydraulic and Precision
Engineering, Aluminium Castings, Automotive Components, Aerospace and Wind
farm. Hydraulic and Precision Engineering (HPE) consists of hydraulic pumps,
hand pumps, lift assemblies, valves and power packs. Aluminium Castings (AC)
consists of castings for automotive components. Automotive Components (AUC)
consists of case front, water pumps, intake manifolds and exhaust manifold.
Aerospace segment (ASP) consists of airframe structures and precision aerospace
components. Wind farm segment (WF) is engaged in generation of power through
wind energy. As of March 31, 2011, the Company’s plants were located in
BOARD OF DIRECTORS
Vijai Kapur
Non-Executive
Independent Chairman of the Board
Mr. Vijai Kapur is Non-Executive Independent Chairman of the Board of Subject. He was formerly the Deputy Managing Director of the GKW Limited and the past President of AIEI (now called CII). He has been the Director of the Company since 1992 and possesses business and managerial experience. As the Chairman of the Board, he is responsible for all Board matters of the Company. He is the Chairman of the Audit Committee and also a member of Leadership, HRD and Remuneration Committee and Nomination Committee of the Company.
K. Aprameyan
Non-Executive
Independent Director
Dr. K. Aprameyan is Non-Executive Independent Director of
Subject. Dr. Aprameyan has been a Director of the Company since 2003. He is a
Post Graduate in Automobile Engineering from The Indian
S. Govindarajan
Non-Executive
Independent Director
Mr. S. Govindarajan serves as Non-Executive Independent
Director of Subject. He has had an career in the State Bank of
Malavika Jayaram
Non-Executive
Independent Director
Ms. Malavika Jayaram is Non-Executive Independent Director of
Subject. She is a lawyer and has completed her integrated BA-LLB degree in 1994
from the National Law School of India,
S. Krishnaswamy
Non-Executive
Independent Director
Air Chief Marshal S. Krishnaswamy (Retd.) is Non-Executive Independent Director of Subject. He joined the Indian Air Force as an under graduate. He has also obtained a post graduate degree in Military Science. Air Chief Marshal S. Krishnaswamy (Retd.), has had a distinguished career in the Indian Air Force (IAF) and has held several senior positions, culminating in his appointment as the Chief of Air Staff of the IAF from 2002 upto his retirement on 31st December, 2004. He held the appointment of Chairman of the Chiefs’ of Staff Committee till retirement. During his service, he received various medals for his contribution including the Agni Award for Excellence in Self-Reliance from the Prime Minister for having made technical and operational contributions to the design, development and evaluation of indigenous combat aircraft, armament and Electronic Warfare system. He has been a Director of the Company since 2005. He is the Chairman of the Leadership, HRD and Remuneration and the Shareholders’ Committee. He is also a member of the Technical Development Committee, Audit Committee and Nomination Committee of the Company.
Raymond Keith Lawton
Non-Executive and
Non-Independent Director
Mr. Raymond Keith Lawton is Non-Executive and
Non-Independent Director of Subject. He graduated in Higher National Diploma in
both Mechanical and Production engineering in 1973. He was awarded Management
Fellowship in 1981. During the year 2006-07, the Company acquired the Hydraulic
Business unit of Sauer Danfoss Limited,
Udayant Malhoutra
Chief Executive
Officer, Managing Director, Executive Director
Mr. Udayant Malhoutra is Chief Executive Officer, Managing Director, Executive Director of Subject. He is an Industrialist and the Promoter of Company. He started work at Subject in 1986 and joined the Board of Directors in 1989 as an Executive Director. He is currently designated as Chief Executive Officer and Managing Director of the Company. He was formerly a Member, Board of Governors, IIT Kanpur (1997-2001), Co-Chairman, Task Force on DRDO – Industry Partnership along with Dr. K. Santhanam, Ministry of Defence, Government of India (1998-99), Member, Working Group for formulation of 10th five year plan (2001) and Chairman, Sub-Group on Minerals, Metals, Materials and Manufacturing sector for formulation of 10th five year plan, Council of Scientific Industrial Research (CSIR) / Department of Scientific Industrial Research (DSIR), Government of India, (2001), Member, CII National Council (2001-2003) and Chairman, CII National Committee on Technology (2002-2003). He was President, Fluid Power Society of India, (2004-06), (2006-08). He was on the International Board of the World Presidents’ Organization and the Young Presidents’ Organization (2005-2008). He is presently the Chairman of CII National Committee on Design (2010-2012) and Member, CII National Council (2010-2012). Mr. Udayant Malhoutra, as Chief Executive Officer and Managing Director, is responsible for overall Corporate Strategy, Brand Equity, Maintenance of Key Relationships, Technology Management and achieving the Annual Business Plan of the Company and its Subsidiaries. He is also responsible for the Leadership Team of Dynamatic® in transforming the Company into a World Class Design and Manufacturing Organization. Mr. Udayant Malhoutra is also a member of Technical Development Committee, Shareholders Committee and Nomination Committee of the Company.
