MIRA
INFORM REPORT
|
Report Date : |
23.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
FORCE MOTORS LIMITED (w.e.f.
12.05.2005) |
|
|
|
|
Formerly Known
As : |
BAJAJ TEMPO LIMITED |
|
|
|
|
Registered
Office : |
Mumbai – |
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Country : |
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|
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Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
08.09.1958 |
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|
|
|
Com. Reg. No.: |
11-011172 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.131.790 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L34102PN1958PLC011172 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB00002C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB7066L |
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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
: |
Design, development and manufacture of automotive
components, aggregates and vehicles. |
|
|
|
|
No. of Employees
: |
4662 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 13300000 |
|
|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Firodia Group Company. It is a well established and a
reputed company having fine track. Financial position is good. Directors are
reported to be an experienced and respectable businessmen. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/
Corporate Office: |
Mumbai – |
|
Tel. No.: |
91-20-22776380-89
/ 27476381 Extn. 4274 |
|
Fax No.: |
91-20-22775984/
2773017/ 91-20-27473017 or 27404678 27485281 |
|
E-Mail : |
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|
Website : |
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|
Location : |
Owned |
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|
|
|
Factory 1 : |
Mumbai – |
|
Tel. No.: |
91-20-27476381 |
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Fax No.: |
91-20-27404678 |
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|
|
|
Factory 2 : |
Pithampur, District Dhar - 454 775, |
|
Tel. No.: |
91-7292-253004 |
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Fax No.: |
91 7292 308180 |
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|
|
|
Overseas
Office : |
Located at : ·
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Abhay N. Firodia |
|
Designation : |
Chairman and Managing Director |
|
Qualification: |
B. A. (Hons.) |
|
Date of
Appointment : |
01.07.1987 |
|
|
|
|
Name : |
Mr. Prasan Firodia |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. S. N. Inamdar |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Vinay Kothari |
|
Designation : |
Director |
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|
Name : |
Mr. Sudhir Mehta |
|
Designation : |
Director |
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|
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|
Name : |
Mrs. Anita
Ramachandran |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Atul Chordia |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S. A.
Gundecha |
|
Designation : |
Non - Executive Director |
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|
|
|
Name : |
Mr. Pratap V Pawar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S Padmanabhan |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. L. Lakshman |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. B. Bhandari |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Arun Seth |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Aparna G. Lambore |
|
Designation : |
Company Secretary |
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|
|
|
Audit Committee : |
|
|
Name : |
Mr. Vinay Kothari |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. Pratap V Pawar |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. S Padmanabhan |
|
Designation : |
Member |
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|
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|
Name : |
Mr. S. A. Gundecha |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. Sanjay Bhandari |
|
Designation : |
Sr. GM Sales (Tractors) |
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|
|
|
Name : |
Mr. Sunil
Dhadiwal |
|
Designation : |
GM Sales (Passenger Vehicles) |
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|
|
|
Name : |
Mr.
Sudhanshu Shiromani |
|
Designation : |
GM Sales (Goods Vehicles) |
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|
|
|
Name : |
Mr. V. K.
Magoon |
|
Designation : |
D. G. M. (Sales) |
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|
|
|
Name : |
Mr. Rajesh
Sharma |
|
Designation : |
D. M.
(Sales) |
|
|
|
|
Name : |
Mr. Bobby
Markose |
|
Designation : |
|
|
|
|
|
Name : |
Mr. V.
Ramakrishnan |
|
Designation : |
South I DDM
(Sales) |
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|
|
SERVICE |
|
|
Name : |
Mr.
M.P.Kanade |
|
Designation : |
Vice
President (Corporate
Quality and Product Support) |
|
|
|
|
Name : |
Mr. S.
Vijayan |
|
Designation : |
Sr.DM
(Service) |
|
|
|
|
Name : |
Mr. V. N.
Bellary |
|
Designation : |
DDM
(Service) |
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|
|
|
International Sales : |
|
|
Name : |
Mr. Abhay
Desai |
|
Designation : |
GM (International Sales and Marketing) |
|
|
|
|
Name : |
Mr. Sachin
Dasharath |
|
Designation : |
D.M. (SAARC
Countries) |
|
|
|
|
Name : |
Mr.
