MIRA
INFORM REPORT
|
Report Date : |
08.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
RASANDIK ENGINEERING INDUSTRIES INDIA LIMITED |
|
|
|
|
Registered
Office : |
14, ROJ-KA-MEO Industrial Area, Sohana, District Gurgaon – 122103,
Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
10.01.1984 |
|
|
|
|
Com. Reg. No.: |
05-032293 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 47.250 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74210HR1984PLC032293 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKR02241B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturers of Steel Fabrication and
components and spares. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1400000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a established company having satisfactory track record.
There appears huge loss in the current year recorded by the company. However,
networth appears to be strong. Trade relation are reported to be fair. Business
is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealings at usual trade
terms and condition. |
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
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
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.
LOCATIONS
|
Registered Office : |
14, Roj-Ka-Meo Industrial Area, Sohana, District Gurgaon – 122103, |
|
Tel. No.: |
91-1272-2362646 / 2362647 / 2363245-46 |
|
Fax No.: |
91-1272-2362107 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
C 4 and 5, 1st Floor, C Block, Commercial Center, Paschimi
Marg, Vasant Vihar, New Delhi – 110057, India |
|
Tel. No.: |
91-11-26149276/ 26149277 |
|
Fax No.: |
91-11-26154090 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Sohna Plant 13,14 Roz-Ka-Meo, Industrial Area, Sohna, District- Gurgaon, Haryana –
122103, India |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Tools
and Dies Plant 1, Roz-Ka-Meo Industrial Area, Sohna,
District- Gurgaon, Haryana – 122103, India |
|
E-Mail : |
|
|
|
|
|
Factory 3 : |
Surajpur Plant A-1/2-2 and A-1/2-3, Site B, Surajpur Industrial Area, District Gautambudh Nagar, Uttar Pradesh - 201 306, India |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
Pune Plant E 82 and 83, Ranjangaon
industrial Area, Ranjangaon, District Pune, Maharashtra, India |
|
E-Mail : |
|
|
|
|
|
Factory 5 : |
Mysore Plant Plot No. 45 and 48, KIADB Industrial
Area, Nanjangud, District Mysore, India |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Suresh Chandra Kapoor |
|
Designation : |
Chairman |
|
Date of Birth : |
10.06.1929 |
|
Qualification : |
Engineering Graduate |
|
Date of Appointment : |
13.06.1992 |
|
|
|
|
Name : |
Mr. Rajiv Kapoor |
|
Designation : |
Managing Director |
|
Date of Birth : |
04.11.1955 |
|
Qualification : |
B. Tech. (Mechanical) IIT–Delhi, Graduated in 1977 |
|
Date of Appointment : |
10.01.1984 |
|
|
|
|
Name : |
Ms. Deepika Kapoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K S V S Manian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shyam S Sethi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A R Halasyam |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gorav Arora |
|
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 |
|
|
|
|
|
|
|
|
1083547 |
22.93 |
|
|
1465358 |
31.01 |
|
|
0 |
0.00 |
|
|
2548905 |
53.95 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2548905 |
53.95 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3100 |
0.07 |
|
|
3100 |
0.07 |
|
|
|
|
|
|
381669 |
8.08 |
|
|
|
|
|
|
1052763 |
22.28 |
|
|
585584 |
12.39 |
|
|
152979 |
3.24 |
|
|
109028 |
2.31 |
|
|
66 |
0.00 |
|
Hindu Undivided
Families |
43885 |
0.93 |
|
|
2172995 |
45.99 |
|
Total Public shareholding (B) |
2176095 |
46.05 |
|
Total (A)+(B) |
4725000 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
4725000 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Steel Fabrication and components
and spares. |
||||||
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|
|
||||||
|
Products : |
