MIRA INFORM REPORT
|
Report Date : |
23.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUNDRAM FASTENERS LIMITED |
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Registered Office : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
10.12.1962 |
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Com. Reg. No.: |
18-004943 |
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Capital
Investment / Paid-up Capital : |
Rs.210.128 Millions |
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CIN No.: [Company
Identification No.] |
L35999TN1962PLC004943 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00555C / CHES17415G / MRIS01546G |
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PAN No.: [Permanent
Account No.] |
AAACS8779D / AAACS8779D |
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Legal Form : |
A Public Limited Liability Company. The company shares are listed on
stock exchanges. |
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Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
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No. of Employees
: |
1800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 |
|
Maximum Credit Limit : |
USD 25300000 |
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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 a well established and a reputed company having fine track
record. Directors are reported to be experienced an The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short term Debt) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
27.09.2012 |
LOCATIONS
|
Registered Office/ Corporate
Headquarters : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu, India |
|
Tel. No.: |
91-44-28478500 |
|
Fax No.: |
91-44-28478510 / 28478508 |
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E-Mail : |
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Website : |
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Factory (In |
Padi, Chennai-600050, Ghengleput District, |
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Tel No.: |
91-44-26258460 |
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Fad No.: |
91-44-26357052 |
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E mail: |
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|
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Factory (In |
Krishnapuram, Aviyur-626160, Virudhunagar District, |
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Factory (In |
Mittamandagapet
Village-605106, Villupuram District, Tamilnadu, India |
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Factory (In |
47/2, |
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Tel No.: |
91-44-26272231/ 55512231 |
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Fad No.: |
91-44-26272696 |
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E mail: |
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Factory (In |
SIPCOT Industrial Complex, Gummidipoondi-601021, |
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Factory (In |
Auto Ancillary SEZ, |
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Factories (In |
Tamilnadu: Harita, Hosur-635109, Krioshnagiri District, Tamilnadu, India |
|
Tel No.: |
91-4344-276651 |
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Fad No.: |
91-4344-276082 |
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E mail: |
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Factory (In |
Puducherry Korkadu, Nettapakkam Commune, Bahur Taluk, Puducherry-605110, Tamilnadu, India |
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Factory (In |
Andhra Pradesh Bonthapally Village-502313, Medak District, Andhra Pradesh, India |
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Factory (In |
Uttarakhand Patnagar,
Itegrated Industrial Estate, Rudrapur, District Udam Singh Nagar,
Uttarakhand-263153, India |
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Factory (In |
Tamilnadu: Ambattur, Hosur, |
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Factories (Outside |
Sundaram Fasteners ( |
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Factories (Outside India- through subsidiaries) 13: |
Cramlington Precision Forge Limited, |
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Factories (Outside |
Sundram RBI Sdn, |
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|
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Factories (Outside |
Peiner Umformetechnik |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Suresh Krishna |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Ms. Arathi Krishna |
|
Designation : |
Joint Managing Director |
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Name : |
Ms. Arundathi Krishna |
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Designation : |
Whole time Director |
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Name : |
Mr. K Ramesh |
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Designation : |
Director |
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Name : |
Mr. Venu Srinivasan |
|
Designation : |
Director |
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Name : |
Mr. V Narayanan |
|
Designation : |
Director |
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Name : |