Ravindra Patki |
|
Designation : |
D.M. (Africa,
|
|
|
|
|
Purchase : |
|
|
Name : |
Mr. Satish
Kumar Changede |
|
Designation : |
Purchase |
|
|
|
|
Name : |
Mr.
Radhakrishnan |
|
Designation : |
Corporate HR |
|
|
|
|
Name : |
Mr. Gogle |
|
Designation : |
Senior Manager – Finance |
|
|
|
|
Name : |
Mr. A.G. Bhave |
|
Designation : |
Senior General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
533230 |
4.05 |
|
|
6285042 |
47.70 |
|
|
6818272 |
51.75 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6818272 |
51.75 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
- |
|
|
4713 |
0.03 |
|
|
35600 |
0.27 |
|
|
781868 |
5.93 |
|
|
821840 |
6.24 |
|
|
|
|
|
|
3285474 |
24.93 |
|
|
|
|
|
|
1564534 |
11.87 |
|
|
686142 |
5.21 |
|
|
5536150 |
42.02 |
|
Total Public shareholding (B) |
6357990 |
48.25 |
|
Total (A)+(B) |
13176262 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
13176262 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Design, development and manufacture of automotive components,
aggregates and vehicles |
||||||||
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|
|
||||||||
|
Products : |
·
Tempo
– Trax ·
Minidor
·
Tempo Traveler ·
Agricultural
Tractors ·
Diesel
Engines ·
Moulds ·
Dies ·
Press
Tools ·
Jigs
and Fixtures ·
3
Wheeler ·
HCV ·
LCV ·
MUV ·
Tractor |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
On-road automobiles having 4 or more wheels such as Light, Medium and
Heavy Commercial Vehicles, Jeep type vehicles and passenger cars |
Nos. |
60000* |
55000 |
26717 |
|
Agricultural Tractor |
Nos. |
12000 |
12000 |
1097 |
|
Diesel Engines for other purposes |
Nos. |
7500 |
6000 |
20 |
|
Moulds, Dies, Press Tools, Jigs and Fixtures |
Nos. |
1000 |
500 |
1599** |
* Inclusive of a
capacity not exceeding 10,000 (10,000)
numbers per annum for the manufacture of three wheelers.
** Includes 1461
(1312) Capitalised for self-use.
Note: Installed Capacity is as estimated by the Managing
Director and accepted by the Auditors without verification.
GENERAL INFORMATION
|
Suppliers [as on 31.03.2010] : |
·
Agricultural Engineering Corporation ·
Anand Traders ·
A.E. W. Industries ·
Anil Industries ·
Alankar Leather Industries ·
A.P. Industries, Acey Engineering Private Limited ·
Arasna Industries ·
Associated Foundries ·
Ashwini Precision Dies and Tools ·
Atul Engineers ·
Anjali T. Precision, Asian ·
Auto Parts ·
Akshay Industries ·
Arihant Industries ·
Bharat Engg. Corporation ·
Bhavani Industries ·
Bhavani Udyog ·
Bhavani Enterprise ·
Bhavani Engineering ·
Chandan Foundry ·
Caravan Engineers ·
Chandan Polyproduct ·
Coussinet Engineers ·
Crushwell Engineers Private Limited. |
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Customers : |
·
Wholesalers ·
Dealers |
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|
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No. of Employees : |
4662 (Approximately) |
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|
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|
Bankers : |
·
State Bank of India ·
Canara Bank ·
Standard Chartered Grindlays Bank Limited ·
Citibank NA ·
Bank of Maharashtra ·
Bank of America NT and SA ·
HDFC Bank Limited |
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Facilities : |
Note: Item No.1 is secured by hypothecation of company stock of raw
materials, stock-in-process, stores, finished goods, tolls and book debts,
present and future, situated at Akurdi, District Pune and Pithampur, District
Dhar (MP), Charges created in favour of banks to the company rank pari passu
inter se. Item No. 2 is secured by first charge on all fixed assets (including
equitable mortgage over land and building) and second charge on all current
assets of the company, both present and future, situated at Akurdi, District
Pune and Pithampur, District Dhar (MP), Charges created in favour of banks to
the company rank pari passu inter se.
