MIRA INFORM REPORT
|
Report Date : |
02.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUNDRAM FASTENERS LIMITED |
|
|
|
|
Registered Office : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600 004, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2012 |
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|
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Date of Incorporation : |
10.12.1962 |
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Com. Reg. No.: |
18-004943 |
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Capital
Investment / Paid-up Capital : |
Rs.210.128 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L35999TN1962PLC004943 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00555C / CHES17415G |
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|
|
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PAN No.: [Permanent
Account No.] |
AAACS8779D / AAACS8779D |
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Legal Form : |
A Public Limited Liability Company. The company shares are listed on
stock exchanges. |
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Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
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|
|
|
No. of Employees
: |
1800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 25300000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Directors are reported to be experienced an 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
|
Name : |
Mr. Pashupati |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-44-28478500 |
|
Date : |
27.09.2012 |
LOCATIONS
|
Registered Office/ Corporate
Headquarters : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600 004, |
|
Tel. No.: |
91-44-28478500 |
|
Fax No.: |
91-44-28478510 / 28478508 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
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Factory (In |
Padi, Chennai-600050, Ghengleput District, |
|
Tel No.: |
91-44-26258460 |
|
Fad No.: |
91-44-26357052 |
|
E mail: |
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|
|
|
|
Factory (In |
Krishnapuram, Aviyur-626160, Virudhunagar District, |
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|
|
|
Factory (In |
Mittamandagapet
Village-605106, Villupuram District, Tamilnadu, India |
|
|
|
|
Factory (In |
47/2, |
|
Tel No.: |
91-44-26272231/ 55512231 |
|
Fad No.: |
91-44-26272696 |
|
E mail: |
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|
|
|
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Factory (In |
SIPCOT Industrial Complex, Gummidipoondi-601021, |
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|
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Factory (In |
Auto Ancillary SEZ, |
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|
|
|
Factories (In |
Tamilnadu: Harita, Hosur-635109, |
|
Tel No.: |
91-4344-276651 |
|
Fad No.: |
91-4344-276082 |
|
E mail: |
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|
|
|
|
Factory (In |
Puducherry Korkadu, Nettapakkam Commune, Bahur Taluk, Puducherry-605110 |
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|
|
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Factory (In |
Andhra Pradesh Bonthapally Village-502313, Medak District |
|
|
|
|
Factory (In |
Uttarakhand Patnagar,
Itegrated Industrial Estate, Rudrapur, District Udam Singh Nagar,
Uttarakhand-263153 |
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|
|
|
Factory (In |
Tamilnadu: Ambattur, Hosur, |
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|
|
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Factories (Outside |
Sundaram Fasteners ( |
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|
|
|
Factories (Outside |
Cramlington Precision Forge Limited, |
|
|
|
|
Factories (Outside |
Sundram RBI Sdn, |
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|
|
|
Factories (Outside |
Peiner Umformetechnik |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Suresh Krishna |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Ms. Arathi Krishna |
|
Designation : |
Joint Managing Director |
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|
|
|
Name : |
Ms. Arundathi Krishna |
|
Designation : |
Whole time Director |
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|
|
|
Name : |
Mr. K Ramesh |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Venu Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V Narayanan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R Srinivasan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R Ramakrishnan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. C V Karthik Narayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M Raghupathy IAS |
|
Designation : |
Director (Retired) |
