MIRA
INFORM REPORT
|
Report Date : |
30.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT GEARS LIMITED |
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|
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Registered
Office : |
20 K M |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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|
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|
Date of
Incorporation : |
23.12.1971 |
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|
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|
Com. Reg. No.: |
55-034365 |
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|
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|
Capital
Investment / Paid-up Capital : |
Rs. 78.178 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29130HR1971PLC034365 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKB02585C |
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|
|
|
PAN No.: [Permanent Account No.] |
AAACB4860G |
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|
Legal Form : |
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 in the Automotive Gears business. |
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|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3000000 |
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|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track record. There appears drastic dip profitability of the company during the
financial year 2013. The ratings continue to reflect BGL’s established market position in
the automotive component industry. General financials position of the company
seems to be decent. Trade relations are fair. Business is active. Payment terms are
usually correct. The company can be considered for business dealing 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current account
deficit or CAD in April-June widened to 4.9 % of gross domestic product. High
imports of gold and oil led to a worsening of the trade deficit, resulting in
CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the
corresponding quarter of the previous financial year. The government aims to
bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2
billion in 2012/13.
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 Helsinki bagged the top
spot for the world’s most honest city while Lisbon, the capital of Portugal,
proved to be the least honest. The survey put hundreds of people to test
in four continents to find out just how honest they were by dropping wallets
and seeing how many would be returned.
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 India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
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 |
CRISIL |
|
Rating |
Long Term Rating = BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
18.09.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A2 |
|
Rating Explanation |
Strange degree of safety and low credit risk. |
|
Date |
18.09.2013 |
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.
INFORMATION DECLINED
Management Non-Cooperative (91-129-4288888)
LOCATIONS
|
Registered Office/ Factory 1 : |
20 K M |
|
Tel. No.: |
91-129-4288888 |
|
Fax No.: |
91-129-4288822 |
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E-Mail : |
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|
Website : |
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Corporate Office/ Branch Office
: |
14th Floor, Hoechst House, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Tel. No.: |
91-22-2883180 |
|
|
|
|
Factory 2 : |
Kausa Shil Mumbra, District – Thane – 400612, Maharashtra, India |
|
Tel. No.: |
91-22-25352692/25352034 |
|
Fax No.: |
91-22-25351651 |
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E-Mail : |
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Factory 3 : |
Lonand, Taluka Khandala, District Satara – 415521
Maharashtra, India |
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Branch Office : |
1009, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi –
110001,India |
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|
Sales Office : |
Located At · West Bengal · Delhi ·
Maharashtra |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Surinder P. Kanwar |
|
Designation : |
Chairman and Managing Director) |
|
|
|
|
Name : |
Mr.W. R. Schilha |
|
Designation : |
Independent Director |
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|
Name : |
Mr. V. K. Pargal |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Rakesh Chopra |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. S. G. Awasthi |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sameer Kanwar |
|
Designation : |
Joint Managing Director |
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|
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|
Name : |
Dr. Ram S. Tarneja |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. N. J. Kamath |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Prashant Khattry |
|
Designation : |
Head (Legal) and Company Secretary |
|
|
|
|
Name : |