Mr. R Srinivasan |
|
Designation : |
Director |
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Name : |
Mr. R Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. C V Karthik Narayanan |
|
Designation : |
Director |
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Name : |
Mr. M Raghupathy IAS |
|
Designation : |
Director (Retired) |
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Name : |
Mr. V.G Jaganathan |
|
Designation : |
Executive Director |
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Name : |
Mr. Sampathkumar Moorthy |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. Pashupati |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
104085280 |
49.53 |
|
|
104085280 |
49.53 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
104085280 |
49.53 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
22342612 |
10.63 |
|
|
8143975 |
3.88 |
|
|
10806901 |
5.14 |
|
|
1641721 |
0.78 |
|
|
42935209 |
20.43 |
|
|
|
|
|
|
4798620 |
2.28 |
|
|
|
|
|
|
48142464 |
22.91 |
|
|
10033408 |
4.77 |
|
|
133389 |
0.06 |
|
|
133389 |
0.06 |
|
|
63107881 |
30.03 |
|
Total Public
shareholding (B) |
106043090 |
50.47 |
|
Total (A)+(B) |
210128370 |
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) |
210128370 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps, and Gear Shifters. |
||||||||||||||
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Product: |
v Fasteners v Radiator
Caps v Powder
Metal Parts v Cold
Extruded Parts v Hot
Forged Parts v Pumps
and Assemblies
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
High tensile fasteners |
MT |
71435 |
61304 |
|
Automotive and other miscellaneous cold formed/extruded
parts/Precision formed gears |
MT |
4600 |
4321 |
|
Powder metal parts |
MT |
9100 |
5554 |
|
Iron powder |
MT |
8000 |
893 |
|
Radiator caps |
Nos. |
100 |
72 |
|
Gear shifters |
Nos. |
- |
113 |
|
|
Nos. |
50000 |
14360 |
|
Hot and warm forged parts |
MT |
6000 |
368 |
|
Shafts |
Nos. |
1350000 |
1226187 |
|
Hubs |
Nos. |
1350000 |
1361844 |
|
Pump Assemblies (Water /Oil/Fuel Pumps) |
Nos. |
- |
5401179 |
GENERAL INFORMATION
|
No. of Employees
: |
1800 (Approximately) |
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Bankers : |
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Facilities: |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
New No. 4 (Old No. 23), C P Ramaswamy Road, Alwarpet, Chennai-600018,
Tamilnadu, India |
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Subsidiaries : |
·
Sundram Fasteners Investments Limited, Chennai ·
Cramlington Precision Forge Limited,
Northumberland, United Kingdom ·
Sundram RBI Sdn. Bhd, Kuala Lumpur, Malaysia ·
Upasana Engineering Limited, Chennai ·
Sundram Fasteners (Zhejiang) Limited, Peoples
Republic of China ·
Sundram Non-Conventional Energy Systems Limited,
Chennai ·
Sundram Bleistahl Limited, Chennai ·
Sundram International Inc, Michigan, USA ·
TVS Peiner Services, GmbH (formerly Peiner
Logistik GmbH), Peine, Federal Republic of Germany ·
Peiner Umformtechnik GmbH, Peine, ·
PUT Grundstücks GmbH, Peine, |
|
|
|
|
Associates : |
· TVS Infotech Limited, Chennai (TVSI) ·
TVS Infotech Inc., ·
TV Sundram Iyengar and Sons Limited, ·
Southern Roadways Limited, |
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|
|
|
Joint Venture: |
·
Windbolt |
|
|
|
|
Enterprise in
which Key Management Personnel have significant influence: |
·
Upasana Finance Limited, Chennai |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210128370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210128370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Reconciliation of
number of Equity Shares:
|
Particulars |
31.03.2012 |
|
|
|
No. of shares |
Rs. in Millions |
|
Balance at the beginning of the year |
210128370 |
210.128 |
|
Add: Shares issued during the year |
- |
- |
|
Bonus Shares issued during the year |
- |
- |
|
Balance at the end of the year |
210128370 |
210.128 |
Terms / rights
attached to shares:
The
Company has only one class of equity shares having a par value of Re 1 per
share. Each holder of equity share is entitled to one vote per share. The
Company declares and pays dividends in Indian Rupees.
In
the event of liquidation of the Company, the holders of equity shares will be
entitled to receive remaining assets of the Company, after distribution of all
preferred amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
Details of shares
held by shareholders holding more than 5% of the aggregate shares in the
Company
|
Name of Share
holder |
31.03.2012 |
|
|
|
No. of shares |
Shares as % of Total number of shares
|
|
T V Sundram Iyengar and Sons Limited |
53312000 |
25.37 |
|
Southern Roadways Limited |
50773280 |
24.16 |
Bonus Shares / Buy
Back / Shares for consideration other than cash issued during the period of
five years immediately preceding the financial year ended 31st March
2012:
(i) Aggregate number of equity shares allotted as fully paid up pursuant
to contracts without payment being received in cash: Nil
(ii) Aggregate number of equity shares allotted as fully paid up by way
of Bonus Shares 10,50,64,185 equity shares of Re 1 each were issued as fully
paid Bonus Shares in the proportion of 1 : 1 by capitalization of General
Reserve on 29th January 2007.
