MIRA
INFORM REPORT
|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
JAY BHARAT MARUTI LIMITED |
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Registered
Office : |
601, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110 019 |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
19.03.1987 |
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Com. Reg. No.: |
55-027342 |
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Capital
Investment / Paid-up Capital : |
Rs.108.250
Millions |
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CIN No.: [Company Identification
No.] |
L29130DL1987PLC027342 |
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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
: |
Subject is primarily engaged in the business of manufacturing of
components for automobiles. |
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|
No. of Employees
: |
Approximately 3600 (Permanent and Contractual) |
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 6400000 |
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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 joint venture with Maruti Suzuki India Limited. It is a
well-established company having fine track record. The ratings reflects JBML’s strong business position with its key
customer, shift in the products mix towards higher value added components,
healthy operating efficiencies, diversified product portfolio likely
sustenance of healthy credit profile. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Cash Credit = A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
December 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Letter of Credit = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
December 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Corporate Office : |
601, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110 019, India |
|
Tel. No.: |
91-11-26427104 / 6 |
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Fax No.: |
91-11-26427100 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.5, Maruti Joint Venture Complex, Gurgaon – 122 015, Haryana,
India |
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Factory 2 : |
Sector
36, Mohammadpur Jharsa, Near Khandsa Village, Gurgaon – 122 001, Haryana,
India |
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Factory 3 : |
Plot
No.15 and 22, Sector - 3A, Maruti Supplier Park, IMT Manesar, Gurgaon – 122
050, Haryana, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. S.K. Arya |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Mr. U.C. Aggarwal |
|
Designation : |
Director |
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Name : |
Mr. D.P. Agarwal |
|
Designation : |
Director |
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Name : |
Mr. R. Dayal |
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Designation : |
MSIL Nominee Director |
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Name : |
Mr. Achintya Karati |
|
Designation : |
Director |
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|
Name : |
Mr. Nishant Arya |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anand Swaroop |
|
Designation : |
President and Chief Financial Officer |
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|
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|
Name : |
Mr. S. Kartik |
|
Designation : |
Company Secretary and Compliance Officer |
SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3163850 |
14.61 |
|
|
9516350 |
43.96 |
|
|
12680200 |
58.57 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
12680200 |
58.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7400 |
0.03 |
|
|
1200 |
0.01 |
|
|
400 |
0.00 |
|
|
1000 |
0.00 |
|
|
2129 |
0.01 |
|
|
12129 |
0.06 |
|
|
|
|
|
|
4416201 |
20.40 |
|
|
|
|
|
|
2769591 |
12.79 |
|
|
1578857 |
7.29 |
|
|
193022 |
0.89 |
|
|
193022 |
0.89 |
|
|
8957671 |
41.37 |
|
Total Public shareholding (B) |
8969800 |
41.43 |
|
Total (A)+(B) |
21650000 |
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) |
21650000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in the business of manufacturing of components
for automobiles. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Installed
Capacity ** |
Actual
Production Nos. |
|
Sheet Metal
components, Assemblies and sub-assemblies * |
60000 MT |
37881832* |
|
Muffler assemblies |
- |
868315 |
|
Fuel Neck (Nos.) |
1280000 |
1170144 |
|
Rear Axle (Nos.) |
1160000 |
755517 |
|
Dies and Tools (Nos.) |
- |
67 |
Notes:
* Includes
components produced on job work 3713464 Nos. excludes components produced for
interplant 21877831 nos.
** On 3 shift basis
GENERAL INFORMATION
|
No. of Employees : |
Approximately 3600 (Permanent and Contractual) |
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Bankers : |
· Canara Bank · Citi Bank N.A. · DBS Bank · HSBC Bank · ICICI Bank Limited · IndusInd Bank · ING Vysya Bank · Kotak Mahindra Bank · Standard Chartered Bank · The Bank of Tokyo Mitsubishi UFJ Limited ·
YES Bank Limited |
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Facilities : |
Long Term Borrowings * Secured by first and exclusive charge on the movable fixed assets purchased/to be purchased including, without limitation, its movable plant and machinery, furniture, fixture, equipment, computer hardware, computer software, machinery spares, and tools and accessories and others movables so as to provide an asset cover of 1.5 times the loan amount at market valuation. ** Secured by Hypothecation of vehicle Financed *** Secured by first and exclusive charge on the movable fixed assets purchased/to be purchased including, without limitation, its movable plant and Machinery, furniture and fixture, equipment, computer hardware, computer software, machinery spares, tools and accessories and others movables.
