MIRA
INFORM REPORT
|
Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
VARROC
ENGINEERING PRIVATE LIMITED (w.e.f. 24.01.2001) |
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|
|
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Formerly Known
As : |
VARROC
ENGINEERING LIMITED |
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Registered
Office : |
E-4, MIDC, Waluj,
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
11.05.1988 |
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Com. Reg. No.: |
11-047335 |
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Capital Investment
/ Paid-up Capital : |
Rs.300.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U28920MH1988PTC047335 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKV01528C |
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PAN No.: [Permanent Account No.] |
AAACV2420J |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Exporter of Automotive Parts and Equipment. |
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No. of Employees
: |
3000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 16210000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a good track record. The
verified financials of 2012 are not available. Mr. Amit Dargad, Deputy Manager has provided all required information.
The company has recorded better sales turnover during 2012. As per previous year’s verified financials, the company’s financial
position appears sound and healthy. Trade relations are reported as decent. Business is active. Payment
terms are regular and as per commitment. The company can be considered for business dealings at usual trade
terms and conditions. Note: Due to technical
error in the government sites, we hereby provide you the report with
available details and we would provide you with a on the same company as soon
as we get the additional information. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A+ (Long term rating) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
27.12.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1 (Short term rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
27.12.2012 |
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 PARTED BY
|
Name : |
Mr. Amit Dargad |
|
Designation : |
Deputy Manager Finance |
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Contact No.: |
91-240-6648000 |
|
Date : |
08.02.2013 |
LOCATIONS
|
Registered/ Corporate Office/ Factory 1 : |
E-4, MIDC, Waluj,
|
|
Tel. No.: |
91-240-2556227/ 2556228/
2555441/ 2564540/ 6648000 |
|
Fax No.: |
91-240-2564540/
2555987/ 2554487 |
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E-Mail : |
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|
Website : |
http://www.varrocgroup.com |
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Location : |
Owned |
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Factory 2: |
K-101/102, MIDC Industrial Area, Waluj, |
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Factory 3: |
B-24/25, MIDC Area, Chakan Taluka Khed, District Pune – 410 501, |
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Factory 4: |
M-138-141, MIDC Industrial Area, Waluj, |
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Factory 5: |
L-6/2, MIDC Industrial Area, Waluj, |
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Factory 6: |
Gut No. 390, Takve-BK, Taluka Maval, District Pune – 412 106, |
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Factory 7: |
L-4, MIDC Industrial Area, Waluj, |
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Factory 8: |
Plot No. 20, Sector 9, Integrated Industrial Estate, Pantnagar,
District Udham Singh Nagar, |
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Factory 9: |
M-191/3, MIDC Industrial Area, Waluj, Aurangabad-431136, Maharashtra,
India |
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|
Wind Power Projects : |
v
Vankusvade Site, Village Kushi/ Kusawade, Taluka
Patan, District Satara, v
Kovdya Dongar, Village Supa, District Ahmednagar,
v
Village Badabagh, District Jaisalmer, |
DIRECTORS
As on 23.07.2011
|
Name : |
Mr. Naresh
Adishwarlal Chandra |
|
Designation : |
Director |
|
Address : |
Bhagwati Bhavan, 31/B,
M.L. Dahanukar Marg, Mumbai – 400 026, |
|
Date of Birth/Age : |
11.02.1935 |
|
Date of Appointment : |
11.05.1988 |
|
DIN No.: |
00027696 |
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|
|
|
Name : |
Mr. Tarang