|
PRODUCTION STATUS AS ON (31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Steel Fabrication |
M.T. |
N.A |
58230 |
50,374 |
|
|
|
|
|
|
GENERAL INFORMATION
|
Customers : |
Ř Maruti Suzuki Ř Tata Motors Ř Fiat Ř Honda Ř GM Ř HM Ř TVS Ř LCV Ř New Holland Ř Claas Ř Mahindra Ř Toyota Ř Hero Motors Ř Force Ř Ashok Leyland Ř Tractors |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
Not Available |
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|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ř
Oriental Bank of Commerce Ř
ICICI Bank Ř
Kotak Mahindra Bank Ř
Canara Bank Ř
State Bank of India Ř HDFC Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Awatar and Company Chartered Accountants |
|
Address : |
1203, Rohit House,3, Tolstoy Marg, New Delhi - 110 001, India |
|
|
|
|
Associates : |
Ř
Kapoor and Budhwar Associate Private Limited Ř Kapoor and
Associates Consultants Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4725000 |
Equity Share |
Rs.10/- each |
Rs. 47.250
Millions |
|
|
|
|
|
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 |
47.250 |
47.250 |
47.250 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
309.195 |
288.693 |
240.132 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
356.445 |
335.943 |
287.382 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
856.874 |
864.677 |
1027.687 |
|
|
2] Unsecured Loans |
587.455 |
609.490 |
693.679 |
|
|
TOTAL BORROWING |
1444.329 |
1474.167 |
1721.366 |
|
|
DEFERRED TAX LIABILITIES |
162.699 |
150.175 |
143.116 |
|
|
DEFERRED CREDITS AGAINST |
0.000 |
0.382 |
0.841 |
|
|
|
|
|
|
|
|
TOTAL |
1963.473 |
1960.667 |
2152.705 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1546.489 |
1519.510 |
1503.241 |
|
|
Capital work-in-progress |
367.422 |
449.503 |
549.773 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
19.892 |
19.892 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
317.627
|
375.660 |
366.557
|
|
|
Sundry Debtors |
264.217
|
230.375 |
216.745
|
|
|
Cash & Bank Balances |
89.487
|
44.618 |
47.651
|
|
|
Other Current Assets |
21.785
|
33.623 |
34.392
|
|
|
Loans & Advances |
130.618
|
174.485 |
191.772
|
|
Total
Current Assets |
823.734
|
858.761 |
857.117 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
555.048
|
601.959 |
548.613 |
|
|
Other Current Liabilities |
197.274
|
262.333 |
202.466
|
|
|
Provisions |
24.110
|
26.571 |
29.082
|
|
Total
Current Liabilities |
776.432
|
890.863 |
780.161
|
|
|
Net Current Assets |
47.302
|
(32.102) |
76.956
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
2.260 |
3.864 |
2.843 |
|
|
|
|
|
|
|
|
TOTAL |
1963.473 |
1960.667 |
2152.705 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2677.794 |
2302.002 |
1976.697 |
|
|
|
Other Income |
18.496 |
9.694 |
11.447 |
|
|
|
Exchange Fluctuation |
(0.762) |
3.794 |
1.286 |
|
|
|
TOTAL (A) |
2695.528 |
2315.490 |
1989.430 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
2318.490 |
1972.401 |
1764.038 |
|
|
|
Cost of Goods Traded |
0.000 |
0.000 |
3.565 |
|
|
|
(Increase)/Decrease in Stock of finished goods and work in process |
38.903 |
31.532 |
(52.404) |
|
|
|
TOTAL (B) |
2357.393 |
2003.933 |
1715.199 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
338.135 |
311.557 |
274.231 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
169.772 |
128.986 |
139.918 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
168.363 |
182.571 |
134.313 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
124.791 |
114.694 |
107.333 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
43.572 |
67.877 |
26.980 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
23.070 |
19.316 |
34.268 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
20.502 |
48.561 |
(7.288) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
201.351 |
152.790 |
160.078 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
221.853 |
201.351 |
152.790 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
18.887 |
30.128 |
52.287 |