(iii) Aggregate number of equity shares bought back: Nil
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 |
210.128 |
210.128 |
210.128 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6124.470 |
5339.368 |
4591.417 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6334.598 |
5549.496 |
4801.545 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3441.934 |
4215.801 |
3693.885 |
|
|
2] Unsecured Loans |
3516.781 |
2219.693 |
1985.202 |
|
|
TOTAL BORROWING |
6958.715 |
6435.494 |
5679.087 |
|
|
DEFERRED TAX LIABILITIES |
893.101 |
863.308 |
813.670 |
|
|
|
|
|
|
|
|
TOTAL |
14186.414 |
12848.298 |
11294.302 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6727.930 |
6078.092 |
5601.393 |
|
|
Capital work-in-progress |
400.909 |
317.536 |
196.408 |
|
|
|
|
|
|
|
|
INVESTMENT |
1426.296 |
1423.674 |
1423.943 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3239.769
|
2869.311
|
2095.264
|
|
|
Sundry Debtors |
4335.209
|
3645.453
|
2603.674
|
|
|
Cash & Bank Balances |
71.709
|
85.889
|
50.323
|
|
|
Other Current Assets |
5.532
|
0.687
|
0.000
|
|
|
Loans & Advances |
1886.451
|
1603.020
|
1188.435
|
|
Total
Current Assets |
9538.670
|
8204.360
|
5937.696
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1638.967
|
1364.718
|
1668.539
|
|
|
Other Current Liabilities |
1954.175
|
1588.154
|
151.806
|
|
|
Provisions |
314.249
|
222.492
|
44.793
|
|
Total
Current Liabilities |
3907.391
|
3175.364
|
1865.138
|
|
|
Net Current Assets |
5631.279
|
5028.996
|
4072.558
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14186.414 |
12848.298 |
11294.302 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21466.352 |
18107.166 |
13338.606 |
|
|
|
Other Income |
180.743 |
43.675 |
27.403 |
|
|
|
TOTAL (A) |
21647.095 |
18150.841 |
13366.009 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10532.281 |
8648.803 |
11662.735 |
|
|
|
Employee Benefit Expense |
1842.431 |
1589.662 |
|
|
|
|
Other Expenses |
6538.911 |
5827.798 |
|
|
|
|
Changes in Inventories of FG, WIP and Stock-in-Trade |
(398.104) |
(259.919) |
|
|
|
|
TOTAL (B) |
18515.519 |
15806.344 |
11662.735 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3131.576 |
2344.497 |
1703.274 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
922.000 |
356.674 |
149.963 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2209.576 |
1978.823 |
1553.311 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
636.131 |
545.372 |
474.840 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1573.445 |
1442.451 |
1078.471 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
447.458 |
388.194 |
324.186 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1125.987 |
1054.257 |
754.285 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
341.872 |
293.921 |
264.638 |
|
|
|
|
|
|
|
|
|
|
Income
Tax (Paid)/ Refund relating to earlier years |
- |
- |
(4.152) |
|
|
|
Transfer
from Investments Allowance Reserve (utilized) Account |
- |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
294.180 |
262.661 |
84.051 |
|
|
|
Tax on Interim Dividend |
46.705 |
43.645 |
14.285 |
|
|
|
Interim Dividend Payable |
0.000 |
0.000 |
105.064 |
|
|
|
Tax on Interim Dividend Payable |
0.000 |
0.000 |
17.450 |
|
|
|
Transfer to General Reserve |
500.000 |
700.000 |
500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
626.974 |
341.872 |
293.921 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
6458.801 |
4793.483 |
3321.529 |
|
|
|
Claims Received |
0.000 |
0.000 |
0.260 |
|
|
|
Other |
27.528 |
0.000 |
10.513 |
|
|
TOTAL EARNINGS |
6486.329 |
4793.483 |
3332.302 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3480.290 |
3197.677 |
1403.799 |
|
|
|
Components & Spares Parts |
231.545 |
104.101 |
486.752 |
|
|
|
Capital Goods |
521.685 |
379.944 |
92.944 |
|
|
|
Tools Steel, Tools, Gauges etc |
370.443 |
330.955 |
92.250 |
|
|
|
Others |
0.451 |
1.420 |
12.855 |
|
|
TOTAL IMPORTS |
4604.414 |
4014.097 |
