1. Summary Information
|
Country |
India |
||
|
Company Name |
MRF LIMITED |
Principal Name 1 |
Mr. K.M. Mammen |
|
Status |
Excellent |
Principal Name 2 |
Mr. Arun Mammen |
|
Registration # |
18-004306 |
||
|
Street Address |
New No. 114, (Old
No. 124), Greams Road, Chennai – 600006, Tamilnadu |
||
|
Established Date |
05.11.1960 |
SIC Code |
-- |
|
Telephone# |
91-44-28292777 |
Business Style 1 |
Manufacture |
|
Fax # |
91-44-28295087 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Rubber Products |
|
|
# of employees |
15343 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.42,400,000/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of Promoter and Promoter Group
– 27.33% Public shareholding – 72.67% |
Banking |
State Bank of India |
|
Public Limited Corp. |
No |
Business Period |
54 Years |
|
IPO |
No |
International Ins. |
-- |
|
Public |
No |
Rating |
Aa (80) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
India
|
MRF Corporation Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
21,702,100,000 |
Current Liabilities |
26,168,900,000 |
|
Inventories |
17,952,900,000 |
Long-term Liabilities |
14,286,900,000 |
|
Fixed Assets |
29,695,400,000 |
Other Liabilities |
5,666,200,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
46,122,000,000 |
|
Invest& other Assets |
13,223,000,000 |
Retained Earnings |
36,409,000,000 |
|
|
82,573,400,000 |
Net Worth |
36,451,400,000 |
|
Total Assets |
72,122,700,000 |
Total Liab. & Equity |
82,573,400,000 |
|
Total Assets (Previous Year) |
|
|
|
|
P/L Statement as of |
30.09.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
121,311,600,000 |
Net Profit |
8,022,100,000 |
|
Sales(Previous yr) |
118,701,800,000 |
Net Profit(Prev.yr) |
5,723,600,000 |
MIRA INFORM REPORT
|
Report Date : |
03.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
MRF LIMITED |
|
|
|
|
Registered
Office : |
New No. 114, (Old
No. 124), Greams Road, Chennai – 600006, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.09.2013 |
|
|
|
|
Date of
Incorporation : |
05.11.1960 |
|
|
|
|
Com. Reg. No.: |
18-004306 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.42.400
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L25111TN1960PLC004306 |
|
|
|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
CHEM07088E CHEM06754G CHEM04457F |
|
|
|
|
PAN No.: [Permanent Account
No.] |
AAACM4154G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
|
|
|
|
No. of Employees
: |
15343 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 146000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an India’s largest manufacturer of automotive tyres and
tubes. It is a well-established and reputed company having excellent track
record. The rating reflects MRF’s strong market leadership position in the
domestic tyre industry characterized by presence across all the user segments
with significant market aided by wide distribution network, strong brand
image with diverse product offering. Further rating also reflects strong
liquidity position and decent profitability levels. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7
%in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown
in more than a quarter of a century. The data was below an official estimate of
4.9 % annual growth and compared with 4.5 % in the last fiscal year. However,
the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of
gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7
%, the year before.A sharp fall in gold imports due to restrictions on overseas
purchases and muted import of capital goods helped shrink the current account
deficit.
Online retailer
Flipkart has acquired fashion portal Myntra as it prepares to battle with the
rapidly expanding India arm of the global e-commerce giant Amazon. The company
raised $ 210 million from Russian Investment firm DST Global which has also
invested in companies like Facebook, Twitter and Alibaba Group.
General Motors will
start exporting vehicles from its Talegaon plant near Pune in the second half
of 2014. GM was one of the few global carmakers that was using its India plant
only for the domestic market.
Google has overtaken
Apple as the world’s top brand in terms of value, according to global market
research agency Millward Brown. Google’s brand value shot up 40 % in a year to
$ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.
Infosys lost another
heavy weight when B G Srinivas, a board member put in his papers. He is the
third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the
company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went
on to lead IGate, Balakrishnan joined politics.
Naresh Goyal –
promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the
three months ended March 31, mainly because it has been offering discounts to
passengers to fill planes.
William S Pinckney –
Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in
connection with a complaint against the direct selling firm. This is the second
time that he has been taken into custody. A year, ago the Kerala Police had
arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its
state-owned enterprises to sever links with American consulting firms after the
United States charged five Chinese military officers wih hacking US companies.
China’s action which targets consultancies like McKinsey & Co. and the
Boston Consulting Group, sterns from fears that the first are providing trade
secrets to the US governments.
India has emerged as
a country with some of the highest unregistered businesses in the world.
Indonesia has the maximum number of shadow businesses, says a study of 68
countries by Imperial College Business School in London.
