MIRA
INFORM REPORT
|
Report Date : |
15.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
CASTROL INDIA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.12.2010 |
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Date of
Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-21359 |
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Capital
Investment / Paid-up Capital : |
Rs.2472.800
Millions |
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|
CIN No.: [Company Identification
No.] |
L23200MH1979PLC021359 |
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|
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC03626A |
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PAN No.: [Permanent Account No.] |
AAACC4481E |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturers and Marketers of Lubricating Oils, Greases, Brake
Fluids, Cable Filling Compounds, Jellies, etc. |
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No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 22000000 |
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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 an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
Management non co-operative.
LOCATIONS
|
Registered Office : |
|
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Tel. No.: |
91-22-66984100/ 23632511/ 23632512/ 23632513 |
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Fax No.: |
91-22-56984101 |
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E-Mail : |
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Website : |
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Factory 1: |
A-8/A-14 MIDC, Patalganga Industrial Area, P.O. Rasayani,
Raigad-410207, |
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Tel No.: |
91-2192-250654 |
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Fax No.: |
91-2192-250171 |
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Factory 2: |
Survey No. 374/2, Village Saily, Saily-Rakholi Road, Dadra and Nagar
Haveli-396230, U.T |
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Tel No.: |
91-260-2640141 |
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Fax No.: |
91-260-2640139 |
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Factory 3: |
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Tel No.: |
91-33-24393527 |
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Fax No.: |
91-33-24397011 |
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Factory 4: |
23/7, |
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Tel No.: |
91-129-2309101 |
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Fax No.: |
91-129-2309112 |
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R and D Centre: |
B.P.T Plot No. 2023, New |
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Tel No.: |
91-22-24171950 |
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Fax No.: |
91-22-24150070 |
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Warehouses : |
White House, P. B. No. 16172, 91, Walkeshwar Road, Mumbai – 400 006,
Maharashtra, India |
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Tel. No.: |
91-22-23635447/ 23636555/ 23636562/ 23636563/ 23637569/ 23637590/
23637591/ 23637592/ 23637594/ 23637595/ 23632511 |
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Fax No.: |
91-22-23631335/ 23637003/ 23619578/ 23635447/ 23688837 |
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Region Office: |
Located At:
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DIRECTORS
As on 31.12.2010
|
Name : |
Mr. S.M. Datta |
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Designation : |
Chairman |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Name : |
Mr. D. S. Parekh |
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Designation : |
Director |
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Name : |
Mr. Amish Pramodrai Mehta |
|
Designation : |
Director |
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Address: |
602, Runwal Granderu, |
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Date of Birth: |
23.08.1970 |
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Din No.: |
00046254 |
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|
|
|
Name : |
Mr. Sujit Vijay Vaidya |
|
Designation : |
Whole Time Director |
|
Address: |
B 909, |
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Date of Birth: |
19.04.1967 |
|
Date of Appointment: |
16.11.2010 |
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Din No.: |
03287161 |
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Name : |
Mr. Philip John Hughes |
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Designation : |
Director |
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Address: |
27 The Broadway, Gustard Wood, |
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Date of Birth: |
16.02.1958 |
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Din No.: |
00293021 |
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Name : |
Mr. A.K. Jhawar |
