MIRA
INFORM REPORT
|
Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
TENNECO AUTOMOTIVE INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
122, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
12.01.1998 |
|
|
|
|
Com. Reg. No.: |
18-015231 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.613.896
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U34300TZ1998PTC015231 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHET02650E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCT3125D |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is
primarily engaged in the manufacture and trade of Ride Control (RC) Systems and
Exhaust Control (EC) Systems. It also provides Information Technology Enabled
Services. |
|
|
|
|
No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a 100% subsidiary of “Tenneco Inc., USA. Subject is an established company having a moderate track record. The
financial for the year 2012 is not available. As per the previous years’, the company has recorded huge losses. The
external borrowing seems to be huge. However, the company gets strong support from its holding company.
Trade relations are reported to be fair. Business is active. Payments are
unknown. The company can be considered for business dealings with great
caution. |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Kiran Dhamdhere |
|
Designation : |
HR Manager |
|
Contact No.: |
91-2135-612501 |
|
Date : |
12.08.2013 |
LOCATIONS
|
Registered Office : |
122, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu, India |
|
Tel. No.: |
91-4344-277395/ 409100/ 409101/ 409103/ 305500 |
|
Fax No.: |
91-4344-400150/ 409102/ 409103/ 305502 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
2000 sq.fts |
|
Location : |
Owned |
|
|
|
|
Admin Office : |
D-1, South, 9th Floor, TIDEL Park, 4, Rajiv Gandhi Salai,
Taramani, Chennai – 600 113, Tamilnadu, India |
|
Tel. No.: |
91-44-22540482/ 22540317 |
|
Fax No.: |
91-44-22540483 |
|
|
|
|
Factory : |
No.122, Gat No.1396/1397, At Post Sanaswadi, Pune – 412 208,
Maharashtra, India |
|
Tel. No.: |
91-2135-612501/ 308800 |
|
Location : |
Owned |
DIRECTORS
AS ON 29.12.2012
|
Name : |
Mr. Abhijit Mukherjee |
|
Designation : |
Director |
|
Address : |
Karl Van Loreinelaan – 3, Tervuren – 3080, |
|
Date of Birth/Age : |
14.01.1958 |
|
Date of Appointment : |
29.11.2008 |
|
DIN No.: |
02428684 |
|
|
|
|
Name : |
Mr. Gangasagar Neminath Hemade |
|
Designation : |
Director |
|
Date of Birth/Age : |
31.08.1971 |
|
Date of Appointment : |
09.05.2011 |
|
DIN No.: |
03409175 |
|
|
|
|
Name : |
Mr. Jose Maria Fornos Montserrat |
|
Designation : |
Director |
|
Address : |
Val Des Seigneurs, 67, A , BTE 6, |
|
Date of Birth/Age : |
29.01.1953 |
|
Date of Appointment : |
23.02.2011 |
|
DIN No.: |
03421903 |
|
|
|
|
Name : |
Jayalakshmi Srinivasan |
|
Designation : |
Director |
|
Address : |
Flat No.3, Parsnaditya Apartment, 292, Lloyds Road, Avvai Shunmuga
Salai, Gopalapuram, Chennai – 600 086, Tamilnadu, India |
|
Date of Birth/Age : |
04.04.1965 |
|
Date of Appointment : |
09.05.2011 |
|
DIN No.: |
03409432 |
|
PAN No.: |
ADMPJ3141L |
KEY EXECUTIVES
|
Name : |
Jayalakshmi Srinivasan |
|
Designation : |
Secretary |
|
Address : |
Flat No.3, Parsnaditya Apartment, 292, Lloyds Road, Avvai Shunmuga
Salai, Gopalapuram, Chennai – 600 086, Tamilnadu, India |
|
Date of Birth/Age : |
04.04.1965 |
|
Date of Appointment : |
20.08.2010 |
|
PAN No.: |
ADMPJ3141L |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.12.2012
|
Names of Shareholders |
No. of Shares |
|
Tenneco Mauritius Limited , |
17115307 |
|
Tenneco Mauritius Holding Company, |
86968306 |
|
Tenneco Global Holdings Inc., |
21 |
|
Total |
104083634 |
AS ON 29.12.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily
engaged in the manufacture and trade of Ride Control (RC) Systems and Exhaust
Control (EC) Systems. It also provides Information Technology Enabled
Services. |
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Products : |
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Exports : |
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Countries : |
Not Divulged |
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Imports : |
|
||||||||
|
Countries : |
Not Divulged |
PRODUCTION STATUS (AS ON 31.03.2011)
Licensed and
Installed Capacity
|
Particulars |
Unit |
31.03.2010 |
|
Shock Absorbers and Struts |
Nos. |
6730000 |
|
Sintered Components |
M.T. |
500 |
|
Catalytic Convertor |
Nos. |
480000 |
|
Exhaust System and Pipes |
Nos. |
915000 |
Note: Installed capacity is on a double shift basis
and is as certified by management and relied upon by the auditors being a
technical matter. The assessment of installed capacity is subject to
assumptions on product mix, labour and machine efficiencies, extent of sub
contracting facilities availed etc.