Nareshchandra Jain |
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Designation : |
Managing Director |
|
Address : |
Gut No. 41 (P),
Opposite Walmi Kanchanwadi, |
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Date of Birth/Age : |
21.03.1962 |
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Qualification : |
B. Com., M.B.A. |
|
Experience : |
28 Years |
|
Date of Appointment : |
11.05.1988 |
|
DIN No.: |
00027505 |
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|
|
|
Name : |
Mr. Narendra
Kumar Jain |
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Designation : |
Director |
|
Address : |
Flat No.82B, 8th
Floor, Meher Apartments, |
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Date of Birth/Age : |
15.08.1939 |
|
Date of Appointment : |
09.09.1992 |
|
DIN No.: |
00027735 |
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Name : |
Mr. Gautam
Premnath Kahndelwal |
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Designation : |
Director |
|
Address : |
B 2, Alaknanda,
16-A, |
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Date of Birth/Age : |
21.09.1956 |
|
Date of Appointment : |
24.03.2011 |
|
DIN No.: |
00270717 |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kumar Sachdev |
|
Designation : |
AVP – Corp. Legal Affairs and Company Secretary |
|
Address : |
F1, Chanakya Puri, |
|
Date of Birth/Age : |
29.12.1965 |
|
Date of Appointment : |
01.04.2008 |
|
PAN No.: |
ABEPS8631G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 23.07.2011
|
Names of Shareholders (Equity Share) |
|
No. of Shares |
|
Naresh Chandra |
|
1157100 |
|
Tarang Jain |
|
5147500 |
|
Suman Jain |
|
2030000 |
|
Naresh Chandra
and Suman Jain |
|
435000 |
|
Tarang Jain and
Rochana Jain |
|
814900 |
|
Tarang Jain – HUF
|
|
14500 |
|
Naresh Chandra –
HUF |
|
14500 |
|
Varroc Polymers
Private Limited, |
|
464000 |
|
Total |
|
10077500 |
As on 23.07.2011
|
Names of Shareholders (Preference Shares) |
|
No. of Shares |
|
Varroc Polymers Private
Limited, |
|
20000000 |
|
Total |
|
20000000 |
Equity Share Break up (Percentage of Total Equity)
As on 23.07.2011
|
Category |
Percentage |
|
Bodies corporate |
4.60 |
|
Directors or relatives of Directors |
95.40 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Automotive Parts and Equipment. |
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Products : |
v
Magnetos v
Coil Plates Assembly v
Rotors v
C.D.I, Regular Rectifiers and Coils v
Rubber Items v
Digital Speedometers v
Starter Motors v
Starter Motor Spares v
Blinkers v
Headlamps and Tall Lamps v
Rear View Mirrors v
Air Filter Elements and Oil Filters v
Hoods and Acrylic Side Sheets v
Forging Components (Gearsl, Shafts and Flanges) v
Handle Bar and Handlw Switches |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS AS ON AS
ON 31.03.2011
|
Particulars |
U.M. |
Installed
Capacity |
Actual Production |
|
|
Own Mfg. |
Job Work |
|||
|
Plastic Moulding Goods |
M.T. |
7021.00 |
2832.77 |
-- |
|
Box Packing |
Nos. |
2152800 |
1301676 |
-- |
|
Assembly and Packing |
Nos. |
6000000 |
5272486 |
-- |
|
Automobiles Seat Assembly |
Nos. |
1979120 |
908024 |
-- |
|
Air Filter Assembly |
Nos. |
1925485 |
1079690 |
-- |
|
Fly Wheel Magneto Assembly |
Nos. |
6423500 |
4422546 |
-- |
|
Capacitor Discharge Ignitions |
Nos. |
4205136 |
2742891 |
-- |
|
Regulator Rectifiers |
Nos. |
4025136 |
2949561 |
-- |
|
Starter Motor Assemblies |
Nos. |
1560000 |
1274370 |
-- |
|
Wiper Motor Assemblies |
Nos. |
790000 |
50358 |
-- |
|
Handle Bar Assembly |
Nos. |
1200000 |
849585 |
-- |
|
Switches |
Nos. |
1200000 |
127695 |
-- |
|
Mirror Assembly |
Nos. |
3850971 |
1102301 |
-- |
|
Exhaust Value |
Nos. |
6317149 |
3943792 |
-- |
|
Inlet Valve |
Nos. |
6000000 |
4723527 |
-- |
|
Steel Forged Products |
MT |
21815.58 |
4935.14 |
-- |
|
Crank Pin |
Nos. |
1800000 |
1678012 |
-- |
|
Dash Board Assembly |
Nos. |
100000 |
699501 |
-- |
|
Lamp Assembly |
Nos. |
18415000 |
6614708 |
546 |
|
Wind Power Generation |
Kwh |
18286500 |
10038711 |
-- |
Notes:
a) The Company’s products are exempt form licensing requirements under
new industrial policy in terms of Notification No. S.O. 477 (E) Dated 25th
July, 1991, hence licensed capacity not given.
b) Installed capacity is as certified by the Management and relied upon
by the auditors, this being a technical matter.
c) Production figures exclude production on account of inter-unit
transfers.