Pfizer has abandoned
its attempt to buy AstraZeneca for nearly $ 118 billion after the latter
refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk |
|
Date |
09.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk |
|
Date |
09.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non-Cooperative (Tel No.: 91-44-28292777)
LOCATIONS
|
Registered Office : |
New No. 114, (Old
no. 124) Greames Road, Chennai – 600 006, Tamilnadu, India |
|
Tel. No.: |
91-44-28292777 |
|
Fax No.: |
91-44-28295087/
28294089 28291844/ 0562 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
Tiruvottiyur, Chennai, |
|
|
|
|
Factory 2: |
Vadavathoor, |
|
|
|
|
Factory 3: |
Usgao, Ponda, |
|
|
|
|
Factory 4: |
Icchiputhur, Arakonam, |
|
|
|
|
Factory 5: |
|
|
|
|
|
Factory 6: |
Sadasivapet, Medak, Andhra Pradesh, India |
|
|
|
|
Factory 7: |
Naranamangalam Village and Post, Kunnam Taluk, Perambalur District, (Near Trichy) Tamilnadu, India |
DIRECTORS
As on 30.09.2013
|
Name : |
Mr. K.M. Mammen |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Arun Mammen |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. K.M. Philip |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Rahul Mammen Mappillai |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Dr. K.C. Mammen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Jacob |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. Sridhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay R. Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
N. Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ranjit I. Jesudasen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.S. Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Salim Joseph Thomas |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jacob Kurian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Meyyappan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Mannath |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Kurian and
Kurian |
|
Designation : |
Legal Advisors |
SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
Individuals /
Hindu Undivided Family |
562175 |
13.26 |
|
Bodies Corporate |
575515 |
13.57 |
|
Sub Total |
1137690 |
26.83 |
|
(2) Foreign |
|
|
|
Individuals
(Non-Residents Individuals / Foreign Individuals) |
21625 |
0.51 |
|
Sub Total |
21625 |
0.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
1159315 |
27.33 |
|
(B) Public Shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds /
UTI |
282189 |
6.65 |
|
Financial
Institutions / Banks |
5124 |
0.12 |
|
Insurance
Companies |
151538 |
3.57 |
|
Foreign
Institutional Investors |
296109 |
6.98 |
|
Sub Total |
734960 |
17.33 |
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
1073564 |
25.31 |
|
Individuals |
|
|
|
|
880409 |
20.76 |
|
|
392895 |
9.26 |
|
Sub Total |
2346868 |
55.34 |
|
Total Public shareholding (B) |
3081828 |
72.67 |
|
Total (A)+(B) |
4241143 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
(1) Promoter and
Promoter Group |
0 |
0.00 |
|
(2) Public |
0 |
0.00 |
|
Sub Total |
0 |
0.00 |
|
Total (A)+(B)+(C) |
4241143 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As on 30.09.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automobile Tyres |
Nos. |
@ |
34300000 |
34771158 |
|
Automobile Tubes |
Nos. |
@ |
33100000 |
31381790 |
|
Tread Rubber |
MT |
7946 |
8943 |
1056 |
|
Pre-cured Treads |
MT |
@ |
24000 |
7683 |
|
Conveyor Belting |
MT |
@ |
3000 |
2042 |
|
Specialty Surface
Coatings |
KL |
@ |
2000 |
1484** |
@ Not Applicable
since delicensed.
+ On 3 shifts per
day basis for 300 days per annum.
** Outsourced
production.