2088.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
1.63 |
5.02 |
3.57 |
|
|
|
Diluted |
1.63 |
5.02 |
3.57 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd
Quarter |
31.12.2012 3rd
Quarter |
|
Audited /
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
5819.700 |
5061.300 |
5000.900 |
|
Total Expenditure |
5212.500 |
4437.700 |
4591.800 |
|
PBIDT (Excl OI) |
607.200 |
623.600 |
409.100 |
|
Other Income |
134.500 |
25.200 |
42.400 |
|
Operating Profit |
741.700 |
648.800 |
451.500 |
|
Interest |
124.800 |
103.800 |
98.200 |
|
Exceptional Items |
0.000 |
0 |
114.100 |
|
PBDT |
616.900 |
545.000 |
467.400 |
|
Depreciation |
178.000 |
184.900 |
181.600 |
|
Profit Before Tax |
438.900 |
360.100 |
285.800 |
|
Tax |
126.500 |
111.300 |
60.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
312.400 |
248.800 |
225.400 |
|
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 |
31.24 |
248.800 |
225.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.20
|
5.81
|
5.64
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.33
|
7.97
|
8.09
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.67
|
10.10
|
9.35
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.26
|
0.22
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.10
|
1.16
|
1.18
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.44
|
2.58
|
3.18
|
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Construction
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
-- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
-- |
|
Litigations
that the firm / promoter involved in |
-- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
-- |
|
Buyer
visit details |
-- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
PAN of
Proprietor/Partner/Director, if available |
No |
|
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
External Agency Rating,
if available |
Yes |
SALES AND PROFITS
The Company recorded total Net Sales and other income of Rs.21647.100
Millions for the year ended March 31, 2012 as against Rs 18150.800 Millions
achieved during the previous year. The export sale was at Rs 6458.800 Millions
as against Rs 4793.500 Millions in the previous year. The Profit after tax was
higher at Rs 1126.000 Millions as against Rs 1054.300 Millions in the previous
year.
The Company continues to be a net foreign exchange earner for the
fifteenth year in succession.
MANAGEMENT
DISCUSSION AND ANALYSIS
Business Overview
Indian gross domestic product and the Index of Industrial Production
registered a growth of 7% (8.6%) and 2.8% (8.2%) respectively during the
financial year 2011-12, reflecting a slower growth of the Indian economy than
in the previous year.
The global economy grew very slowly with emerging economies registering
a slow growth. The
Domestic Sales
Domestic sales
increased to Rs. 14510.000 Millions from Rs. 12940.000 Millions, a growth of
12%. Demand from automotive OEMs fluctuated throughout the year. Aftermarket
sales also showed growth as confidence levels of dealers improved resulting in
higher off-take and stocking. Upsurge in petrol prices resulted in a shift
towards diesel powered vehicles.
Exports
The
FINANCIAL
PERFORMANCE
Improved market conditions resulted in higher sales in all the units of
the Company. Raw material prices increased steadily during the first half of
the year. Input costs rose across the board, especially of petroleum based
products. Non-availability of power due to scheduled power-cuts up to 40%,
power holidays and unscheduled power outages forced the Company to purchase
power and resort to self generation at higher costs. Wages increased as
dearness allowance increased in line with the cost of living index. High levels
of inflation had a direct impact on wage costs. The Company continued to be
under pressure due to rising manufacturing costs. Freight rates also increased
in line with increase in cost of diesel and other inputs related to the
transportation industry.