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
3000 (Approximately) |
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|
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Bankers : |
v
Citi Bank, City Group Center, C-61, Bandra Kurla
Complex, Mumbai- 400 051, v
HDFC
Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra, India v
The
Saraswat Co-Operative Bank Limited, Plot No. X-23, MIDC, Waluj, v
IDBI
Bank Limited, v
Citi
Bank, Parmar House, 2413, v
Corporation
Bank v
Punjab
National Bank v
The
Saraswat Co-Operative Bank Limited, Khadkeshwar, |
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Facilities : |
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Banking Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
Address : |
“ |
|
PAN.: |
AAHFP0187A |
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Subsidiaries: |
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Fellow Subsidiaries : |
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|
Enterprises owned or controlled by / or over which parties or their
relatives exercise significant influence where transaction have taken place |
·
Varroc
Polymers Private Limited ·
Varroc
Trading Private Limited ·
Varroc
Elastomers Private Limited ·
Plastic
Omnium Varroc Private Limited ·
Endurance
Technologies Limited ·
High
Technology Transmission Systems (India) Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity Shares |
Rs.10/- each |
Rs.110.000 Millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.310.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10077500 |
Equity Shares (During the year, the
Company allotted 9,730,000 equity shares as fully paid up bonus shares by
capitalization of profits transferred from Securities Premium and General
Reserve, pursuant to a shareholders' resolution passed at the Extra Ordinary
General Meeting held on January 24, 2011. The same were' allotted as fully paid-up for consideration other than cash.) |
Rs.10/- each |
Rs.100.800
Millions |
|
20000000 |
Preference Shares (The above Preference Shares
have been issued for consideration other than cash. Redeemable at par in
three equal installments at the end of 5th, 6th and 7th year respectively
from their dates of allotment.) |
Rs.10/- each |
Rs.200.000
Millions |
|
|
Total |
|
Rs.300.800 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 |
300.800 |
203.500 |
303.315 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3751.300 |
3221.200 |
1661.563 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4052.100 |
3424.700 |
1964.878 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1831.100 |
2330.600 |
2313.380 |
|
|
2] Unsecured Loans |
442.100 |
342.400 |
483.497 |
|
|
TOTAL BORROWING |
2273.200 |
2673.000 |
2796.877 |
|
|
DEFERRED TAX LIABILITIES |
240.700 |
204.000 |
212.558 |
|
|
|
|
|
|
|
|
TOTAL |
6566.000 |
6301.700 |
4974.313 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4491.200 |
4026.200 |
2929.532 |
|
|
Capital work-in-progress |
542.600 |
521.200 |
319.408 |
|
|
|
|
|
|
|
|
INVESTMENT |
137.700 |
129.100 |
1431.404 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
922.100
|
738.600 |
682.614
|
|
|
Sundry Debtors |
1452.300
|
857.000 |
321.170
|
|
|
Cash & Bank Balances |
207.800
|
305.600 |
121.311
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
1070.700
|
1278.200 |
575.468
|
|
Total
Current Assets |
3652.900
|
3179.400 |
1700.563 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2090.900
|
1389.700 |
1303.791 |
|
|
Other Current Liabilities |
83.800
|
77.100 |
46.816
|
|
|
Provisions |
83.700
|
87.400 |
55.987
|
|
Total
Current Liabilities |
2258.400
|
1554.200 |
1406.594 |
|
|
Net Current Assets |
1394.500
|
1625.200 |
293.969
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6566.000 |
6301.700 |
4974.313 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
|
|
|
|
Income |
12419.200 |
|
6601.900 |
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL (A) |
12419.200 |
8772.700 |
6601.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
5743.500 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
10896.200 |
7490.900 |
5743.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1523.000 |
1281.800 |
858.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
213.300 |
230.400 |
257.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1309.700 |
1051.400 |
600.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
426.800 |
375.300 |
352.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
882.900 |
676.100 |
248.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
225.800 |
179.800 |
87.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
657.100 |
496.300 |
