MIRA
INFORM REPORT
|
Report Date : |
30.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
J K |
|
|
|
|
Registered
Office : |
7, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
14.02.1951 |
|
|
|
|
Com. Reg. No.: |
21-19430 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.410.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L67120WB1951PLC019430 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHJ01475F /
CALJ01643F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACJ6716P |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of
Automotive Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar. |
|
|
|
|
No. of Employees
: |
4000
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 28500000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having good track.
Financial Position of the company appears to be sound. Directors are reported
to be experienced and respectable businessman. Trade relations aree 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
7, |
|
Tel. No.: |
91-33-22484198 /
22486181 |
|
Fax No.: |
91-33-22481641 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative/
Head Office : |
‘Link House’, 3,
Bahadur Shah Zafar Marg, |
|
Tel. No.: |
91-11-23311112-7 |
|
Fax No.: |
91-11-23322059/
23716205 |
|
|
|
|
Plants
Locations : |
v
Jaykaygram,
Kankroli, v
Banmore,
v
v
v
Mysore Plant III, Karnataka, India |
|
|
|
|
Branch Office
: |
3/Fl, Gulab
Bhavan, 3 Bahadur Shah Jafar Marg, |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. Hari Shankar
Singhania |
|
Designation : |
Chairman |
|
Qualification : |
B.Sc., F. Inst. D. ( |
|
Date of Joining : |
25/03/1974 |
|
Other Directorships : |
J. K. Corporation
Limited-Chairman and Managing Director The Central Pulp
Mills Limited- Chairman Atlas Copco ( J. K. Udaipur Udyog Limited-Chairman |
|
|
|
|
Name : |
Mr. Raghupati
Singhania |
|
Designation : |
Vice Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Bharat Hari
Singhania |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Vikrampati
Singhania |
|
Designation : |
Deputy Managing
Director |
|
|
|
|
Name : |
Mr. Swaroop Chand
Sethi |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. Arvind Singh
Mewar |
|
Designation : |
Director |
|
Qualification
: |
B. A. (English
Literature, Economics and Political Science), Hotel Management Ctheirse (U.K) |
|
Date of
Joining : |
07/04/1975 |
|
Other Directorships
: |
v
The
Lake Palace Hotels and Motels Limited -Chairman and Managing Director v
Historic
Resort Hotels Limited -Chairman v
Shikarbadi
Hotels Limited |
|
|
|
|
Name : |
Mr. Bakul Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok U. Katra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kalpataru
Tripathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun K.
Bajoria |
|
Designation : |
President and Director
|
KEY EXECUTIVES
|
Name : |
Mr. P. K. Rustagi |
|
Designation : |
Vice President (legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2011)
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
715,161 |
1.74 |
|
|
18,724,320 |
45.60 |
|
|
19,439,481 |
47.34 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
19,439,481 |
47.34 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
102,062 |
0.25 |
|
|
10,463 |
0.03 |
|
|
285,520 |
0.70 |
|
|
1,903,294 |
4.64 |
|
|
1,450,009 |
3.53 |
|
|
3,751,348 |
9.14 |
|
|
|
|
|
|
5,061,319 |
12.33 |
|
|
|
|
|
|
5,864,237 |
14.28 |
|
|
1,620,158 |
3.95 |
|
|
5,322,803 |
12.96 |
|
|
24,723 |
0.06 |
|
|
500 |
- |
|
|
1,805,744 |
4.40 |
|
|
3,487,500 |
8.49 |
|
|
100 |
- |
|
|
4,236 |
0.01 |
|
|
17,868,517 |
43.52 |
|
Total Public shareholding (B) |
21,619,865 |
52.66 |
|
Total (A)+(B) |
41,059,346 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have
been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
41,059,346 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Automotive
Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
PARTICULARS |
UNITS |
INSTALLED CAPACITY PER ANNUM |
PRODUCTION |
|
QTY. |
QTY. |
||
|
Automobile
Tyres |
Lac
Nos. |
98.61 |
85.98 |
|
Automobile Tubes |
Lac Nos. |
13.82 |
54.62 |
|
Automobile Flaps |
Lac
Nos. |
-- |
24.47 |
GENERAL INFORMATION
|
No. of Employees : |
4000
[Approximately] |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v
Bank
of v
Corporation
Bank v
IDBI
Bank Limited v
Indian
Bank v
Punjab
National Bank v
State
Bank of v
State
Bank of v
State
Bank of v
Syndicate
Bank v
The
Federal Bank Limited v
UCO