The Company continues to adopt Total Productive Maintenance (TPM)
practices in order to achieve a reasonable
control over other operating expenses.
During the year, PBIDT (Profit before interest, foreign exchange
fluctuation, depreciation and tax) was higher at
Rs 3131.600 Millions as against Rs 2344.500 Millions in the previous
year.
Steady rise in demand for the Company’s products resulted in additional
investments in working capital. The Company made substantial investments in
creation of capacities for new products and additional capacities for
manufacture of existing products to meet projected demand from domestic and
international customers. These investments resulted in additional interest
costs. Tight money policies followed by Reserve Bank of
Depreciation was higher at Rs 636.100 Millions (Rs 545.400 Millions) on
account of increased capital expenditure incurred over the recent years.
Profit before tax was higher at Rs 1573.400 Millions (Rs 1442.500
Millions). Profit after tax amounted to Rs 1126.000 Millions (Rs 1054.300
Millions).
FOREIGN
SUBSIDIARIES
China
Sundram Fasteners (
Sales and other income during the year 2011 amounted to RMB 118.390
million (Rs 855.966 Millions) as against RMB 86.432 million (Rs 584.283
Millions) during 2010. The operations resulted in a net profit of RMB 5.010
million (Rs 34.113 Millions) as against a profit of RMB 4.964 million (Rs
33.621 Millions) in 2010.
The business environment for SFZL’s products appears to be encouraging.
New products for existing customers and addition of new customers will enable
SFZL to post sizable net profits in the coming years. SFZL has retained
certifications according to ISO/TS 16949-2002 and ISO 9000-2000.
The company has so far invested USD 13 million (Rs 568.760 Millions) in
the Equity capital.
Germany
German operations are carried out through 100% subsidiary companies viz.
Peiner Umformtechnik GmbH (Peiner), TVS Peiner Services GmbH (TVSP) and PUT
Grundstucks GmbH (PUTG). Peiner manufactures a wide range of standard and
special fasteners catering to the automotive, industrial and construction
sectors. TVSP is engaged in providing warehousing and logistical services. PUTG
owns the land and buildings from where Peiner operates. The Company has
invested Euro 8.724 million (Rs 482.212 Millions) in Equity capital besides
lending Euro 3.5 million (Rs 232.743 Millions) to meet short term requirements.
Revenues during the year 2011 amounted to Euro 66.923 million (Rs
4386.776 Millions) as against Euro 57,407 million (Rs 3458.226 Millions) during
2010. While there has been a vast improvement over the previous year, the operations
resulted in a loss before depreciation and taxes of Euro 2.866 million (Rs
-92.538 Millions) as against loss of Euro 0.102 million (Rs -6.208 Millions)
during 2010. Loss after taxes amounts to Euro 4.270 million (Rs -288.191
Millions) during 2011 as against Euro 1.241 million (Rs -74.338 Millions)
during 2010.
Uncertain economic conditions prevailing in
The Company has entered into a 50% joint venture with a German partner
to set up a plant for manufacture of fasteners for Wind Energy Generators (WEG)
and has invested Euro 3.0 million by way of equity capital and loans. As the
emphasis on production of clean energy is likely gather pace after the shutdown
of nuclear plants, demand for WEG is likely to increase. The facility located
at Hohenstein in eastern part of
Cramlington Precision Forge Limited (CPFL)
of precision forged components for application in heavy vehicles for
on-highway and off highway applications.
The Company has invested GBP 1.9 million (Rs. 152.314 Millions) in CPFL.
Sales and other income during the year 2011 amounted to GBP 9.345
million (Rs 703.642 Millions) as against GBP 6.235 million (Rs 438.999
Millions) during 2010. CPFL made a net profit of GBP 0.913 million (Rs 72.276
Millions) as against net profit of GBP 0.375 million (Rs 226.580 Millions)
during 2010. CPFL paid dividends totalling GBP 2,40,000 during March 2012.
CPFL generated additional sales through new products introduced in
earlier years. Increased volumes and cost control helped in achieving
satisfactory results during 2011. Orders in the pipeline and development and
manufacture of parts for a large new customer will help further improve
capacity utilisation and the outlook for 2012 is encouraging.
