1. Summary Information
|
|
|
Country |
India |
|
Company Name |
KENNAMETAL INDIA LIMITED |
Principal Name 1 |
Mr. M.N. Bhagwat |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Bhagya Chandra Rao |
|
|
|
Registration # |
08-001546 |
|
Street Address |
8/9th Mile Tumkur Road, Post Bag 7300, Banglore-560073,
Karnataka |
||
|
Established Date |
21.09.1964 |
SIC Code |
-- |
|
Telephone# |
91-80-28394321 |
Business Style 1 |
Manufacturer |
|
Fax # |
91--80-23997572 |
Business Style 2 |
Trader |
|
Homepage |
-- |
Product Name 1 |
Hard Metal |
|
# of employees |
458 ((Approximately) |
Product Name 2 |
Machine Tools |
|
Paid up capital |
Rs.
219,782,400 /- |
Product Name 3 |
-- |
|
Shareholders |
Total
shareholding of Promoter and Promoter Group-75.00%, Total Public
shareholding-25.00% |
Banking |
Corporation Bank Limited |
|
Public Limited Corp. |
Yes |
Business Period |
50 years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba
(49) |
|
Related
Company |
|||
|
Relation
|
Country |
Company
Name |
C.E.O |
|
Holding company |
Switzerland |
Metruit A.G. Zug, |
|
2. Summary
Financial Statement
|
Balance Sheet as of |
30.06.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,850,100,000 |
Current Liabilities |
895,000,000 |
|
Inventories |
950,200,000 |
Long-term Liabilities |
000 |
|
Fixed Assets |
1,255,500,000 |
Other Liabilities |
146,300,000 |
|
Deferred Assets |
16,200,000 |
Total Liabilities |
1,041,300,000 |
|
Invest& other Assets |
132,600,000 |
Retained Earnings |
2,943,500,000 |
|
|
|
Net Worth |
3,163,300,000 |
|
Total Assets |
4,204,600,000 |
Total Liab. & Equity |
4,204,600,000 |
|
Total Assets (Previous Year) |
4,322,800,000 |
|
|
|
P/L Statement as of |
30.06.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
4,893,800,000 |
Net Profit |
148,500,000 |
|
Sales(Previous yr) |
5,623,300,000 |
Net Profit(Prev.yr) |
683,900,000 |
MIRA INFORM
REPORT
|
Report Date : |
15.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KENNAMETAL INDIA LIMITED |
|
|
|
|
Registered
Office : |
8/9th Mile Tumkur Road, Post Bag 7300, Banglore-560073,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.06.2013 |
|
|
|
|
Date of
Incorporation : |
21.09.1964 |
|
|
|
|
Com. Reg. No.: |
08-001546 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.219.782 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109KA1964PLC001546 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRK05838A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCK4472B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Trader of Hard Metal and Hard Metal Products and
Machine Tools |
|
|
|
|
No. of Employees
: |
458 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘”KENNAMETAL INC, USA”. It is an established
company having satisfactory track record. The company’s sales turnover has declined resulting into sharp dip in
profit of the company during financial year 2013. However, the rating reflects company’s established market position as
the largest player in the carbide tools industry in India marked by financial
and managerial support that company receives from parent company and sound
general financial position of the company. Trade relations are fair.
Business is active. Payment terms are reported to be usually correct. The company can be considered
for business dealings at usual trade terms and condition.. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 |
A1+= Short term Borrowing Debt |
|
Rating Explanation |
Very Strong degree of safety and lowest credit risk. |
|
Date |
13 September, 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
31-03-2013.