Vehicle Loans from banks and other related parties are payable in 36 and 84 monthly equal installments respectively from the date of disbursements. Short Term Borrowings * Secured by first charge on book debts, stock and other current assets of the company ranking parri passu inter se between the company’s bankers and are further secured by second charge on movable fixed assets of the company. |
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Banking Relations
: |
-- |
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Statutory Auditors : |
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|
Name : |
Mehra Goel and Company Chartered Accountants |
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Internal Auditors : |
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Name : |
Sahni Natrajan and Bahl Chartered Accountants |
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Associates/
Joint Venture Partner : |
Maruti Suzuki India Limited |
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Enterprises over which Key Management Personnel
and their relatives are able to exercise significant influence : |
·
JBM Industries Limited ·
Neel Metal Products Limited ·
JBM Auto Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24000000 |
Equity Shares |
Rs.5/- each |
Rs.120.000 Millions |
|
3000000 |
Preference Shares |
Rs.10/- each |
Rs.30.000 Millions |
|
|
Total |
|
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21650000 |
Equity Shares |
Rs.5/- each |
Rs.108.250
Millions |
Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
Rs. In Millions |
|
|
|
|
|
Balance at the beginning and at the end of the year |
21650000 |
108.250 |
Rights, preferences and restrictions attached to shares
The company has
one class of equity shares with a par value of Rs.5/- per share. Each shareholder
is eligible for one vote per share held. The dividend proposed by the board of
director is subject to the approval of shareholders in the ensuing Annual
General Meeting, except in the case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive remaining assets
of the company after distribution of all preferential amounts, in proportion to
their shareholding.
Detail of shareholding
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Maruti Suzuki India Limited |
6340000 |
29.28% |
|
ANS Holding Private Limited |
2029000 |
9.37% |
|
Sanjay Singhal |
1900400 |
8.78% |
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 |
108.250 |
108.250 |
108.250 |
|
(b) Reserves & Surplus |
1481.190 |
1303.871 |
1145.323 |
|
(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) |
1589.440 |
1412.121 |
1253.573 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
1251.447 |
1253.518 |
481.452 |
|
(b) Deferred tax liabilities (Net) |
279.805 |
258.352 |
165.964 |
|
(c) Other long term liabilities |
15.985 |
15.837 |
19.755 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
1547.237 |
1527.707 |
667.171 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
407.056 |
292.508 |
392.902 |
|
(b) Trade payables |
1399.619 |
1766.100 |
1216.091 |
|
(c) Other current
liabilities |
733.381 |
516.142 |
498.571 |
|
(d) Short-term provisions |
88.127 |
77.263 |
107.758 |
|
Total Current Liabilities (4) |
2628.183 |
2652.013 |
2215.322 |
|
|
|
|
|
|
TOTAL |
5764.860 |
5591.841 |
4136.066 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3523.098 |
3182.955 |
2430.284 |
|
(ii) Intangible Assets |
4.984 |
7.286 |
11.951 |
|
(iii) Capital
work-in-progress |
218.211 |
245.094 |
157.482 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
23.855 |
23.855 |
23.855 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
58.046 |
16.291 |
145.441 |
|
(e) Other Non-current assets |
207.413 |
144.300 |
16.424 |
|
Total Non-Current Assets |
4035.607 |
3619.781 |
2785.437 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
843.169 |
754.797 |
526.479 |
|
(c) Trade receivables |
582.100 |
757.369 |
519.941 |
|
(d) Cash and cash
equivalents |
24.909 |
18.729 |
6.257 |
|
(e) Short-term loans and
advances |
0.000 |
0.000 |
0.000 |
|
(f) Other current assets |
279.075 |
441.165 |
297.952 |
|
Total Current Assets |
1729.253 |
1972.060 |
1350.629 |
|
|
|
|
|
|
TOTAL |
5764.860 |
5591.841 |
4136.066 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11802.266 |
10683.144 |
10605.560 |
|
|
|
Other Income |
34.222 |
22.303 |
55.702 |
|
|
|
TOTAL (A) |
11836.488 |
10705.447 |
10661.262 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
9507.848 |
8591.177 |
8514.430 |
|
|
|
Changes in
inventories of finished goods & work in progress |
(87.810) |
(13.516) |
(73.245) |
|
|
|
Employee benefits expense |
625.660 |
569.031 |
546.929 |
|
|
|
