MIRA INFORM REPORT

 

 

Report Date :

04.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SPICER INDIA LIMITED

 

 

Registered Office :

29 Milestone, Pune-Nashik Highway, Village Kuruli, Taluka Khed, Pune – 410 501, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

29.07.1993

 

 

Com. Reg. No.:

11-073227

 

 

Capital Investment / Paid-up Capital :

Rs.978.300 millions

 

 

CIN No.:

[Company Identification No.]

U34300MH1993PLC073227

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNES11424A

 

 

PAN No.:

[Permanent Account No.]

AAECS1869C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is primarily engaged in business of manufacturing of drivetrain products and service parts namely axles, driveshafts and components.

 

 

No. of Employees :

2500 (Approximately)

 

 

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 9280000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject established as Joint Venture between Dana Holding Corporation USA and Anand Automotive Limited.

 

It is a well-established company having fine track record. The company is progressing well. Financial position of the company is good, marked by no external borrowings recorded during 2013. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

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.

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY

 

Name :

Mr. Rupesh

Designation :

Finance Department

Contact No.:

91-2135-301122

Date :

03.01.2014

 

 

LOCATIONS

 

Registered Office :

29 Milestone, Pune-Nashik Highway, Village Kuruli, Taluka Khed, Pune – 410 501, Maharashtra, India

Tel. No.:

91-2135-301100 / 301125/ 301122

91-20-24102501/ 02 / 03/ 04 / 05 / 562501 / 2135-2301125 / 301100

Mobile No. :

91-9623121814 [Mr. Pravin]

Fax No.:

91-2135-301122

91-20-24102516 / 2135-252229/24120516 / 562516 / 2301122 (General office) / 301133 (Axle Office)

E-Mail :

rk.jain@dana.com

krishna.kumar@dana.com

rajarshi.daharwd@dana.com

Website :

www.dana.com

www.spicerindia.com

Location :

Owned

 

 

Corporate Office:

Survey No.24/P and 29/9 Village, Jodalli – 580 114, Karnataka, India

 

 

Factory 1:

Village, Jodalli, Taluka Kalghatgi, District Dharwad, Jodalli - 580 114, Karnataka, India

Tel No:

91-836-2310482/3

Fax No:

91-836-2310481

 

 

Factory 2:

Plot 144, SIPCOT Industrial Comples, Phase – I, Hosur – 635 126, Tamilnadu, India.

Tel No:

91-4344-277026

Fax No:

91-4344-277803

 

 

Factory 3:

Gat No.74/A, Tulja Bhavani Industrial Estate, Near to Additional M.I.D.C. Karandwadi, Satara – 415 004, Maharashtra, India

Tel No:

91-2162-246503/4/6

Fax No:

91-2162-246505

 

 

Factory 4:

622-626, Kuruli, Chakan, Pune – 410 501, Maharashtra, India

Tel No:

91-2135-252228

 

 

Factory :

Also located at:

 

·                     Santnagar, Uttarakhand, India

·                     Hobli Uttarakhand, India

 

 

DIRECTORS

 

AS ON 29.07.2013

 

Name :

Mr. Deepak Chopra

Designation :

Managing Director

Address :

7 and 8, Anfilco Housing Colony, Anand Farm, Palam Gurgaon Road, Gurgaon – 122 016, Haryana, India 

Date of Birth/Age :

15.12.1954

Qualification  :

ACA, ACS

Date of Appointment :

19.01.2009

DIN No.:

00028770

PAN No.:

ACEPC2926R

 

 

Name :

Mr. Deep Chand Anand

Designation :

Director

Address :

No.1, Sri Aurobindo Marg, Hauz Khas, New Delhi - 110 016, India

Date of Birth/Age :

26.08.1933

Date of Appointment :

29.07.1993

DIN No.:

00090123

 

 

Name :

Mr. Robert David Pyle

Designation :

Director appointed in casual vacancy

Address :

No.4, Gao An Road, Xuhui District, Shanghai 200030, China

Date of Birth/Age :

12.12.1966

Qualification  :

Graduate

Date of Appointment :

05.06.2012

DIN No.:

03622775

 

 

Name :

Mr. Mark Emerson Wallace

Designation :

Director appointed in casual vacancy

Address :

790 Broad CT N, Naples FL, 34102, United States of America

Date of Birth/Age :