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|
|
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Sampathkumar Moorthy |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
104,085,280 |
49.53 |
|
|
104,085,280 |
49.53 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
104,085,280 |
49.53 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
24,387,970 |
11.61 |
|
|
8,109,479 |
3.86 |
|
|
10,856,901 |
5.17 |
|
|
1,025,175 |
0.49 |
|
|
44,379,525 |
21.13 |
|
|
|
|
|
|
3,678,938 |
1.75 |
|
|
|
|
|
|
47,973,827 |
22.83 |
|
|
9,827,573 |
4.68 |
|
|
183,227 |
0.09 |
|
|
183,227 |
0.09 |
|
|
61,663,565 |
29.35 |
|
Total Public shareholding (B) |
106,043,090 |
50.47 |
|
Total (A)+(B) |
210,128,370 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
210,128,370 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
||||||||||||||
|
|
|
||||||||||||||
|
Product: |
v Fasteners v Radiator
Caps v Powder
Metal Parts v Cold
Extruded Parts v Hot
Forged Parts v Pumps
and Assemblies
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
High tensile fasteners |
MT |
71435 |
61304 |
|
Automotive and other miscellaneous cold formed/extruded
parts/Precision formed gears |
MT |
4600 |
4321 |
|
Powder metal parts |
MT |
9100 |
5554 |
|
Iron powder |
MT |
8000 |
893 |
|
Radiator caps |
Nos. |
100 |
72 |
|
Gear shifters |
Nos. |
- |
113 |
|
|
Nos. |
50000 |
14360 |
|
Hot and warm forged parts |
MT |
6000 |
368 |
|
Shafts |
Nos. |
1350000 |
1226187 |
|
Hubs |
Nos. |
1350000 |
1361844 |
|
Pump Assemblies (Water /Oil/Fuel Pumps) |
Nos. |
- |
5401179 |
GENERAL INFORMATION
|
No. of Employees
: |
1800 (Approximately) |
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|
Bankers : |
·
United Bank of ·
State
Bank of · Standard Chartered Bank · HDFC Bank Ltd · ICICI Bank Millions · Canara Bank · DBS Bank Millions, · The Hongkong · Shanghai Banking Corporation Millions |
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Facilities: |
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Banking
Relations : |
Satisfactory |
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|
|
|
Auditors : |
|
|
Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
4, |
|
|
|
|
Subsidiaries : |
·
Sundram Fasteners Investments Limited, Chennai, ·
Cramlington Precision Forge Limited, ·
Sundram RBI Sdn. Bhd, ·
Upasana Engineering Limited, Chennai, ·
Sundram Fasteners ( ·
Sundram Non-Conventional Energy Systems Limited,
Chennai, ·
Sundram Bleistahl Limited, Chennai, ·
Sundram International Inc, ·
TVS Peiner Services, GmbH (formerly Peiner
Logistik GmbH), Peine, Federal Republic of Germany, ·
Peiner Umformtechnik GmbH, Peine, ·
PUT Grundstücks GmbH, Peine, |
|
|
|
|
Associates : |
· TVS Infotech Limited, Chennai (TVSI) ·
TVS Infotech Inc., ·
TV Sundram Iyengar and Sons Limited, ·
Southern Roadways Limited, |
|
|
|
|
Joint Venture: |
·
Windbolt |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250,000,000 |
Equity Shares |
Re.1/- each |
Rs.250.000 millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210,128,370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210,128,370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Reconciliation of
number of Equity Shares :
Rs. in Millions
|
Particulars |
AS ON 31.03.2012 |
|
|
|
No. of shares |
Amount |
|
Balance at the beginning of the year |
210128370 |
210.128 |
|
Add: Shares issued during the year |
- |
- |
|
Bonus Shares issued during the year |
- |
- |
|
Balance at the end of the year |
210128370 |
210.128 |
|
Total |
|
|
Terms / rights
attached to shares :
The
Company has only one class of equity shares having a par value of Re 1 per
share. Each holder of
equity
share is entitled to one vote per share. The Company declares and pays
dividends in Indian Rupees.
In the event of liquidation of the
Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferred amounts. The
distribution will be in proportion to the number of equity shares held by the
shareholders.
Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
|
Name of Share
holder |
AS ON 31.03.2012 |
|
|
|
No. of shares |
Shares as % of Total number of shares
|
|
T V Sundram Iyengar and Sons Limted |
53312000 |
25.37 |
|
Southern Roadways Limited |
50773280 |
24.16 |
Bonus Shares / Buy Back / Shares for consideration other than cash
issued during the period of five years immediately preceding the financial year
ended 31st March 2012 :
(i) Aggregate number of equity shares allotted as fully paid up pursuant
to contracts without payment being received in cash : Nil
(ii) Aggregate number of equity shares allotted as fully paid up by way
of Bonus Shares 10,50,64,185 equity shares of Re 1 each were issued as fully
paid Bonus Shares in the proportion of 1 : 1 by capitalization of General
Reserve on 29th January 2007.
