MIRA INFORM REPORT
|
Report Date : |
10.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNDARAM-CLAYTON LIMITED |
|
|
|
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Registered
Office : |
Jayalakshmi Estates, No. 29 (Old 8) Haddows Road, Chennai - 600006, Tamilnadu |
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
24.05.1962 |
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Com. Reg. No.: |
18-004792 |
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Capital
Investment / Paid-up Capital : |
Rs.94.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L35999TN1962PLC004792 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00554B |
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|
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PAN No.: [Permanent Account No.] |
AAACS4920J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacture and sale of non ferrous gravity and pressure die castings. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 11680000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of “T.V. SUNDRAM IYENGAR AND SONS LIMITED”. It
is a well-established company having fine track record. The rating reflects healthy financial risk profile marked by diverse
customer base, across automobile sub-segments and geographies and adequate
operating efficiencies. 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 |
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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 |
CRISIL |
|
Rating |
A+ (Long Term Rating) |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
December 06, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1 (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
December 06, 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
Management Non Co-Operative (91-44-28272233)
LOCATIONS
|
Registered Office : |
Jayalakshmi Estates, No. 29 (Old 8) Haddows Road, Chennai
- 600006, Tamilnadu, India |
|
Tel. No.: |
91-44-28272233 |
|
Fax No.: |
91-44-28257121 |
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E-Mail : |
scl@scl.co.in,
vm.murali@scl.co.in |
|
Website : |
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|
Area : |
4500 sq. ft. |
|
Location : |
Owned |
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Factory 1 : |
Padi Chennai - 600050, Tamilnadu, India |
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Tel. No.: |
91-44-26258212 |
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Fax No.: |
91-44-26257177 |
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Factory 2 : |
Mahindra World City Plot No. AA8, Central Avenue, Auto Ancilliary SEZ, Kancheepuram - 603 002, Tamilnadu, India |
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Tel. No.: |
91-44-27460500 |
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Fax No.: |
91-44-27460520 |
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Factory 3 : |
Oragadam Plot No.B-14, SIPCOT Industrial Growth Centre, Sriperumbudur Taluk, Kancheepuram District - 602105, Tamilnadu, India |
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Tel. No.: |
91-44-67103300 |
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Factory 4 : |
Hosur Hosur - Thally Road, Belagondapalli, Hosur - 635114, Tamilnadu, India |
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Tel. No.: |
91-4347-233445 |
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Fax No.: |
91-4347-233014 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Venu Srinivasan |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
M. S. Degree in Management |
|
Date of Birth/Age : |
11.12.1952 |
|
Date of Appointment: |
23.05.1979 |
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|
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|
Name : |
Mr. Krishna Mahesh |
|
Designation : |
Director |
|
Address: |
New No. 81, Old No. 39, 1st |
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Date of Birth/ Age: |
11.10.1943 |
|
Date of Appointment: |
28.07.1975 |
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|
|
|
Name : |
Mr. Gopal Srinivasan |
|
Designation : |
Director |
|
Address: |
“West Side House”, |
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Date of Birth/ Age: |
04.08.1958 |
|
Date of Appointment: |
29.11.1985 |
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Qualification : |
M. B. A. |
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|
|
|
Name : |
Mr. Tirumala Kumara
Balaji |
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Designation : |
Director |
|
Address: |
No. 34, |
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Date of Birth/ Age: |
12.07.1948 |
|
Date of Appointment: |
28.11.1984 |
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|
|
|
Name : |
Mr. Lakshmi Venu |
|
Designation : |
Director Strategy |
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Address: |
“West Side House”, No. 3, |
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Date of Birth/ Age: |
16.04.1983 |
|
Date of Appointment: |
22.09.2010 |
|
|
|
|
Name : |
Vice Admiral P J Jacob (Retd.) |
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Designation : |
Director |
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|
|
Name : |
Mr. Suresh Kumar Sharma |
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Designation : |
Additional
Director |
|
Address: |
No. 328, |
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Date of Birth/Age : |
31.012.1965 |
|
Date of Appointment: |
15.07.2009 |
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|
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|
Name : |
Mr. Subramaniam Santhanakrishnan |