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Designation : |
Director |
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Name : |
Mr. R. Elston-Green |
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Designation : |
Director (Alternate to Mr. P. Hughes) |
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Name : |
Mr. N.K. Kshatriya |
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Designation : |
Chief Executive and Managing Director |
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Name : |
Mr. A.S. Ramchander |
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Designation : |
Director |
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Name : |
Mr. A. Ahmad |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. N.K. Kshatriya |
|
Designation : |
Chief Executive and Managing Director |
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Name : |
Mr. A. H. Mody |
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Designation : |
Company Secretary and Legal Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
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|
175,645,858 |
71.03 |
|
|
175,645,858 |
71.03 |
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Total shareholding of Promoter and Promoter Group (A) |
175,645,858 |
71.03 |
|
(B) Public Shareholding |
|
|
|
|
|
|
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|
4,108,027 |
1.66 |
|
|
37,043 |
0.01 |
|
|
12,803,312 |
5.18 |
|
|
18,372,411 |
7.43 |
|
|
35,320,793 |
14.28 |
|
|
|
|
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|
3,137,416 |
1.27 |
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|
|
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|
29,340,589 |
11.87 |
|
|
3,833,940 |
1.55 |
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|
2,000 |
- |
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|
2,000 |
- |
|
|
36,313,945 |
14.69 |
|
Total Public shareholding (B) |
71,634,738 |
28.97 |
|
Total (A)+(B) |
247,280,596 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
247,280,596 |
- |
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(1) Indian%2015-Apr-2013_files/image003.gif){kind=small}
Bodies Corporate%2015-Apr-2013_files/image004.gif){kind=small}
Individual shareholders holding nominal share
capital up to Rs.0.100 Million SHAREHOLDING BELONGING TO THE CATEGORY: "PROMOTER AND PROMOTER GROUP"
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
Castrol Limited |
175,374,910 |
70.92 |
|
BP Mauritius Limited |
270,948 |
0.11 |
|
Total |
175,645,858 |
71.03 |
SHAREHOLDING BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 1% OF THE TOTAL NO.OF SHARES
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
Aberdeen Asset Managers Ltd A/c Aberdeen
International |
4,497,380 |
1.82 |
|
Life Insurance Corporation of |
7,927,941 |
3.21 |
|
Total |
12,425,321 |
5.02 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Marketers of Lubricating Oils, Greases, Brake
Fluids, Cable Filling Compounds, Jellies, etc. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Lubricating Oils, Greases, Brake Fluids at Patalganga, Kolkata,
Chennai and Silvassa |
KLs/MTs |
236000 |
-- |
|
Lubricating Oils, Greases, Etc. |
KLs/MTs |
-- |
217542 |
Note: Technically evaluated as certified by the Management and accepted by
Auditors) (Per Year on a single shift basis.
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
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|
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Bankers : |
·
Deutsche Bank ·
HDFC Bank Limited ·
The Hongkong and Shanghai Banking Corporation
Limited ·
State Bank of ·
Citibank N.A., Mumbai, ·
Standard Chartered Grindlays Bank, Mumbai, ·
Bank of |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S.R. Batliboi and Company Chartered Accountant |
|
Address: |
14th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (West),
Mumbai-400028, |
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Memberships : |
Confederation of Indian Industry |
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Solicitors and
Advocates: |
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Name: |
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Holding Company: |
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Associates: |
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Other Related
Parties: |
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CAPITAL STRUCTURE
As on 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
248000000 |
Equity Share |
Rs.10/- each |
Rs.2480.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
247280596 |
Equity Share |
Rs.10/- each |
Rs.2472.800
Millions |
NOTES:
1. Includes 175,374,910
(2009: 87,687,455) Equity Shares of Rs. 10/- each held by Castrol Ltd.,
2. Includes 239,993,616 (2009: 116,353,318) Equity Shares allotted as fully paid up Bonus Shares by capitalization of Share Premium/General Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2472.800 |
1236.400 |
1236.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3062.200 |