INFORMATION DENIED BY
|
Name : |
Mr. Nageshvar Rao |
|
Designation : |
Account Manager |
|
Contact No.: |
91-80-28394321 |
|
Date : |
06.05.2014 |
LOCATIONS
|
Registered Office/ Factory : |
8/9th Mile, Tumkur Road, Post Bag 7300,
Bangalore – 560 073, Karnataka, India |
|
Tel. No. : |
91-80-28394321 |
|
Fax No. : |
91--80-23997572 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
No. 30, “Ramana Residency”, 4th Cross, Sampige Road, Malleswaram, Bangalore - 560
003, Karnataka, India |
|
Tel. No. : |
91-80 - 23460815 to 818 |
|
Fax No. : |
91-80 - 23460819. |
|
E-Mail : |
DIRECTORS
As on : 31.03.2013
|
Name : |
Mr. M.N. Bhagwat |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Bhagya Chandra Rao |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr.
John Chang |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr.
Vinayak K. Deshpande |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr.
Gerald Goubau |
|
Qualification : |
M.
S.EM, and MBA |
|
Experience : |
28
Years of Experience in Sales and Marketing, Engineering, Industries and
General management |
|
|
|
|
Name : |
Mr.
B. Anjani Kumar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Kundan K. Lal |
|
Designation : |
Company Secretary |
|
|
|
|
Management Team : |
Mr. Bhagya Chandra Rao Mr. Vikram Chopra Mr. Dibesh Singh Deo Mr. D. Parameswara Reddy Mr. D. Sarathy Mr. K. Chandrashekhar Sharma |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Category of Shareholder Category of Shareholder |
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
16483680 |
75.00 |
|
|
16483680 |
75.00 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
16483680 |
75.00 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3101580 |
14.11 |
|
|
|
|
|
|
1040 |
0.00 |
|
|
|
|
|
|
3102620 |
14.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
230180 |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1517711 |
6.91 |
|
|
|
|
|
|
561925 |
2.56 |
|
|
|
|
|
|
82124 |
0.37 |
|
|
|
|
|
|
65589 |
0.30 |
|
|
|
|
|
|
16535 |
0.08 |
|
|
2391940 |
10.88 |
|
|
|
|
|
Total Public shareholding (B) |
5494560 |
25.00 |
|
|
|
|
|
Total (A)+(B) |
21978240 |
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) |
21978240 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Trader of Hard Metal and Hard Metal Products and
Machine Tools |
GENERAL INFORMATION
|
No. of Employees : |
458 (Approximately) |
|
|
|
|
Bankers : |
·
Corporation Bank Limited ·
HDFC Bank Limited ·
ICICI Bank Limited ·
Standard Chartered Bank |
|
|
|
|
Facilities : |
-- |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and
Company Chartered Accountants |
|
Address : |
5th floor, Tower “D”, The
Millenia, 1 & 2 Murphy Road, Ulsoor, Bangalore – 560008, Karnataka, India |
|
|
|
|
Holding Company: |
Meturit A.G. Zug, Switzerland |
|
|
|
|
Ultimate Holding
Company: |
Kennametal Inc, USA |
|
|
|
|
iii) Enterprises
holding, directly or indirectly substantial interest in Meturit A.G. Zug |
·
Kennametal Widia GmbH Company. KG, Germany
(Formerly Widia GmbH, Germany) ·
Kennametal Hertel Europe Holding GmbH, Germany* ·
Kennametal Holding GmbH, Germany * ·
Kennametal Europe GmbH , Germany ·
Kennametal Europe GmbH, Switzerland ·
Kennametal Europe Holding GmbH , Germany ·
Kennametal Luxembourg Holding S.a.r..l,,
Luxembourg ·
Kennametal Widia Holdings Inc., USA ·
Kennametal Holdings Europe Inc., USA |
|
|
|
|
Fellow
Subsidiaries: |
·
Kennametal Australia Pty Limited ·
Kennametal Produktions GmbH and Company. KG ·
Kennametal (Singapore) Pte. Limited. ·
Kennametal Korea Company Limited. ·
Kennametal Japan Limited. ·
Kennametal Limited, Canada ·
Kennametal South Africa (Pty) Limited, South
Africa ·
Kennametal Engineered Products B.V. ·
Kennametal (Thailand) Company Limited, Thailand ·
Kennametal DO Brasil LTDA, Brazil ·
Kennametal Hard Point (Shanghai) Limited, China ·
Kmt Distribution Services Asia Pte. Limited.,
Singapore ·
Kennametal Shared Services Private Limited. ·
Kennametal (China) Company Limited, China ·
Hanita Metal Works Limited, Israel ·
Kennametal Shared Services, GmbH, Germany ·