Mr. Milind Pujari |
|
Designation : |
Chief Financial Officer |
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|
AUDIT
COMMITTEE |
· Dr. Ram S. Tarneja, Chairman · Mr. V. K. Pargal · Mr. N. J. Kamath ·
Mr. Rakesh Chopra |
|
|
|
|
SHAREHOLDERS'/INVESTORS' GRIEVANCE
COMMITTEE |
·
Mr. N. J. Kamath, Chairman ·
Mr. Sameer Kanwar ·
Mr. Rakesh Chopra |
|
|
|
|
REMUNERATION
COMMITTEE |
· Mr. N. J. Kamath, Chairman · Dr. Ram S. Tarneja ·
Mr. V. K. Pargal |
|
|
|
|
FINANCE
COMMITTEE |
· Mr. Rakesh Chopra, Chairman · Mr. Surinder P. Kanwar · Mr. Sameer Kanwar ·
Mr. S.G. Awasthi |
|
REVIEW
COMMITTEE |
·
Mr. Surinder P. Kanwar ·
Mr. V. K. Pargal ·
Mr. Sameer Kanwar ·
Mr. N. V. Srinivasan |
|
|
|
|
EXECUTIVE
COMMITTEE |
· Mr. Sameer Kanwar · Mr. B. L. Pansare · Mr. B. P. Shah · Mr. Jagdeep Singh · Mr. K. K. Deshpande · Mr. Milind Pujari · Mr. Naresh Verma · Mr. P. C. Kothari ·
Mr. S. K. Mital |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2304525 |
29.48 |
|
|
1837213 |
23.50 |
|
|
4141738 |
52.98 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
4141738 |
52.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3300 |
0.04 |
|
|
2268 |
0.03 |
|
|
50 |
0.00 |
|
|
5618 |
0.07 |
|
|
|
|
|
|
389266 |
4.98 |
|
|
|
|
|
|
1820807 |
23.29 |
|
|
1267646 |
16.21 |
|
|
192758 |
2.47 |
|
|
55618 |
0.71 |
|
|
2290 |
0.03 |
|
|
133850 |
1.71 |
|
|
1000 |
0.01 |
|
|
3670477 |
46.95 |
|
Total Public shareholding (B) |
3676095 |
47.02 |
|
Total (A)+(B) |
7817833 |
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) |
7817833 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the Automotive Gears business. |
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Products : |
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GENERAL INFORMATION
|
Customers : |
· Agriking Tractors and Equipments Private Limited · Ashok Leyland Limited · AVTEC Limited · Carraro India, Italy, China · CLAAS Tractor SAS France · EATON Corporation – USA · Escorts Limited · Force Motors Limited · GE Aviation Systems LLC – USA · Godrej and Boyce Mfg. Company Limited · Hyva India Private Limited · JCB-India, UK · John Deere - India, USA, Spain, Mexico, Brazil, China · Mahindra and Mahindra Limited · Man Trucks Private Limited · New Holland Fiat India Private Limited · Paharpur Cooling Towers Limited · Rico Auto Industries Limited · Spicer India Limited · DANA India Limited · SML ISUZU Limited · Transaxle Manufacturing of America (TMA) USA · Tractors and Farm Equipment Limited · Toyota Kirloskar Auto Parts Limited · VST Tillers and Tractors · Voltas Limited · ZF China, India, USA |
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No. of Employees : |
Information declined by the management |
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Bankers : |
· State Bank of India · IDBI Bank Limited ·
Export-Import Bank of India |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
--- |
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Auditors : |
|
|
Name : |
Deloitee Haskins and Sells Chartered Accountants |
|
Address : |
12, |
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|
|
|
Enterprises over
which KMP is able to exercise significant influence |
· Cliplok Simpak (India) Private Limited (CSIPL) · Raunaq International Limited (RIL) · Vibrant Finance & Investments Private Limited (VFIPL) ·
Xlerate Driveline India Limited (XDIL) |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
1500000 |
Cumulative redeemable convertible or non convertible preference shares |
Rs.100/- each |
Rs.150.000 Millions |
|
|
TOTAL |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7817833 |
Equity Shares |
Rs.10/- each |
Rs.78.178 Millions |
|
|
|
|
|
Details of shares
held by each shareholder holding more than 5% shares:
|
Class of Shares /
Name of Shareholder |
Number of Shares
held |
% of shares held |
|
Equity shares |
|
|
|
Surinder P. Kanwar |
2289432 |
29.28% |
|
Ultra Consultants Private Limited |
766038 |
9.80% |
|
Future Consultants Private Limited |
645071 |
8.25% |
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 |
78.178 |
78.178 |
88.603 |
|
(b) Reserves & Surplus |
684.348 |
652.210 |
502.283 |
|
(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) |
762.526 |
730.388 |
590.886 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
346.483 |
260.786 |
200.766 |
|
(b) Deferred tax liabilities (Net) |
19.853 |
22.753 |
12.053 |
|
(c) Other long term liabilities |
99.423 |
84.556 |
102.690 |
|
(d) long-term provisions |
45.750 |
41.096 |
44.191 |
|
Total Non-current Liabilities (3) |
511.509 |
409.191 |
359.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
308.348 |
283.190 |
243.624 |
|
(b) Trade payables |
780.119 |
833.723 |
801.140 |
|
(c) Other current
liabilities |
268.311 |
177.987 |
219.971 |
|
(d) Short-term provisions |
30.912 |
57.993 |
38.080 |
|
Total Current Liabilities (4) |
1387.690 |
1352.893 |
1302.815 |
|
|
|
|
|
|
TOTAL |
2661.725 |
2492.472 |
2253.401 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
901.912 |
923.981 |
790.276 |
|
(ii) Intangible Assets |
