MIRA
INFORM REPORT
|
Report Date : |
28.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
LUMAX INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
B-85-86, Mayapuri Industrial Area, Phase - 1, New Delhi – 110064 |
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|
|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
10.12.1981 |
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|
|
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Com. Reg. No.: |
55-012804 |
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Capital
Investment / Paid-up Capital : |
Rs.93.477 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1981PLC012804 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELL02101B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACL1126D |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
Line of Business
: |
Manufacturer of Auto Components and Lighting Equipments. |
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|
|
|
No. of Employees
: |
2,073 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6800000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having a good track record.
Financially company seems to be strong. Liquidity position is good. Trade relations are reported to be fair. Business is active. Payment 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.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
India’s current account
deficit narrowed in the quarter ended September as government measures to curb
imports, especially gold, kicked in. The current account deficit, the
excess of a country’s imports of goods and services over exports, narrowed to $
5.2 billion from $ 21 billion in the year ago period, according to provisional
Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for
the year will be less than $ 60 billion or 3 per cent of GDP and the latest
data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million worth
of mobile-phone-based transactions by July 2013 compared to Rs.260 million in
September, 2012, according to Deloitte report. The number of transactions has
shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan : A- |
|
Rating Explanation |
Having adequate degree of safety and carry
low credit risk. |
|
Date |
July, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Working Capital Limit = A2+ |
|
Rating Explanation |
Having strong degree of safety and carry low
credit risk. |
|
Date |
July, 2013 |
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/
Corporate Office : |
B-85-86, Mayapuri Industrial Area, Phase – 1, New Delhi – 110064,
India |
|
Tel. No.: |
91-11-28111777/ 28116990/ 28115709 |
|
Fax No.: |
91-11-28115779/ 28113631 |
|
E-Mail : |
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|
Website : |
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Factory 1 : |
Plot No.16, Sector-18, Maruti Complex, Gurgaon , |
|
Tel. No.: |
91-124-2341090 |
|
Fax No.: |
91-124-2342149 |
|
E-Mail : |
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Factory 2 : |
Plot No.6, Industrial Area, Dharuhera, District Rewari, |
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Factory 3 : |
Plot No.195-195A, Sector 4, Phase II, G.C. Bawal, District Rewari,
Haryana, India |
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Factory 4 : |
Plot No.51, Sector 11, IIE Pant Nagar District Udham Singh Nagar,
Uttarakhand, India |
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Factory 5 : |
Plot No.5, Industrial Park - II, Village Salempur, Mehdood, Haridwar,
Uttarakhand, India |
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Factory 6 : |
Warehouse at Plot No.E-38, Site-IV, Surajpur Greater Noida, District
Gautam Budh Nagar, Uttar Pradesh, India |
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Factory 7 : |
D2-43/2, M.I.D.C. Industrial Area, Chinchwad, Pune, Maharashtra, India |
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Factory 8 : |
608-609, Chakan Talegaon Road, Mahalunge Ingle, Chakan, District Pune,
Maharashtra, India |
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Factory 9 : |
Plot No. D-1, Vendor Park, Nano Plant, Viramgam Highway, Sanand,
Ahmedabad, Gujarat, India |
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|
|
Factory 10 : |
Plot No. 22C, Bidadi Industrial Area, Bangalore – 562109, Karnataka,
India |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. D. K. Jain |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Deepak Jain |