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. G. Bhagat Chartered
Accountant |
|
Address : |
Pune, |
|
|
|
|
Cost Auditors: |
Joshi Apte and Associates Chartered
Accountants |
|
Address : |
Pune, |
|
|
|
|
Subsidiaries / Associates : |
·
Jaya Hind Investments Private Limited ·
Jaya Hind Industries Limited ·
Pinnacle Industries Limited |
|
|
|
|
Joint Venture
Company : |
Man Force Trucks Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13213802 |
Equity Shares |
Rs.10/- each |
Rs.132.138 Millions |
|
|
|
|
|
Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13176262 |
Equity
shares fully paid up |
Rs.10/- each |
Rs.131.763 Millions |
|
|
[of the above
200918 (200918) Equity Share are allowed as fully paid share pursuant to a
contract without payment being received in cash and 5729934 (5729934) Equity
Share are allotted as fully paid Bonus Shares by capitalization of reserves] |
|
|
|
|
Add : Amount paid on forfeited shares |
|
Rs.0.028 Million |
|
|
Total |
|
Rs.131.790 Millions |
Note: Offer
on right basis for 17932 (17932) Equity Share of Rs.10/- each is kept in
abeyance as per provision of section 206A of the companies Act, 1956
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
131.790 |
131.790 |
131.790 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3210.984 |
2701.374 |
2143.396 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3342.774 |
2833.164 |
2275.186 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1190.777 |
620.027 |
940.844 |
|
|
2] Unsecured Loans |
1304.295 |
858.283 |
668.379 |
|
|
TOTAL BORROWING |
2495.072 |
1478.310 |
1609.223 |
|
|
DEFERRED TAX LIABILITIES |
157.296 |
88.029 |
338.229 |
|
|
|
|
|
|
|
|
TOTAL |
5995.142 |
4399.503 |
4222.638 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3925.312 |
2843.098 |
2892.550 |
|
|
Capital work-in-progress |
143.115 |
122.314 |
201.517 |
|
|
|
|
|
|
|
|
INVESTMENT |
567.446 |
567.447 |
571.567 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3113.075
|
1937.268
|
1960.312
|
|
|
Sundry Debtors |
1613.656
|
1502.273
|
1228.913
|
|
|
Cash & Bank Balances |
147.574
|
257.092
|
166.268
|
|
|
Other Current Assets |
0.057
|
0.302
|
0.463
|
|
|
Loans & Advances |
966.440
|
647.548
|
709.895
|
|
Total
Current Assets |
5840.802
|
4344.483
|
4065.851
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3610.726
|
2357.300
|
2399.233
|
|
|
Current Liabilities |
344.908
|
680.611
|
697.820
|
|
|
Provisions |
525.899
|
439.928
|
411.794
|
|
Total
Current Liabilities |
4481.533
|
3477.839
|
3508.847
|
|
|
Net Current Assets |
1359.269
|
866.644
|
557.004
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5995.142 |
4399.503 |
4222.638 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14804.529 |
9555.503 |
7490.655 |
|
|
|
Other Income |
935.993 |
963.068 |
3669.353 |
|
|
|
TOTAL (A) |
15740.522 |
10518.571 |
11160.008 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material |
11058.165 |
7328.562 |
6462.379 |
|
|
|
Expenses included in above items, Capitalised |
(208.953) |
(67.685) |
(72.201) |
|
|
|
Other Expenses |
3621.816 |
2408.891 |
2450.431 |
|
|
|
TOTAL (B) |
14471.028 |
9669.767 |
8840.609 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1269.494 |
848.804 |
2319.399 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
448.173 |
419.956 |
418.256 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
821.321 |
428.848 |
1901.143 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
235.142 |
(175.378) |
655.513 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
586.179 |
604.226 |
1245.630 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1385.024 |
887.469 |
(358.161) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1824.633 |
60.422 |
0.000 |
|
|
|
Proposed Dividend |
65.881 |
39.529 |
0.000 |
|
|
|
Provision for Tax on Distributed
Profit |
10.687 |
6.720 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
70.000 |
1385.024 |
887.469 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export On FOB Basis |
271.709 |
269.640 |
300.847 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
115.293 |
26.750 |
98.678 |
|
|
|
Components |
2525.904 |
1057.993 |
1240.857 |
|
|
|
Spare Parts for resale |
0.000 |
0.000 |
0.341 |
|
|
|
Capital Goods |
34.365 |
3.113 |
0.152 |
|
|
|