|
|
TOTAL EARNINGS |
18.887 |
30.128 |
52.287 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
81.521 |
104.561 |
62.728 |
|
|
|
Stores & Spares |
1.194 |
0.792 |
41.433 |
|
|
|
Plant & Machinery |
14.507 |
72.045 |
18.048 |
|
|
TOTAL IMPORTS |
97.222 |
177.398 |
122.209 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.34 |
10.28 |
(1.54) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
5th Quarter |
|
Sales Turnover |
540.610 |
526.790 |
525.420 |
625.070 |
603.250 |
|
Total Expenditure |
500.710 |
481.570 |
507.760 |
556.840 |
513.300 |
|
PBIDT (Excl
OI) |
39.900 |
45.220 |
17.660 |
68.230 |
89.950 |
|
Other Income |
1.570 |
1.710 |
3.680 |
0.730 |
1.770 |
|
Operating
Profit |
41.470 |
46.930 |
21.340 |
68.960 |
91.720 |
|
Interest |
40.830 |
42.260 |
45.870 |
47.640 |
38.720 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
0.640 |
4.670 |
-24.530 |
21.320 |
53.000 |
|
Depreciation |
31.280 |
31.590 |
32.900 |
31.510 |
35.490 |
|
Profit
Before Tax |
-30.640 |
-26.920 |
-57.430 |
-10.190 |
17.500 |
|
Tax |
0.830 |
0.730 |
0.120 |
11.740 |
5.780 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
-31.480 |
-27.660 |
-57.540 |
-21.930 |
11.720 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
-31.480 |
-27.660 |
-57.540 |
-21.930 |
11.720 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.76 |
2.10 |
(0.37) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.63 |
2.95 |
1.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.84 |
2.85 |
1.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.20 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.23 |
7.04 |
8.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.06 |
0.96 |
1.10 |
LOCAL AGENCY FURTHER INFORMATIO
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
OPERATING RESULTS
During the year,
the overall performance of the Company showed an improvement as compared to the
previous year. The total income (gross) of the company for the year ended 31st March,
2011 was Rs. 2999.010 millions as compared to Rs. 2547.380 millions in the
previous year.
The profit before
depreciation, interest, taxation is increased to Rs. 338.13 millions from Rs.
311.56 millions in the previous year. The net profit after depreciation and
interest is Rs. 43.570 millions as compared to Rs. 67.88 millions in the
previous year. The profit after tax is Rs. 20.500 millions in comparison to
loss of Rs. 48.56 millions in previous year.
SUBSIDIARY COMPANY
The Company has on
March 15, 2011 divested its 100 percent stake in its wholly owned subsidiary
i.e. M/s. Rasandik Auto Components Private Limited (RACPL) at Rs. 16 per share.
The Book Value of RACPL as on 31st March 2010 (as per last Audited
Balance Sheet) was Rs. 15.27 per Share. The investment in shares of RACPL was
made on September 29, 2006 at Rs. 10 per share.
MANAGEMENT DISCUSSION AND ANALYSIS
Driven by global
competition and the recent shift in focus of global automobile manufacturers,
business rules are changing and liberalisation has had sweeping ramifications
for the Indian Auto industry. The Indian auto component sector has been growing
at 20% per annum since 2000 and is projected to maintain the high-growth phase
of 15-20% till 2015.
Indian Auto
Industry
The automotive
sector is one of the key segments of the economy having extensive forward and
backward linkages with other key segments of the economy. It contributes about
4 per cent in India’s Gross Domestic Product (GDP) and 5 per cent in India’s
industrial production. This sector has generated about 4.5 lakh of direct
employment and about one crore of indirect employment. India holds huge
potential in the automobile sector including the automobile component sector
owing to its technological, cost and manpower advantage. India has a well
developed, globally competitive Auto Ancillary Industry and established
automobile testing and R&D centers. India enjoys natural advantage and is
among the lowest cost producers of steel in the world.
