1. Summary Information
|
|
|
Country |
|
|
Company Name |
MRF LIMITED |
Principal Name 1 |
Mr. K. M. Mammen |
|
Status |
Excellent |
Principal Name 2 |
Mr. Arun Mammen |
|
|
|
Registration # |
18-004306 |
|
Street Address |
New No. 114, (Old
No. 124), Greams Road, Chennai – 600006, Tamilnadu |
||
|
Established Date |
05.11.1960 |
SIC Code |
-- |
|
Telephone# |
91-44-28292777 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-44-28295087/ 28294089 28291844/ 0562 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
New Pneumatic Tyres of Rubber |
|
|
# of employees |
13812
[Approximately] |
Product Name 2 |
Inner Tubes of Rubber |
|
Paid up capital |
Rs.42,400,000/-
|
Product Name 3 |
-- |
|
Shareholders |
Shareholding of
Promoter and Promoter Group 27.27%, Public Shareholding 72.73% |
Banking |
State Bank of India |
|
Public Limited Corp. |
No |
Business Period |
53 Years |
|
IPO |
No |
International Ins. |
- |
|
Public |
No |
Rating |
Aa (83) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
|
India
|
MRF Corporation Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
18,135,200,000 |
Current Liabilities |
23,017,900,000 |
|
Inventories |
16,455,900,000 |
Long-term Liabilities |
16,314,300,000 |
|
Fixed Assets |
29,138,000,000 |
Other Liabilities |
4,212,500,000 |
|
Deferred Assets |
000 |
Total Liabilities |
43,544,700,000 |
|
Invest& other Assets |
8,393,600,000 |
Retained Earnings |
28,535,600,000 |
|
|
|
Net Worth |
28,578,000,000 |
|
Total Assets |
72,122,700,000 |
Total Liab. &
Equity |
72,122,700,000 |
|
Total Assets (Previous Year) |
63,270,600,000 |
|
|
|
P/L Statement as of |
30.09.2012 |
(Unit: Indian Rs.) |
|
|
Sales/ Total Income |
119,021,900,000 |
Net Profit |
5,723,600,000 |
|
Sales(Previous yr)/ Total Income |
97,684,800,000 |
Net Profit(Prev.yr) |
6,194,200,000 |
MIRA
INFORM REPORT
|
Report Date : |
19.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
MRF LIMITED |
|
|
|
|
Registered
Office : |
New No. 114, (Old
No. 124), Greams Road, Chennai – 600006, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2012 |
|
|
|
|
Date of
Incorporation : |
05.11.1960 |
|
|
|
|
Com. Reg. No.: |
18-004306 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.42.400
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25111TN1960PLC004306 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEM07088E CHEM06754G CHEM04457F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM4154G |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
|
|
|
|
No. of Employees
: |
15494 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (83) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 114000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track
record. The company has a brand image in the mind of consumer. It is one of the
leading brand company in the tyre sector. There appears slight dip in the profitability of the company during
current year. However financial position of the company appears to be sound.
Fundamentals of the company are strong and healthy. Trade relations are fair.
Business is active. Payments are reported to be regular and as per
commitment. The company can be considered good for normal 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
AAA [Long Term Bank Facilities] |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of
financial obligation. It carry lowest credit risk. |
|
Date |
August 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.
