MIRA
INFORM REPORT
|
Report Date : |
27.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
FALCON TYRES LIMITED |
|
|
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|
Registered
Office : |
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Country : |
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Financials (as
on) : |
30.09.2012 |
|
|
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|
Date of
Incorporation : |
29.11.1973 |
|
|
|
|
Com. Reg. No.: |
08-002455 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 387.363 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25114KA1973PLC002455 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRF00538G BLRF00030C |
|
|
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|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Tyres and Tubes for Scooters, Mopeds,
Motor Cycles, Auto Rickshaws and Animal-drawn Vehicles. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 10000000 |
|
|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
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Litigation : |
Exist |
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|
Comments : |
Subject is an established company having moderate track record. The management has failed to file its financial with government
department for the year 2013. As per available financials of 2012, the ratings continue to be
constrained by company’s working capital intensive nature of operations,
concentrated product portfolio, stretched capital structure and loss incurred
form operational activities. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some 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
Uptick in agriculture
and construction spread some cheer as the economy grew a higher-than-expected
4.8 % in the three months through September. Manufacturing rose an annual rate
per cent during the quarter and mining fell by 0.4 %, government data showed
while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal
Acharya and others in a graft case related to distribution of a loan of over Rs
4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the
residence of Acharya.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: “BB” (Suspended) |
|
Rating Explanation |
Moderate risk of default and high credit
risk. |
|
Date |
08.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: “A4” (Suspended) |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
08.04.2013 |
Reason: Not furnished the information required.
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/ Head Office/ Factory/ Marketing Department : |
K. R. S. Road, Metagalli Post, Mysore – 570016, Karnataka, India |
|
Tel. No.: |
91-821-2582055 |
|
Fax No.: |
91-821-2582055 |
|
E-Mail : |
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|
Website : |
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|
Zonal Office: |
NORTHT 5th Floor, Raj Chamber, Rana Pratap Marg, Near dainik Jagran Chowraha, India Tel. No.: 91-522-3266416 EAST 5th Floor, Berger House, 129, Park Street, Kolkata – 70007, West Bengal, India Tel. No.: 91-33-22178775 WEST Kumar Plaza, 3rd Floor, Kalina Market, Near Kalina Maszid, Kalina Kurla Road, Santacruz (East), Mumbai – 400029, Maharashtra, India Tel. No.: 91-22-33645000 |
|
|
|
|
Corporate Office: |
46, Syed Amir Ali Avenue, Kolkata – 700017, West Bengal, India |
|
Tel. No.: |
91-33-22894747 |
|
Fax. No.: |
91-33-22893463 |
DIRECTORS
As on: 30.09.2012
|
Name : |
Mr. Pawan Kumar Ruia |
|
Designation : |
Executive Chairman |
|
Qualification : |
B.Com (Hons), AICWA, FCA, LL.B,
AASM, MIIA (USA) |
|
Experience : |
28 Years |
|
Date of Appointment : |
01.04.2007 |
|
|
|
|
Name : |
Mr. S. Ravi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Badrinarayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sunil Bansali |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. M.C. Bhansali |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
981844 |
1.27 |
|
|
981844 |
1.27 |
|
|
|
|
|
|
23513100 |
30.35 |
|
|
23513100 |
30.35 |
|
Total shareholding
of Promoter and Promoter Group (A) |
24494944 |
31.62 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
165602 |
0.21 |
|
|
106462 |
0.14 |
|
|
272064 |
0.35 |
|
|
|
|
|
|
49432340 |
63.81 |
|
|
|
|
|
|
2785778 |
3.60 |
|
|
291472 |
0.38 |
|
|
195982 |
0.25 |
|
|
27176 |
0.04 |
|
|
168806 |
0.22 |
|
|
52705572 |
68.03 |
|
Total Public
shareholding (B) |
52977636 |
68.38 |
|
Total (A)+(B) |
77472580 |
100.00 |
|
(C) 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) |
77472580 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Tyres and Tubes for Scooters, Mopeds,
Motor Cycles, Auto Rickshaws and Animal-drawn Vehicles. |
PRODUCTION STATUS (AS ON 30.09.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Tyres |
Nos. |
10800000 |
10144905 |
|
Tubes |
Nos. |
5400000 |
6874213 |
|
Tonnage
Information (Metric Ton) |
|||
|
Tyres |
Per Annum |
36183 |
33900 |
|
Tubes |
Per Annum |
2566 |
3244.00 |
* The installed capacity
is as certified by the management, and being technical matter reliance has been
placed by the auditors.
