MIRA INFORM REPORT
|
Report Date : |
22.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
MRF LIMITED |
|
|
|
|
Registered
Office : |
New No. 114, (Old
No. 124), |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2012 |
|
|
|
|
Date of
Incorporation : |
05.11.1960 |
|
|
|
|
Com. Reg. No.: |
18-004306 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.42.400
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25111TN1960PLC004306 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEM07088E CHEM06754G CHEM04457F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM4154G |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s Shares
are Listed on the Stock Exchanges. |
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|
|
|
Line of Business
: |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
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|
|
|
No. of Employees
: |
15494 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (83) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 114000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well established and reputed company having fine track
record. The company has a brand image in the mind of consumer. It is one of
the leading brand company in the tyre sector. There appears slight dip in the profitability of the company during
current year. However financial position of the company appears to be sound.
Fundamentals of the company are strong and healthy. Trade relations are fair.
Business is active. Payments are reported to be regular and as per
commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been named
the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest credit quality and lowest credit
risk |
|
Date |
09.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Very string degree of safety and lowest
credit risk |
|
Date |
09.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
New No. 114, (Old
no. 124) Greames Road, Chennai – 600 006, Tamilnadu, India |
|
Tel. No.: |
91-44-28292777 |
|
Fax No.: |
91-44-28295087/
28294089 28291844/ 0562 |
|
E-Mail : |
|
|
Website : |
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|
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Factory 1: |
Tiruvottiyur, Chennai, |
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|
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Factory 2: |
Vadavathoor, |
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Factory 3: |
Usgao, Ponda, |
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Factory 4: |
Icchiputhur, Arakonam, |
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Factory 5: |
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Factory 6: |
Sadasivapet, Medak, |
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Factory 7: |
|
DIRECTORS
As on 30.09.2012
|
Registered Office : |
New No. 114, (Old
no. 124) |
|
Tel. No.: |
91-44-28292777 |
|
Fax No.: |
91-44-28295087/
28294089 28291844/ 0562 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
Tiruvottiyur, Chennai, |
|
|
|
|
Factory 2: |
Vadavathoor, |
|
|
|
|
Factory 3: |
Usgao, Ponda, |
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|
|
|
Factory 4: |
Icchiputhur, Arakonam, |
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|
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|
Factory 5: |
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|
|
|
|
Factory 6: |
Sadasivapet, Medak, |
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|
|
|
Factory 7: |
|
KEY EXECUTIVES
|
Name : |
Mr. Ravi Mannath |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Kurian and
Kurian |
|
Designation : |
Legal Advisors |
SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
564016 |
13.30 |
|
|
572399 |
13.50 |
|
|
1136415 |
26.80 |
|
|
|
|
|
|
21625 |
0.51 |
|
|
21625 |
0.51 |
|
Total
shareholding of Promoter and Promoter Group (A) |
1158040 |
27.30 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
296481 |
6.99 |
|
|
5331 |
0.13 |
|
|
165740 |
3.91 |
|
|
192716 |
4.54 |
|
|
660268 |
15.57 |
|
|
|
|
|
|
1089032 |
25.68 |
|
|
|
|
|
|
930658 |
21.94 |
|
|
403145 |
9.51 |
|
|
2422835 |
57.13 |
|
Total
Public shareholding (B) |
3083103 |
72.70 |
|
Total
(A)+(B) |
4241143 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
4241143 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
||||||||||
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|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As on 30.09.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automobile Tyres |
Nos. |
@ |
34300000 |
34771158 |
|
Automobile Tubes |
Nos. |
@ |
33100000 |
31381790 |
|
Tread Rubber |
MT |
7946 |
8943 |
1056 |
|
Pre-cured Treads |
MT |
@ |
24000 |
7683 |
|
Conveyor Belting |
MT |
@ |
3000 |
2042 |
|
Specialty Surface
Coatings |
KL |
@ |
2000 |
1484** |
@ Not Applicable
since delicensed.
+ On 3 shifts per
day basis for 300 days per annum.
** Outsourced
production.