Indian Auto
Industry is the
Ř Largest Three
Wheeler Market in the World
Ř Second largest Two
Wheeler Market in the World
Ř Fourth largest
Passenger Vehicle Market in Asia
Ř Fourth largest
Tractor Market in the World
Ř Fifth largest
Commercial Vehicle Market in the World
Ř India is the second
Largest Producer of Motorcycles in the world (5.2 Millions) after China which
has a production volume of 12 Millions.
The Future Growth
Drivers
Ř Higher GDP Growth
Ř India’s huge
geographic spread- Mass Transport System
Ř Increasing Road
Development
Ř Increasing
disposable Income with the service sector
Ř Cheaper (declining
interest rates) & easier finance Schemes
Ř Replacement of
aging four wheelers
Ř Graduating from
two wheelers to four wheelers
Ř Increasing
dispensable income of rural agri sector
Ř Growing Concept of
Second Vehicle in Urban Areas
Cost Advantage in
Manpower
There is huge
opportunity for Indian automobile and auto ancillary manufacturers due to low
cost advantage primarily because of vast availability of low cost high skilled
manpower. Average wage rates in India auto industry are around US $ 8 per hour
compared to US $ 20 per hour in the developed markets. Indian Manufacturers
spend 3-15% of sales on labour cost whereas global companies spend 20-40%. Cost
of automotive design in Europe ranges as high as $800 per hour and even higher
in the US, costs are as low as $60 per hour in India for equivalent quality.
According to the
“World Competitiveness Yearbook” published by the International Institute for
Management Development, India ranks first in the availability of engineers and
second in the availability of skilled labour. India has the second largest pool
of scientific talent in the world adding 0.14 million engineers and 1 million
polytechnic diploma holders every year.
Strong Skills in
Design, Manufacturing Systems and R & D
The ability to
provide design services (concept and system design, engineering design and
prototyping) is an important value adds to the customer and significantly
enhances positioning as a solutions provider. Complex products like automobiles
comprise several assemblies, sub-assemblies and components and require several
engineers who may be working on different components or sub-systems in
parallel. A high degree of collaboration and mechanisms for design conflict
resolution are necessary to achieve compatibility between different sub-systems
and overall optimization in terms of cost, quality and lead-time. The success
of M&M’s Scorpio and Tata Motors Indica clearly bring out India’s
capabilities in these areas.
Outsourcing
India is well on
its way to become an outsourcing hub for global auto manufacturers and the
country stands a good chance against China Already 15 global car makers
including GM, Ford, Daimler Chrysler, Mercedes-Benz, Audi, Isuzu and Nissan
have set up outsourcing offices in the country, with a combined budget of
approximately $1.5 billion, industry sources say. Leading component makers like
Delphi, Visteon and Caterpillar, too, have found India their best bet. Global
auto-makers are increasingly turning to India for sourcing a wide range of
needs that even include designing models meant only for global markets.
According to the Auto Components Association of India, outsourcing has been
triggered by the overall economic slowdown and large-scale bankruptcies in the
global auto sector. And as global giants continue losing money, cost pressures
are forcing them to opt for sourcing bases in developing countries.
