MIRA
INFORM REPORT
|
Report Date : |
12.11.2013 |
DENTIFICATION DETAILS
|
Name : |
RASANDIK ENGINEERING INDUSTRIES INDIA LIMITED |
|
|
|
|
Registered
Office : |
14, Roj-Ka-Meo Industrial Area, Sohana, District Gurgaon – 122103,
Haryana |
|
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|
|
Country : |
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|
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Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of Incorporation
: |
10.01.1984 |
|
|
|
|
Com. Reg. No.: |
05-032293 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 47.250
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74210HR1984PLC032293 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
RTKR02241B |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer of Components and Aggregates for Automotive Sector
and Aerospace Industry and Three Wheeler Products. |
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|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 999700 |
|
|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. The company has recorded better growth in Profit and Sales turnover
during the financial year 2013. General financial position of the company appears to be fair. Trade relations are fair. Business is active. Payment terms are
usually correct. 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International Finance
Corporation expects to come out with its rupee linked bonds issue before the
end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs
41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched
in
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
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
|
Name : |
Mr. Mohan Sukhal |
|
Contact No.: |
91-9810048099 |
|
Date : |
01.11.2013 |
LOCATIONS
|
Registered Office : |
14, Roj-Ka-Meo Industrial Area, Sohana, District Gurgaon – 122103, |
|
Tel. No.: |
91-1272-2362646 / 2362647 / 2363245-46 |
|
Fax No.: |
91-1272-2362107 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Corporate Office : |
525,
Udyog Vihar, Phase-V, Gurgaon – 122016, |
|
|
|
|
Engineering Design and Training Division : |
REIL Engineering Solutions (Engineering Design and
Training Division) C 4 and 5, 1st Floor, C Block, Commercial
Complex, Paschimi Marg, Vasant Vihar, New Delhi – 110057, India |
|
|
|
|
Factory 1 : |
Sohna Plant 13-14, Roz-Ka-Meo, Industrial Area, Sohna, District Gurgaon – 122103, |
|
E-Mail : |
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Factory 2 : |
Tools and Dies
Plant 1, Roz-Ka-Meo Industrial Area, Sohna, District- Gurgaon – 122103, |
|
E-Mail : |
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|
|
|
Factory 3 : |
Surajpur Plant A-1/2-2 and A-1/2-3, Site B, Surajpur Industrial Area, District Gautambudh Nagar - 201306, Uttar Pradesh, India |
|
E-Mail : |
|
|
|
|
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Factory 4 : |
Pune
Plant E 82 and 83, Ranjangaon Industrial Area, Ranjangaon, District
Pune, Maharashtra, India |
|
E-Mail : |
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|
|
|
|
Factory 5 : |
Mysore
Plant Plot No. 45 and 48, KIADB Industrial Area, Nanjangud,
District Mysore, Karnataka, India |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Suresh Chandra Kapoor |
|
Designation : |
Chairman |
|
Date of Birth : |
10.06.1929 |
|
Qualification : |
Engineering Graduate |
|
Date of Appointment : |
13.06.1992 |
|
|
|
|
Name : |
Mr. Rajiv Kapoor |
|
Designation : |
Managing Director |
|
Date of Birth : |
04.11.1955 |
|
Qualification : |
B. Tech. (Mechanical) IIT–Delhi, Graduated in 1977 |
|
Date of Appointment : |
10.01.1984 |
|
|
|
|
Name : |
Ms. Deepika Kapoor |
|
Designation : |
Director |
|
Date of Birth : |
26.11.1957 |
|
Qualification : |
B. Ed. Graduate |
|
Expertise in specific functional area : |
Administration |
|
Date of Appointment : |
10.01.1984 |
|
|
|
|
Name : |
Mr. Shyam S Sethi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. S. Ramaprasad |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gorav Arora |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1083547 |
22.93 |
|
|
1465358 |
31.01 |
|
|
0 |
0.00 |
|
|
2548905 |
53.95 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2548905 |
53.95 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3100 |
0.07 |
|
|
3100 |
0.07 |
|
|
|
|
|
|
289147 |
6.12 |
|
|
|
|
|
|
1063283 |
22.50 |
|
|
695830 |
14.73 |
|
|
124735 |
2.64 |
|
|
121081 |
2.56 |
|
|