LOCATIONS
|
Registered Office : |
New No. 114, (Old
no. 124) Greames Road, Chennai – 600 006, Tamilnadu, India |
|
Tel. No.: |
91-44-28292777 |
|
Fax No.: |
91-44-28295087/
28294089 28291844/ 0562 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
Tiruvottiyur, Chennai, |
|
|
|
|
Factory 2: |
Vadavathoor, |
|
|
|
|
Factory 3: |
Usgao, Ponda, |
|
|
|
|
Factory 4: |
Icchiputhur, Arakonam, |
|
|
|
|
Factory 5: |
|
|
|
|
|
Factory 6: |
Sadasivapet, Medak, Andhra Pradesh, India |
|
|
|
|
Factory 7: |
Naranamangalam Village and Post, Kunnam Taluk, Perambalur District, (Near Trichy) Tamilnadu, India |
DIRECTORS
AS ON 30.09.2012
|
Name : |
Mr. K. M. Mammen |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Arun Mammen |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. K. M. Philip |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Rahul Mammen Mappillai |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Dr. K. C. Mammen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Jacob |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. Sridhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay R. Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ranjit I. Jesudasen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Sharad Vaidya
|
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Salim Joseph Thomas |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Jacob Kurian |
|
Designation : |
Director |
|
|
|
|
Name : |
M. Meyyappan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Mannath |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Kurian and Kurian |
|
Designation : |
Legal Advisors |
SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
564366 |
13.31 |
|
|
570399 |
13.45 |
|
|
1134765 |
26.76 |
|
|
|
|
|
|
21625 |
0.51 |
|
|
21625 |
0.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
1156390 |
27.27 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
289788 |
6.83 |
|
|
5150 |
0.12 |
|
|
165170 |
3.89 |
|
|
195212 |
4.60 |
|
|
655320 |
15.45 |
|
|
|
|
|
|
1085432 |
25.59 |
|
|
|
|
|
|
937356 |
22.10 |
|
|
406645 |
9.59 |
|
|
2429433 |
57.28 |
|
Total Public shareholding (B) |
3084753 |
72.73 |
|
Total (A)+(B) |
4241143 |
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) |
4241143 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Products : |
|
||||||||||||||||||||||
|
|
|
PRODUCTION STATUS (AS ON 30.09.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automobile Tyres |
Nos. |
@ |
34300000 |
34771158 |
|
Automobile Tubes |
Nos. |
@ |
33100000 |
31381790 |
|
Tread Rubber |
MT |
7946 |
8943 |
1056 |
|
Pre-cured Treads |
MT |
@ |
24000 |
7683 |
|
Conveyor Belting |
MT |
@ |
3000 |
2042 |
|
Specialty Surface
Coatings |
KL |
@ |
2000 |
1484** |
@ Not Applicable,
since delicensed.
+ On 3 shifts per day
basis for 300 days per annum.
** Outsourced
production.
Figures in brackets are in respect of previous year.
GENERAL INFORMATION
|
No. of Employees : |
15494 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
·
State
Bank of India, Madame Cama Road, Mumbai ·
National
Bank of Abu –Dhabi – Dubai ·
Standard
Chartered Bank – Dubai ·
Bank
for Foreign Trade of Vietnam ·
Syndicate
Bank |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs. In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
·
Sastri and Shah Chartered Accountants Chennai, ·
M. M.
Nissim and Company Chartered Accountants Mumbai, |
|
|
|
|
Subsidiaries : |
·
MRF Corporation Limited ·
MRF International Limited ·
MRF Lanka (Private) Limited |
CAPITAL STRUCTURE
AS ON 30.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs.90.000 Millions |
|
100000 |
Taxable, Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
|
Total |
|
Rs.100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4241143 |
Equity Shares |
Rs.10/- each |
Rs.42.411
Millions |
|
|
|
|
|
RIGHTS, PREFERENCES
AND RESTRICTIONS ATTACHED TO SHARES:
The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 shareholding.