16.01.1967

Qualification  :

Graduate

Date of Appointment :

16.09.2011

DIN No.:

03645546

 

 

Name :

Mr. Jason Wesley Johnson

Designation :

Director appointed in casual vacancy

Address :

2311 Gibley Park Road, Toledo OH, 43617, United States of America

Date of Birth/Age :

15.03.1972

Date of Appointment :

07.03.2012

DIN No.:

05226025

 

 

Name :

Mr. Saket Sapra

Designation :

Director appointed in casual vacancy

Address :

Hotel Oakwood Premier, 81, Mundhwa, Koregaon Park Annex, Pune – 411 036, Maharashtra, India 

Date of Birth/Age :

14.09.1971

Date of Appointment :

25.06.2013

DIN No.:

05154694

 

 

Name :

Mr. Manoj Rajendra Kolhatkar

Designation :

Director appointed in casual vacancy

Address :

C-8, Kapil Malhar, S.No.184 188, Baner, Pune – 411 045, Maharashtra, India

Date of Birth/Age :

29.07.1968

Date of Appointment :

25.06.2013

DIN No.:

03553983

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajendra Kumar Jain

Designation :

Company Secretary

Address :

R 5, Gulmohar Park, Vishal Nagar, Pimple Nilakh, Chinchwad, Pune – 411 027, Maharashtra, India

Date of Birth/Age :

12.09.1972

Date of Appointment :

28.03.2012

PAN No.:

AEAPJ8408D

 

 

 

 

MAJOR SHAREHOLDERS

 

AS ON 29.07.2013

 

Names of Shareholders

 

 

No. of Shares

Dana World Trade Corporation, USA

 

73274670

Asia Investments Limited, India

 

24555325

Praveshkumar Srivastava

 

1

Chandrakant Somabhai Patel

 

1

K.K. Jaggi

 

1

Deepak R. Chopra

 

1

Charanjit Singh

 

1

Total

 

97830000

 

AS ON 29.07.2013

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

74.90

Bodies corporate

 

25.10

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is primarily engaged in business of manufacturing of drivetrain products and service parts namely axles, driveshafts and components.

 

 

Products :

Item Code No.

 

Product Description

87085000

Axles

87089900

Propeller Shaft Assembly

87089900

Yokes

87089900

Companion Flanges

87089900

Diff-Cases

 

 

Imports :

 

Products :

Raw Materials

Countries :

·         USA

·         UK

 

 

Terms :

 

Selling :

Cash / Credit

 

 

Purchasing :

Cash / Credit

 

 

PRODUCTION STATUS (AS ON 31.03.2011):

 

Particulars

Unit

Installed Capacity

[ 000’Per Annum]

Actual Production**

Yokes

Nos.

3500

1951297

Propeller Shaft Assembly

Nos.

975

588279

Axles

Nos.

375

264848

Companion Flanges

Nos.

1980

1311073

Diff-Cases

Nos.

420

288840

 

Notes: * *Actual Production includes items used as components in own production.

 

 

GENERAL INFORMATION

 

Suppliers :

·         Mungi Engineers Private Limited

 

 

Customers :

Wholesalers and Retailers

 

·         Ashok Leyland Limited

·         Asia Motor Works Limited

·         Bharat Earth Movers Limited

·         Caterpillar India

·         Force Motors

·         Ford

·         General Motors India

·         International Cars and Motors Limited

·         Man Force Trucks Private Limited

·         Mahindra and Mahindra

·         Tata Motors

 

 

No. of Employees :

2500 (Approximately)

 

 

Bankers :

·         Deutsche Bank, Hazarimal Somani Marg, Fort, Mumbai – 400 001, Maharashtra, India

·         Bank of Nova Scotia, Mittal Towers, 'B' Wing, Nariman Point, Mumbai - 400 021, Maharashtra, India

·         Standard Charted Grindlays Bank Limited

·         HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India (Tel. No.: 91-20-61606161/ 66034332)

·         Yes Bank

·         Kotak Mahindra Bank Limited

 

 

Facilities :

Secured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Loans repayable on demand from banks

0.000 (a)

152.653 (b)

Total

0.000

152.653

 

Notes:

 

(a) The loan has been repaid during the year. Amount only for rounding off.

 

(b) Buyer's Import Credit for Capital Goods are secured by hypothecation of specific Plant and Machinery procured using the said loan.