3713.600 |
3519.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5535.000 |
4950.000 |
4755.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
27.900 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
27.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5535.000 |
4950.000 |
4783.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1203.200 |
1113.300 |
1194.800 |
|
|
Capital work-in-progress |
165.700 |
261.300 |
249.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
5.200 |
5.200 |
|
|
DEFERREX TAX ASSETS |
371.100 |
346.200 |
268.200 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2442.000
|
2086.300
|
2673.000 |
|
|
Sundry Debtors |
1784.300
|
1606.000
|
1623.100 |
|
|
Cash & Bank Balances |
6192.600
|
5257.600
|
2556.300 |
|
|
Other Current Assets |
50.600
|
35.500
|
11.100 |
|
|
Loans & Advances |
1017.500
|
1050.300
|
891.900 |
|
Total
Current Assets |
11487.000
|
10035.700
|
7755.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4320.800
|
3753.300
|
2678.500 |
|
|
Other Current Liabilities |
627.800
|
563.900
|
360.400 |
|
|
Provisions |
2743.400
|
2494.500
|
1650.800 |
|
Total
Current Liabilities |
7692.000
|
6811.700
|
4689.700 |
|
|
Net Current Assets |
3795.000
|
3224.000
|
3065.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5535.000 |
4950.000 |
4783.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
27347.600 |
23181.900 |
22057.000 |
|
|
|
Other Income |
395.000 |
360.700 |
418.100 |
|
|
|
TOTAL (A) |
27742.600 |
23542.600 |
22475.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
13846.700 |
11237.800 |
13130.900 |
|
|
|
Operating and Other Expenses |
6250.000 |
6190.500 |
4928.900 |
|
|
|
TOTAL (B) |
20096.700 |
17428.300 |
18059.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7645.900 |
6114.300 |
4415.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
24.200 |
34.500 |
36.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7621.700 |
6079.800 |
4378.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
243.300 |
271.800 |
256.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7378.400 |
5808.000 |
4122.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2475.300 |
1997.400 |
1498.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4903.100 |
3810.600 |
2623.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
311.800 |
507.500 |
323.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
1731.000 |
1236.400 |
741.800 |
|
|
|
Tax on Interim Dividend |
287.500 |
210.100 |
126.100 |
|
|
|
Proposed Final Dividend |
1978.200 |
618.200 |
1112.800 |
|
|
|
Tax on Proposed Final Dividend |
328.600 |
105.100 |
189.100 |
|
|
|
Proposed Special Dividend |
0.000 |
1236.400 |
0.000 |
|
|
|
Tax on Proposed Special Dividend |
(4.800) |
210.100 |
0.000 |
|
|
|
Tax on Final Dividend 2009 |
(2.400) |
0.000 |
0.000 |
|
|
|
General Reserve |
490.300 |
390.000 |
270.000 |
|
|
BALANCE CARRIED
TO THE B/S |
406.500 |
311.800 |
507.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Suppliers to Foreign Vessels |
108.300 |
143.800 |
150.500 |
|
|
|
Commission and Others |
45.600 |
38.500 |
47.000 |
|
|
|
FOB value of goods exported |
19.600 |
29.800 |
32.400 |
|
|
TOTAL EARNINGS |
173.500 |
212.100 |
229.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5482.900 |
4062.600 |
5425.600 |
|
|
|
Capital Goods |
36.300 |
16.000 |
20.100 |
|
|
TOTAL IMPORTS |
5519.200 |
4078.600 |
5445.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
19.83 |
15.41 |
21.22 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.03.2011 |
30.06.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
7532.000 |
7932.000 |
|
Total Expenditure |
|
5713.000 |
5944.000 |
|
PBIDT (Excl OI) |
|
1819.000 |
1988.000 |
|
Other Income |
|
278.000 |
194.000 |
|
Operating Profit |
|
2097.000 |
2182.000 |
|
Interest |
|
4.000 |
2.000 |
|
PBDT |
|
2093.0000 |
2180.000 |
|
Depreciation |
|
63.000 |
63.000 |
|
Profit Before Tax |
|
2030.000 |
2117.0000 |
|
Tax |
|
664.000 |
692.000 |
|
Profit After Tax |
|
1366.000 |
1425.000 |
|
Net Profit |
|
1366.000 |
1425.000 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
PAT / Total Income |
(%) |
17.67
|
16.19 |
11.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
26.98
|
25.05 |
18.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
58.14
|
52.09
|
46.05 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.33
|
1.17
|
0.87 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.39
|
1.38
|
0.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.47
|
1.65 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.12.2010 (Rs. in millions) |
31.12.2009 (Rs. in millions) |
31.12.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
Due to micro
enterprises and small enterprises |
29.700 |
4.000 |
6.500 |
|
Dues to other
than micro enterprises and small enterprise |
4291.100 |
3749.300 |
2672.000 |
|
Total |
4320.800 |
3753.300 |
2678.500 |
HISTORY:
Subject is the second largest player in the Indian lubricant
industry and is the market leader in the retail automotive lubricant segment.
