MIRA
INFORM REPORT
|
Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DYNAMATIC TECHNOLOGIES LIMITED (w.e.f. 1992) |
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Formerly Known
As : |
DYNAMATIC HYDRAULICS LIMITED |
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Registered
Office : |
Dynamatic Park, Peenya, Bangalore – 560058, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
07.03.1973 |
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Com. Reg. No.: |
08-002308 |
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Capital
Investment / Paid-up Capital : |
Rs. 54.100 Millions |
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CIN No.: [Company Identification
No.] |
L72200KA1973PLC002308 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRD01116D |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is in the business of manufacturing automotive components, hydraulics gear pumps, aerospace components and wind farm power generation. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having satisfactory track record. There seems some continuous dip in profitability of the company. However, the rating takes into account established market position of the
company across its business segments, its long term associations with reputed
client base and single source supplier status with its major customers
leading business stability. Share price are quoted high on stock exchange. Trade relations are reported as fair. Business is active. Payment
terms are usually correct. The company can be considered for normal business dealing 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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1 million
Indian tourists in 2012), Thailand (one million), the United Arab Emirates
().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
3/5 |
|
Rating Explanation |
The grade indicates that the company’s fundamentals are good. |
|
Date |
03.10.2013 |
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.
LOCATIONS
|
Registered Office/ Corporate Office : |
Dynamatic Park, Peenya, Bangalore – 560058, Karnataka, India |
|
Tel. No.: |
91-80-28394933 / 34 / 35 |
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Fax No.: |
91-80-28395823 |
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E-Mail : |
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Website : |
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Aerospace
Division : |
India Dynamatic Park Peenya, Bangalore
- 560 058, Karnataka, India Tel. No.: 91-80-28391517 UK Jarvis Street Barton Hill, Bristol BS5 9TR Tel. No.: +44 1179553610 Website: www.oldlandcnc.co.uk |
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Automotive
Division : |
JKM Automotive F67, C23~24, "JKM Park", SIPCOT Industrial Complex,
Irrungattukottai, Kanchipuram District - 602 105, Tamilnadu, India |
|
Tel. No.: |
91-44-47103000 |
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Hydraulics Division : |
India Dynamatic Park Peenya,
Bangalore - 560 058, Karnataka, India Tel. No.: 91-80-28394933/
34/ 35 India North Region 516A and 516B, 5th Floor,
World Trade Center, Barakhamba Lane, Babarlane, New Delhi - 110 001, India Tel. No.: 91-11-41527861/
62/ 63 Fax No.: 91-11-41527860 704, Sakar III, Opposite High Court, Navjivan Post, Ahmedabad - 380 014, Gujarat, India Tel. and Fax No.: 91-79-27544110 India West Region Dubash House, 15, J.N Heredia Marg, Ballard Estate, Mumbai – 400 001,
Maharashtra, India Tel No.: 91-22-43544500 to 549 Fax No.:91-22-43544544 UK Cheney Manor Industrial
Estate, Swindon Wiltshire, SN2 2PZ T: +44 (0) 1793 530101 India South
Region G–A, Eden Dale, No. 7, Bishop Waller’s Avenue (East), Mylapore, Chennai – 600 004, Tamilnadu, India Tel No.: 91-44-42109582 /
24986595 Fax No.: 91-44-24672258 149, Gunrock Enclave, Secunderabad - 500 009, Andhra Pradesh, India Tel No.: 91-40-27818225 Fax No.: 91-40-27718225 |
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Metallurgy Division : |
Dynametal® |
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Tel. No.: |
91-44-47103000 |
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Powermetric Division : |
Powermetric® Design JKM Science Center, Dynamatic Park Peenya, Bangalore - 560 058, Karnataka,
India |
|
Tel. No.: |
91-80-2839-4933/ 34/ 35 |
|
|
|
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|
JKM Ferrotech
Limited K-4, SIPCOT Phase II, Gummidipoondi, Thiruvallore Dist Tamil Nadu 601 201, India |
|
Tel. No.: |
91-44-27921382 / 90 |
|
Fax No.: |
91-44-27921335 |
DIRECTORS
AS ON: 31.03.2013
|
Name : |
Mr. Vijai Kapur |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Udayant Malhoutra |
|
Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Dr. K. Aprameyan |
|
Designation : |
Director |
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|
Name : |
Mr. Govind Mirchandani |
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Designation : |
Director |
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Name : |
Mr. S. Govindarajan |
|
Designation : |
Director |
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|
Name : |
Air Chief Marshal S. Krishnaswamy (Retired) |
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Designation : |
Director |
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Name : |
Ms. Malavika Jayaram |
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Designation : |
Director |
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Name : |
Mr. Claire Tucker |
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Designation : |
Director |
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Name : |
Mr. N. Rajagopal |
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Designation : |
Executive
Director and Chief Technology Officer |
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Name : |
Mr. Raymond Keith Lawton |
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Designation : |
Director |
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Name : |
Mr. Dietmer Hahn |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Sindhu M |
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Designation : |
GM Compliance, Legal and Company Secretary |
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Name : |
Mr. Hanuman Sharma |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31. 03.2014
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
800186 |
14.44 |
|
|
2301675 |
41.55 |
|
|
3101861 |
55.99 |
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|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
3101861 |
55.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10550 |
0.19 |
|
|
392 |
0.01 |
|
|
1099863 |
19.85 |
|
|
1110805 |
20.05 |
|
|
|
|
|
|
229858 |
4.15 |
|
|
|
|
|
|
727074 |
13.12 |
|
|
319198 |
5.76 |
|
|
51254 |
0.93 |
|
|
3796 |
0.07 |
|
|
33679 |
0.61 |
|
|
13779 |
0.25 |
|
|
1327384 |
23.96 |
|
Total Public shareholding (B) |
2438189 |
44.01 |
|
Total (A)+(B) |
5540050 |
100.00 |
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
5540050 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is in the business of manufacturing automotive components, hydraulics gear pumps, aerospace components and wind farm power generation. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Class of Goods |
Unit |
Installed Capacity* |
Actual Production |
|||
|
Gear Pumps |
Valves |
Castings |
Components |
|||
|
Hydraulic and precision engineering |
Nos. |
500,000 |
473,352 |
41,461 |
- |
27,538 |
|
Aluminium castings (melting capacity)** |
MT |
4,380 |
- |
- |
1,454 |
- |
|
Automotive components |
Nos. |
10,852,650 |
- |
- |
- |
9,438,697 |
|
|
|
|
473,352 |
41,461 |
1,454 |
9,466,235 |
* As certified by
the management and accepted by the auditors, this being a technical matter.