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Designation : |
Director |
|
Address: |
Flat No. G5, Block
2, Prime Terrace, No. 150, |
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Date of Birth/Age : |
08.11.1944 |
|
Qualification : |
Post Graduate in M. Sc. |
|
Date of Appointment: |
15.07.2009 |
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|
Name : |
Mr. Venkataraman Subramanian |
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Designation : |
Director |
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Address: |
M -104, Ground
Floor, Greater Kailsh Part II, |
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Date of Birth/Age : |
17.06.1948 |
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Qualification : |
B.Com |
|
Date of Appointment: |
15.07.2009 |
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|
Name : |
Mr. Sudarshan Venu |
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Designation : |
Director |
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|
Name : |
R Vijayaraghavan |
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Designation : |
Director |
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|
Name : |
Kamlesh Gandhi |
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Designation : |
Director |
KEY EXECUTIVES
|
Audit Committee : |
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Investors'
Grievance Committee : |
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|
Name : |
H Lakshmanan |
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Designation : |
Executive Director |
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|
Name : |
C N Prasad |
|
Designation : |
Group President & Chief Executive Officer - Automotive Products Division |
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|
Name : |
M Muthuraj |
|
Designation : |
President - Die Casting Division |
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|
Name : |
V N Venkatanathan |
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Designation : |
Executive Vice President – Finance |
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Name : |
R Raja Prakash |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
15174060 |
75.00 |
|
|
15174060 |
75.00 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
15174060 |
75.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2049245 |
10.13 |
|
|
8714 |
0.04 |
|
|
551947 |
2.73 |
|
|
5813 |
0.03 |
|
|
2615719 |
12.93 |
|
|
|
|
|
|
278337 |
1.38 |
|
|
|
|
|
|
1765165 |
8.72 |
|
|
366364 |
1.81 |
|
|
32440 |
0.16 |
|
|
26244 |
0.13 |
|
|
6196 |
0.03 |
|
|
2442306 |
12.07 |
|
Total Public shareholding
(B) |
5058025 |
25.00 |
|
Total (A)+(B) |
20232085 |
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) |
20232085 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of non ferrous gravity and pressure
die castings. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Notes: Details of securities created (i) Rupee Term Loans: Secured by first and exclusive charge on specific plant and equipment situated at the Company’s factories. (ii) Buyer's credit Secured by exclusive charge on specific plant and equipment situated at the Company’s factories. (iii) Soft loan is repayable in 5 yearly instalments " from the start of commercial sale of the product produced in the commercial plant, or a new producing plant installed on the basis of result of the Technology Development and Demonstration Programme (TDDP) project, whichever is earlier ". Amount payable in each instalment
First charge by way of hypothecation of current assets viz., stocks of raw materials, semi finished and finished goods , stores and spares not relating to plant and equipment, bills receivable, book debts and all other movables in all plants. |
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|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
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|
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|
Cost Auditor : |
|
|
Name : |
A.N. Raman Cost Accountant |
|
Address : |
Chennai, Tamilnadu, India |
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|
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Holding Company : |
T V Sundram Iyengar and Sons Limited, Madurai |
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Subsidiary
Companies : |
|
|
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|
Fellow Subsidiaries
: |
Indian Companies
Overseas Company
|
|
|
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|
Associate Companies
: |
|
|
|
|
|
Enterprise over
which KMP and their relatives have significant influence : |
Harita-NTI Limited, Chennai |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.5/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18967584 |
Equity Shares |
Rs.5/- each |
Rs.94.800 Millions |
|
|
|
|
|
1. Reconciliation of
equity shares outstanding at the beginning and at the end of 31st March 2013
|
|
Number |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
18967584 |
94.800 |
|
Shares Issued during the year |
- |
- |
|
Reduction pursuant to composite scheme of arrangement sanctioned by the Honourable High Court of Judicature at Madras (vide its order dated 03-08-2012) |
- |
- |
|
Shares outstanding at the end of the year |
18967584 |
94.800 |
2. i) Rights and preferences attached to equity share:
Every shareholder is entitled to such rights as to attend the meeting of the shareholders, to receive dividends distributed and also has a right in the residual interest of the assets of the Company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act 1956.
ii) There are no restrictions attached to equity shares.