3654 |
0.08 |
|
|
2172995 |
45.99 |
|
Total Public shareholding (B) |
2176095 |
46.05 |
|
Total (A)+(B) |
4725000 |
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) |
4725000 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Components and Aggregates for Automotive
Sector and Aerospace Industry and Three Wheeler Products. |
||||||
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Products/ Services : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Steel Fabrication |
M.T. |
N.A |
58230 |
50,374 |
GENERAL INFORMATION
|
Customers : |
· Maruti Suzuki Tata Motors Fiat Honda GM HM TVS LCV New Holland Claas Mahindra Toyota Hero Motors Force Ashok Leyland Tractors |
||||||||||||||||||||||||
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No. of Employees : |
Not Available |
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Bankers : |
· Oriental Bank of Commerce ICICI Bank Limited Kotak Mahindra Bank Limited Canara Bank State Bank of India HDFC Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Awatar and Company Chartered Accountants |
|
Address : |
1203, Rohit House, 3, Tolstoy Marg,
New Delhi – 110001, India |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,725,000 |
Equity Shares |
Rs. 10/- each |
Rs. 47.250
Millions |
|
|
|
|
|
Reconciliation of the number of equity shares
|
Equity Shares |
31.03.2013 |
|
|
|
Number of Shares |
Rs. in Millions |
|
Number of shares outstanding as at beginning of the year |
4,725,000 |
47.250 |
|
Add: Number of shares allotted as fully
paid-up bonus shares during the year |
-- |
-- |
|
Number of shares allotted during the year as
fully paid-up pursuant to a contract without payment being received in cash |
-- |
-- |
|
Number of shares allotted to employees
pursuant to ESOPs/ESPs |
-- |
-- |
|
Number of shares allotted for cash pursuant
to public issue |
-- |
-- |
|
|
4,725,000 |
47.250 |
|
Less: Number of shares bought back
during the year |
-- |
-- |
|
Number of shares outstanding as at end of the year |
4,725,000 |
47.250 |
Shares in the company held by each shareholder holding more than 5%
shares
|
Equity Shares |
31.03.2013 |
|
|
|
Number of Shares |
Percentage |
|
Rajiv Kapoor |
809,447 |
17.13% |
|
Radhika Securities Private Limited |
651,418 |
13.79% |
|
Ganesha Securities Private Limited |
616,740 |
13.05% |
|
Total |
2,077,605 |
43.97% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
47.250 |
47.250 |
47.250 |
|
(b) Reserves & Surplus |
202.674 |
170.580 |
309.195 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
249.924 |
217.830 |
356.445 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
300.665 |
374.277 |
506.780 |
|
(b) Deferred tax liabilities (Net) |
177.309 |
176.101 |
162.699 |
|
(c) Other long
term liabilities |
227.192 |
186.090 |
132.830 |
|
(d) long-term
provisions |
16.817 |
16.109 |
14.371 |
|
Total Non-current
Liabilities (3) |
721.983 |
752.577 |
816.680 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
496.027 |
473.457 |
307.094 |
|
(b)
Trade payables |
405.675 |
462.818 |
417.845 |
|
(c)
Other current liabilities |
957.883 |
919.450 |
831.203 |
|
(d) Short-term
provisions |
10.023 |
8.323 |
9.740 |
|
Total Current
Liabilities (4) |
1869.608 |
1864.048 |
1565.882 |
|
|
|
|
|
|
TOTAL |
2841.515 |
2834.455 |
2739.007 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1623.745 |
1696.230 |
1546.489 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
386.505 |
356.656 |
319.056 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
45.368 |
45.997 |
73.255 |
|
(e) Other
Non-current assets |
0.383 |
1.149 |
0.656 |
|
Total Non-Current
Assets |
2056.001 |
2100.032 |
1939.456 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
399.186 |
353.041 |
317.627 |
|
(c)
Trade receivables |
255.888 |
245.690 |
263.239 |
|
(d) Cash
and cash equivalents |
34.925 |
39.804 |
89.487 |
|
(e)
Short-term loans and advances |
75.497 |
75.835 |
105.814 |
|
(f)
Other current assets |
20.018 |
20.053 |
23.384 |
|
Total
Current Assets |
785.514 |
734.423 |
799.551 |
|
|
|
|
|
|
TOTAL |
2841.515 |
2834.455 |
2739.007 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
2423.044 |
2218.497 |
2677.756 |
|
|
|
Other Income |
5.277 |
7.071 |
18.509 |
|
|
|
TOTAL (A) |
2428.321 |
2225.568 |
2696.265 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1582.329 |
1546.815 |
1745.443 |
|
|
|
Changes in inventories of finished goods, trade goods and work in
progress |
10.235 |
(13.686) |
38.903 |