** Production of
the Aluminium castings (AC) includes 902,036 Nos. transferred to Automotive Components
(AUC) and Hydraulics and Precision Engineering division (HPE).
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v
State Bank of India v
State Bank of India, London v
Punjab National Bank (International) Limited v
Punjab national Bank v
DBS Bank Limited v
Standard Chartered Bank v
Citi Bank v
HDFC Bank v
ICICI Bank v
Axis Bank Limited v
Kotak Mahindra Bank Limited v
Yes Bank v
Export and Import Bank of India v
Bank of India v
Sachsen Bank |
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Facilities : |
(Rs.
In Millions)
* Secured by hypothecation of vehicle. The amount is payable in 36 monthly installments from the date of purchase. The rate of interest for the outstanding vehicle loan ranges from 9.75% p.a to 11.50% p.a. ** To promote the industries in backward area (i.e. @ Irungattukottai) Government of Tamil Nadu, announced a sales tax loan facility. To avail the facility, the Company has entered into an agreement with the Sales tax department for deferring payment of sales tax collected during financial year 2001-02 to 2005-06. The deferred amount will be repaid by 2014-15. The amount repayable in 2013-14 is Rs. 8.800 millions and accordingly disclosed in current maturities of long term debts in “Other current liabilities”. *** Deposits from shareholders carry interest rate in the range 10-11 % and are repayable within 1- 3 years from respective date of deposit. # Deposits from others carry interest rate in the range 10-11 % and are repayable within 1- 3 years from respective date of deposit. |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
B S R and Associates Chartered Accountants |
|
Address : |
Bangalore, Karnataka, India |
|
|
|
|
Subsidiaries : |
v
Dynamatic Limited, UK (DLUK) v
JKM Global Pte Limited, Singapore (JGPL) v
JKM Research Farm Limited (JRFL) v
JKM Erla Automotive Limited (JEAL) v JKM Erla Holdings GmbH, Germany v Eisenwerk Erla GmbH, Germany v
JKM Ferrotech Limited |
|
|
|
|
Associates: |
v Harasfera Design Private Limited |
|
|
|
|
Companies over which key management personnel or relatives of such
personnel are able to exercise significant influence (other related entities)
: |
v
JKM Holding Private Limited (JHPL) v
JKM Human Resources Private Limited (JHRPL) v
JKM Offshore (India) Private Limited (JOIPL) v
Udayant Malhoutra and Co Private Limited (UMCPL) v
Vita Private Limited (VPL) v
Wavell Investments Private Limited (WIPL) v Pramilla Estates
Private Limited (PEPL) |
CAPITAL STRUCTURE
AS ON: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
500000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.50.000 millions |
|
|
TOTAL |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5414703* |
Equity Shares |
Rs.10/- each |
Rs.54.147
Millions |
|
|
|
|
|
RECONCILIATION OF SHARES
OUTSTANDING AT THE BEGINNING AND AT THE END OF THE YEAR:
|
Particulars |
31.03.2013 |
|
|
Number of shares |
Rs. In Millions |
|
|
Shares outstanding at the beginning of the year |
5414703 |
54.100 |
|
Shares outstanding at the end of the year |
5414703 |
54.100 |
RIGHTS, PREFERENCES
AND RESTRICTIONS ATTACHED TO EQUITY SHARES:
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining asset of the Company after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
PARTICULARS OF
SHAREHOLDERS HOLDING MORE THAN 5% SHARES OF A CLASS OF SHARES:
|
Particulars |
31.03.2013 |
|
|
Number |
% of total share |
|
|
Equity shares of
Rs.10 each fully paid-up held by |
|
|
|
Udayant Malhoutra |
898048 |
16.59% |
|
JKM Holdings Private Limited |
912538 |
16.85% |
|
Udayant Malhoutra and Company Private Limited |
642011 |
11.86% |
|
JKM Offshore India Private Limited |
442071 |
8.16% |
|
Samena Special Situations Mauritius |
467455 |
8.63% |
|
FID Funds (Mauritius) Limited |
391908 |
7.24% |
|
Citigroup Global Markets Mauritius Private Limited |
373327 |
6.89% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
54.100 |
54.100 |
54.100 |
|
(b) Reserves & Surplus |
1508.000 |
1495.000 |
1661.700 |
|
(c) Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
125.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
1687.100 |
1549.100 |
1715.800 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1453.900 |
1986.800 |
1375.800 |
|
(b) Deferred tax liabilities (Net) |
280.100 |
268.800 |
262.000 |
|
(c) Other long term liabilities |
104.000 |
142.500 |
40.400 |
|
(d) long-term provisions |
15.600 |
20.200 |
6.900 |
|
Total Non-current Liabilities (3) |
1853.600 |
2418.300 |
1685.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1317.700 |
1196.700 |
920.800 |
|
(b) Trade payables |
875.800 |
954.200 |
572.200 |
|
(c) Other current
liabilities |
945.500 |
788.600 |
733.300 |
|
(d) Short-term provisions |
7.500 |
19.800 |
54.400 |
|
Total Current Liabilities (4) |
3146.500 |
2959.300 |
2280.700 |
|
|
|
|
|
|
TOTAL |
6687.200 |
6926.700 |