161.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
655.800 |
242.500 |
113.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
12.300 |
8.200 |
7.700 |
|
|
|
Dividend on Preference Shares |
14.000 |
19.300 |
5.200 |
|
|
|
Dividend Tax |
0.100 |
0.000 |
(1.100) |
|
|
|
Transferred to General Reserve |
68.000 |
55.500 |
20.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1218.500 |
655.800 |
242.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value of export |
637.100 |
|
308.911 |
|
|
|
Others |
3.000 |
0.000 |
|
|
|
TOTAL EARNINGS |
640.100 |
572.590 |
308.911 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
199.100 |
173.300 |
103.639 |
|
|
|
Raw Material |
932.800 |
594.800 |
422.306 |
|
|
|
Stores & Spares |
9.700 |
2.800 |
2.537 |
|
|
TOTAL IMPORTS |
1141.600 |
770.900 |
528.482 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
63.81 |
1422.19 |
470.47 |
|
|
Particulars |
|
|
31.03.2012 |
|
|
|
|
|
|
Sales Turnover (Approximately) |
|
|
14500.000 |
|
|
|
|
|
The above information has been parted by Mr. Amit Dargad (Deputy Manager
Finance)
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.29
|
5.66 |
2.44
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.84
|
9.38 |
5.36
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.20
|
0.13
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.56
|
0.78
|
1.42
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.62
|
2.05
|
1.21
|
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
|
Particulars |
31.03.2011
|
31.03.2010 |
31.03.2009 |
|
|
Rs. in Millions |
||
|
Sundry Creditors |
|
|
|
|
Micro and Small Enterprises |
281.500
|
0.000 |
0.000 |
|
Other than Micro and Small |
1809.400
|
1389.700 |
1303.791 |
|
TOTAL |
2090.900
|
1389.700 |
1303.791 |
|
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 |
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 |
No |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
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 |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
PERFORMANCE
Higher demand from domestic
customers could be fully met due to prudent and timely enhancement of the installed
capacities in Electrical and Valves Divisions. The result was an impressive
growth in Net Sales and Other Income by 41.6% to Rs.12420.000 millions from
Rs.8770.000 millions during last year. Though Material cost went up by 3% of
Net Sales, Selling and administration expenses were down by 1% of Net Sales
mainly due to rationalization and austerity measures. Interest cost also came
down by 7.43% to Rs.213.300 millions as against Rs.230.400 millions in the
previous year as a result of repayment of major long term loans. Exports were
moderately higher by 11% at Rs.637.000 millions from Rs.573.000 millions in the
previous year.
Profit after Tax saw a
healthy growth of 32.4% at Rs.657.100 millions as against Rs.496.300 millions
in the previous year. The operating results are in line with budgets.
The Company has drawn
ambitious plans to expand its activities organically as well as in-organically.
Towards its plans for inorganic growth, the Company is on the look out for some
strategic domestic as well overseas acquisitions/ Joint Ventures in the fields
of components for LMV, LCV, HCVs and related fields. This will also help the
company to acquire new customers and technologies in short span of time, which
otherwise have fairly long gestation period. The Directors are hopeful of
closing certain good deals during the current year.
FUTURE
OUTLOOK
The global industrial
growth appears to be running out of stream, potentially taking the world closer
to slow down once again. Industrial output has decelerated in growth engines
like Europe,
In
Vehicle sales are slowing
down due to combined effect of spiraling fuel prices, hardening interest rates,
credit-scarcity, reduction in financing options and increasing prices of
vehicles necessitated by rising prices of raw materials/inputs. High inflation
is also dampening sentiment.
Margins are already under
pressure and rising cost of input materials will add to the industry's woes
since it will not be possible for vehicle manufacturers to absorb the higher
manufacturing costs. This will also give them less elbow room to offer
discounts.
Car manufacturers are
already complaining of a drop in footfalls at showrooms. Car sales grew 7% in
May, the slowest pace in two years, threatening to slip even further in the
coming months. Analysts have said that the numbers will stay depressed in the
ensuing months due to the combined build up of negatives and that the only
comforting factor for the industry is that these months are traditionally weak
months.