|
|
|
Manufacturing and Operating Expenses |
200.680 |
205.994 |
252.668 |
|
|
|
Employee benefit expenses |
179.247 |
189.096 |
202.022 |
|
|
|
Other expenses |
129.139 |
135.159 |
148.889 |
|
|
|
TOTAL (B) |
2101.630 |
2063.378 |
2387.925 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
326.691 |
162.190 |
308.340 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
150.754 |
160.104 |
141.827 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
175.937 |
2.086 |
166.513 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
133.797 |
127.278 |
124.791 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
42.140 |
(125.192) |
41.722 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10.046 |
13.423 |
21.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
32.094 |
(138.615) |
20.502 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
30.270 |
43.986 |
18.887 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
27.355 |
37.380 |
81.521 |
|
|
|
Stores and Spares |
6.318 |
1.355 |
1.194 |
|
|
|
Plant and Machinery |
0.000 |
185.535 |
14.507 |
|
|
TOTAL IMPORTS |
33.673 |
224.270 |
97.222 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
6.79 |
(29.34) |
4.34 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.32
|
(6.23) |
0.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.74
|
(5.64) |
1.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.72
|
(5.05) |
1.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
(0.57) |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.19
|
3.89 |
2.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.42
|
0.39 |
0.51 |
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 |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
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 |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10225242 |
20/05/2010 |
100,000,000.00 |
ALLAHABAD BANK |
INTERNATIONAL BRANCH, 17, PARLIAMENT STREET, NEW DELHI - 110001, INDIA |
A87844973 |
|
2 |
10208824 |
15/03/2010 |
115,300,000.00 |
TATA CAPITAL LIMITED |
ONE FORBES, DR V B GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
A81845612 |
|
3 |
90051557 |
19/05/2005 |
30,000,000.00 |
YES BANK LIMITED |
NEHRU CENTRE; 9TH; FLOOR,
DESCOVERY OF INDIA; DR. |
- |
|
4 |
80001244 |
07/09/2012 * |
1,274,900,000.00 |
ORIENTAL BANK OF COMMERCE |
89, HEMKUNT CHAMBER, NEHRU PLACE, NEW DELHI - 110019, INDIA |
B61274783 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Term loans from other parties |
23.375 |
52.922 |
|
Deferred payment liabilities |
11.533 |
23.999 |
|
SHORT TERM BORROWINGS |
|
|
|
Term loans from other parties |
104.612 |
72.730 |
|
Loans and advances from related parties |
2.948 |
0.000 |
|
|
|
|
|
Total |
142.468 |
149.651 |
OPERATING RESULTS
During the year,
the overall performance of the Company showed upward movement as compared to
the previous year. The total revenue (gross) of the company for the year ended
31st March, 2013 was Rs. 2771.710 millions as compared to Rs. 2502.410 millions
in the previous year. The profit before depreciation, finance cost, taxation is
increased to Rs. 326.690 millions from Rs. 162.190 millions in the previous
year. The net profit after depreciation and finance cost is Rs. 42.140 millions
for the current financial year as compared to loss of Rs.125.190 millions in
the previous year. The Profit after tax is Rs. 32.090 millions in comparison to
loss of Rs.138.610 millions in previous year.
PROSPECTS FOR THE
CURRENT YEAR
The Company is
expecting a growth of at least 10% for the coming financial year 2012-13. The
prospect for the current year seems bright, as the company has received number
of orders in the areas of TWB and Component Manufacturing.
MANAGEMENT DISCUSSION AND ANALYSIS
INDIA: A VIBRANT
ECONOMY
India is already
the sixth largest automotive manufacturer in the world, with the industry
contributing about six per cent to GDP, 22 per cent to manufacturing GDP, and
generating direct employment for over a million people and indirect employment
for 15 million. The industry is one of the key drivers of economic growth of
the nation in terms of the nation's gross domestic product (GDP), creating
employment, or raising standards of living. Since the delicensing of the sector
in 1991 and the subsequent opening up of 100 percent FDI through automatic
route, Indian automobile sector has come a long way. Today, almost every global
auto major has set up facilities in the country.
