MIRA
INFORM REPORT
|
Report Date : |
07.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
JK |
|
|
|
|
Registered
Office : |
Jaykaygram, PO – |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
14.02.1951 |
|
|
|
|
Com. Reg. No.: |
21-019430 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.410.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L67120WB1951PLC019430 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHJ01475F /
CALJ01643F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACJ6716P |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturing of
Tyres. |
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|
|
|
No. of Employees
: |
Information declined by the management
|
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 30000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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|
Comments : |
Subject is a well-established company having fine track record. The rating reflects JKTI’s long-track record of operations supported by
its established market position and wide marketing and distribution network.
Further rating also reflects sound financial risk profile fair profitability
of the company. 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
27.05.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A2+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
27.05.2014 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-11-23311112)
LOCATIONS
|
Registered
Office : |
Jaykaygram, PO – Tyre Factory, Kankroli – 313342, Rajasthan |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
Location: |
Owned |
|
|
|
|
Factory : |
Mysore, Karnataka,
India |
|
|
|
|
Corporate/
Head Office : |
‘Link House’, 3,
Bahadur Shah Zafar Marg, |
|
Tel. No.: |
91-11-23311112-7 |
|
Fax No.: |
91-11-23322059/
23716205 |
|
|
|
|
Plants
Locations : |
|
|
|
|
|
Branch Office
/ Administrative Office: |
3/Fl, Gulab Bhavan,
3 Bahadur Shah Jafar Marg, |
DIRECTORS
As on 31.03.2013
|
Name : |
Dr. Raghupati
Singhania |
|
Designation : |
Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Bharat Hari
Singhania |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Arvind Singh
Mewar |
|
Designation : |
Director |
|
Qualification
: |
B. A. (English
Literature, Economics and Political Science), Hotel Management Ctheirse (U.K) |
|
Date of
Joining : |
07.04.1975 |
|
|
|
|
Name : |
Mr. Bakul Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kalpataru
Tripathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vikrampati
Singhania |
|
Designation : |
Deputy Managing
Director |
|
|
|
|
Name : |
Mr. Swaroop Chand
Sethi |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. Arun K.
Bajoria |
|
Designation : |
President and
Director |
|
|
|
|
Name : |
Vimal Bhandari |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P. K. Rustagi |
|
Designation : |
Vice President (legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
715161 |
1.74 |
|
|
18724320 |
45.60 |
|
|
19439481 |
47.34 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
19439481 |
47.34 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2187776 |
5.33 |
|
|
96940 |
0.24 |
|
|
285520 |
0.70 |
|
|
796402 |
1.94 |
|
|
2178087 |
5.30 |
|
|
5544725 |
13.50 |
|
|
|
|
|
|
4369193 |
10.64 |
|
|
|
|
|
|
4602551 |
11.21 |
|
|
1898801 |
4.62 |
|
|
5204595 |
12.68 |
|
|
315973 |
0.77 |
|
|
42035 |
0.10 |
|
|
1354851 |
3.30 |
|
|
3487500 |
8.49 |
|
|
4236 |
0.01 |
|
|
16075140 |
39.15 |
|
Total Public shareholding (B) |
21619865 |
52.66 |
|
Total (A)+(B) |
41059346 |
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) |
41059346 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Tyres. |
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|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
PARTICULARS |
UNITS |
INSTALLED CAPACITY PER ANNUM |
PRODUCTION |
|
QTY. |
QTY. |
||
|
Automobile
Tyres |
Lac
Nos. |
98.61 |
85.98 |
|
Automobile Tubes |
Lac Nos. |
13.82 |
54.62 |
|
Automobile Flaps |
Lac
Nos. |
-- |
24.47 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management
|
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Bankers : |
· Bank of India · Corporation Bank · IDBI Bank Limited · Indian Bank · Punjab National Bank · State Bank of Bikaner and Jaipur · State Bank of India · The Federal Bank Limited ·
UCO Bank |
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|
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Facilities : |
|
