MIRA
INFORM REPORT
|
Report Date : |
10.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNDRAM FASTENERS LIMITED |
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Registered
Office : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
10.12.1962 |
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Com. Reg. No.: |
18-004943 |
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Capital
Investment / Paid-up Capital : |
Rs. 210.128 Millions |
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CIN No.: [Company Identification
No.] |
L35999TN1962PLC004943 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00555C / CHES17415G / MRIS01546G |
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PAN No.: [Permanent Account No.] |
AAACS8779D / AAACS8779D |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps and Gear Shifters. |
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|
No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 27000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well-established and a reputed company having fine track
record. Directors are reported to be experienced and respectable businessmen. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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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 |
CRISIL |
|
Rating |
Rs. 1.25 Billion Short term debt: “A1+” |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
25.09.2013 |
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 PARTED BY
|
Name : |
Mr. Anand Buby |
|
Designation : |
Assistance Manager Finance |
|
Contact No.: |
91-44-26257970 |
LOCATIONS
|
Registered Office/ Corporate
Headquarters : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu, India |
|
Tel. No.: |
91-44-28478500 / 26257970 |
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Fax No.: |
91-44-28478510 / 28478508 |
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E-Mail : |
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Website : |
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Factory (In |
Padi, Chennai-600050, Ghengleput District, |
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Tel No.: |
91-44-26258460 |
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Fad No.: |
91-44-26357052 |
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E mail: |
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Factory (In |
Krishnapuram, Aviyur-626160, Virudhunagar District, |
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Factory (In |
Mittamandagapet Village-605106, Villupuram District, Tamilnadu, India |
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Factory (In |
47/2, |
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Tel No.: |
91-44-26272231/ 55512231 |
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Fad No.: |
91-44-26272696 |
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E mail: |
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Factory (In |
SIPCOT Industrial Complex, Gummidipoondi-601021, |
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Factory (In |
Auto Ancillary SEZ, |
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Factories (In |
Tamilnadu: Harita, Hosur-635109, Krioshnagiri District, Tamilnadu, India |
|
Tel No.: |
91-4344-276651 |
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Fad No.: |
91-4344-276082 |
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E mail: |
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Factory (In |
Puducherry Korkadu, Nettapakkam Commune, Bahur Taluk, Puducherry-605110,
Tamilnadu, India |
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Factory (In |
Andhra Pradesh Bonthapally Village-502313, Medak District, Andhra Pradesh, India |
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Factory (In |
Uttarakhand Patnagar, Itegrated Industrial Estate, Rudrapur, District Udam Singh
Nagar, Uttarakhand-263153, India |
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Factory (In |
Tamilnadu: Ambattur, Hosur, |
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Factories (Outside India- through subsidiaries) 12: |
No.1, Sundram Road, Wuyuan Town, Haiyan County, Jiaxing City, Zhejiang Province, China - 314300 |
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Factories (Outside India- through subsidiaries) 13: |
Unit 8, Atley Way, North Nelson Industrial Estate, Cramlington, Northumberland NE23 1WA, United Kingdom |
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Factories (Outside |
Woltorfer Str. 20-24, Postfach 1649, D-31221 Peine, Germany |
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Factories (Outside |
801, W.Big Beaver Road, Troy, Michigan, United States of America |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Suresh Krishna |
|
Designation : |
Chairman and Managing Director |
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|
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|
Name : |
Ms. Arathi Krishna |
|
Designation : |
Joint Managing Director |
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|
Name : |
Ms. Arundathi Krishna |
|
Designation : |
Whole time Director |