Subject was incorporated in the year 1979 as a private limited company under
the name of Indrol Lubricants and Specialities Private limited. It manufactures
and markets a range of automotive and industrial lubricants. It markets its
automotive lubricants under two brands - Castrol and BP. The company has
leadership positions in most of the segments in which it operates including
passenger car engine oils, premium 2-stroke and 4-stroke oils and multigrade
diesel engine oils. In the year 1982, Subject was converted into a public
limited company. During the same year, the company had set up a modern blending
plant and brake fluid plant at Patalganga. The brake fluid plant and the lube
oil blending plant of the company were commissioned in February and March of
the year 1985 respectively. In 27th June of the year 1986 the second Phase of
lube oil refining plant of the company was commissioned. Subject had formed a
subsidiary Company in the year 1987 under the name of Indtech Speciality
Chemicals, Limited for the manufacture of Telephone cable jellies,
pharmaceuticals jellies and industrial waxes in technical collaboration with
Dussek Campbell, U.K. Name of the company was changed from Indrol Lubricants
and Specialities Limited to Castrol India Limited with effect from 1st November of the year
1990. Indtech Speciality Chemicals (owned subsidiary) was merged with the
company with effect from 1st January of the year 1992. During the year 1994,
Subject had set up a new plant in Silvassa, Union Territory of Dadra/Nagar
Haveli at a cost of Rs.500.000 millions to the technology for lubricant
blending. The company formulated a satellite-linked management information
system (MIS), connecting the vast network in the year 1995 and also obtained
the ISO 9002 certification. In the same year of 1995, Subject had introduced
the Tractormax and RX Super Plus for the diesel engines and also launched two
stroke engine oils Jett X and Super TT; both exceed the Japanese Automobile
Standards Organisation (JAPO) specifications. During the identical year Castrol
PERFORMANCE
Sales increased by 18% over the previous year to Rs. 27350.000 Millions
mainly due to an increase in unit sales realizations and higher volumes.
Costs of materials have increased by 23% over the previous year to
Rs.13850.000 Millions due to an increase in Base oil prices and higher volumes.
Pro-active Cost Containment Strategies helped your Company to grow its
gross profits by 13%. Operating and
other expenses increased by Rs. 60.000 Millions only compared to 2009, though there was an
increase in spend on Advertisement and
Sales Promotion expenses by Rs. 130.000 Millions , the same being offset
by savings in processing charges and miscellaneous expenditure.
Profit before tax increased by 27% over the previous year to Rs.
7380.000 Millions. Tax rate for the current year has remained at nearly the
same level as that of the previous year. Profit after tax increased by 29% over
the previous year to Rs. 4900.000 Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS – 2010
The lubricant industry in
The automotive industry saw very good growth in 2010. The growth was
across categories, with the passenger vehicles segment growing by over 29% and
the commercial vehicles segment growing by 28%. It is believed this upward
trend will be sustained in the foreseeable future due to a strong domestic
market and increased thrust on exports.
The luxury car segment has taken off substantially in the last three
years and current data suggests demand will be sustained in the long term.
Additionally, the automobile industry is yet to fully tap into demand from
rural areas but most Original Equipment Manufacturers (OEMs) are targeting the
rural customer and there has been a gradual but steady growth in demand for
passenger vehicles from these areas. Rural markets and the luxury car segment
are expected to play a significant role as the Indian automobile industry seeks
to double total sales over the next decade.
Castrol extended its strong partnerships with leading automotive OEMs by
tying up with Skoda
MAJOR INDUSTRY
DEVELOPMENTS
ECONOMIC SCENARIO
The global economy has seen a revival with the outlook across North
America and
In
On the back of a global recovery, exports from
CRUDE OIL
The buoyancy in crude oil prices was the key economic driver in 2010 for
lubricant input materials. The supply and demand dynamics in favor of the
latter also influenced significant inflation in input materials. The year saw
considerable fluctuation in the foreign exchange rates of the US Dollar versus
the Indian Rupee and as a consequence, price stability was short lived.
The Asia and Pacific region has seen a robust growth in the demand for
base oils, led largely by
While the performance additives and chemicals category witnessed more
than a double digit hike in prices on account of growing demand and rise in
crude oil prices, the impact on commodity chemicals, solvents and refinery
products was significantly higher at 35% over the last year.
Unseasonal rains in most parts of the country leading to crop failures
created a demand supply imbalance in dependant commodity categories such as
vegetable oils and derivatives. A rising trend in steel prices also impacted
prices of metal drums adversely.
Your Company recognized the challenge of inflation and has kept a strong
focus on strategic sourcing decisions. These included creation of alternative
sources of supply, a focus on value engineering and working closely with key
supplier partners. There was a considerable focus on value based inventory
management which helped achieve balanced service and cash release.