Figures in brackets are in respect of previous year
GENERAL INFORMATION
|
No. of Employees : |
15494 (Approximately) |
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Bankers : |
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|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
Sastri and Shah Chartered
Accountants |
|
Address : |
Chennai,
Tamilnadu, India |
|
|
|
|
Name 2 : |
M. M. Nissim and
Company Chartered
Accountants |
|
Address : |
Mumbai,
Maharashtra, India |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 30.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs.90.000 Millions |
|
100000 |
Taxable, Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
|
Total |
|
Rs.100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4241143 |
Equity Shares |
Rs.10/- each |
Rs.42.400
Millions |
Rights, preferences
and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
|
Comprehensive Investment and Finance Company Private Limited |
422069 |
|
MOWI Private Limited |
507984 |
|
Enam Shares and Securities Private Limited |
266713 |
|
Total |
1196766 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
30.09.2012 |
30.09.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
42.400 |
42.400 |
|
(b) Reserves & Surplus |
|
28535.600 |
22935.300 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
28578.000 |
22977.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
|
11027.100 |
9614.900 |
|
(b) Deferred tax
liabilities (Net) |
|
1867.200 |
1418.000 |
|
(c)
Other long term liabilities |
|
9080.300 |
7757.500 |
|
(d)
long-term provisions |
|
872.900 |
496.300 |
|
Total
Non-current Liabilities (3) |
|
22847.500 |
19286.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
5287.200 |
4100.700 |
|
(b)
Trade payables |
|
9394.300 |
10158.300 |
|
(c)
Other current liabilities |
|
4543.300 |
5267.900 |
|
(d)
Short-term provisions |
|
1472.400 |
1567.700 |
|
Total
Current Liabilities (4) |
|
20697.200 |
21094.600 |
|
|
|
|
|
|
TOTAL |
|
72122.700 |
63359.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
29078.100 |
19675.700 |
|
(ii)
Intangible Assets |
|
59.900 |
38.100 |
|
(iii)
Capital work-in-progress |
|
4146.500 |
10422.500 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b)
Non-current Investments |
|
715.400 |
726.900 |
|
(c)
Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
572.300 |
1464.300 |
|
(e)
Other Non-current assets |
|
304.600 |
237.400 |
|
Total
Non-Current Assets |
|
34876.800 |
32564.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
3531.700 |
0.000 |
|
(b)
Inventories |
|
16455.900 |
15260.200 |
|
(c)
Trade receivables |
|
14540.900 |
13088.600 |
|
(d)
Cash and cash equivalents |
|
611.000 |
559.800 |
|
(e)
Short-term loans and advances |
|
2034.200 |
1820.300 |
|
(f)
Other current assets |
|
72.200 |
65.200 |
|
Total
Current Assets |
|
37245.900 |
30794.100 |
|
|
|
|
|
|
TOTAL |
|
72122.700 |
63359.000 |
|
SOURCES OF FUNDS |
|
|
30.09.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
42.400 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
16864.400 |
|
|
4] (Accumulated Losses) |
|
|
0.0000 |
|
|
NETWORTH |
|
|
16906.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
4879.600 |
|
|
2] Unsecured Loans |
|
|
8201.200 |
|
|
TOTAL BORROWING |
|
|
13080.800 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
DEFFERED PAYMENT CREDIT |
|
|
463.800 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
30451.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
13289.100 |
|
|
Capital work-in-progress |
|
|
4977.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
726.900 |
|
|
DEFERREX TAX ASSETS |
|
|
150.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
11106.800 |
|
|
Sundry Debtors |
|
|
8114.900 |
|
|
Cash & Bank Balances |
|
|
451.800 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
1272.900 |
|
Total
Current Assets |
|
|
20946.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
6633.300 |
|
|
Other Current Liabilities |
|
|
1293.400 |
|
|
Provisions |
|
|
1711.500 |
|
Total
Current Liabilities |
|
|
9638.200 |
|
|
Net Current Assets |
|
|
11308.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
30451.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
118701.800 |
97353.400 |
74527.200 |
|
|
|
Export Incentives |
0.000 |
78.300 |
110.200 |
|
|
|
Other Income |
320.100 |
253.100 |
181.100 |
|
|
|
TOTAL (A) |
119021.900 |
97684.800 |
74818.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
83442.700 |
73791.600 |
|
|
|
|
Purchase of Stock-in-Trade |
264.800 |
330.200 |
|
|
|
|