Figures in brackets are in respect of previous year
GENERAL INFORMATION
|
No. of Employees : |
15343 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1 : |
Sastri and Shah Chartered
Accountants |
|
Address : |
Chennai,
Tamilnadu, India |
|
|
|
|
Name 2 : |
M. M. Nissim and
Company Chartered
Accountants |
|
Address : |
Mumbai,
Maharashtra, India |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs.90.000 Millions |
|
100000 |
Taxable, Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
|
Total |
|
Rs.100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4241143 |
Equity Shares |
Rs.10/- each |
Rs.42.400
Millions |
Rights, preferences
and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
|
Comprehensive Investment and Finance Company Private Limited |
422069 |
|
MOWI Private Limited |
507984 |
|
Enam Shares and Securities Private Limited |
266713 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
30.09.2013 |
30.09.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
42.400 |
42.400 |
|
(b) Reserves & Surplus |
|
36,409.000 |
28535.600 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
36,451.400 |
28578.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
9,524.600 |
11027.100 |
|
(b) Deferred tax liabilities (Net) |
|
2,223.100 |
1867.200 |
|
(c) Other long term
liabilities |
|
10,432.300 |
9080.300 |
|
(d) long-term
provisions |
|
752.400 |
872.900 |
|
Total Non-current
Liabilities (3) |
|
22,932.400 |
22847.500 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
4,762.300 |
5287.200 |
|
(b) Trade
payables |
|
10,214.300 |
9394.300 |
|
(c) Other
current liabilities |
|
5,522.300 |
4543.300 |
|
(d) Short-term
provisions |
|
2,690.700 |
1472.400 |
|
Total Current
Liabilities (4) |
|
23,189.600 |
20697.200 |
|
|
|
|
|
|
TOTAL |
|
82,573.400 |
72122.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
29,641.500 |
29078.100 |
|
(ii)
Intangible Assets |
|
53.900 |
59.900 |
|
(iii)
Capital work-in-progress |
|
3,591.200 |
4146.500 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
846.800 |
715.400 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
1,381.200 |
572.300 |
|
(e) Other
Non-current assets |
|
348.900 |
304.600 |
|
Total Non-Current
Assets |
|
35,863.500 |
34876.800 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
8,214.800 |
3531.700 |
|
(b)
Inventories |
|
17,952.900 |
16455.900 |
|
(c) Trade receivables |
|
15,561.400 |
14540.900 |
|
(d) Cash
and cash equivalents |
|
3,308.100 |
611.000 |
|
(e)
Short-term loans and advances |
|
1,451.400 |
2034.200 |
|
(f) Other
current assets |
|
221.300 |
72.200 |
|
Total
Current Assets |
|
46,709.900 |
37245.900 |
|
|
|
|
|
|
TOTAL |
|
82,573.400 |
72122.700 |
|
SOURCES OF FUNDS |
|
|
30.09.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
42.400 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
22935.300 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
22977.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
11688.700 |
|
|
2] Unsecured Loans |
|
|
10759.100 |
|
|
TOTAL BORROWING |
|
|
22447.800 |
|
|
DEFERRED TAX LIABILITIES |
|
|
1418.000 |
|
|
DEFFERED PAYMENT CREDIT |
|
|
404.300 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
47247.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
19713.800 |
|
|
Capital work-in-progress |
|
|
11352.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
726.900 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
15260.200
|
|
|
Sundry Debtors |
|
|
13080.900
|
|
|
Cash & Bank Balances |
|
|
572.400
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
2563.900
|
|
Total
Current Assets |
|
|
31477.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
8375.300
|
|
|
Other Current Liabilities |
|
|
5571.900
|
|
|
Provisions |
|
|
2075.600
|
|
Total
Current Liabilities |
|
|
16022.800
|
|
|
Net Current Assets |
|
|
15454.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
47247.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
121,311.600 |
118701.800 |
97353.400 |
|
|
|
Export Incentives |
0.000 |
0.000 |
78.300 |
|
|
|
Other Income |
290.300 |
320.100 |
253.100 |
|
|
|
TOTAL (A) |
121,601.900 |
119021.900 |
97684.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
78,008.300 |
83442.700 |
71070.700 |
|
|
|
Purchase of Stock-in-Trade |
1,251.300 |
264.800 |
0.000 |
|
|
|
Employee benefits expense |
(267.300) |
5136.900 |
0.000 |
|
|
|
Other expenses |
6,034.900 |
17425.700 |
18313.400 |
|
|
|
Exceptional Item Excess Depreciation reversal in respect of earlier year |
18,618.000 |
0.000 |
(4042.300) |
|
|
|
Changes in Inventories of Finished Goods, Stock-in-process & Stock-in-Trade |
0.000 |
(178.300) |
0.000 |
|
|
|
TOTAL (B) |
103,645.200 |
106091.800 |
85341.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17,956.700 |
12930.100 |
12343.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1,959.400 |
1587.800 |
930.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15,997.300 |
11342.300 |
11412.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3,729.300 |
3011.100 |
2476.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