MARKET BEHAVIOR
AND OUTLOOK
AUTOMOTIVE SECTOR
OUTLOOK
The automotive lubricants sector can be segmented as per the following
vehicle categories:
(a) Trucks, tractors and off-road equipment – mainly diesel engine oils
(b) Passenger cars – mainly gasoline engine oils
(c) Motorcycles and three wheelers – two stroke and four stroke oils
MARKET GROWTH:
The year 2010 was a year of robust recovery for the automotive lubricant
market. The market is estimated to have grown volumes by 4-5%. This has been
led by growth across categories, but primarily by the increased four stroke
motorcycle and passenger car sales, recovery in agri-driven lubricants
consumption and a growing new generation, high technology, truck segment. These
trends are expected to continue in 2011. The old generation truck market and
the two stroke motorcycle lubes market are projected to continue declining.
The building and construction segment and the mining segment, feeding
the infrastructure sector, are also expected to continue growing at a fast
pace. Thus, lubricant consumption is projected to grow robustly in passenger
cars, four stroke motorcycles, building and construction equipment and mining
sectors.
The monsoon in 2010 was substantial. Given good monsoon and extended
winters, it is expected that better ground levels of water would facilitate a
good summer agriculture season. Overall in 2011, the lubricant market is
projected to grow at around 3-4% in volume terms.
CHANNELS:
With the burgeoning growth of the vehicle industry, especially passenger
cars, two-wheelers and micro LCVs (Light Commercial Vehicles), almost all
distribution channels have seen a growth in recent times. While the traditional
retail channel continues to be dominant, OEM dealerships and authorized
workshops registered a faster pace of growth on the back of higher vehicle
sales and higher retention period of vehicle servicing at the OEM authorized
workshops. However, since the growth in the number of workshops continues to
lag the growth in vehicle population, the small independent workshops have also
been witnessing a rapid pace of growth. The historically dominant channels,
like petrol stations, continue to decline and are no longer a dominant channel
for the industry. This trend is expected to continue.
Organized retail and the entry of global retailers, which have had a
minimal impact till date, are expected to gradually pick up pace over the next
few years, subject to changes in Foreign Direct Investment (FDI) norms in
retail.
COMPETITIVE
ACTIVITY
The competitive situation remains largely unchanged with all major
international lubricant players having been present in the market for several
years now. Despite competitive activity increasing in the latter half of 2010,
your Company continues to be the leading brand in the retail sector, followed
by the public sector brands. However the smaller players have been competing
aggressively with lower prices and higher sales promotions to gain market
share.
Subject continues to be a major
player in the automotive lubricant market and holds a volume market share of
approximately 20% in the overall market, according to internal estimates.
NON-AUTOMOTIVE
SECTOR OUTLOOK
The Indian Manufacturing Industry is poised for a sustained period of
high growth. Industrial output, measured through the General IIP (Index of
Industrial Production) has shown impressive 10% growth during 2010. Industrial
production is also expected to grow at a healthy pace during 2011 and 2012. The
growth will be driven by rise in both consumption and investment demand.
Rise in income of urban consumers, higher income in hands of farmers,
laborers and industrial workers and record capacity additions across industries
are some of the key factors that would drive the demand for consumables and the
industrial production during the next two years.
In the automotive sector, production of passenger car and the two
wheeler segments is expected to grow in double digits driven by rising income
levels, easy availability of finance and new model launches. Increase in
industrial production and domestic trade, along with a faster growth in road
construction is also expected to fuel the demand for commercial vehicles.
Overall growth in all the segments of automobiles is expected to generate good
demand for automotive components. Commissioning of significant investment
projects and the healthy order books is expected to generate good demand in the
machinery manufacturing segment. Metals, cements and textiles are amongst the
segments which are likely to post significant growth next year.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN THE ACCOUNTS:
|
Particulars |
31.12.2010 (Rs. in millions) |
31.12.2009 (Rs. in millions) |
|
Guarantees and Counter Guarantees given by the Company |
344.500 |
66.800 |
|
Excise/Sales Tax Demands made by the authorities, in respect of which appeals have been filed |
198.100 |
180.700 |
|
Claims against the Company
not acknowledged as debts estimated at : |
|
|
|
Income Tax |
0.000 |
11.700 |
|
In respect of Third Parties – Miscellaneous |
16.300 |
14.300 |
|
Total |
558.900 |
273.500 |
FIXED ASSETS:
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipments
- Motor
Vehicles
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.54.44 |
|
|
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.71.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
63 |
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.