5681.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2669.100 |
2675.200 |
2532.300 |
|
(ii) Intangible Assets |
246.500 |
156.800 |
79.800 |
|
(iii) Capital
work-in-progress |
722.800 |
893.800 |
422.700 |
|
(iv) Intangible assets under development |
18.800 |
44.700 |
86.200 |
|
(b) Non-current Investments |
704.000 |
704.000 |
524.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
295.800 |
231.900 |
229.300 |
|
(e) Other Non-current assets |
38.300 |
65.600 |
39.300 |
|
Total Non-Current Assets |
4695.300 |
4772.000 |
3914.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
606.300 |
588.900 |
572.000 |
|
(c) Trade receivables |
685.700 |
958.900 |
868.300 |
|
(d) Cash and cash
equivalents |
62.800 |
78.800 |
19.500 |
|
(e) Short-term loans and
advances |
473.000 |
364.700 |
163.400 |
|
(f) Other current assets |
164.100 |
163.400 |
144.400 |
|
Total Current Assets |
1991.900 |
2154.700 |
1767.600 |
|
|
|
|
|
|
TOTAL |
6687.200 |
6926.700 |
5681.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4172.200 |
4524.900 |
3591.900 |
|
|
|
Other Income |
103.300 |
92.400 |
12.100 |
|
|
|
TOTAL (A) |
4275.500 |
4617.300 |
3604.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2089.900 |
2495.800 |
1941.900 |
|
|
|
Employee benefits |
469.200 |
549.200 |
519.100 |
|
|
|
Other expenses |
1011.000 |
907.400 |
517.800 |
|
|
|
Exceptional items |
0.000 |
17.500 |
0.000 |
|
|
|
Change in inventory of finished goods and work-in-progress |
(34.300) |
(21.800) |
(36.800) |
|
|
|
TOTAL (B) |
3535.800 |
3948.100 |
2942.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
739.700 |
669.200 |
662.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
462.500 |
394.800 |
240.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
277.200 |
274.400 |
421.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
262.900 |
251.100 |
204.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
14.300 |
23.300 |
217.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
11.300 |
6.800 |
69.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3.000 |
16.500 |
148.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
367.400 |
403.100 |
332.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
1.700 |
14.800 |
|
|
|
Proposed Final Dividend on Equity Shares |
0.000 |
10.800 |
21.600 |
|
|
|
Tax on Dividend |
0.000 |
7.200 |
8.900 |
|
|
|
Dividend on Equity Shares – Interim |
0.000 |
32.500 |
32.500 |
|
|
BALANCE CARRIED
TO THE B/S |
370.400 |
367.400 |
403.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of goods on F.O.B. basis |
1021.000 |
1124.900 |
672.800 |
|
|
|
Interest |
10.700 |
10.100 |
7.700 |
|
|
|
Management fee |
70.000 |
65.700 |
0.000 |
|
|
TOTAL EARNINGS |
1101.700 |
1200.700 |
680.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
406.000 |
702.000 |
542.900 |
|
|
|
Stores & Spares |
19.600 |
7.200 |
13.400 |
|
|
|
Capital Goods |
12.200 |
96.700 |
158.600 |
|
|
TOTAL IMPORTS |
437.800 |
805.900 |
714.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.55 |
3.05 |
27.41 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
933.600 |
1086.600 |
1101.200 |
|
Total Expenditure |
825.400 |
890.500 |
854.100 |
|
PBIDT (Excl OI) |
108.200 |
196.200 |
247.100 |
|
Other Income |
32.000 |
18.700 |
06.500 |
|
Operating Profit |
140.200 |
214.900 |
253.600 |
|
Interest |
122.900 |
141.200 |
159.600 |
|
Exceptional Items |
(15.000) |
0.000 |
0.000 |
|
PBDT |
02.300 |
73.700 |
94.000 |
|
Depreciation |
70.500 |
69.800 |
70.600 |
|
Profit Before Tax |
(68.200) |
03.900 |
23.400 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(68.200) |
03.900 |
23.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(68.200) |
03.900 |
23.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.12.2012 |
31.12.2011 |
|
PAT / Total Income |
(%) |
0.07 |
0.36 |
4.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.34 |
0.51 |
6.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.27 |
0.45 |
4.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.01 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.64 |
2.06 |
1.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.63 |
0.72 |
0.78 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
54.100 |
54.100 |
54.100 |
|
Reserves & Surplus |
1661.700 |
1495.000 |
1508.000 |
|
share Application money
pending allotment |
0.000 |
0.000 |
125.000 |
|
Net
worth |
1715.800 |
1549.100 |
1687.100 |
|
|
|
|
|
|
long-term borrowings |
1,375.800 |
1,986.800 |
1,453.900 |
|
Short term borrowings |
920.800 |
1196.700 |
1317.700 |
|
Total
borrowings |
2296.600 |
3183.500 |
2771.600 |
|
Debt/Equity
ratio |
1.339 |
2.055 |
1.643 |
YEAR ON YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
3591.900 |
4524.900 |
4172.200 |
|
|
|
25.975 |
(7.795) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Sales |
3,591.900 |
4,524.900 |
4,172.200 |
|
Profit |
148.400 |
16.500 |
3.000 |
|
|
4.13% |
0.36% |
0.07% |
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 |