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

Muttha Towers, 5th Floor, Suite No. 8, Airport Road, Yerawada, Pune – 411 006, Maharashtra, India

PAN No.:

AAEFP3641G

 

 

Holding Company :

Dana World Trade Corporation, United States

 

 

Ultimate Holding Company:

Dana Automotive Systems Group, LLC, United States

 

 

Fellow Subsidiary Companies :

·         C.A. Danaven

·         Dana Australia Pty. Limited, Australia

·         Dana Austria GmbH, Austria

·         Dana Global Products, Inc., United States

·         Dana GmbH, Germany

·         Dana Heavy Vehicle Systems Group, LLC

·         Dana India Private Limited, India (CIN No.: U51909MH2000PTC124685)

·         Dana Industrias Ltda., Brazil

·         Dana Italia, SpA, Italy

·         Dana Japan, Limited, Japan

·         Dana Spicer (Thailand) Limited, Thailand

·         Dana Spicer Europe Limited, United Kingdom

·         Dana Spicer Industria e Comercio Autopecas Ltda., Brazil

·         Dana UK Driveshaft Limited, United Kingdom

·         Dana de México Corporacion, S. de R.L. de C.V., Mexico

·         Fujian Spicer Drivetrain System Co., Limited, China

·         Gearmax (Pty) Limited, South Africa

·         Industria de Ejes y Transmissiones S.A., Colombia

·         ROC Spicer, Limited, Taiwan, Province of China

·         Spicer Axle Australia Pty Limited, Australia

·         Spicer Ejes Pesados S.A., Argentina

·         Spicer France S.A.S., France

·         Spicer Gelenkwellenbau GmbH, Germany

·         Spicer Nordiska Kardan AB, Sweden

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :

Asia Investments Private Limited, India (CIN No.: U65993MH1966PTC206200)

 

 

CAPITAL STRUCTURE

 

AS ON 29.07.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

109000000

Equity Shares

Rs.10/- each

Rs.1090.000 millions

100000

Preference Shares

Rs.100/- each

Rs.10.000 millions

 

Total

 

Rs.1100.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

97830000

Equity Shares

Rs.10/- each

Rs.978.300 millions

 

 

 

 

 

 


 

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

978.300

978.300

978.300

(b) Reserves & Surplus

1341.723

1065.641

829.362

(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)

2320.023

2043.941

1807.662

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.000

152.653

107.268

(b) Deferred tax liabilities (Net)

88.324

20.665

6.682

(c) Other long term liabilities

7.003

6.992

1.565

(d) Long-term provisions

10.859

10.201

8.946

Total Non-current Liabilities (3)

106.186

190.511

124.461

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

2480.579

2231.418

2027.089

(c) Other current liabilities

249.118

198.468

144.534

(d) Short-term provisions

361.600

375.256

162.902

Total Current Liabilities (4)

3091.297

2805.142

2334.525

 

 

 

 

TOTAL

5517.506

5039.594

4266.648

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1739.463

1612.275

1024.402

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

53.183

127.145

327.446

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.007

0.007

0.012

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

300.754

257.283

341.469

(e) Other Non-current assets

6.788

9.192

67.592

Total Non-Current Assets

2100.195

2005.902

1760.921

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

937.775

929.669

842.084

(c) Trade receivables

1485.939

1403.044

1141.922

(d) Cash and cash equivalents

714.572

450.165

322.402

(e) Short-term loans and advances

256.000

246.588

197.395

(f) Other current assets

23.025

4.226

1.924

Total Current Assets

3417.311

3033.692

2505.727

 

 

 

 

TOTAL

5517.506

5039.594

4266.648

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

11819.631

10438.478

8582.521

 

 

Other Income

23.207

26.636

104.967

 

 

TOTAL                                     (A)

11842.838

10465.114

8687.488

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

8175.230

7347.130

6326.073

 

 

Purchases of stock-in-trade

39.494

6.756

0.000

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

29.252

(15.716)

(137.393)

 

 

Employee benefit expense

592.456

488.204

360.510

 

 

Other expenses

1759.466

1674.437

1414.632

 

 

TOTAL                                     (B)

10595.898

9500.811

7963.822

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

1246.940

964.303

723.666

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

8.757

14.479

4.981

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

1238.183

949.824

718.685

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

193.610

152.344

109.815

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

1044.573

797.480

608.870

 