Kennametal Extrude Hone Corporation, USA ·
Kennametal Extrude Hone ·
Kennametal Extrude Hone Limited (England), UK ·
Kennametal (Xuzhou) Co. Limited., China ·
Kennametal (Malaysia) Sdn. Bhd., Malaysia ·
KMT Logistics GmbH, Germany ·
Kennametal Stellite India Private Limited., India ·
Kennametal Engineered Products B.V, The Netherlands ·
Extrude Hone Service Center, China |
CAPITAL STRUCTURE
As on 30.06.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21,978,240 |
Equity Shares |
Rs.10/- each |
Rs.219.782 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21,978,240 |
Equity Shares |
Rs.10/- each |
Rs..219.782 Millions |
|
|
|
|
|
1.
Rights, preferences and restrictions attached to shares
The
Company has only one class of equity shares having a par value of `10
per share. Each shareholder is eligible for one vote per share held. The
dividend proposed by the Board of Directors is subject to approval of
the
shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, if any, in proportion to their shareholding.
2. Shares held by ultimate
holding company and holding company
|
PARTICULRS |
No. of Shares |
|
Kennametal Inc. USA, the ultimate holding company |
5274840 |
|
Metruit AG., Zug,
Switzerland, the holding company |
11208840 |
|
(Details of shares held by shareholders holding more than 5%
of the
aggregate shares in the Company |
% |
|
Kennametal Inc. USA, the ultimate holding company [Note (i) below] |
24.00% |
|
Metruit AG., Zug, Switzerland, the holding company |
51.00% |
|
Reliance Capital Trustee Company Limited [Note (ii) below] |
8.40% |
(i) Kennametal Inc.
USA, the ultimate holding company, sold an aggregrate of 2,892,333 equity
shares of Rs. 10 each during March 2013 through the Offer
For Sale (OFS) method prescribed by the
Securities & Exchange Board of India (SEBI) thereby reducing its shareholding
in the Company to 24% from 37.16%.
(ii) 1,350,850 shares
are held by Reliance Equity Opportunity Fund comprising 6.15% of the
shareholding and 495,841 shares are held by Reliance Tax Saver (ELSS) Fund
comprising 2.26% of the shareholding
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
219.800 |
219.800 |
219.782 |
|
(b) Reserves & Surplus |
2943.500 |
2,795.000 |
2,749.638 |
|
(c) Money
received against Share WARRANTS |
0.000 |
0.000 |
0.000 |
|
|
0.000 |
0.000 |
0.000 |
|
(2)
Share Application money pending allotment |
|
|
|
|
Total Shareholders’
Funds (1) + (2) |
3163.300 |
3,014.800 |
2,969.420 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term Borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred Tax Liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other Long Term Liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term Provisions |
93.500 |
93.600 |
0.000 |
|
Total Non-current Liabilities (3) |
93.500 |
93.600 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short Term Borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade Payables |
640.000 |
641.800 |
0.000 |
|
(c) Other Current
Liabilities |
255.000 |
515.300 |
958.312 |
|
(d) Short-term Provisions |
52.800 |
57.300 |
160.596 |
|
Total Current Liabilities (4) |
947.800 |
1,214.400 |
1,118.908 |
|
|
|
|
|
|
TOTAL |
4,204.600 |
4,322.800 |
4,088.328 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible Assets |
1,245.900 |
1,290.800 |
1066.588 |
|
(ii) Intangible Assets |
9.600 |
14.500 |
0.000 |
|
(iii) Capital
Work-in-Progress |
126.100 |
106.500 |
159.016 |
|
(iv)
Intangible assets under Development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
6.500 |
681.753 |
|
(c) Deferred Tax Assets (net) |
16.200 |
18.700 |
9.733 |
|
(d) Long-term Loan and Advances |
293.000 |
210.000 |
0.000 |
|
(e) Other Non-current Assets |
6.900 |
6.600 |
0.000 |
|
Total Non-Current Assets |
1,697.700 |
1,653.600 |
1,917.090 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current Investments |
6.500 |
0.000 |
0.000 |
|
(b) Inventories |
950.200 |
1,033.600 |
742.275 |
|
(c) Trade Receivables |
886.800 |
1,028.900 |
1,084.162 |
|
(d) Cash and Cash
Equivalents |
537.100 |
448.300 |
199.931 |
|