No |
|
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 |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
Long term
borrowing |
|
|
|
Sales tax deferral loan ** |
18.100 |
26.000 |
|
Deposits from shareholders *** |
0.200 |
0.300 |
|
Deposits from others # |
19.500 |
16.100 |
|
|
|
|
|
Short term
borrowing |
|
|
|
Foreign currency buyer's credit ** |
32.400 |
77.600 |
|
Vendor bill discounting # |
242.700 |
259.000 |
|
Borrowings from shareholders## |
47.000 |
5.000 |
|
|
|
|
|
TOTAL |
359.900 |
384.000 |
|
Note:
* Cash credit and working capital demand loans from banks carry interest ranging between 12.50% - 16.25% p.a., computed on a monthly basis on the actual amount utilized, and are repayable on demand. These are secured by pari passu charge by way of hypothecation of stock and book debts of the Company. ** The Company has taken foreign currency buyer’s credit, which carry interest ranging between 1.29% - 2.154% for 180 days and are renewable at 6 monthly rest for a maximum of three years. # The Company has availed vendor bill discounting facility from banks which carry interest between 12% - 14.50% p.a., and is payable within 90 days from date of bills discounted. ## The loan carries interest @ 16.75% to 18.00 % p.a. and is repayable in various installments by 15 July 2013. |
||
|
CASE DETAILS:
|
COMPANY PERFORMANCE
Total income on a consolidated basis was Rs.14575.800 millions as against Rs.15185.000 millions in 2011-12. EBITDA on a consolidated basis was Rs.1432.400 millions as against Rs.1518.100 millions in 2011-12. Net Profit Before Tax on a consolidated basis was Rs.123.000 millions as against Rs.352.100 millions in 2011-12. Net Profit After Tax on a consolidated basis was Rs. (119.100) millions as against Rs.246.400 millions in 2011-12.
The Hydraulics and Precision Engineering business increased to Rs.3113.900 millions from Rs.3038.800 millions in 2012. Profit (Before Interest and Tax) declined from Rs.370.600 millions to Rs.208.300 millions. This includes the turnover from the Hydraulics division of Dynamatic Limited, UK, a subsidiary of the Company, to the extent of Rs.1283.800 millions and Profit (Before Interest and Tax) of (Rs.6.100) millions.
The Aerospace business grew from Rs.1412.300 millions to Rs.1715.100 millions and Profit (Before Interest and Tax) grew from Rs.457.300 millions to Rs.488.500 millions. This includes the turnover from the Aerospace division of Dynamatic Limited, UK, a subsidiary of the Company, to the extent of Rs.1072.200 millions and Profit (Before Interest and Tax) of Rs.243.700 millions.
The Aluminium Castings business declined from Rs.548.400 millions to Rs.448.800 millions and Profit (Before Interest and Tax) declined from (Rs.854) millions to a loss of (Rs.63.500) millions.
The Automotive business declined from Rs.11351.300 millions to Rs.10796.400 millions while Profit (Before Interest and Tax) declined from Rs.311.200 millions to Rs.233.700 millions. This includes the turnover from Eisenwerk Erla GmbH, a subsidiary of the Company to the extent of Rs.7684.400 millions and Profit (Before Interest and Tax) of Rs.444.800 millions.
Exports from India have gone down by 9% with sales of Rs.1021.000 millions against the previous year’s Rs.1124.900 millions.
SUBSIDIARIES
The Company has eight subsidiaries, the brief particulars of which are given below.
The structure of Dynamatic Technologies Limited and its subsidiaries as on March 31, 2013
INDIAN, WHOLLY OWNED
SUBSIDIARIES
JKM Research Farm Limited, India, (JKMRF) is a Wholly Owned subsidiary of the Company. It continues to be the Research and Development facilitator to the Company.
JKM Erla Automotive Limited, India (JKM Erla) Demerger of automotive division of the Company with JKM Erla is under evaluation.
JKM FERROTECH
LIMITED, INDIA (JFTL)
JFTL is into manufacturing of ferrous alloy and castings, having its operations in Gummidipoondi, Tamil Nadu. The facility has expertise in producing High Si-Mo automotive components and is certified to the highest quality standards specified by the Automotive Industry. The expertise in producing intricately shaped castings as well as the skill in handling ferrous alloys, particularly High Si-Mo and Ni-Resis makes JFTL a strong development partner for prototypes in Ferrous Alloy castings.
OVERSEAS, WHOLLY
OWNED SUBSIDIARIES
JKM Global Pte. Limited, Singapore, is a Wholly Owned subsidiary of the Company. It continues as an investment hub for overseas businesses.
Dynamatic Limited, Swindon, UK, (DLUK) is a Wholly Owned subsidiary of the Company held through JKM Global Pte. Limited, Singapore.
The UK facilities have been restructured by way of merging Oldland Aerospace with Dynamatic Limited.
AWARDS, RECOGNITION
AND IMPORTANT MILESTONES
Dynamatic® Hydraulics UK has received the ‘Highest CNH Business Growth Award’ which was presented at the 1st CNH and IVECO P and S Suppliers Convention in France during April 2012.