SHAREHOLDERS HOLDING
MORE THAN 5 PERCENT OF THE EQUITY SHARES
|
Name of Shareholder |
No. of Shares held |
|
Comprehensive Investment and Finance Company Private Limited |
422,069 |
|
MOWI Private Limited |
507,984 |
|
Enam Shares and Securities Private Limited |
266,713 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
|
30.09.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
42.400 |
|
(b) Reserves & Surplus |
|
|
28535.600 |
|
(c) Money received
against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
|
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
|
28578.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
|
11027.100 |
|
(b) Deferred tax liabilities (Net) |
|
|
1867.200 |
|
(c) Other long
term liabilities |
|
|
9080.300 |
|
(d) long-term
provisions |
|
|
872.900 |
|
Total Non-current
Liabilities (3) |
|
|
22847.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
|
5287.200 |
|
(b)
Trade payables |
|
|
9394.300 |
|
(c)
Other current liabilities |
|
|
4543.300 |
|
(d) Short-term
provisions |
|
|
1472.400 |
|
Total Current
Liabilities (4) |
|
|
20697.200 |
|
|
|
|
|
|
TOTAL |
|
|
72122.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
29078.100 |
|
(ii) Intangible
Assets |
|
|
59.900 |
|
(iii)
Capital work-in-progress |
|
|
4146.500 |
|
(iv) Intangible assets under development |
|
|
0.000 |
|
(b) Non-current
Investments |
|
|
715.400 |
|
(c) Deferred tax
assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
572.300 |
|
(e) Other
Non-current assets |
|
|
304.600 |
|
Total Non-Current
Assets |
|
|
34876.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
|
3531.700 |
|
(b) Inventories |
|
|
16455.900 |
|
(c)
Trade receivables |
|
|
14540.900 |
|
(d) Cash
and cash equivalents |
|
|
611.000 |
|
(e)
Short-term loans and advances |
|
|
2034.200 |
|
(f)
Other current assets |
|
|
72.200 |
|
Total
Current Assets |
|
|
37245.900 |
|
|
|
|
|
|
TOTAL |
|
|
72122.700 |
|
SOURCES OF FUNDS |
|
30.09.2011 |
30.09.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
42.400 |
42.400 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
22935.300 |
16864.400 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.0000 |
|
|
NETWORTH |
|
22977.700 |
16906.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
11688.700 |
4879.600 |
|
|
2] Unsecured Loans |
|
10759.100 |
8201.200 |
|
|
TOTAL BORROWING |
|
22447.800 |
13080.800 |
|
|
DEFERRED TAX LIABILITIES |
|
1418.000 |
0.000 |
|
|
DEFFERED PAYMENT CREDIT |
|
404.300 |
463.800 |
|
|
|
|
|
|
|
|
TOTAL |
|
47247.800 |
30451.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
19713.800 |
13289.100 |
|
|
Capital work-in-progress |
|
11352.500 |
4977.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
726.900 |
726.900 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
150.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
15260.200
|
11106.800 |
|
|
Sundry Debtors |
|
13080.900
|
8114.900 |
|
|
Cash & Bank Balances |
|
572.400
|
451.800 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
2563.900
|
1272.900 |
|
Total
Current Assets |
|
31477.400 |
20946.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
8375.300
|
6633.300 |
|
|
Other Current Liabilities |
|
5571.900
|
1293.400 |
|
|
Provisions |
|
2075.600
|
1711.500 |
|
Total
Current Liabilities |
|
16022.800
|
9638.200 |
|
|
Net Current Assets |
|
15454.600
|
11308.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
47247.800 |
30451.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
118701.800 |
97353.400 |
74527.200 |
|
|
|
Export Incentives |
0.000 |
78.300 |
110.200 |
|
|
|
Other Income |
320.100 |
253.100 |
181.100 |
|
|
|
TOTAL (A) |
119021.900 |
97684.800 |
74818.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
83442.700 |
71070.700 |
50153.100 |
|
|
|
Purchase of Stock-in-Trade |
264.800 |
0.000 |
0.000 |
|
|
|
Employee benefits expense |
5136.900 |
0.000 |
0.000 |
|
|
|
Other expenses |
17425.700 |
18313.400 |
16080.300 |
|
|
|
Exceptional Item Excess Depreciation reversal in respect of earlier year |
0.000 |
(4042.300) |
0.000 |
|
|
|
Changes in Inventories of Finished Goods, Stock-in-process & Stock-in-Trade |
(178.300) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
106091.800 |
85341.800 |
66233.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12930.100 |
12343.000 |
8585.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1587.800 |
930.200 |
631.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11342.300 |
11412.800 |
7954.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3011.100 |
2476.300 |