INDIAN
SUBSIDIARIES
Upasana
Engineering Limited
Upasana Engineering Limited (UEL), a 100% subsidiary is engaged in the
manufacture of spokes and nipples, dies and tools, automotive components and
cold extruded components. During the year 2011-12, Sales and other income
increased to Rs 802.603 Millions from Rs 628.274 Millions in the previous year,
an increase of 24%. Domestic Sales increased to Rs 637.401 Millions from Rs
519.051 Millions in the previous year. Export Sales increased to Rs 149.107
Millions from Rs 98.629 Millions. Profit after Tax, after amortisation of
goodwill of Rs 8.500 Millions (2010-11 - Rs 20.000 Millions) amounted to Rs.
39.355 Millions as against a net profit of Rs 13.430 Millions in the previous
year.
UEL’s facility at Hosur for manufacture of cold extruded components has
steadily improved its production and sales. With the introduction of additional
parts and increased demand for existing products, UEL will show substantial
improvement in performance over the next few years.
Sundram Bleistahl
Limited
Sundram Bleistahl Limited (SBL) is engaged in manufacture of sintered
valve guides at its 100% export oriented unit at Hosur, Tamilnadu. Bleistahl
Produktions GmbH and Co KG holds 24%. SBL caters to the needs of Bleistahl
Productions GmbH and Co KG in
The Company has invested Rs 53.200 Millions towards 76% of the Equity
capital of the subsidiary.
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 Rs.
In Millions |
31.03.2011 Rs.
In Millions |
|
Term Loans |
241.775 |
313.696 |
|
Working Capital Loans |
3275.006 |
1905.997 |
|
Total |
3516.781 |
2219.693 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QURTER AND
NINE MONTHS ENDED 31ST DECEMBER 2012
Rs. in Millions
|
Particulars |
Quarter ended |
Nine Months
ended |
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
1.Income from Operations |
|
|
|
|
(a) Net Sales/ Income from Operations |
4880.300 |
4981.500 |
15570.300 |
|
(b) Other Operating Income |
120.600 |
79.800 |
420.500 |
|
Total Income
From operations net (a+b) |
5000.900 |
5061.300 |
15990.800 |
|
2. Expenditure |
|
|
|
|
a. Cost of Raw Materials consumed |
2322.700 |
2413.100 |
7507.200 |
|
b. Changes in inventories of finished goods , work in progress and
stock in trade |
65.800 |
(27.400) |
54.100 |
|
c. Employee benefit expenses |
511.600 |
514.900 |
1540.800 |
|
d. Depreciation and amortisation expense |
181.600 |
184.900 |
544.500 |
|
e. Stores and Tools consumed |
566.500 |
531.300 |
1721.800 |
|
f. Other Expenses |
999.500 |
982.000 |
3113.600 |
|
Total Expenses |
4647.800 |
4598.800 |
14482.000 |
|
3. Profit from Operations
before Other Income, Finance Costs and Exceptional Items (1-2) |
353.100 |
462.500 |
1508.800 |
|
4. Other Income |
42.400 |
25.200 |
93.300 |
|
5. Profit from ordinary activities before Finance Costs and
Exceptional Items (3+4) |
395.500 |
487.700 |
1602.100 |
|
6. Finance Costs |
|
|
|
|
98.200 |
103.800 |
326.800 |
|
125.600 |
23.800 |
304.500 |
|
7. Profit from Ordinary
Activities after Finance Costs but before exceptional Items (5-6) |
171.700 |
360.100 |
970.800 |
|
8. Exceptional items |
114.100 |
-- |
114.00 |
|
9. Profit from Ordinary
Activities before Tax (7+8) |
285.800 |
360.100 |
1084.900 |
|
10. Tax Expenses |
60.400 |
111.300 |
298.200 |
|
11. Net Profit from Ordinary
Activities after tax (9+10) |
225.400 |
248.800 |
786.700 |
|
12. Extraordinary Items (net of tax expenses) |
-- |
-- |
-- |
|
13. Net Profit (11-12) |
225.400 |
248.800 |
786.700 |
|
14. Paid-up Equity Share Capital (face value of Re 1 each fully paid up) |
210.100 |
210.100 |
210.100 |
|
15 Reserve and Surplus |
|
|
|
|
16 Earning Per Shares (EPS)-Re1 each (Before extraordinary items)* |
|
|
|
|
a)Basic |
1.07 |
1.18 |
3.74 |
|
b)Diluted |
1.07 |
1.18 |
3.74 |
|