(iii) Aggregate number of equity shares bought back : Nil
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
210.128 |
210.128 |
210.128 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6124.470 |
5339.368 |
4591.417 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6334.598 |
5549.496 |
4801.545 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3441.934 |
4215.801 |
3693.885 |
|
|
2] Unsecured Loans |
3516.781 |
2219.693 |
1985.202 |
|
|
TOTAL BORROWING |
6958.715 |
6435.494 |
5679.087 |
|
|
DEFERRED TAX LIABILITIES |
893.101 |
863.308 |
813.670 |
|
|
|
|
|
|
|
|
TOTAL |
14186.414 |
12848.298 |
11294.302 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6727.930 |
6078.092 |
5601.393 |
|
|
Capital work-in-progress |
400.909 |
317.536 |
196.408 |
|
|
|
|
|
|
|
|
INVESTMENT |
1426.296 |
1423.674 |
1423.943 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3239.769
|
2869.311
|
2095.264
|
|
|
Sundry Debtors |
4335.209
|
3645.453
|
2603.674
|
|
|
Cash & Bank Balances |
71.709
|
85.889
|
50.323
|
|
|
Other Current Assets |
5.532
|
0.687
|
0.000
|
|
|
Loans & Advances |
1886.451
|
1603.020
|
1188.435
|
|
Total
Current Assets |
9538.670
|
8204.360
|
5937.696
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1638.967
|
1364.718
|
1668.539
|
|
|
Other Current Liabilities |
1954.175
|
1588.154
|
151.806
|
|
|
Provisions |
314.249
|
222.492
|
44.793
|
|
Total
Current Liabilities |
3907.391
|
3175.364
|
1865.138
|
|
|
Net Current Assets |
5631.279
|
5028.996
|
4072.558
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14186.414 |
12848.298 |
11294.302 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21466.352 |
18107.166 |
13338.606 |
|
|
|
Other Income |
180.743 |
43.675 |
27.403 |
|
|
|
TOTAL (A) |
21647.095 |
18150.841 |
13366.009 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10532.281 |
8648.803 |
|
|
|
|
Employee Benefit Expense |
1842.431 |
1589.662 |
|
|
|
|
Other Expenses |
6538.911 |
5827.798 |
|
|
|
|
|
18913.623 |
16066.263 |
|
|
|
|
Changes in Inventories of FG, WIP and Stock-in-Trade |
(398.104) |
(259.919) |
|
|
|
|
TOTAL (B) |
18515.519 |
15806.344 |
11662.735 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3131.576 |
2344.497 |
1703.274 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
922.000 |
356.674 |
149.963 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2209.576 |
1978.823 |
1553.311 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
636.131 |
545.372 |
474.840 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1573.445 |
1442.451 |
1078.471 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
447.458 |
388.194 |
324.186 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1125.987 |
1054.257 |
754.285 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
341.872 |
293.921 |
264.638 |
|
|
|
|
|
|
|
|
|
|
Income
Tax (Paid)/ Refund relating to earlier years |
- |
- |
(4.152) |
|
|
|
Transfer
from Investments Allowance Reserve (utilized) Account |
- |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
294.180 |
262.661 |
84.051 |
|
|
|
Tax on Interim Dividend |
46.705 |
43.645 |
14.285 |
|
|
|
Interim Dividend Payable |
0.000 |
0.000 |
105.064 |
|
|
|
Tax on Interim Dividend Payable |
0.000 |
0.000 |
17.450 |
|
|
|
Transfer to General Reserve |
500.000 |
700.000 |
500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
626.974 |
341.872 |
293.921 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
6458.801 |
4793.483 |
3321.529 |
|
|
|
Claims Received |
0.000 |
0.000 |
0.260 |
|
|
|
Other |
27.528 |
0.000 |
10.513 |
|
|
TOTAL EARNINGS |
6486.329 |
4793.483 |
3332.302 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3480.290 |
3197.677 |
1403.799 |
|
|
|
Components & Spares Parts |
231.545 |
104.101 |
486.752 |
|
|
|
Capital Goods |
521.685 |
379.944 |
92.944 |
|
|
|
Tools Steel, Tools, Gauges etc |
370.443 |
330.955 |
92.250 |
|
|
|
Others |
0.451 |
1.420 |
12.855 |
|
|
TOTAL IMPORTS |
4604.414 |
4014.097 |
2088.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
1.63 |
5.02 |
3.57 |
|
|
|
Diluted |
1.63 |
5.02 |