 

 

 

 

Less

TAX                                                                  (H)

311.799

220.100

75.184

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

732.774

577.380

533.686

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

648.000

470.000

503.000

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

73.000

58.000

53.000

 

 

Dividend on Equity

392.000

294.000

440.000

 

 

Dividend Distribution Tax

66.000

48.000

73.000

 

BALANCE CARRIED TO THE B/S

827.000

648.000

470.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

2072.000

1860.000

1511.000

 

TOTAL EARNINGS

2072.000

1860.000

1511.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

NA

625.865

 

 

Stores & Spares

NA

NA

15.440

 

 

Capital Goods

NA

NA

210.007

 

TOTAL IMPORTS

NA

NA

851.312

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

7.49

5.90

5.45

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

6.19
5.52
6.14

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

8.84
7.64
7.09

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

19.12
16.23
15.46

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.45
0.39
0.34

 

 

 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00
0.07
0.06

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

1.11
1.08
1.07

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Current Maturities of Long Term Debt: Not Available

 

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

Yes

10]

Designation of contact person

Yes

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

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

No

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

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10027654

31/07/2009 *

525,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA

A68980234

2

90084549

18/11/1996

70,000,000.00

DEUTSCHE BANK

HAZARIMAL SOMANI MARG, FORT, BOMBAY, MAHARASHTRA
- 400001, INDIA

-

3

90084503

02/08/1996

50,000,000.00

ANZ GRINDLAYS BANK

P.I.C. FORT BRANCH, MUMBAI, MAHARASHTRA, INDIA

-

4

90084495

24/07/1996

100,000,000.00

ANZ GRINDLAYS BANK

P.I.C. FORT BRANCH, MUMBAI, MAHARASHTRA, INDIA

-

5

90090308

14/05/1996

50,000,000.00

THE BANK OF NOVA SCOTIA

MITTAL TOWERS; 'B' WING;, NARIMAN POINT, MUMBAI,
MAHARASHTRA - 400021, INDIA

-

 

* Date of charge modification

 

GENERAL INFORMATION:

 

The Company was established in 1993 and is primarily engaged in business of manufacturing of drivetrain products and service parts namely axles, driveshafts and components there of which constitute heart of the transmission system. The Company has manufacturing plants in India and sells in both domestic and export segment.

 

INDIAN ECONOMY

 

The Indian GDP grew around 5.0% after having grown at 7.0% in F.Y. 2011-12 and 8.4% in F.Y. 2010-11. The Industrial sector witnessed a growth of 3.1% as against 3.6% in previous year. Growth in Service sector continues to broad based 6.6% as against 9.4% in previous year. Agricultural sector grew by 1.8% against 2.5% in previous years. The Indian rupee has depreciated by14% against the US $ in 2012-13.

 

AUTOMOTIVE INDUSTRY

 

The overall auto industry recorded a growth of around 2.6% in the financial year 2012-13, as compared to 14.0% in previous year. Utility Vehicle, LCV and M&HCV segments in which the Company has presence, registered an increase of 14.8% compared to 20.0% in previous year. While Utility Vehicle and LCV segments recorded an increase of 52% and 14% respectively, M&HCV segment recorded de-growth of 23% in comparison to the previous year.

 

PERFORMANCE ANALYSIS

 

During the financial year, the Company achieved the highest ever sales turnover of Rs.11820.000 millions, as compared to Rs.10438.000 millions in the previous year registering a growth of 13.2 %. Domestic sales recorded an increase of 13.3% during the financial year aligned to overall market in its business segment and export sales were up by 11.1% as compared to the previous year. The Company continues to be a market leader in its domestic product range.

 

Despite major challenges of global market recession, higher input costs and increase in conversion costs due to high inflation, the Company has been successful in improving its profitability and cash flow through effective cost control and improvement in conversion cost and working capital management. Consequently, during the financial year, the Profit before Tax and Profit after Tax were at Rs.1044.000 millions and Rs.710.000 millions respectively, as compared to Rs.798.000 millions and Rs.578.000 millions respectively in the previous year.

 

Maximizing stakeholders value, managing ever changing auto market dynamics and cost factors and successfully sustaining the margins shall be the key focus of the Company and the Company is committed and well poised to continue all efforts in this direction.