2607.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8331.200 |
8936.500 |
5346.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2607.600 |
2742.300 |
1806.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5723.600 |
6194.200 |
3539.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
NA |
25.400 |
25.400 |
|
|
|
Final Proposed Dividend |
NA |
80.600 |
80.600 |
|
|
|
Special Proposed Dividend |
NA |
0.000 |
106.000 |
|
|
|
Tax Thereon |
NA |
17.300 |
35.200 |
|
|
|
Debenture Redemption Reserve |
NA |
179.400 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
5891.500 |
3292.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
12805.500 |
8233.000 |
6692.700 |
|
|
|
Others |
12.800 |
3.800 |
4.100 |
|
|
TOTAL EARNINGS |
12818.300 |
8236.800 |
6696.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
31175.700 |
23076.600 |
18182.200 |
|
|
|
Components & Spare Parts |
412.400 |
381.700 |
146.100 |
|
|
|
Capital Goods |
1448.200 |
3390.100 |
1515.500 |
|
|
TOTAL IMPORTS |
33036.300 |
26848.400 |
19843.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1349.52 |
1460.50 |
834.63 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.12.2012 |
31.03.2013 |
|
Net Sales |
|
30257.500 |
29063.000 |
|
Total Expenditure |
|
26226.500 |
24621.000 |
|
PBIDT (Excl OI) |
|
4031.000 |
4442.000 |
|
Other Income |
|
29.300 |
53.700 |
|
Operating Profit |
|
4060.300 |
4495.700 |
|
Interest |
|
498.500 |
496.100 |
|
PBDT |
|
3561.800 |
3999.600 |
|
Depreciation |
|
891.900 |
936.000 |
|
Profit Before Tax |
|
2669.900 |
3063.600 |
|
Tax |
|
867.700 |
957.500 |
|
Profit After Tax |
|
1802.200 |
2106.100 |
|
Net Profit |
|
1802.200 |
2106.100 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
PAT / Total Income |
(%) |
4.81
|
6.34
|
4.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.02
|
9.18
|
7.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.07
|
17.46
|
15.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.39
|
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.57
|
1.74
|
1.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.36
|
1.96
|
2.17 |
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 |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 LOAN:
(Rs. In Millions)
|
Particulars |
As
on 30.09.2012 |
As
on 30.09.2011 |
|
LONG-TERM BORROWINGS |
|
|
|
Term Loan from a Bank |
|
|
|
Buyers Line of Credit |
833.800 |
833.800 |
|
Fixed Deposits |
171.500 |
377.100 |
|
Sales Tax Deferral Scheme |
705.100 |
770.000 |
|
Others |
|
|
|
Deferred Payment Credit |
270.500 |
340.000 |
|
Total |
1980.900 |
2320.900 |
FINANCIAL RESULTS
During the year, The Company’s turnover increased by around 23% to Rs.130540.300 Millions from Rs.106370.300 Millions in the previous
year. Across the board, there were positive increases in all segments with an 8% increase in total tyre production. Fluctuations in the raw material prices, increase in power and fuel cost and depreciation of rupee, have impacted the financial performance of the Company. Despite the above, The Company could achieve improved results, considering the challenging circumstances, due to better operating efficiencies and cost cutting measures which the Company has undertaken over a period of time.
During the year, The Company commenced production at its new plant at Tiruchirappalli in Tamil Nadu. This new modern plant along with their existing factories will help further consolidate their market leadership.
Two interim dividends of Rs. 3 each per share (30% each) for the year ended 30th September, 2012 were declared by the Board of Directors on 25-07-2012 and on 25-10-2012. The Board of Directors is now pleased to recommend a final dividend of Rs. 19 per share (190%) on the paid up equity share capital of the Company, for consideration and approval of the shareholders at the Annual General Meeting. With this, the total dividend for the entire year works out to Rs. 25 per share (250%). The total amount of dividends aggregates to Rs. 106.000 Millions.
After making provision for taxation, debenture redemption reserve and proposed dividend, an amount of Rs. 5312.300 Millions be transferred to General Reserve. With this, the Company’s Reserves and Surplus stands at Rs. 28535.600 Millions.
PROSPECTS FOR THE
CURRENT YEAR
While the demand outlook for tyres appear favourable with an 8 to 10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the government to improve the road infrastructure. Also, the government should study the inverted tax issue and take corrective action by providing a level playing field in
the tyre industry.
