MIRA
INFORM REPORT
|
Report Date : |
10.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
L G BALAKRISHNAN AND BROS LIMITED |
|
|
|
|
Registered
Office : |
6/16/13, |
|
|
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
24.03.1956 |
|
|
|
|
Com. Reg. No.: |
18-000257 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 78.481 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29191TZ1956PLC000257 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Automotive and Industrial Chains. |
|
|
|
|
No. of Employees
: |
3950 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
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|
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|
Comments : |
Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 |
Term loans: “A” |
|
Rating Explanation |
Have adequate degree of safety and carry low
credit risk. |
|
Date |
30.07.2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based facilities: “A1” |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
30.07.2012 |
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 : |
6/16/13, Krishnarayapuram Road, Ganapathy, Coimbatore-641006,
Tamilnadu, India |
|
Tel. No.: |
91-422-2532325 |
|
Fax No.: |
91-422-2532333 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Annur Ganesapuram, Kattampatti Post, Annur, Coimbatore – 641107, Tamilnadu,
India Mysore 24, Industrial Suburb, III Stage, Mysore South, Mysore – 570008,
Tamilnadu, India Vaiyampalayam Kottaipalayam Post, Coimbatore – 641110, Tamilnadu, India Karur Mochakottampalayam, Viswanathapuri Post, Karur – 639002, Tamilnadu,
India Bangalore A-4, Bommasandra Industrial Area, Anekal Taluka, Bangalore – 560009,
Karnataka, India Pongalur Sathy Road, Pongular Post, Coimbatore – 638459, Tamilnadu, India Kottaipalayam S. F. No. 195, Pillaiyar Kovil Street, Near Power House, Kottaipalayam
Post, Coimbatore – 641110 Ganapathy 6/16/13, Krishnarayapuram Road, Ganapathy, Coimbatore – 641006 Gudalore Vedasenthur – Taluka, Dindugal District - 624620 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. B. Vijayakumar |
|
Designation : |
Chairman Cum Managing Director |
|
|
|
|
Name : |
Mr. P. Prabakaran |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. P. Balasubramanian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Sivakumar |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. V. Govindarajulu |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. P. Shanmugasundaram |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mrs. Rajsri Vijayakumar |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. V. Rajvirdhan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Dr. T. Balaji |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R. Vidhya Shankar |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. N. Rengaraj |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. M. Lakshmi Kanth Joshi |
|
Designation : |
General Manager cum Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2921950 |
37.23 |
|
|
664998 |
8.47 |
|
|
3586948 |
45.70 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
3586948 |
45.70 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1602 |
0.02 |
|
|
547631 |
6.98 |
|
|
549233 |
7.00 |
|
|
|
|
|
|
244153 |
3.11 |
|
|
|
|
|
|
2269886 |
28.92 |
|
|
942180 |
12.01 |
|
|
255704 |
3.26 |
|
|
39653 |
0.51 |
|
|
2404 |
0.03 |
|
|
47438 |
0.60 |
|
|
166209 |
2.12 |
|
|
3711923 |
47.30 |
|
Total Public
shareholding (B) |
4261156 |
54.30 |
|
Total (A)+(B) |
7848104 |
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) |
7848104 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Automotive and Industrial Chains. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity @ |
Actual
Production |
|
Automotive chains |
Nos. |
36000000 |
21899000 |
|
Fine blanked products |
Strokes. |
74136000 |
55785000 |
|
Rubber Belts |
Nos. |
1800000 |
713000 |
|
Bosch components |
Nos. |
1560000 |
1266000 |
Note: @ Installed Capacity is as certified by the management.