 

The Company continues to measure and improve operational excellence through KPI, DOS, 5S, Reduction in conversion cost and COPQ (Cost of Poor Quality) across all its plants. The manufacturing work culture imbibe continues in the company. Productivity improvement process through Dana Operating System and (DOS) and Anand HEIJUNKA Production System (AHPS) are implemented and regularly monitored as a key KPI at all manufacturing locations. These KPIs are integrated in to the Employees Performance Measurement System to sustain operational excellence and continuous improvement.

 

The Company has continued to take various initiatives and to focus its efforts towards quality/Safety/Productivity improvement, thereby targeting to achieve zero PPM and Accidents, while assuring that their processes are cost effective.

 

Supply Chain management is the key factor for the Company’s success. Visionary small and medium enterprises (VSME) initiatives have been extended to the suppliers and vendors of the Company, to ensure manufacturing excellence at suppliers end towards improving quality, cost and delivery. The Company is constantly exploring the supply chain area to enter into strategic alliances with key suppliers to ensure uninterrupted supplies of key raw parts and components. The Company is committed and confident to improve supply chain management, quality, productivity and effective utilization of capacity, while ensuring the growth of key suppliers.

 

Light Axle

 

During the financial year, the Company’s light axle sales were at Rs.7644.000 millions, as compared to Rs.5964.000 millions in previous year, thus recording an increase of 28.2%, with the domestic sales and exports increasing @ 28.8% and 25.3% respectively based on the auto industry recovery both in the domestic and export markets.

 

The Company has been successful in renewing GM Tavera contract. The Company is in advanced state of discussion with customer M &M for U301 program and Maruti Suzuki Y9T program to win the business in coming financial year to grow beyond market growth and to maintain and continue this growth momentum.

 

During financial year 2012-13, Pantnagar plant produced 201,075 Axles and record 306,909 Drive shafts for Tata Ace vehicle. The State of the art Gear Manufacturing plant at Chakan facility has completed one year of operation.

 

The Plant has achieved 90% capacity utilization in second half of the year.

 

Drive Shaft

 

During the financial year, Drive Shafts sales were at Rs.4074.000 millions, as compared to Rs.4400.000 millions in the previous year, thus registering de-growth of 7.4%. Domestic business was affected by de-growth of 23% in the M&HCV segment. Export sales were decreased by 9.5% as compared to previous year due to recession in the European market.

 

The Company has proactively started working on innovative product aimed at light weighting and improved torque capacity. These products will help the company to win new business and improve market share in the domestic OEM segment.

 

The Company has taken initiative to re-energize Lucknow plant in line with company strategy to co-locate with customer. The Company continues its efforts in expanding after-market sales and registered growth @ 17.4% in 2012-13.

 

 

TRADE REFERENCES

 

·         Mungi Engineers Private Limited

·         Tata Motors

 

 

Fixed Assets:

Tangible Assets

·         Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Office Equipments

·         Computers

·         Vehicles

Intangible Assets

·         Computer Software

 

 

 

 

 

WEBSITE DETAILS:

 

PRESS RELEASES/ NEWS:

 

DANA SUPPLYING HIGH-PERFORMANCE SPICER® AXLES FOR MAHINDRA AND MAHINDRA'S NEW VEHICLE PLATFORM

 

MAUMEE, Ohio, Oct. 22, 2013 /PRNewswire/ -- Dana Holding Corporation (NYSE: DAN) announced today that it is expanding its business relationship with Mahindra and Mahindra Limited by supplying it with efficient, lightweight Spicer® axles with AdvanTEK® gears for the company's new platform of sport-utility vehicles and small trucks.

 

The proven and reliable banjo-style Spicer Model 180 axles are engineered to deliver enhanced efficiency and fuel economy through lower hypoid offsets. Designed with Dana's proprietary assembly technology, Spicer axles with AdvanTEK gearing are rugged and lightweight, offering improved power density and best-in-class noise, vibration, and harshness performance.

 

"Dana's expertly engineered axles help meet Mahindra and Mahindra's demand for an efficient and lightweight product for its new platform," said Mark Wallace, president of Dana Light Vehicle Driveline Technologies.  "For more than a decade, Dana's relationship with Mahindra and Mahindra has continued to grow as we continue to bring advanced technologies and vehicles to the Indian market."