Employee benefits expense |
5136.900 |
4467.500 |
|
|
|
|
Other expenses |
17425.700 |
13799.400 |
|
|
|
|
Exceptional Item (Excess Depreciation reversal in respect of earlier year) |
0.000 |
(4042.300) |
|
|
|
|
Changes in Inventories of Finished Goods, Stock-in-process & Stock-in-Trade |
(178.300) |
(3051.100) |
|
|
|
|
TOTAL (B) |
106091.800 |
85295.300 |
66233.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12930.100 |
12389.500 |
8585.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1587.800 |
976.700 |
631.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11342.300 |
11412.800 |
7954.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3011.100 |
2476.300 |
2607.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8331.200 |
8936.500 |
5346.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2607.600 |
2742.300 |
1806.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5723.600 |
6194.200 |
3539.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
25.400 |
25.400 |
25.400 |
|
|
|
Final Proposed Dividend |
80.600 |
80.600 |
80.600 |
|
|
|
Special Proposed Dividend |
0.000 |
0.000 |
106.000 |
|
|
|
Tax Thereon |
17.300 |
17.300 |
35.200 |
|
|
|
Debenture Redemption Reserve |
288.000 |
179.400 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5312.300 |
5891.500 |
3292.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
12805.500 |
8233.000 |
6692.700 |
|
|
|
Others |
12.800 |
3.800 |
4.100 |
|
|
TOTAL EARNINGS |
12818.300 |
8236.800 |
6696.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
31175.700 |
23076.600 |
18182.200 |
|
|
|
Components & Spare Parts |
412.400 |
381.700 |
146.100 |
|
|
|
Capital Goods |
1448.200 |
3390.100 |
1515.500 |
|
|
TOTAL IMPORTS |
33036.300 |
26848.400 |
19843.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1349.52 |
1460.50 |
834.63 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.12.2012 1st
Quarter |
31.03.2013 2nd Quarter |
30.06.2013 3rd
Quarter |
|
Net Sales |
30257.500 |
29063.000 |
30514.600 |
|
Total Expenditure |
26226.500 |
24621.000 |
25680.300 |
|
PBIDT (Excl OI) |
4031.000 |
4442.000 |
4834.300 |
|
Other Income |
29.300 |
53.700 |
85.800 |
|
Operating Profit |
4060.300 |
4495.700 |
4920.100 |
|
Interest |
498.500 |
496.100 |
478.800 |
|
PBDT |
3561.800 |
3999.600 |
4441.300 |
|
Depreciation |
891.900 |
936.000 |
934.200 |
|
Profit Before Tax |
2669.900 |
3063.600 |
3507.100 |
|
Tax |
867.700 |
957.500 |
1234.300 |
|
Profit After Tax |
1802.200 |
2106.100 |
2272.800 |
|
Net Profit |
1802.200 |
2106.100 |
2272.800 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
PAT / Total Income |
(%) |
4.81 |
6.34 |
4.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.02 |
9.18 |
7.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.85 |
25.50 |
15.62 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29 |
0.39 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.57 |
0.60 |
0.77 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.80 |
1.46 |
2.17 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if
available |
Yes |
CASE
DETAILS:
CHENNAI
COURT
CASE STATUS INFORMATION SYSTEM
|
Case
Status: |
Pending |
|
Status
Of: |
CIVIL REVISION PETITION |
|
Case
No.: |
2929 |
|
Year
: |
2013 |
|
Petitioner
: |
M/S FLYJAC LOGISTICS P LIMITED |
|
Respondent
: |
M/S MRF LIMITED |
|
Pet's
Advocate : |
M/S.T.V.BADRINARAYANAN |
|
Res's
Advocate : |
M/S NAGESWARAN AND NARICHANI |
|
Category
: |
NO CATEGORY MENTIONED |
|
|
Last Listed on: No Date Mentioned |
|
Case
Updated on : |
Oct 3 2013 |
UNSECURED LOANS:
|
Particulars |
30.09.2012 Rs. in Millions |
30.09.2011 Rs. in Millions |
|
Long Term Borrowings |
|
|
|
Term Loan from a Bank |
|
|
|
Buyers Line of Credit |
833.800 |
833.800 |
|
Fixed Deposits |
171.500 |
377.100 |
|
Sales Tax Deferral Scheme |
705.100 |
770.000 |
|
Others |
|
|
|
Deferred Payment Credit |
270.500 |
340.000 |
|
Total |
1980.900 |
2320.900 |
FINANCIAL RESULTS
During the year, The Company’s turnover increased by around 23% to Rs.130540.300 Millions from Rs.106370.300 Millions in the previous year. Across the board, there were positive increases in all segments with an 8% increase in total tyre production. Fluctuations in the raw material prices, increase in power and fuel cost and depreciation of rupee, have impacted the financial performance of the Company. Despite the above, The Company could achieve improved results, considering the challenging circumstances, due to better operating efficiencies and cost cutting measures which the Company has undertaken over a period of time.