Other expenses |
820.328 |
674.283 |
612.450 |
|
|
|
TOTAL (B) |
10866.026 |
9820.975 |
9600.564 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
970.462 |
884.472 |
1060.698 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
195.000 |
215.056 |
143.407 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
775.462 |
669.416 |
917.291 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
455.435 |
380.178 |
350.858 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
320.027 |
289.238 |
566.433 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
104.714 |
92.947 |
183.384 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
215.313 |
196.291 |
383.049 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1124.496 |
983.948 |
691.223 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
32.475 |
32.475 |
43.300 |
|
|
|
Dividend Tax |
5.519 |
5.268 |
7.024 |
|
|
|
Transferred to General Reserve |
22.500 |
18.000 |
40.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1279.315 |
1124.496 |
983.948 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
205.622 |
420.174 |
186.267 |
|
|
|
Stores & Spares |
3.211 |
1.065 |
0.961 |
|
|
|
Capital Goods |
331.026 |
279.770 |
474.221 |
|
|
TOTAL IMPORTS |
539.859 |
701.009 |
661.449 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.95 |
9.07 |
17.69 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
2820.100 |
2960.700 |
3038.600 |
|
Total Expenditure |
2589.700 |
2680.500 |
2766.700 |
|
PBIDT (Excl OI) |
230.400 |
280.200 |
271.900 |
|
Other Income |
3.200 |
02.800 |
9.700 |
|
Operating Profit |
233.600 |
283000 |
281.600 |
|
Interest |
47.800 |
56.100 |
5.4.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
185.800 |
227.000 |
227.600 |
|
Depreciation |
108.700 |
113.300 |
112.700 |
|
Profit Before Tax |
77.100 |
113.600 |
114.900 |
|
Tax |
26100 |
38.200 |
39.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
50.900 |
75.400 |
75.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
50.900 |
75.400 |
75.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.82 |
1.83 |
3.59 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.71 |
2.71 |
5.34 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.79 |
5.43 |
14.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20 |
0.20 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.04 |
1.09 |
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.66 |
0.74 |
0.61 |
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 |
LITIGATION DETAILS:
IN THE HIGH COURT OF DELHI AT NEW DELHI
ITA 521/2009
THE COMMISSIONER OF INCOME TAX..... Appellant
Through: Mr Sanjeev Sabharwal
Versus
JAY BHARAT MARUTI LIMITED.....
Respondent
Through: Mr R. Santhanam
CORAM:
HON'BLE MR JUSTICE BADAR DURREZ AHMED
HON'BLE MR JUSTICE SIDDHARTH MRIDUL
ORDER
25.01.2010
Admit.
The following substantial question of law arises for our consideration:-
(1) whether in terms of the agreement between the parties, the amount of Rs1.659
Millions paid to Mr. Balsonica Corporation of Japan for technical know-how,
was in the nature of capital expenditure?
The paper books be filed by the appellant within three months as
per rules.
List in due course.
BADAR DURREZ AHMED, J
SIDDHARTH MRIDUL, J
JANUARY 25, 2010
SR
23
UNSECURED LOAN:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Short Term Borrowings |
|
|
|
- Foreign Currency Buyers Credits |
24.969 |
29.296 |
|
Total |
24.969 |
29.296 |
BUSINESS
PERFORMANCE
As anticipated
during the close of financial year 2011-12, the recovery of automobile sales
during 2012-13 were far from being modest and as a natural corollary, the growth
of auto component / auto ancillaries also suffered.
The economic
recession, high inflation / interest rates blew away the momentum which was
driving the sale of automobiles.
The sale of their
esteemed joint venture partner, M/s Maruti Suzuki India Limited (MSIL) grew by
a modest 3.30% during the financial year ended 31st March, 2013. The labour
unrest at the Manesar Plant of MSIL also affected its operations. The lower
growth in the operations of ` JV partner majorly affected the operations of there
Company as thereCompany’s maximum supplies are to MSIL.
However, the
margins of thereCompany have improved due to better operational efficiency and
lower financial cost.
During the
financial year 2012-13, the gross turnover of the Company was Rs.13419.800
Millions as against Rs.12160.700 Millions in 2011-12, an increase of 10.35%
(YoY). Profit After Tax was Rs.215.300 Millions
in 2012-13 as against Rs.196.300 Millions in 2011-12, an increase of
9.68% (YoY).
OVERVIEW
The global economy
exhibited similarities with the conditions that prevailed in the previous year.