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|
Name : |
Mr. K Ramesh |
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Designation : |
Director |
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|
Name : |
Mr. Venu Srinivasan |
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Designation : |
Director |
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|
Name : |
Mr. V Narayanan |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R Ramakrishnan |
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Designation : |
Director |
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|
Name : |
Mr. C V Karthik Narayanan |
|
Designation : |
Director |
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|
Name : |
Mr. M Raghupathy IAS |
|
Designation : |
Director (Retired) |
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|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Company Secretary |
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|
|
Name : |
Mr. Anand Buby |
|
Designation : |
Assistance Manager Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
104085280 |
49.53 |
|
|
104085280 |
49.53 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
104085280 |
49.53 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
23634314 |
11.25 |
|
|
8002284 |
3.81 |
|
|
10640255 |
5.06 |
|
|
2672066 |
1.27 |
|
|
44948919 |
21.39 |
|
|
|
|
|
|
3592548 |
1.71 |
|
|
|
|
|
|
46778300 |
22.26 |
|
|
10068043 |
4.79 |
|
|
655280 |
0.31 |
|
|
649280 |
0.31 |
|
|
6000 |
0.00 |
|
|
61094171 |
29.07 |
|
Total Public shareholding (B) |
106043090 |
50.47 |
|
Total (A)+(B) |
210128370 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
210128370 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps and Gear Shifters. |
|
|
|
|
Products : |
v
Fasteners v
Radiator Caps v
Powder Metal Parts v
Cold Extruded Parts v
Hot Forged Parts v
Pumps and Assemblies |
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Exports : |
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|
Countries : |
·
UK ·
Germany ·
USA ·
Europe |
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Imports : |
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|
Countries : |
·
Japan ·
US ·
UK ·
Germany ·
Europe |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
High tensile fasteners |
MT |
71435 |
61304 |
|
Automotive and other miscellaneous cold formed/extruded
parts/Precision formed gears |
MT |
4600 |
4321 |
|
Powder metal parts |
MT |
9100 |
5554 |
|
Iron powder |
MT |
8000 |
893 |
|
Radiator caps |
Nos. |
100 |
72 |
|
Gear shifters |
Nos. |
- |
113 |
|
|
Nos. |
50000 |
14360 |
|
Hot and warm forged parts |
MT |
6000 |
368 |
|
Shafts |
Nos. |
1350000 |
1226187 |
|
Hubs |
Nos. |
1350000 |
1361844 |
|
Pump Assemblies (Water /Oil/Fuel Pumps) |
Nos. |
- |
5401179 |
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
· United Bank of India · State Bank of Mysore · Standard Chartered Bank · HDFC Bank Limited · ICICI Bank Limited · Canara Bank · DBS Bank Limited · The Hongkong and Shanghai Banking Corporation Limited |
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
4, C P Ramaswamy Road, Alwarpet, Chennai - 600018, Tamilnadu, India |
|
|
|
|
Subsidiaries : |
·
Sundram Fasteners Investments Limited, Chennai ·
Upasana Engineering Limited, Chennai ·
Sundram Non-Conventional Energy Systems Limited,
Chennai ·
Sundram Bleistahl Limited, Chennai |
|
|
|
|
Associates : |
·
TVS Infotech Limited, Chennai (TVSI) ·
TVS Infotech Inc., ·
TV Sundram Iyengar and Sons Limited, ·
Southern Roadways Limited, |
|
|
|
|
Joint Venture: |
·
Windbolt |
|
|
|
|
Enterprise in which Key Management Personnel have significant
influence: |
·
Upasana Finance Limited, Chennai |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210128370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210128370 |
Equity Shares |
Re.1/- each |
Rs.210.128
millions |
|
|
|
|
|
Reconciliation of
number of Equity Shares:
|
Particulars |
31.03.2013 |
|
|
|
No. of shares |
Rs. in Millions |
|
Balance at the beginning of the year |
210128370 |
210.128 |
|
Add: Shares issued during the year |
- |
- |
|
Bonus Shares issued during the year |
- |
- |
|
Balance at the end of the year |
210128370 |
210.128 |
Terms / rights
attached to shares:
The Company has only one class of equity shares having a par value of Re 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of shares
held by shareholders holding more than 5% of the aggregate shares in the
Company
|
Name of Share
holder |
31.03.2013 |
|
|
|
No. of shares |
Shares as % of Total number of shares
|
|
T V Sundram Iyengar and Sons Limited |
53312000 |
25.37 |
|
Southern Roadways Limited |
50773280 |
24.16 |
|
Sub Total |
104085280 |
49.53 |
|
Total No. of Shares of the Company |
210128370 |
100.00 |
Bonus Shares / Buy Back
/ Shares for consideration other than cash issued during the period of five
years immediately preceding the financial year ended 31st March 2013:
(i) Aggregate number of equity shares allotted as fully paid up pursuant to contracts without payment being received in cash: Nil
(ii) Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares: Nil.