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered
Accountants |
|
Address : |
12, Bhagat Singh Marg, New Delhi - 110001, India |
|
Tel No.: |
91-11-23710176/23710177/23364671/2414 |
|
Fax No.: |
91-11-23345168/23314309 |
|
Email: |
|
|
|
|
|
Subsidiaries:: |
· J. K. International Limited · J. K. Asia Pacific Limited · J. K. Asia Pacific (S) Pte. Ltd. (Subs. of J. K. Asia Pacific Limited) · Lankros Holdings Limited · Sarvi Holdings Switzerland AG. (Subs. of Lankros Holdings Limited.) · JK Tornel S.A.de C.V. (JKTSA- Subs. of Sarvi Holdings Switzerland AG.) · Comercializadora América Universal, S.A. de C.V.* · Compańía Hulera Tacuba, S.A. de C.V. * · Compańía Hulera Tornel, S.A. de C.V. (CHT)* · Compańía Inmobiliaria Norida, S.A. de C.V. * · General de Inmuebles Industriales, S.A. de C.V. * · Gintor Administración, S.A. de C.V. * · Hules y Procesos Tornel, S.A. de C.V. * * Subsidiary of JKTSA |
|
|
|
|
Associates: |
· Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) · Valiant Pacific LLC. (VPL) |
|
|
|
|
Enterprise over
which KMP is able to exercise Significant Influence: |
· JK Lakshmi Cement Limited (JKLC) · Fenner (India) Limited (FIL) |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs. 410.600
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125,000,000 |
Equity shares |
Rs.10/- each |
Rs.1250.000 Millions |
|
700,000 |
14% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 70.000 Millions |
|
4,800,000 |
Preference Shares |
Rs.100/- each |
Rs. 480.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1800.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41,059,346 |
Equity shares |
Rs.10/- each |
Rs. 410.600 Millions
|
|
|
|
|
|
NOTE:
|
Details of each
shareholder holding more than 5% shares: |
No. of Shares held As at 31.03.2013 |
|
|
|
|
Name of Shareholder |
|
|
|
|
|
Bengal and Assam Company Limited |
85,89,250 |
|
Fenner India Limited |
36,00,000 |
|
JK Agri Genetics Limited |
60,34,070 |
|
Edgefield Securities Limited |
34,87,500 |
|
|
|
|
Reconciliation of
the number of shares outstanding: |
As at 31.03.2013 |
|
|
|
|
Shares outstanding as at the beginning of the year |
4,10,59,346 |
|
Addition during the year |
- |
|
Deletion during the year |
- |
|
Shares outstanding as at the end of the year |
4,10,59,346 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
410.600 |
410.600 |
410.600 |
|
(b) Reserves & Surplus |
7949.900 |
7008.700 |
6295.400 |
|
(c) Money received against
share warrants |
123.700 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
8484.200 |
7419.300 |
6706.000 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11633.000 |
11308.800 |
10018.900 |
|
(b) Deferred tax liabilities
(Net) |
2524.200 |
1920.500 |
1475.600 |
|
(c) Other long term
liabilities |
3419.800 |
3429.500 |
3440.200 |
|
(d) long-term provisions |
97.000 |
103.700 |
94.300 |
|
Total
Non-current Liabilities (3) |
17674.000 |
16762.500 |
15029.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
10448.700 |
10892.900 |
6990.300 |
|
(b) Trade payables |
9034.400 |
7489.600 |
10301.700 |
|
(c) Other current liabilities |
4257.500 |
3436.700 |
3299.100 |
|
(d) Short-term provisions |
1298.800 |
1331.800 |
958.400 |
|
Total
Current Liabilities (4) |
25039.400 |
23151.000 |
21549.500 |
|
|
|
|
|
|
TOTAL |
51197.600 |
47332.800 |
43284.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
24169.600 |
22792.600 |
14400.900 |
|
(ii) Intangible Assets |
0.000 |
11.200 |
31.000 |
|
(iii) Capital work-in-progress |
0.000 |
546.800 |
7492.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
891.400 |
975.900 |
1008.900 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1365.100 |
1865.600 |
770.700 |
|
(e) Other Non-current assets |
933.900 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
27360.000 |
26192.100 |
23703.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
126.200 |
0.000 |
0.000 |
|
(b) Inventories |
7657.000 |
8098.000 |
6615.400 |
|
(c) Trade receivables |
11863.700 |
9166.800 |
8685.800 |
|
(d) Cash and cash equivalents |
1777.800 |
946.600 |
784.200 |
|
(e) Short-term loans and
advances |
2328.400 |
2924.900 |
2613.800 |
|
(f) Other current assets |
84.500 |
4.400 |
881.800 |
|
Total
Current Assets |
23837.600 |
21140.700 |
19581.000 |
|
|
|
|
|
|
TOTAL |
51197.600 |
47332.800 |
43284.500 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
59510.800 |
54308.300 |
54795.800 |
|
|
Other Income |
162.500 |
130.500 |
35.000 |
|
|
TOTAL
(A) |
59673.300 |