(e) Short-term Loans and
Advances |
116.600 |
155.800 |
139.978 |
|
(f) Other Current Assets |
9.700 |
2.600 |
4.892 |
|
Total Current Assets |
2,506.900 |
2,669.200 |
2,171.238 |
|
|
|
|
|
|
TOTAL |
4,204.600 |
4,322.800 |
4,088.328 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4,893.800 |
5,623.300 |
5069.468 |
|
|
|
Other Income |
80.700 |
104.500 |
121.005 |
|
|
|
TOTAL (A) |
4,974.500 |
5,727.800 |
5,190.473 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost
of Materials consumed |
1,451.800 |
1,595.000 |
0.000 |
|
|
|
Materials |
0.000 |
0.000 |
1970.772 |
|
|
|
Purchase
of Stock in trade |
1,131.200 |
1,277.200 |
0.000 |
|
|
|
Manufacturing and Other Expenses |
0.000 |
0.000 |
1718.305 |
|
|
|
Changes in Inventories of Finished goods, Work
in progress and Stock in trade |
(1.500) |
(214.500) |
0.000 |
|
|
|
Employee Benefits expense |
900.700 |
837.600 |
0.000 |
|
|
|
Other Expenses |
1,029.600 |
1,016.400 |
0.000 |
|
|
|
TOTAL (B) |
4,511.800 |
4,511.700 |
3689.077 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
462.700 |
1,216.100 |
1501.154 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.242 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
462.700 |
1,216.100 |
1501.154 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
266.900 |
226.700 |
225.784 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
195.800 |
989.400 |
1275.370 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.300 |
305.500 |
389.860 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
148.500 |
683.900 |
885.510 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1,305.700 |
1,328.800 |
1425.864 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
68.400 |
88.600 |
|
|
|
Dividend |
0.000 |
549.500 |
769.239 |
|
|
|
Tax on Dividend |
0.000 |
89.100 |
124.790 |
|
|
|
Total |
0.000 |
707.000 |
982.629 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1,454.200 |
1305.700 |
1328.745 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on F.O.B. basis |
536.800 |
418.300 |
332.492 |
|
|
|
Reimbursement of expenses |
11.700 |
13.800 |
10.204 |
|
|
|
|
|
|
|
|
|
TOTAL EARNINGS |
548.500 |
432.100 |
342.696 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
952.600 |
1,151.800 |
1564.595 |
|
|
|
Stores & Spares |
135.000 |
131.700 |
203.544 |
|
|
|
Capital Goods |
135.600 |
282.400 |
132.678 |
|
|
TOTAL IMPORTS |
1,223.200 |
1,565.900 |
1564.595 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
6.75 |
NA |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
PAT / Total Income |
(%) |
2.99 |
11.94 |
17.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.00 |
17.59 |
25.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.82 |
23.61 |
39.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.062 |
0.328 |
0.430 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.64 |
2.20 |
1.94 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.06.2011 |
30.06.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
219.782 |
219.800 |
219.800 |
|
Reserves & Surplus |
2,749.638 |
2,795.000 |
2,943.500 |
|
Net
worth |
2,969.420 |
3,014.800 |
3,163.300 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.06.2011 |
30.06.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5069.468 |
5,623.300 |
4,893.800 |
|
|
|
10.925 |
-12.973 |
NET PROFIT MARGIN
|
Net
Profit Margin |
30.06.2011 |
30.03.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5069.468 |
5,623.300 |
4,893.800 |
|
Profit |
885.510 |
683.900 |
148.500 |
|
|
17.47% |
12.16% |
3.03% |
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 |
NO |
|
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 |
NO |
|
20] |
Export / Import details
(if applicable) |
NO |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
YES |
|
24] |
Banking facility details |
NO |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
YES |
|
28] |
Incorporation details, if
applicable |
YES |
|
29] |
Last accounts filed at
ROC |
YES |
|
30] |
Major Shareholders, if
available |
YES |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
30.06.2013 (Rs.