Bank |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTES: 1. (a) 63389
Zero Coupon Non-Convertible Debentures (ZCNCDs) of ` 10,000 each issued to a
Bank, outstanding as at 31.03.2011 Nil, were secured by first pari passu charge
created on the specified property of Gujarat and movable and immovable
properties of Company’s Plants in Rajasthan and Madhya Pradesh, both present
and future. These debentures were redeemed at premium based on a YTM of 13.5%
p.a. upto 30.06.2005 and a YTM of 9% p.a. w.e.f. 01.07.2005 with quarterly
rests in five instalments at the end of 3 to 7 years from the respective
dates of payment of allotment money / call money. (b) 12856 Zero Coupon
Non-Convertible Debentures (ZCNCDs) of ` 10,000 each issued to a Bank,
outstanding as at 31.03.2011 Nil, were secured by first pari passu charge
created on the specified property of Gujarat and movable and immovable
properties of Company’s Plants in Rajasthan and Madhya Pradesh, both present
and future. These debentures were redeemed at premium based on a YTM of 13.5%
p.a. with quarterly rests in five instalments at the end of 3 to 7 years from
the respective dates of payment of allotment money / call money. (c) 27353 Zero
Coupon Non-Convertible Debentures (ZCNCDs) of ` 10,000 each issued to a Bank,
outstanding amount ` 21.200 millions., are secured by first pari passu charge
created on the specified property of Gujarat and movable and immovable properties
of Company’s Plants in Karnataka, both present and future. These debentures
are redeemable at premium based on a YTM of 13.75% p.a upto 30.06.2005 and a
YTM of 9% p.a. w.e.f. 01.07.2005 with quarterly rests in five instalments at
the end of 3 to 7 years from the respective dates of payment of allotment
money / call money. (d) 9057 Zero
Coupon Non-Convertible Debentures (ZCNCDs) of ` 10,000 each issued to
Financial Institutions, outstanding amount ` 0.70 cr., are secured by first
pari passu charge created on the specified property of Gujarat and movable
and immovable properties of Company’s Plants in Karnataka, both present and
future. 2656 ZCNCDs are redeemable at premium based on a YTM of 13.75% p.a.
and 6401 ZCNCDs are redeemable at premium based on a YTM of 13.75% p.a.
reduced to a YTM of 9% p.a. w.e.f. various dates during January, 2006 to
March, 2006 with quarterly rests in five instalments at the end of 3 to 7
years from the respective dates of payment of allotment money / call money. 2. Term Loan of
` 400.000 millions from a Bank is secured by a first pari passu charge
created on movable and immovable properties of Company’s Plant in Madhya
Pradesh, both present and future. 3. Term Loans
from Financial Institutions and Banks outstanding as at 31.03.2011 Nil, were
secured by a first pari passu charge created on movable and immovable
properties of the Company’s Plants in Rajasthan and Madhya Pradesh, both
present and future. Loan outstanding from a Bank as at 31.03.2011 Nil
(comprised in Term Loans from Banks) was also secured by exclusive
hypothecation of specified Book Debt. 4. Term Loans
aggregating ` 52.500 millions. from Banks are secured by a first pari passu
charge created on movable and immovable properties of Company’s Plants in
Rajasthan, Madhya Pradesh and Karnataka, both present and future. 5. Term Loans
from Financial Institutions and Banks outstanding as at 31.03.2011 Nil were
secured by a first pari passu charge created on movable and immovable
properties of Company’s Plants in Karnataka, both present and future. 6. Term Loans
aggregating ` 1731.600 millions from Banks are secured by a first pari passu
charge created on movable and immovable properties at a Company’s Plant in
Karnataka, both present and future and also secured by way of hypothecation
created / to be created on the specified movable assets at Company’s Plants
in Rajasthan, Madhya Pradesh and Karnataka. 7. Term Loan of
` 122.500 millions from a Bank is secured by an exclusive charge by way of
hypothecation of specified assets at Company’s Plants in Rajasthan, Madhya
Pradesh and Karnataka. 8. Term Loan of
` 1.100 millions from a Bank and ` 1.900 millions from a body corporate are
secured by hypothecation of specified vehicles. 9. Term Loan of
` 735.500 millions from a body corporate will be secured by way of
hypothecation on the specified assets at a Company’s Plant in Karnataka. 10. Other Loans
from banks represent Working Capital borrowings aggregating 4172.400 millions