54438.800 |
54830.800 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of materials consumed |
39726.600 |
38728.000 |
41085.900 |
|
|
Purchases of Stock-in-Trade |
397.400 |
444.600 |
609.900 |
|
|
(Increase) / decrease in inventories of finished goods
work-in-progress and Stock-in-trade |
241.400 |
(549.300) |
849.500 |
|
|
Employee benefits expense |
3983.900 |
3337.200 |
2948.000 |
|
|
Other expenses |
8607.500 |
7474.200 |
6507.800 |
|
|
Exceptional Items |
758.300 |
309.200 |
(16.700) |
|
|
TOTAL
(B) |
53715.100 |
49743.900 |
51984.400 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
5958.200 |
4694.900 |
2846.400 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2483.000 |
2065.300 |
1704.300 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3475.200 |
2629.600 |
1142.100 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
1524.700 |
1126.500 |
1014.100 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
1950.500 |
1503.100 |
128.000 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
603.700 |
447.700 |
18.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
1346.800 |
1055.400 |
110.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
FOB Value of exports |
NA |
8473.800 |
5902.900 |
|
|
Royalty |
NA |
172.300 |
45.200 |
|
|
Interest Income |
NA |
1.700 |
5.200 |
|
|
TOTAL
EARNINGS |
NA |
8647.800 |
5953.300 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
|
15761.100 |
14000.000 |
|
|
Capital Goods |
|
819.300 |
2818.700 |
|
|
Spares |
|
58.000 |
50.600 |
|
|
TOTAL
IMPORTS |
NA |
16638.400 |
16869.300 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
32.80 |
25.70 |
2.68 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
2.26 |
1.94 |
0.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.28 |
2.77 |
0.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.88 |
3.28 |
0.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
0.20 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.60 |
2.99 |
2.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95 |
0.91 |
0.91 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
410.600 |
410.600 |
410.600 |
|
Reserves & Surplus |
6295.400 |
7008.700 |
7949.900 |
|
Money received against share
warrants |
0.000 |
0.000 |
123.700 |
|
Net
worth |
6706.000 |
7419.300 |
8484.200 |
|
|
|
|
|
|
long-term borrowings |
10018.900 |
11308.800 |
11633.000 |
|
Short term borrowings |
6990.300 |
10892.900 |
10448.700 |
|
Total
borrowings |
17009.200 |
22201.700 |
22081.700 |
|
Debt/Equity
ratio |
2.536 |
2.992 |
2.603 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
54795.800 |
54308.300 |
59510.800 |
|
|
|
-0.890 |
9.580 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
54795.800 |
54308.300 |
59510.800 |
|
Profit |
110.000 |
1055.400 |
1346.800 |
|
|
0.20% |
1.94% |
2.26% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
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
RAJASTHAN
HIGH COURT
|
Date of query : 7/8/2014 |
Time : 4:35:28 PM |
|
CMA'1465' of 2013 - D |
4277/2013 |
|
Petitioner : |
V S LIGNITE POWER PRIVATE LIMITED |
|
Respondent: |
M/S J K TYRES AND INDUSTRIES LIMITED |
|
Petitioner Advocate: |
SHASHANK SHARMA |
|
Respondent Advocate: |
|
|
Class Code : 1200 |
Registered on : 3/5/2013 |
|
Bench : SB |
Stage : |
|
Listed in court No. 12 on 23/07/2014 |
|
|
Cases Detail in which this is Main Case |
|||
|
Filling Number |
Reg. No. |
Filing Date |
|
|
CSTAY-4278/2013 |
1015/2013 |
18/4/2013 |
|
|
Lower Court Details |
|
|||
|
Case No. |
Judgeship |
Place |
Court |
Decision Date |
|
ARBC-620/2012 |
JAIPUR METRO. |
JAIPUR |
ADDITIONAL DISTRICT & SESSION JUDGE NO.5 |
16/3/2013 |
|
Case Detail have Match with this case |
|||
|
Case Type |
Number |
|
|
|
Paper Details |
|||
|
No. |
Type |
Date of filing |
|
|
14041/2013 |
OTHERS |
15/7/2013 |
|
|
V S LIGNITE POWER PRIVATE LIMITED VS M/S J K TYRES AND INDUSTRIES LIMITED |
SHASHANK SHARMA |
Court Fee : |
|
|
14048/2013 |
OTHERS |
15/7/2013 |
|
|
V S LIGNITE POWER PRIVATE LIMITED VS M/S J K TYRES AND INDUSTRIES LIMITED |
SHASHANK SHARMA |
Court Fee : |
|
NOTE: Registered office of the company has been shifted from 7, Council House Street, Kolkata – 700001, West Bengal, India, to the present address w.e.f. 28.07.2014
OPERATIONS
The Company achieved a turnover of Rs.60150.000 Millions. Operating Profit for the year was Rs.5000.000 Millions, higher by 77% and Profit Before Tax at Rs.150 Crores, recorded a multifold increase over the previous year.