Actual Production
|
Particulars |
Unit |
31.03.2010 |
|
Shock Absorbers and Struts |
Nos. |
5419375 |
|
Sintered Components |
M.T. |
463 |
|
Catalytic Convertor |
Nos. |
345209 |
|
Exhaust System and Pipes |
Nos. |
752456 |
Note: The above production quantities include production through job
workers.
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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|
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Customers : |
Not Divulged |
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|
||||||||||||
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No. of Employees : |
2000 (Approximately) |
||||||||||||
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|
||||||||||||
|
Bankers : |
·
ICICI Bank Limited, Hosur ·
State Bank of India |
||||||||||||
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|
||||||||||||
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
5th
Floor, Tower 'D', The Millenia, 1&2 Murphy Road, Ulsoor, Bangalore – 560
008, Karnataka, India |
|
PAN No.: |
AAEFP3641G |
|
|
|
|
Ultimate Holding Company: |
Tenneco Inc., USA |
|
|
|
|
Immediate Holding Company : |
Tenneco Mauritius Holding
Limited, Mauritius |
|
|
|
|
Fellow Subsidiaries: |
·
Armstrong Hydraulics SA (Pty) Limited, South
Africa ·
Fric - ROT S.A.I.C., Argentina ·
Gillet Abgassysteme Zwickau Gmbh., Germany ·
Gillet Exhaust Tecnologies Pty Limited, South
Africa ·
Monroe Australia Pty Limited, Australia ·
Monroe Auto Equipment Company, USA ·
Monroe Czechia S.R.O., Czech Republic ·
Monroe HA OE Shock, Czech Republic ·
Monroe Mexico SA D CV, Mexico ·
Monroe Packaging BVBA, Belgium ·
Shanghai Tenneco Exhaust System Co Limited, China ·
Tenneco (Beijing) Ride Control Systems Company
Limited, China ·
Tenneco Automotive Eastern Europe Sp.zo.o.,
Poland ·
Tenneco Automotive Europe Coordination Center
BVBA, Belgium ·
Tenneco Automotive Europe N.V., Belgium ·
Tenneco Automotive France S.A.S., France ·
Tenneco Automotive Heinrich Gillet GmbH., Germany ·
Tenneco Automotive Iberica, S.A., Spain ·
Tenneco Automotive Japan Limited, Japan ·
Tenneco Automotive Operating Co Inc., Delaware ·
Tenneco Automotive Polska Sp.zo.o., Poland ·
Tenneco Automotive Trading Company, Singapore ·
Tenneco Canada Inc., Canada ·
Tenneco Europe Limited, USA ·
Tenneco Iberica S.A., Iberica ·
Tenneco Korea Limited, Korea ·
Tenneco Mauritius Limited, Mauritius ·
Tenneco Suzhou Company Limited, China ·
Tenneco Tongtai Dalian Exhaust System Company
Limited, China ·
Walker Exhaust (Thailand) Company Limited,
Thailand |
CAPITAL STRUCTURE
AS ON 29.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
104275000 |
Equity Shares |
Rs.10/- each |
Rs.1042.750 millions |
|
22500 |
Preference Shares |
Rs.100/- each |
Rs.2.250 millions |
|
|
Total |
|
Rs.1045.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
104083634 |
Equity Shares |
Rs.10/- each |
Rs.1040.836
millions |
|
|
|
|
|
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
96825000 |
Equity Shares |
Rs.10/- each |
Rs.968.250 millions |
|
22500 |
Preference Shares |
Rs.100/- each |
Rs.2.250 millions |
|
|
Total |
|
Rs.970.500
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
61389554 |
Equity Shares |
Rs.10/- each |
Rs.613.896
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 |
613.896 |
477.365 |
212.164 |
|
|
2] Share Application Money Pending Allotment |
240.894 |
33.834 |
0.000 |
|
|
3] Reserves & Surplus |
10.512 |
10.512 |
0.000 |
|
|
4] (Accumulated Losses) |
(1590.080) |
(663.666) |
(2.084) |
|
|
NETWORTH |
(724.778) |
(141.955) |
210.080 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.713 |
0.950 |
|
|
2] Unsecured Loans |
2157.801 |
1586.387 |
0.000 |
|
|
TOTAL BORROWING |
2157.801 |
1587.100 |
0.950 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1433.023 |
1445.145 |
211.030 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1152.601 |
1231.659 |
2.407 |
|
|
Capital work-in-progress |
231.552 |
270.416 |
0.000 |
|
|
Expenditure pending allocation, net |
0.000 |
19.741 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
199.591 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
540.496
|
311.361
|
0.000 |
|
|
Sundry Debtors |
986.269
|
587.073
|
0.000
|
|
|
Cash & Bank Balances |
287.060
|
214.199
|
4.711
|
|
|
Other Current Assets |
23.561
|
9.649
|
0.049 |
|
|
