MIRA INFORM REPORT

 

 

Report Date :

06.04.2013

 

IDENTIFICATION DETAILS

 

Name :

GKN SINTER METALS PRIVATE LIMITED (w.e.f. 04.06.2009)

 

 

Formerly Known As :

GKN SINTER METALS LIMITED

 

 

Registered Office :

146, Mumbai- Pune Road, Pimpri, Pune – 411018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

06.05.1960

 

 

Com. Reg. No.:

11-018827

 

 

Capital Investment / Paid-up Capital :

Rs.22.558 Millions

 

 

CIN No.:

[Company Identification No.]

U29130PN1960PLC018827

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEM00089F

 

 

PAN No.:

[Permanent Account No.]

AAACM4432H

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing of Sintered Bearings and Parts.

 

 

No. of Employees :

900 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 6200000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of GKN Sinter Group.

 

It is a well established and reputed company having a fine track record. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and 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)

India

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/ Administrative/

Factory/ Sales Office :

146, Mumbai- Pune Road, Pimpri, Pune – 411018, Maharashtra, India

Tel. No.:

91-20-27426261/ 66145231

Fax No.:

91-20-27426274

E-Mail :

dilip.rathi@gknsintermetals.com

v.ramaswamy@gknsintermetals.com

iut@th.net

richard.wood@gknsintermetals.com

Website :

http://www.gknsintermetals.com  

http://www.gkn.com

Location :

Owned

 

 

Factory :

C-18, MIDC, Industrial Area, Ahmednagar – 414111, Maharashtra, India

 

 

DIRECTORS

 

(AS ON 25.09.2012)

 

Name :

Mr. Dayasagar Gurudittaram Mrig

Designation :

Director

Address :

B-2, Devlink Apartment, Link Road, Chinchwad, Pune – 411033, Maharashtra, India

Date of Birth/ Age:

10.02.1949

Date of Appointment :

11.05.2007

DIN No.:

01754388

 

 

Name :

Mr. Hemant Charudatta Nighojkar

Designation :

Managing director

Address :

Flat - Pl/303, Oxford Premium, Oxford Village, Wanowrie, Pune – 411040, Maharashtra, India

Date of Birth/ Age:

15.08.1961

Date of Appointment :

05.05.2008

DIN No.:

02252423

 

 

Name :

Peter Moelgg

Designation :

Director

Address :

Via Peinten, Brunico Bruneck-39031, Italy

Date of Birth/Age :

08.09.1959

Date of Appointment :

04.09.2009

DIN No.:

02424929

 

 

Name :

Mr. Richard William Wood

Designation :

Additional Director

Address :

Saxon House, Main Road, Moreton Paddox Moreton Morrel, Warwick CV359BT

Date of Birth/ Age:

28.02.1969

Date of Appointment :

19.12.2012

DIN No.:

06456692

 

 

KEY EXECUTIVES

 

Name :

Mr. Viswanathan Pichumani Ramaswamy

Designation :

Company Secretary

Address :

F/40, Shriram Nagar, D.P. Road, Aundh, Pune - 411 007, Maharashtra, India

Date of Appointment :

05.05.2008

PAN No.:

AAHPR7135E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 25.09.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

GKN Sinter Metals Holdings Limited, England

 

2255842

GKN Sinter Metals Holdings Limited, England and GKN International Trading (Holdings) Limited

 

1

GKN Sinter Metals Holdings Limited, England and GKN United Kingdom PLC

 

1

 

 

 

Total

 

 

2255844

 

 

(AS ON 29.09.2012)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Sintered Bearings and Parts.

 

 

Products :

Products Description

Item Code No.

 

Sintered Bushes

848300000

Sintered Parts-Motor Vehicle

870800000

Copper Powder

740610000

 

 

GENERAL INFORMATION

 

No. of Employees :

900 (Approximately)

 

 

Bankers :

·         HSBC Bank

Pimpri Branch, Pune, Maharashtra, India

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

5th Floor, Suit No 8, Airport Road, Yerwada, Pune – 411006, Maharashtra, India

PAN No.:

AAEFP3641G

 

 

Ultimate Holding Company :

·         GKN Plc, UK

 

 

Holding Company :

·         GKN Sinter Metals Holdings Limited, UK

 

 

Fellow Subsidiary:

·         GKN Holdings Plc, UK

·         A.P. Newall and Company, UK

·         Hoeganaes Corporation, USA

·         GKN Sinter Metals Engg., Redevormald, Germany

·         Hoeganaes Europe S.A., South Africa

·         GKN Sinter Metals AB, Sweden, UK

·         GKN Sinter Metals Gmbh Bonn, Germany

·         GKN Sinter Metals GmbH, Bad Bruckenau, Germany

·         GKN Sinter Metals Van Wert, USA

·         GKN Sinter Metals, Brazil

·         GKN Group Services Limited - Redditch (Great Britain)