The Company alongwith its wholly owned subsidiary-JK Tornel, Mexico achieved a consolidated Turnover of Rs.75700.000 Millions during the year. The consolidated Profit Before Tax for the year was Rs.2640.000 Millions.
The Indian economy slowed down considerably during the year with GDP recording a growth of merely 5%. This coupled with high rates of interest prevailing during the year, adversely affected the automotive sector in particular. Several commercial vehicle manufacturers resorted to heavy production cuts. Growth in Passenger Car sales, lowest in the decade, was barely 2.5%. Consequently, demand for tyres slowed down both for Commercial as well as Passenger segments.
The Company continued its thrust towards enhancing quality of service to its customers through new offerings of value added products and providing tyre care, through a wide network of exclusive outlets. Improvement of various operating parameters coupled with cost compression measures, in the backdrop of softer raw material prices, helped the Company to improve its profitability significantly.
Interest rates and inflation pressures have eased to some extent. With the expected revival of the economy, the outlook for the current year is promising.
CHENNAI PLANT
Production at the All Radial new Tyre Plant at Chennai (CTP) ramped up during the year. The additional 2 lac per annum Truck/Bus radials expansion taken up last year at CTP was also completed and commissioned. Further expansion of Passenger Car Radial(PCR) capacity has been undertaken at CTP and is progressing well.
With the expected improvement in market conditions during the current year, along with the availability of full output from CTP, JK Tyre’s radial leadership position will be significantly strengthened.
EXPANSION
With the growing demand for Company’s Farm tyres, it has undertaken an expansion to enhance Farm tyre capacity at its various plants. Capacity for Small Commercial Vehicle tyres is also being added to enhance its presence in this growing segment.
EXPORTS
JK Tyre achieved an export turnover of Rs.8470.000 Millions from its Indian plants, highest ever, recording a growth of 44% over the previous year. The Company exports tyres to 90 countries and has established ‘JK Tyre’ as a reliable and trustworthy brand, which enjoys premium status in major markets.
AWARDS
The Company received several coveted accolades during the year. To mention a few, ‘Greentech nvironment Award – 2012’ in Gold category, ‘Greentech Safety Award 2012’, Award for ‘Water Efficiency Unit’ by CII, Award for Organization with Innovative HR Practices from Asia Pacific HRM Congress.
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESS ENVIRONMENT
The worldwide slowdown is affecting many developed as well as emerging economies and Indian economy being globally integrated is no exception. In the year 2012-13, the Indian economy grew at merely 5%, the lowest in a decade.
Various segments of the Indian industry, particularly the automotive sector, have been hit resulting in low industrial activity. Ban on mining, high interest rates and high inflation rates and rising fuel prices have impacted the automotive demand.