(iii) Aggregate number of equity shares bought back: Nil
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 |
210.128 |
210.128 |
210.128 |
|
(b) Reserves & Surplus |
6732.752 |
6124.470 |
5339.368 |
|
(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) |
6942.880 |
6334.598 |
5549.496 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2881.506 |
2559.143 |
2871.435 |
|
(b) Deferred tax liabilities
(Net) |
903.431 |
893.101 |
863.308 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
28.686 |
35.053 |
40.021 |
|
Total
Non-current Liabilities (3) |
3813.623 |
3487.297 |
3774.764 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
4210.529 |
4399.572 |
3564.059 |
|
(b) Trade payables |
1725.661 |
1638.967 |
1364.718 |
|
(c) Other current liabilities |
1453.794 |
1954.175 |
1588.154 |
|
(d) Short-term provisions |
306.529 |
279.196 |
182.471 |
|
Total
Current Liabilities (4) |
7696.513 |
8271.910 |
6699.402 |
|
|
|
|
|
|
TOTAL |
18453.016 |
18093.805 |
16023.662 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7071.042 |
6711.573 |
6050.630 |
|
(ii) Intangible Assets |
5.252 |
16.357 |
27.462 |
|
(iii) Capital work-in-progress |
214.059 |
400.909 |
317.536 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1320.202 |
1415.796 |
1423.674 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
384.063 |
332.068 |
267.781 |
|
(e) Other Non-current assets |
4.673 |
4.578 |
4.578 |
|
Total
Non-Current Assets |
8999.291 |
8881.281 |
8091.661 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
10.500 |
0.000 |
|
(b) Inventories |
3211.822 |
3239.769 |
2869.311 |
|
(c) Trade receivables |
4329.213 |
4335.209 |
3645.453 |
|
(d) Cash and cash equivalents |
105.881 |
67.131 |
81.311 |
|
(e) Short-term loans and advances |
1786.964 |
1554.383 |
1335.239 |
|
(f) Other current assets |
19.845 |
5.532 |
0.687 |
|
Total
Current Assets |
9453.725 |
9212.524 |
7932.001 |
|
|
|
|
|
|
TOTAL |
18453.016 |
18093.805 |
16023.662 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20694.167 |
21466.352 |
18107.166 |
|
|
|
Other Income |
263.012 |
180.743 |
43.675 |
|
|
|
TOTAL (A) |
20957.179 |
21647.095 |
18150.841 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
9666.922 |
10532.281 |
8648.803 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
31.818 |
(398.104) |
(259.919) |
|
|
|
Employees benefits expense |
2019.110 |
1842.431 |
1589.662 |
|
|
|
Other expenses |
6402.996 |
6538.911 |
5827.798 |
|
|
|
Exceptional Items |
(12.780) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
18108.066 |
18515.519 |
15806.344 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2849.113 |
3131.576 |
2344.497 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
813.529 |
922.000 |
356.674 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2035.584 |
2209.576 |
1987.823 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
716.154 |
636.131 |
545.372 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1319.430 |
1573.445 |
1442.451 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
368.805 |
447.458 |
390.681 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
950.625 |
1125.987 |
1051.770 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
626.974 |
341.872 |
293.921 |
|
|
|
|
|
|
|
|
|
|
Income
Tax (Paid)/ Refund relating to earlier years |
0.000 |
0.000 |
2.487 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
294.180 |
294.180 |
115.571 |
|
|
|
Tax on Interim Dividend |
48.463 |
46.705 |
19.195 |
|
|
|
Interim Dividend Payable |
0.000 |
0.000 |
147.090 |
|
|
|
Tax on Interim Dividend Payable |
0.000 |
0.000 |
24.450 |
|
|
|
Transfer to General Reserve |
500.000 |
500.000 |
700.000 |
|
|