12,268.000 |
8331.200 |
8936.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4,245.900 |
2607.600 |
2742.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8,022.100 |
5723.600 |
6194.200 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
25.400 |
25.400 |
25.400 |
|
|
|
Final Proposed Dividend |
101.800 |
80.600 |
80.600 |
|
|
|
Tax Thereon |
21.500 |
17.300 |
17.300 |
|
|
|
Debenture Redemption Reserve |
285.200 |
288.000 |
179.400 |
|
|
BALANCE CARRIED
TO THE B/S |
7588.200 |
5312.300 |
5891.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
12237.700 |
12805.500 |
8233.000 |
|
|
|
Freight & Insurance |
81.400 |
0.000 |
0.000 |
|
|
|
Interest |
0.100 |
0.000 |
0.000 |
|
|
|
Others |
10.200 |
12.800 |
3.800 |
|
|
TOTAL EARNINGS |
12329.400 |
12818.300 |
8236.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30377.000 |
31175.700 |
23076.600 |
|
|
|
Components & Spare Parts |
417.900 |
412.400 |
381.700 |
|
|
|
Capital Goods |
868.800 |
1448.200 |
3390.100 |
|
|
TOTAL IMPORTS |
31663.700 |
33036.300 |
26848.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1891.49 |
1349.52 |
1460.50 |
|
QUARTERLY RESULTS
|
Particulars |
|
31.12.2013 (Unaudited) |
31.03.2014 (Unaudited) |
|
|
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
3,2005.700 |
3,2989.100 |
|
Total Expenditure |
|
2,7817.100 |
2,8864.200 |
|
PBIDT (Excl OI) |
|
4188.600 |
4124.900 |
|
Other Income |
|
99.400 |
107.500 |
|
Operating Profit |
|
4288.000 |
423.2.400 |
|
Interest |
|
585.700 |
629.600 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
3702.300 |
3602.800 |
|
Depreciation |
|
993.400 |
1064.100 |
|
Profit Before Tax |
|
2708.900 |
2538.700 |
|
Tax |
|
910.000 |
830.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
1798.900 |
1708.700 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
1798.900 |
1708.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
30.03.2012 |
30.03.2011 |
|
PAT / Total Income |
(%) |
6.60 |
4.81 |
6.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.11 |
7.02 |
9.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.70 |
12.39 |
17.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.34 |
0.29 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.39 |
0.57 |
0.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.01 |
1.80 |
1.46 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
|
30.09.2012 |
30.09.2013 |
|
|
|
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
|
42.400 |
42.400 |
|
Reserves & Surplus |
|
28535.600 |
36409.000 |
|
Net
worth |
|
28578.000 |
36451.400 |
|
|
|
|
|
|
long-term borrowings |
|
11027.100 |
9524.600 |
|
Short term borrowings |
|
5287.200 |
4762.300 |
|
Total
borrowings |
|
16314.300 |
14286.900 |
|
Debt/Equity
ratio |
|
0.571 |
0.392 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
97,353.400 |
118,701.800 |
121,311.600 |
|
|
|
21.929 |
2.199 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
97,353.400 |
118,701.800 |
121,311.600 |
|
Profit |
6,194.200 |
5,723.600 |
8,022.100 |
|
|
6.36% |
4.82% |
6.61% |
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 |
CASE
DETAILS:
CHENNAI
COURT
CASE STATUS INFORMATION SYSTEM
|
Case
Status: |
Pending |
|
Status
Of: |
CIVIL REVISION PETITION |
|
Case
No.: |
2929 |
|
Year
: |
2013 |
|
Petitioner
: |
M/S FLYJAC LOGISTICS P LIMITED |
|
Respondent
: |
M/S MRF LIMITED |
|
Pet's
Advocate : |
M/S.T.V.BADRINARAYANAN |
|
Res's
Advocate : |
M/S NAGESWARAN AND NARICHANI |
|
Category
: |
NO CATEGORY MENTIONED |
|
|
Last Listed on: No Date Mentioned |
|
Case
Updated on : |
Jan 20 2014 |
CHARGES
|
ENTITY |
PERSON |
COMPETENT
AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
MRF LIMITED |
|
CBEC |
DEFAULTED IN
PAYMENT OF CUSTOMS/EXCISE DUTIES |
NOTICE
ISSUED UNDER SECTION 142 OF CUSTOMS ACT, 1962 |
|
|
MRF LIMITED |
|
BSE |
DID NOT SUBMIT SHAREHOLDING
PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED 31-DECEMBER-2009 |
PUT
UP ON BSE WEBSITE FOR PUBLIC NOTICE 31-DEC-2009 |
NOT APPEARING IN
THE LIST FOR THE QUARTER ENDED 31-MARCH-2010 |
UNSECURED LOAN:
|
Particulars |
30.09.2013 Rs.
In Millions |
30.09.2012 Rs.
In Millions |
|
Long Term
Borrowings |
|
|
|
Term Loan from a Bank |
|
|
|
Buyers Line of Credit |
00000 |
833.800 |
|
Fixed Deposits |
314.900 |
171.500 |
|
Sales Tax Deferral Scheme |
618.400 |
705.100 |
|
Others |
|
|
|
Deferred Payment Credit |
195.100 |
270.500 |
|
Short Term
Borrowings |
|
|
|
Buyers line of credit |
559.300 |
0.000 |
|
Total |
1687.700 |
1980.900 |
WORKING OF THE COMPANY
Financial Results:
During the year,
the Company’s total income increased by around 3% to Rs.134820.000 Millions
from Rs.130940.000 Millions in the previous year.
There was an
increase of 4% in total tyre production in almost all segments. During the year,
the raw material prices were stable and this contributed to the margins of the
Company despite depreciation of rupee. This apart, the Company could achieve
improved results, due to improves operating efficiencies and cost reduction
measures which the Company has undertaken over a period of time.