Machinery Spares, Tools and Others |
71.909 |
12.777 |
18.323 |
|
|
TOTAL IMPORTS |
2747.471 |
1100.633 |
1358.351 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
44.49 |
45.86 |
94.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
|
Net Sales |
|
4314.400 |
5286.460 |
|
Total Expenditure |
|
3885.720 |
5009.610 |
|
PBIDT (Excl OI) |
|
428.680 |
276.850 |
|
Other Income |
|
0.990 |
0.440 |
|
Operating Profit |
|
429.670 |
277.290 |
|
Interest |
|
59.950 |
78.710 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
369.720 |
198.580 |
|
Depreciation |
|
140.760 |
150.120 |
|
Profit Before Tax |
|
228.960 |
48.460 |
|
Tax |
|
35.930 |
6.010 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
193.040 |
42.450 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
193.040 |
45.450 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.72
|
5.74
|
11.16
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.55
|
4.49
|
25.38
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.41
|
5.97
|
27.32
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.15
|
0.84
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.09
|
1.75
|
2.25
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.25
|
1.16
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is an integrated automobile company, which focuses on
design, development and manufacture of automotive components, aggregates and
vehicles in
Exports
The export turnover
for the year was Rs.271.700 millions against the previous year's export of
Rs.269.600 millions.
Orders for Machinery
Since the close of
the Accounting Year the Company has placed orders for new machinery, equipment
and other capital assets of value of Rs.358.300 millions.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The growth story for the auto Industry in
Enhanced competition, uprated technologies, heightened performance
standards for environmental protection and safety - are a beneficial force
causing the automobile industry to modernize, adapt newer technologies and
processes and, in its own way, march towards market maturity.
PERFORMANCE OF THE
COMPANY
During the year the Company achieved higher turnover and sold 19,822
numbers of Light Cptnmercial Vehicles, (including Small Commercial ,Vehicles), 6,215
numbers of Multi Utility Vehicles and 1,013 numbers of Tractors and thus
achieved a growth of 55% in the sales turnover, which stood at Rs.14804.500
millions compared to the previous year’s sales turnover of 9555.500 millions.
The Traveller range of vehicles with the common rail engine, has been
well received. The growth in this product category has been gratifying. The
Company has taken various steps to enhance production in order to cater to this
growing market. A Euro IV version of the Traveller with further advancement in
optics, has also been introduced in the market.
Sale of Trax vehicles improved during the relevant period. The anomaly
in the taxation structure relating to Tariff Item 8702.10 remains not fully
resolved, and this does adversely affect the cost of the vehicle to the
customer, and thus the vehicles’ sales volumes.
The Trump 40, the Small Commercial Vehicle (SCV), has continued to gain
volumes during the relevant period. It is appreciated in the market for its
ruggedness, performance and operating economy.
The Tractor business of the Company is being re-energized. The OX-25 a
full service small tractor, has been especially appreciated both for Orchard
usage, and for regular tillage / haulage operations. Steps are initiated to
achieve significant growth in this product line.
New Product-lines,
new collaborations, Technologies and Plans
The new SUV developed by the Company has been named ‘Force One’. The
testing and certification activities for the vehicle have been completed. A
completely new Sales Channel comprising of 30 dealers pan-India, with
independent and dedicated Show Rooms, separate Service Facilities, as also
importantly - fully dedicated and well trained Sales and Service Staff teams -
are created, to support the sales of these SUVs. This sales’ vertical will
focus on the Personal Vehicles, as distinct from the Company’s traditional
product-line of Light Commercial Vehicles, or of Agricultural Vehicles
(tractors). Thus there are now three independent sales verticals in the
Company.