BALANCE CARRIED
TO THE B/S |
735.256 |
626.974 |
1348.178 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
6,782.524 |
6458.801 |
4802.956 |
|
|
|
Claims Received |
21.031 |
0.000 |
0.000 |
|
|
|
Other |
26.920 |
27.528 |
0.000 |
|
|
TOTAL EARNINGS |
6,830.475 |
6486.329 |
4802.956 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2,451.957 |
3480.290 |
3197.677 |
|
|
|
Components & Spares Parts |
183.899 |
231.545 |
104.101 |
|
|
|
Capital Goods |
307.694 |
521.685 |
379.944 |
|
|
|
Tools Steel, Tools, Gauges etc |
214.136 |
370.443 |
330.955 |
|
|
|
Others |
5.050 |
0.451 |
1.420 |
|
|
TOTAL IMPORTS |
3,162.736 |
4604.414 |
4014.097 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
4.52 |
1.63 |
5.02 |
|
|
|
Diluted |
4.52 |
1.63 |
5.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.54 |
5.20 |
5.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.38 |
7.33 |
7.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.80 |
9.67 |
10.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.25 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.02 |
1.10 |
1.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23 |
1.11 |
1.18 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
210.128 |
210.128 |
210.128 |
|
Reserves & Surplus |
5339.368 |
6124.470 |
6732.752 |
|
Net
worth |
5549.496 |
6334.598 |
6942.880 |
|
|
|
|
|
|
long-term borrowings |
2871.435 |
2559.143 |
2881.506 |
|
Short term borrowings |
3564.059 |
4399.572 |
4210.529 |
|
Total
borrowings |
6435.494 |
6958.715 |
7092.035 |
|
Debt/Equity
ratio |
1.160 |
1.099 |
1.021 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
18107.166 |
21466.352 |
20694.167 |
|
|
|
18.552 |
(3.597) |
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 |
18107.166 |
21466.352 |
20694.167 |
|
Profit |
1051.770 |
1125.987 |
950.625 |
|
|
5.81% |
5.25% |
4.59% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
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 |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
Unsecured Loan |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Term Loans |
200.000 |
241.775 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Working Capital Loans* |
3502.770 |
3275.006 |
|
|
|
|
|
Total |
3702.770 |
3516.781 |
|
Note:
*Secured by hypothecation of current assets viz., stocks of raw materials,
work-in-process and finished goods. |
||
LITIGATIONS DETAILS
CHENNAI COURT
CASE STATUS INFORMATION SYSTEM
|
Case Status: |
Pending |
|
Status Of: |
WRIT APPEAL |
|
Case No.: |
1140 |
|
Year : |
2013 |
|
Petitioner : |
THE GOVERNMENT OF TAMILNADU |
|
Respondent : |
SUNDRAM FASTENERS LIMITED |
|
Pet's Advocate : |
GOVERNMENT PLEADER |
|
Res's Advocate : |
|
|
Category : |
NO CATEGORY MENTIONED |
|
|
Last Listed on: No Date Mentioned |
|
Case Updated on : |
Jun 13 2013 |
SALES AND PROFITS
The Company recorded total Net Sales and other income of Rs 2,0957.200 Millions for the year ended March 31, 2013 as against Rs 2,1647.100 Millions achieved during the previous year. The export sale was at Rs 6782.500 Millions as against Rs 6458.800 Millions in the previous year. The Profit after tax was at Rs 950.600 Millions as against Rs 1126.000 Millions in the previous year.
The Company continues to be a net foreign exchange earner for the sixteenth year in succession.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS OVERVIEW
India’s gross domestic product and the Index of Industrial Production registered a growth of about 5% (7%) and 1% (2.8%) respectively during the financial year 2012-13, reflecting a slower growth of the Indian economy than in the previous year. Growth rate has been the slowest in the last ten years.