** Production includes, Production on Job Work basis.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Syndicate Bank ·
Yes Bank ·
Central Bank of ·
The South Indian Bank
Limited ·
Punjab National
Bank ·
ICICI Bank Limited ·
Oriental Bank of
Commerce |
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Facilities : |
(Rs.
In Millions)
|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.N. Gutgitia and Company Chartered Accountants |
|
|
|
|
Subsidiaries: |
Monotona Tyres Limited |
|
|
|
|
With whom the Company has transaction : |
·
Dunlop India Limited, Dunlop Polymers Private
Limited ·
Falcon Tyres Impex Private Limited ·
Falcon Tyres Rubbers Private Limited ·
Jessop and Company Limited ·
Manali Properties and Finance Private Limited ·
Ruia Sons Private Limited ·
Ruia Corporate Service Private Limited ·
Shalimar Towers Private Limited ·
Suryamani Finance Company Limited, Tulip ·
Machineries Private Limited ·
Vidyuth Petrochem Private Limited. ·
Walker Properties Private Limited |
|
|
|
|
Others : |
|
CAPITAL STRUCTURE
As on: 30.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.5/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77472580 |
Equity Shares |
Rs.5/- each |
Rs. 387.363
Millions |
|
|
|
|
|
The Company has one class of equity shares having a par value of Rs.5 each. Each equity shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholdings.
During the year the company has allotted 43387048 equity shares of Rs. 5 at a premium of Rs.28.26 per share on preferential basis by conversion of unsecured loans received in cash at EGM held on 26th April, 2012
There are no unpaid amounts or calls in areas from public, directors or officers of the company and no shares were forfeited during the year
Further, on 29th Sep, 2009, the company issued 34085532 bonus shares in the ratio of two shares for every one share held
DIL Rim and Wheel Corporation Limited, Mauritius was holding company during the previous year 2010-11 but during the current year due to preferential allotment, their holding has come down to 30.35% and lost holding company status as per the Companies Act 1956.
|
Name of Shareholders |
As on 30.09.2012 |
|
|
No. of shares |
% held |
|
|
M/S Kanpur Properties and Finance Private Limited |
2385150 |
3.08% |
|
M/S Suncap Commodities Limited |
15185467 |
19.60% |
|
M/S Regus Impex Private Limited |
15185467 |
19.60% |
|
M/S Salputri Commerce Private Limited |
13016114 |
16.80% |
|
M/S Manali Properties and Finance Private Limited |
981844 |
1.27% |
|
M/S Dil Rim Wheel Corporation Limited |
23513100 |
30.35% |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
30.09.2012 |
30.09.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
387.363 |
170.427 |
|
(b) Reserves & Surplus |
|
2354.076 |
1797.274 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
2741.439 |
1967.701 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
4743.749 |
1972.677 |
|
(b) Deferred tax liabilities (Net) |
|
148.307 |
76.350 |
|
(c) Other long
term liabilities |
|
374.648 |
260.645 |
|
(d) long-term
provisions |
|
105.799 |
118.692 |
|
Total Non-current
Liabilities (3) |
|
5372.503 |
2428.364 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
1228.299 |
2331.382 |
|
(b)
Trade payables |
|
1168.742 |
797.045 |
|
(c)
Other current liabilities |
|
701.364 |
594.529 |
|
(d) Short-term
provisions |
|
109.598 |
344.173 |
|
Total Current
Liabilities (4) |
|
3208.003 |
4067.129 |
|
|
|
|
|
|
TOTAL |
|
11321.945 |
8463.194 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
4804.319 |
1949.700 |
|
(ii)
Intangible Assets |
|
2.015 |
0.000 |
|
(iii)
Capital work-in-progress |
|
1610.928 |
437.213 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
110.752 |
886.300 |
|
(c) Deferred tax
assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
2393.035 |
2369.829 |
|
(e) Other Non-current
assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
8921.049 |
5643.042 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
953.646 |
913.997 |
|
(c)
Trade receivables |
|
685.171 |
1138.337 |
|
(d) Cash
and cash equivalents |
|