GENERAL INFORMATION
|
No. of Employees : |
3950 (Approximately) |
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Bankers : |
· Andhra Bank · Axis Bank Limited · BNP Paribas · Corporation Bank · HDFC Bank Limited · IndusInd Bank Limited · ICICI Bank Limited · IDBI Bank Limited · The Bank of Nova Scotia · Union Bank of India · Yes Bank Limited |
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Shanmuga Mandram, 41 Race Course, Coimbatore
641018 |
|
Tel. No.: |
91-422-4392801 |
|
|
|
|
Cost Auditor: |
|
|
Name : |
G.L. Sankaran Chartered Accountants |
|
Address : |
82, EB Colony, Vadavalli, Coimbatore – 641
041 |
|
Tel. No.: |
91-422-2400767 |
|
|
|
|
Associates: |
Renold Chain India Private Limited |
|
|
|
|
Subsidiary Company:
|
· BCW V Tech India Private Limited - 100% LGB USA, INC |
|
|
|
|
Fellow Subsidiary
Company: |
· GFM Corporation |
|
|
|
|
Enterprise over
which the Company may exercise significant influence: |
· Elgi Automotive Services (Private) Limited · LGB Fuel Systems Private Limited · L.G.B. Auto Products (Private) Limited · LGB Forge Limited · LG Farm Products (Private) Limited · Rolon Fine Blank Limited · L.G. Balakrishnan and Bros – Karur · LGB Rolon Chain Limited · LG Sports Limited · Tribe Investments and Services Private Limited · Super Speeds Private Limited · South Western Engineering India Limited · Super Transports Private Limited · Silent Chain India Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs. 120.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
|
|
7848104 |
Equity Shares |
Rs.10/- each |
Rs.78.481
Millions |
|
|
|
|
|
|
|
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting year:
|
Particulars |
Opening balance |
Fresh Issue |
Bonus/ ESOP |
Conversion/ Buyback |
Closing balance |
|
Equity Shares with voting rights |
|
|
|
|
|
|
Year ended 31st March, 2013 |
|
|
|
|
|
|
Number of shares |
7848104 |
- |
- |
- |
7848104 |
|
Amount (Rs. in lakhs) |
78.481 |
- |
- |
- |
78.481 |
|
Year ended 31st March, 2012 |
|
|
|
|
|
|
Number of shares |
7848104 |
- |
- |
- |
7848104 |
|
Amount (Rs. in lakhs) |
78.481 |
- |
- |
- |
78.481 |
Details of shares
held by each shareholder holding more than 5% shares
|
Particulars |
As on 31.03.2013 |
|
|
|
No. of Shares held |
% of Holding |
|
Equity Shares with voting rights |
|
|
|
B. Vijayakumar |
1003000 |
12.78 |
|
V. Rajvirdhan |
976293 |
12.44 |
|
International Finance Corporation |
551069 |
7.02 |
|
L.G.B. Educational Foundation |
481564 |
6.14 |
|
V. Rajsri |
444788 |
5.66 |
|
Elgi Automotive Services (Private) Limited |
410000 |
5.22 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
78.481 |
78.481 |
78.481 |
|
(b) Reserves & Surplus |
2495.678 |
2227.435 |
1889.572 |
|
(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) |
2574.159 |
2305.916 |
1968.053 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
825.462 |
570.609 |
738.096 |
|
(b) Deferred tax liabilities (Net) |
182.954 |
177.217 |
186.749 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
1008.416 |
747.826 |
924.845 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
413.897 |
561.724 |
182.364 |
|
(b)
Trade payables |
1104.041 |
1079.640 |
1038.789 |
|
(c)
Other current liabilities |
704.311 |
670.832 |
563.823 |
|
(d) Short-term
provisions |
18.364 |
100.334 |
113.645 |
|
Total Current
Liabilities (4) |
2240.613 |
2412.530 |
1898.621 |
|
|
|
|
|
|
TOTAL |
5823.188 |
5466.272 |
4791.519 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2001.700 |
1877.018 |
1840.820 |
|
(ii)
Intangible Assets |
28.725 |
31.117 |
30.644 |
|
(iii)
Capital work-in-progress |
34.928 |
32.752 |
44.325 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
339.988 |
165.063 |
165.063 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
209.263 |
128.618 |
137.136 |
|
(e) Other
Non-current assets |
0.209 |
0.810 |
0.862 |
|
Total Non-Current
Assets |
2614.813 |
2235.378 |
2218.850 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
4.600 |
0.000 |
0.000 |
|
(b)
Inventories |
1833.696 |
1913.308 |
1529.133 |
|
(c)
Trade receivables |
1101.075 |
1049.809 |
847.890 |
|
(d) Cash
and cash equivalents |
58.341 |
52.229 |
48.215 |
|
(e)
Short-term loans and advances |
186.417 |
186.695 |
125.429 |
|
(f)
Other current assets |
24.246 |
28.853 |
22.002 |
|
Total
Current Assets |
3208.375 |
3230.894 |
2572.669 |
|
|
|
|
|
|
TOTAL |
5823.188 |
5466.272 |
4791.519 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9366.247 |
9051.274 |
7095.204 |
|
|
|
Other Income |
40.031 |
17.890 |
21.883 |
|
|
|
TOTAL (A) |
9406.278 |
9069.164 |
7117.087 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3589.256 |
3918.388 |
2838.132 |
|
|
|
Purchases of stock-in-trade |
1338.037 |
1246.032 |
1037.863 |
|
|
|
Changes in inventories of finished goods, wip and stock-in-trade |
99.021 |
(341.513) |
(208.823) |
|
|
|
Employee benefits expense |
964.833 |
866.405 |
657.768 |
|
|
|
Other expenses |
2477.138 |
2340.639 |
1912.690 |
|
|
|
TOTAL (B) |
8468.285 |
8029.951 |