During the year, The Company commenced production at its new plant at Tiruchirappalli in Tamil Nadu. This new modern plant along with their existing factories will help further consolidate their market leadership.
Two interim dividends of Rs. 3 each per share (30% each) for the year ended 30th September, 2012 were declared by the Board of Directors on 25-07-2012 and on 25-10-2012. The Board of Directors is now pleased to recommend a final dividend of Rs. 19 per share (190%) on the paid up equity share capital of the Company, for consideration and approval of the shareholders at the Annual General Meeting. With this, the total dividend for the entire year works out to Rs. 25 per share (250%). The total amount of dividends aggregates to Rs. 106.000 Millions.
After making provision for taxation, debenture redemption reserve and proposed dividend, an amount of Rs. 5312.300 Millions be transferred to General Reserve. With this, the Company’s Reserves and Surplus stands at Rs. 28535.600 Millions.
PROSPECTS FOR THE
CURRENT YEAR
While the demand outlook for tyres appear favourable with an 8 to 10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the government to improve the road infrastructure. Also, the government should study the inverted tax issue and take corrective action by providing a level playing field in
the tyre industry.
The Company hopes to record satisfactory results on account of MRF’s high brand preference and trust reposed by customers in MRF products.
AWARDS RECEIVED
DURING THE YEAR
During the year, MRF was awarded the “Top Export Award [Auto Tyre Sector]” by the All India Rubber Industries Association (AIRIA) yet another time during the period.
MANAGEMENT DISCUSSION
AND ANALYSIS
(Within the limits set by the Company’s competitive position) The core business of MRF is manufacturing, distribution and sale of tyres for various kinds of vehicles. The management discussion and analysis given below discusses the key issues for various sectors of the business.
TYRE INDUSTRY
STRUCTURE AND DEVELOPMENT
The turnover of the Indian tyre industry is valued at Rs. 410000.000 Millions in the period 2011-2012. Exports accounted for Rs.42000.000 Millions. 1254 lakh tyres were produced by the tyre companies. Seven top companies produce 80% of the total production.
Truck and bus tyres constitute 55% of the tyre industry turnover. Around 57% of the turnover is sold in the replacement market which is competitive but margins are better. The OE segment (30% of the turnover) cannot be ignored as volumes are high but margins are less as prices are dependent more on the manufacturers of vehicles. In the passenger car group, 47 % of tyres are sold to OEMs and 49% in the replacement segment.
The tyre industry is raw material intensive and predominantly cross-ply or bias-ply tyres are manufactured. The truck, bus and LCV segments continue to be cross-ply based due to poor road conditions, low OE fitment and high initial cost. Passenger tyres are currently 98% radial tyres. Radialisation in the light commercial vehicle group is 22% and in heavy vehicles (truck and bus) the level is 17%. Radialisation in commercial vehicles is expected to grow by 3% to 4% during 2012-13.
During 2011-12, in the vehicle manufacturing sector, there has been a decrease of 3% in the production of heavy commercial vehicles and a 30% increase in light commercial vehicles. There was an 8% increase in the small commercial vehicle segment. In the passenger car group, production has remained flat whereas in the utility group, there has been an increase of 39% over the last year. In two wheelers, scooters witnessed a 25% increase whilst in the motorcycle segment production increased by 5%. In the farm segment there was a 2% increase in production over 2010-11.
The tyre industry provides direct and indirect employment to one million people including dealers, retreaders and truck operators. The truck operations are controlled by 2.6 million small operators.
There are around 5000 tyre dealers spread throughout the country. Most of them sell multiple tyre brands.
SEGMENT WISE AND
PRODUCT WISE PERFORMANCE
During the period 2011-12, MRF achieved a turnover of Rs. 130540.300 Millions. This is an increase of around 23 % over the previous year. Across the board, there were positive increases in all segments with an 8% increase
in total tyre production. In the heavy commercial vehicle group, the largest segment, the increase was 7% over the last year. In the motorcycle and scooter segments, the increases over the previous year were 9% and 26% respectively. The passenger car group registered an increase of 7%. In the farm group, production increased in the tractor front group by 6% and by 18% in the tractor rear categories.