secured by hypothecation of stocks and book debts etc. of the Company, both
present and future (except specified book debt exclusively hypothecated to a
bank against Term Loan) and second charge created on movable and immovable
properties of the Company’s Plants in Rajasthan, Madhya Pradesh and Karnataka. 11. Term Loans
carrying first pari passu charge on the movable and immovable properties, are
subject to prior charge of banks on stocks and book debts for working capital
borrowings. 12. (a) Deferred
Sales Tax Loan aggregating ` 298.800 millions from Madhya Pradesh State
Industrial Development Corporation Limited is secured by first available
charge on movable and immovable properties created subject to charges
referred to in note 1(a and b), 2, 3, 4, 6 and 7 on movable and immovable
properties of Company’s Plant in Madhya Pradesh. (b) Deferred
Sales Tax Loan aggregating ` 42.300 millions from Government of Karnataka
subordinated to loans from Financial Institutions, is secured by a second charge
on immovable properties of Company’s Plant in Karnataka. |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered
Accountants |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Associates : |
§ Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) §
Valiant Pacific LLC. (VPL) |
|
|
|
|
Other Related
Party : |
|
|
|
|
|
Subsidiaries : |
§
J. K. International Limited §
J. K. Asia Pacific Limited §
J. K. Asia Pacific (S) Pte. Limited
(Subs. of J. K. Asia Pacific Limited) §
Lankros Holdings Limited §
Sarvi Holdings Switzerland AG. (Subs.
of Lankros Holdings Limited) §
Sunrise Hold Co. S.A. De C.V. (Subs.
of Sarvi Holdings Switzerland AG.) §
§
Comercializadora
América Universal, S.A. De C.V. (Subs. of ETSA) §
Compańía
Hulera Tacuba, S.A. De C.V. (Subs. of ETSA) §
Compańía Hulera Tornel, S.A. De C.V.
(CHT - Subs. of ETSA) §
Compańía
Inmobiliaria Norida, S.A. De C.V. (Subs. of ETSA) §
General
de Inmuebles Industriales, S.A. De C.V. (Subs. of ETSA) §
§
Hules y |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125,000,000 |
Equity shares |
Rs.10/- each |
Rs.1250.000 Millions |
|
700,000 |
14% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 70.000 Millions |
|
4,800,000 |
Preference Shares |
Rs.100/- each |
Rs. 480.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1800.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41,059,346 |
Equity shares |
Rs.10/- each |
Rs.410.600
Millions |
|
|
|
|
|
NOTE:
Includes 33,750 Bonus shares by way of capitalization
of reserves and 8651639 shares issued to the shareholders of erstwhile Vikrant
Tyres Limited. Pursuant to the scheme of arrangement and amalgamation without
payment being received in cash.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (18 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
410.600 |
410.600 |
410.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6736.600 |
6523.600 |
5347.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7147.200 |
6934.200 |
5758.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7586.800 |
4333.300 |
8503.100 |
|
|
2] Unsecured Loans |
5593.500 |
4268.500 |
2514.900 |
|
|
TOTAL BORROWING |
13180.300 |
8601.800 |
11018.000 |
|
|
DEFERRED TAX LIABILITIES |
1448.600 |
1391.000 |
1116.700 |
|
|
|
|
|
|
|
|
TOTAL |
21776.100 |
16927.000 |
17893.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14163.100 |
13527.700 |
11688.800 |
|
|
Capital work-in-progress |
2878.800 |
1320.200 |
2401.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
935.600 |
902.400 |
897.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
|
|
|
Sundry Debtors |
14883.100
|
10107.200
|
8990.500
|
|
|
Cash & Bank Balances |
|
|
|
|
|
Loans & Advances |
2381.900
|
2019.500
|
1962.500
|
|
Total
Current Assets |
17265.000
|
12126.700
|
10953.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
6629.600
|
6483.700
|
4688.000
|
|
|
Other Current Liabilities |
5795.300
|
3395.700
|
2814.600
|
|
|
Provisions |
1041.500
|
1070.600
|
597.700 |
|
Total
Current Liabilities |
13466.400
|
10950.000
|
8100.300 |
|
|
Net Current Assets |
3798.600
|
1176.700
|
2852.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
52.100 |
|
|
|
|
|
|
|
|
TOTAL |
21776.100 |
16927.000 |
17893.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (18 months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
48109.200 |
36777.000 |
49036.100 |
|
|
|
Other Income |
208.600 |
147.200 |
198.000 |
|
|
|
TOTAL (A) |
48317.800 |
36924.200 |