Two interim
dividends of Rs.3 each per share (30% each) for the year ended 30th September,
2013 were declared by the Board of Directors on 25-07-2013 and on 24-10-2013.
The Board of Directors is now pleased to recommend a final divided of Rs.24 per
share (240%) on the paid equity share capital of the Company, for consideration
and approval of the shareholders at the Annual General Meeting. With this, the
total dividend for the entire year works out to Rs.30 per share (300%). The
total amount of dividends aggregates to Rs.127.200 Millions.
The director
recommend that after making provision for taxation debenture redemption reserve
and proposed dividend, an amount of Rs.7588.200 Millions be transferred to
General Reserve. With this, the Company’s Reserves and Surplus stands at
Rs.36409.000 Millions.
MANAGEMENT DISCUSSION AND ANALYSIS
(Within
the limits set by the Company’s competitive position)
The
core business of MRF is manufacturing, distribution and sale of tyres for
various kinds of vehicles. The management discussion and analysis given below
discusses the key issues for various sectors of the business.
Tyre Industry Structure and Development
The
turnover of the Indian tyre Industry is estimated to be around Rs.440000.0000
Millions for the period for 2012-2013. During the period, exports accounted for
Rs.48000.000 Millions. 1245 lakh tyres were manufactured by the tyre
companies. Ten top tyre Companies’ production constitute over 90% of the total
tyre production. Around 65% of the total tyre industry tonnage is sold in the
replacement market and OE market comprises about 24% of the tonnage, the
balance being exports.
Commercial
tyres (which include HCV, LCV & SCV) contribute to around 65% of the total
tyre industry tonnage wherein 78% of the production tonnage is sold in the
replacement market and OE market comprises about 14% of the tonnage and exports
8%. For the passenger car group car group around 47% of tyres manufactured are
sold to OEMs and around 49% caters to the replacement segment.
In the
truck tyre sector, the commercial segments continue to be primarily dominated
by cross-ply due to very poor road conditions, loading patterns and high
initial cost of radials. The radialisation pattern of various product and heavy
commercial vehicle - 25%. Radialisation in commercial vehicles segment in
expected to grow by 3% to 4% during 2013-2014
During
2012-13, in the vehicle manufacturing sector, there has been a dip of 30% in
the production of heavy commercial vehicles and an 11% increase in light
commercial vehicles. There was a 5% decline in the small commercial vehicle
segment. The passenger car group production also saw a decrease of 4%. Whereas
in the utility group, there has been an increase of 21% over the last year. In
two wheelers, scooters witnessed an 11% increase whilst in motorcycle segment,
the production remained flat. In the farm segment, there was an 8% increase in
production over 2011-2012
The
tyre industry provides direct and indirect employment to one million people
comprising of dealers, retreaders and truck operators. The truck operations are
controlled by nearly 2.6 million small operators.
There
are around 5000 tyre dealers spread throughout the country, mostly selling
multibrand across their counters.
SEGMENT WISE AND PRODUCT WISE PERFORMANCE
During
the period 2012-13, MRF achieved a sales turnover of Rs.134450.000 Millions. This is an increase of around 3% over the previous
year. There was an increase of 4% in total tyre production in almost all
segments. In the heavy commercial vehicle group, the largest segment, the
increase was 5% over the last year and in light commercial vehicle group, the
increase was 5%. In the motorcycle and scooter segments there was no visible
increase over the previous year. The passenger car group registered an increase
of 6%.
OUTLOOK
The
automobile industry is going through a recession and it is unlikely to turn
favourable in the immediate future. This would have a bearing on tyre demand.
The after-market demand continues to prop up the tyre industry demand. The
capacity additions in the tyre industry would further fuel competition and this
could put pressure on margins especially in the truck radial segment.
PERFORMANCE
OF THE COMPANY
The
sales turnover of the Company during the year increased by around 3% from
Rs.130540.000 Millions in 2011-12 to Rs.134450.000
Millions in 2012-13. Earnings before depreciation and
interest (EBIDTA) amounted to Rs.17960.000
Millions against Rs.12930.000 Millions in the
previous year. After providing for depreciation and interest, the profit before
tax for the year ended 30th September 2013, Rs.12270.000 Millions as compared to Rs.8330.000 Millions in the previous year. After making provision for
income-tax, the net profit for the year stood at Rs.8020.000 Millions as compared to Rs.5720.000 Millions in the previous year.