During 2011, Dynamatic® Hydraulics UK conducted a ‘Gear Pump Seminar’ to John Deere engineers in Waterloo. This seminar was to increase the understanding of gear pump operation and application.
Dynamatic-Oldland Aerospace TM Division, UK - Successful re-negotiations on existing business contracts has resulted in long term agreements for a further 5 years.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
ECONOMY
Despite improved global financial conditions and reduced short-term risks, the world economy continues to expand at a subdued pace in 2013, with the IMF projecting Global GDP growth at a little above 3%. Following the marked downturn over the past two years, global economic activity is expected to slowly gain momentum in the second half of 2013 and 2014 on the back of accommodative monetary policies in developed and developing economies. Most world regions are likely to see a moderate pick-up in activity, however growth will continue to be below potential. What was until now a two-speed recovery - strong in emerging markets and developing economies but weaker in advanced economies - is becoming a three-speed recovery. The projected growth for emerging markets and developing economies is higher than that of advanced economies, where there appears to be a growing bifurcation between the United States and the 17 countries Euro Zone.
The IMF growth forecasts for the emerging markets and developing economies is 5.3 % in 2013 and 5.7 % in 2014. Growth in the United States has been forecast at 1.9 % in 2013 and 3.0 % in 2014. In contrast, growth in the Euro Area has been projected at –0.3 % in 2013 and 1.1 % in 2014. The negative growth forecast for the Euro Zone not only reflects peripheral weakness but an unstable core as well. While Germany’s growth is strengthening, it is still forecast at less than 1% in 2013.
South Asia’s GDP is projected to expand by 4.7 per cent in 2013 and by 5.4 per cent in 2014 and the expected recovery, though moderate, will be based partly on an upturn in private demand following the recent easing of monetary policy, and a gradual strengthening of exports amidst slowly improving global conditions. Structural factors such as stubbornly high inflation, large fiscal deficits, political uncertainties, fragile security conditions, and transport and energy constraints will keep growth and investment in the region below potential.
In India, full-year growth slowed to 5.1 per cent in 2012 owing to ongoing weakness in investment, a significant deceleration in household consumption and sluggish exports. While India’s growth is predicted to have bottomed out, the recovery will be slower than expected, with economic activity forecast to expand by a little over 5% in 2013 and 6.1% in 2014. Significant capital outflows from India in an environment of already weak growth, rupee depreciation which in turn increases external stability risks and constrained policy rate cuts, and slow progress in undertaking much needed policy reforms have been identified as the causes weighing down potential growth. Other key factors include political uncertainty and reform momentum, high cost of capital that can possibly reverse the gains realized on macro stability indicators like inflation, current account deficit and fiscal deficit; and a continued slowdown in new project inflows delaying a capex cycle recovery.
Looking ahead, although the brakes behind the recent under performances are expected to ease, it will do so gradually due to the continuing growth disappointments in major emerging market economies like India and China, a deeper recession in the Euro Zone and a slower U.S. expansion than expected. Although the short-term risks associated with the current situation in the euro area, the fiscal adjustments in the United States and the economic slowdown in large developing countries have diminished, they have not entirely disappeared. At the same time, new medium-term risks have emerged, including possible adverse effects of unconventional monetary measures in developed economies on global financial stability, which have the potential to once again derail the feeble recovery of the world economy.
OVERVIEW, STRUCTURE
and DEVELOPMENT
HYDRAULICS INDUSTRY
Agriculture is the dominant sector of Indian economy, which determines the growth and sustainability. 2/3 of the Indian population still relies on agriculture for employment and livelihood. Yet this has remained as a tobe- explored Sector. Small scale agriculturist holding less than 5-10 acres of land should be able to reach the current tractor prices.
Robust rural liquidity and good monsoons always play a major role in increasing the demand for tractors and hence cyclical downturns are often witnessed. Last year, tractor sales lost traction. The last year had witnessed poor Monsoon in south and western India and this had serious impact on the sale of tractors, especially where rain fall was either poor or delayed. Obviously this reduced the demand for tractor pumps and also for pumps required in the aftermarket. This lean period was well utilised by the company in development of new products / valves, which helped then reaching a modest target of Rs.1620.000 millions and certainly this will bear fruits in the coming years too. The company’s presence in other sectors such as lube and oil pumps for power generation group, did help in ramping up the sales for the year. The keen interest shown by global major players producing high horse power engines / generators in Dynamatic® Hydraulics for considering it as a strategic supplier is appreciable.
Dynamatic® Hydraulics which designs, develops, manufactures and markets a variety of Hydraulic pumps, motors, hitch control valves and related products for the Indian and overseas tractor markets, is one of the largest manufacturers of Hydraulic pumps in the world. The Company has sustained its market leadership position for the last 35 years and has been working towards enhancing its brand equity in the Hydraulics Gear Pump market by consolidating and expanding its product range.
Dynamatic® Hydraulics designs and manufactures cast iron pumps for the earth moving and construction equipment sectors, which are witnessing steady growth in India. These CI pumps have been designed and validated by Dynamatic® Hydraulics, UK, and have an advantage in terms of pressure ratings, higher flow and competitive prices. The Company plans to increase the production of these pumps in a steady manner.
Besides the above segments, Dynamatic® Hydraulics produces pumps for Industrial applications such as machine tools and power packs, a sector which demands variety to meet varied applications. Volumes involved are relatively low but the returns are appreciable.
AUTOMOTIVE INDUSTRY
It has been a period of recession in the Global and Indian automotive Industry.
In India, except for Hyundai Motor India Limited which exports 40% of its vehicles and engines, it has been a turbulent period for the entire automotive industry.
