MIRA INFORM REPORT
|
Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
MRF LIMITED |
|
|
|
|
Registered
Office : |
New No. 114, (Old
No. 124), Greams Road, Chennai – 600006, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.09.2013 |
|
|
|
|
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 |
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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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|
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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. |
|
|
|
|
No. of Employees
: |
15343 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
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 146000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
Comments : |
Subject is an India’s largest manufacturer of automotive tyres and
tubes. It is a well-established and reputed company having excellent track
record. The rating reflects MRF’s strong market leadership position in the domestic
tyre industry characterized by presence across all the user segments with
significant market aided by wide distribution network, strong brand image
with diverse product offering. Further rating also reflects strong liquidity
position and decent profitability levels. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts
from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central
Bureau of Investigation will look into allegations that over $80 million was
paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to
find a solution for problems with state-owned Air India’s 787 Dreamliners. The
aircraft has experienced a series of malfunctions since its debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk |
|
Date |
09.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Very strong 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.
INFORMATION DENIED BY
Management Non-Cooperative (Tel No.: 91-44-28292777)
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 : |
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|
Website : |
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Factory 1: |
Tiruvottiyur, Chennai, |
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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, Andhra Pradesh, India |
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Factory 7: |
Naranamangalam Village and Post, Kunnam Taluk, Perambalur District, (Near Trichy) Tamilnadu, India |
DIRECTORS
As on 30.09.2013
|
Name : |
Mr. K.M. Mammen |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr.
Arun Mammen |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr.
K.M. Philip |
|
Designation : |
Whole-time
Director |
|
|
|
|
Name : |
Mr.
Rahul Mammen Mappillai |
|
Designation : |
Whole-time
Director |
|
|
|
|
Name : |
Dr.
K.C. Mammen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Ashok Jacob |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
V. Sridhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Vijay R. Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
N.
Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Ranjit I. Jesudasen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
S.S. Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr.
Salim Joseph Thomas |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Jacob Kurian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
M. Meyyappan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Mannath |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Kurian and
Kurian |
|
Designation : |
Legal Advisors |
SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
562175 |
13.26 |
|
|
575016 |
13.56 |
|
|
1137191 |
26.81 |
|
|
|
|
|
|
21625 |
0.51 |
|
|
21625 |
0.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
1158816 |
27.32 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
297392 |
7.01 |
|
|
4533 |
0.11 |
|
|
161288 |
3.80 |
|
|
236129 |
5.57 |
|
|
699342 |
16.49 |
|
|
|
|
|
|
1084229 |
25.56 |
|
|
|
|
|
|
895611 |
21.12 |
|
|
403145 |
9.51 |
|
|
2382985 |
56.19 |
|
Total Public shareholding (B) |
3082327 |
72.68 |
|
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 |
100.00 |
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 : |
15343 (Approximately) |
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Bankers : |
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Facilities : |
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|
|
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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 30.09.2013
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 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2013 |
30.03.2012 |
30.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
42.400 |
42.400 |
42.400 |
|
(b) Reserves & Surplus |
36,409.000 |
28,535.600 |
22,935.300 |
|
(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) |
36,451.400 |
28,578.000 |
22,977.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
9,524.600 |
11,027.100 |
9,614.900 |
|
(b) Deferred tax liabilities (Net) |
2,223.100 |
1,867.200 |
1,418.000 |
|
(c) Other long term
liabilities |
10,432.300 |
9,080.300 |
7,757.500 |
|
(d) long-term
provisions |
752.400 |
872.900 |
496.300 |
|
Total Non-current
Liabilities (3) |
22,932.400 |
22,847.500 |
19,286.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
4,762.300 |
5,287.200 |
4,100.700 |
|
(b) Trade
payables |
10,214.300 |
9,394.300 |
10,158.300 |
|
(c) Other
current liabilities |
5,522.300 |