6237.630 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
937.993 |
1039.213 |
879.457 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
224.752 |
174.364 |
152.042 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
713.241 |
864.849 |
727.415 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
291.122 |
283.230 |
254.457 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
422.119 |
581.619 |
472.958 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
85.346 |
146.422 |
14.908 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
336.773 |
435.197 |
458.050 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
300.482 |
215.620 |
148.783 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
250.000 |
300.000 |
|
|
|
Dividend |
65.863 |
86.330 |
78.481 |
|
|
|
Tax on Dividend |
2.668 |
14.005 |
12.732 |
|
|
BALANCE CARRIED
TO THE B/S |
318.724 |
300.482 |
215.620 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods at FOB value |
753.572 |
623.566 |
478.443 |
|
|
TOTAL EARNINGS |
753.572 |
623.566 |
478.443 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
587.010 |
933.364 |
660.485 |
|
|
|
Stores & Spares |
53.528 |
31.089 |
39.806 |
|
|
|
Capital Goods |
56.674 |
54.884 |
243.355 |
|
|
TOTAL IMPORTS |
697.212 |
1019.337 |
943.646 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
42.91 |
55.45 |
58.36 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.59 |
4.80 |
6.43 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.51 |
6.42 |
6.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.75 |
11.03 |
10.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.25 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.48 |
0.49 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.43 |
1.33 |
1.36 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
-- |
|
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 |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
From other parties |
10.600 |
14.620 |
|
From related parties |
69.900 |
85.275 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Loan repayable on demand |
2.333 |
0.000 |
|
From Financial Institutions |
50.000 |
0.000 |
|
Loan from related parties |
24.000 |
26.600 |
|
Loan from Directors |
19.100 |
20.300 |
|
Loan from Inter corporates |
30.200 |
26.900 |
|
Total |
206.133 |
173.695 |
PERFORMANCE AND
OPERATIONS
The Company has been showing consistently good financial performance both in terms of turnover and profitability. During the year, the Gross Revenue from operations of the Company on standalone basis has increased by 3.72 % at Rs. 337.100 millions as compared to Rs. 9069.200 millions during previous financial year 2011-12. The Profit before Tax on standalone basis stood at Rs. 422.119 millions as compared to Rs. 581.619 millions during previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
Indian auto components industry has been witnessing a moderation in its revenue growth since the beginning of this fiscal following the deceleration in sales volume growth across all automobile segments. The automobile sector is cyclical and dependent on the growth of the economy and improvement in infrastructure. Today auto component manufacturers are increasingly complying with the internationally accepted quality standards. Product quality, cost and timely delivery are the key factors in the growth of this industry. Factors like increased public spending, favorable interest rates and general improvement in per capita income point towards higher demand for automobiles in the future.
OPPORTUNITIES
India is expected to become the third largest automobile market in the world. The rapid improvement in infrastructure, huge domestic market, increasing purchasing power, established financial market etc have made India a favorable destination.
The fortunes of the auto ancillary sector are closely linked to those of the auto sector. Demand swings in any of the segments (cars, two-wheelers, commercial vehicles) have an impact on auto ancillary demand. Demand is derived from original equipment manufacturers (OEM) as well as the replacement market.
Given the healthy growth prospects of the Indian automobile industry over the medium term. The Company has been strenuously acting now to capture the next wave of growth with low-cost and adequate production capacity with world class technology.
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Contingent
liabilities: |
31.03.2013 |
|
Claims against the Company, not acknowledged as debt – disputed tax liability |
98.287 |
|
Guarantee given by Bankers and outstanding |
2.105 |
|
Corporate guarantee given for others |
715.000 |
|
Estimated customs duty obligation on imports, if corresponding export obligation is not satisfied. |
138.606 |
STATEMENT OF
STANDALONE AUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31-12-2013
(Rs. In Millions)
|
PARTICULAR |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
|
|
|
(a)
Net Sales / Income from operations |
2406.078 |
2343.039 |
6841.883 |
|
(b)
Other Operating Income |
138.661 |
