MIRA
INFORM REPORT
|
Report Date : |
22.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
VARROC
ENGINEERING PRIVATE LIMITED (w.e.f. 24.01.2001) |
|
|
|
|
Formerly Known
As : |
VARROC
ENGINEERING LIMITED |
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|
|
Registered
Office : |
E-4, MIDC,
Industrial Area POB 958, Waluj, Aurangabad – 431 136, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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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.300.775 Millions |
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|
|
|
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 19780000 |
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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 company has recorded better sales turnover during 2012. The 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. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-240-6648226 |
|
Date : |
21.06.2013 |
LOCATIONS
|
Registered/ Corporate Office/ Factory 1 : |
E-4, MIDC,
Industrial Area POB 958, Waluj, Aurangabad – 431 136, Maharashtra, India |
|
Tel. No.: |
91-240-2556227/ 2556228/
2555441/ 2564540/ 6648000 |
|
Fax No.: |
91-240-2564540/
2555987/ 2554487 |
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E-Mail : |
|
|
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 |
DIRECTORS
AS ON 06.08.2012
|
Name : |
Mr. Naresh
Adishwarlal Chandra |
|
Designation : |
Director |
|
Address : |
Bhagwati Bhavan, 31/B,
M.L. Dahanukar Marg, Mumbai – 400 026, |
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Date of Birth/Age : |
11.02.1935 |
|
Date of Appointment : |
11.05.1988 |
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PAN No.: |
AACPC7536R |
|
DIN No.: |
00027696 |
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|
|
|
Name : |
Mr. Tarang
Nareshchandra Jain |
|
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. |
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Experience : |
28 Years |
|
Date of Appointment : |
11.05.1988 |
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PAN No.: |
AAXPJ4083B |
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DIN No.: |
00027505 |
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|
|
|
Name : |
Mr. Narendra
Kumar Jain |
|
Designation : |
Director |
|
Address : |
Flat No.82B, 8th
Floor, Meher Apartments, |
|
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 |
|
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 |
|
|
|
|
Name : |
Mr. Murlidharan
Kalyanasundaram |
|
Designation : |
Whole Time
Director |
|
Address : |
25, 4th
Main Road, TNHB Colony, Kothurpuram, Chennai-600085, Tamilnadu, India |
|
Date of Birth/Age : |
17.02.1955 |
|
Date of Appointment : |
20.01.2012 |
|
PAN No.: |
AANPM1911B |
|
DIN No.: |
05119127 |
|
|
|
|
Name : |
Mr. Vineet Sahni |
|
Designation : |
Whole Time
Director |
|
Address : |
Block C-11, 911,
Scottish Villa, Palam Vihar, Gurgao-122017, Haryana, India |
|
Date of Birth/Age : |
01.04.1965 |
|
Date of Appointment : |
20.01.2012 |
|
PAN No.: |
AALPS9932N |
|
DIN No.: |
03616096 |
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 |
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|
|
|
Name : |
Mr. Amit |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 06.08.2012
|
Names of Shareholders |
No. of Shares |
|
Naresh Chandra |
1157100 |
|
Naresh Chandra |
435000 |
|
Naresh Chandra |
14500 |
|
Suman Jain |
1207000 |
|
Tarang Jain |
5970500 |
|
Tarang Jain |
814900 |
|
Tarang Jain |
14500 |
|
Varroc Polymers Private Limited, India |
464000 |
|
|
|
|
TOTAL
|
10077500 |
|
Names of Preferences Shareholders |
No. of Shares |
|
Varroc Polymers Private Limited, India |
20000000 |
|
|
|
|
TOTAL
|
20000000 |
AS ON 06.08.2012
|
Equity Shares
Break Up |
Percentage of
Holding |
|
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 : |
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Exports : |
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Products : |
Automotive Parts and Equipment |
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Countries : |
·
Italy ·
Poland |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
·
Japan ·
Europe |
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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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Bankers : |
v
HDFC
Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West),
Mumbai – 400 013, Maharashtra, India v
ICICI
Bank Limited (Acting Through its Baharain Branch), Suit 15, Part 3,
Muncipality No.116, Building No.114, Government Avenue, Manama-316, Bahrain |
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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 No.: |
AAHFP0187A |
|
|
|
|
Subsidiaries : |
·
Durovalves India Private Limited CIN No.:-
U34300MH1997PTC105518 ·
Varroc Exhaust Systems Private Limited CIN No.:-
U29100MH2005PTC151756 ·
Varroc Polymers Private Limited CIN No.:-
U25209MH1995PTC090037 ·
Varroc Elastomers Private Limited CIN No.:- U29190MH2005PTC157474 ·