Govind Mirchandani
Non-Executive
Independent Director
Mr. Govind Mirchandani is Non-Executive Independent Director
of Subject. He is a graduate from the Indian Institute of Technology, Mumbai,
and had his PGDM from the Indian Institute of Management, Kolkata. His areas of
specialization are of Leadership, Building High Performance Organizations,
Brands and Retail Management. Mr. Govind Mirchandani has had a distinguished
career, having held positions of seniority in various industries for over three
decades. He has been the Executive Director and CEO of Reid and Taylor,
Director of Brand House Retails Limited, CEO and Director, President of the
Denim Division of Arvind Mills Limited, President and CEO of Personality
Limited, General Manager in Shalimar Paints Limited and the Business Head,
Interlinings division, Madura Coats Limited. He was also responsible for
launching Arvind Denim in
N. Rajagopal
Chief Technology
Officer, Executive Director
Mr. N. Rajagopal is Chief Technology Officer, Executive Director of Subject. He is a Mechanical Engineer with over three decades of comprehensive experience in engineering. He has served the Company in various capacities since 1980 and has competently managed various operative functions of the Company such as production, materials, design and development, etc. He has been a Director of Company since 2002. He was a former Director of JKM Dae Rim Automotive Limited (currently a division of Subject) and also formerly ED and Chief Executive Officer, Dynamatic® Hydraulics and Dynametal®. Mr. Rajagopal, as Executive Director and Chief Technology Officer, is responsible for New Product Development and the Management of the Company’s Technical capabilities at a strategic level. Mr. Rajagopal is a member of the Technical Development Committee of the Company.
B. Seshnath
Chief Marketing
Officer, Executive Director
Mr. B. Seshnath is Chief Marketing Officer, Executive
Director of Subject. He is a Mechanical Engineer with an MBA from the Indian
Institute of Management,
V. Sunder
President, Group
Chief Financial Officer, Executive Director
Mr. V. Sunder is President, Group Chief Financial Officer, Executive Director of Subject. He is a senior member of the Institute of Company Secretaries of India. He has served as CEO and Executive Director of JKM Dae Rim Automotive Limited (formerly a subsidiary of Subject) from 2000 to 2006. During his tenure, the Company grew manifold in terms of sales, profitability and acquisition of new customers. He served the Company for eleven years in various Senior Management positions, prior to his appointment as CEO and Executive Director of JKM Dae Rim Automotive. Prior to taking charge as Executive Director of JKM Dae Rim Automotive, he was the General Manager-Corporate Planning and Company Secretary of the Company. Mr. Sunder, as President and Group CFO, heads the corporate functioning of finance and works along with Mr. Udayant Malhoutra, CEO and Managing Director in planning and driving Corporate Strategy. Mr. Sunder is a member of the Shareholders Committee of the Company.
PRESS RELEASES/ NEWS:
AUTO PARTS MAKERS LOOK TO
Chennai, January 6 -- With a view to acquiring technology and new
customers, Indian auto parts makers are looking to acquire European companies
at prices that have been driven down by the bleak economic environment.
However, while the low valuations are attracting established Indian
groups with sales of Rs.15000-20000 millions to the market, smaller companies
are being forced to forgo such deals because of difficulties in raising
capital, industry analysts and bankers said.
Kumar Kandaswami, senior director and country leader for manufacturing
at industry consultancy Deloitte Touche Tohmatsu in
Small companies owned by private equity investors looking for exits are
coming up for sale in western and central
Also, with market conditions against initial public offerings (IPOs) and
few private equity (PE) investors interested in the sector, funds are hard to
come by, he said. Market data firm Venture Intelligence said there was one PE
deal in the core auto component space in 2011Actis Advisors Private Limited
invested $71 million in castings maker Endurance Technologies Private Limited
in December, thus allowing an exit to existing investor Standard Chartered
Private Equity. In 2010, PE investments in the auto component sector amounted
to just $49 million, according to Venture Intelligence.
The recessionary trend in
Reuters reported that new car sales in
Recently, the Delhi-based JBM Group acquired a 51% stake in Italian
engineering services company Tesco Go SPA, and the Aurangabad-based Varroc Group
bought an 80% stake in Italian two-wheeler light maker TriOM SPA. Not everyone
sees merit in such transactions.
"It's a mixed bag of outcomes," said K. Ramakrishnan,
executive director at investment bank Spark Capital. "Several companies that
have done parts acquisitions have burnt their fingers and ended up with heavily
leveraged balance sheets."
The timing could have been off in some cases. "We had a wave of
acquisitions in 2006-08 that were probably badly timed," said C. Venkat
Subramanyam, a director of investment bank Veda Corporate Advisors.
Pune-based Bharat Forge Limited, for instance, made a number of overseas
acquisitions starting in 2004 but struggled to turn the companies around and,
saddled with loss-making units as the industry struggled through the 2008-09
recession, had to restructure the companies, laying off employees and reducing
capacity. It has in recent years turned its focus to non-auto businesses such
as renewable energy and railway components to de-risk business and drive
growth.
The diversified Chennai-based Sanmar Group, which entered the automotive
business by acquiring German foundry Eisenwerke Erla GmbH in 2007, sold it to
Bangalore-based Dynamatic Technologies Limited last year, saying it wanted to
focus on its core chemicals business.