5.320 |
7.017 |
5.964 |
|
(iii) Capital
work-in-progress |
253.461 |
33.265 |
52.328 |
|
(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 |
65.956 |
68.389 |
86.924 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1226.649 |
1032.652 |
935.492 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
532.203 |
589.523 |
536.698 |
|
(c) Trade receivables |
699.146 |
660.769 |
569.739 |
|
(d) Cash and cash
equivalents |
83.494 |
75.066 |
110.711 |
|
(e) Short-term loans and
advances |
93.367 |
89.403 |
78.821 |
|
(f) Other current assets |
26.866 |
45.059 |
21.940 |
|
Total Current Assets |
1435.076 |
1459.820 |
1317.909 |
|
|
|
|
|
|
TOTAL |
2661.725 |
2492.472 |
2253.401 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3926.226 |
4305.576 |
3305.057 |
|
|
|
Other Income |
27.013 |
58.815 |
49.566 |
|
|
|
TOTAL (A) |
3953.239 |
4364.391 |
3354.623 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials and components consumed |
1961.344 |
2261.336 |
1747.875 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
29.691 |
(63.192) |
(111.056) |
|
|
|
Employee benefits expense |
579.827 |
554.167 |
498.142 |
|
|
|
Other expenses |
1075.860 |
1109.759 |
898.527 |
|
|
|
TOTAL (B) |
3646.722 |
3862.070 |
3033.488 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
306.517 |
502.321 |
321.135 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
116.503 |
126.908 |
85.643 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
190.014 |
375.413 |
235.492 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
115.548 |
107.793 |
90.917 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
74.466 |
267.620 |
145.575 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
24.800 |
81.700 |
48.447 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
49.666 |
185.920 |
97.128 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
286.994 |
149.066 |
88.469 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
1.043 |
2.085 |
|
|
|
Proposed Dividend |
14.072 |
14.072 |
11.727 |
|
|
|
Tax on Distributed Profits |
2.283 |
2.452 |
2.294 |
|
|
|
Transferred to Redemption Reserve |
0.000 |
10.425 |
10.425 |
|
|
|
Transferred to General Reserve |
7.500 |
20.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
312.805 |
286.994 |
149.066 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
824.436 |
740.411 |
455.912 |
|
|
|
Tooling Development Income |
11.282 |
16.555 |
6.474 |
|
|
|
Other Earnings |
21.063 |
22.323 |
25.911 |
|
|
|
Exchange Gain |
15.387 |
26.680 |
0.000 |
|
|
TOTAL EARNINGS |
872.168 |
805.969 |
488.297 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
42.270 |
40.479 |
19.301 |
|
|
|
Stores & Spares |
2.200 |
3.728 |
7.965 |
|
|
|
Loose tools |
13.453 |
14.123 |
11.105 |
|
|
|
Capital Goods |
49.404 |
106.946 |
103.146 |
|
|
TOTAL IMPORTS |
107.327 |
165.276 |
141.517 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.35 |
23.63 |
12.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.26
|
4.26 |
2.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.90
|
6.22 |
4.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.09
|
10.88 |
6.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.37 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.86
|
0.74 |
0.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.03
|
1.08 |
1.01 |
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 |
No |
|
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 |
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 |
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 |
FINANCIAL PERFORMANCE
The Company's financial performance was affected by a drop in sales due to overall slowdown in the Indian economy and the related fall in demand from domestic customers in the automotive and construction and mining sectors in India.
Key financial
figures: FY 2012-2013
· In view of the fall in demand in the domestic markets, the Company's revenue from operations and other income (gross) declined by 8.61% to Rs.4327.200 Millions in FY 2013.
· The drop in sales volumes resulted in lower absorption of fixed costs resulting in EBIDTA margin reducing to 7.08 % in FY 2012 - 2013 from 10.61% in FY 2011 - 2012.
· Consequently, PAT was lower at Rs.49.700 Millions in FY 2012 – 2013 compared to Rs.185.900 Millions in FY 2011 - 2012.
· It should be noted that the profits for FY 2012 included a net positive impact of Rs.30.000 Millions, on account of profit on sale /transfer of leasehold rights in respect of part of Company's leasehold land. This was a one-time gain that
During FY 2013, with a view to augment long-term funds to part finance the Company's existing capital expenditure programme, BGL has raised Rs.63.300 Millions through cost-effective borrowings. The Company has also raised long term financial resources of Rs.116.600 Millions in FY 2013 to fund the resource requirement(s) for setting up a new gear manufacturing unit at Lonand, in the district of Satara, Maharashtra. The Company also repaid Rs.51.500 Millions of existing borrowings to Financial Institutions and Banks.