·         GKN Sinter Metals, Emporium USA

·         GKN Driveline (India) Limited , India

·         GKN Driveline Japan Limited, Japan

 

 

Other Related Parties :

·         A.P. Newall and Company, United Kingdom

·         GKN Holdings Plc, United Kingdom

 

 

CAPITAL STRUCTURE

 

(AS ON 25.09.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000000

Equity Shares

Rs.10/- each

Rs.30.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2255844

Equity Shares

Rs.10/- each

Rs.22.558 Millions

 

 

 

 

 

 

 

 

 

 

 

 


 

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

22.558

22.558

22.558

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1516.253

1245.035

993.025

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1538.811

1267.593

1015.583

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

220.000

TOTAL BORROWING

0.000

0.000

220.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1538.811

1267.593

1235.583

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

708.928

660.157

640.711

Capital work-in-progress

118.729

15.323

54.621

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

14.439

8.606

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

437.414
421.602

382.089

 

Sundry Debtors

555.208
482.664

406.003

 

Cash & Bank Balances

257.773
135.115

153.503

 

Other Current Assets

1.037
0.031

0.463

 

Loans & Advances

295.927
253.663

222.541

Total Current Assets

1547.359
1293.075

1164.599

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

661.635
536.505

514.076

 

Other Current Liabilities

68.862
74.349

10.290

 

Provisions

120.147
98.714

99.982

Total Current Liabilities

850.644
709.568

624.348

Net Current Assets

696.715
583.507

540.251

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1538.811

1267.593

1235.583

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

3800.900

3301.600

2413.600

 

 

Other Income

NA

43.400

25.300

 

 

TOTAL                                    

NA

3345.000

2438.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

2812.000

2137.100

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

NA

533.000

301.800

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

NA

14.100

31.600

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

NA

518.900

270.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

NA

164.900

109.200

 

 

 

 

 

 

PROFIT BEFORE PRIOR PERIOD EXPENSES AND TAX

NA

354.000

160.900

 

 

 

 

 

 

PRIOR PERIOD EXPENSES

NA

0.000

18.200

 

 

 

 

 

 

PROFIT BEFORE TAX                           

405.400

354.000

142.700

 

 

 

 

 

Less

TAX                                                                 

134.200

102.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX                

271.200

252.000

142.700

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

NA

NA

195.942

 

 

Contribution received from foreign customers towards development of tools (on receipt basis)

NA

NA

0.000

 

TOTAL EARNINGS

NA

NA

195.942

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

NA

133.480

 

 

Stores & Spares

NA

NA

35.931

 

 

Capital Goods

NA

NA

28.819

 

TOTAL IMPORTS

NA

NA

198.230

 

 

 

 

 

 

Earnings Per Share (Rs.)

120.22

111.71

63.27

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

NA
7.53

5.85

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

10.67
10.72

5.91

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

17.97
18.12

7.90

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.26
0.28

0.14

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00
0.00

0.22

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.82
1.82

1.87

 


 

LOCAL AGENCY FURTHER INFORMATION

 

 

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

Yes

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

No

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

No

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

 

CONTINGENT LIABILITY

 

i) Excise duty claims against the Company not acknowledged as debts amounts to Rs. 38.294 Millions  [Previous year Rs. 21.416 Millions], excluding penalties, if any, relating to penalty proceedings, since the precedence indicate that the probability of levy is remote. The timing and the amount of cash flows will be determined only on settlement of the respective cases.

 

ii) The Company regularly purchases EPCG licenses to avail customs duty benefits, the obligation is to export eight times of duty saved. The full export obligation for the open licenses as at March 31, 2011 was Rs. 260.737 Millions (previous year Rs. 252.939 Millions). Contingent liability to the extent the obligation has not been met as at March 31, 2011 was Rs. 3.706 Millions (previous year Rs. 89.077 Millions). The open export obligation as at March 31, 2011 has been completed subsequent to the year-end.

 

b) The Company discounts the receivables (bills discounting) with its bankers. As at March 31, 2011, the value of bills so discounted and subsequently settled by the customers on the due date amounts to Rs. 19.058 Millions  [Previous year Rs. 18.836 Millions].

 

 

FIXED ASSETS:

 

·         Tangible Assets

v      Land

v      Building

v      Roadways

v      Plant and Machinery

v      Electrical Installations

v      Computers and Laptops

v      Laboratory Equipment

v      Furniture and Fixtures

v      Motor Vehicles

·         Intangible Assets

v      Computer Software

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.54.65

UK Pound

1

Rs.82.41

Euro

1

Rs.70.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

53

 

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

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.