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND HALF YEAR ENDED 31ST MARCH 2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Unaudited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
Income from Operations |
|
|
|
|
Gross Sales/Income from Operations |
36606.800 |
35407.700 |
72014.500 |
|
Less: Excise duty |
3632.800 |
3436.500 |
7069.300 |
|
Net Sales/Income from Operations |
32974.000 |
38844.200 |
64945.200 |
|
Other Operating Income |
15100 |
34.500 |
49.600 |
|
Total income from operations ( net) |
32989.100 |
32005.700 |
64994.800 |
|
Expenses |
|
|
|
|
a) Cost of materials consumed |
21656.400 |
20862.200 |
42518.600 |
|
b) Purchases of stock-in-trade |
65.500 |
401.400 |
466.900 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(50.600) |
(404.400) |
(455.000) |
|
d) Employee benefits expense |
1858.100 |
1753.100 |
3611.200 |
|
e) Depreciation and amortisation expense |
1064.100 |
993.400 |
2057.500 |
|
f) Other Expenses |
5334.800 |
5204.800 |
10539.600 |
|
Total Expenses |
29928.300 |
28810.500 |
58738.800 |
|
Profit from Operations before Other Income, finance
costs and exceptional items |
3060.800 |
3195.200 |
6256.000 |
|
Other Income |
107.500 |
99.400 |
206.900 |
|
Profit from Ordinary activities before finance costs
and exceptional items |
3168.300 |
3294.600 |
6462.900 |
|
Finance costs |
629.600 |
585.700 |
1215.300 |
|
Profit from Ordinary activities after finance costs
but before exceptional items |
2538.700 |
2708.900 |
5247.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
Profit from Ordinary
activities before tax |
2538.700 |
2708.900 |
5247.600 |
|
Tax Expense |
830.000 |
910.000 |
1740.000 |
|
Net Profit from ordinary activities after tax |
1708.700 |
1798.900 |
3507.600 |
|
Extraordinary items |
0.000 |
0.000 |
0.000 |
|
Net Profit for the period |
1708.700 |
1798.900 |
3507.600 |
|
Paid-up Equity Share Capital (Face value of Rs.10/-
each) |
42.400 |
42.400 |
42.400 |
|
Paid-up Debt Capital of the Company * |
6350.000 |
7000.000 |
6350.000 |
|
Reserve excluding Debenture Redemption Reserves as
per balance sheet of previous accounting year |
0.000 |
0.000 |
0.000 |
|
Debenture Redemption Reserve(Cumulative) |
703.700 |
809.300 |
703.700 |
|
Earnings Per Share (Face value Rs.10/- each) |
|
|
|
|
Basic and diluted EPS (Rs. Per Share) |
402.87 |
424.17 |
827.04 |
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Unaudited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
3081828 |
3082327 |
3081828 |
|
- Percentage of shareholding |
72.67% |
72.68% |
72.67% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
6550 |
6550 |
6550 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
0.56% |
0.57% |
0.56% |
|
Percentage of shares (as a % of total share capital of the
company) |
0.15% |
0.15% |
0.15% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
1152765 |
1152265 |
1152765 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
99.44% |
99.43% |
99.44% |
|
Percentage of shares (as a % of total share capital of the
company) |
27.18% |
27.14% |
27.18% |
|
|
|
|
|
|
B.
Investor Complaints |
|
||
|
Pending at the beginning of the quarter |
Nil |
||
|
Receiving during the quarter |
Nil |
||
|
Disposed of during the quarter |
Nil |
||
|
Remaining unreserved at the end of the quarter |
Nil |
||
STANDALONE
STATEMENT OF ASSTES AND LIABILITIES AS ON 31.03.2014
Rs. In Millions
|
SOURCES OF FUNDS |
|
|
31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
42.400 |
|
(b) Reserves & Surplus |
|
|
39,916.500 |
|
(c) Money received against
share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
39,958.900 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
10,716.400 |
|
(b) Deferred tax liabilities
(Net) |
|
|
2,343.100 |
|
(c) Other long term
liabilities |
|
|
10,485.800 |
|
(d) long-term provisions |
|
|
657.900 |
|
Total
Non-current Liabilities (3) |
|
|
24,203.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
6,270.500 |
|
(b) Trade payables |
|
|
10,741.300 |
|
(c) Other current liabilities |
|
|
4,790.300 |
|
(d) Short-term provisions |
|
|
2,204.400 |
|
Total
Current Liabilities (4) |
|
|
24,006.500 |
|
|
|
|
|
|
TOTAL |
|
|
88,168.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
35,095.300 |
|
(ii) Intangible Assets |
|
|
0.000 |
|
(iii) Capital work-in-progress |
|
|
0.000 |
|
(iv) Intangible assets under
development |
|
|
0.000 |
|
(b) Non-current Investments |
|
|
1,796.800 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
2,047.200 |
|
(e) Other Non-current assets |
|
|
359.700 |
|
Total
Non-Current Assets |
|
|
39,299.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
8,214.800 |
|
(b) Inventories |
|
|
18,062.600 |
|
(c) Trade receivables |
|
|
15,651.500 |
|
(d) Cash and cash equivalents |
|
|
5,525.500 |
|
(e) Short-term loans and
advances |
|
|
1,295.700 |
|
(f) Other current assets |
|
|
119.500 |
|
Total
Current Assets |
|
|
48,869.600 |
|
|
|
|
|
|
TOTAL |
|
|
88,168.600 |
Notes:
1) The above unaudited standalone results have been subjected to Limited Review by the Statutory Auditors, reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 22nd April, 2014.