The Company has made necessary arrangement for raising long term funds for investments in capacity expansion and technology up gradation in FY 2013-14.
MANAGEMENT DISCUSSION
AND ANALYSIS
INTRODUCTION
Subject is primarily in the business of manufacturing automotive gears that today caters to Original Equipment Manufacturers (OEMs) and the replacement market for agricultural machinery, commercial vehicles, construction and mining equipments. It has two related businesses that are also part of the overall gears revenue but are organisationally separated to service target markets better. First, there is a growing business that develops vendors, undertakes final assembly operations and focuses on distribution of several autocomponents in the replacement market. Second, there is a furnace division that manufactures heat treatment furnaces on site primarily for the auto-component industry.
OPERATIONS
Bharat Gears has two modern manufacturing facilities one at Mumbra (near Mumbai) and second at Faridabad (near Delhi). Both the plants produce bevel as well as transmission gears while at Mumbra, BGL also manufactures differential gears. Both Mumbra and Faridabad plant of the Company continue to be certified under ISO/TS 16949 (quality) and Faridabad plant is also certified under ISO/14001and EHS - OSHAS 18001certification by BVC. Today, BGL is internationally reputed for its cutting edge technology and supplier of reliable quality products.With customer satisfaction at the foundation of its entire operation, BGL is dedicated to maintaining the Company's commitment to providing the highest quality products, the best customer service, and the safest operating conditions in the industry.
The Company offers both world famous systems of hypoid gear generation - Gleason (Face milling) and Oerlikon (Face Hobbing). The transmission gear manufacturing lines are well equipped with state-of-the-art machines like gear shaping, hobbing, shaving and gear grinding machines as well as gear testers and induction hardening machines. In differential gears, BGL offers customers both Gleason Revacycle and Gleason Coniflex systems of straight bevel generation.
In both bevel and transmission gear manufacturing, Bharat Gears has constantly worked on upgrading its technology. For bevel gears, it continues to invest in the latest dry cutting technology while for transmissions it is investing in the latest high speed hobber and shaver systems.
Even in FY2013, a difficult business year, BGL continued with its modernisation programme. It ordered for the state-of-the-art Klingelnberg CNC gear cutting machine (C 50), which is a top of the line machine using the dry cutting technology. It has also supported the production system of high speed hobbers for transmission gears with a Gleason shaving cutter sharpening machine (SRS-410).
In a significant development, in May 2012 the Company commenced work on constructing its third plant at Lonand in Satara district of Maharashtra (India). This is located close to Pune and will initially focus on producing transmission gears. Development work at this plant has progressed at a fast pace through FY2013. With all requisite clearances in place, utilities set up, and some initial machinery put in place, the plant was inaugurated in May 2013.The Company will start testing / commissioning of machines followed by trial production. The commercial Production at the plant will commence in FY2013-14. New added capacity will enhance company's ability to service all clients situated in western and southern India.
OUTLOOK
FY2014 is expected to be another difficult year for the Indian economy. However, one expects better monsoon and a pick-up in the agriculture segment. Also the utility vehicles segment is supposed to perform reasonably well with a slew of new variants. BGL will leverage its positioning in these sectors and also rely on building on its relationships and product development plans to grow exports. Overall, the focus will be on proper delivery and cost optimization. The labour union settlements are due in FY2014, which will impact costs to some extent. However, with tight operations and double digit growth in revenues, the Company is cautiously optimistic of increasing profits maintaining profitability in FY2014 but it is conscious of the fact that it will be a challenging year.