The technical collaboration arrangement with Daimler AG will facilitate
the introduction of a 6 to 8-seater ‘People Carrier’, a high end, high
performance vehicle; the introduction of which is expected towards the end of
the next financial year. The Company is considering setting up an independent
facility for the same at the Pithampur plant location, subject to satisfactory
conclusion of interactions with the Government of Madhya Pradesh.
It is planned that new additions in the Personal Vehicles Category -
like the MPV (Multi Purpose Vehicle) for which a technical collaboration
agreement is signed with Daimler AG, will also be sold through the new channel,
catering to the sophisticated and premium end of the market.
The Company has entered into agreement with MB tech (a company of the
Daimler Group) for technical support in respect of refinement - of electronic
architecture, installation of aggregates and systems, and build quality of the
coach work, interiors, etc. - of the Company’s products.
There is a separate technical support agreement entered into with Lotus
Engineering,
The introduction of the above products, and the fine- tuning of
Company’s product lineup, in interaction with the consultants, is expected to
result in substantially refining the Company’s product lineup - in keeping with
evolving market expectations and the emerging state of the art.
The cathodic paint shop installed at Pithampur was capitalized during
the period by taking it over from MAN
FORCE TRUCKS PRIVATE LIMITED during the period. This is a fifth generation CED
paint shop incorporating the latest technologies, and is expected to result in
significant benefits in product quality and cost optimisation.
The Company has embarked on a project to install a robotized top coat
painting line at Pithampur. Also ordered is a high capacity pressline. Both
these are expected to be commissioned in early 2012.
Heavy Commercial
Vehicles and Joint Venture of the Company - Man Force Trucks Private Limited
As reported earlier, the Company’s joint venture with MAN Truck and Bus
AG (earlier MAN Nutzfahrzeuge AG),
The revenue achieved by MFTPL, during the relevant period is 9290.805
millions. The total number of trucks sold in the domestic market was 3161 and
in the export market 809. This represents 115.49% increase in sales value over
the previous year.
As at 31st of March 2010, the Company had an accumulated book loss of
Rs. 2680.679 millions. The performance of the JV Company during the relevant
period also, was not as expected. The Company is in discussion with the joint
venture partner MAN, to resolve issues which arise from two aspects:
On the one hand, the need to offer vehicles with appropriate technology,
and to specially develop such products for the Indian market - more so in
regard to haulage vehicles, and on the other hand, regarding the need to
increase export sales.
Export of vehicles via the MAN global network was an important
consideration for the very formation of the joint venture. The Company had completed
the project for Heavy Commercial Vehicles independently. For this project
technology for engines, gearboxes, cabs, etc. was purchased on full payment
from MAN and ZF, etc. The joint venture was created with equity participation
from MAN, considering their offer to export upto 10,000 vehicles per annum.
While the above basic issues relating to strategic alignment are being
resolved, the partners are working to find solutions for the success of the
project.
The financial results of MFTPL are being audited, and are expected to be
finalized and adopted in the near future.
FINANCIAL
PERFORMANCE
As stated above, the Company sold 27050 numbers of vehicles during the
financial year 2010-11 compared to 20595 vehicles in the previous year 2009-10.
However the proportion of LCVs and UVs have increased in relation to the Small
Commercial Vehicles (SCV).
The Profit before Interest and Tax from operations was 1048.500 millions
compared to operating profit for the previous year 2009-10 amounting to 380.000
millions.
The net profit of the Company after interest, depreciation and tax items
was 586.200 millions for the year 2010-11 as compared to 604.200 millions for
the year 2009-10, in which year exceptional item/gain accounted fort 216.600
millions in the profit.
Considering the improved operating performance of the Company, the Board
of Directors of the Company has recommended a dividend of 5 per share on
1,31,76,262 equity shares of 10 each for the consideration of the Members.
A sum of 1824.633 millions is transferred to the General Reserve
Account. The Reserves and Surplus of the Company as on 31st March, 2011 stood
at 3210.983 millions.