|
Designation : |
Senior Executive Director |
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|
|
|
Name : |
Mr. Anmol Jain |
|
Designation : |
Senior Executive Director |
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|
|
|
Name : |
Mr. Eiichi Hirooka |
|
Designation : |
Senior Executive Director- Stanley Nominee |
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|
|
|
Name : |
Mr. Toshio Masuda |
|
Designation : |
Executive Director - Stanley Nominee |
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|
|
|
Name : |
Mr. Makio Natsusaka |
|
Designation : |
Non- Executive Director - |
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|
|
|
Name : |
Mr. A.P. Gandhi |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Rattan Kapur |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Gursaran Singh |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Suman Jyoti Khaitan |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. M.C. Gupta |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Dhiraj Dhar Gupta |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. B.S. Bhadauriya |
|
Designation : |
Vice President (Legal) and Company Secretary |
|
|
|
|
Name : |
Mr. Naval Khanna |
|
Designation : |
Group Finance Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2427555 |
25.97 |
|
|
952451 |
10.19 |
|
|
3380006 |
36.16 |
|
|
|
|
|
|
3505399 |
37.50 |
|
|
3505399 |
37.50 |
|
Total shareholding of Promoter and Promoter Group (A) |
6885405 |
73.66 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1740 |
0.02 |
|
|
400 |
0.00 |
|
|
56100 |
0.60 |
|
|
58240 |
0.62 |
|
|
|
|
|
|
918624 |
9.83 |
|
|
|
|
|
|
978754 |
10.47 |
|
|
428672 |
4.59 |
|
|
78037 |
0.83 |
|
|
77727 |
0.83 |
|
|
80 |
0.00 |
|
|
230 |
0.00 |
|
|
2404087 |
25.72 |
|
Total Public shareholding (B) |
2462327 |
26.34 |
|
Total (A)+(B) |
9347732 |
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) |
9347732 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Auto Components and Lighting Equipments. |
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Products : |
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GENERAL INFORMATION
|
Customers : |
GLOBAL CLIENTS ·
John Deere ·
Nissan ·
Truck lite ·
CNH ·
Adiva ·
Vignal DOMESTIC CLIENTS ·
Martuti Suzuki ·
TATA ·
Bajaj ·
Honda ·
Hero ·
Honda ·
Mahindra ·
Ashol Leylan ·
GM ·
Ford ·
Hyundai ·
Kinetic ·
HM ·
Swaraj Mazda ·
Yamaha ·
Force Motors |
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No. of Employees : |
2,073 (Approximately) |
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Bankers : |
· Societe Generale · Standard Chartered Bank · Syndicate Bank · Citi Bank N.A. · IDBI Bank Limited ·
Central Bank of · ICICI Bank Limited · HDFC Bank Limited · State Bank of India · Bank of Maharashtra · Yes Bank Limited · Kotak Mahindra Bank Limited · HSBC Bank |
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
|
Address : |
Gurgaon, |
|
|
|
|
Associates : |
·
Stanley Electric Company Limited, Japan |
|
|
|
|
Joint Venture : |
·
SL Lumax Limited |
|
|
|
|
Enterprise
owned or significantly influenced by Key Management Personnel or their
Relatives: |
· Lumax Auto Technologies Limited · Lumax DK Auto Industries Limited · Lumax DK Electric Engineering Indian Private Limited · Lumax Tours and Travels Limited · Lumax Finance Private Limited · Lumax Ancillary Limited · (Formerly Deepak Auto Limited) · Mahavir Udyog · D.K. Jain and Sons (HUF) · Lumax Automotive Systems Limited · Bharat Enterprises · Lumax Cornaglia Auto Technologies Private Limited |
CAPITAL STRUCTURE
(AS ON 07.08.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9347732 |
Equity Shares |
Rs.10/- each |
Rs.93.477
Millions |
|
|
|
|
|
Reconciliation of shares outstanding at the
beginning and at the end of the reporting year
|
Particulars |
As
at March 31, 2013 |
|
|
|
Nos. |
Rs. In Millions |
|
At the beginning of the year |
9347732 |
93.477 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
9347732 |
93.477 |
Terms/rights attached to equity shares
The Company has only one class of equity shares
having a par value of Rs.10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian
rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended March 31, 2013, the amount of
per share dividend recognized as distributions to equity shareholders was Rs.
4.50 (Previous year: Rs.6).