17Earnings per Shares (EPS)-Re 1 each (After extraordinary items)* |
|
|
|
|
a)Basic |
1.07 |
1.18 |
3.74 |
|
b)Diluted |
1.07 |
1.18 |
3.74 |
|
15. Public shareholding |
|
|
|
|
- No. of shares |
106043090 |
106043090 |
106043090 |
|
- % of holding (to total shareholding) |
50.47 |
50.47 |
50.47 |
|
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered |
|
|
|
|
-Number of Shares |
-- |
-- |
-- |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
-- |
-- |
-- |
|
-% of Shares (as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
104085280 |
104085280 |
104085280 |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
100.00 |
|
-% of Shares (as a % of the total share capital of the Company) |
49.53 |
49.53 |
49.53 |
|
INVESTOR COMPLAINTS |
Quarter ended 31.12.2012 |
|
Pending at the beginning of the quarter |
1 |
|
Received during the quarter |
1 |
|
Disposed if during the quarter |
1 |
|
Remaining unresolved the end of the quarter |
1 |
*Resolved Subsequently
Note:
1. The above financial results were reviewed and recommended by the audit committee and thereafter approved by the Board Directors at its meeting held on 11th February 2013. As required under Clause 41 of the listing agreement, Limited review of the above mentioned results has been completed by the Statutory auditors of the company and the report of the same has been placed before the board.
2. Sales for the Nine months ended 31st December,2012 includes exports of Rs.5194.416 Millions (last year same period Rs. 4738.936 Millions) other operating income includes foreign exchange gains of Rs. 113.376 Millions (Last year same quarter Rs.81.744 Millions)
3.
The Company operates in only one segment
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
On letters of guarantee The Company has given guarantees to fulfill various obligations of
Cramlington Precision Forge Limited, UK and Sundram Fasteners (Zhejiang)
Limited, People’s Republic of China, wholly owned subsidiaries of the Company
the amount of which is to the extent of non-fulfilment of obligations of the
subsidiaries which is not ascertainable. |
227.600 |
147.472 |
|
On letters of credit |
65.952 |
17.188 |
|
On guarantee issued to Housing Development
Finance Corporation on behalf of employees |
0.170 |
0.601 |
|
On partly paid shares of the Adyar
Property Holding Company Limited |
0.001 |
0.001 |
|
Estimated contingent liability for stamp
duty in respect of leased land at Uttarkhand |
0.000 |
0.362 |
|
Claims against the Company not
acknowledged as debts |
0.000 |
0.277 |
FIXED ASSETS
v
Aircraft
v
Land
v
Buildings
v
Plant and Machinery
v
Furniture, Fixtures and Office Equipments
v
Vehicles
v
Technical Know-how
Profile
Their Company
Subject is a part of the US $5 billion TVS Group, headquartered in
Chennai, India. The Company has established a track record of leadership over
40 years. With a diversified product line, world-class facilities in 4
countries and motivated team of talented people, Sundram Fasteners has become a
supplier of choice to leading customers in the automotive and industrial
segments worldwide.
The product range consists of high-tensile fasteners, powder metal components,
cold extruded parts, hot forged components, radiator caps, automotive pumps,
gear shifters, gears and couplings, hubs and shafts, tappets and iron powder.
Over the years, the Company has acquired cutting-edge technological
competencies in forging, metal forming, close-tolerance machining, heat treatment,
surface finishing and assembly.
Manufacturing locations are supported by engineering and design
personnel working on new product design and development. Understanding the
global nature of business and the need to provide quality products on “just in
time” basis to customers, the company has established supply chain logistics
networks spanning several continents.