Contingent
Liability in respect of :
|
PARTICULARS |
31.03.2011 Rs
in Millions |
31.03.2010 Rs
in Millions |
|
(a) Letters of
Credit and Bank Guarantees outstanding |
286.421 |
167.731 |
|
(b) Taxes and
Duties |
198.982 |
177.007 |
|
(c) Others |
217.550 |
208.623 |
As reported earlier, a foreign company has initiated legal proceedings in
a foreign court, in respect of notional and unfounded claims for damages,
without there being any enforceable arrangement, relating to export business.
The Company has obtained opinion from a Senior Counsel, in respect of these
alleged claims against the Company. The Company has been advised that such
notional I unfounded claims are not as per the applicable law nor these claims,
if any, can be enforced in the Court of Law in
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30.09.2011
(Rs
in Millions)
|
S.No. |
Particulars |
3 Months Ended 30.09.2011 Unaudited |
6 Months Ended 30.09.2011 Unaudited |
|
1 |
Net Sales / Income from Operations |
4978.194 |
9062.273 |
|
|
Other Operating Income |
308.273 |
538.597 |
|
2 |
Expenditure : |
|
|
|
|
a) (Increase) / Decrease in Stock in trade and Work in
Progress |
[80.212] |
[405.971] |
|
|
b) Consumption of Raw Materials |
3903.735 |
7313.037 |
|
|
c) Employees Cost |
792.541 |
1320.492 |
|
|
d) Depreciation |
150.122 |
290.880 |
|
|
e) Other Expenditure |
393.559 |
667.789 |
|
|
f) Total |
5159.745 |
9186.227 |
|
3 |
Profit from Operations before Other income, Interest and
Exceptional Items (1-2) |
126.722 |
414.643 |
|
4 |
Other Income |
0.443 |
1.432 |
|
5 |
Profit before Interest and Exceptional Items (3+4) |
127.165 |
416.075 |
|
6 |
Interest and Finance Charges |
78.706 |
138.653 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
48.459 |
277.422 |
|
8 |
Exceptional Items |
- |
- |
|
9 |
Profit (+)/ Loss(-) from Ordinary Activities before tax
(7+8) |
48.459 |
277.422 |
|
10 |
Tax Expense |
6.009 |
41.935 |
|
11 |
Profit (+)/ Loss(-) from Ordinary Activities after Tax
(9-10) |
42.450 |
235.487 |
|
12 |
Extraordinary Items (Net of Taxes) |
- |
- |
|
13 |
Net Profit (+)/ Loss(-) for the period (11-12) |
42.450 |
235.487 |
|
14 |
Paid-up Equity Share Capital(Face Value of Rs. 10 per
share) |
131.790 |
131.790 |
|
15 |
Reserves excluding Revaluation Reserves as per balance
sheet of previous accounting year |
- |
- |
|
16 |
Earnings per Share (EPS) a) Basic and diluted EPS before Extraordinary items for
the period, for the year to date and for the previous year (not to be
annualized) |
3.22 |
17.87 |
|
17 |
Public shareholding |
|
|
|
|
- Number of shares |
6357990 |
6357990 |
|
|
- Percentage of shareholding |
48.25 |
48.25 |
|
18 |
Promoters and Promoter Group Shareholding (a) Pledged /
Encumbered |
|
|
|
|
Number of shares |
-- |
-- |
|
|
Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
-- |
-- |
|
|
Percentage of shares (as a % of the total share capital of
the Company) |
-- |
-- |
|
|
|
|
|
|
|
(b) Non-encumbered |
|
|
|
|
Number of shares |
6818272 |
6818272 |
|
|
Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
|
|
Percentage of shares (as a % of the total share capital of
the Company) |
51.75 |
51.75 |
·
At the beginning of the quarter, no investor’s complaints
were pending. During the quarter, the company received twelve investor’s
complaints. As on 30.09.2011 two complaints were pending.
·
The company is operating in a single segment.
·
Unaudited Financial Results (Provisional) for the
quarter ended on 30.09.2011 have been subjected to limited review by the
auditors.