EXPORTS
Facing global recession and a challenging and competitive year, MRF posted a growth of 56% over the previous year 2010-11. In the year gone by, continued volatility in raw material prices and increased input costs definitely affected margins. MRF’s strong distributor network worldwide and brand presence in key markets contributed to a 23% growth in the heavy commercial vehicle segment.
OUTLOOK
While the demand outlook for tyres appear favourable with an 8 to10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment, and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the Government to improve the road infrastructure. Also, the Government should study the inverted tax issue and take corrective action by providing a level playing field for the tyre industry.
PERFORMANCE OF THE
COMPANY
The sales turnover of the Company during the year increased by around 23% from Rs. 106370.300 Millions in 2010-11 to Rs.130540.300 Millions in 2011-12. Earnings before depreciation and interest (EBIDTA) amounted to Rs. 12930.100 Millions against Rs. 8347.200 Millions in the previous year. After providing for depreciation and interest, the profit before tax for the year ended 30th September 2012 was Rs. 8331.200 Millions as compared to Rs. 4894.200 Millions in the previous year. During the previous year 2010-11, there was an exceptional credit of Rs. 4042.300 Millions representing reversal of excess depreciation of earlier years, due to change in method of depreciation from Written Down Value (WDV) to Straight Line Method (SLM). After making provision for income tax, the net profit for the year stood at Rs. 5723.600 Millions as compared to Rs. 6194.200 Millions in the previous year.
CONTINGENT
LIABILITIES NOT PROVIDED FOR: (AS ON 30.09.2012)
(i) Guarantees given by the Banks – Rs.271.300 Millions (Previous Year – Rs. 207.300 Millions).
(ii) Letters of Credit issued by the Banks – Rs. 1831.400 Millions (Previous Year – Rs. 2260.200 Millions).
(iii) Customs Duty on import of equipments and spare parts under EPCG Scheme – Rs. 946.200 Millions (Previous Year – Rs. 836.600 Millions).
(iv) Bills discounted with a bank - Rs 58.900 Millions (Previous Year - Rs. Nil).
(v) Claims not acknowledged as debts:
(a) Disputed Sales Tax demands pending before the Appellate Authorities – Rs. 17.300 Millions (Previous Year – Rs. 30.700 Millions).
(b) Disputed Excise/Customs Duty demands pending before the Appellate Authorities/High Court – Rs. 786.500 Millions (Previous Year – Rs. 804.300 Millions).
(c) Disputed Income Tax Demands – Rs.488.700 Millions (Previous Year – Rs. 375.200 Millions). Against the said demand the Company has deposited an amount of Rs. 459.300 Millions.
(d) Contested ESI Demands pending before High Court - Nil (Previous Year – Rs. 0.600 Millions).
INDEX OF CHARGE:
|
Sr .No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10330357 |
05/01/2012 |
2,046,160,000.00 |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD |
RAFFLES PLACE, # 01-01 REPUBLIC PLAZA, SINGAPORE, - 048619, SINGAPORE |
B30083505 |
|
2 |
10303189 |
25/08/2011 * |
5,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA |
B20844015 |
|
3 |
10279192 |
25/08/2011 * |
2,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA |
B20845285 |
|
4 |
10089059 |
28/01/2008 |
606,300,000.00 |
CALYON |
168 ROBINSON ROAD # 22-01, CAPITAL TOWER, SINGAPORE, - 0689125, SINGAPORE |
A32589152 |
|
5 |
10030186 |
08/12/2006 |
610,000,000.00 |
INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED |
ITC CENTRE, 3RD FLOOR760, ANNA SALAI, CHENNAI - |
A08378762 |
|
6 |
90285121 |
07/05/2012 * |
17,500,000,000.00 |
STATE BANK OF MYSORE |
231 N S C BOSE ROAD, CHENNAI, Tamil Nadu - 600001, |
B39210554 |
* Date of modification charge
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE
MONTHS ENDED 30TH JUNE, 2013
(Rs. In Millions)
|
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
30.06.2013 |
31.03.2013 |
30.06.2013 |
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Income from Operations |
|
|
|
|
Gross
Sales/Income from Operations |
34060.300 |
32273.200 |
99925.400 |
|
Less: Excise duty |