4,543.300 |
5,267.900 |
|
(d) Short-term
provisions |
2,690.700 |
1,472.400 |
1,567.700 |
|
Total Current
Liabilities (4) |
23,189.600 |
20,697.200 |
21,094.600 |
|
|
|
|
|
|
TOTAL |
82,573.400 |
72,122.700 |
63,359.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
29,641.500 |
29,078.100 |
19,675.700 |
|
(ii)
Intangible Assets |
53.900 |
59.900 |
38.100 |
|
(iii)
Capital work-in-progress |
3,591.200 |
4,146.500 |
10,422.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
846.800 |
715.400 |
726.900 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1,381.200 |
572.300 |
1,464.300 |
|
(e) Other
Non-current assets |
348.900 |
304.600 |
237.400 |
|
Total Non-Current
Assets |
35,863.500 |
34,876.800 |
32,564.900 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
8,214.800 |
3,531.700 |
0.000 |
|
(b)
Inventories |
17,952.900 |
16,455.900 |
15,260.200 |
|
(c) Trade
receivables |
15,561.400 |
14,540.900 |
13,088.600 |
|
(d) Cash
and cash equivalents |
3,308.100 |
611.000 |
559.800 |
|
(e)
Short-term loans and advances |
1,451.400 |
2,034.200 |
1,820.300 |
|
(f) Other
current assets |
221.300 |
72.200 |
65.200 |
|
Total
Current Assets |
46,709.900 |
37,245.900 |
30,794.100 |
|
|
|
|
|
|
TOTAL |
82,573.400 |
72,122.700 |
63,359.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
121,311.600 |
118701.800 |
97353.400 |
|
|
|
Export Incentives |
0.000 |
0.000 |
78.300 |
|
|
|
Other Income |
290.300 |
320.100 |
253.100 |
|
|
|
TOTAL (A) |
121,601.900 |
119021.900 |
97684.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
78,008.300 |
83442.700 |
73791.600 |
|
|
|
Purchases of Stock-in-Trade |
1,251.300 |
264.800 |
330.200 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
-267.300 |
(178.300) |
(3051.100) |
|
|
|
Employees benefits expense |
6,034.900 |
5,136.900 |
4,467.500 |
|
|
|
Other expenses |
18,618.000 |
17,425.700 |
13,799.400 |
|
|
|
Exceptional Item (Excess Depreciation reversal in respect of earlier year) |
0.000 |
0.000 |
(4042.300) |
|
|
|
TOTAL (B) |
103,645.200 |
106091.800 |
85295.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17,956.700 |
12930.100 |
12389.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1,959.400 |
1587.800 |
976.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15,997.300 |
11342.300 |
11412.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3,729.300 |
3011.100 |
2476.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
12,268.000 |
8331.200 |
8936.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4,245.900 |
2607.600 |
2742.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8,022.100 |
5723.600 |
6194.200 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
25.400 |
25.400 |
25.400 |
|
|
|
Final Proposed Dividend |
101.800 |
80.600 |
80.600 |
|
|
|
Tax Thereon |
21.500 |
17.300 |
17.300 |
|
|
|
Debenture Redemption Reserve |
285.200 |
288.000 |
179.400 |
|
|
BALANCE CARRIED
TO THE B/S |
7588.200 |
5312.300 |
5891.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
12237.700 |
12576.200 |
8233.000 |
|
|
|
Freight & Insurance |
81.400 |
67.900 |
0.000 |
|
|
|
Interest |
0.100 |
3.800 |
0.000 |
|
|
|
Others |
10.200 |
9.00 |
3.800 |
|
|
TOTAL EARNINGS |
12329.400 |
12656.900 |
8236.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30377.000 |
31175.700 |
23076.600 |
|
|
|
Components & Spare Parts |
417.900 |
412.400 |
381.700 |
|
|
|
Capital Goods |
868.800 |
1448.200 |
3390.100 |
|
|
TOTAL IMPORTS |
31663.700 |
33036.300 |
26848.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1891.49 |
1349.52 |
1460.50 |
|
QUARTERLY RESULTS
|
Particulars |
|
|
31.12.2013 (Unaudited) |
|
|
|
|
1st Quarter |
|
Net Sales |
|
|
3,2005.700 |
|
Total Expenditure |
|
|
2,7817.100 |
|
PBIDT (Excl OI) |
|
|
4188.600 |
|
Other Income |
|
|
99.400 |
|
Operating Profit |
|
|
4288.000 |
|
Interest |
|
|
585.700 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
3702.300 |
|
Depreciation |
|
|
993.400 |
|
Profit Before Tax |
|
|
2708.900 |
|
Tax |
|
|
910.000 |
|
Provisions and
contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
1798.900 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
1798.900 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 |
30.03.2012 |
30.03.2011 |
|
PAT / Total Income |
(%) |
6.60 |
4.81 |
6.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.11 |
7.02 |
9.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.70 |
12.39 |
17.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.34 |
0.29 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.39 |
0.57 |
0.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.01 |
1.80 |
1.46 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
42.400 |
42.400 |
42.400 |
|
Reserves & Surplus |
22935.300 |
28535.600 |
36409.000 |
|
Net
worth |
22977.700 |
28578.000 |
36451.400 |
|
|
|
|
|
|
long-term borrowings |
9614.900 |
11027.100 |
9524.600 |
|
Short term borrowings |
4100.700 |
5287.200 |
4762.300 |
|
Total
borrowings |
13715.600 |
16314.300 |
14286.900 |
|
Debt/Equity
ratio |
0.597 |
0.571 |
0.392 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
97,353.400 |
118,701.800 |
121,311.600 |
|
|
|
21.929 |
2.199 |
v
NET PROFIT MARGIN
|
Net
Profit Margin |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
97,353.400 |
118,701.800 |
121,311.600 |
|
Profit |
6,194.200 |
5,723.600 |
8,022.100 |
|
|
6.36% |
4.82% |
6.61% |
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 |
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 : |
Jan 20 2014 |
UNSECURED LOAN:
|
Particulars |
30.09.2013 Rs.
In Millions |
30.09.2012 Rs.
In Millions |
|
Long Term Borrowings |
|
|
|
Term Loan from a Bank |
|
|
|
Buyers Line of Credit |
00000 |
833.800 |
|
Fixed Deposits |
314.900 |
171.500 |
|
Sales Tax Deferral Scheme |
618.400 |
705.100 |
|
Others |
|
|
|
Deferred Payment Credit |
195.100 |
270.500 |
|
Short Term Borrowings |
|
|
|
Buyers line of credit |
559.300 |
1106.300 |
|
Total |
1687.700 |
3087.200 |
WORKING OF THE COMPANY
Financial Results:
During the year,
the Company’s total income increased by around 3% to Rs.134820.000 Millions
from Rs.130940.000 Millions in the previous year.
There was an
increase of 4% in total tyre production in almost all segments. During the
year, the raw material prices were stable and this contributed to the margins
of the Company despite depreciation of rupee. This apart, the Company could
achieve improved results, due to improves operating efficiencies and cost
reduction measures which the Company has undertaken over a period of time.
Two interim
dividends of Rs.3 each per share (30% each) for the year ended 30th September,
2013 were declared by the Board of Directors on 25-07-2013 and on 24-10-2013.
The Board of Directors is now pleased to recommend a final divided of Rs.24 per
share (240%) on the paid 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.30 per share (300%). The
total amount of dividends aggregates to Rs.127.200 Millions.
The director
recommend that after making provision for taxation debenture redemption reserve
and proposed dividend, an amount of Rs.7588.200 Millions be transferred to
General Reserve. With this, the Company’s Reserves and Surplus stands at
Rs.36409.000 Millions.
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 estimated to be around Rs.440000.0000
Millions for the period for 2012-2013. During the period, exports accounted for
Rs.48000.000 Millions. 1245 lakh tyres were manufactured by the tyre
companies. Ten top tyre Companies’ production constitute over 90% of the total
tyre production. Around 65% of the total tyre industry tonnage is sold in the
replacement market and OE market comprises about 24% of the tonnage, the
balance being exports.
Commercial
tyres (which include HCV, LCV & SCV) contribute to around 65% of the total tyre
industry tonnage wherein 78% of the production tonnage is sold in the
replacement market and OE market comprises about 14% of the tonnage and exports
8%. For the passenger car group car group around 47% of tyres manufactured are
sold to OEMs and around 49% caters to the replacement segment.
In the
truck tyre sector, the commercial segments continue to be primarily dominated
by cross-ply due to very poor road conditions, loading patterns and high
initial cost of radials. The radialisation pattern of various product and heavy
commercial vehicle - 25%. Radialisation in commercial vehicles segment in
expected to grow by 3% to 4% during 2013-2014
During
2012-13, in the vehicle manufacturing sector, there has been a dip of 30% in
the production of heavy commercial vehicles and an 11% increase in light
commercial vehicles. There was a 5% decline in the small commercial vehicle
segment. The passenger car group production also saw a decrease of 4%. Whereas
in the utility group, there has been an increase of 21% over the last year. In
two wheelers, scooters witnessed an 11% increase whilst in motorcycle segment,
the production remained flat. In the farm segment, there was an 8% increase in
production over 2011-2012
The
tyre industry provides direct and indirect employment to one million people
comprising of dealers, retreaders and truck operators. The truck operations are
controlled by nearly 2.6 million small operators.
There
are around 5000 tyre dealers spread throughout the country, mostly selling
multibrand across their counters.
SEGMENT WISE AND PRODUCT WISE PERFORMANCE
During
the period 2012-13, MRF achieved a sales turnover of Rs.134450.000 Millions. This is an increase of around 3% over the previous
year. There was an increase of 4% in total tyre production in almost all
segments. In the heavy commercial vehicle group, the largest segment, the
increase was 5% over the last year and in light commercial vehicle group, the
increase was 5%. In the motorcycle and scooter segments there was no visible
increase over the previous year. The passenger car group registered an increase
of 6%.
OUTLOOK
The
automobile industry is going through a recession and it is unlikely to turn
favourable in the immediate future. This would have a bearing on tyre demand.