49234.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material and Manufacturing |
39891.300 |
25540.200 |
38062.200 |
|
|
|
Employee Cost |
2718.000 |
2539.800 |
2949.900 |
|
|
|
(Increase)/ Decrease in Finished Goods |
[1482.000] |
726.700 |
359.200 |
|
|
|
Freight and Transportation |
1117.300 |
946.400 |
1489.000 |
|
|
|
Transfer from Capital Reserve |
[234.400] |
[234.700] |
(351.400) |
|
|
|
Other Expenditure |
3299.000 |
2968.200 |
3243.300 |
|
|
|
TOTAL (B) |
45309.200 |
32486.600 |
45752.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3008.600 |
4437.600 |
3481.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
946.500 |
886.600 |
1577.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2062.100 |
3551.000 |
1904.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1145.400 |
1094.200 |
1484.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
916.700 |
2456.800 |
419.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
303.500 |
822.100 |
228.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
613.200 |
1634.700 |
190.500 |
|
|
|
|
|
|
|
|
|
Less |
Tax Provision For Earlier Year |
0.000 |
2.900 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
Debenture Redemption Reserve no Longer Required |
38.500 |
56.300 |
133.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
782.700 |
272.300 |
251.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
3.800 |
10.100 |
73.200 |
|
|
|
General Reserve |
800.000 |
1000.000 |
100.000 |
|
|
|
Proposed Dividend |
123.200 |
143.700 |
110.900 |
|
|
|
Corporate Dividend Tax |
20.000 |
23.900 |
18.800 |
|
|
BALANCE CARRIED
TO THE B/S |
487.400 |
782.700 |
272.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
4180.400 |
3572.300 |
7481.400 |
|
|
|
Royalty |
37.400 |
42.000 |
42.200 |
|
|
|
Interest Income |
11.200 |
22.900 |
0.000 |
|
|
|
Others |
24.700 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
4253.700 |
3637.200 |
7523.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
8890.500 |
7525.100 |
9704.300 |
|
|
|
Capital Goods |
807.500 |
512.800 |
1680.600 |
|
|
|
Spares |
39.800 |
39.100 |
73.800 |
|
|
TOTAL IMPORTS |
9737.800 |
8077.000 |
11458.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.93 |
39.74 |
55.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
14130.800 |
12883.300 |
14229.400 |
|
Total Expenditure |
13485.600 |
12609.400 |
13504.600 |
|
PBIDT (Excl OI) |
645.200 |
273.900 |
724.800 |
|
Other Income |
1.500 |
1.500 |
1.500 |
|
Operating Profit |
646.700 |
275.400 |
726.300 |
|
Interest |
374.100 |
385.800 |
451.800 |
|
Exceptional Items |
0.000 |
(440.900) |
(381.800) |
|
PBDT |
272.600 |
(551.300) |
(107.300) |
|
Depreciation |
244.800 |
246.700 |
261.700 |
|
Profit Before Tax |
27.800 |
(798.000) |
(369.000) |
|
Tax |
18.200 |
(248.100) |
(155.900) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
9.600 |
(549.900) |
(213.100) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (18 months) |
|
PAT / Total Income |
(%) |
1.27
|
4.43
|
0.39
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.90
|
6.68
|
0.85
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.92
|
9.58
|
1.85
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.35
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.73
|
2.82
|
3.32
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.11
|
1.35
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Turnover for the
year was ` 52680.000 millions registering a growth of 33% over the previous year.
Operating profit for the year was ` 2770.000 millions and Profit Before Tax was
` 920.000 millions.
Automobile Sales
across the sectors continued to grow robustly resulting in higher tyre
demand. Spiraling increase in the prices
of raw material and their availability is a matter of concern for the tyre
industry. There was an unprecedented increase in the prices of natural rubber
and other key raw materials. The prices of natural rubber almost doubled during
the year. This along with increase in other input costs impacted the
profitability of the Company. Several measures to improve all round operations
and cost efficiencies were undertaken. However, the revision in selling prices
could not keep pace with the abnormal increases in costs.
JK Tornel -
With the Indian
economy growing at a healthy pace and automobile industry making rapid strides,
the demand of tyres is expected to increase sizably. The Company has undertaken
several expansion projects to meet the rising demand for its tyres.