Chennai, also known as the ‘Detroit of India” has the largest chunk of car manufacturing industries, accounting for 60% of the country’s automotive exports. Hyundai continues to be the single largest exporter of cars to over 100 countries, all of which are manufactured at their facility in Chennai. Nissan has started manufacturing cars from Chennai and has made it one of their largest export hubs. Daimler has been very successful.
While there is an opportunity for steep growth, India continues to face challenges due to high investment on production facilities, availability of electricity, skilled manpower, rising fuel costs and interest rates. The key to success in the Automotive industry is to improve labour productivity and flexibility as well as capital efficiency. Qualitative manpower, the ability to make infra structural improvements and raw material availability also plays a major role. Access to the latest and most efficient technologies and techniques will endow major players with a competitive advantage. The ability to utilize manufacturing plants to optimum levels and understanding the implications of Government policies are also essential for growth in India’s Automotive Industry.
JKM Automotive™, the automotive division of the Company, is located in Chennai and possesses state-ofthe- art manufacturing technology to produce and supply high quality automotive components to leading OEMs including Hyundai Motor India Limited, Fiat India, Tata Motors, Ford Motor Company, John Deere, Cummins, Nissan and Honeywell on a single source basis.
The unique locational advantage offered by Chennai has enabled JKM Automotive™ to forge strong partnerships with each of its customers. With backward integration due to acquisition of Ferrous Foundry, Automotive unit has better advantage on its supply chain management.
AEROSPACE AND DEFENCE
INDUSTRY
Whilst the global economic crisis has had a significant impact, prospects for the sector look positive, with the market predicted to be valued at US$1190 billion by end of 2014. This is underpinned by the large order backlog of both Boeing and EADS. Defence is the largest segment accounting for around 71%, with the rest comprising of the civil aviation sector. The US is the largest market accounting for 59% of the global aerospace and defence sector, followed by Europe with 22% share and Asia-
Pacific with 19%.
The Aerospace market in the UK is estimated to generate Ł20 billion of sales per annum and 250,000 jobs. The growing Aerospace market is being supported and developed by world class companies such as BAE and Rolls Royce and a whole raft of high quality businesses such as GKN Aerospace, Airbus UK, Spirit Aero Systems.
COMMERCIAL INDUSTRY
Despite the negative sentiments due to the Eurozone crisis and worries about China’s growth stalling, the Aerospace market in 2012 has beaten expectations of being a washout. The giant mega-deals of recent years have resulted in huge production backlogs for aircraft manufacturers. Airbus is slated to set up a fourth A320 plant in the US, while Boeing is boosting production 30% to reduce its backlog.
The civil aerospace is now very much in production and delivery mode, rather than racking up mammoth sales. The single-aisle market is the fastest-growing sector of the world aircraft fleet. Boeing predicted that the vast majority of new jet sales during the next 20 years – around 69% - would be of Single-Aisle Aircraft like the Boeing 737 and the Airbus A320, which normally seat around 150 passengers. The demand from emerging markets in Asia and the low-cost carriers in Europe and North America are expected to drive those future sales.
Rapidly expanding Indian carriers, including a crop of new discount airlines, have ordered close to $40 billion worth of big jets over the past two years. Airbus has bagged 295 orders from Indian customers, while Boeing has secured 138 orders. The value of Boeing’s order book, which is close to $20 billion at list prices, is nearer to Airbus’ approximate $22 billion in Indian orders. The growth potential of the Indian aviation sector has led global manufacturers to recognize that India would continue to be one of the fastest growing aviation markets in the world. With the average growth rate next 10 years pegged at 12.2%, the number of new aircrafts required by Indian carriers places the country at the fifth largest in the world.
AIRBUS
Airbus-built aircrafts have become a key element in the operations of Indian based airlines. Starting with the 1960 delivery of an A300 to Indian Airlines, the fleet of Indian carriers now include both Single-Aisle and Wide- Body Aircraft and is poised to expand with the future introductions of A350 and A380 by King Fisher Airlines, whose deliveries start next year.
In recognition of the country’s strategic importance, Airbus has pledged to play a long term role in the development of the Indian aviation sector. Apart from establishing an engineering center and a full-fledged flight training center, Airbus also works directly with Indian Companies in the design and manufacture of Aero- Structures and encourages its major tier-one partners to do so, as appropriate. Airbus continues to pursue other potential areas of co-operation with India, including air traffic control, management and safety management.
BOEING
Boeing is continually exploring new business and investment opportunities and potential partnership businesses in India. In addition to direct work placement, Boeing collaborates with industrial partners in lean manufacturing techniques. The Boeing program management includes best practices as a part of its drive to bring the best of Boeing to India and the best of India to Boeing.
Bell Helicopters
Bell Helicopters, an industry–leading producer of commercial and military aircraft, is globally recognized for world-class customer service, innovation and superior quality. Bell has experienced considerable growth in both commercial and military sectors. This increase in the demand of Bell Helicopter existing products and new program developments resulted in the need to investigate for new Strategic Suppliers in the commodities of Minor and Major Structures, Bonded Panels and Tooling. In the light of the above, Bell has identified the Company as a potential supplier that may be interested in becoming a key strategic supplier to Bell and share in their tremendous growth.