3.57 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 1st
Quarter |
|
Audited /
UnAudited |
|
|
UnAudited |
|
Net Sales |
|
|
5819.700 |
|
Total Expenditure |
|
|
5212.500 |
|
PBIDT (Excl OI) |
|
|
607.200 |
|
Other Income |
|
|
134.500 |
|
Operating Profit |
|
|
741.700 |
|
Interest |
|
|
124.800 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
616.900 |
|
Depreciation |
|
|
178.000 |
|
Profit Before Tax |
|
|
438.900 |
|
Tax |
|
|
126.500 |
|
Provisions and
contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
312.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.20
|
5.80
|
5.64
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.33
|
7.97
|
8.09
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.67
|
10.10
|
9.35
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.26
|
0.22
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.72
|
1.73
|
1.57
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.44
|
2.58
|
3.18
|
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Construction
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
Yes |
|
Designation
of contact person |
Yes |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
PAN of Proprietor/Partner/Director,
if available |
No |
|
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
External Agency Rating,
if available |
No |
SALES AND PROFITS
The Company recorded total Net Sales and other income of Rs.21647.100 Millions
for the year ended March 31, 2012 as against Rs 18150.800 Millions achieved
during the previous year. The export sale was at Rs 6458.800 Millions as
against Rs 4793.500 Millions in the previous year. The Profit after tax was
higher at Rs 1126.000 Millions as against Rs 1054.300 Millions in the previous
year. The Company continues to be a net foreign exchange earner for the
fifteenth year in succession.
MANAGEMENT
DISCUSSION AND ANALYSIS
Business Overview
Indian gross domestic product and the Index
of Industrial Production registered a growth of 7% (8.6%) and 2.8% (8.2%)
respectively during the financial year 2011-12, reflecting a slower growth of
the Indian economy than in the previous year.
The global economy grew very slowly with emerging economies registering
a slow growth. The
Exports
The
FINANCIAL
PERFORMANCE
Improved market conditions resulted in higher sales in all the units of
the Company. Raw material prices increased steadily during the first half of
the year. Input costs rose across the board, especially of petroleum based
products. Non-availability of power due to scheduled power-cuts up to 40%,
power holidays and unscheduled power outages forced the Company to purchase
power and resort to self generation at higher costs. Wages increased as
dearness allowance increased in line with the cost of living index. High levels
of inflation had a direct impact on wage costs. The Company continued to be
under pressure due to rising manufacturing costs. Freight rates also increased
in line with increase in cost of diesel and other inputs related to the
transportation industry.
The Company continues to adopt Total Productive Maintenance (TPM)
practices in order to achieve a reasonable
control over other operating expenses.
During the year, PBIDT (Profit before interest, foreign exchange
fluctuation, depreciation and tax) was higher at
Rs 3131.600 Millions as against Rs 2344.500 Millions in the previous
year.
Steady rise in demand for the Company’s products resulted in additional
investments in working capital. The Company made substantial investments in
creation of capacities for new products and additional capacities for
manufacture of existing products to meet projected demand from domestic and
international customers. These investments resulted in additional interest
costs. Tight money policies followed by Reserve Bank of
Depreciation was higher at Rs 636.100 Millions (Rs 545.400 Millions) on
account of increased capital expenditure incurred over the recent years.
Profit before tax was higher at Rs 1573.400 Millions (Rs 1442.500
Millions). Profit after tax amounted to Rs 1126.000 Millions (Rs 1054.300
Millions).