Global growth remains historically low for the second year running with major
centres of economic activity—particularly large emerging economies and key
advanced economies slowed down, confirming the belief that the global economy
is troubled by a slow and weak recovery. Painful deleveraging – less spending
and more saving to reduce debt and leverage – remains ongoing in most advanced
economies, which implies slow economic growth. But fiscal austerity will
envelop most advanced economies this year, rather than just the Eurozone
periphery and The United Kingdom. Given synchronised fiscal retrenchment in
most advanced economies, another year of mediocre growth could give way to outright
contraction in some countries.
With growth
anaemic in most advanced economies, major advanced economies’ Central Banks –
The European Central Bank, The US Federal Reserve, The Bank of England and The
Swiss National Bank – have engaged in some form of quantitative easing, and
they are now likely to be joined by The Bank of Japan, which is being pushed
toward more unconventional policies by the new Government.
Many emerging
markets – including the BRICs (Brazil, Russia, India and China) are now experiencing
decelerating growth.
Their “state
capitalism” – a large role for state-owned companies; an even larger role for
state-owned banks; resource nationalism; import-substitution industrialisation;
and financial protectionism and controls on foreign direct investment – is the
heart of the problem. Initiation and result of reforms aimed at boosting the
private sector’s role in economic growth remains to be seen.
Policymakers
around the world remain concerned about the high unemployment and the social
conditions in their countries. Even if The United States prevented the worst of
the so-called fiscal cliff, the political brinkmanship over taxes and spending
continues to affect the outlook for the world’s largest economy, while the
sovereign debt crises and the danger of a banking system meltdown in peripheral
Eurozone countries remain unresolved.
The fear premium
in oil markets may significantly rise leading to negative growth effects in The
US, Europe, Japan, China, India and all other advanced economies and emerging
markets that are net oil importers.
Although the
probability of all these risks materialising is low, any one of them alone
would be enough to stall the global economy and derail the recovery and have a
lasting impact on the global economy. All these developments are highly
interrelated and demand timely, decisive, and coordinated action by
policymakers.
The Indian economy
has witnessed yet another slowdown in 2012-13 with all the sectors of the
economy affected. The economic survey released by the Government of India
paints a “cautiously optimistic” picture of the economy by not only estimating
that GDP growth will be 5 per cent this fiscal, the lowest in a decade but also
estimating a growth rate of 6.1-6.7 per cent for the year 2013-14 simultaneously
claiming that the downturn is more or less over and economy is looking up also
recognising the need for reforms.
Falling growth and
consequently falling Government revenues have taken a toll on Government’s
savings and without any corresponding fall in aggregate investment has led to
the widening of Current Account Deficit. While the report does reiterate
slowdown, it also supplements the Government’s commitment of minor slippage in
fiscal deficit and that the way out is a credible fiscal consolidation plan
which can help lead to macro-economic and price stability.
The adverse impact
of inflation is well reflected in lower savings rate, wider Current Account
Deficit and still elevated interest rates for investments. World Bank scaled
down India’s growth forecast to 6.1% for the current fiscal from 7% projected
earlier. However, the multi-lateral funding agency said that India is regaining
economic momentum and growth is expected to recover gradually to its high
long-term potential. Structural bottlenecks ruin the aspirations for the near
double-digit expansion as road, power and mining projects worth billions of
dollars have been held up for years because of delays in getting multiple
regulatory clearances.
Capital investment
is expected to slow down and growth in private consumption is expected to
moderate which will help keep inflation in check and encourage the Reserve Bank
of India (RBI) to cut interest rates further to help spur investments and
consumer demand.
The growth of the
Indian Economy will predominantly be guided on the following indicators:
·
Recovery of Global Economy;
·
Unified political consensus on stable and growth
oriented policy framework, reforms etc;
·
Containment of fiscal deficit by adoption of fiscal
prudence, inflation, stable interest rates;
·
Currency appreciation and sufficient foreign
exchange inflow;
·
Opening up / permitting more FDI Investment in
priority sectors;
·
Bouncing back of the service sector which has shown
more resilience to worsening external conditions than agriculture and industry;
·
Incentive based business approach for setting up /
expansion of manufacturing sector for creating new / increased job
opportunities.
The automobile
sector which is one of the key indicators of how well an economy is doing is
facing a turbulent environment which is reflected from the data as under:
·
New-car sales in Europe are at the low end of
expectations and the market is likely to remain shaky for some time as the
region implements austerity measures to cut its debts.
·
There’s still enormous potential in China, but the
market has slowed from double-digit growth to single digits, and that will
remain so in the future thereby raising the risk of over-dependence and
overcapacity.