3. Details of shares
held by holding/ultimate holding/subsidiaries/associates of holding company at
the end of 31st March 2013
|
Name of Shareholder |
Relationship |
Class of share |
As at 31.03.2013 |
|
|
|
|
|
No. of shares held |
% of holding |
|
T V Sundram Iyengar and Sons Limited - Madurai |
Holding company |
Equity |
3807330 |
20.07 |
|
Sundaram Industries Limited - Madurai |
Fellow Subsidiary |
Equity |
6062522 |
31.96 |
|
Southern Roadways Limited - Madurai |
Fellow Subsidiary |
Equity |
3031127 |
15.98 |
4. Details of shareholders
holding more than five percent at the end of 31st March 2013
|
Name of Shareholder |
Class of Share |
As at 31.03.2013 |
|
|
|
|
No. of shares held |
% of holding |
|
Sundaram Finance Limited – Chennai |
Equity |
2273085 |
11.98 |
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 |
94.800 |
94.800 |
189.676 |
|
(b) Reserves & Surplus |
2825.800 |
2730.100 |
2413.293 |
|
(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) |
2920.600 |
2824.900 |
2602.969 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1299.200 |
1091.600 |
1065.616 |
|
(b) Deferred tax liabilities
(Net) |
168.900 |
200.100 |
217.317 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
137.700 |
134.600 |
247.142 |
|
Total
Non-current Liabilities (3) |
1605.800 |
1426.300 |
1530.075 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2575.800 |
2185.600 |
1978.944 |
|
(b) Trade payables |
1074.100 |
1016.500 |
914.245 |
|
(c) Other current liabilities |
687.700 |
1309.200 |
827.307 |
|
(d) Short-term provisions |
276.100 |
432.000 |
160.923 |
|
Total
Current Liabilities (4) |
4613.700 |
4943.300 |
3881.419 |
|
|
|
|
|
|
TOTAL |
9140.100 |
9194.500 |
8014.463 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3962.800 |
3095.300 |
3329.556 |
|
(ii) Intangible Assets |
2.600 |
7.900 |
3.403 |
|
(iii) Capital work-in-progress |
122.600 |
846.600 |
328.556 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
562.100 |
516.300 |
628.407 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
233.800 |
226.800 |
186.709 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
4.431 |
|
Total
Non-Current Assets |
4883.900 |
4692.900 |
4481.062 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
64.300 |
55.364 |
|
(b) Inventories |
2005.500 |
1917.000 |
1660.164 |
|
(c) Trade receivables |
1607.800 |
1585.300 |
1196.307 |
|
(d) Cash and cash equivalents |
21.400 |
68.100 |
21.472 |
|
(e) Short-term loans and
advances |
592.000 |
828.300 |
554.869 |
|
(f) Other current assets |
29.500 |
38.600 |
45.225 |
|
Total
Current Assets |
4256.200 |
4501.600 |
3533.401 |
|
|
|
|
|
|
TOTAL |
9140.100 |
9194.500 |
8014.463 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
10185.600 |
10170.000 |
8056.511 |
|
|
Other Income |
381.200 |
342.300 |
222.424 |
|
|
TOTAL
(A) |
10566.800 |
10512.300 |
8278.935 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
5250.700 |
5492.700 |
4498.444 |
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
12.740 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(71.500) |
(131.500) |
(327.042) |
|
|
Employees benefits expense |
1332.300 |
1194.300 |
962.999 |
|
|
Other expenses |
2776.600 |
2543.400 |
2054.012 |
|
|
Exceptional Item |
0.000 |
(253.400) |
0.000 |
|
|
TOTAL
(B) |
9288.100 |
8845.500 |
7201.153 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION
(C) |
1278.700 |
1666.800 |
1077.782 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES
(D) |
443.200 |
384.200 |
217.414 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
835.500 |