Aries Mentor Holding B.V. at Netherland |
|
|
|
|
Other Related Parties : |
·
Plastic Omnium Auto Exteriors (India) Private
Limited CIN No.:-
U34300PN2007PTC131148 ·
High Technology Transmission Systems (India)
Private Limited CIN No.:- U34300MH2002PTC134738 ·
Endurance Technologies Private Limited (CN) CIN No.:-
U34102MH1999PTC123296 |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity Shares |
Rs.10/- each |
Rs.110.000 Millions |
|
20000000 |
7% Redeemable Cumulative 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 |
Rs.10/- each |
Rs.100.775
Millions |
|
20000000 |
7% Redeemable Cumulative Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
TOTAL |
|
Rs.300.775 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
300.775 |
300.775 |
|
(b) Reserves & Surplus |
|
4645.666 |
3751.440 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
2536.217 |
1014.749 |
|
(b) Deferred tax liabilities (Net) |
|
231.450 |
240.668 |
|
(c) Other long term liabilities |
|
44.668 |
21.843 |
|
(d) long-term provisions |
|
15.410 |
0.000 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
|
746.065 |
572.373 |
|
(b) Trade payables |
|
1856.498 |
1748.626 |
|
(c) Other current
liabilities |
|
848.007 |
1012.714 |
|
(d) Short-term provisions |
|
32.235 |
83.708 |
|
TOTAL |
|
11256.991 |
8746.896 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
4440.015 |
4474.943 |
|
(ii) Intangible Assets |
|
16.814 |
16.246 |
|
(iii) Capital
work-in-progress |
|
1804.533 |
542.555 |
|
(iv) Intangible
assets under development |
|
5.774 |
0.000 |
|
(b) Non-current Investments |
|
1185.133 |
117.685 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
141.835 |
76.135 |
|
(e) Other Non-current assets |
|
255.241 |
512.932 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
32.124 |
20.059 |
|
(b) Inventories |
|
952.198 |
922.134 |
|
(c) Trade receivables |
|
1609.147 |
1452.277 |
|
(d) Cash and cash
equivalents |
|
342.043 |
125.922 |
|
(e) Short-term loans and
advances |
|
211.957 |
187.385 |
|
(f) Other current assets |
|
260.177 |
298.623 |
|
TOTAL |
|
11256.991 |
8746.896 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
203.500 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
3221.200 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
3424.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
2330.600 |
|
|
2] Unsecured Loans |
|
|
342.400 |
|
|
TOTAL BORROWING |
|
|
2673.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
204.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
6301.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
4026.200 |
|
|
Capital work-in-progress |
|
|
521.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
129.100 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
738.600 |
|
|
Sundry Debtors |
|
|
857.000 |
|
|
Cash & Bank Balances |
|
|
305.600 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
1278.200 |
|
Total
Current Assets |
|
|
3179.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
1389.700 |
|
|
Other Current Liabilities |
|
|
77.100 |
|
|
Provisions |
|
|
87.400 |
|
Total
Current Liabilities |
|
|
1554.200 |
|
|
Net Current Assets |
|
|
1625.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
6301.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL (A) |
14545.900 |
12419.200 |
8772.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
12795.300 |
|
|
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
12795.300 |
10875.700 |
7490.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1750.600 |
1543.500 |
1281.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
265.000 |
234.000 |
230.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1485.600 |
1309.500 |
1051.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
478.900 |
426.900 |
375.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
1006.700 |
882.600 |
676.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
94.300 |
225.500 |
179.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
912.400 |
657.100 |
496.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1218.500 |
655.800 |
242.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
17.600 |
12.300 |
8.200 |
|
|
|
Dividend on Preference Shares |
14.000 |
14.000 |
19.300 |
|
|
|
Dividend Tax |
0.000 |
0.100 |
0.000 |
|
|
|
Transferred to General Reserve |
100.000 |
68.000 |
55.500 |
|
|
BALANCE CARRIED
TO THE B/S |
1999.300 |
1218.500 |
655.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value of export |
696.400 |
637.100 |
572.590 |
|
|
|
Others |
0.000 |
3.000 |
0.000 |
|
|
TOTAL EARNINGS |
696.400 |
640.100 |
572.590 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
413.500 |
199.100 |
173.300 |
|
|
|
Raw Material |
1050.100 |
932.800 |
594.800 |
|
|
|
Stores & Spares |
6.600 |
9.700 |
2.800 |
|
|
TOTAL IMPORTS |
1470.2 |
1141.600 |
770.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
90.54 |
63.81 |
1422.19 |
|
|
Particulars |
|
|
31.03.2013 |
|
Sales Turnover [Approximately] |
|
|
14310.000 |
Expected Sales (2013-14) : Rs.17000.000 Millions.