Capabilities
Indian auto
companies have achieved a high level of productivity by embracing Japanese and
American best practices and technology and modify them to suit Indian
conditions with exceptional results. Capabilities of successful niche Component
Manufacturers are
as follows:
Ř Strong R&D
focus on specific productions/technology
Ř Customized
solution
Ř Innovation
management
Ř Domestic
manufacturing footprints
Ř Operating smaller
plants efficiently
Ř IT systems focused
mainly at product design and development
Ř Raising risk
capital
Ř Cash flow
management Managing risk of launching innovative products
Ř Innovative
recruitment techniques to attract talent
Ř Talent retention
OUTLOOK:
There is a
perceptive exuberance in the industry and growth estimates indicate a booming
industry. The factors that will drive growth for the auto component industry
are:
Short Term
Ř Infrastructure
development ($500 billion in the next 5-6 years)
Ř Low penetration
rate of vehicles (8/1000)
Ř Easy access to
capital although interest rate is high
Long Term
Ř According to
McKinsey, the middle class will grow from 50 million to 550 million by 2025
Ř Continuously
Improving Quality resulting in Export of Automobiles and Auto components
Ř Low cost of
Skilled Manpower & Rapidly growing Design Capability
PRODUCT ANALYSIS AND REVIEW
The company caters to the following Product Sectors:
Ř Cars
Ř Trucks
Ř Tractors
Ř Two Wheelers
Ř Three Wheeler
Ř White Goods
Ř Die and Tools
Ř TWB
OPERATING RESULTS
AND PROFITS
Strong economic growth,
low interest rates and continued focus on several measures undertaken by the
Company like new product introductions, cost cutting and quality and process
improvements have all resulted in the Company achieving a satisfactory
performance.
Finance Charges: The Finance
Charges were Rs.169.77 millions in the year 2010-11 as against Rs.128.99
millions in the year 2009-10.
Depreciation: Depreciation was
at Rs.124.79 millions in comparison to Rs. 114.69 millions in previous year.
Tax: Provision for current
year taxation is Rs. 21.22 millions as compared to Rs. 19.32 millions in the
previous year.
Net Profit: Net profit after
tax for the year 2010-11 is increased to Rs. 43.57 millions as compared to
profit of Rs.
48.56 millions in the previous year.
STATEMENT OF
AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH,
2012
(Rs. in Millions)
|
Particular |
Quarter Ended |
Year Ended |
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Audited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
623.194 |
525.418 |
2216.006 |
|
Other Operating Income |
1.874 |
0.138 |
2.491 |
|
Total Income from
operations (net) |
625.068 |
525.555 |
2218.497 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of Materials consumed |
373.974 |
413.358 |
1546.815 |
|
(b) Purchase of stock-in-trade |
0.000 |
0.000 |
0.000 |
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(9.803) |
(6.716) |
(13.686) |
|
(d) Employee benefit expenses |
47.203 |
42.187 |
189.096 |
|
(e) Depreciation and amortization expenses |
31.507 |
32.897 |
127.278 |
|
(f) Other Expenses |
145.468 |
63.104 |
341.153 |
|
Total Expenses |
588.350 |
544.830 |
2190.657 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
36.718 |
(19.274) |
27.840 |
|
Other Income |
0.732 |
3.543 |
7.071 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
37.450 |
(15.731) |
34.911 |
|
Finance costs |
47.641 |
41.698 |
160.104 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
(10.191) |
(57.430) |
(125.193) |
|
Exceptional
item |
-- |
-- |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
11.720 |
0.115 |
13.402 |
|
Tax Expenses |
|
|
|
|
- Current Tax |
-- |
-- |
-- |
|
- Deferred
Tax Liability/ Assets |
11.720 |
0.115 |
13.402 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
(21.911) |
(57.545) |
(138.595) |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
(21.911) |
(57.545) |
(138.595) |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
47.250 |
47.250 |
47.250 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
170.600 |
|
Earnings per
share (before extraordinary items) (of Rs. 10/-
each) (not annualized) -
Basic |
(4.64) |
(12.18) |
(29.33) |
|
- Diluted |
(4.64) |
(12.18) |
(29.33) |
|
Earnings per
share (after extraordinary items) (of Rs. 10/-
each) (not annualized) - Basic |
(4.64) |
(12.18) |
(29.33) |
|
- Diluted |
(4.64) |
(12.18) |
(29.33) |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of
Shares |
2176054 |
2173554 |
2176054 |
|
Percentage of Shareholding |
46.05% |
46.00% |
46.05% |
|
2. 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) |
-- |
-- |
-- |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
2548946 |
2551446 |
2548946 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100% |
100% |
100% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
53.95% |
54.00% |
53.95% |
|
|
Particulars |
Quarter Ended 31st
March 2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed of during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1) The above financial results were reviewed by the Audit Committee and
approved by the Board of Directors in its meeting held on 30th May,
2012.