QUALITY – A CREED AT JK TYRE
“Commitment to
Excellence” is one of the core values of the Company. It is indeed a matter of
great pride that the Company has been awarded “2010 TPM Excellence Award” by
JIPM (Japan Institute of Plant Maintenance) in one go, outside Japan, for all
its manufacturing locations. This more than exemplifies their commitment to
excellence, in their endeavours to produce world-class products and provide
pro-active service to their valued customers.
Besides
maintaining ISO/TS-16949 Quality Management System for Automotive Industry, JK
Tyre ensures highest standards of health, safety and environment, while
maintaining operational integrity. The Company received OHSAS-18001 : 2007 for
all its three plants at one go during the year.
Concern for
“Environment” at JK Tyre has a larger connotation. All their manufacturing
facilities are non-pollutant, with zero-waste discharge to the public system.
Further, thousands of trees are planted around their facilities, to not only
improve the visual environment, but also to improve the quality of air around.
State-of-the-art
Plant and Machinery which deliver high quality products are installed at all JK
Tyre plants. Moreover, continuous upgradation of existing equipment ensure
manufacture of high quality tyres incorporating latest technologies.
JK TYRE – MARCHING AHEAD
In face of the
challenges in the year, the Company made significant strides.
• JK Tyre
continues to be
• JK Tyre produced
1st time ever in the country, Ultra Large OTR Tyre of 12 ft height, weighing
3.6 Tons. This has been delivered to BEML - their prime customer for these
tyres. This has reinforced their leadership in the OTR segment.
• Capacity
expansion of Passenger Car Radials by 5.34 lac tyres p.a. became fully
operational.
• JK Tyre has been
ranked 75th amongst
EXPANSION PROJECTS
The Company has
undertaken several expansion projects to meet the growing demand for its tyres.
i) Truck Radials
As reported last
year, the expansion project for further enhancing the capacity to 10 Lac tyres
at the existing facility in
ii) Passenger Car
Radials (PCR)
Project for
enhancing Car Radial capacity by 5.34 lac p.a. at Company’s Banmore Tyre Plant
has been completed during the year.
iii) Off The Road
Tyres (OTR)
The expansion of
OTR capacity was completed during the year which has enabled the Company to
enhance its OTR range. Ultra Large OTR tyres and their supplies have commenced.
This further reinforced the Company’s leadership position in the OTR market,
with highest market share.
NEW GREEN SITE PROJECT
Construction at
the state-of-the-art radial tyre facility near Chennai commenced during the year.
This facility slated to produce 25 Lac Car Radial tyres and 2 lac Truck / Bus
Radials per annum, is expected to go on stream during the current year.
Financing for this project has already been tied up.
With the
completion of the above projects, the turnover of the Company is expected to
increase significantly in the years ahead and reinforce JK Tyre’s standing in
the TBR and Car radial segments.
JK TREAD
Retreading
services under the brand ‘JK Treads’ provides end-to-end solutions to the
customers and act as an enabler to derive enhanced value from Company’s
commercial tyres, more so JK Truck / Bus radials. Large number of franchises
have been appointed across the country for retreading both bias and radial
truck tyres using JK Treads. Steps are underway to double the retread capacity
to meet the growing demand for these high quality treads.
EXPORT
The Company’s
export at ` 4180.000 millions was on back of the revival in the demand outlook
in the international markets from the lows of the previous year.
JK Tyre enjoys
premium brand status in various international markets including the
MOTORSPORTS
As is well known
that JK Tyre has been promoting motorsports in
JK TORNEL
At JK Tornel
Plants in
Management
Discussion and Analysis
OVERVIEW
The Indian economy
has been on the move with GDP growing at around 8.5%. Some sectors registered
lower growth especially with industrial production slowing down in the second
half of the year, while Agricultural output is on the upswing. However,
inflation remains a cause of worry. Various initiatives taken by the Government
to check inflation are yielding some results though impacting growth. Steep
increase in commodity prices is a matter of great concern to the entire
Industry. Recent global happenings has led to a spiraling rise in the price of
crude and other derivatives, adversely affecting the economy as a whole.
AUTOMOTIVE INDUSTRY
The Automotive
sector has performed well with an overall growth of 27%. Production of trucks
and buses increased by 38% and that of passenger cars by 28%. In the last six
years almost 12 million cars have been added to the Indian Roads. All this has
been driving tyre demand.