The above information has been parted by Mr. Amit.
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.27
|
5.29 |
5.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.19
|
10.91 |
9.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.22 |
0.20
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.66
|
0.39 |
0.78
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.25 |
2.05
|
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2012 [Rs. in millions] |
31.03.2011 [Rs. in millions] |
31.03.2010 [Rs. in millions] |
|
Sundry Creditors |
1856.498 |
1748.626 |
1389.700 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
four years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
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 |
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 |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
|
Unsecured Loan |
Rs.
In Millions 31.03.2012 |
Rs.
In Millions 31.03.2011 |
|
Long Term
Borrowings |
|
|
|
Deferred Sales Tax Loan |
320.366 |
325.766 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
From Foreign Institutional Agencies |
350.000 |
100.000 |
|
Loans and Advances From Related Parties |
14.740 |
14.740 |
|
TOTAL |
685.106 |
440.506 |
PERFORMANCE
During the year,
the growth in demand was met by increased capacity utilization. Consequently, Net
Sales and Other Income rose by 17.12% to Rs.14546.000 Millions as compared to
Rs.12419.000 Millions in the last year. The cost of raw materials consumed
stood marginally reduced at 67.85% of Net Sales as compared to 67.97% in the
previous year. Due to judicious financial management, finance costs could be
marginally brought down to 1.84% of Net Sales as compared to 1.90% in the
previous year. Exports were marginally higher by 2.12% at Rs.694.500 Millions
from Rs.680.100 Millions in the previous year. The cumulative net result was
that PBT rose by 14.06% to Rs.1006.700 Millions from Rs.882.600 Millions in the
previous year. Provision for taxation has gone down drastically to Rs.94.300
Millions from Rs.225.500 Millions in the previous year, despite increase in PBT
due to higher tax exemption received on the increased profit of Pantnagar Plant
and increased tax exemption amount on enhanced revenue and capital expenditure
on R and D Account. PAT went up by 38.85% to Rs.912.400 Millions from
Rs.657.100 Millions in the last year. The operating profits are in line with
the budgets.
As mentioned in
their previous report, the Company has drawn and is implementing ambitious
plans to expand its activities organically as well as in-organically. Towards
its plans for inorganic growth, the Company has closed certain good deals as
explained in more detail under the head “New Acquisitions”. This will help the
company to acquire new customers and technologies in short span of time, which
otherwise have fairly long gestation period.
FUTURE OUTLOOK
It was the German
strength that prevented the Euro Zone falling into recession in the first
quarter ending March. All other members including France, Italy, Spain and
Greece showed signs of sliding into recession. In Britain, manufacturing
activity shrank at its fastest pace in three years last month as the global
economic slowdown hit demand for its goods. The analysts feel that it does not
bode well for the second quarter of the current fiscal.
The Eurozone woes have
also hit Indian exports. RBI has warned that economic growth could fall further
after the country’s worst quarterly figures (Jan-Mar) in nine years. Data
released for the Jan-March quarter shows that growth in GDP of just 5.3%, high
by the standard of developed countries but a severe disappointment in once
booming India. In addition to the GDP figures, India’s other indicators are a
source for worry: the rupee is at historic lows, annual inflation remains high
at 7% while the current account and public deficits are large.
The runaway petrol
price, which has singed many, found an unexpected beneficiary in the Indian
auto market: motorcycles and scooters. In 2011-12, Indian auto industry has not
fared up to earlier expectations. The industry grew overall 12%; this too
mainly on account of the 2 wheelers which grew 14% and LCVs which grew 18%.