1282.600 |
860.368 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
512.500 |
473.400 |
408.309 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
323.000 |
809.200 |
452.059 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
(31.200) |
86.300 |
79.475 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
354.200 |
722.900 |
372.584 |
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
631.600 |
268.400 |
148.239 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
First interim dividend paid |
170.700 |
0.000 |
94.838 |
|
|
Second interim dividend payable |
94.800 |
0.000 |
123.289 |
|
|
Interim dividend payable |
0.000 |
218.100 |
0.000 |
|
|
Dividend tax paid |
0.000 |
0.000 |
0.375 |
|
|
Dividend tax payable |
0.000 |
35.400 |
3.778 |
|
|
Tax relating to earlier years |
0.000 |
33.900 |
(7.068) |
|
|
Transfer to general reserve |
35.400 |
72.300 |
37.259 |
|
|
BALANCE
CARRIED TO THE B/S |
684.900 |
631.600 |
268.352 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
4568.800 |
4132.700 |
2754.182 |
|
|
Freight recovery |
198.400 |
362.800 |
261.792 |
|
|
Insurance recovery |
0.400 |
0.400 |
0.817 |
|
|
TOTAL
EARNINGS |
4767.600 |
4495.900 |
3016.791 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
3681.100 |
3749.600 |
2514.453 |
|
|
Components and Stores parts |
137.300 |
194.000 |
118.328 |
|
|
Capital Goods |
255.200 |
197.200 |
417.948 |
|
|
Trading Goods |
0.000 |
3.000 |
12.740 |
|
|
TOTAL
IMPORTS |
4073.600 |
4143.800 |
3063.469 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
18.67 |
30.13 |
9.82 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.35 |
6.88 |
4.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.17 |
7.96 |
5.61 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.82 |
10.33 |
6.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.28 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.33 |
1.16 |
1.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92 |
0.91 |
0.91 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
189.676 |
94.800 |
94.800 |
|
Reserves & Surplus |
2413.293 |
2730.100 |
2825.800 |
|
Net
worth |
2602.969 |
2824.900 |
2920.600 |
|
|
|
|
|
|
long-term borrowings |
1065.616 |
1091.600 |
1299.200 |
|
Short term borrowings |
1978.944 |
2185.600 |
2575.800 |
|
Total
borrowings |
3044.560 |
3277.200 |
3875.000 |
|
Debt/Equity
ratio |
1.170 |
1.160 |
1.327 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
8056.511 |
10170.000 |
10185.600 |
|
|
|
26.233 |
0.153 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
8056.511 |
10170.000 |
10185.600 |
|
Profit |
372.584 |
722.900 |
354.200 |
|
|
4.62% |
7.11% |
3.48% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
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 |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION
DETAILS |
|
|
CHENNAI COURT CASE STATUS INFORMATION SYSTEM |
|
|
Case Status: |
Pending |
|
Status Of: |
WRIT APPEAL |
|
Case No.: |
1150 |
|
Year : |
2013 |
|
Petitioner : |
THE GOVERNMENT OF TAMIL NADU, |
|
Respondent : |
M/S.SUNDARAM CLAYTON LTD, |
|
Pet's Advocate : |
GOVERNMENT PLEADER |
|
Res's Advocate : |
|
|
Category : |
NO CATEGORY MENTIONED |
|
|
Last Listed on: No Date Mentioned |
|
Case Updated on : |
Jun 12 2013 |
PERFORMANCE
The year 2012 witnessed a downward trend in economic developments in the country, influenced by the negative sentiment in macro-economic scenario across overseas and domestic markets. The slowdown that commenced in 2011 continued through 2012 and is expected to prevail over the current year as well.