AUTOMOTIVE INDUSTRY
Sales of commercial vehicles [Truck and Bus, Light Commercial Vehicles(LCV) and Small Commercial Vehicles(SCV)] in the year 2012-13, registered a growth of merely 0.5%, against 23% in the previous year. While the Medium and Heavy Commercial Vehicle(M and HCV) volumes declined by 24%, LCV (including SCV) continued to sustain its growth momentum, with LCV segment growing year on year by 15%. Low cargo availability, weak investment sentiment and significant fleet capacity addition over the past three years, has impacted overall sales of M and HCV’s, where the sharpest contraction in demand is in higher tonnage trucks such as tippers, tractor trailers and multi application vehicles(MAVs). The passenger vehicle [Car + Multi Utility vehicle(MUV)] sales witnessed a muted growth of 3%, due to sluggish economic activity, hit by inflation, high fuel prices and financing costs. The small car industry also witnessed a downturn during the year.
In the absence of a major growth trigger, the tractor market continued to be elusive during the year, with sales registering a degrowth of 3% on account of an inadequate monsoon, weaker farm inflows, a softer demand from non-agricultural segments, and the increase in cost of ownership marked by high interest rates and hike in prices of tractors and diesel.
INDIAN TYRE INDUSTRY
Mobility in India is rapidly improving and with it, the Indian tyre Industry has gone through a metamorphosis on the back of R and D infrastructure and product development, skilled manpower, growth opportunities and globalization.
Global Tyre Majors continue to establish their presence in India. Over the years, domestic Tyre companies through enhanced capacities, continuous investments in R and D, introduction of global standard products, have built up their capabilities to match the global competition, across the range.
India’s large market has immense potential for growth, with an expected Industry turnover of about Rs.500000.000 Millions. In terms of the segment mix, the Replacement market contributed around 67%, OEM accounted for 22% and exports were 11%. In the tyre segments, Truck and Bus commanded 50% of the Industry Turnover.
Domestic demand of 4-Wheeler tyres in year, was impacted by the economic downturn and subdued growth in the Automotive industry. A 13% reduction in the Truck/Bus segment demand, followed by Tractor segment that was lower by 12%, and the passenger car segment that has reduced by 2%, illustrate a major decline. In contrast, the LCV, including SCV tyre demand grew by 18%.During the year, Radialisation in Truck and Bus Segment accelerated further to 22%, with improved road infrastructure and thrust by OEMs. It is estimated that by the FY 2015-16, the segment would cross the 50% mark. Correction in Natural Rubber prices have positively impacted the Tyre Industry. This will help in improving the margins, which were under strain for quite some time.
JK TYRE - INDIA OPERATIONS
Over the last couple of years, the Company has put in measures to drive business growth, including the commissioning of the new All Radial Chennai Tyre plant. JK Tyre has taken several structured initiatives to create
more value for the Company’s customers and end users. Brief overviews of the Company’s various business initiatives, across all categories, are outlined below: Truck and Bus Segment In a milieu of stiff domestic and global competition, the Company has held on to its market leadership position in the Truck and Bus Radial segment and continues to drive the radial revolution in India, by increasing its participation in high-radialised segments like OEM and STUs.
The Company has introduced an array of new products for various applications with a view to accelerate radialisation in the replacement market. Additionally, the Company strives to further improve the performance of its existing product lines, to offer better value to its customers. Products are being designed and developed to deliver higher fuel efficiency and lower cost per km advantage, while services are designed to hand hold customers and help them to increase efficiency and reduce operating costs. In this regard, the Company’s unique Fleet Management program and ‘JK Tyre Truck Wheels’ continues to benefit the partner fleets. During the year, the Company developed and expanded its Fleet Management operations by offering ‘Total Solutions’ to its customers. The team of highly skilled and specialized professionals regularly inspects tyre health and advises the partner fleets on corrective measures to be undertaken to enhance tyre life. They also assist the fleets in choosing the right set of tyres for their specific applications.
In addition to this revolutionised Fleet Management system, a network of nine ‘JK Tyre Truck Wheel’ centers has been established over a period of 3 years, to act as a one-stop shop for the customer, with a range of value added services, such as wheel alignment, wheel balancing, nitrogen filling, tyre repair and retread services.
The Truck/Bus Bias tyre segment is witnessing an organic de-growth, however, the Company has improved its presence by offering new premium products to its customers. A premium Lug tyre ‘Jet Xtra’ gained significant volumes in a span of one year. Furthermore, Company’s premium offering in the Rib segment (Jet R Miles) continues to command market leadership.
