1. Summary Information
|
|
|
Country |
India |
|
Company Name |
TVS
Srichakra Limited |
Principal Name 1 |
Mr. S. Narayanan |
|
Status |
Good |
Principal Name 2 |
Mr. R. Naresh |
|
|
|
Registration # |
18-009414 |
|
Street Address |
TVS Building, 7-B, West Veli Street, Madurai – 625 001,
Tamilnadu, India |
||
|
Established Date |
02.06.1982 |
SIC Code |
-- |
|
Telephone# |
91-452-2420461/
462/ 464/ 465 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-452-2420266 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Two and Three Wheeler Tyres. |
|
|
# of employees |
1,648 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.76,570,500/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of
Promoter and Promoter Group- 45.30%, Public Shareholding- 54.70% |
Banking |
State Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
31 years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Ba
(53) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
|
-- |
TVS Srichakra Investments Limited |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,743,833,000 |
Current Liabilities |
2,930,183,000 |
|
Inventories |
3,003,317,000 |
Long-term Liabilities |
3,030,319,000 |
|
Fixed Assets |
1,770,984,000 |
Other Liabilities |
556,375,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
6,516,877,000 |
|
Invest& other Assets |
414,491,000 |
Retained Earnings |
1,339,178,000 |
|
|
|
Net Worth |
1,415,748,000 |
|
Total Assets |
7,932,625,000 |
Total Liab. & Equity |
7,932,625,000 |
|
Total Assets (Previous Year) |
6,484,375,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
14,034,498,000 |
Net Profit |
397,518,000 |
|
Sales(Previous yr) |
10,908,924,000 |
Net Profit(Prev.yr) |
391,688,000 |
MIRA
INFORM REPORT
|
Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
TVS SRICHAKRA LIMITED |
|
|
|
|
Registered
Office : |
TVS Building, 7-B, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
02.06.1982 |
|
|
|
|
Com. Reg. No.: |
18-009414 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.76.570 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25111TN1982PLC009414 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MRIS00086C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of Two and Three Wheeler Tyres. |
|
|
|
|
No. of Employees
: |
1,648 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having a fine
track record. Financial position of the company appears to be sound. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and condition. |
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India 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 |
FITCH |
|
Rating |
Long term Rating: A- |
|
Rating Explanation |
High Credit Quality |
|
Date |
29.03.2012 |
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 DECLINED BY
|
Name : |
Mr. Shankara |
|
Designation : |
Assistant General Manager |
|
Contact No.: |
91-452-2448300 |
|
Date : |
01.03.2013 |
LOCATIONS
|
Registered Office : |
TVS Building, 7-B, West Veli Street, Madurai – 625001, Tamilnadu, India |
|
Tel. No.: |
91-452-2420461/
462/ 464/ 465 |
|
Fax No.: |
91-452-2420266 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative
Office : |
10,
Jawahar Road, Madurai – 625002, Tamilnadu, India |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Vellaripatti
Village, Melur Taluk, District Madurai – 625122, Tamilnadu, India |
|
|
|
|
Factory 2 : |
Narasingampatti
Village, Therkutheru, Melur Taluk, District Madurai – 625122, Tamilnadu,
India |
|
|
|
|
Factory 3 : |
Plot No. 7, Sector 1, Integrated Industrial Estate, Sidcul, Pant Nagar, Rudrapur, Tehsil-Kichha, District Udham Singh Nagar - 263153, Uttrakhand, India. |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. S. Narayanan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. R. Naresh |
|
Designation : |
Executive Vice Chairman |
|
|
|
|
Name : |
Ms. Shobhana Ramachandhran |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. S. Viraraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. H.
Atthreya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sitaram Rao
Valluri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.
Vijayaraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H. Janardana
Iyer |
|
Designation : |
Director |
KEY EXECUTIVES
|
Audit
Committee : |
Mr. M. S. Viraraghavan Chairman Mr. N. H.
Atthreya Mr. Sitaram Rao
Valluri Mr. P.
Vijayaraghavan Mr. H. Janardana
Iyer |
|
|
|
|
Shareholders/Investors
Committee |
Mr. S. Narayanan Chairman Mr. Shobhana
Ramachandran Mr. P. Vijayaraghavan |
|
|
|
|
Name : |
Mr. L.R.