During the year 2012-13, the GDP is likely to register a growth rate of only 5% as against 6.5% achieved in 2011-12. This growth rate is significantly lower than the estimates at the beginning of the year.
During 2012, GDP in US grew by 2.2% as against 1.47% in 2011. (Source: BEA). GDP growth in the European Union was flat in 2012 compared to 1.5% in 2011 (Source: Eurostat / IMF).
In this background, North American class 8 truck segment witnessed a growth of 9% (Source ACT), while, the sale of European medium and heavy trucks suffered decline of 10% (Source ACEA).
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry Structure
and Development:
Domestic
FY 2012-13 saw Indian Economy going through a difficult phase characterised by subdued industrial activity, higher interest rates, global economic slowdown, volatility in currency and crude oil prices. India's GDP growth declined to a decade low of 5% in FY 2012-13 (CSO Advanced Estimates). Average WPI inflation for 2012-13 stood at 7.6%, slightly lower than 8.9% inflation recorded in 2011-12. On the other hand, CPI inflation increased to 10% from the previous year level of 8.4%.
Indian currency was adversely affected by volatile crude oil prices, lower net capital inflows and lower export growth in the first three quarters of the FY 2012-13. The global crude oil prices remained between US$85 per barrel and US$100 per barrel for large part of the year.
Availability of power has been a major concern throughout the year 2012-13.
The unfavorable macroeconomic conditions and higher interest rates had a deep impact on the growth of the automotive industry. Further, delayed monsoon and increases in fuel prices adversely impacted the growth of vehicles sales. With the above background, Indian auto industry grew at a dismal rate of 1.2% in FY 2012-13, with 24% decline in M and HCVs and a meagre 3.2% growth in Passenger Vehicles.
|
Category |
FY 2012-13 Nos. |
FY 2011-12 Nos. |
Variance in % |
|
Medium and Heavy Commercial Vehicles (M and HCV) |
287282 |
377711 |
(24) |
|
Light Commercial Vehicles (LCV) |
585812 |
524056 |
12 |
|
Buses - M and HCV |
53663 |
59091 |
(9) |
|
Passenger Vehicles |
3241115 |
3138622 |
3 |
|
Two wheelers |
15758689 |
15384261 |
2 |
Exports
Though the US economy witnessed a growth of 2.2% in 2012, the Eurozone financial crisis deepened over the last one year with the contagion spreading to multiple countries across Europe. Credit availability remained low and the overall customer sentiments were negative.
The following table highlights the North American and European truck production figures in vehicle units.
|
Market |
Category |
2012 |
2011 |
Variance (in %) |
|
North America |
Class 8 Trucks |
278720 |
255261 |
9 |
|
North America |
Class 5-7 Trucks |
188449 |
166792 |
13 |
|
Europe |
Medium and Heavy trucks |
214207 |
236064 |
(9) |
BUSINESS OUTLOOK AND
OVERVIEW
Going forward, growth is expected to remain sluggish in 2013-14 unless substantive policy measures are undertaken to boost investment sentiments.
The major concerns would be non-availability of power, high inflation, high current account and fiscal deficit.
In view of the weakness in inflow of foreign direct investment and deteriorating macro economic conditions, the rupee is expected to depreciate and likely to remain above Rs.54 per dollar during 2013 -14. Implementation of key structural reforms with emphasis on growth could revive the economy and provide the industries with the much-needed stimulus for growth.
As regards exports, the Company expects the overall demand in NAFTA region to remain stagnant based on current indications. Recovery is expected after Q3 of 2013. The Southern Europe continues to be under recession. However, the Euro 6 standard norms becoming mandatory from January 2014, it is likely to induce pre-buy effect that may have a positive impact on their sales in the EU.