·
There is only exception with the US where it is
expected that light-vehicle sales will rise in future due to pent-up demand as
the average car on the road in the United States is around 11 years old but
there is a very big difference between having pent-up demand and triggering the
release of that demand.
In India, the
sales growth rate of passenger cars nosedived to a twelve year low in February
this year, logging a 25.71 % dip to 1,58,513 units as burgeoning fuel prices,
increasing interest rates, along with poor consumer sentiments, taking a
beating.
The cumulative
production data for April-March 2013 shows production growth of only 1.20 %
over the same period last year. The overall growth in domestic sales during
April-March 2013 was 2.61 % over the same period last year. The overall
automobile exports registered de-growth of (-) 1.34 % compared to the same
period last year.
It is anticipated
that in the next three-four months there is no likelihood of any significant
improvement, even new model launches are unlikely to lift the sentiments but
there is a sense of optimism that in the second half of the year 2013-14, sales
may again pick up.
BUSINESS
PERFORMANCE
The Indian auto /
auto components industry is facing its most formidable challenge – slowdown in
demand; and that too across the segments. After a frensied period of 2009-10
and 2010-11, when all automotive spots - domestic OEMs, exports and replacement
market-shone bright, the year 2011-12 marked the commencement of a slowdown
phase as volumes in the domestic Passenger Vehicle (PV) and Medium & Heavy
Commercial Vehicle (M&HCV) segments began to stutter.
The year 2012-13
turned out to be worse as other segments too including the domestic two-wheeler
segment as also exports to overseas OEMs and tier-1 players have slowed down.
In 2011-12, the
auto component manufacturers were grappling with a rising cost scenario due to
volatile currency movements, firm interest rates and inflation in other
overheads. While there has been no significant change in character of any of
the above forces during 2012-13, the biggest trepidation for auto parts makers
currently springs from tepid automobile demand. Decline in revenues (on YoY
basis) had significantly hurt both profits as well as margins of auto component
manufacturers in 2012-13.
The business
performance of the auto component industry mirrors the performance of the OEM
industry and is largely dependent on it for its existence, survival and growth.
As per the
Industry estimate, market of auto component industry is broadly categorised as
under:
(i) 60% - 70%
caters to the needs of domestic OEMs.
(ii) 15% - 20%
caters to the needs of domestic replacement market
(iii) Remaining are export sales
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10437876 |
18/06/2013 |
450,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
7th Floor, Ambadeep Building,
K G Marg, New Delhi, Delhi - 110001, INDIA |
B80063225 |
|
2 |
10404026 |
04/09/2013 * |
350,000,000.00 |
The Hongkong and Shanghai
Banking Corporation Limited |
25, Barakhambha Road, New
Delhi, Delhi - 110001, INDIA |
B84827955 |
|
3 |
10394351 |
11/02/2013 * |
250,000,000.00 |
ING VYSYA BANK LIMITED |
Narian Manzil, Ground Floor,
Shop No. G1 to G5, I Floor, Shop No. 1001 To
1007, Barakhamba Road, New Delhi, Delhi - 110001, India |
B69970309 |
|
4 |
10337744 |
06/12/2012 * |
540,000,000.00 |
DBS Bank Limited |
Security Trustee of DBS Bank Ltd,
Singapore, UGF, 25, Barakhamba Road, New Delhi, Delhi - 110001, INDIA |
B64352982 |
|
5 |
10302610 |
02/01/2012 * |
224,800,000.00 |
DBS Bank Limited |
Upper Ground Floor, Birla
Tower, 25 Barakhamba Road, New Delhi, Delhi - 110001, INDIA |
B30048912 |
|
6 |
10299314 |
06/08/2012 * |
250,000,000.00 |
DBS Bank Limited |
Upper Ground Floor, 25,
Barakhamba Road, New Delhi, Delhi - 110001, INDIA |