INDIAN SCENARIO -
AN OVERVIEW
The outlook for
FY2014 also does not look very positive. The root cause of what is affecting
the industry is due to the volatile economic environment, uncertainty over
economic growth, high vehicle financing rates, high inflation leading to people
making fewer discretionary expenses and rising fuel prices, as well as policy
shocks such as the additional three per cent duty on SUVs.
Considering the
enormous contribution and potential of this industry, its emergence from the
slowdown needs to be high priority for the country at large and not just the
auto industry. The automotive industry needs both measures to boost the sector
in the short term as well as long term policy interventions to sustain the
growth momentum. Some examples are taxation policies, fleet modernisation
programmers and a boost to infrastructure development.
Automobile
companies across segments continue to face tremendous pressure on profit
margins due to elevated inflation levels. Added to this are the heightened
marketing costs incurred and heavy discounts offered by vehicle manufacturers to
attract consumers to the showrooms. This partially explains the price hikes
initiated by the vehicle OEMs to protect margins, despite the weak demand
environment. Going ahead, amidst rising market competition, new product
launches, as also product refreshes planned, OEMs are expected to increase
spend on marketing and promotional activities. Although commodity prices are
not expected to witness steep hikes, overall cost and competitive pressures
would keep the profit margins under pressure.
Factors that will
drive growth in the sector
· Rising incomes among Indian population will lead to increased affordability, increasing domestic demand for vehicles, especially in the small car segment.
Fuel
economy and demand for greater fuel efficiency is a major factor that affects
consumer purchase decision that will bring leading companies across two-wheeler
and four-wheeler segment to focus on delivering performance oriented products.
Product
innovation and market segmentation will channelize growth. Vehicles based on
alternative fuels will be an area of interest for both consumers and auto
makers.
Focus
on establishing India as auto-manufacturing hub is reigning in policy support
in form of Government's technology modernisation fund.
Challenges -
Typical of a high Growth Emerging Market
· Raising Capital and Scaling Capacities
Infrastructure
Challenges
– Roads
– Ports
– Power
Inflation
Availability
of Skilled Manpower
Managerial
Depth across Tiers
R
and D Competence
OUTLOOK:
Outlook and some
of the key strategies that vehicle manufacturers are likely to adopt in 2013
are listed below:
Commercial
Vehicles
Launch new models
Increased customer
focus by expanding sales and service network
Focus on product innovation
to create new market segments
Develop new
products for the international markets
Expand footprint
to newer export markets
Continue thrust on
cost control and productivity improvement measures
Greater thrust on
and expansion of less cyclical businesses.
Passenger
Vehicles:
Launch new vehicle
models, especially more diesel models
Increase focus on
tier II and tier III markets, even for high-end models
Expand sales and
service network for enhanced customer satisfaction
Increase focus on
expanding pre-owned vehicle business
Continue thrust on
cost control and productivity improvement measures
Leverage social media to establish closer bonds with customers.
Two wheelers:
Increase focus on
small towns and rural markets (e.g. expansion of distribution/service network).
Increase focus on emerging markets such as Brazil, Africa, Argentina,
Indonesia, etc to push exports.
CONTINGENT
LIABILITIES:
a)
Letters of credit opened by Bank - Rs 177.224
Millions (Previous Year Rs. 189.170 Millions)
b)
Bank guarantees given by the bank on behalf of
Company - Rs. 19.760 Millions (Previous year - Rs. 12.985 Millions)
c)
Export obligation under EPCG License- Rs 83.834
Millions (Previous Year Rs. 87.614 Millions)
d)
Guarantees given by the Company on behalf of loan of
employees- Rs. (0.157) Million (Previous Year Rs. 0.237 Million)
FIXED ASSETS:
·
Land
Buildings
(Owned)
Plant
and Equipment (Owned)
Dies,
Jigs and Fixture (Owned)
Furniture
and Fixtures (Owned)
Vehicles
(Owned)
Office
equipment (Owned)
Computers
and Other Peripherals (Owned)
Utilities
(Owned)
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. 63.30 |
|
|
1 |
Rs. 101.36 |
|
Euro |
1 |
Rs. 84.60 |
INFORMATION DETAILS
|
Information Gathered
by : |
NAY |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.