 

With production expected to begin mid-2015, the axles will be manufactured in Chakan, India, by Spicer® India Limited, a majority-owned joint-venture with Anand Automotive Systems.  The Chakan facility is a leading supplier of axles, drivetrain products, and genuine service parts, providing complete system solutions to OEMs and the aftermarket in India.

 

Recently, Dana was honored by Mahindra and Mahindra as the 2012 Best Supplier in the vehicle proprietary category.  The award recognized Dana for consistency in quality and delivery and also extended excellent support during development of rear and front axles for the Quanto.  Last year, Dana also introduced Spicer rear axles with AdvanTEK gear sets for Xylo.

 

About Dana Holding Corporation


Dana is a world-leading supplier of driveline, sealing, and thermal-management technologies that improve the efficiency and performance of passenger, commercial, and off-highway vehicles with both conventional and alternative-energy powertrains.  The company's global network of engineering, manufacturing, and distribution facilities provides original-equipment and aftermarket customers with local product and service support. Based in Maumee, Ohio, Dana employs more than 23,000 people in 26 countries and reported 2012 sales of $7.2 billion.

 

About Spicer India Limited


Spicer India Limited, established as joint venture between Dana Holding Corporation and Anand Group in 1993, is a leading supplier of axles, driveshafts (also known as propeller shafts), and drivetrain products, as well as genuine service parts. The company provides complete system solutions to original equipment manufacturers and related aftermarket in India, and also has been the major exporter to Dana.  Spicer India Limited products are marketed through a network of dealers and retailers across the country in aftermarket.

 

 

 

SPICER INDIA OPENS ALL-NEW PLANT IN LUCKNOW

 

Lucknow, November 15, 2013: Spicer India has inaugurated its new facility, in Lucknow, its sixth plant.

 

Lucknow, November 15, 2013: Spicer India has inaugurated its new facility, in Lucknow, its sixth plant. The new unit will provide just-in-time suppliers of propeller shafts to Tata Motors’ Lucknow plant.


M Venkatram, senior vice-president, Purchasing and Supply Chain, Tata Motors, who was the chief guest for the occasion, lit the lamp along with other dignitaries including, Mrs. Anjali Singh, chairperson, Anand Supervisory Board, Robert Pyle, president, Asia Pacific, DANA Holding Corporation; Deepak Chopra, CEO, Anand Automotive; and Arul Kumar, chief operating officer, Spicer India.


The new plant will supply propeller shafts to Tata Motors’ Lucknow and Jamshedpur plants. The set-up of this dedicated facility is in line with the expansion of Tata Motors’ Lucknow plant. Spicer India currently supplies drive shafts for buses and trucks produced by Tata Motors’ Lucknow and Jamshedpur, from its Satara plant. The new plant will help reduce transportation costs and other logistics involved, which Spicer India says are being passed back to the customer.


“Due to the current recessionary market, Spicer India has limited the capacity of the plant to just half of the intended capacity. Even with this, it can service twice the current requirement of both the Lucknow and Jamshedpur plants of Tata Motors. Further, with a minimal investment, the capacity can be expanded to 180,000 shafts per year (50 percent more) in a short span of time, still leaving a possibility of further expansion to 250,000 shafts.

“Dana and the Anand Group firmly believe in partnering with their customers. We would like to be not only where the customers are today but also be present where the customers are likely to be tomorrow, in terms of technology, capacity and location”, said Arul Kumar, chief operating officer, Spicer India.


Spicer India will also replace its existing drive shaft models to a more advanced ‘Compact’" models, which will deliver a better torque-to-weight ratio with also a price advantage to Tata Motors from the new Lucknow plant.


“The new plant set up by Spicer at Lucknow would ensure delivery of our products on ‘Just In Time’ basis to Tata Motors Lucknow plant and at the same time maintaining high quality levels and incorporating new technology”, said Mrs Anjali Singh, chairperson, Anand Supervisory Board.


Robert Pyle, president, Asia Pacific, DANA Holding Corporation, commented: “The opening of Lucknow plant marks another milestone in our collaboration with the Anand Group and will help Spicer India enhance its reputation as a supplier that is committed to investing and growing to support the needs of its customers. I am confident that this plant will become a benchmark for driveshaft manufacturing in India.”

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.41

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

SMN


 

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

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

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

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.