3571.800 |
3225.500 |
10154.500 |
|
Net Sales/Income from Operations |
30488.500 |
29047.700 |
89770.900 |
|
Other Operating Income |
26.100 |
16.300 |
66.200 |
|
Total income from operations ( net) |
30514.600 |
29064.000 |
89837.100 |
|
Expenses |
|
|
|
|
a) Cost of materials consumed |
19124.900 |
18234.700 |
57544.800 |
|
b) Purchases of stock-in-trade |
541.600 |
78.200 |
673.600 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
164.100 |
498.000 |
659.800 |
|
d) Employee benefits expense |
1527.000 |
1359.500 |
4230.700 |
|
e) Depreciation and amortisation expense |
934.200 |
936.000 |
2762.100 |
|
f) Other Expenses |
4322.700 |
4450.600 |
13418.900 |
|
Total Expenses |
26614.500 |
25557.000 |
79289.900 |
|
Profit from Operations before Other Income, finance
costs and exceptional items |
3900.100 |
3507.000 |
10547.200 |
|
Other Income |
85.800 |
52.700 |
166.800 |
|
Profit from Ordinary activities before finance costs
and exceptional items |
3985.900 |
3559.700 |
10714.000 |
|
Finance costs |
478.800 |
496.100 |
1473.400 |
|
Profit from Ordinary activities after finance costs
but before exceptional items |
3507.100 |
3063.600 |
9240.600 |
|
Exceptional Items |
- |
- |
- |
|
Profit from Ordinary
activities before tax |
3507.100 |
3063.600 |
9240.600 |
|
Tax Expense |
1234.300 |
957.500 |
3059.500 |
|
Net Profit from ordinary activities after tax |
2272.800 |
2106.100 |
6181.100 |
|
Extraordinary items |
- |
- |
- |
|
Net Profit for the period |
2272.800 |
2106.100 |
6181.100 |
|
Paid-up Equity Share Capital (Face value of Rs.10/-
each) |
42.400 |
42.400 |
42.400 |
|
Paid-up Debt Capital of the Company * |
7000.000 |
7000.000 |
7000.000 |
|
Reserve excluding Debenture Redemption Reserves as
per balance sheet of previous accounting year |
- |
- |
- |
|
Debenture Redemption Reserve(Cumulative) |
683.000 |
611.100 |
683.000 |
|
Earnings Per Share (Face value Rs.10/- each) |
|
|
|
|
Basic and diluted EPS (Rs. Per Share) |
535.89 |
496.58 |
1457.41 |
|
|
|
|
|
|
A.
Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
3084753 |
3087311 |
3084753 |
|
- Percentage of shareholding |
72.73% |
72.79% |
72.73% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
6550 |
13550 |
6550 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
0.57% |
1.17% |
0.57% |
|
Percentage of shares (as a % of total share capital of the
company) |
0.16% |
0.32% |
0.16% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
1149840 |
1140282 |
1149840 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
99.43% |
98.83% |
99.43% |
|
Percentage of shares (as a % of total share capital of the
company) |
27.11% |
26.89% |
27.11% |
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
NIL |
|
Receiving during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unreserved at the end of the quarter |
NIL |
Notes:
1) The above unaudited standalone
results have been subjected to Limited Review by the Statutory Auditors,
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on 25.07.2013
2)
The Company is dealing mainly in rubber products and
has no other reportable segment.
3)
The Board of Directors has approved the payment of
interim dividend of Rs.3/- Per share payable to Shareholders as on the Record
date: 07th August, 2013
4)
Provision for Taxation has been made in respect of
Income presently determined,subject to appropriate revision/adjustment on final
determination of Income for the Relevant Previous Year as per Income Tax
Act,1961, and net of Deferred Tax.
5)
Pending Long Term Wage Settlement, production at the
Kottayam Plant is affected. This has no material effect on the performance of
the Company.
* Paid up Debt Capital represents Secured
Redeemable Non-Convertible Debentures.
FIXED ASSETS:
- Land
- Buildings
- Plant and Machinery
- Moulds
- Furniture and Fixtures
- Computer
- Office Equipment
- Vehicles
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. 61.49 |
|
|
1 |
Rs. 99.41 |
|
Euro |
1 |
Rs. 84.12 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
NO |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
83 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.