Demand which rocked at 30%
last fiscal has been waning and is expected in present fiscal to be less than
half of last fiscal.
EUROPEAN
OPERATIONS
As reported last year,
worldwide recession in 2009 which affected virtually the whole world, had also
impacted Their European operations. To cope up with the falling revenues,
Company's Step down subsidiary IMES, SpA Italy approached the financing bank
for restructuring of its debt; the restructuring has been successfully closed
and new repayment terms have become effective. However, during the year under
review the operations of IMES SpA have shown remarkable recovery in the light
of renewed demand from its customers. The Turnover of IMES jumped from Euro 29
Million last year to Euro 53 Million in the year under review. The IMES
operations are expected to show steady growth in the near future.
NEW
ACQUISITION IN
In order to cope with the
demand from it’s forging customers in
With this acquisition,
Their European operations will be able to fulfill the increasing demand from
existing customers and will also increase the top line with addition of new
customers.
UNSECURED LOAN
|
Unsecured Loan |
As
on 31.03.2011 (Rs.
in Millions) |
As
on 31.03.2010
(Rs. in Millions) |
|
From Directors/Shareholder |
14.700 |
14.700 |
|
Sales Tax Deferred
Liability [Due within one year
Rs.1.700 millions (Previous Year Rs.0.300 millions)] |
327.400 |
327.700 |
|
From others (Pre shipment
Advance) [Due within one year Rs.100.000
millions (Previous Year Rs. Nil)] |
100.000 |
0.000 |
|
Total |
442.100 |
342.400 |
Contingent Liabilities not
provided for in respect of
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
Rs. in Millions |
|
|
Disputed Excise and Service Tax matters |
2.400 |
2.700 |
|
Corporate Guarantees |
191.100 |
182.600 |
|
Guarantees given in respect of loans taken by
subsidiaries |
50.000 |
30.000 |
|
Income Tax matters |
23.300 |
23.300 |
|
Sales Tax matters |
3.100 |
25.400 |
|
Others |
11.500 |
3.000 |
|
TOTAL |
281.400 |
267.000 |
Notes
- The Company has imported certain machinery under
the Export Promotion Capital Goods (EPCG) Scheme and accordingly, has an export
obligation of USD 44.500 millions (Previous Year USD 17.500 millions).
- Bank Guarantees outstanding Rs.12.200 millions
(Previous Year 14.100 millions )
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U28920MH1988PTC047335 |
|
Name of the
company |
VARROC
ENGINEERING PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
E-4, MIDC, Waluj,
|
|
This form is for |
Creation of
Charge |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
The Saraswat
Co-Operative Bank Limited, Plot No. X-23, MIDC, Waluj, |
|
Nature of instrument
creating charge |
Agreement of
Hypothecation of Movable Property (For L/C on D/A basis) |
|
Date of
instrument Creating the charge |
06.12.2010 |
|
Amount secured by
the charge |
Rs. 226.800
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest As per Bank Rules Terms of
Repayment As per Bank Rules Margin Margin: 5% Extent and
Operation of the charge The borrower do
herby hypothecate to and in favour of the Bank on exclusive charge basis all
the machineries to be imported/ procured under L/C and lying and being at
Borrower’s place of business at M-191/3, MIDC, Waluj, Aurangabad |
|
Short particulars
of the property charged |
The borrower do
herby hypothecate to and in favour of the Bank on exclusive charge basis all
the machineries to be imported/ procured under L/C and lying and being at
Borrower’s place of business at M-191/3, MIDC, Waluj, Aurangabad |
FIXED ASSETS:-
Tangible Assets
v Lease hold land
v Freehold land
v
v
v Plant and Machinery
v Factory Equipment
v Electrical Installation
v Computer
v Mould and Dies
v Electrical Fittings
v Vehicles
v Office Equipment
v Furniture Fixtures
v
Tools and Instruments
Intangible Assets
v
Computer Software
v
Technical Knowhow
v
Corporate Logo
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.53.14 |
|
|
1 |
Rs.83.27 |
|
Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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.