In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% shares in the Company
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Equity shares of Rs.10 each fully paid |
|
|
|
Stanley Electric Company Limited |
3343381 |
35.77 |
|
Dhanesh Kumar Jain |
1938025 |
20.73 |
|
Lumax Auto Technologies Limited |
525000 |
5.62 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
93.477 |
93.477 |
93.477 |
|
(b) Reserves & Surplus |
1600.910 |
1514.594 |
1451.983 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
1694.387 |
1608.071 |
1545.460 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
1010.182 |
1135.372 |
472.219 |
|
(b) Deferred tax liabilities (Net) |
233.723 |
213.961 |
206.777 |
|
(c) Trade Payable |
0.000 |
36.681 |
79.968 |
|
(d) Other long term
liabilities |
254.441 |
256.665 |
259.116 |
|
(e) long-term provisions |
72.400 |
55.244 |
1.569 |
|
Total Non-current
Liabilities (3) |
1570.746 |
1697.923 |
1019.649 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
271.538 |
300.508 |
259.878 |
|
(b) Trade payables |
2881.952 |
2772.616 |
2427.811 |
|
(c) Other current
liabilities |
874.831 |
666.452 |
568.082 |
|
(d) Short-term provisions |
77.356 |
93.602 |
146.166 |
|
Total Current Liabilities
(4) |
4105.677 |
3833.178 |
3401.937 |
|
|
|
|
|
|
TOTAL |
7370.810 |
7139.172 |
5967.046 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4007.333 |
3463.214 |
2622.896 |
|
(ii) Intangible Assets |
48.474 |
51.640 |
27.405 |
|
(iii) Capital
work-in-progress |
189.585 |
498.607 |
332.646 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
45.677 |
45.677 |
36.077 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
163.261 |
141.496 |
120.805 |
|
(e) Other Non-current
assets |
81.049 |
63.296 |
4.736 |
|
Total Non-Current Assets |
4535.379 |
4263.930 |
3144.565 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.814 |
0.839 |
0.775 |
|
(b) Inventories |
1079.723 |
900.593 |
821.598 |
|
(c) Trade receivables |
1098.549 |
1267.437 |
1323.492 |
|
(d) Cash and cash
equivalents |
282.531 |
308.208 |
319.020 |
|
(e) Short-term loans
and advances |
246.212 |
335.953 |
346.167 |
|
(f) Other current
assets |
127.602 |
62.212 |
11.429 |
|
Total Current Assets |
2835.431 |
2875.242 |
2822.481 |
|
|
|
|
|
|
TOTAL |
7370.810 |
7139.172 |
5967.046 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10702.059 |
9851.582 |
8662.486 |
|
|
|
Other Income |
46.947 |
36.517 |
35.767 |
|
|
|
TOTAL (A) |
10749.006 |
9888.099 |
8698.253 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material
and components consumed |
7574.895 |
7326.201 |
6286.147 |
|
|
|
Purchase of traded goods |
19.204 |
30.003 |
37.361 |
|
|
|
Employee benefits expense |
970.312 |
791.487 |
671.703 |
|
|
|
Other expenses |
1543.362 |
1277.385 |
1132.935 |
|
|
|
(Increase)/decrease in inventories of finished goods work-in-progress and traded goods |
(16.398) |
(31.255) |
2.190 |
|
|
|
TOTAL (B) |
10091.375 |
9393.821 |
8130.336 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
657.632 |
494.278 |
567.917 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
185.733 |
122.277 |
90.134 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
471.899 |
372.001 |
477.783 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
316.274 |
236.680 |
240.449 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
155.625 |
135.321 |
237.334 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
19.774 |
7.184 |
57.598 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
135.851 |
128.137 |
179.736 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
195.438 |
145.486 |
48.935 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
13.830 |
13.000 |
18.000 |
|
|
|
Dividend |
42.060 |
56.086 |
56.086 |
|
|
|
Tax on Dividend |
0.715 |
9.099 |
9.099 |
|
|
BALANCE CARRIED
TO THE B/S |
274.684 |
195.438 |
145.486 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of manufactured goods at F.O.B. Value |
335.413 |
244.470 |
195.673 |
|
|
|
Recovery of Testing Charges |
14.769 |
9.335 |
5.290 |
|
|
TOTAL EARNINGS |
350.182 |
253.805 |
200.963 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
703.742 |
650.407 |
624.771 |
|
|
|
Components and spare parts |
19.140 |
10.018 |
8.901 |
|
|
|
Capital Goods |
652.030 |
783.479 |
433.985 |
|
|
|
Traded Goods |
20.884 |
30.002 |
37.361 |
|
|
TOTAL IMPORTS |
1395.796 |
1473.906 |
1105.018 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.53 |
13.71 |
19.23 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.26
|
1.30 |
2.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.45
|
1.37 |
2.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.18