The global economy grew very slowly with emerging economies registering a slow growth. The US economy showed better signs of growth; however various indices of the US economy fluctuated erratically making it difficult to arrive at a definite conclusion that economic recovery is under way. Problems created by "fiscal cliff" depressed the sentiments. The European economies have been stressed due to financial crisis in a number of countries in the Euro zone and spending cuts of unprecedented magnitude mandated under rescue packages for avoiding sovereign bankruptcy of some nations in the Euro zone.
The domestic market was subdued due to macro-economic problems, high inflation, high petroleum product prices, high interest rates and poor consumer sentiment.
There was an improvement in the sales of passenger cars during 2012 in the US and contraction in Europe. In the overseas markets, the CV industry has continued to struggle, with sales recorded at much lower than peak levels.
Growth levels in sales of passenger cars may remain muted during 2013, especially in Europe, due to high levels of unemployment and volatile consumer confidence.
DOMESTIC SALES
Domestic sales showed a decline at Rs 1,3470.000 millions from Rs 1,4510.000 millions in the light of drop in production of vehicles, especially Medium and Heavy commercial vehicles. Demand from automotive OEMs was muted throughout the year. Aftermarket sales showed a slow growth as confidence levels of dealers were low resulting in carrying lower stocks. Upsurge in petrol prices resulted in a shift towards diesel powered vehicles affecting some manufacturing units of the Company adversely.
EXPORTS
The US market showed signs of recovery and the confidence levels of the Company's customers were tempered by slowdown in Europe and the challenges posed by events like the "US fiscal cliff". European markets continued to be hit by recession and negative sentiments. Exports were at Rs 6780.000 millions as against Rs 6450.000 millions in the previous year, an increase of 5%. Export sales were around 34% of the overall sales revenues. The Company’s push for adding new products and new customers is expected to result in further improvement in exports in the near future. Volatility in exchange rates and slow recovery in demand from European customers are causes for concern.
FINANCIAL PERFORMANCE
Depressed market conditions resulted in lower sales in many of the units of the Company. Raw material prices were steady during the year. Other input costs rose across the board, especially of petroleum based products.
Non-availability of power due to scheduled power-cuts up to 40%, power-holidays and unscheduled power outages forced the Company to purchase power and resort to self generation at higher costs. Wages increased as dearness allowance increased in line with the cost of living index. High levels of inflation had a direct impact on wage costs. The Company continued to be under pressure due to rising manufacturing costs. Freight rates also increased in line with increase in cost of diesel and other inputs related to the transportation industry.
During the year, PBIDT (Profit before interest, foreign exchange fluctuation, depreciation, exceptional income and tax) was at Rs 2836.300 millions as against Rs 3131.600 millions in the previous year.
The Company made substantial investments in creation of capacities for new products and additional capacities for manufacture of existing products to meet projected demand from domestic and international customers. These investments resulted in additional interest costs. Tight money policies followed by Reserve Bank of India resulted in steep increase in interest rates on rupee borrowings and forward premiums in respect of foreign currency borrowings. Financing costs, including premiums on forward cover and adverse foreign exchange variations of Rs 402.700 millions (Rs 573.000 millions) on foreign currency borrowings, were at Rs 813.500 millions as against Rs 922.000 millions in the previous year. In line with the Accounting Standard AS-11 (dealing with the effects of change in foreign exchange rates) and to ensure the principles of consistency, the Company recognises the exchange differences arising out of foreign currency denominated items as expense or income in the statement of profit and loss. It may be noted that even after providing for foreign exchange losses, the net borrowing costs of the company would be more cost-effective than rupee loans on a door-to-door basis.
Depreciation was higher at Rs 716.200 millions (Rs 636.100 millions) on account of increased capital expenditure incurred over the recent years.
Profit before tax was lower at Rs 1306.700 millions (Rs 1573.400 millions). Exceptional items resulted in a net income of Rs 12.800 millions. Profit after tax amounted to Rs 950.600 millions (Rs 1126.000 millions).
FOREIGN SUBSIDIARIES
CHINA
Sundram Fasteners (Zhejiang) Limited (SFZL), China manufactures high tensile fasteners and bearing housings.