Passenger car growth stood at 4.5%. The growth rate of auto industry in the
current fiscal too is not expected to be much better, probably the same at 12%.
In the current
year, the Company has planned a capex of Rs.750.000 Millions. Plant-VIII being
set up Waluj for manufacturing Crank Shafts is expected to commence operations
in March, 2013. The Company is aiming at 15% growth in top line which
translates to Net Sales of Rs.16750.000 Millions. The Company is also focusing
on the After Sales Market with respect to which the Company has been able to
achieve 28% growth YoY. The top line of the After Sales Division in the current
year is estimated to touch Rs.800.000 Millions.
In May, the
Company has pre-paid the outstanding loan of Rs.24.69 Crore availed from Punjab
National Bank due to high interest cost. CRISIL has upgraded the Company’s long
term rating to “A+Stable” from “A Stable” and has re-affirmed the Company’s short
term rating as “A1”.
In respect of 2
wheeler business, the Company is seeking to target the Indian operations of
Honda, Yamaha and Piaggio as the Company has access to superior technology
through acquisition of TRI.O.M. SpA, Italy, the leading manufacturer in Europe,
as explained under the head New Acquisitions.
In respect of 4
wheeler Lighting Business the Company has the unique position of having its own
R and D through acquisition of Visteon Lighting business and is aiming to
achieve the third place at the global level within the next 4 to 5 years.
NEW ACQUISITIONS
The Company is
aiming for quantum-jump in its business and top line within a period of two
years, with joint ventures and acquisitions as major drivers.
ESEX FORGING SRL,
ITALY
As mentioned in
their previous Report, during the year under review, the Company, through its
SPV Aries Mentor Holding BV, Netherlands acquired the assets and business from
an existing company Esex Forging SrL for a total consideration of Euro 3.05
Million. The acquisition was financed through term loan raised from Citibank,
London by Esex Forging SrL against Corporate Guarantees including that of the
Company.
TRI.O.M SPA, ITALY
Further, the
Company, through its SPV Aries Mentor Holding BV, acquired for a consideration
of Euro 7.2 Million, 80% stake in Tri.O.M SpA, Italy, Europe’s largest two
wheeler headlights and tail lights manufacturer. Tri.O.M has one wholly owned
subsidiary company in Romania and a joint venture company in Vietnam which has
been now fully acquired by Tri.O.M making it another wholly owned subsidiary
company. Tri.O.M. is a supplier to leading automobile global companies
including Piaggio, Honda, Yamaha and Ducati with nearly 65% market share in
Europe. This acquisition strengthens their technology and widens their product
portfolio as well. Through this acquisition, the Company will be able to
penetrate switches, instrument clusters and electronic parts segments for two
wheelers in Europe and South East Asia. Tri.O.M’s future plans to set up a
plant in Vietnam will give the Company a big gateway to reach out to the fast
growing South East Asian Markets, which is their big focus going ahead. This
acquisition is expected to add approximately Euro 20 Million (Rs.1350.000
Millions) to the Company’s top line.
VISTEON LIGHTING
DIVISION
In an open bidding
process, the Company has signed a definitive agreement to acquire the Lighting
Division of Visteon Corporation Inc, USA (“the target”) for a total
consideration value of USD 92 Million. The target which enjoys about 6% market
share of global automotive exterior lighting business has a storied history of
engineering excellence and technology leadership in the high growth automotive
exterior lighting industry and is a trusted supplier to leading global OEMs
including GM, Ford, VW and PSA, among others. The acquisition comprises of
three wholly-owned regional operations in Europe, North America and Asia with
about 4500 employees and one 50% JV strategically located in China. The
transaction is expected to be closed by the end of July this year and expected
to add approx. Rs.30000.000 Millions p.a. to the top line of the company. For
aiding the said acquisition, incorporation of companies in various countries is
in progress.
After acquisition,
the company will get further access to the four wheeler market with a
significant scale of business. Access of the Company to the new customer
relationships can leverage for more opportunities in growing markets like
India.
EUROPEAN
OPERATIONS
The situation in
Italy and European Union as a whole continues to be in recessionary phase.