|
2.05 |
4.24 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.08 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.76
|
0.89 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.69
|
0.75 |
0.83 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
Unsecured Loans
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Other loans and advances |
|
|
|
Deferred sales tax loan |
15.473 |
68.811 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Cash credit/Working Capital/ Buyer’s credit facility from banks |
271.538 |
300.508 |
|
|
|
|
|
Total |
287.011 |
369.319 |
BUSINESS
PERFORMANCE
The Indian auto and auto components industry is currently facing its most formidable challenge – that of slowing demand; and that too across the board. After a frenzied period of 2009-10 and 2010-11 when all automotive spots - domestic OEMs, exports and replacement market - shone bright, the year 2011-12 marked the commencement of a slowdown phase as volumes in the domestic Passenger Vehicle and Medium and Heavy Commercial Vehicle segments began to stutter. If the year 2011-12 was bad, the year 2012-13 has turned out to be worse as other segments too including the domestic Two-Wheeler segment as also exports to overseas OEMs and tier-1 players have come into the grips of the slowdown. While the revenue growth of diversified auto component manufacturers had been steady till Q1 2012-13, the across the board weakness in demand witnessed during the last two quarters has tended to neutralize this structural advantage otherwise enjoyed by such players.
During the year, the Indian Automobile Industry recorded a production growth of 1.20% as compared to 13.83% of the corresponding period last year. The industry produced around 20.620 Millions vehicles of which share of two wheelers were 76%, passenger vehicles - 16%, three wheelers and commercial vehicles - 4% each. In this backdrop, during the year, the company recorded a sales turnover of Rs. 10702.06 Million registering a growth of 8.63%, which is much above the industry growth. The profit for the year after tax stood at Rs.135.850 Millions as compared to Rs.128.140 Millions during the previous year.
NEW PLANTS AND
FACILITIES
The plant in Bidadi, Bangalore has commenced manufacturing operations
and supplies of Auto Lighting and other components to Toyota Kirloskar Motors
India Private Limited for their Etios and Liva vehicles in August, 2012.
Further, the supplies of two wheeler lighting from this plant to Honda
Motorcycle and Scooter India Private Limited (HMSI) are expected to commence in
the first quarter of FY 2013-14.
During the year, the Company has made investment to the tune of
Rs.865.000 millions towards up-gradation of its Research and Development
facilities, modernization of its existing manufacturing facilities including
Bawal and Bangalore plants.
RECOGNITION AND
AWARDS
The company considers high standards for quality, environmental protection and safety as critical success factors and, therefore, all relevant issues are regularly monitored and assessed within the framework of company’s quality management system. As a result of which the Company has received the following awards and recognitions from Customers and other Agencies during the year:
· Got the Shield for Manufacturing Excellence from Maruti Suzuki India Limited.
·
Won 2nd Runner up trophy in Quality Circle
Preliminary Competition organized by Confederation of Indian Industry.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY
STRUCTURE, DEVELOPMENTS AND OUTLOOK
ECONOMIC
ENVIRONMENT
GLOBAL ECONOMY
Despite improved
global financial conditions and reduced short-term risks, the world economy
continues to expand at a subdued pace. After a marked down-turn over the past
two years, global economic activity is expected to slowly gain momentum in the
second half of 2013 and 2014 on the back of accommodative monetary policies in
developed and developing economies. Growth of world gross product is projected
at 2.3% in 2013, the same pace as in 2012, before gradually strengthening to
3.1% in 2014.
INDIAN ECONOMY
Following the
slowdown induced by the global financial crisis in 2008-09, the Indian economy
responded strongly to fiscal and monetary stimulus and achieved a growth rate
of 8.6% and 9.3% respectively in 2009-10 and 2010-11.
However, with the
economy exhibiting inflationary tendencies, the Reserve Bank of India started
raising policy rates in March 2010. High rates as well as policy constraints
adversely impacted investment, and in the subsequent two years viz. 2011-12 and
2012-13, the growth rate slowed to 6.2% and 5.0% respectively.