FOREIGN
SUBSIDIARIES
Sundram Fasteners (
Sales and other income during the year 2011 amounted to RMB 118.390 million
(Rs 855.966 Millions) as against RMB 86.432 million (Rs 584.283 Millions)
during 2010. The operations resulted in a net profit of RMB 5.010 million (Rs
34.113 Millions) as against a profit of RMB 4.964 million (Rs 33.621 Millions)
in 2010.
The business environment for SFZL’s products appears to be encouraging.
New products for existing customers and addition of new customers will enable
SFZL to post sizable net profits in the coming years. SFZL has retained
certifications according to ISO/TS 16949-2002 and ISO 9000-2000.
The company has so far invested USD 13 million (Rs 568.760 Millions) in
the Equity capital.
German operations are carried out through 100% subsidiary companies viz.
Peiner Umformtechnik GmbH (Peiner), TVS Peiner Services GmbH (TVSP) and PUT
Grundstucks GmbH (PUTG). Peiner manufactures a wide range of standard and
special fasteners catering to the automotive, industrial and construction
sectors. TVSP is engaged in providing warehousing and logistical services. PUTG
owns the land and buildings from where Peiner operates. The Company has
invested Euro 8.724 million (Rs 482.212 Millions) in Equity capital besides
lending Euro 3.5 million (Rs 232.743 Millions) to meet short term requirements.
Revenues during the year 2011 amounted to Euro 66.923 million (Rs
4386.776 Millions) as against Euro 57,407 million (Rs 3458.226 Millions) during
2010. While there has been a vast improvement over the previous year, the
operations resulted in a loss before depreciation and taxes of Euro 2.866
million (Rs -92.538 Millions) as against loss of Euro 0.102 million (Rs -6.208
Millions) during 2010. Loss after taxes amounts to Euro 4.270 million (Rs
-288.191 Millions) during 2011 as against Euro 1.241 million (Rs -74.338
Millions) during 2010.
Uncertain economic conditions prevailing in
The Company has entered into a 50% joint venture with a German partner
to set up a plant for manufacture of fasteners for Wind Energy Generators (WEG)
and has invested Euro 3.0 million by way of equity capital and loans. As the
emphasis on production of clean energy is likely gather pace after the shutdown
of nuclear plants, demand for WEG is likely to increase. The facility located
at Hohenstein in eastern part of
Cramlington Precision Forge Limited (CPFL)
of precision forged components for application in heavy vehicles for
on-highway and off highway applications.
The Company has invested GBP 1.9 million (Rs. 152.314 Millions) in CPFL.
Sales and other income during the year 2011 amounted to GBP 9.345
million (Rs 703.642 Millions) as against GBP 6.235 million (Rs 438.999
Millions) during 2010. CPFL made a net profit of GBP 0.913 million (Rs 72.276
Millions) as against net profit of GBP 0.375 million (Rs 226.580 Millions)
during 2010. CPFL paid dividends totalling GBP 2,40,000 during March 2012.
CPFL generated additional sales through new products introduced in
earlier years. Increased volumes and cost control helped in achieving satisfactory
results during 2011. Orders in the pipeline and development and manufacture of
parts for a large new customer will help further improve capacity utilisation
and the outlook for 2012 is encouraging.
INDIAN
SUBSIDIARIES
Upasana Engineering
Limited
Upasana Engineering Limited (UEL), a 100% subsidiary is engaged in the
manufacture of spokes and nipples, dies and tools, automotive components and
cold extruded components. During the year 2011-12, Sales and other income
increased to Rs 802.603 Millions from Rs 628.274 Millions in the previous year,
an increase of 24%. Domestic Sales increased to Rs 637.401 Millions from Rs
519.051 Millions in the previous year. Export Sales increased to Rs 149.107
Millions from Rs 98.629 Millions. Profit after Tax, after amortisation of
goodwill of Rs 8.500 Millions (2010-11 - Rs 20.000 Millions) amounted to Rs.
39.355 Millions as against a net profit of Rs 13.430 Millions in the previous
year.