Dynamatic-Oldland AerospaceTM, India, is a pioneer and a recognized leader in the Indian Private Sector for the development of Complex Aero-Structures and manufacture of Aircraft Parts and Accessories. Dynamatic- Oldland AerospaceTM is vertically integrated to manufacture CNC components, Sheet Metal Components, Soft Tooling, Hard Tooling, Jig Manufacturing and has Comprehensive Engineering capabilities. The Aerospace Division has the largest infrastructure in the Indian Private Sector for the manufacture of complex Aero-Structures and is is AS9100 approved, NADCAP approved for Heat Treatment and Non Destructive Testing and Airbus / Boeing approved. This is the first time such capabilities have been developed in the Indian private sector.
Dynamatic-Oldland AerospaceTM has successfully executed important projects for defence agencies of national importance such as DRDO, HAL, etc. Products include the wing and rear fuselage of the LAKSHYA, India’s first pilotless target aircraft and ailerons and flaps for the HJT-36 intermediate jet trainer (IJT). The largest defence program in India is the manufacture and assembly of major airframe structures for the Su-30MKI fighter-bomber. There are 6 different control surfaces - Vertical Fins, Ventral Fins, Horizontal Stabilizers, Slats, Canard and Airbrake - that go on to the aircraft. To meet the production demand, the Jigs have been duplicated and all the assemblies are being relocated to the new facility in Nasik, where the complete Sukhoi Aircraft is assembled by HAL.
The Company partners Boeing for the manufacture of cabinets to house critical power and mission equipment for the P-8 program and was recently awarded a contract for the manufacture the Aft Pylon and Cargo Ramp Assemblies for Boeing’s CH-47F Chinook helicopter.
On the commercial aircraft business, Dynamatic-Oldland AerospaceTM has achieved global single source status for the supply of Flap Track Beam assemblies for the Airbus Single Aisle Aircraft family. The Company is working closely with Spirit AeroSystems, the world’s largest Aero- Structure manufacturer, as an industrial partner in this project.
Dynamatic-Oldland AerospaceTM also signed a MoU with Bell Helicopter for the Bell 407 Air Frame Cabin Assembly, Air Frame Component and Details. The estimated business volume of the work proposed is approximately $243 million USD over a ten year period starting in 2013. Dynamatic® has already qualified itself as well as an eco-system of sub-tier suppliers under the
BELL PRODUCTION SYSTEM and has commenced trial production of airframe components and detailed parts.
Dynamatic Oldland AerospaceTM, UK is a demonstrated leader in the development of exacting Airframe Structures and Precision Aerospace Components. It has two unique state of the art facilities in Bristol and Swindon possessing complex 5 Axis machining capabilities for the manufacture of Aerospace components and tooling. They also offer a fast track facility working with all major primes and manufacturing holding fixtures. They specialise in Reverse Engineering, Fixtures and Design Manufacturing.
This Division is a certified supplier to Airbus UK, GKN Aerospace Europe and USA, Spirit Aerosystems, Boeing, Magellan Aerospace, GE Aviation Systems, Lockheed Martin and Augusta Westlands. They are supported by BSI ISO 9001:2000 and AS 9100 revc. Dynamatic-Oldland AerospaceTM has been accredited with Environmental Management System (EMS) certification ISO:14001.
The induction of Oldland Aerospace into the Dynamatic® group has conferred the business with the strategic locational advantage required for the forging of strong direct relationships with leading Aerospace Companies in Europe and Americas.
The Aerospace Division has been continuously expanding to build capabilities in large Aero-Structures and Complex Engineering both in the UK and India. UK has seen recent expansion into its Swindon facility and this facility is now manufacturing Main Landing Gear parts and Over Wing details for the airbus fleet. As pioneers in the Indian and UK Private Sectors, with a demonstrated track record for the manufacture and development of complex Aero- Structures, the Company enjoys the first mover advantage and has formulated a strategic growth plan for its future.
Dynamatic’s aerospace business offers its customers a total solution of high capex, highly skilled multi axis machining from the UK and high value added, highly skilled sheet metal details and assembly in India, giving its customer offset credits with best value from two cost models. The strategy is to continue to consolidate on its leadership position and emerge as technological leaders in multi axis high speed long bed machining with fully automated processes, which in turn will reduce costs and
maximise on productivity.
OUTLOOK
The overall outlook for next financial year April 2013 to March 2014 looks positive. The Company’s reputation for developing innovative, cost-effective and high quality products continues to grow, both in the Domestic and Overseas markets and has resulted in increasing order intakes. With the Company going global, both in terms of expansion as well as sales, it becomes very relevant to understand the outlook overseas – especially in UK and Germany.
UK
The overall outlook for the next accounting year April 2013 looks positive. According to the H. M. Treasury Office of Budget Responsibility, the outlook for the UK economy is to grow through the remainder of 2013 by 0.6%. There is then a gradual upturn forecast in 2014 with GDP anticipated at 1.8% at the end of next year. This is a reduction and downward trend of earlier forecasts which were set initially last December at 1.2% and 2.0% respectively for 2013 and 2014.
Business investment is forecast to make a relatively important contribution to the recovery in growth in the medium term at least. The low inflation is an important factor to this growth forecast and with the recent depreciation of the pound the CPI inflation rate will probably rise towards the end of this year and then gradually fall again through 2014 and 2015. In terms of what this all means to the Company is somewhat mixed in that, particularly in hydraulics, that their Eurozone business will continue to be challenging. However the market in the UK is expected to be stable and in the U.S. there is small growth forecast where the North American economy continues to grow.
GERMANY
With the global economic downturn caused by the euro crisis, a phase of an economic slowdown in China as well as instability of the US fiscal policy, Germany recorded only a slight growth of the GDP of 0.7 % to EUR 2.645 bn. in 2012. The growth rate slowed down significantly especially towards the end of the year which also caused the beginning of the year 2013 to proceed considerably weaker than expected.