The slowdown,
especially in 2012-13, has been across the board, with no sector of the economy
unaffected. The moderation in growth is primarily attributable to weakness in
industry, which registered a growth rate of only 3.1%. Growth in agriculture
has also been weak to 1.9%, following lower-than-normal rainfall. The growth
rate of the services sector also declined to 6.6%.
India’s situation
is difficult but steps have been taken to bring the macro economy back into
balance and growth on track. It is important to recognize that a lot needs to
be done and the slowdown is a wake-up call for increasing the pace of actions
and reforms. With the global economy also likely to recover somewhat in 2013,
these measures should help in improving the Indian economy’s outlook for 2013-14.
INDIA OUTLOOK FY
2013-14
Over two decades,
India has implemented wide-ranging reforms that opened up the economy,
dismantled the old licensing system and introduced competition into a number of
sectors that had previously been dominated by public monopolies. This decisive
action has helped the Indian economy to narrow the gap in living standards with
advanced economies. Supported by further reforms, convergence accelerated in
the 2000s as growth averaged over 8% a year, one of the strongest performances
in the world.
The Indian economy
now ranks third largest in the world, measured in Purchase Power Parity terms,
and world-leading Indian enterprises have emerged across a number of sectors,
not least in information technology and business services.
The Indian economy
is now highly integrated with the global economy - in fact, more integrated
than some of the major advanced economies are. Therefore, the uncertain global
macroeconomic situation directly impacts the Indian economy through various
channels. As global growth has slowed down significantly, it has obviously
impacted India’s growth.
Uncertain global
economic prospects do not augur well for India’s exports and will limit
external stimulus to its economy. India’s growth prospects in 2013-14 will,
therefore, be largely shaped by domestic factors.
An improvement in
private consumption growth would be critical to revive GDP growth in 2013-14.
Higher agriculture income-driven by normal monsoons, pre-election welfare
spending by the government and lower interest rates will be key drivers of
private consumption in 2013-14. Further, the government has also taken a number
of steps to revive investment and growth, which will help the overall economy
to grow in the range of 6.1 to 6.7%.
AUTO AND AUTO
COMPONENT INDUSTRY OUTLOOK
The Indian automotive industry has emerged as a ‘sunrise sector’ in the Indian economy. India is emerging as one of the world’s fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer.
India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India’s cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs.
India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focusing their efforts to develop innovative products, technologies and supply chains.
The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order.
The Indian automobiles industry witnessed a moderation in demand in 2012-13, after the double-digit growth in sales recorded in the preceding three years. Weak macroeconomic sentiment coupled with subdued consumer confidence pulled down sales. Overall Indian Automobile Industry has shown 2.61% growth in FY 2012-13 compared to previous FY 2011-12. Production and Domestic sales registered a growth of 1.20% and 2.61% respectively; however the exports de-grew by 1.34% due to negative global environment and fluctuation.
In view of the current macro environment, both domestically and globally, Indian automobile industry’s prospects in the near term are cautiously optimistic. As a result, achieving high growth rates is likely to be a major concern for the industry in 2013-14.
While the long term fundamentals of the Indian economy remain robust, the sluggish global environment has impacted sentiments in the domestic market in the short term. But it is expected to be only a temporary phenomenon, and future prospects look better than this year. Growth in sales would be driven by the expected improvement in macro conditions on the domestic front, moderation in interest rates and revival in consumer confidence. Consequently, the deferred purchases witnessed in FY 2012-13 are expected to get converted into sales next year. The auto industry is likely to gain considerably from the various initiatives on infrastructure development, rural focus and the improved road infrastructure.