UEL’s facility at Hosur for manufacture of cold extruded components has
steadily improved its production and sales. With the introduction of additional
parts and increased demand for existing products, UEL will show substantial
improvement in performance over the next few years.
Sundram Bleistahl
Limited
Sundram Bleistahl Limited (SBL) is engaged in manufacture of sintered
valve guides at its 100% export oriented unit at Hosur, Tamilnadu. Bleistahl
Produktions GmbH and Co KG holds 24%. SBL caters to the needs of Bleistahl
Productions GmbH and Co KG in
The Company has invested Rs 53.200 Millions towards 76% of the Equity
capital of the subsidiary.
FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2012
Rs.in Millions
|
Particulars |
|
30.06.2012 |
|
|
|
|
|
|
|
Net Sales/ Income from Operations |
|
|
5708.500 |
|
1. (b) Other Operating Income |
|
|
220.00 |
|
Total Income
From operations |
|
|
5928.500 |
|
2. Expenditure |
|
|
|
|
a. Cost of Raw Materials consumed |
|
|
2771.400 |
|
b. Changes in inventories of finished goods , work in progress and
stock in trade |
|
|
15.700 |
|
c. Employee benefit expenses |
|
|
514.300 |
|
d. Depreciation and amortisation expense |
|
|
178.000 |
|
e. Stores and Tools consumed |
|
|
623.800 |
|
f. Other
Expenditure |
|
|
1132.200 |
|
Total
Expenditure |
|
|
5235.400 |
|
3. Profit from Operations
before Other Income, Interest and Exceptional Items (1-2) |
|
|
693.100 |
|
4. Other Income |
|
|
25.700 |
|
5. Profit before Interest and Tax
|
|
|
718.800 |
|
6. Interest |
|
|
279.900 |
|
7. Profit from Ordinary
Activities before Tax and exceptional
items |
|
|
438.900 |
|
8. Exceptional items |
|
|
- |
|
9. Profit from Ordinary
Activities before Tax but before
exceptional items |
|
|
438.900 |
|
10. Tax Expenses |
|
|
126.500 |
|
11. Net profit/(loss) for the
period |
|
|
312.400 |
|
12. Paid-up Equity Share Capital (face value Rs.2 per share) |
|
|
|
|
13. Reserves excluding revaluation reserve as per balance sheet of
previous accounting year |
|
|
210.100 |
|
14. Earning Per Share |
|
|
|
|
a. Basic and b. Diluted |
|
|
1.49 |
|
15. Public shareholding |
|
|
|
|
- No. of shares |
|
|
106043090 |
|
- % of holding (to total shareholding) |
|
|
50.47 |
|
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered |
|
|
|
|
-Number of Shares |
|
|
- |
|
-% of Shares (As a % of the total Shareholding of Promoter and Promoter
Group) |
|
|
- |
|
-% of Shares (as a % of the total share capital of the Company) |
|
|
- |
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
|
|
104085280 |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
|
|
100.00 |
|
-% of Shares (as a % of the total share capital of the Company) |
|
|
49.53 |
|
INVESTOR COMPLAINTS |
30.06.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
Disposed if during the quarter |
3 |
|
Remaining unresolved the end of the quarter |
Nil |
Note:
1. The above financial results were reviewed and recommended by the audit committee and thereafter approved by the Board Directors at its meeting held on 10.08.2012. As required under clause 41 of the listing agreement, Limited review of the above mentioned results has been completed by the auditors and the report of the company and the report of the same has been placed before the board.