153.130 |
432.442 |
|
Total
Income from operations |
2544.739 |
2496.169 |
7274.325 |
|
Expenses |
|
|
|
|
a)
Cost of materials consumed |
1071.742 |
980.462 |
2952.448 |
|
b)
Purchase of stock-in-trade |
170.296 |
196.126 |
595.215 |
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(8.134) |
69.336 |
44.946 |
|
d) Employee benefits expense |
315.445 |
263.541 |
826.914 |
|
e)
Depreciation and amortisation expense |
78.767 |
77.818 |
231.905 |
|
f)
Other and expense |
694.398 |
682.538 |
2018.420 |
|
Total
Expense |
2322.514 |
2269.821 |
6669.848 |
|
Profit from operations before
other income, interest and exceptional Items |
222.225 |
226.342 |
604.477 |
|
Other
income |
34.828 |
5.484 |
43.215 |
|
Profit from ordinary
activities before Finance Cost and exceptional Items |
257.053 |
231.826 |
647.692 |
|
Finance
Cost |
39.124 |
42.602 |
129.681 |
|
Profit from
ordinary activities before Finance Cost and exceptional Items |
217.929 |
189.224 |
518.011 |
|
Exceptional
Items |
-- |
-- |
-- |
|
Profit (+)/Loss(-) from Ordinary Activities before tax |
217.929 |
189.224 |
518.011 |
|
Tax
expense |
47.802 |
42.172 |
112.506 |
|
Net Profit (+)/Loss(-) from Ordinary Activities after tax |
170.127 |
147.052 |
405.505 |
|
Extraordinary items (Net of
tax expenses) |
-- |
-- |
-- |
|
Net Profit (+) / Loss (-) for
the year period |
170.127 |
147.052 |
405.505 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
78.481 |
78.481 |
78.481 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
|
|
|
|
Earnings
per share (EPS) |
|
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
21.68* |
18.74* |
51.67* |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
21.68* |
18.74* |
51.67* |
|
* not annualised |
|
|
|
|
See accompanying notes to the
financial results |
|
|
|
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
Public
shareholding |
|
|
|
|
Number of shares |
4261156 |
4261156 |
4261156 |
|
Percentage of shareholding |
54.30% |
54.30% |
54.30% |
|
Promoters
and Promoters group Shareholding- |
|
|
|
|
a)
Pledged /Encumbered |
-- |
-- |
-- |
|
Number
of shares |
-- |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
-- |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
Number
of shares |
3586948 |
3586948 |
3586948 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
Percentage
of shares (as a % of total share capital of the company) |
45.70% |
45.70% |
45.70% |
|
INVESTOR
COMPLAINTS |
As on 31.12.2013 |
|
Pending
at the beginning of the quarter |
Nil |
|
Received
during the quarter |
Nil |
|
Disposed
of during the quarter |
Nil |
|
Remaining
unresolved at the end of the quarter |
Nil |
SEGMENTWISE REVENUE, RESULTS
AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
|
PARTICULAR |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
|
|
|
SEGMENT REVENUE |
|
|
|
|
NET SALE /
INCOME FROM OPERATIONS |
|
|
|
|
Transmission |
1909.336 |
1805.738 |
5303.426 |
|
Metal Forming |
419.251 |
419.703 |
1198.626 |
|
Other |
216.152 |
270.722 |
772.273 |
|
Total |
2544.739 |
2496.163 |
7274.325 |
|
|
|
|
|
|
Less: Inter segment revenue |
-- |
-- |
-- |
|
Net sales /
income from operations |
2544.739 |
2496.163 |
7274.325 |
|
|
|
|
|
|
SEGMENT RESULTS |
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX AND INTEREST |
|
|
|
|
Transmission |
195.807 |
214.333 |
568.698 |
|
Metal Forming |
47.894 |
42.114 |
128.064 |
|
Other |
13.352 |
(24.621) |
(49.070) |
|
Total |
257.053 |
231.826 |
647.692 |
|
Less: i) Interest |
39.124 |
42.602 |
129.681 |
|
ii) Other Unallocable
expenditure net off |
-- |
-- |
-- |
|
Add: iii) Unallocable income |
|
|
|
|
Total profit /
(Loss) before tax |
217.929 |
189.224 |
518.011 |
|
|
|
|
|
|
CAPITAL EMPLOYED
|
|
|
|
|
Segment Assets –
Segment Liabilities |
|
|
|
|
Transmission |
1583.958 |
1449.660 |
1583.958 |
|
Metal Forming |
1559.446 |
1514.106 |
1559.446 |
|
Other |
814.608 |
709.617 |
814.608 |
|
Unallocated |
(1024.258) |
(909.756) |
(1024.258) |
|
Total |
2933.754 |
2763.627 |
2933.754 |
Note:
The above financial results of the Company for the quarter and nine months ended 31st December, 2013 have been reviewed by the Audit Committee and have been approved by the Board of Directors at its meeting held on 30th January, 2014.
Pursuant to Clause No. 41(1)(e) of the Listing Agreement, the Company has opted to submit Standalone results only.
The standalone financial results of the Company for the quarter and nine months ended 31st December, 2013 have been audited by the Statutory Auditors.
Previous period/year figures have been regrouped/reclassified to make them comparable with those of current period/year.
FIXED ASSETS:
- Land
- Building
- Motor Vehicles
- Plant and
Machinery
- Furniture
Electrical and Fittings
- Office
Equipment
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. 62.31 |
|
|
1 |
Rs. 101.78 |
|
Euro |
1 |
Rs. 84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
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 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.