In Millions) |
30.06.2012 (Rs.
In Millions) |
|
Income
Tax matters [Note (a)] |
176.300 |
125.900 |
|
Excise
Duty/Service Tax matters under dispute |
11.100 |
9.300 |
|
Sales
Tax matters under dispute |
8.600 |
4.800 |
Notes:
a) Relates to transfer
pricing adjustments made by the Income Tax Department for the assessment years
2007-08, 2008-09 and 2009-10, which is disputed by the Company and the matter
is lying under appeal with The Income Tax Appellate Tribunal, Bangalore/ The
Commissioner of Income Tax, Appeals, Bangalore. The Company has paid “under
protest” an aggregate of RS. 1489 (2012: Rs. 1237) to the Income Tax Department in this regard.
b)
There are certain non-quantifiable industrial disputes pending before various
judicial authorities.
GENERAL INFORMATION
Kennametal India
Limited (“the Company”) is incorporated under The Companies Act 1956. The
Company is in the business of manufacturing and trading of hard metal and hard
metal products, and machine tools. The Company has its registered office and a
manufacturing facility at Bangalore and sells its products and services through
sales and support offices. The Company is a public limited company listed on
the Bombay
Stock
Exchange (BSE).
OPERATING RESULTS
Uncertainty in the
Indian economy particularly in Automobile Industry has resulted in a drop in
the Company’s revenue in FY13. During the year, the revenue of the Company has
declined by 13.5% from Rs. 57.278 Millions to Rs. 49.745 Millions as compared to the previous year. This decline in
revenue has resulted in under utilisation of manufacturing capacity. As a
consequence of reduction in Sales and under utilisation of the capacity, the
profit before Tax has declined from Rs. 9.894 Million to
Rs.1.958 Million during FY 13.The Company does not have any subsidiaries.
INDUSTRY STRUCTURE AND
DEVELOPMENTS/ OPPORTUNITIES & THREATS
The Company is a
leading manufacturer of hard metal products and machine tools which cater to
the needs of a wide variety of manufacturing and other industries such as
transportation, general engineering, aerospace defence, energy, power
generation equipment, earthworks, mining and construction. It seeks to provide
a competitive edge to its customers through a wide variety of standard high
quality products as well as items customized to their requirements such as
special purpose machines, metalworking tools, customized tooling solutions and
engineered products.
The Company’s mission
is “to deliver productivity to customers seeking peak performance in demanding
environments by providing innovative custom and standard wear-resistant
solutions, enabled through its advanced material sciences, application
knowledge and commitment to a sustainable environment”.
Indian Economy has
significantly slowed down after achieving growth rates of 7 to 8% in past few
years. The GDP growth for FY13 has been at 5% down from 6.2% in FY12. The
Manufacturing sector is affected adversely with IIP growing at just 1.2% for
the FY13 v/s >3.5% levels for prior year.