CONTINGENT
LIABILITIES
Rs. In Millions
|
Particular |
31.03.2013 |
31.03.2012 |
|
(a) Claims against the Company not acknowledged as debt |
|
|
|
1. * ESIC against which the Company's appeals are pending with the relevant appellate authorities. |
-- |
0.159 |
|
2. * In respect of Income Tax |
|
|
|
On account of disallowance of provision of leave encashment (including interest) for assessment years 2007-08, 2008-09 and 2009-10 for which the Company has preferred appeal against appropriate authority. |
|
4.700 |
|
3. * In respect of Employees |
|
|
|
(i) The Company has filed an appeal in the Bombay High Court against the order passed by Third Labour Court on issue of back wages and reinstatement of 11 employees. |
4.026 |
4.026 |
|
(ii) In respect of claim of permanency of services and back wages filed by a set of temporary workmen before the Hon'ble Industrial Tribunal, Thane |
Not ascertainable |
Not ascertainable |
|
3. Others |
|
|
|
(i) In respect of penal interest for late renewal of Employee Deposit Linked Insurance Policy for financial year 2008-09 |
0.443 |
0.443 |
|
(ii) In respect of mense profit for the premises under leave and license agreement. |
40.261 |
40.261 |
|
(b)Other money for which the Company is contingently liable |
|
|
|
In respect of Sales Invoice Finance facility |
38.877 |
147.138 |
|
*Future ultimate outflow of resources embodying economic benefits in respect of these matters is uncertain as it depends on financial outcome of judgments/decisions on the matters involved. |
|
|
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10435059 |
02/07/2013 |
100,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, NGN VAIDYA MARG, HORNIMAN CIR |
B78853611 |
|
2 |
10362792 |
26/11/2012 * |
150,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B64644388 |
|
3 |
10362796 |
06/08/2013 * |
300,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B81912693 |
|
4 |
10249382 |
11/05/2011 * |
200,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B13755400 |
|
5 |
80004795 |
16/02/2009 * |
437,100,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, ADVANCE BRANCH,, G.N. VAIDYA MARG, POST BAG NO. 10141, FORTE,, MUMBAI, MAHARASHTRA - 400023, INDIA |
A58141797 |
|
6 |
90046643 |
20/10/2004 * |
323,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, ADVANCE BRANCH,, G.N. VAIDYA MARG, POST BAG NO. 10141, FORTE,, MUMBAI, MAHARASHTRA - 400023, INDIA |
- |
|
7 |
90045704 |
09/05/2013 * |
850,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, ADVANCE BRANCH,, G.N. VAIDYA MARG, POST BAG NO. 10141, FORTE,, MUMBAI, MAHARASHTRA - 400023, INDIA |
B76781327 |
* Date of charge modification
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR
ENDED SEPTEMBER 30, 2013
Rs. In Millions
|
Sr. No. |
Particulars |
Quarter ended |
Half Year ended |
|
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
1. |
Income from
operations |
|
|
|
|
|
(a) Net sales/income from operations (net of excise duty) |
1086.900 |
938.300 |
2025.200 |
|
|
(b) Other operating income |
19.500 |
14.000 |
33.500 |
|
|
Total income from operations
(net) |
1106.400 |
952.300 |
2058.700 |
|
2. |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
539.500 |
536.800 |
1076.300 |
|
|
(b) Changes in inventories of finished goods and work-in-progress |
(14.800) |
(64.900) |
(79.700) |
|
|
(c) Employees benefits expense (Refer Note 3) |
165.400 |
157.500 |
322.900 |
|
|
(d) Power and fuel |
104.200 |
93.400 |
197.600 |
|
|
(e) Depreciation and amortisation expense |
30.700 |
29.800 |
60.500 |
|
|
(f) Other expenses |
203.800 |
195.300 |
399.100 |
|
|
Total expenses |
1028.800 |
947.900 |
1976.700 |
|
3. |
Profit from
operations before other income, finance costs and exceptional items (1-2) |
77.600 |
4.400 |
82.000 |
|
4. |
Other income (Refer Note 4) |
11.800 |
20.400 |
32.200 |
|
5. |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
89.400 |
24.800 |
114.200 |
|
6. |
Finance costs |
33.100 |
28.300 |
61.400 |
|
7. |
Profit/(loss) from ordinary
activities after finance costs but before exceptional items (5-6) |
56.300 |
(3.500) |
52.800 |
|
8. |
Exceptional items |
- |
- |
- |
|
9. |
Profit/(loss) from
ordinary activities before tax (7-8) |
56.300 |
(3.500) |
52.800 |
|
10. |
Tax expense |
19.200 |
|
19.200 |
|
11. |
Net profit/(loss)
from ordinary activities after tax (9-10) |
37.100 |
(3.500) |
33.600 |
|
12. |
Extraordinary items (net of tax expense) |
- |
|
- |
|
13. |
Net profit/(loss)
(11-12) |
37.100 |
(3.500) |
33.600 |
|
14. |
Paid up equity share capital |
78.200 |
78.200 |
78.200 |
|
|
(Face value Rs.10/- per share) |
|
|
|
|
15. |
Reserves excluding revaluation reserves as per balance sheet of previous accounting year |
|
|
|
|
16.i |
Earnings per share (before extraordinary items) [of ? 10 /- each (* not annualised)] Basic and diluted (?) |
* 4.74 |
* (0.45) |
* 4.30 |
|
16.ii |
Earnings per share (after extraordinary items) [of ? 10 /- each (* not annualised)] Basic and diluted (?) |
* 4.74 |
* (0.45) |
* 4.30 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public shareholding |
|
|
|
|
|
- Number of shares |
3,676,095 |
3,676,330 |
3,676,095 |
|
|
- Percentage of shareholding |
47.02% |
47.02% |
47.02% |
|
2. |
Promoters and
promoter group shareholding |
|
|
|
|
|
(a)
Pledged/encumbered |
|
|
|
|
|
- Number of shares |
- |
- |
- |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
- |
- |
- |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
- |
- |
- |
|
|
(b) Non-encumbered |
|
|
|
|
|
- Number of shares |
4,141,738 |
4,141,503 |
4,141,738 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
52.98% |
52.98% |
52.98% |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
Nil |
|
|
|
|
Disposed of during the quarter |
Nil |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Notes:
1. The above financial results as reviewed and recommended by the Audit Committee have been approved by the Board of Directors at its meeting held on October 25, 2013.