244.885 |
277.996 |
|
(e)
Short-term loans and advances |
|
517.194 |
489.822 |
|
(f)
Other current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
2400.896 |
2820.152 |
|
|
|
|
|
|
TOTAL |
|
11321.945 |
8463.194 |
|
SOURCES OF FUNDS |
|
|
30.09.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
170.427 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1611.062 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1781.489 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1502.260 |
|
|
2] Unsecured Loans |
|
|
817.180 |
|
|
TOTAL BORROWING |
|
|
2319.440 |
|
|
DEFERRED TAX LIABILITIES |
|
|
72.695 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
4173.624 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1849.893 |
|
|
Capital work-in-progress |
|
|
386.368 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
886.300 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
721.821
|
|
|
Sundry Debtors |
|
|
1123.694
|
|
|
Cash & Bank Balances |
|
|
321.855
|
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
340.893
|
|
Total
Current Assets |
|
|
2508.263 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
332.522 |
|
|
Other Current Liabilities |
|
|
892.563
|
|
|
Provisions |
|
|
232.115
|
|
Total
Current Liabilities |
|
|
1457.200 |
|
|
Net Current Assets |
|
|
1051.063
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
4173.624 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9059.566 |
9007.277 |
7881.041 |
|
|
|
Other Income |
95.139 |
82.844 |
56.633 |
|
|
|
TOTAL (A) |
9154.705 |
9090.121 |
7937.674 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
5329.205 |
|
|
|
|
|
Manufacturing Expenses |
498.115 |
544.129 |
|
|
|
|
Purchase of Stock-in-Trade |
973.817 |
1153.959 |
|
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
43.676 |
(258.556) |
|
|
|
|
Employee Benefit Expense |
542.204 |
492.850 |
|
|
|
|
Other Expenses |
1018.099 |
1026.151 |
|
|
|
|
Exceptional Items |
669.728 |
0.000 |
|
|
|
|
TOTAL (B) |
9074.844 |
8334.228 |
7036.851 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
79.861 |
755.893 |
900.823 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
417.201 |
175.203 |
165.211 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(337.340) |
580.690 |
735.612 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
180.552 |
85.233 |
77.766 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(517.892) |
495.457 |
657.846 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
71.957 |
205.611 |
141.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(589.849) |
289.846 |
516.346 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
208.014 |
87.240 |
20.590 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
100.000 |
350.000 |
|
|
|
Proposed Dividend |
0.000 |
59.649 |
85.214 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
0.000 |
9.423 |
14.482 |
|
|
BALANCE CARRIED
TO THE B/S |
(381.835) |
208.014 |
87.240 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
715.949 |
503.148 |
131.566 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1067.198 |
933.544 |
721.519 |
|
|
|
Stores & Spares |
0.124 |
0.000 |
0.000 |
|
|
|
Capital Goods |
0.000 |
0.988 |
0.248 |
|
|
TOTAL IMPORTS |
1067.322 |
934.532 |
721.767 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(7.51) |
8.50 |
15.15 |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
PAT / Total Income |
(%) |
(6.44) |
3.19 |
6.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.71) |
5.51 |
8.35 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.40) |
6.93 |
15.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.19) |
0.25 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.18 |
2.19 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.75 |
0.69 |
1.72 |
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 |
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 |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
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 |
Yes |
CASE DETAILS
|
High Court of Karnataka - Principal Bench at Bangalore |
|
COP 183/2013 |
|
Petitioner/Appnt.