The strategy has gone awry in some cases. Companies that have tried to
leverage the cheap cost of labour in
"The cost of closing down facilities is prohibitive,"
Kandaswami said. "The manufacturing is better done where it is currently.
(Closing down) also creates bad blood50 people working in a company (and
getting laid off) could be an entire village."
"The next is logistical challenges," Ramakrishnan said.
"It's not easy being an exporter out of
Besides seeking new technology from acquisitions, companies also look
for existing relationships that the target companies have with vehicle
manufacturers. "Many of these companies cannot really hope to get close to
OEMs (original equipment manufacturers) by themselves," said Abdul Majeed,
automotive practice leader at consultancy PricewaterhouseCoopers. Low-priced
European assets then become valuable because they give Indian companies access
to new markets and customers, he said.
With attractive valuations in
Another trend in current conditions would be the entry of international
component makers into the country, following international car manufacturers,
Ramakrishnan said. "Their home markets have been wiped out the only
promising one is in
ICRA ASSIGNS BBB RATING
TO DYNAMATIC TECHNOLOGIES' BANK FACILITIES
12 October 2011
India, October 12 -- Credit rating agency, ICRA has assigned long-term rating of BBB Rs.1520.000 millions term loan facilities, the Rs.250.000 millions fund based facilities and the Rs.7.000 millions proposed limits of Dynamatic Technologies (DTL).The rating agency has also assigned short term rating of A3+ to the Rs.200.000 millions non-fund based facilities of the company. Further the rating agency has long-term rating of BBB outstanding on the Rs.1280.000 millions term loan facilities, the Rs.695.000 millions fund based facilities and short-term rating of A3+ outstanding on the Rs.715.000 millions non-fund based facilities of the company. The outlook on the long-term rating is stable. The ratings take into account the company's diversified revenue base across the hydraulics, aerospace and automotive businesses, its strong market position in the hydraulics gear pumps industry and DTL's established relationships with renowned clientele. Dynamatic Technologies is engaged in the activity of manufacturing hydraulic gear pumps. It is also engaged in manufacturing a variety of advanced hydraulic valves, hydraulic pumping units, custom-made hydraulic solutions, marine power packs, turnkey industrial instrumentation, and complicated aircraft ground-support systems.
Dynamatic Technologies
Limited Files Patent Application for Hydraulic System for Loading and Unloading
a Kiln Car into and from a Furnace
18 August 2011
Dynamatic Technologies Limited filed the patent application on April 16,
1999. The patent application number is 423/MAS/1999 A. The international
classification numbers are B66F9/00 and B66F9/04.
According to the Controller General of Patents, Designs and Trade Marks,
"A transfer car and unloading the kiln car from the transfer car, said
system comprising: a cylinder system comprising at least one cylinder mounted
on said transfer car; a power pack connected to said cylinder by a hydraulic
line; at least two stopper assemblies, provided on said transfer car for
preventing movement of the transfer when the kiln car is being loaded onto or
unloaded from the transfer car; said stopper assemblies being connected by
hydraulic lines to said power pack for actuating said stopper assemblies; and
an electric control panel connected to said power pack for actuating the power
pack in accordance with a pre-set sequence."
About the Company
Dynamatic Technology Limited is an India-based company. The Company is
engaged in the manufacturing automotive components, hydraulics gear pumps,
aerospace components and wind farm power generation. The Company operates in
five segments: Hydraulic and Precision Engineering, Aluminium Castings,
Automotive Components, Aerospace and Wind farm.
DYNAMATIC TECHNOLOGIES ACQUIRES GERMAN
AND INDIAN OPERATIONS OF EISENWERK ERLA GMBH
June 2011
Dynamatic Technologies has acquired the German and Indian operations of
the German based automotive component manufacturer Eisenwerk Erla GmbH through
its wholly owned subsidiary, JKM Erla Automotive Limited.
The Eisenwerk Erla site has been in business for over 630 years and has
manufacturing facilities in
This acquisition will not only grant Dynamatic® access to marquee
customers in the global Automotive and Turbocharger markets but will also
enhance Dynamatic®’s design, development and manufacturing capabilities
especially with respect to high precision, complex metallurgical products for
automotive engines and turbochargers. Further, the acquisition of Eisenwerke
Erla will grant Dynamatic® ownership of one of the finest ferrous foundries in
June 2011
Subsequent to its acquisition of the German and Indian operations of
Eisenwerk Erla last week, Dynamatic® has rebranded and launched the Sanmar
Ferrotech foundry in Gummudipoondi, Tamil Nadu, as JKM Ferrotech.
The new Dynamatic® brand, JKM
Ferrotech, was unveiled by Mr. Udayant Malhoutra, CEO and Managing Director,
Dynamatic Technologies, on 13th June 2011 at a special event which was graced
by Mr.Sanjiv Bhasin - CEO, DBS Bank India, Mr. B C Park - Senior General
Manager - Vendor Development, Hyundai Motor India and Mr. B Natraj - Director,
Sanmar Corporate.
A
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.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
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 |
YES |
|
--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.