TYRE INDUSTRY SCENARIO
The Tyre
Industry’s combined turnover will be almost ` 300000.000 millions during
2010-11. While top line growth has been achieved, the greatest concern during
the year has been the unprecedented increase in input costs, especially that of
natural rubber, owing to growing global demand and inadequate increase in
production. This has impacted the profitability of the industry, as tyre prices
have not kept pace with the rising costs. There has been a significant increase
in the import of both commercial and passenger tyres in
Globally,
radialisation in Truck tyres exhibited steady growth and is currently estimated
at 75% across the world. This has led to contraction in the size of the market
for Bias tyres, thus intensifying competition in this segment.
JK TYRE – MARCHING AHEAD
Despite these
challenges, the zeal for growth and achieving excellence has enabled JK Tyre to
stride ahead.
Among the many
achievements are:
• A growth of 33%
in turnover to ` 5268 Crores from Indian operations and consolidated turnover
of ` 64210.000 millions (US $ 1.4 Billion) including JK
• JK Tyre
continues to be
• JK Tyre
produced, for the 1st time in the country, Ultra Large OTR Tyre of 12 ft
height, weighing 3.6 Tons. This has been delivered to BEML - their prime
customer for these tyres. This has reinforced their leadership in the OTR
segment.
• The Company has
been awarded “2010 TPM Excellence Award” by JIPM (Japan Institute of Plant
Maintenance),
• In its largest
Motorsport endeavour, JK Tyre has acquired the title rights of renowned world
series ‘Formula BMW Pacific’ and will now be known as “JK Racing Asia Series”,
and the cars will be christened “Formula JK Tyre Pacific”.
* JK Tyre has been
recognised as Power Brand and ranked among the top 200 most valuable Brands in
the country.
COMMERCIAL TYRES
Commercial tyres
segment comprising of Truck/Bus Bias and Radial and LCV/SCV Bias and Radial
account for 81% of Company’s turnover. JK Tyre continues to be a leading player
across these segments.
TRUCK BIAS
JK Tyre sales grew
by 15% in the competitive domestic Truck Bias segment as against the market
degrowth by 4.5%. In this segment, a strategic thrust has been made on
increasing the sales of Hi-performance tyres like Jet Extra, Jet One and Jet R
Miles. Extensive communication and customer centric activities have been
conducted for these tyres, across the target markets.
TRUCK/BUS RADIAL
JK Tyre continues
to drive the radial revolution in the truck/bus segment in
LIGHT COMMERCIAL VEHICLE
In the LCV segment
JK Tyre products continue to gain larger acceptance with the consumers. ‘Mera
Sapna Contest 2010’, an annual painting competition for the children of LCV
drivers and owners, was organized culminating in a National Contest. This
proved to be great motivator and helped build close relationship with
customers.
In the fast
growing Small Commercial Vehicle (SCV) Segment, JK Tyre is the market leader
and has significantly increased volumes, as well as, widened its product
offerings, in line with customer needs.
PASSENGER CAR RADIAL
In the passenger
car radial segment JK Tyre makes every drive a delight for millions of happy
customers across
As a part of
customer engagement programme, a customer care campaign covering 2 lac
customers was conducted in Mumbai. Family rallies were organised across the
country in several cities, which enabled close bonding with the end consumers
and their families. The retail network was further strengthened with the
opening of fifteen new ‘Steel Wheels’. Today 125 such outlets are operational
in 75 cities contributing a significant portion of PCR sale.
FARM TYRE
In the Farm Tyre
segment, as a part of marketing thrust, JK Tyre participated in several Kisan
Melas in U.P., Andhra Pradesh, Rajasthan and Haryana and also received
recognition in these agricultural fairs.
OFF THE ROAD TYRES (OTR)
JK Tyre continues
to be the dominant player with the highest market share in this segment. It
offers a wide range from 1200.24 to newly launched 40.00 -57 an Ultra large OTR
Tyre.
OEM and INSTITUTIONAL BUSINESS
Leading Automotive
Manufacturers continue to repose their confidence in JK Tyre which continues
to be preferred
partner to Maruti Suzuki, Tata Motors, Ashok Leyland, Mahindra and Mahindra,
Eicher, Force Motors, General Motors, Volkswagen, Fiat, TAFE, Swaraj Mazda,
John Deere, AMW etc. As mentioned above, a number of new cars were exclusively
launched on JK Tyres in addition to several other launches on JK Tyres.
JK TREAD BUSINESS
As a strategy JK
Tyre entered the retread business to produce precured tread rubber and allied materials.
Around 100 franchises in eight regions across the country have been appointed
for retreading of both bias and truck radial tyres using JK Treads. Good
response has been received from the market, with sales reaching high levels of
tread rubber, in the very first year of operations itself. Steps have been
taken to double the size of this business in the current year.