Sales and other income during the year 2012 amounted to RMB 114.031 million (Rs 9,692.67 lakhs) as against RMB 118.39 million (Rs 8,55.966 millions) during 2011. The operations resulted in a net profit of RMB 5.323 million (Rs 42.009 millions) as against a profit of RMB 5.010 million (Rs 34.113 millions) in 2011.
The business environment in China deteriorated during the last quarter of 2012 and remained dull during the first four months of 2013. The Chinese economy is expected to recover ahead of economies of other countries. New products for existing customers and addition of new customers will enable SFZL to post sizable better results in future years. SFZL has retained certifications according to ISO /TS16949-2002 and ISO 9000-2000.
The Company has so far invested USD 13 million (Rs 5,68.760 millions) in the Equity capital.
GERMANY
German operations are carried out through 100% subsidiary
companies viz. Peiner Umformtechnik GmbH (Peiner), TVS Peiner Services GmbH
(TVSP) and PUT Gründstücks GmbH (PUTG). Peiner manufactures a wide range of
standard and special fasteners catering to the automotive, industrial and
construction sectors. TVSP is engaged in providing warehousing and logistical
services. PUTG owns the land and buildings from where Peiner operates. The
Company has invested Euro 8.724 millions (Rs 4,82.212 millions) in Equity capital besides
lending Euro 8.050 million (Rs 5,59.400 millions) to meet short term
requirements.
Revenues during the year 2012 amounted to Euro 54.54 million (Rs 37,63.082 millions) as against Euro 66.923 million (Rs 43,88.606 millions) during 2011. The operations resulted in a loss before depreciation and taxes of Euro 3.420 million (Rs 2,35.230 millions) as against loss of Euro 2.866 million (Rs 1,92.538 millions) during 2011. Loss after taxes amounts to Euro 4.546 million (Rs 3,12.914 millions) during 2012 as against Euro 4.270 million (Rs 2,88.191 millions) during 2011.
Uncertain economic conditions prevailing in Europe continued to impact German operations. There has been a slight improvement during 2013. Substantial improvement will only happen when European markets return to normal.
The Company has entered into a 50% joint venture with a German partner to set up a plant for manufacture of fasteners for wind energy generators (WEG) and has invested Euro 3.0 million by way of equity capital and loans.
As the emphasis on production of clean energy is likely to gather pace after the shutdown of nuclear plants, demand for WEG is likely to increase. The facility located at Hohenstein in eastern part of Germany has commenced operations during the first quarter of calendar year 2013.
UK OPERATIONS
Cramlington Precision Forge Limited (CPFL) UK, a 100% subsidiary of the Company, is engaged in manufacture of precision forged components for application in heavy vehicles for on-highway and off-highway applications.
The Company has invested GBP 1.9 million (Rs 1,52.314 millions) in CPFL.
Sales and other income during the year 2012 amounted to GBP 8.763 million (Rs 7,45.342 millions) as against GBP 9.346 million (Rs 7,03.642 millions) during 2011. CPFL made a net profit after tax of GBP 0.646 million (Rs 53.206 millions) as against a net profit of GBP 0.913 million (Rs 72.276 millions) during 2011. CPFL paid dividends totaling GBP 2,40,000 (Rs 21.031 millions) during December 2012.
Recessionary conditions in Europe affected sales volumes as the entire sales are made to customers in Europe.
Increased volumes and cost control is expected to help in achieving satisfactory results during 2013. Orders in the pipeline and development and manufacture of parts for a new customer will help further improve capacity utilisation. Outlook for 2013 appears to be better than 2012.
INDIAN SUBSIDIARIES
UPASANA ENGINEERING
LIMITED
Upasana Engineering Limited (UEL), a 100% subsidiary is engaged in the manufacture of spokes and nipples, dies and tools, automotive components and cold extruded components. During the year 2012-13, Sales and other income were Rs 7,78.989 millions as against Rs 8,02.603 millions in the previous year, Export Sales increased marginally to Rs 1,51.808 millions from Rs 1,49.107 millions. Exceptional income amounted to Rs 11.182 millions. Profit after Tax amounted to Rs 43.981 millions as against a net profit of Rs 39.355 millions in the previous year.