Subramanian |
|
Designation : |
Company Secretary
|
|
|
|
|
Name : |
Mr. Shankara |
|
Designation : |
Assistant General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2012)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
474088 |
6.19 |
|
|
2994544 |
39.11 |
|
|
3468632 |
45.30 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
3468632 |
45.30 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
650 |
0.01 |
|
|
2380 |
0.03 |
|
|
94 |
0.00 |
|
|
1752 |
0.02 |
|
|
4876 |
0.06 |
|
|
|
|
|
|
|
|
|
|
539141 |
7.04 |
|
|
|
|
|
|
|
|
|
|
2745482 |
35.86 |
|
|
873943 |
11.41 |
|
|
24976 |
0.33 |
|
|
3464 |
0.05 |
|
|
21512 |
0.28 |
|
|
4183542 |
54.64 |
|
|
|
|
|
Total Public
shareholding (B) |
4188418 |
54.70 |
|
|
|
|
|
Total (A)+(B) |
7657050 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
7657050 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Two and Three Wheeler Tyres. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Automotive Tyres |
Nos (‘000) |
33000 |
32953 |
15728 |
|
Automotive Tubes |
Nos (‘000) |
33000 |
30850 |
17345 |
GENERAL INFORMATION
|
No. of Employees : |
1,648 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India West Veli Street, Madurai – 625001, Tamilnadu, India · DBS Bank Limited 806, Anna Salai, Chennai – 600002, Tamilnadu, India · The Karur Vysya Bank Limited No.159, South Masi Street, Madurai – 625001, Tamilnadu, India |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sundaram and
Srinivasan Chartered
Accountants |
|
Address : |
New No. 250, P T Rajan Road, Madurai – 625014 Tamilnadu,
India |
|
|
|
|
Associates : |
·
T V Sundram Iyengar and Sons Limited ·
TVS Telecom Components Limited ·
ZF Electronics TVS ( ·
Van Leeuwen Tyres and Wheels B.V., |
|
|
|
|
Subsidiaries : |
· TVS Srichakra Investments Limited · TVS Europe Distribution Limited |
|
|
|
|
Enterprises with common Key management personnel |
· Sundaram Industries Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7657050 |
Equity Shares |
Rs.10/- each |
Rs.76.570
Millions |
|
|
|
|
|
|
Particulars |
Equity Shares |
|
|
|
No. of Shares |
Rs. In Millions |
|
|
|
|
|
Shares outstanding at the beginning of the
year |
7657050 |
76.570 |
|
Shares Issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
7657050 |
76.570 |
Other Information
Equity Share holders holding more than 5% of
the total Share capital of the Company
|
T V Sundram Iyengar & Sons Limited |
27.73% |
|
|
|
|
Sundaram Industries Limited |
9.79% |
Rights, preferences and restrictions attached to
shares –
Equity shares -
The Company has one class of equity share having a par value of Rs. 10/- each.