The Company hopes to record satisfactory results on account of MRF’s high brand preference and trust reposed by customers in MRF products.
AWARDS RECEIVED
DURING THE YEAR
During the year, MRF was awarded the “Top Export Award [Auto Tyre Sector]” by the All India Rubber Industries Association (AIRIA) yet another time during the period.
MANAGEMENT DISCUSSION
AND ANALYSIS
(Within the limits set by the Company’s competitive position) The core business of MRF is manufacturing, distribution and sale of tyres for various kinds of vehicles. The management discussion and analysis given below discusses the key issues for various sectors of the business.
TYRE INDUSTRY
STRUCTURE AND DEVELOPMENT
The turnover of the Indian tyre industry is valued at Rs. 410000.000 Millions in the period 2011-2012. Exports accounted for Rs.42000.000 Millions. 1254 lakh tyres were produced by the tyre companies. Seven top companies produce 80% of the total production.
Truck and bus tyres constitute 55% of the tyre industry turnover. Around 57% of the turnover is sold in the replacement market which is competitive but margins are better. The OE segment (30% of the turnover) cannot be ignored as volumes are high but margins are less as prices are dependent more on the manufacturers of vehicles. In the passenger car group, 47 % of tyres are sold to OEMs and 49% in the replacement segment.
The tyre industry is raw material intensive and predominantly cross-ply or bias-ply tyres are manufactured. The truck, bus and LCV segments continue to be cross-ply based due to poor road conditions, low OE fitment and high initial cost. Passenger tyres are currently 98% radial tyres. Radialisation in the light commercial vehicle group is 22% and in heavy vehicles (truck and bus) the level is 17%. Radialisation in commercial vehicles is expected to grow by 3% to 4% during 2012-13.
During 2011-12, in the vehicle manufacturing sector, there has been a decrease of 3% in the production of heavy commercial vehicles and a 30% increase in light commercial vehicles. There was an 8% increase in the small commercial vehicle segment. In the passenger car group, production has remained flat whereas in the utility group, there has been an increase of 39% over the last year. In two wheelers, scooters witnessed a 25% increase whilst in the motorcycle segment production increased by 5%. In the farm segment there was a 2% increase in production over 2010-11.
The tyre industry provides direct and indirect employment to one million people including dealers, retreaders and truck operators. The truck operations are controlled by 2.6 million small operators.
There are around 5000 tyre dealers spread throughout the country. Most of them sell multiple tyre brands.
SEGMENT WISE AND
PRODUCT WISE PERFORMANCE
During the period 2011-12, MRF achieved a turnover of Rs. 130540.300 Millions. This is an increase of around 23 % over the previous year. Across the board, there were positive increases in all segments with an 8% increase
in total tyre production. In the heavy commercial vehicle group, the largest segment, the increase was 7% over the last year. In the motorcycle and scooter segments, the increases over the previous year were 9% and 26% respectively. The passenger car group registered an increase of 7%. In the farm group, production increased in the tractor front group by 6% and by 18% in the tractor rear categories.
EXPORTS
Facing global recession and a challenging and competitive year, MRF posted a growth of 56% over the previous year 2010-11. In the year gone by, continued volatility in raw material prices and increased input costs definitely affected margins. MRF’s strong distributor network worldwide and brand presence in key markets contributed to a 23% growth in the heavy commercial vehicle segment.
OUTLOOK
While the demand outlook for tyres appear favourable with an 8 to10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment, and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the Government to improve the road infrastructure. Also, the Government should study the inverted tax issue and take corrective action by providing a level playing field for the tyre industry.
PERFORMANCE OF THE
COMPANY
The sales turnover of the Company during the year increased by around 23% from Rs. 106370.300 Millions in 2010-11 to Rs.130540.300 Millions in 2011-12. Earnings before depreciation and interest (EBIDTA) amounted to Rs. 12930.100 Millions against Rs. 8347.200 Millions in the previous year. After providing for depreciation and interest, the profit before tax for the year ended 30th September 2012 was Rs. 8331.200 Millions as compared to Rs. 4894.200 Millions in the previous year. During the previous year 2010-11, there was an exceptional credit of Rs. 4042.300 Millions representing reversal of excess depreciation of earlier years, due to change in method of depreciation from Written Down Value (WDV) to Straight Line Method (SLM). After making provision for income tax, the net profit for the year stood at Rs. 5723.600 Millions as compared to Rs. 6194.200 Millions in the previous year.