Recession in automotive industry in India and Europe resulted in decline in sales. With UEL acquiring new customers, the performance during 2013-14 is expected to be better.
SUNDRAM BLEISTAHL
LIMITED
Sundram Bleistahl Limited (SBL) is engaged in manufacture of sintered valve guides at its 100% export oriented unit at Hosur, Tamilnadu. Bleistahl Produktions GmbH and Co KG holds 24%. SBL caters to the needs of Bleistahl Produktions GmbH and Co KG in Germany. During the year 2012-13, Sales and other income amounted to Rs 2,04.877 millions as against Rs 2,35.209 millions in the previous year. SBL made a net profit of Rs 3.455 millions as against a net profit of Rs 19.820 millions in the previous year. The performance of the Company reflects the general economic situation in Europe.
The Company has invested Rs 53.200 millions towards 76% of the Equity capital of the subsidiary.
STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST
MARCH 2014
Rs. in Millions
|
Particulars |
Quarter ended |
Year ended |
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
1.Income from Operations |
|
|
|
|
(a) Net Sales/ Income from Operations |
5079.600 |
4674.700 |
19823.900 |
|
(b) Other Operating Income |
126.600 |
89.800 |
398.900 |
|
Total Income
From operations net (a+b) |
5206.200 |
4764.500 |
20222.800 |
|
2. Expenditure |
|
|
|
|
a. Cost of Raw Materials consumed |
2205.400 |
2148.400 |
8960.800 |
|
b. Changes in inventories of finished goods , work in progress and
stock in trade |
(101.900) |
(69.400) |
66.300 |
|
c. Employee benefit expenses |
592.700 |
537.600 |
2236.400 |
|
d. Depreciation and amortisation expense |
187.700 |
194.200 |
763.700 |
|
e. Stores and Tools consumed |
585.300 |
535.500 |
2161.300 |
|
f. Other Expenses |
1204.100 |
976.200 |
4236.800 |
|
Total Expenses |
4673.300 |
4322.500 |
18425.300 |
|
3. Profit from Operations
before Other Income, Finance Costs and Exceptional Items (1-2) |
532.900 |
442.000 |
1797.500 |
|
4. Other Income |
61.700 |
40.600 |
487.200 |
|
5. Profit from ordinary activities before Finance Costs and
Exceptional Items (3+4) |
594.600 |
482.600 |
2284.700 |
|
6. Finance Costs |
|
|
|
|
a.
Interest |
70.500 |
71.500 |
307.500 |
|
b.
Exchange (gain)/ loss on foreign currency |
28.100 |
26.100 |
278.300 |
|
7. Profit from Ordinary
Activities after Finance Costs but before exceptional Items (5-6) |
496.000 |
385.000 |
1698.900 |
|
8. Exceptional items |
(100.000) |
-- |
(100.000) |
|
9. Profit from Ordinary
Activities before Tax (7+8) |
396.000 |
385.000 |
1598.900 |
|
10. Tax Expenses |
121.500 |
98.600 |
390.000 |
|
11. Net Profit from Ordinary
Activities after tax (9+10) |
274.500 |
286.400 |
1208.900 |
|
12. Extraordinary Items (net of tax expenses) |
-- |
-- |
-- |
|
13. Net Profit (11-12) |
274.500 |
286.400 |
1208.900 |
|
14. Paid-up Equity Share Capital (face value of Re 1 each fully paid up) |
210.100 |
210.100 |
210.100 |
|
15 Reserve and Surplus |
|
|
7546.300 |
|
16 Earning Per Shares (EPS)-Re1 each (Before extraordinary items)* |
|
|
|
|
a)Basic |
1.31 |
1.36 |
5.75 |
|
b)Diluted |
1.31 |
1.36 |
5.75 |
|
17Earnings per Shares (EPS)-Re 1 each (After extraordinary items)* |
|
|
|
|
a)Basic |
1.31 |
1.36 |
5.75 |
|
b)Diluted |
1.31 |
1.36 |
5.75 |
|
15. Public shareholding |
|
|
|
|
- No. of shares |
106043090 |
106043090 |
106043090 |
|
- % of holding (to total shareholding) |
50.47 |
50.47 |
50.47 |
|
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered |
|
|
|
|
-Number of Shares |
-- |
-- |
-- |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
-- |
-- |
-- |
|