2) The Company is dealing mainly in rubber products and has no other reportable segment.
Paid up Debt Capital represents Secured Redeemable Non-Convertible Debentures.
** Debt to Equity: Long Term Debts/Total Net Worth
*** Debt Service Coverage Ratio: EBDIT/(Interest + Principal Repayment during the year)
****Interest Service Coverage Ratio: EBDIT/Interest Expense
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10330357 |
05/01/2012 |
2,046,160,000.00 |
The Bank of Tokyo-Mitsubishi UFJ Limited |
Raffles Place, # 01-01 Republic Plaza, Singapore, - 048619, Singapore |
B30083505 |
|
2 |
10303189 |
25/08/2011 * |
5,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B20844015 |
|
3 |
10279192 |
25/08/2011 * |
2,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Floo, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B20845285 |
|
4 |
10030186 |
08/12/2006 |
610,000,000.00 |
Infrastructure Development Finance Company Limited |
ITC Centre, 3rd Floor 760, Anna Salai, Chennai - 600 002, Tamil Nadu, India |
A08378762 |
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
NEWS:
MARGINS MAY NOT IMPROVE DESPITE DROP IN RUBBER
PRICES: MRF
Tyre maker MRF today
reported almost flat standalone net profit in the December quarter at
Rs.1798.000 Millions. It had reported net profits of Rs.1802.200 Millions in
October-December quarter of the previous year.
Speaking to
CNBC-TV18's Sonia Shenoy, Koshy K Varghese, Exective VP- Marketing at MRF said
the drop in rubber prices did not help the company's EBITDA margins as other
input costs went up. Along with that, the ongoing recession in the auto
industry did not help the Chennai-based tyre manufacturer.
"In this quarter,
there would be pressure in the market, especially topline pressure. So, one has
to wait and watch but margins may not improve significantly even though rubber
has softened," he told the channel.
Below is the
transcribed interview of Koshy Varghese with CNBC-TV18.
Q: Could you take us
through the margin picture and whether there have been any improvement
considering the fall that we have seen in rubber prices?
A: The EBITDA
margins Q-o-Q have remained more or less the same at about 13 percent though
rubber price drop in January, but otherwise is not much of a significant change
because the input cost of other items have gone up which in a way countered the
margin drop.
Q: What kind of
margins could be sustainable going ahead given the fall that we have seen in
rubber prices in the month of January?
A: One part of the
story is the drop in rubber price but the other part of the story is the drop
in demand on account of the recession the auto industry is going through. The
only consolation is the drop in rubber; other than that, prices have inched up.
So in this quarter, there would be pressure in the market, especially topline
pressure. So, one has to wait and watch but margins may not improve
significantly even though rubber has softened.
Q: We are seeing
that slowdown in your topline because of the slow growth in the Original
Equipment Manufacturer (OEM) sector, so Rs.32000.000 Millions compares to about
Rs.30260.000 Millions, not too much of a growth but a growth nevertheless. Do
you think this low single digit topline growth will continue well into FY15,
what could be the ballpark range of the topline growth?
A: Large depends
upon how the OEM segments operate in the coming quarters which don’t seem to be
very bullish. All current trends indicate that it will continue to be soft till
probably the elections are over and there is clarity on policies. So, one is
probably feeling that it will remain at current levels and may not show much
improvement in the coming quarters.
Q: What about the capacity
expansion that MRF has seen. Going forward what could that look like?
A: Capacity
expansions are done with a long-term view and not with the current situation in
mind. Looking forward, we expect that the auto industry would do well in the
long-term and therefore, our capacity expansion, which we have been doing in
the past, would continue across both - our existing plants adding across
product category. On that we will not go back.
Q: And what would
the capex number for FY15 be?
A: The capex number could be in the region of
Rs.8000.000-10000.000 Millions a year, for this year.
MRF CHALLENGE TO GO INTERNATIONAL FOR FIRST
TIME
The MRF Challenge 2013 season will kick-start this weekend with the first round being held at the Buddh International Circuit (BIC) in Greater Noida.
The FIA sanctioned MRF Challenge will serve as the sole support race for the
Formula One Indian Grand Prix. The four round
calendar will include 14 races, and will see the leading single-seater racing category in India go international with two
rounds to be held in Bahrain in November and December.