Economy
Global economy showed no signs of recovery during 2012-13 and the growth rate may continue to remain uncertain due to volatile crude and commodity prices and fluctuations in foreign exchange rates. In domestic economy, continued inflationary pressures, lower private consumption and high interest rates are likely to affect the GDP growth rate.
Failure of monsoon would trigger further inflation and increase of interest rates. Hardening of interest rates and fuel prices will have adverse impact on sales of the automobiles in domestic industry. It will have negative impact on margins of the Company owing to volume reduction and increased interest and energy cost.
Industry specific
The Company caters to the requirements of the automotive industry. The revenue of the Company is derived from M and HCVs (50%), followed by Car Industry (30%) and two wheeler industry (20%).
The Indian commercial vehicle industry has strong correlation with the agricultural growth and the mining industry and is cyclical. Presence in all the major segments of automotive industry will largely mitigate the segment- specific risks.
Competition has increased significantly in the Indian market due to entry of new players and expansion plans of existing ones. The Company is aware of the increasing competition and is taking measures to remain competitive in the market place.
The shortfall in the supply of power from the Government had forced the Company to resort to captive power generation using diesel generators and purchase of power from third parties at higher rates.
The Government had also come out with additional surcharge towards Renewable Power Obligation and Solar Power Obligation that has added to the overall power cost. The power situation remains a concern with no major power generation capacity getting added to the system. This is likely to have an impact by way of higher costs and lower margins. However, the Company has made arrangements for ensuring the availability of captive power.
Sourcing
While the Company continues to pursue cost reduction initiatives, increase in price of input materials could impact the Company's profitability to the extent that the same are not compensated by customers. However, no shortage of aluminium is expected.
Forex
With significant exports and foreign currency liabilities, the Company is always exposed to global currency fluctuations. However, the Company has a well-defined forex hedging policy to mitigate the risks.
Contractual
The stipulation and requirements of the automobile industry demands high quality products. Quality is, therefore, key and monitored closely. Although every reasonable precaution is taken, in rare cases, defects that escape may lead to incurring expenses for rework / product recall. Appropriate recall and product liability insurance in line with standard industry practice have been taken to minimize the risks. Just-in-time delivery is another important contractual obligation. Robust quality and project management systems are in place to avoid delay in deliveries due to quality issues or project implementation for minimizing risks.
Capacity utilization
The Company continuously steps up capacities to meet the projected demand of customers. The capacity utilization will be adversely affected if the programs of the customers are delayed or postponed or not in line with the projected demands. The Company closely monitors the progress of customer projects/volumes to minimize the risk of under-utilization of capacities.
UNSECURED LOAN
(Rs. In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
LONG-TERM
BORROWINGS |
|
|
|
From other parties |
30.000 |
15.000 |
|
SHORT-TERM
BORROWINGS |
|
|
|
From banks- Short term |
464.900 |
788.000 |
|
|
|
|
|
Total |
494.900 |
803.000 |
CONTINGENT LIABILITY
NOT PROVIDED FOR
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
On counter-guarantee given to bank |
7.300 |
5.000 |
|
On letters of credit opened with banks |
539.300 |
893.900 |
|
Capital commitments not provided |
98.000 |
554.200 |
|
On guarantee furnished on behalf of employees |
0.100 |
0.100 |
|
On account of future export obligations (under Export Promotion Capital Goods Scheme and Advance Licence) |
2194.200 |
1748.600 |
|
On commitment for capital contribution to TVS Shriram Growth Fund Scheme IB of TVS Capital Funds |
63.800 |
63.800 |
FIXED ASSETS
Tangible Assets
- Land
- Buildings
- Plant and Equipment
- Furniture and Fixture
- Office Equipment
- Vehicles
Intangible Assets
- Software)
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.60.07 |
|
|
1 |
Rs.100.56 |
|
Euro |
1 |
Rs.82.79 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
62 |
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.