MOTORSPORTS
JK Tyre is the
leader of Motorsport in the country and has once again taken
JK Racing Asia
Series will feature an ultra-modern standard specification race car. The
Formula JK Tyre Pacific is made of carbon-fibre Kevlar, which has been proven
to be of the highest safety standards. The race cars will run on JK Tyres.
This year the 13th
National Racing Championship was conducted – a record in the history of Motorsport
as single sponsor continuing the championship for 14 calendar years. Of great
pride is the fact that under this Championship JK Tyre has partnered Volkswagen
for the ‘VW JK Tyre POLO Cup’ which is yet another feather in the cap and has
provided another avenue of opportunities to talent in the country.
The 4th JK TYRE
BAJA SAE India event was conducted in
for young drivers in Go-Karting.
PERFORMANCE OF THE
COMPANY
During the year,
the Company recorded its highest ever sales by crossing Rs. 50000.000 millions
sales. The raw material costs have gone up significantly, which have been
partly mitigated through increased all round efficiencies and other measures
HISTORY:
Subject the flagship company of the Hari Shankar Singhania
Group is one of the leading automotive tyre manufacturers in
Post demerger and also the completion of capital restructuring at J K
Industries pushed the company to 16th largest tyre manufacturer in the world.
The merger of JK Tyre and Vikrant Tyres made JKI to cross turnover of over
Rs.20000.000 Millions in the year 2003.
Further the company which made an 51% strategic acquisition of Vikrant tyres in
1997 from Karnataka Government has completed the modernization and expansion of
Vikrant tyres. Late in 2003 Vikrant Tyres was amalgamated with JKI.
Subject manufacturer tyres and tubes, and steel- belted radial tyres, under the
brand name JK Tyres. For the manufacture of tyres subject has technical
collaboration with General Tire International, US. Apart from General tyres the
company has technical collaboration with International, US and Continental AG,
Subject will become the second largest player in the their-wheeler tyres
segment on combined capacity basis(JK tyres + vikrant tyres). The 'Rubber and
Plastic New,
Subject introduced the dual contact high traction and high performance
'Aquasonic' Steel Radial Car Tyre. It also developed
During the year 2000, in the truck and bus tyre segments - 'Tanker Lug' and
'Jet Haul' have been introduced as specific application products. In LCV
category 'WL 407' tyre has been developed and 'Ultima-XP' car radial tyre has
been developed with value-added features.
AS part of its efforts towards enhancing export volumes of tyres, JKI through a
wholly-owned foreign subsidiary tied up with a Chinese company for stheircing
light commercial vehicle (LCV) bias tyres for the export markets. It has opened
a new office at
The company has diversified into hybrid and high-yielding seeds by setting up J
K Agri-genetics to produce cereals, seeds, pulses, etc. The company's sugar
operation(JK Sugars) is located in UP and it has set up a 3120 TCD sugar
project at Meerganj, UP.
Subject which has also diversified into pharma business and set up facility to
produce of 7-ADCA and semi-synthetic cephalosporins at Gajraula, UP. The plant
which started commercial production of Feb 1995. Later the company has hived
off its pharma business to JK Drugs and Pharmaceuticals (JKDPL). Subsequently
JKI has divested its stake in JKPDL to TEVA Pharma of Israel thus existing from
pharma sector.
In Jan.'93, it came out with a rights issue to part-finance the expansion of
radial tyre plant, the balancing / expansion scheme of the Banmore tyre plant. The
money so raised from the rights issue in Jan 1993 is also will be utilized for
the 7-ADCA and semi-synthetic cephalosporins project, the pig iron project and
the rehabilitation of the Central Pulp Mills Limited, (which was done in
association with JK Corp)
The company has their subsidiary investment companies namely Hansdeep
Investment, Hidrive Finance, Panchanan Investment, and Radial Finance. It also
has 3 fully-owned subsidiaries abroad -- J K International, UK, J K Asia
Pacific, Hong Kong and JK Asia Pacific(S) Pte Limited. The company, along with
TIDCO, has promoted J K Pharma Chem for the manufacture of penicillin-G.
Company have announced the start of their OTR tyre production. These tyres will be produced at theur new plant in Maysore. Company have invested Rs.1200.000 Millions in this project ad have also signed an agreement with BEML to supply these tyres for their heavy duty machines. These tyres will cost upto Rs.0.200 Million each and will be used in heavy earth moving and mining equipment.