CONTINGENT
LIABILITIES NOT PROVIDED FOR: (AS ON 30.09.2012)
(i) Guarantees given by the Banks – Rs.271.300 Millions (Previous Year – Rs. 207.300 Millions).
(ii) Letters of Credit issued by the Banks – Rs. 1831.400 Millions (Previous Year – Rs. 2260.200 Millions).
(iii) Customs Duty on import of equipments and spare parts under EPCG Scheme – Rs. 946.200 Millions (Previous Year – Rs. 836.600 Millions).
(iv) Bills discounted with a bank - Rs 58.900 Millions (Previous Year - Rs. Nil).
(v) Claims not acknowledged as debts:
(a) Disputed Sales Tax demands pending before the Appellate Authorities – Rs. 17.300 Millions (Previous Year – Rs. 30.700 Millions).
(b) Disputed Excise/Customs Duty demands pending before the Appellate Authorities/High Court – Rs. 786.500 Millions (Previous Year – Rs. 804.300 Millions).
(c) Disputed Income Tax Demands – Rs.488.700 Millions (Previous Year – Rs. 375.200 Millions). Against the said demand the Company has deposited an amount of Rs. 459.300 Millions.
(d) Contested ESI Demands pending before High Court - Nil (Previous Year – Rs. 0.600 Millions).
FIXED ASSETS:
· Land
· Buildings
· Plant and Machinery
· Moulds
· Furniture and Fixtures
· Computer
· Office Equipment
· Vehicles
STATEMENT OF STANDALONE UNAUDITED
RESULT FOR THE QUARTER AND SIX MONTHS ENDED 31ST MARCH, 2013
Rs. in Millions
|
Particular |
Quarter Ended |
Six Months Ended |
|
|
|
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
Income from Operations |
|
|
|
|
Gross Sales/Income from Operations |
32273.200 |
33591.900 |
65865.100 |
|
Less: Excise duty |
3225.500 |
3357.200 |
6582.700 |
|
Net Sales/Income from Operations |
29047.700 |
30234.700 |
59282.400 |
|
Other Operating Income |
15.300 |
22.800 |
38.100 |
|
Total Income From Operations (Net) |
29063.000 |
30257.500 |
59320.500 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Cost
of materials consumed |
18234.700 |
20185.200 |
38419.900 |
|
Purchase
of stock in trade |
78.200 |
53.800 |
132.000 |
|
Changes
in inventories of finished goods, work in progress and stock in trade |
498.000 |
(2.300) |
495.700 |
|
Employee
benefits expenses |
1359.500 |
1344.200 |
2703.700 |
|
Depreciation
and amortization expenses |
936.000 |
891.900 |
1827.900 |
|
Other
expenses |
4450.600 |
4645.600 |
9096.200 |
|
Total Expenses |
25557.000 |
27118.400 |
52675.400 |
|
|
|
|
|
|
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
3506.000 |
3139.100 |
6645.100 |
|
|
|
|
|
|
Other
Income |
53.700 |
29.300 |
83.000 |
|
|
|
|
|
|
Profit
Before Interest and Exceptional Items (3+4) |
3559.700 |
3168.400 |
6728.100 |
|
|
|
|
|
|
Interest |
496.100 |
498.500 |
994.600 |
|
|
|
|
|
|
Profit
After Interest but before Exceptional Items (5-6) |
3063.600 |
2669.900 |
5733.500 |
|
|
|
|
|
|
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
Profit
from Ordinary Activities before Tax (7+8) |
3063.600 |
2669.900 |
5733.500 |
|
|
|
|
|
|
Tax
Expense |
957.500 |
867.700 |
1825.200 |
|
|
|
|
|
|
Net
Profit from Ordinary Activities after Tax (9-10) |
2106.100 |
1802.200 |
3908.300 |
|
|
|
|
|
|
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
Net
Profit for the period (11-12) |
2106.100 |
1802.200 |
3908.300 |
|
|
|
|
|
|
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
42.400 |
42.400 |
42.400 |
|
|
|
|
|
|
Paid-up
Debt Capital of the Company * |
7000.000 |
7000.000 |
7000.000 |
|
|
|
|
|
|
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