The Auto and Auto
ancillary industries which contribute to maximum revenue for the Company have
been the most affected industries during the year. Overall the automobile
industry has seen a drop of around 5% in production during FY13 in comparison
to FY12. The de growth is higher at 17% if the two wheeler industry is
excluded.
The slowdown in the
economy can largely be attributed to policy inaction by the Government,
unfriendly, unclear tax regime, inflation, high borrowing costs, stalled
infrastructure projects and restrictive monetary policies. The Rupee has depreciated significantly due
to adverse current account deficit because of poor investor confidence, QE
threat, lower FDI and FII investments. Rupee depreciation also has a
significant impact on the input costs of the Company particularly the raw
materials and energy costs.
Export markets for hard
metals have not been buoyant either. All the regions of the United states,
Europe and Asia have been soft with hardly any growth. Demand for the Inserts
particularly from China was very low during the year.
Though the economy is
under severe pressure with the rating agencies threatening a downgrade, the
Government is yet to put in place effective reforms and policies to restore
business confidence and lead to strong growth. It is also important to put in
place deeper structural and administrative reforms (such as GST act, Labor reforms etc.) to regain momentum in economy
and leverage the India growth potential. Sectors such as automotive and capital
goods have been faced with considerable demand slowdown that is unlikely to
turnaround quickly. Continuing lack of action in a pre-election year may
further act deterrent to realise the full potential of the economy in the
immediate future.
The Company does not
expect the economic scenario to change significantly in the short term and
hence is focused on special growth and operational initiatives to mitigate the
impact of demand reduction. Besides the automobile industry the Company is
focused in diversifying and de-risking the business by foray into sectors such
as Aerospace, Energy, Mining and Machine Tools, etc.
Export market has been
showing signs of marginal improvement particularly, the United states market.
The European and Asian markets are expected to remain soft (as in Fy13) in
short to medium term.
OPERATIONS
The Financial Year
2012-13 was one of the most challenging years in the last decade for the
Company. The economic downturn coupled with poor manufacturing scenario
resulted in very low capacity utilization for most of the OEMs and vendors like
us in the supply chain. Most of the customers whom the Company serves have been
operating at very low capacity and in few cases below 50% level .As a
consequence of the factors stated above the Company witnessed a negative growth
of 13% for the financial year. The de growth is primarily driven by Hard Metals
(19%) and is partially offset by positive growth from Machining Solution Group
(MSG). Drop in hard metals sales has resulted in a capacity utilisation of just
55% during the year.
The Company continues
to pursue the dual brand strategy (KENNAMETAL, WIDIA) and it is expected that
the full potential of the strategy would be realised once the economy rebounds.
Customers can now take advantage of two strong product portfolios to enhance productivity.
In its efforts to achieve a competitive advantage, new and technologically
advanced products are introduced every year by the Company both in Widia &
Kennametal brand portfolio. The Company’s objective is to generate >40% of
the revenue from new products. For FY13 the new products sale stands at 45% of
the revenues.
OUTLOOK
Macro-economic scenario
continues to be weak for the country. Rupee depreciation continues to put huge
pressure on oil prices in the Country dampening the growth prospects of
automobile sector .Growth in short term will depend a lot on Government actions
to pump up the economy but considering fact that this is an election year it is
unlikely that Government will roll out any bold policies. In this backdrop it
is reasonable to expect the current business scenario to continue in short
term. The Company realises the situation and hence is focused on specific
initiatives to drive the growth and maintain market share. As said earlier, the
United States is showing some marginal improvement in terms of economy and
hence the exports are likely to improve in this region. However, the European
and Asian markets will remain soft and hence may not contribute significantly
for growth in forthcoming year.
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Machinery:
Ø
Data Processing
Ø
Equipment
Ø
Others
·
Furniture and Fixtures
·
Leasehold Improvements
·
Office Equipment
·
Vehicles
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.59.87 |
|
|
1 |
Rs.100.98 |
|
Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
KRU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
49 |
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.