Company Profile:
·
JK Tyre’s biggest
motorsports endeavour in recent times
·
The car will be christened
Formula JK Tyre Pacific and will run on JK tyres
Present at the launch announcement were Dr. Raghupati
Singhania, Vice-Chairman and Managing Director, JK Tyre and Industries Limited,
Mr. David Sonenscher, CEO, Motorsport Asia Limited. and Mr. Vicky Chandhok,
President, Federation of Motorsport Club of
The championship JK Racing Asia Series will run under
the patronage of the JK Tyre brand and will remain under the management of
Motorsport Asia, the biggest motorsport promoter and organiser in
“The JK Racing Asia Series will showcase a line-up of
drivers from all corners of the world including Asia-Pacific, Europe and
Mr. David
Sonenscher, CEO, Motorsport Asia said,
“Firstly congratulations to JK Tyre for another great achievement for their
group. We at Motorsport Asia are proud to be associated to a brand that takes
pride in all its motorsport endeavours and who are always striving to help
better the industry.”
“The JK Racing Asia Series is truly an excellent Series that has helped to
groom many of the talented race drivers we see out there today. We are also
excited to be coming here later this year to end our first race season with JK
Tyre at the newly built Jaypee International Race Circuit” concluded
Sonenscher.
Congratulating
JK Tyre Mr. Vicky Chandhok, President, Federation of Motorsports Club of India
said, “JK
“
The races will commence in April this year, the venues being
JK Racing Asia Series will feature an ultra-modern standard specification
racecar. The Formula JK tyre Pacific is made
of carbon-fibre Kevlar, which has been proven to be of the highest safety
standards. The 140bhp, 1.2litre BMW engine provides a maximum engine speed of
9,250rpm with a top speed of 230km/h. The race car will run on JK tyres.
The series is in sync with JK Tyre’s philosophy of identifying and developing
young racing talents to become future world champions. The JK Racing Asia
Series is for the most talented drivers rather than just the most financially
healthy to succeed. It is for this reason that both the car and the training
programme have been devised so that little if any advantage can be obtained by
extra investment.
Viewers in over 100 countries will receive great TV coverage of the JK Racing
Asia Series where 185 programmes with 10,850 minutes of coverage are broadcast
to a total potential viewer ship of over 612.000 million.
About JK Tyre and
Motorsports:
JK Tyre and Industries Limited. is a leading tyre manufacturer in
The Racing and Karting programme by JK Tyre has been the breeding ground
for the country’s motorsport talents like Narain Karthikeyan, Armaan Ebrahim, Karun
Chandhok, Ashwin Sundar, Aditya Patel, Parthiva Sureshwaran and other new
emerging talents.
About Motorsport
Asia Limited:
Motorsport
Asia Ltd (MAL) was established in 1996 with the vision to fully develop the
motorsport industry in the Asian region. The company represents the new face of
dynamism and optimism of the region, and is strategically poised to exploit the
growing interest of the sport in
MAL
provides a complete range of motorsport services, ranging from Race Management,
liaison with racing circuits and regulatory bodies; motorsport Technical
expertise and know how for manufacturers and teams; Freight Movement and
transportation of race cars and equipment by sea, land and air; providing Media
and Public Relations services and providing Hospitality, Catering and Entertainment
services.
MAL
also has in-house TV production and distribution facilities, currently filming,
producing and distributing both live and delayed programming. The Asian
Festival Of Speed TV shows are broadcast globally in over 100 countries on both
satellite and terrestrial channels.
AFOS
is visited by media organizations from around the world and articles featuring
the event were published globally. Motorsport Asia operates a dedicated website
www.afos.com which is regularly visited by people in
over 112 countries. In addition Motorsport Asia offers consultancy services for
the construction or enhancement of motorsport facilities.
FIXED ASSETS
v
v Buildings
v Plant and Machinery
v Office Equipments
v Furniture and Fixtures
v Vehicles
v Software
WEBSITE DETAILS:
The advent of JK Organization on the industrial landscape of
JK Organization has been a forerunner in the economic and
social advancement of
JK Organisation is an association of industrial and commercial companies and
charitable trusts. Its member companies, employing nearly 50,000 persons are engaged
in the manufacture of a variety of products and in diverse fields of commerce.
Trusts are devoted to promoting industrial, technical and
medical research, education, religious values and providing better living and
recreational facilities. With the spirit of social consciousness uppermost in
mind, J.K. Organisation is committed to the cause of human advancement.
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.51.14 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.68.22 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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.