At Subject, growth is a natural outcome of total adherence to three core
operating principles: customer orientation, total quality and ethical business
practices.
PRESS RELEASE
SUNDRAM FASTENERS BETS ON US MARKET FOR GROWTH
CHENNAI, AUGUST 3
With the domestic auto market slowing, components maker Sundram Fasteners Limited (SFL) is fastening its grip on the US market.
“Our exports have just boomed. The rupee going down has boosted us quite a bit; the good-old greenback is getting its due,” said Suresh Krishna, Chairman and Managing Director.
“America is not stagnant anymore. It is growing slowly at 2-3 per cent. We expect most growth from US exports,” said Krishna.
Key contributor
The US accounts for over 70 per cent of SFL’s exports of Rs 646 crore in 2011-12. General Motors, Ford and Cummins are its big customers. The company’s revenue for FY 12 was Rs 21470.000 millions.
Having established a brand name for itself exporting radiator caps to GM in the mid-90s, SFL is now set for the long haul in exports. “Our exports began by selling radiator caps to over 20 factories in America. This helped us get first-hand knowledge of how international business has to be conducted.”
Today, fasteners and shafts have completely overtaken radiator caps, which is only Rs 500.000 millions out of the company’s exports. The company is fully geared for exports, said Krishna – “whether it is meeting quality demands, delivery demands, warehousing or logistics. Exports have become a way of life for us.”
Exports rise
Exports rose 35 per cent in 2011-12 over the previous year. Production for export markets happens at its plants in Chennai.
However, Europe is not doing well. Sundram Fasteners bought Peiner Umformtechnik in Germany in 2005; things were going well for two years. “Now, Europe has just gone into a shell,” rued Krishna. The German company registered losses of Rs 288.100 millions in 2011.
The company’s subsidiary in Cramlington (SFL acquired Cramlington Precision Forge in 2003) is managing to “keep its head above water.”
The plant here supplies to both the UK and India.
However, exports still account for only 30-35 per cent of total revenue. While that will grow, “we cannot say we will completely go export-oriented. The domestic market is very important to us,” says Krishna.
SFL has chalked out a Rs 1500.000-millions capex plan for this year. But with auto companies in India cutting back, the company does not see big room for expansion in the country. If things continue like this for a few more months, the company may have to rethink, says Krishna.
The company had invested in a Rs 500.000-millions plant to make seamless tappets (which lift valves) for Maruti’s new-gen engines in with technology from Hitachi. But with Maruti shut down in Manesar, SFL is looking to supply to other players.
PRESS RELEASE
Sundram Fasteners Limited achieved a net profit after tax of Rs.359.000 millions for the half year ended 30th September, 2009 as against Rs.220.200 millions reported during the same period in the previous year, an increase of 63%. Earnings per share (on face value of Re 1 per share) for the half year amounted to Rs. 1.71 (Rs. 1.05).
Gross Profit before interest, depreciation and provision for taxation was at Rs. 887.900 millions (Rs, 1129.300 millions) . The margins continued to be under pressure due to increase in cost of raw materials, manufacturing inputs and additional usage of captive power.
Operating expenses were at Rs. 5263.400 millions (Rs. 6396.500 millions). Interest charges were Rs 154.400 millions (Rs 185.600 millions). Exchange fluctuations on foreign currency loans resulted in a gain of Rs.39.100 millions as against a loss of Rs. 402.000 millions.
Depreciation for the half year was Rs. 241.900 millions (Rs. 207.800 millions). The provision for taxes was at Rs. 171.700 millions (Rs. 113.700 millions).
Total sales and other income were at Rs. 6151.300 millions (Rs. 7525.800 millions). Export sales for the period was at Rs.1417.300 millions ( Rs. 2336.400 millions) and domestic sales, net of excise duties, was at Rs.4724.400 millions ( Rs. 5180.300 millions), due to decline in demand.
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.54.34 |
|
|
1 |
Rs.82.56 |
|
Euro |
1 |
Rs.70.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
58 |
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.