Loans & Advances |
261.877
|
265.565
|
68.080
|
|
Total
Current Assets |
2099.263
|
1387.847
|
72.840 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1774.736
|
1195.680 |
62.760
|
|
|
Other Current Liabilities |
206.811
|
226.273
|
0.000
|
|
|
Provisions |
68.846
|
42.565
|
1.048
|
|
Total
Current Liabilities |
2050.393
|
1464.518
|
63.808 |
|
|
Net Current Assets |
48.870
|
(76.671)
|
9.032
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1433.023 |
1445.145 |
211.030 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover |
4855.961 |
2939.977 |
14.518 |
|
|
|
Other Income |
NA |
NA |
4.464 |
|
|
|
TOTAL (A) |
NA |
NA |
18.982 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
NA |
NA |
27.070 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
NA |
NA |
27.070 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(204.327) |
89.704 |
(8.088) |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
192.004 |
176.129 |
0.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(396.331) |
(86.425) |
(8.198) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
528.758 |
228.444 |
1.066 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(925.089) |
(314.869) |
(9.264) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.324 |
(16.932) |
0.269 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(926.413) |
(297.937) |
(9.533) |
|
|
|
|
|
|
|
|
|
Less/ Add |
Losses of erstwhile amalgamation companies |
-- |
(363.645) |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
(663.666) |
(2.084) |
7.449 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1590.079) |
(663.666) |
(2.084) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B value of exports |
225.740 |
163.390 |
0.000 |
|
|
|
Income from Services |
48.123 |
40.257 |
14.518 |
|
|
TOTAL EARNINGS |
273.863 |
203.647 |
14.518 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Stores and Spares |
803.040 |
283.531 |
0.000 |
|
|
|
Capital Goods |
95.946 |
51.182 |
0.000 |
|
|
TOTAL IMPORTS |
898.986 |
334.713 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(19.17) |
(6.24) |
(0.45) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
NA
|
NA
|
(50.22)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(19.05) |
(10.71) |
(63.82)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(28.45) |
(12.02)
|
(12.31)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.28 |
2.22
|
(0.04)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(2.98) |
(11.18)
|
0.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02 |
0.95
|
1.14
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
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 |
Yes |
|
10) Designation of contact person |
Yes |
|
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 |
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 |
No |
|
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 |
Yes |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
|
Unsecured Loans |
31.03.2011 (Rs.
in Millions) |
31.03.2010 (Rs.
in Millions) |
|
Rupee term loans banks |
1264.573 |
1205.166 |
|
Foreign currency loans others |
804.183 |
230.921 |
|
Deferred sales tax loan |
78.234 |
78.234 |
|
Other debt - Overdraft |
10.811 |
72.066 |
|
Total
|
2157.801 |
1586.387 |
Note:
Registered office has been shifted from Plot No.RNS-2,
SIPCOT Industrial Park, Mathur Post, Sriperumbudur Taluk, Kancheepuram – 602
105, Tamilnadu, India to the present address.
BRIEF BACKGROUND ABOUT THE COMPANY:
Subject was
Incorporated as a Private Limited Company on January 12, 1998 under the Companies
Act, 1956 (the ‘Act’). The Company was principally formed to act as holding
company for the Indian businesses and invest in and develop other downstream
joint venture companies and/or wholly-owned subsidiaries in India to
manufacture, distribute and/or otherwise deal in automobile parts and
components and other related activities including establishment of a
comprehensive Research and Development Centre. Pursuant to a Scheme of
amalgamation as per the order of Madras High Court dated July 9, 2010, Tenneco
RC India Private Limited (TRCIPL), Tenneco Exhaust India Private Limited
(TEIPL), Tenneco India Engineering and Shared Services Private Limited (TIESS)
and Renowned Auto Products Mfrs Private Limited (RAPS) were amalgamated with
the Company effective from April 1, 2008.