Name |
SURENDRA ELASTOMERS PRIVATE LIMITED |
|
Respondent/Defnt.
Name |
FALCON TYRES LTD |
|
Petnr./Appnt.
Advocate |
PRAVEEN H P |
|
Respnt./Defnt.
Advocate |
|
|
Date Filed |
05/09/2013 |
|
District |
Out Of State |
|
Stage |
PENDING FOR ADMISSON |
Last Posted
for |
ADMISSION |
|
Last Action Taken |
NOTICE |
Last Date of Action |
13/12/2013 |
|
Next hearing date |
|
|
|
|
Before Hon'ble
Judge/s |
ANAND BYRAREDDY |
|
|
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 30.09.2012 |
As on 30.09.2011 |
|
Short term borrowings |
|
|
|
Interest free Loan from Body Corporate |
0.000 |
1315.512 |
|
Loan From Customers |
39.250 |
81.250 |
|
|
|
|
|
Total |
39.250 |
1396.762 |
STANDALONE PERFORMANCE
The Company has achieved a net turnover of Rs. 9059.600 millions for the year posting a marginal increase of 1% over the previous year turnover of Rs. 9007.300 millions. Profit before Interest, Depreciation, Taxes and exceptional item stood at Rs. 749.600 millions as against the previous year figure of Rs. 755.900 millions. The Losses after exceptional item but before Tax is Rs. 517.900 millions as against the previous year profit of Rs. 495.500 millions. Loss after Tax is Rs. 589.800 millions as against the previous year profit of Rs. 289.800 millions. During the year the operational profit has come down due to partial utilization of increased capacity where interest and depreciation has been fully absorbed.
Production of Tyres and Tubes, during the year stood at 35440 MT against 37144 MT in the previous year. The Company has partnered with Original Equipment Manufacturers and has kept pace by developing Tyres for newer models. Production in MT is slightly down due to change in product mix, increase in value added products like Tubeless Tyres, PCR Tyres, etc.
The Company has maintained its leadership position in Export market segment in the Current year. The replacement market has been marginally down due to sluggish market conditions and cut-throat competition due to demand-supply mismatch in the Industry.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Automobile industry in India happens to be the ninth largest in the world. 2-3 wheeler account for nearly 80% of the Automobile Industry in numbers in India. The growth of the Indian Tyre Industry is fuelled by the growth of the 2-3 wheeler tyres mainly. Majority of 1.16 Billion Population of India is middle class and lives in rural India. This indicates a huge potential, sustainable growth and prosperity for both 2-3 wheel manufacturers and its component makers, especially to products like tyres/ battery etc.
The bottom line came under tremendous pressure due to increase in raw material price, depreciation of rupee, higher overhead cost and increase in rate of borrowings and slowdown in the Indian economy.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Automotive sector was a great beneficiary of the overall recovery during 2009-10 and registered a healthy growth.
Due to slow down in the Indian economy during 2011-12 tyre industry has also been affected. However, for the Indian economy outlook for growth and price stability at this juncture looks more promising and in turn the prospects for the growth in the tyre industry look bright.
On the other hand Raw Materials prices are a cause of concern. Synthetic rubber and other input prices witnessed increase due to devaluation of rupee.
BUSINESS OUTLOOK AND OVERVIEW
Year 2011-12 has witnessed oversupply situation for products of the Company and industry due to higher capacity additions by major players in 2-3 wheeler segment. Sudden increase in production much faster than demand affects the performance of the company. The Company has launched various value added new products like tubeless tyres etc. to increase its sales.
COMPANY PERFORMANCE
DOMESTIC SEGMENT
The Company has kept a balance between it's major supplies in OEM and Replacement market, whereas Company has increased its supplies to the OEM's it cannot increase its business in the replacement market due to sluggish market conditions and demand supply gap during the year. Although the demand has gone up but due to recent huge capacity additions a demand supply gap has been created and it will take some time to absorb additional capacities.