·
The above results are reviewed and recommended by
the audit committee and the taken on record and approved by the board of
directors in its meeting held on 22.10.2011.
STATEMENT OF ASSETS
AND LIABILITIES AS AT 30.09.2011
(Rs.
in Millions)
|
Particulars |
As at 30.09.11 |
|
|
Unaudited |
|
SOURCES OF FUNDS |
|
|
Shareholders' Funds |
|
|
Share Capital |
131.790 |
|
Reserves and Surplus |
3446.471 |
|
|
|
|
Loan Funds |
3286.461 |
|
Deferred Tax Liability (Net) |
143.889 |
|
Total |
7008.611 |
|
APPLICATION OF FUNDS: |
|
|
Fixed Assets |
4253.755 |
|
Investments |
567.447 |
|
Current Assets, Loans and Advances: |
|
|
Inventories |
3736.809 |
|
Sundry Debtors |
2077.199 |
|
Cash and Bank Balances |
172.173 |
|
Other Current Assets |
0.080 |
|
Loans and Advances |
1400.932 |
|
|
|
|
Less: Current Liabilities and Provisions: |
|
|
Current Liabilities |
4595.226 |
|
Provisions |
604.558 |
|
|
|
|
Net Current Assets |
2187.409 |
|
Total |
7008.611 |
FIXED ASSETS
·
Intangible Assets
·
Free Hold Land
·
Lease hold Land
·
Building
·
Plant, Machinery and Equipment
·
Dies and jigs
·
Electric Installation
·
Furniture and Fixtures
·
Electric Fittings
·
Vehicles
·
Aircraft
AS PER WEBSITE DETAILS
Heritage
Late
Shri N.K.Firodia, a dedicated Gandhian and Visionary Industrialist, was the
Founder-Managing Director of Force Motors. Having participated in the freedom
struggle for
On 15th
August 1957, the 10th anniversary of Indian independence, Mr. N.K.Firodia
signed a collaboration with Vidal and Sohn Tempo Werke GmbH for phased
manufacturing of TEMPO 3-WHEELER and manufacturing was started in a small plant
at Goregaon,
Expanding
the business in 1961, the Company acquired about 150 acres of land in Akurdi
near Pune. The production was transferred to Pune by the end of 1964. Ambitious
plans for producing Light Commercial Vehicles for the growing industrial
economy of
The
VIKING vehicle subsequently was upgraded with a diesel engine and the MATADOR
was born. The production of Matador commenced in 1969. In 1975, the
manufacturing capacity of the company was increased to 12,000 vehicles per
year, in addition to 6,000 diesel engines for other purposes.
The
collaborator company in
The TRAX
Vehicle, specifically designed for the rough roads of rural
To
further modernise its LCV product range, the Company took up the production of
the TRAVELLER, under licence from Daimler-Benz. A new Plant was set up in 1987,
on a
News and Events
The
Presence in Health Exibition 2010 In
The
Confederation of Indian Industry (CII) and Bangalore International Exhibition
Services (BIES) organized ‘Healthex 2010’ 16th July 2010 :
The Confederation
of Indian Industry (CII) and Bangalore International Exhibition Services (BIES)
organized ‘Healthex 2010’, from 16th - 19th July, 2010, an International
Exhibition on Medical, Surgical and Diagnostic equipments, Technology,
Materials, Supplies and allied services at Bangalore International Exhibition
Center.
Being an ideal platform to showcase medical equipment we actively participated
in this exhibition with their Special Care Trauma Traveller Ambulance and
Standard Traveller Ambulance products. Our stall was strategically positioned
at a prominent locations and displayed our Special Care Trauma Traveller
Ambulance which became the talk of the exhibition. Our uniquely designed stall
stood apart with its stylishly planned front fascia, ample space for visitors,
apt positioning of products and fresh branding graphics.
This exhibition saw over 5000 visitors in three days which included several
prospective customers from various hospitals and large medical institutions.