Although situation has improved slightly as compared to 2009 the GDP growth
rate in Italy was negative in Q1 2012. Fortunately for IMES their wholly owned
subsidiary, the major customer Caterpillar accounting for 80% of its sales, has
recorded a substantial growth in volumes on account of sales to US market.
Consequently, the turnover of IMES increased from Euro 52.80 Million in 2010-11
to Euro 62.50 Million in 2011-12. Although EBIDTA was higher at Euro 9.22
Million, the Profit After Tax was Euro (0.1) million due to payment of tax Euro
0.84 million pertaining to previous years. During the current year IMES has
installed 4000 Ton Press transferred from Poland and has undertaken a major
capex program for 2012-13 for installation of 2 Ton Heat Treatment Furnace and
6300 Press being shifted from Poland. It is expected that the said capex
program will help IMES in increasing its annual turnover up to Euro 75 Million.
As reported last year the operations at IMES Poland have already been stopped
and all the assets have been disposed off, except the real estate for which the
company is under discussion with prospective buyers.
ESEX Forging SrL
the newly acquired subsidiary in May 2011 involved in manufacture of forged
components, has registered a turnover of Euro 5.2 Million with net loss of Euro
(0.20) Million. The turnover in 2012-13 is likely to be flat at Euro 5.90
Million due to drop in volumes of Axletech compensated by addition of new
customers like Carroni.
TRI.O.M. SPA
another subsidiary acquired in December 2011 manufacturing lighting parts for 2
wheeler industry registered a consolidated turnover of Euro 17.85 million in
the Calendar Year 2011. The said company’s subsidiary in Vietnam, will commence
operations in Q2 of the current financial year.
FORM 8
|
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 |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
10366515 |
|
Type of charge |
·
Immovable
property ·
Movable
property (not being pledge) |
|
Particular of
charge holder |
ICICI Bank
Limited (Acting Through its Baharain Branch), Suit 15, Part 3, Muncipality No.116,
Building No.114, Government Avenue, Manama-316, Bahrain |
|
Nature of
instrument creating charge |
Joint Mortgage
Deed |
|
Date of
instrument Creating the charge |
11.02.2013 |
|
Amount secured by
the charge |
Rs. 791.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest As per Facility
Agreement dated July 23, 2012 Terms of repayment As per Facility
Agreement dated July 23, 2012 Margin As per Facility
Agreement dated July 23, 2012 Extent and operation of the charge The Company has
created first pari-passu mortgage / security interest over its immovable
properties situated at Waluj - Aurangabad, Takve and Chakan in Pune District
and Pantnagar - Uttaranchal and movable fixed assets |
|
Short particulars
of the property charged (Including location of the property) |
The Company has
created first pari-passu mortgage / security interest over its immovable
properties and Movable fixed assets situated at: Plot No. E-4,
K-101-102, M-140-141, L-6/2 and L-4, MIDC Waluj - Aurangabad – 431136 Plot No. B-24 and
25, MIDC Chakan, Pune - 410501, Gut No. 390, Takve-Bk., Tal. Maval, District
Pune – 412106 Plot No. 20,
Sector 9, Integrated Industrial Estate, Pantnagar – Uttaranchal |
|
Particulars of
the present modification |
By the present
modification the aggregate credit facility of Rs. 791.000 Millions (USD 14
Million) is secured by first pari-passu mortgage/security interest over its
immovable properties and movable fixed assets situated at Plot Nos. E-4,
K-101/102, M-140-141, L-6/2 and L-4 in MIDC, Waluj, Aurangabad, Plot No. B-24
and 25, MIDC, Chakan, Pune, Gut No. 390, Takve BK, Tal. Maval, District Pune
and Plot No. 20, Sector 9, IIE, Pantnagagar, Uttaranchal |
FIXED ASSETS:
Tangible Assets
· Lease hold land
· Freehold land
· Factory Building
· Office Building
· Plant and Machinery
· Factory Equipment
· Electrical Installation
· Computer
· Mould and Dies
· Electrical Fittings
· Vehicles
· Office Equipment
· Furniture Fixtures
·
Tools and Instruments
Intangible Assets
·
Computer Software
·
Technical Knowhow
·
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 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.59.35 |
|
|
1 |
Rs.92.11 |
|
Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
TPT |
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.