B58884883 |
|
7 |
10281692 |
19/10/2011 * |
270,000,000.00 |
STANDARD CHARTERED BANK
(Acting as an Security Agent) |
Credit Risk Control, Narain
Manzil, 23 Barakhamba |
B23432271 |
|
8 |
10281391 |
06/05/2013 * |
400,000,000.00 |
ICICI BANK LIMITED |
Landmarkrace Cource Circle,
Alkapuri, Baroda, Gujarat - 390015, India |
B74726647 |
|
9 |
10248680 |
16/03/2011 * |
500,000,000.00 |
STANDARD CHARTERED BANK
(Acting as an Security Agent) |
Credit Risk Control, Narain
Manzil, 23 Barakhamba |
B08608929 |
|
10 |
10217235 |
31/03/2010 |
400,000.00 |
Canara Bank |
Palam Vihar Branch, Palam
Triangle Mall, A- BLOCK, Palam Vihar, Gurgaon, Haryana - 122017, INDIA |
A84190891 |
|
11 |
10217236 |
11/03/2010 |
671,700.00 |
Canara Bank |
Palam Vihar Branch, Palam
Triangle Mall, A- Block, Palam Vihar, Gurgaon, Haryana - 122017, INDIA |
A84191469 |
|
12 |
10185067 |
30/10/2009 |
400,000.00 |
Canara Bank |
Palam Triangle Mall, Palam Vihar
A- Block Branch,Gurgaon, Haryana - 122017, INDIA |
A73206831 |
|
13 |
10185079 |
29/10/2009 |
575,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73209017 |
|
14 |
10185070 |
25/09/2009 |
410,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73207680 |
|
15 |
10185069 |
25/09/2009 |
450,000.00 |
Canara Bank |
Palam Triangle Mall, Palam Vihar
A - Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73207300 |
|
16 |
10185077 |
25/09/2009 |
450,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73208282 |
|
17 |
10185078 |
25/09/2009 |
555,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73208597 |
|
18 |
10185080 |
25/09/2009 |
555,000.00 |
Canara Bank |
Palam Triangle Mall, Palam Vihar
A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A73209215 |
|
19 |
10185204 |
25/09/2009 |
555,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, India |
A73250748 |
|
21 |
10183240 |
11/09/2009 |
590,000.00 |
Canara Bank |
Palam Triangle Mall, Palam
Vihar A- Block Branch, Gurgaon, Haryana - 122017, INDIA |
A72412703 |
|
22 |
10171815 |
12/01/2011 * |
200,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
BARODA, Gujarat - 390015, INDIA |
B05151782 |
|
23 |
10160226 |
21/05/2009 |
150,000,000.00 |
INDUSIND BANK LIMITED |
DR.GOPAL DAS BHAWAN, 28,
BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA |
A63338263 |
|
24 |
10139744 |
14/01/2009 |
7,500,000.00 |
Citibank N.A. |
Jeevan Vihar, 3 Sansad Marg,
New Delhi, Delhi - 110001, INDIA |
A55644587 |
|
25 |
10095776 |
16/06/2009 * |
100,000,000.00 |
STANDARD CHARTERED BANK |
Credit Risk Control, Narain
Manzil, 23 Barakhamba |
A64177306 |
|
26 |
10006610 |
21/02/2006 |
22,500,000.00 |
THE BANK OF TOKYO MITSUBISHI
LIMITED |
Jeevan Vihar ,3, Parliament
Street, New Delhi, Delhi - 110001, India |
A00304337 |
|
27 |
10002841 |
21/02/2006 |
45,000,000.00 |
THE BANK OF TOKYO
MITSUBISHIBANK LIMITED |
JEEVAN VIHAR,3,, PARLIMENT
STREET, NEW DELHI, Delhi - 110001, INDIA |
A00303388 |
|
28 |
90042961 |
01/03/2003 * |
50,000,000.00 |
DISTRICT INDUSTRIES CENTRE |
GURGAON HARYANA, NEW DELHI,
Delhi, INDIA |
- |
|
29 |
90040809 |
27/02/1991 |
30,000,000.00 |
DISTRICT INDUSTRIES CENTRE |
GURGAON HARYANA, NEW DELHI,
Delhi, INDIA |
- |
|
30 |
90040569 |
18/10/2010 * |
100,000,000.00 |
CANARA BANK |
PARLIAMENT STREET, NEW DELHI,
Delhi - 110001, INDIA |
A96467501 |
|
31 |
90040550 |
18/10/2010 * |
45,000,000.00 |
CANARA BANK |
PARLIAMENT STREET, NEW DELHI,
Delhi - 110001, INDI A |
A96467956 |
* Date of charge modification
FIXED ASSETS:
·
Land (Freehold)
·
Land (Leasehold)
·
Building
·
Plant and Equipment
·
Furniture and Fixtures
·
Office Equipments
·
Computer and Computer
Systems
·
Vehicles
·
Vehicle on Finance Lease
·
Technical Knowhow
·
Computer 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.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
YES |
|
--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.