The ambulance was much appreciated and was seen as a huge advantage by senior
decision makers from hospitals. These senior executives clearly saw the
additional benefits of a factory built offering and our price range over the
competitors like TATA, Swaraj Mazda. This exhibition has been a major boost to
us, Force Motors having conquered more than 70% of the whole Ambulance Market
in
The Force Team was equally excited about customer response received with more
than 80 enquires at one go... Time to pull up our socks and get into fast
forward mode in converting the enquires.
It’s
end of the road for Force Motors’ Minidor
Force
Motors stops manufacture of 15-yr old MinidorEconomic Times PUNE : 30th August
2010
Having
pioneered the term ‘autorickshaw’, for a motorised rickshaw as against the
cycle or hand-pulled one, Force Motors (earlier Bajaj Tempo) has discontinued
manufacture of its 15-year old three-wheeler, the Minidor. Company chairman, AN
Firodia, was categorical that this was not an exit from the three-wheeler segment
— a segment which they carved out and even named decades ago.
In a move away from its traditional sector, of being a public transport
carrier, it is aiming at the personal vehicle user. For its passenger car
foray, it has chosen to enter via the Sports Utility Vehicle (SUV) segment, Mr
Firodia said.
“We will launch a sports utility vehicle (SUV) sometime this year. We do not
have a product in this segment, but we have developed a new platform which will
allow us to launch a stylish new vehicle in a segment which is very popular. We
are in the rural market with the Trax, which is rural multi-utility vehicle
used as a rural taxi in those states that allow it. The SUV is a completely
different segment from the Trax, though,” he said.
Mr.
Firodia said its equal joint venture with MAN Nutzfahrzeuge — MAN Force, which
currently makes heavy commercial trucks, will roll out the first of the
inter-city coaches by Diwali, since they need time to seed the market first.
“The inter-city coach has been fully localised and the body is being built by
Azad of Jaipur. The bus, like the trucks, will carry the MAN brand. Although we
have the flexibility to brand the trucks as Force, we have not done so because
we are concentrating on only the top end. This will be applicable to the bus
business, too,” Mr Firodia stated, adding that they will establish this product
first and then look at other products, like low floor city buses.
Till now, Force Motors had three platforms, catering mainly to the rural,
multi-utility or mass transport markets, comprising the Trump a small
commercial vehicle, the Trax a multi-utility vehicle for rural markets and the
Traveller, a city coach. The SUV will be in a different segment while its bus
business is not in the volume products.
Mr Firodia explained that they stopped making the three-wheeler Minidor from
April since it does not meet Bharat Stage III emission norms. He added, “There
is no market for the product in this configuration, for us to upgrade to BS IV,
but we have not exited the segment and we could look at it later.”
Force Motors has manufacturing presence in Akurdi near Pune and Pithampur, near
Sounding a commonly heard refrain, Mr Firodia said component manufacturers are
unable to cope with the demand surge. “We could sell up to 2,000 units a month
of the Trump, our small light commercial vehicle but we are actually doing only
around 600 a month. That is because of the shortages of components, from tyres
to rotary fuel pumps.
That is also applicable to castings and forgings: demand is very high and they
are not available with this sudden crank up in demand. These supplier
constraints are affecting MAN Force Trucks, our joint venture, too,” Mr Firodia
remarked.
With
excess capacity in its tool room, the OEM is in talks to contract out these
capacities.
Mr Firodia explained the move, saying, “We have enough tool room capacities and
though these are not going a-begging, we can sell upto 50% of that capacity.
Talks are on but nothing has been finalised so far. We are trying to sell tool
room capacities because we have both, the capacity and the capability.”
Force Motors is a low profile, still unfashionably vertically integrated mainly
commercial vehicle maker, making its own engines, chassis, gear boxes, axles,
etc for its entire product range. As a component maker, Force Motors is the
sole supplier of engines to Mercedes Benz
Referring to the JV, Mr Firodia said, “We expect to sell 5,000 trucks this
year, however, there are supplier constraints which is affecting us. We had
intended to import the bigger TGA trucks into
So, we will focus on the range built here and improve our footprint with more
variants. We also need to bring in more haulage vehicles with lower power
ratings than European ones, since that is a market need. Our partner, MAN,
handles exports and we would like to see more of that.”
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.50.33 |
|
|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.31 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
55 |
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.