-% of Shares (as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
104085280 |
104085280 |
104085280 |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
100.00 |
|
-% of Shares (as a % of the total share capital of the Company) |
49.53 |
49.53 |
49.53 |
|
INVESTOR COMPLAINTS |
Quarter ended 31.03.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed if during the quarter |
2 |
|
Remaining unresolved the end of the quarter |
Nil |
STANDALONE STATEMENT
OF ASSETS AND LIABILITIES
|
Particulars |
As at 31.03.2014 |
|
|
|
Particulars |
|
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholder’s Funds |
|
|
|
a) Share Capital |
210100 |
|
|
b) Reserves & Surplus |
7546.300 |
|
|
c) Money received against share warrants |
-- |
|
|
Sub Total- Shareholders funds |
7756.400 |
|
2 |
Share application money pending allotment |
-- |
|
3 |
Minority Interest |
-- |
|
4 |
Non-current liabilities |
|
|
|
(a) long-term borrowings |
2289.600 |
|
|
(b) Deferred tax liabilities (Net) |
910.100 |
|
|
(c) Other long term liabilities |
-- |
|
|
(d) long-term provisions |
28.300 |
|
|
Sub Total- Non Current Liabilities |
3228.000 |
|
5 |
Current liabilities |
|
|
|
(a) Short term borrowings |
3690.200 |
|
|
(b) Trade Payables |
2157.600 |
|
|
(c) Other current liabilities |
1283.300 |
|
|
(d) Short term provisions |
375.800 |
|
|
Sub Total- Current Liabilities |
7506.900 |
|
|
TOTAL-EQUITY AND LIABILITIES |
18491.300 |
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed assets |
8030.000 |
|
|
(b) Non-current
Investments |
1231.600 |
|
|
(c) Long-term Loan and Advances |
347.400 |
|
|
(d) Other Non-current assets |
3.400 |
|
|
Sub-Total- Non current assets |
9612.400 |
|
2 |
Current assets |
|
|
|
a) Current Investments |
-- |
|
|
b) Inventories |
2901.800 |
|
|
c) Trade Receivables |
4057.600 |
|
|
d) Cash and cash equivalents |
92.100 |
|
|
(e) Short term loans and advances |
1782.700 |
|
|
(f) Other current assets |
44.700 |
|
|
Sub-Total- current assets |
8878.900 |
|
|
TOTAL ASSETS |
18491.300 |
Note:
1. The above financial result were reviewed and recommended by the Audit Committee and thereafter approved by the Board of Directors at its meeting held on May 30, 2014.
2. Sales for year ended March 31, 2014 includes exports of Rs. 7607.500 Millions
(Previous year - Rs. 6782.500 Millions). Other income includes foreign exchange
gains of Rs. 305.200 Millions (Last year same period Rs. 143.800 Millions).
3. The Board of Directors has decided to pay an interim dividend of Re. 1.00
per share (100%) for the financial year ended March 31, 2014 to the
members/beneficial owners as on the Record Date i.e. June 11, 2014.
4. Exceptional items (standalone) consists of provision for diminution in value
of investments in subsidiary of Rs. 1000 lakhs.
5. The Company operates in only one segment.
6. The figures of the last quarter are the balancing figures between the
audited figures in respect of the full financial year and the published year to
date figures up to the third quarter of the current financial year.
7. Figures for the previous periods have been regrouped, wherever necessary, to
conform to the current period's classification.
FIXED ASSETS
v
Aircraft
v
Land
v
Buildings
v
Plant and Machinery
v
Furniture, Fixtures and Office Equipments
v
Vehicles
v
Technical Know-how
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. |
|
|
1 |
Rs. |
|
Euro |
1 |
Rs. |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NTH |
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 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
58 |
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.