Nevertheless, a slight growth is expected in Germany for the year 2013 which might accelerate towards the end of the year and which, at 0.6 - 0.8 %, is at a similar level to the previous year. The reason for this is the still present risk of an aggravation of the euro crisis as well as the related reluctance in the fields of incoming orders, investment and consumption. The situation is also expected to improve by the end of the year 2014, with a considerable plus of the GDP of 1.9 %. To sum up, a continuous growth at a low level is expected in the next few years despite some risks.
In 2013, the German automotive industry faces a challenging year. Globally speaking, an increase by approx. 3 % to 70 million vehicles is to be expected, with the German automotive industry also being able to expect a growth due to its high and further increasing global market share especially in Asia and North America. However, in the European and domestic market, stagnation, possibly with a decline, must be expected in 2013. For 2014, further growth, also in Europe, is predicted carefully, because existing overcapacities and market saturation will reduce by then.
The turbocharger industry will continue to grow disproportionate to the automotive sector. The development of all leading OEMs is concerned with the efficiency increase of petrol engines, especially due to legal requirements with regards to a reduction of the CO2 emissions. Another important component besides the increased combustion temperatures is the use of turbocharging technology. It has to be assumed that more than 80 % of all newly developed high-volume engines are equipped with a charger. Therefore, from a present day perspective, a growth rate between 30 – 40 % is to be expected until the year 2015.
PRESS RELEASES/ NEWS:
Dynamatic
Technologies and AeroVironment Sign Teaming Agreement for Unmanned Aerial
Vehicles
Dynamatic Technologies and AeroVironment Inc. (NASDAQ: AVAV), a world leader in Unmanned Aircraft Systems, have signed a Teaming Agreement to address the growing global demand for Unmanned Aircraft Systems. The agreement provides for the manufacture of UAVs in India, which will enable Dynamatic Technologies and AeroVironment to work together on a number of business opportunities for potential customers including the Ministry of Defence and the Ministry of Home Affairs.
Dynamatic Technologies is a demonstrated leader in the Indian private sector
for Aerospace and Defence products, having partnered with the Ministry of
Defence and its associated agencies like Hindustan Aeronautics Limited on key
projects including the Sukhoi Su-30MKI Fighter Bomber, the IJT-36 Intermediate
Jet Trainer, and the Lakshya Pilotless Target Aircraft.
"Teaming with AeroVironment is strategic to our efforts to build
capabilities in the Aerospace Segment"said Udayant Malhoutra, CEO &
Managing Director, Dynamatic Technologies Limited "The combination of
AeroVironment's technical capabilities and unmatched experience in Unmanned
Aircraft Systems and Dynamatic's precision engineering capabilities, along with
the strong brand equity of both Companies, will facilitate the availability of
world-class UAVs"
With over 24,000 UAVs delivered worldwide, AeroVironment has the largest
operational deployment of UAVs in the world and its products are extensively
used by the military forces of the United States and 24 other countries.
"This teaming agreement is a key component of AeroVironment's continued
international growth," said Roy Minson, AeroVironment Senior Vice
President and General Manager of the company's unmanned aircraft systems
business segment. "We believe that Dynamatic Technologies' successful
track record makes them an ideal teammate for introducing our leading small
unmanned aircraft systems to this market,"
Dynamatic
Technologies Commended by Cummins for Excellent Support & Responsiveness
The Hydraulics Division of Dynamatic Technologies has been presented with a Memento of Appreciation by Cummins Inc. for Excellent Support and Responsiveness with respect to the worldwide supplies of Lube and Water Pumps to Cummins. The Award which was presented at the recently held Cummins India ABO Supplier Conference 2013 in Pune, India, recognizes the quick response times and the timely support provided by Dynamatic Hydraulics™, India, with respect to the supplies of Lube and Water pumps to various Cummins facilities worldwide as well as the consistent maintenance of '0 PPM Defects' for the past three years, in the world wide supplies of Lube Pumps.
Boeing India
President Visits Dynamatic Technologies
On 9 May 2013, Dynamatic-Oldland Aerospace™, India, hosted a high level delegation from Boeing comprising of Mr. Pratyush Kumar, President - Boeing India, Boeing International Corp India Pvt. Ltd, Mr. Mark Beaumont, Director Enterprise Sourcing, Boeing International Corp India Pvt. Ltd. and Mr. Eric Gordon, Supplier Management - Defense, Space & Security, Boeing International Corp India Pvt. Ltd. The visit which follows the award of business to Dynamatic Technologies from The Boeing Company for the manufacture of Aft Pylon and Cargo Ramp Assemblies for Boeing's CH-47F Chinook Helicopter, included discussions between the two teams on the new business project as well as a tour of the facilities.
Dynamatic
Technologies Signs MoU & Model Purchase Contract with Boeing
Dynamatic Technologies Limited has signed a Memorandum of Understanding and a Model Purchase Contract with The Boeing Company for the manufacture of Aft Pylon and Cargo Ramp Assemblies for Boeing’s CH-47F Chinook Helicopter. The potential work is slated to commence by the end of 2014.
FIXED ASSETS
TANGIBLE ASSETS
v
Land and Development
v
Buildings
v
Plant and Machinery
v
Measuring Instruments
v
Electrical Installations
v
Data Processing Equipment
v
Office Equipment
v
Tools, Dies and Moulds
v
Vehicles
v
Motor Boat
INTANGIBLE ASSETS
v
Application Software
v
Prototype Development
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.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
43 |
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.