Debenture Redemption Reserve(Cumulative) |
611.100 |
539.200 |
611.100 |
|
|
|
|
|
|
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualized |
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
496.58 |
424.94 |
921.53 |
|
b)
Basic and diluted EPS after extraordinary items |
496.58 |
424.94 |
921.53 |
|
|
|
|
|
|
Debt Equity Ratio** |
-- |
-- |
0.32 |
|
|
|
|
|
|
Debt Service Coverage Ratio*** |
-- |
-- |
7.37 |
|
|
|
|
|
|
Interest Service Coverage Ratio**** |
-- |
-- |
8.86 |
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
-Number
of Shares |
3087311 |
3088911 |
3087311 |
|
-
Percentage of Shareholding |
72.79 |
72.83 |
72.79 |
|
|
|
|
|
|
Promoters and Promoter Group
Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
-
Number of Shares |
13550 |
13550 |
13550 |
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
1.17 |
1.18 |
1.17 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
0.32 |
0.32 |
0.32 |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
- Number
of Shares |
1140282 |
1138682 |
1140282 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
98.83 |
98.82 |
98.83 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
26.89 |
26.85 |
26.89 |
|
Particulars |
Quarter Ended 31.03.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the
quarter |
Nil |
STANDALONE STATEMENT OF
ASSETS AND LIABILITIES
Rs. in Millions
|
PARTICULARS |
31.03.2013 Unaudited |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
42.400 |
|
Reserve & surplus |
32443.900 |
|
Sub-total
- Shareholders' funds |
32486.300 |
|
Non - current liabilities |
|
|
Long term borrowings |
10269.900 |
|
Deferred tax liability (net) |
2171.000 |
|
Other long-term liabilities |
9258.700 |
|
Long term provisions |
716.200 |
|
Sub-total
- Non-current liabilities |
22415.800 |
|
Current liabilities |
|
|
Short term borrowings |
4153.700 |
|
Trade payables |
8976.300 |
|
Other current liabilities |
4443.800 |
|
Short term provisions |
1150.500 |
|
Sub-total
- Current liabilities |
18724.300 |
|
|
|
|
Total -
Equity & Liabilities |
73626.400 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
33058.300 |
|
Capital work in progress |
0.000 |
|
Non-current investment |
755.400 |
|
Long term loans & advances |
656.700 |
|
Other non-current assets |
325.500 |
|
Sub-total
- Non-current Assets |
34795.900 |
|
Current
assets |
|
|
Current investments |
5781.700 |
|
Inventories |
15618.500 |
|
Trade receivables |
13661.100 |
|
Cash & bank balances |
895.800 |
|
Short term loans & advances |
2189.300 |
|
Other current assets |
684.100 |
|
Sub-total
- Current Assets |
38830.500 |
|
|
|
|
Total –
Assets |
73626.400 |
NOTES:
1) The above unaudited standalone results have been subjected to Limited
Review by the Statutory Auditors, reviewed by the Audit Committee and approved
by the Board of Directors at its meeting held on 18th April,2013.
2) The Company is
dealing mainly in rubber products and has no other reportable segment.
* Paid up Debt
Capital represents Secured Redeemable Non-Convertible Debentures.
** Debt to Equity:
Long Term Debts/Total Net Worth
*** Debt Service Coverage
Ratio: EBDIT/(Interest + Principal Repayment during the year)
****Interest Service Coverage Ratio: EBDIT/Interest Expenses
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.59.71 |
|
|
1 |
Rs.90.59 |
|
Euro |
1 |
Rs.78.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
83 |
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.