BUSINESS OUTLOOK
While the economic activity in the year 2012-13 was subdued which largely affected the automotive and in turn the tyre industry, the outlook for the current year looks to be optimistic in the expectation of higher economic growth. Government’s recent initiatives to encourage investment in various segments of the economy aided by slight reduction in interest rates will bring back capital expenditure, which had almost dried up in the last two years. This augurs well for the Indian economy. Car manufacturers are going ahead with their planned expansions and are expected to invest about Rs.110000.000 Millions in the next two years. As a result, demand for tyres is expected to grow in the years ahead.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Deferred Sales Tax |
|
1027.200 |
|
Fixed Deposits |
|
207.300 |
|
Loan from Bank |
|
0.000 |
|
Short-term
borrowings |
|
|
|
Fixed Deposits |
|
45.300 |
|
Short-term Loans from Banks |
|
1376.400 |
|
Total |
NA |
2656.200 |
|
NOTE: AS ON
31.03.2013 Deferred Sales Tax aggregating Rs.55.200 Millions. from Madhya Pradesh State Industrial Development Corporation Limited, secured by first available charge on movable and immovable properties (created subject to charges referred to in note 1, 2 and 5 on movable and immovable properties of Company’s Plant in Madhya Pradesh) is repayable in April 2013. Unsecured Deferred Sales Tax Rs.1284.000 Millions. is repayable in 5 equal annual instalments commencing in 2013. Fixed Deposits of Rs.145.000 Millions., Rs.86.500 Millions. and Rs.120.800 Millions. (aggregating Rs.352.300 Millions.) are due for repayment in 2013-14, 2014-15 and 2015-16 respectively. Unsecured loan from a bank amounting to Rs.500.000 Millions is repayable in January 2014. |
||
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10472560 |
31/12/2013 |
1,750,000,000.00 |
AXIS BANK LIMITED |
2ND FLOOR, STATESMAN
HOUSE, 148, BARAKHAMBA ROAD, |
B94375763 |
|
2 |
10467863 |
11/12/2013 |
1,250,000,000.00 |
INDIAN OVERSEAS BANK |
GEMINI CIRCLE
BRANCH, KARUNAI KUDIL, NO.297, CAT HEDRAL ROAD, CHENNAI, TAMIL NADU - 600086,
INDIA |
B92626423 |
|
3 |
10373037 |
01/02/2013 * |
23,539,600,000.00 |
BANK OF INDIA (LEAD BANK) |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4, PARLIAMENT STREET, NEW DELHI, DELHI -
110001, INDIA |
B69281095 |
|
4 |
10337866 |
13/06/2012 * |
5,300,000,000.00 |
BANK OF INDIA (SECURITY TRUSTEE) |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4, PARLIAMENT STREET,, NEW DELHI, DELHI -
110001, INDIA |
B43078211 |
|
5 |
10314018 |
01/02/2012 * |
1,000,000,000.00 |
INDIAN OVERSEAS BANK |
GEMINI CIRCLE
BRANCH, NO.297, CATHEDRAL ROAD, CHENNAI, TAMIL NADU - 600086, INDIA |
B33101650 |
|
6 |
10312670 |
01/02/2012 * |
2,000,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B33412883 |
|
7 |
10231825 |
15/07/2010 |
500,000,000.00 |
IDBI BANK LIMITED |
IRCS BUILDING,,
1, RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA |
A91105916 |
|
8 |
10196250 |
21/01/2011 * |
400,000,000.00 |
BANK OF INDIA |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4,PARLIAMENT STREET, NEW DELHI, DELHI -
110001, INDIA |
B05993811 |
|
9 |
10196251 |
30/12/2009 |
2,500,000,000.00 |
AXIS BANK LIMITED |
4/10, OPG HOUSE,
ASAF ALI ROAD, NEW DELHI, DELHI |
A77082717 |
|
10 |
10144354 |
29/10/2009 * |
1,000,000,000.00 |
BANK OF INDIA |
37, SHAHEED
BHAGAT SINGH MARG, HOTEL CONNAUGHT BU |
A72930688 |
* Date of charge modification
FIXED ASSETS
· Tangible Assets
· Land
· Buildings
· Plant and Equipments
· Furniture and Fixtures
· Office Equipments
· 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.61.34 |
|
|
1 |
Rs.103.44 |
|
Euro |
1 |
Rs.81.96 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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.