Each share holder 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. Each shareholder also has a residual interest in the assets of the
Company in proportion to their shareholding, in the unlikely event of
liquidation of the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
76.570 |
76.570 |
76.570 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1339.178 |
1061.799 |
781.720 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1415.748 |
1138.369 |
858.290 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3030.319 |
2267.395 |
1743.623 |
|
|
2] Unsecured Loans |
0.000 |
0.160 |
0.930 |
|
|
TOTAL BORROWING |
3030.319 |
2267.555 |
1744.553 |
|
|
DEFERRED TAX LIABILITIES |
129.742 |
99.742 |
74.742 |
|
|
|
|
|
|
|
|
TOTAL |
4575.809 |
3505.666 |
2677.585 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1770.984 |
1545.566 |
1121.406 |
|
|
Capital work-in-progress |
216.315 |
103.921 |
32.408 |
|
|
|
|
|
|
|
|
INVESTMENT |
198.176 |
26.104 |
26.104 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3003.317
|
2643.349
|
1554.359
|
|
|
Sundry Debtors |
1895.532
|
1739.406
|
1189.360
|
|
|
Cash & Bank Balances |
56.132
|
51.325
|
85.835
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
792.169
|
374.704
|
324.078
|
|
Total
Current Assets |
5747.150
|
4808.784
|
3153.632 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
2430.198
|
2096.031
|
1627.813
|
|
|
Other Current Liabilities |
499.985
|
417.702
|
7.343
|
|
|
Provisions |
426.633
|
464.976
|
20.809
|
|
Total
Current Liabilities |
3356.816
|
2978.709
|
1655.965 |
|
|
Net Current Assets |
2390.334
|
1830.075
|
1497.667
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4575.809 |
3505.666 |
2677.585 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
14034.498 |
10908.924 |
7007.054 |
|
|
|
Other Income |
58.456 |
63.651 |
56.849 |
|
|
|
TOTAL (A) |
14092.954 |
10972.575 |
7063.903 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
9672.159 |
7548.519 |
4174.310 |
|
|
|
Purchase of Traded Goods |
4.086 |
7.732 |
5.302 |
|
|
|
Changes in inventories of finished goods work-in-progress and
Stock-in-Trade |
(240.659) |
(651.130) |
136.182 |
|
|
|
Employee Benefits Expenses |
962.402 |
855.387 |
0.000 |
|
|
|
Other Expenses |
2386.192 |
2163.827 |
2040.369 |
|
|
|
TOTAL (B) |
12784.180 |
9924.335 |
6356.163 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1308.774 |
1048.240 |
707.740 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
553.310 |
318.350 |
156.132 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
755.464 |
729.890 |
551.608 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
207.946 |
158.202 |
117.889 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
547.518 |
571.688 |
433.719 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
150.000 |
180.000 |
135.539 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
397.518 |
391.688 |
298.180 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
626.247 |
447.650 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
40.000 |
30.000 |
|
|
|
Proposed Dividend |
NA |
95.712 |
0.000 |
|
|
|
Interim Dividend Paid |
NA |
0.000 |
76.570 |
|
|
|
Tax on Interim Divided |
NA |
0.000 |
13.013 |
|
|
|
Tax on Distribution of Dividend |
NA |
15.897 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
866.326 |
626.247 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1700.640 |
1160.548 |
945.325 |
|
|
TOTAL EARNINGS |
1700.640 |
1160.548 |
945.325 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3564.417 |
1769.469 |
1019.794 |
|
|
|
Stores & Spares |
0.000 |
0.549 |
0.758 |
|
|
|
Capital Goods |
14.079 |
78.650 |
96.178 |
|
|
TOTAL IMPORTS |
3578.496 |
1848.668 |
1116.730 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
51.92 |
51.15 |
38.94 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3621.100 |
3724.600 |
3640.400 |
|
Total Expenditure |
3417.400 |
3479.900 |
3485.900 |
|
PBIDT (Excl OI) |
203.700 |
244.700 |
154.500 |
|
Other Income |
22.700 |
8.200 |
17.600 |
|
Operating Profit |
226.300 |
252.800 |
172.100 |
|
Interest |
135.500 |
147.900 |
152.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
90.800 |
104.900 |
19.500 |
|
Depreciation |
64.200 |
59.000 |
61.200 |
|
Profit Before Tax |
26.700 |
45.900 |
(41.600) |
|
Tax |
8.200 |
13.800 |
(12.500) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
18.400 |
32.100 |
(29.100) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
18.400 |
32.100 |
(29.100) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.82
|
3.57
|
4.22
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.90
|
5.24
|
6.19
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.28
|
9.00
|
10.15
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.50
|
0.51
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.14
|
1.99 |
2.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.71
|
1.61
|
1.90
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
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
The Company's
revenue recorded a growth of 28.44% from Rs.10972.600 Millions last year to
Rs.14093.000 Millions for the year ended 31st March, 2012.
DOMESTIC MARKET
The company has
recorded a double digit growth for the consecutive third year.
Original Equipment
(OE) segment continued to maintain the leadership in the OE business. The
significant increase in the business is due to product with newer technology,
which has once again helped the Organisation to retain pioneer status in new
technology introduction.