EXPORT SEGMENT
During the year, the Company has Directly/ Indirectly sold Rs.715.900 millions value of tyres in export market as compared to Rs. 503.100 millions sold during the last year posting a growth of around 30%. The Company is focusing on the segment and expects to grow further.
OPPORTUNITY AND THREATS
Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes. There is a large untapped market in semi-urban and rural areas of the country.
The Company has developed Tubeless Tyres and tested few Radial Tyres also during the year and the response to the same are positive. Moreover the newly developed Tuffgrip Tyres has also got very positive response.
OPERATION REVIEW
Financial Performance:
The Company achieved gross turnover of Rs.9821.950 millions for the year ended 30th September 2012, as against previous year gross turnover of Rs.9723.294 millions with a marginal increase. These results were achieved despite severe competition in the Industry.
The Company's sales in various market segments are as given below:
|
Description |
UOM |
2011-12 (12 Months) |
2010-11 (12 Months) |
|
OEM's |
Rs. In Millions |
4206.308 |
3991.608 |
|
Replacement |
Rs. In Millions |
4530.518 |
4893.590 |
|
Exports |
Rs. In Millions |
715.949 |
503.148 |
|
Others |
Rs. In Millions |
369.175 |
334.948 |
|
Total |
Rs. In Millions |
9821.950 |
9723.294 |
INDEX OF
CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10368693 |
28/07/2012 |
130,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. |
B44968063 |
|
2 |
10344677 |
22/01/2013 * |
2,800,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B69840866 |
|
3 |
10315874 |
24/09/2011 |
100,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B24632523 |
|
4 |
10240479 |
07/09/2010 * |
500,000,000.00 |
THE SOUTH INDIAN BANK LIMITED |
DOOR NO.50& 51, 1ST FLOOR, DEV RAJ URS ROAD, MYSORE, KARNATAKA - 570001, INDIA |
A95697249 |
|
5 |
10238200 |
16/11/2013 * |
500,000,000.00 |
SYNDICATE BANK |
K R CIRCLE BRANCH, VISWESWARAIAH BHAVAN K R CIRCLE, MYSORE, KARNATAKA - 570001, INDIA |
B90216359 |
|
6 |
10208082 |
21/07/2010 * |
1,440,000,000.00 |
CENTRAL BANK OF INDIA |
CORPORATE FINANCE BRANCH, 1ST FLOOR MMO BUILDING |
A91346668 |
|
7 |
10091874 |
18/08/2011 * |
150,000,000.00 |
ORIENTAL BANK OF COMMERCE |
123/C DEWAN'S ROAD, D.DEVARAJ URS ROAD, MYSORE, KARNATAKA - 570024, INDIA |
B32042442 |
|
8 |
10055063 |
20/12/2006 |
370,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. |
A13455258 |
|
9 |
10024538 |
16/11/2013 * |
570,000,000.00 |
SYNDICATE BANK |
K R CIRCLE BRANCH, VISWESWARAIAH BHAVAN K R CIRCLE, MYSORE, KARNATAKA - 570001, INDIA |
B90213950 |
|
10 |
80036696 |
23/07/2012 * |
312,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, NO. 61, RESIDENCY PLAZA, RESIDENCY
ROAD, BANGALORE, KARNATAKA - 560001, |
B45406717 |
|
11 |
80036863 |
13/12/2004 |
315,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RESIDENCY ROAD,, BANGA |
- |
|
12 |
80021843 |
03/08/2009 * |
397,500,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE BRANCH, CENTENARY BUILDING, NO.28, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
A68217702 |
* Date of charge modification
FIXED ASSETS: · Land
· Buildings
· Plant and Machinery
· Computers
· Electrical installation
· Office and Lab Equipments
· Furniture and Fixtures
· Vehicles
· Low Value Assets
· Technical Know – how
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. 61.98 |
|
|
1 |
Rs. 101.49 |
|
Euro |
1 |
Rs. 84.79 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--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 |
YES |
|
--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 |
|
29 |
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.