The after-market demand continues to prop up the tyre industry demand. The
capacity additions in the tyre industry would further fuel competition and this
could put pressure on margins especially in the truck radial segment.
PERFORMANCE
OF THE COMPANY
The
sales turnover of the Company during the year increased by around 3% from
Rs.130540.000 Millions in 2011-12 to Rs.134450.000
Millions in 2012-13. Earnings before depreciation and
interest (EBIDTA) amounted to Rs.17960.000
Millions against Rs.12930.000 Millions in the
previous year. After providing for depreciation and interest, the profit before
tax for the year ended 30th September 2013, Rs.12270.000 Millions as compared to Rs.8330.000 Millions in the previous year. After making provision for
income-tax, the net profit for the year stood at Rs.8020.000 Millions as compared to Rs.5720.000 Millions in the previous year.
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND HALF YEAR ENDED 31ST DECEMBER 2013
(Rs. In Millions)
|
Particulars |
|
Quarter Ended ( Unaudited) |
|
|
|
|
|
31.12.2013 |
|
Income from Operations |
|
|
|
|
Gross Sales/Income from Operations |
|
|
35407.700 |
|
Less: Excise duty |
|
|
3436.500 |
|
Net Sales/Income from Operations |
|
|
38844.200 |
|
Other Operating Income |
|
|
34.500 |
|
Total income from operations ( net) |
|
|
32005.700 |
|
Expenses |
|
|
|
|
a) Cost of materials consumed |
|
|
20862.200 |
|
b) Purchases of stock-in-trade |
|
|
401.400 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
|
|
(404.400) |
|
d) Employee benefits expense |
|
|
1753.100 |
|
e) Depreciation and amortisation expense |
|
|
993.400 |
|
f) Other Expenses |
|
|
5204.800 |
|
Total Expenses |
|
|
28810.500 |
|
Profit from Operations before Other Income, finance
costs and exceptional items |
|
|
3195.200 |
|
Other Income |
|
|
99.400 |
|
Profit from Ordinary activities before finance costs
and exceptional items |
|
|
3294.600 |
|
Finance costs |
|
|
585.700 |
|
Profit from Ordinary activities after finance costs
but before exceptional items |
|
|
2708.900 |
|
Exceptional Items |
|
|
0.000 |
|
Profit from Ordinary
activities before tax |
|
|
2708.900 |
|
Tax Expense |
|
|
910.000 |
|
Net Profit from ordinary activities after tax |
|
|
1798.900 |
|
Extraordinary items |
|
|
0.000 |
|
Net Profit for the period |
|
|
1798.900 |
|
Paid-up Equity Share Capital (Face value of Rs.10/-
each) |
|
|
42.400 |
|
Paid-up Debt Capital of the Company * |
|
|
7000.000 |
|
Reserve excluding Debenture Redemption Reserves as
per balance sheet of previous accounting year |
|
|
0.000 |
|
Debenture Redemption Reserve(Cumulative) |
|
|
809.300 |
|
Earnings Per Share (Face value Rs.10/- each) |
|
|
|
|
Basic and diluted EPS (Rs. Per Share) |
|
|
424.17 |
|
|
|
|
|
|
A. Particulars of
shareholding |
|
|
|
|
1. Public
Shareholding |
|
|
|
|
- Number of shares |
|
|
3082327 |
|
- Percentage of
shareholding |
|
|
72.68% |
|
2. Promoters and
Promoters group Shareholding- |
|
|
|
|
a) Pledged
/Encumbered |
|
|
|
|
Number of shares |
|
|
6550 |
|
Percentage of shares
(as a % of total shareholding of the promoter and promoter group) |
|
|
0.57% |
|
Percentage of
shares (as a % of total share capital of the company) |
|
|
0.15% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
|
|
1152265 |
|
Percentage of
shares (as a % of total shareholding of the promoter and promoter group) |
|
|
99.43% |
|
Percentage of
shares (as a % of total share capital of the company) |
|
|
27.14% |
|
B.
Investor Complaints |
Quarter Ended 31.12.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unreserved at the end of the quarter |
Nil |
Note:
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 06th Feb, 2014.
2)
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.
3)
The
Company is dealing mainly in rubber products and has no other reportable
segment.
* Paid up Debt
Capital represents Secured Redeemable Non-Convertible Debentures.
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 Limited |
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 Floo, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B20845285 |
|
4 |
10030186 |
08/12/2006 |
610,000,000.00 |
Infrastructure Development Finance Company Limited |
ITC Centre, 3rd Floor 760, Anna Salai, Chennai - 600 002, Tamil Nadu, India |
A08378762 |
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.60.32 |
|
UK Pound |
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
80 |
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.