Sluggishness in
the After Market (AM) segment continued during the current year also due to
supply exceeding the demand in the market place. Excess supply was due to
expansion activities carried out by all the tyre companies expecting a sizable
growth in the OE segment, similar to the last two years, which did not happen.
The Company has taken focused improvement activities through external
consultants and working aggressively to regain the market share.
To supplement the
above, the company continued with the aggressive brand building activities and
also launched new TV Commercials. The initial response indicates a positive
sign and the Company's Brand Building exercise and promotional activities would
reap benefits for the After Market team to substantially increase its market
share in the coming years.
OVERSEAS MARKET
The export
business has witnessed a sizable growth during the current year.
Key initiatives
taken by the company during the current year include appointment of new
distributors; focussed customer service activities existing markets and
participation in the Tyre Expo.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
ECONOMIC REVIEW
India's GDP Growth
Rate is expected to be in the range of 6.90% in the year 2011-12 and the
slow-down in comparison to the preceding two years was due to deceleration in
industrial growth. This was further dampened by increased current account
deficit and reduced net capital inflow, which put pressure on exchange rate.
However, India's GDP is expected to be in the range of 7.60% in 2012-13.
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Indian Tyre
Industry is estimated to grow at around 10% to 12% in the year 2012-13 over the
year 2011-12. Growth in OE segment will be driven by vehicle demand, while
consumption in the After Market will be affected by general economic condition
and usage. However, the overall buoyancy in economic situation expected in the
second half of the fiscal year, should augur well for growth in After Market
segment.
In an environment
of increasing inflation, fuel prices and interest rates, two wheeler industries
has recorded a healthy volume growth of 15.56% for the year ended 31st March,
2012.
Natural Rubber
price continued to rule high since the consumption was more than the production
and imports during the year 2011-12.
Power shortage and
the introduction of power holidays has been a major concern area for all the
industries, with particular reference to tyre industry. Lot of prevailing
restrictive measures has added woes to the company's increasing power cost.
PERFORMANCE OF THE COMPANY
MARKET:
Original Equipment Manufacturers:
The Company's performance in the OE segment during the year 2011-12
was good enough to maintain its leadership position.
After Market:
After Market segment continued to be sluggish during the year
2011-12 due to excess supply than the demand.
The Company is continuing its brand building exercise to increase
its presence in the After Market segment.
Export:
Export market witnessed a steady growth during the current year.
Appointment of new distributors, exploration of new markets, expanding the
existing markets, etc. are some of the initiatives taken by the company during
the year to register the above growth.
Manufacturing:
Continuous
improvements are implemented to improve manufacturing quality and productivity
in many of the manufacturing areas.
Cost Management:
Value engineering,
reducing process scrap and operational efficiency projects are being pursued
with the help of outside consultants.
OUTLOOK
OE segment is expected to grow in the range of 8% to 12%. The
company has taken stock of the indicators and has taken steps for increasing
its presence with all OE manufacturers.
On the positive side, After Market segment is showing signs of recovery.
This is due to the double digit growth
rate achieved by
the OE segment in the last three years, which should naturally flow to After
Market segment in the coming years. Focused improvement programs have been
designed by the company for implementation during the year 2012-13.
Automobile growth
in Export market is projected to be in the range of 22% to 24% till 2016-17.
The company has taken an ambitious growth rate for the year 2012-13 and is
hopeful of achieving the same with increased penetration in new countries.
Apart from new initiatives planned in Off Highway Tyres, new innovative
patterns for two and three wheelers are planned.
Consumption of
Natural Rubber was more than the production by 7% during the year 2011-12.
However, the consumption of Natural Rubber in the tyre industry has increased
by 6.3%. According to Rubber Board projections, there will be a deficit of
Natural Rubber in the year 2012-13, which will definitely push the prices of
Natural Rubber.
Adequate capital
expenditure is planned for the year 2012-13 to support the above growth. The
expenditure will be incurred on case to case basis.
FIXED ASSETS:
·
Land – Leasehold
·
Land – Freehold
·
Buildings
·
Plant and Machinery
·
Electrical Installation
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Other (Electrical)
·
Computer Software
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 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.54.40 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.71.24 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.