CONTINGENT
LIABILITIES: (RS. IN MILLIONS)
|
S. No. |
Particulars |
March 31, 2013 |
March 31, 2012 |
|
(i) |
Bills of exchange
discounted from a bank |
343.269 |
155.434 |
|
(ii) |
Demand raised by ESIC department
against short contribution paid by the Company, being disputed by the Company |
1.481 |
2.880 |
|
(iii) |
Demand raised by Sales Tax
authorities against purchase tax on inter unit stock transfers, being
disputed by the Company |
0.906 |
0.906 |
|
(iv) |
Various other claims of
Sales Tax Matters made against the Company not acknowledged as debts, being
disputed by the Company |
1.318 |
1.403 |
|
(v) |
Various other claims of Sales
Tax Matters made against the Company on account of non-submission of
statutory forms etc. being disputed by the Company. |
7.015 |
7.015 |
|
(vi) |
In respect of additions made
by the Assessing officer for Assessment Year 2004-05 for which the department
has filed an appeal before Income Tax Appellate Tribunal against the order of
CIT (Appeals). |
1.441 |
1.441 |
|
(vii) |
Income Tax demand in
respect of Assessment Year 2005-06 for which the Department has filed an
appeal before Income Tax Appellate Tribunal against the order of CIT
(Appeals). |
27.885 |
27.885 |
|
(viii) |
Income Tax demand in
respect of Assessment Year 2006-07 for which the Company has filed an appeal before
Income Tax Appellate Tribunal against the order of Dispute Resolution Panel
(DRP). |
5.699 |
5.699 |
|
(ix) |
Income Tax demand in
respect of Assessment Year 2007-08 for which the Company has filed an appeal before
Income Tax Appellate Tribunal against the order of DRP. |
30.685 |
30.685 |
|
(x) |
Income Tax demand in
respect of Assessment Year 2008-09 for which the Company has filed an appeal
before Income Tax Appellate Tribunal. |
38.855 |
38.855 |
|
(xi) |
The Company is currently
under litigation against the order of Assessing Officer in relation to
transfer pricing additions and disallowances of leave encashment expense,
provision for warranty and expenses under section 14A of the Income Tax Act,
1961 in relation to Assessment year 2009-10. The Company has filed an appeal
before DRP against the said order. |
*84.556 |
-- |
|
(xii) |
Liability of Customs duty
towards export obligation undertaken by the Company under EPCG licenses |
112.689 |
80.890 |
|
(xiii) |
Letter of credit |
57.691 |
36.916 |
|
(xiv) |
Bank Guarantees |
133.960 |
237.747 |
* The amount pertains to
disallowances made by the assessing officer.
Based on the favourable decisions
in similar cases/advice taken by the Company, the Company believes that it has
good case in respect of all the items listed under (ii) to (x) above and hence
no provision there against is considered necessary.
FIXED ASSETS:
·
·
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Computer Software
· Technical Knowhow
STATEMENT OF
UNAUDITED RESULTS FOR THE QUARTER ENDED 30.09.2013
Rs. In Millions
|
Sr. No. |
Particulars |
Quarter Ended |
Six Months Ended |
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
||
|
|||||
|
Unaudited |
Unaudited |
Unaudited |
|
||
|
|
|
|
|
|
|
|
1 |
a. Net Sales / Income from Operations |
2587.524 |
2694.520 |
5282.044 |
|
|
b. Other Operating Income |
9.506 |
10.411 |
19.917 |
|
|
|
|
Total |
2597.030 |
2704.931 |
5301.961 |
|
|
2 |
Expenditure |
|
|
|
|
|
Consumption of Raw Materials |
1773.995 |
1955.070 |
3729.065 |
|
|
|
Purchase of stock in trade |
29.866 |
0.104 |
29.970 |
|
|
|
Changes in inventories of finished goods, work in progress and stock in trade |
21.013 |
(5.573) |
15.440 |
|
|
|
Employee benefit expense |
269.338 |
259.612 |
528.950 |
|
|
|
Depreciation |
93.137 |
91.181 |
184.318 |
|
|
|
Other Expenditure |
392.092 |
372.529 |
764.621 |
|
|
|
Total |
2579.441 |
2672.923 |
5252.364 |
|
|
|
|
|
|
|
|
|
|
3 |
Profit from Operations before Other Income, Interest and Exceptional Items (1-2) |
17.589 |
32.008 |
49.597 |
|
|
4 |
Other Income |
17.647 |
10.052 |