2. The auditors of the Company have carried out limited review of the Unaudited Financial Results for the quarter and half year ended September 30, 2013.
3. Employees benefits expense includes provision made on the basis of shareholders approval for remuneration payable to the Joint Managing Director, in excess of the limit specified under Section 198 read with Section 309 and Schedule XIII to the Companies Act, 1956 which is subject to the approval of Central Government for which an application has been made by the Company:
Rs. In Millions
|
Sr. No. |
Particulars |
Quarter ended |
Half Year ended |
|
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
1 |
Joint Managing Director's Remuneration |
2.100 |
0.700 |
2.800 |
4. Other income includes:
Rs. In Millions
|
Sr. No. |
Particulars |
Quarter ended |
Half Year ended |
|
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
1 |
Net exchange gain/(loss) |
11.500 |
15.500 |
27.000 |
5. Statement of Assets and Liabilities:
Rs. In Millions
|
|
Particulars |
As at 30.09.2013 |
|
A |
EQUITY AND
LIABILITIES |
|
|
1. |
Shareholders' funds |
|
|
|
(a) Share capital |
782 |
|
|
(b) Reserves and surplus |
7,173 |
|
|
Sub-total -
Shareholders' funds |
|
|
|
|
7,955 |
|
2. |
Non-current
liabilities |
|
|
|
(a) Long-term borrowings |
5,722 |
|
|
(b) Deferred tax liabilities (net) |
196 |
|
|
(c) Other long-term liabilities |
1,048 |
|
|
(d) Long-term provisions |
552 |
|
|
Sub-total -
Non-current liabilities |
|
|
|
|
7,518 |
|
3. |
Current liabilities |
|
|
|
(a) Short-term borrowings |
2,940 |
|
|
(b) Trade payables |
8,629 |
|
|
(c) Other current liabilities |
2,701 |
|
|
(d) Short-term provisions |
167 |
|
|
Sub-total - Current
liabilities |
|
|
|
|
14,437 |
|
|
TOTAL - EQUITY AND
LIABILITIES |
29,910 |
|
B |
ASSETS |
|
|
1. |
Non-current assets |
|
|
|
(a) Fixed assets |
13,870 |
|
|
(b) Long-term loans and advances |
676 |
|
|
|
|
|
|
Sub-total -
Non-current assets |
14,546 |
|
2. |
Current assets |
|
|
|
(a) Inventories |
6,205 |
|
|
(b) Trade receivables |
6,853 |
|
|
(c) Cash and cash equivalents |
762 |
|
|
(d) Short-term loans and advances |
1,252 |
|
|
(e) Other current assets |
292 |
|
|
Sub-total - Current
assets |
|
|
|
|
15,364 |
|
|
TOTAL - ASSETS |
29,910 |
6. The Company is primarily engaged in the Automotive Gears business. Risks and rewards involved in sales to overseas customers are not significantly different from those attributable to domestic market. As such there is no other separate reportable segment as defined by Accounting Standard - 17 “Segment Reporting."
7. Previous year/period's figures have been regrouped/reclassified wherever necessary.
FIXED ASSETS
- Land Freehold
- Land Leasehold
- Building and Roads
- Plant and Machinery
- Electrical Installation
- Furniture and Fixture
- Computer
- 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.61.46 |
|
|
1 |
Rs.98.99 |
|
Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
NTH |
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 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
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.