FINANCIAL RESULTS:
Though the
turnover has increased by about 65% the Company has made a loss of Rs.926.410
millions. This is mainly due to increase in raw material prices, interest cost,
provision for bad debts and on account of fluctuation in Foreign Currency.
The depreciation
expenses during the year has gone up due to change in the useful life of
Goodwill on Amalgamation from 4 years to 2 years. Hence, the net book value of Goodwill
of Rs.439.743 millions was charged off during the year.
The major increase in Interest cost is on account of Interest on ECB
loan. During the year, the company has borrowed additional ECB and hence the
interest cost on ECB has gone up by Rs.13.168 millions.
The major
additions in Fixed Assets during the year are on account of purchase of Chakan
Land, Bending machine, additions to factory building and PEB work for Chennai
Plant, SAP software and DG set
INDIAN MARKET
CONDITIONS
India’s automotive
industry, the world’s seventh largest, is poised for a turnover of $145 billion
by 2016, up from the current $73 billion. With another $11 billion coming from
export of automotive components, the sector has sought a flexible tax structure
and reforms in labour laws to maintain competitiveness.
Indian automobile
industry is expected to invest about Rs.2500000.000 millions in the next ten
years, by which time the four-wheeler segment is estimated to touch 10 million
units annually by 2020 from 2.5 million units.
Current turnover
of the (auto) industry is $75 billion, while exports are worth $11 billion.
Automobile
industry is expected to grow 11 to 13 percent in the fiscal year ending next
March when compared to the last year. Despite rising fuel prices, higher
interest rates and vehicle costs automakers sold 143,370 cars in June.
The biggest
revision is in passenger vehicles (PV), where sales growth moderated 8.8 per
cent to 601,547 units in the first three months of 2011-12, as compared to 29
per cent growth over the same period of 2010-11. Revised forecast says PV sales
are now likely to grow at 10-12 percent, as against the 16-18 per cent
projected in April for this year.
Interestingly,
despite the slowing sales, data reveals India continued to be fastest growing
PV market in the world in the January-May period.
India is fifth,
registering growth of 12.7 per cent in the segment over the corresponding
period last year. Industry is cautioned that any further increase in interest
rates would drag down growth numbers further.
Growth projection
for the two-wheeler segment is unchanged at 12-14 per cent, while that of
three-wheelers has been lowered to eight to 10 percent from the earlier nine to
11 per cent.
The CV segment is
likely to witness 12-14 per cent growth, than the earlier projection of 14-16
per cent with expectations of a good monsoon season and arrival of the festive
season, market expects PV sales to pick up again at the end of this quarter.
There were 13 new
PV launches in the two-wheeler segment between April and June. Additionally,
the industry saw the introduction of three refreshed PV variants and three
upgraded versions of two-wheelers in the period.
Domestic PV car sales
saw its slowest growth in 27 months in June, at 1.62 per cent, mainly due to
rises in lending rates and production loss due to the 13-day strike at Maruti
Suzuki's Manesar unit.
Total two-wheeler
sales increased 14.6 per cent to 10,71,425 units last month from 934,975 units
in June 2010.
CV sales grew 17.8
per cent to 62,009 units in June from 52,627 units in the year-ago period, Siam
said. Total sales of vehicles across categories registered 12.8 per cent growth
to 13,62,984 units in June, as against 12,07,934 units in the same month last
year.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2011 (Rs.
in Millions) |
31.03.2010 (Rs.
in Millions) |
|
(a) Sales Bill
Discounting |
110.273 |
176.560 |
|
(b) Unexpired
Letter of credit |
8.347 |
27.593 |
|
(c) Bank
Guarantees |
1.364 |
1.364 |
|
(d) Disputed tax
demands pending with Appellate Authorities: |
|
|
|
(i) Excise/
Customs Duty |
6.560 |
4.867 |
|
(ii) Service Tax |
1.157 |
1.157 |
|
(iii) Sales Tax |
12.857 |
23.617 |
|
(e) Claims against
Company not acknowledged as debt by: |
|
|
|
(i) Employees
towards Voluntary Retirement Scheme compensation |
2.100 |
2.100 |
|
(ii) Lender
against interest on loan |
1.712 |
1.712 |
|
(iii) Vendor
against goods supplied |
1.761 |
1.761 |
|
(iv) Employees
towards claim for re-instatement |
12.507 |
8.919 |
FIXED ASSETS:
Tangible Assets
·
Land
·
Buildings
·
Plant and Machinery
·
Computers
·
Furniture and Fittings
·
Office Equipment
·
Vehicles
Intangible Assets
·
Goodwill
·
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,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist oranization
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.60.80 |
|
|
1 |
Rs.94.21 |
|
Euro |
1 |
Rs.81.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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.