27.699 |
|
|
5 |
Profit before Interest and Exceptional Items (3+4) |
35.236 |
42.060 |
77.296 |
|
|
6 |
Finance costs |
44.892 |
46.294 |
91.186 |
|
|
7 |
Profit before Tax (5-6) |
(9.659) |
(4.234) |
(13.890) |
|
|
8 |
Tax expense |
(13.578) |
(10.510) |
(24.088) |
|
|
9 |
Profit After Tax (7-8) |
(3.922) |
6.276 |
10.198 |
|
|
10 |
Paid-up Equity Share Capital - (face value of equity share Re 1 each) |
93.477 |
93.477 |
93.477 |
|
|
11 |
Reserves excluding revaluation reserves |
-- |
-- |
-- |
|
|
12 |
Earnings per Share |
|
|
|
|
|
|
Basic and diluted EPS |
0.42 |
0.67 |
1.09 |
|
|
|
|
|
|
|
|
|
1 |
A. Particulars of Shareholding |
|
|
|
|
|
|
Public Share Holdings |
|
|
|
|
|
|
- No. of Shares |
2,462,327 |
2,462,327 |
2,462,327 |
|
|
|
- Percentage |
26.34% |
26.34% |
26.34% |
|
|
|
|
|
|
|
|
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
|
Pledged / Encumbered |
|
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
|
- Percentage of Shares (as a % of the total outstanding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
|
- Percentage Of Shares (as a % of the total share capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
|
|
Non-encumbered |
|
|
|
|
|
|
- Number of Shares |
6,885,405 |
6,885,405 |
6,885,405 |
|
|
|
- Percentage of Shares (as a % of the total outstanding of promoter and promoter group) |
100% |
100% |
100% |
|
|
|
- Percentage Of Shares (as a % of the total share capital of the Company) |
73.66% |
73.66% |
73.66% |
|
|
Sr. No. |
Particulars |
Quarter Ended 30.09.2013 |
|
|
B. Investor
Complaints [Nos.] |
|
|
1 |
Pending at the beginning of the year |
-- |
|
2 |
Received during the quarter |
5 |
|
3 |
Disposed of during the quarter |
5 |
|
4 |
Remaining unresolved at the end of the quarter |
-- |
STATEMENT OF ASSETS
AND LIABILITIES
Rs. In Millions
|
Sr. No.: |
Particulars |
30.09.2013 Unaudited |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders' Funds |
|
|
|
(a) Share Capital |
93.477 |
|
|
(b) Reserves & Surplus |
1610.955 |
|
|
Sub-Total of Shareholder’s Fund |
1704.432 |
|
2 |
Non-Current
Liabilities |
|
|
|
(a)
long-term borrowings |
1001.156 |
|
|
(b)
Deferred tax liabilities |
209.636 |
|
|
(b) Other long term liabilities |
254.441 |
|
|
(c) long-term provisions |
78.023 |
|
|
Sub-Total Non-current Liabilities |
1543.256 |
|
3 |
Current Liabilities |
|
|
|
(a) Short term borrowings |
380.662 |
|
|
(b) Trade payables |
2662.256 |
|
|
(c) Other current liabilities |
997.129 |
|
|
(d) Short-term provisions |
30.430 |
|
|
Sub-Total Current Liabilities |
4070.477 |
|
|
TOTAL-EQUITY AND LIABILITY |
7318.165 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed Assets |
4199.198 |
|
|
(b) Non-current Investments |
45.074 |
|
|
(c) Long-term Loan and Advances |
159.065 |
|
|
(d) Other Non-current assest |
180.656 |
|
|
Sub-Total Non-Current Assets |
4583.993 |
|
2 |
Current assets |
|
|
|
(a) Current investments |
0.814 |
|
|
(b) Inventories |
841.553 |
|
|
(c) Trade receivables |
1165.311 |
|
|
(d) Cash and cash equivalents |
331.237 |
|
|
(e) Short-term loans and advances |
289.473 |
|
|
(f) Other current assets |
105.784 |
|
|
Sub-Total Current Assets |
2734.172 |
|
|
TOTAL ASSETS |
7318.165 |
Notes:
1. The above results for the quarter ended September 30, 2013 have been reviewed by the Auditors and were taken on record at the Board of Directors meeting held on October 28, 2013.
2. The company’s business activity falls within a single business segment i.e. manufacture of Automotive Components and therefore, segment reporting in terms of accounting slandered 17 on segmental reporting is not applicable.
3. Figures of previous periods have been regrouped wherever necessary to conform to current quarter / year classification.
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 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.62.06 |
|
|
1 |
Rs.102.03 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.