2) The figures of last quarter are the balancing figures between audited
figures in respect of full financial year and the published year to date
figures upto the third quarter of the current financial year.
3) As per terms of issue of Foreign Currency Convertible Bonds, the bonds
have matured on 8th April, 2009 and are due for payment.
4) The Board of Directors has not recommended dividend.
5) The figures of the previous periods/ year have been regrouped/
rearranged/ recast wherever necessary to conform to this year/ quarter’s
classification.
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
Particulars |
31.03.2012 |
|
|
A. EQUITY AND LIABILITIES |
Audited |
|
|
1.
Shareholders Funds |
|
|
|
a] Share Capital |
47.250 |
|
|
b] Reserves and Surplus |
170.600 |
|
|
Sub-total –
Shareholders’ funds |
217.850 |
|
|
|
|
|
|
2. Share
application money pending allotment |
|
|
|
|
|
|
|
3. Minority
Interest |
|
|
|
|
|
|
|
4. Non-current
Liabilities |
|
|
|
a] Long term Borrowings |
374.277 |
|
|
b] Deferred Tax Liabilities |
176.101 |
|
|
c] Other long term liabilities |
186.090 |
|
|
d] Long term provisions |
16.109 |
|
|
Sub-total -
Non-current Liabilities |
752.578 |
|
|
|
|
|
|
5. Current Liabilities |
|
|
|
a] Short term Borrowings |
473.457 |
|
|
b] Trade Payables |
462.818 |
|
|
c] Other Current Liabilities |
923.438 |
|
|
d] Short Term Provision |
4.315 |
|
|
Sub-total - Current Liabilities |
1864.027 |
|
|
|
|
|
|
TOTAL - EQUITY
AND LIABILITIES |
2834.455 |
|
|
|
|
|
|
B ASSETS |
|
|
|
1. Non-current assets |
|
|
|
a] Fixed assets |
2052.886 |
|
|
b] long Term loans and Advances |
45.997 |
|
|
c] Other non-current assets |
1.149 |
|
|
Sub-total – Non- current assets |
2100.032 |
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
|
Current Investments |
|
|
|
Inventories |
353.041
|
|
|
Trade Receivables |
245.690
|
|
|
Cash & Bank Balances |
39.804
|
|
|
Short Term loans and advances |
75.835
|
|
|
Other Current Assets |
20.053
|
|
Sub-total – Current Assets |
734.423
|
|
|
|
|
|
|
TOTAL - ASSETS |
2834.455 |
|
CONTINGENT
LIABILITIES NOT PROVIDED FOR: -
a) Letters of credit
opened by Bank – Rs 264.643 Millions (Previous Year Rs. 188.912 Millions)
b) Bank guarantees
given by the bank on behalf of Company - Rs. 0.585 Million (Previous year - Rs.
6.105 Millions)
c) Guarantees
given by the Company on behalf of M/s Rasandik Auto Components Private Limited
- Rs 63.000 Millions (Previous Year Rs. 63.000 Millions)
d) Export
obligation under EPCG License- Rs 8.862 Millions (Previous Year Rs. 11.223
Millions)
e) Guarantees given by the Company on behalf of loan of employees- Rs.
0.502 Millions (Previous Year Rs. 0.650 Millions)
FIXED ASSETS
v
v
v
Factory Buildings
v
Administrative Buildings
v
Plant and Machinery
v
Dies, Jigs and Fixtures
v
Furniture and Fixtures
v
Computers and Other Peripherals
v
Vehicles
v
Utilities
v
Depreciation Capitalized Capital Work in Progress
v
Advances against Capital Expenditure
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 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. 55.52 |
|
|
1 |
Rs. 88.49 |
|
Euro |
1 |
Rs. 70.20 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
42 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.