The final round of the championship will be held in Chennai in February. MRF
also confirmed a prize money of Rs.6.500 Millions for the winners of the In its
second year, the MRF Challenge 2013 will feature 18 MRF Formula 2000 race cars,
which have been made in India by JA Motorsport
based in Coimbatore, in collaboration with Dallara, world's
largest racing car manufacturer and also Jayem Automotives Limited, which is a
strategic partner for Tata Motors Limited.
The Formula 3 style car has been built by JA Motorsport in technical collaboration with Dallara, and is considered to be the fastest of its kind in Asia. The MRF Formula 2000 is powered by a 2.0 litre 210 BHP Renault Sport Engine and will have a Hewland 6-Speed sequential gearbox. The race car has also been crash tested to FIA F3 safety standards and will race with MRF ZLO slick and wet tyres.
Mr. Arun Mammen, Managing
Director, MRF Tyres, commented, "We are extremely
pleased to launch the second season of the MRF Challenge. After the resounding
success in our inaugural season we are keen to build on it and further improve
the show. We are proud of the fact that this is the first time that an Indian
motorsport series will be held internationally.
JA Motorsport has done an incredible job developing the MRF Formula 2000 race
car and is constantly innovating to ensure the cars are world class. These cars
are part of the most technologically advanced
series of its type and one of the fastest in Asia."
Last year's success has also led to the MRF Challenge 2013 having one of the
strongest grids in Asia. Drivers from Formula
Renault 3.5, British F3, European F3 will battle it out in this season's MRF
Challenge. Arthur Pic, FR 3.5 driver and brother of Caterham F1 driver Charles
Pic, will race alongside Tio Ellinas, 2013 GP3 race winner, Harry Tincknell and
Rupert Svendsen-Cook, British F3 multiple race winners, and Sam Brabham, son of
Le Mans legend David Brabham and grandson of Jack Brabham. There will be four
Indians on the grid with 2012 Formula Pilota Asian Champion Parth Ghorpade,
former F2 racer Parthiva Sureshwaren, and 2013 MRF 1600 winner and runner-up
Ashwin Sundar and Vikash Anand.
Narain Karthikeyan, India's first Formula One
driver, was impressed with the driver line up for this and was confident of
another great season ahead.
He commented, "The MRF Challenge 2013 promises to be the hottest
championship in Asia this year with a great driver line-up. It is great to see
the calibre of drivers committing to this series. Participation of drivers from
across the globe is a testament to the credibility the series has built in just
a year. MRF has done a great job in creating this world-class championship and
I believe it will just get bigger in the years to come."
The MRF Challenge 2013 will continue to use the professional setup that worked
well last time around as they get the best European engineers and mechanics who
were associated with F3, GP3 and F1 championships and also we have got very
experienced professionals like, Mr. Antony Heitt and Mr. Jos Claes, Technical
Head, Dallara.
Mr. J Anand, Managing Director, JA Motorsports, was pleased with the way
everything was shaping up for the first race of the season. He commented,
"When MRF first came to me with their vision of the MRF Challenge, I was
excited to see the commitment from India's largest tyre manufacturer towards
motorsport. MRF was also very keen that we build everything in-house and put
India on the motorsport map, as genuine experts in building Formula cars.
In order to make this championship professional and transparent, we are
bringing down F3 engineers and mechanics from Europe, and have a close
association with Dallara and Renault Sport. We have developed the MRF tyres
from last year and the test drivers have given us positive feedback with the new compounds. We are excited about
a great season ahead."
The first round will feature two races as part of the Indian GP weekend at BIC
this coming weekend. The second round will take place in Bahrain as the support
race for the World Endurance Championship final race, the third round will also
take place in Bahrain as part of the Gulf National Racing Festival and the
final round will be held at the MMRT in Chennai. The second, third and fourth
round will feature four races each.
Last year's MRF Challenge featured some of the top drivers in Europe. Race
winners from last year have benefited from participation in this series. Race
winner Jordan King won the British F3 title this year, while last year's
inaugural champion Conor Daly won races in GP3 in 2013 before making the switch
to Indycar in the U.S. Jon Lancaster, another race winner, featured heavily in
the GP2 championship winning two races along the way.
Mr. Arun Mammen, Managing Director, MRF Tyres, added, "It is heartening to
see young international drivers wanting to drive in the India-based MRF
Challenge 2013. To be support race at the Indian GP
and World Endurance Championship round is an honour for us and speaks volumes
of our commitment to promote motorsport not only nationally but internationally
as well. I would like to thank all our partners for helping us create this
exciting series.
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.60.14 |
|
UK Pound |
1 |
Rs.102.83 |
|
Euro |
1 |
Rs.82.38 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
80 |
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.