2. Sales for the quarter ended 30th june 2012, includes exports of Rs.1881.000 Millions (last year same quarter Rs. 1489.200 Millions) other operating income includes foreign exchange gains of Rs. 108.800 Millions (Last year same quarter Rs.6.400 Millions)
3. Second Interim dividend of Re.0.80 (80%) per share for the year ended 31st march 2012, was disbursed on 15th June 2012
4. The company operates in only one segment
5. Previous period figures has been re – grouped/re –classified, where necessary. The figures for qurter ended 31st march 2012 are the balancing figures between the audited figures for the financial year ended 31st march 2012 and the published year to date figures up to nine months ended 31st December 2011
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2012 (Rs. in millions) |
31.03.2011 (Rs. in millions) |
|
On letters of guarantee The Company has given guarantees to fulfill various obligations of
Cramlington Precision Forge Limited, UK and Sundram Fasteners (Zhejiang) Limited,
People’s Republic of China, whollyowned subsidiaries of the Company the
amount of which is to the extent of non-fulfilment of obligations of the
subsidiaries which is not ascertainable. |
227.600 |
147.472 |
|
On letters of credit |
65.952 |
17.188 |
|
On guarantee issued to Housing Development Finance Corporation on behalf of employees |
0.170 |
0.601 |
|
On partly paid shares of the Adyar Property Holding Company Limited |
0.001 |
0.001 |
|
Estimated contingent liability for stamp duty in respect of leased land at Uttarkhand |
0.000 |
0.362 |
FIXED ASSETS
v
Aircraft
v
Land
v
Buildings
v
Plant and Machinery
v
Furniture, Fixtures and Office Equipments
v
Vehicles
v
Technical Know-how
Profile
Their Company
Sundram Fasteners Limited is a part of the US $5 billion TVS Group,
headquartered in
The product range consists of high-tensile fasteners, powder metal components,
cold extruded parts, hot forged components, radiator caps, automotive pumps,
gear shifters, gears and couplings, hubs and shafts, tappets and iron powder.
Over the years, the Company has acquired cutting-edge technological
competencies in forging, metal forming, close-tolerance machining, heat
treatment, surface finishing and assembly.
Manufacturing locations are supported by engineering and design
personnel working on new product design and development. Understanding the
global nature of business and the need to provide quality products on “just in
time” basis to customers, the company has established supply chain logistics
networks spanning several continents.
At Sundram Fasteners, growth is a natural outcome of total adherence to
three core operating principles: customer orientation, total quality and
ethical business practices.
PRESS RELEASE
Key Highlights
·
Stand alone revenues for Q1 FY12-13 grew by 14% over Q1 FY 11-12 to
reach Rs. 5950.000 Millions
·
Exports for quarter ended recorded an impressive
growth 05 26% to Rs. 1880.000 Millions
Sales and other operating: income increased by 14% to Rs. 5928.500 Millions
fat the quarter ended June 30,
2012 as against Rs. 5218.100 Millions achieved during the fame period in the previous year.
Export sales for the period was Rs. 1881.000 Millions
Rs, 1489.200 Millions an increase of 26%. Domestic sales, net of
excise duties, was at Rs. 3827.500 Millions (Us. 3619.000 Millions)
Operating expenses were at Rs. 5057.400
Millions (Rs. 4451.600 Millions).
The operating margin was under
pressure due to higher cost of inputs and increase in employee costs arising
out of tang term wage settlement in a major division. Power cost has increased substantially due to nun availability of required
quantum and quality of power besides increase
in power tariff and other additional vies and usage of captive power.
Gross Profit before interest, depreciation and provision for taxation
increased by 16% to Rs.896.900 Millions
during the period (Rs. 776.300 Millions)
Interest for the quarter amounted to Rs. 124.800 Millions {Rs.
79.000 Millions). Foreign exchange Losses amounted to Rs. 155.100
Millions as against tosses of Rs. 44.000 Millins last year. Other operating income for the period
was Rs. 220.000 Millions (Rs. 109.900 Millions)
which includes gains f r m foreign exchange on sales of Rs. 108.800 Millions (Rs, 6.400 Millions). Thus, net foreign
exchange losses amounted to Rs. 36.300 Millions
(Rs. 37.600 Millions).
Depreciation for the quarter was Ro.
178.000 mores (Rs. 153.000
Millions). The provision for taxes was at Rs.
126.500 Millions (Rs. 151.000 Millions).
The net profit after tax
was at Rs.312.400 Millions (Us. 349.300 Millions), Earnings per share
(on face value of Re 1 per
share) for the quarter amounted to Rs. 14.900
Millions (Rs, 16.600 Millions)
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 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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.78 |
|
|
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.67.79 |
INFORMATION DETAILS
|
|
|
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.