MIRA INFORM REPORT
|
Report Date : |
19.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
CUMMINS INDIA LIMITED |
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Registered
Office : |
Kothrud, Pune – 411038, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
17.02.1962 |
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Com. Reg. No.: |
11-012276 |
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Capital
Investment / Paid-up Capital : |
Rs.554.400 Million |
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CIN No.: [Company Identification
No.] |
L29112PN1962PLC012276 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of Diesel Engines and Filtration Equipments. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects company’s healthy operational risk profile marked
by strong liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
A1 |
A1 |
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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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
Not Available
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
31-03-2014.
INFORMATION DENIED
Management Non-Co-Operative (91-20-25385435)
LOCATIONS
|
Registered Office / Factory 1 : |
Kothrud, Pune – 411038, Maharashtra, India |
|
Tel. No.: |
91-20-25385435/ 25380240 |
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Fax No.: |
91-20-25380125 |
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E-Mail : |
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Website : |
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Corporate Office : |
Tower A, 5th Floor, Survey No.21, Balewadi, Pune – 411045, |
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Tel. No.: |
91-20-67067000 |
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Fax No.: |
91-20-67067015 |
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Website : |
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Factory 2 : |
Plot No. 19/25A, Silver Industrial Estate, Bhimpore, Daman
396210, India |
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Factory 3 : |
Plot No. 206/2, Off. Nagar Road, Haveli, Pune-411014, Maharashtra,
India |
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Factory 4 : |
Gat No. 311/B&1B, Kasar Amboli, District Pune - 412111, Maharashtra,
India |
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Factory 5 : |
35A/1/2 Erandwane, Pune - 411038, Maharashtra, India |
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Factory 6 : |
MIDC Phaltan, Village Survadi, District Satara, Maharashtra, India |
DIRECTORS
|
Name : |
Anant J. Talaulicar |
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Designation : |
Chairman and Managing Director |
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Name : |
Antonio Leitao |
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Designation : |
Director |
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Name : |
Edward Pence |
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Designation : |
Director |
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Name : |
Rajasekhar Menon |
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Designation : |
Director |
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Name : |
Mark Smith |
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Designation : |
Director |
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Name : |
Nasser Munjee |
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Designation : |
Independent Director |
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Name : |
P.M.Telang |
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Designation : |
Independent Director |
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Name : |
P.S. Dasgupta |
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Designation : |
Independent Director |
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Name : |
Rajeev Bakshi |
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Designation : |
Independent Director |
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Name : |
Venu Srinivasan |
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Designation : |
Independent Director |
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Name : |
J.M. Barrowman |
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Designation : |
Alternate Director to Edward Pence |
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Name : |
Pradeep Bhargava |
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Designation : |
Alternate Director to Mark Smith |
KEY EXECUTIVES
|
Name : |
Mr. Pradip Phansalkar |
|
Designation : |
Senior Manager, Secretarial |
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Name : |
Mr. Amit Atre |
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Designation : |
General Manager - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as
a % of Total No. of Shares |
|
(A) Shareholding of Promoter and
Promoter Group |
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|
|
|
|
|
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|
683 |
0.00 |
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|
683 |
0.00 |
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|
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|
141372000 |
51.00 |
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|
141372000 |
51.00 |
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Total shareholding of Promoter and
Promoter Group (A) |
141372683 |
51.00 |
|
(B) Public Shareholding |
|
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|
|
|
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|
31805749 |
11.47 |
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|
20193716 |
7.28 |
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|
48916339 |
17.65 |
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|
100915804 |
36.41 |
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|
|
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|
7715405 |
2.78 |
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|
24141422 |
8.71 |
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|
1762535 |
0.64 |
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|
1292151 |
0.47 |
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|
867942 |
0.31 |
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|
54128 |
0.02 |
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|
3472 |
0.00 |
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|
320996 |
0.12 |
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|
45613 |
0.02 |
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|
34911513 |
12.59 |
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Total Public shareholding (B) |
135827317 |
49.00 |
|
Total (A)+(B) |
277200000 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A+B+C) |
277200000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Diesel Engines and Filtration Equipments. |
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Products : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
PRODUCTION STATUS = Not Applicable
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
Not Divulged |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
Mutha Towers, 5th Floor, Suite No. 8, Airport Road,
Yerwada, Pune – 411006, Maharashtra, India |
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Holding Company : |
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Fellow subsidiaries
: |
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Associate : |
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Joint Venture : |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.2/-each |
Rs.800.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
277200000 |
Equity Shares |
Rs.2/-each |
Rs.554.400
Million |
Notes:
a. Reconciliation of
number of shares
|
Equity Shares |
31.03.2014 |
|
|
No. of Shares |
Amount (Rs. in
Millions) |
|
|
Balance as at the beginning and end of the year |
277200000 |
554.400 |
b. Rights,
preferences and restrictions attached to shares
The Company has only one class of equity shares having a par value of Rs.2 per share. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.
c. Details of
shareholders holding more than 5% of the aggregate shares in the Company
|
Particulars |
31.03.2014 |
|
|
No. of Shares |
% of holding |
|
|
Equity shares of Rs.2 each fully paid Cummins Inc., the holding company |
141372000 |
51.00% |
|
Life Insurance Corporation of India (Through various schemes) |
17927497 |
6.47% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
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I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
554.400 |
554.400 |
554.400 |
|
(b) Reserves &
Surplus |
25097.100 |
23312.900 |
19877.100 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
25651.500 |
23867.300 |
20431.500 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
465.100 |
327.800 |
0.000 |
|
(c) Other long term
liabilities |
201.900 |
191.400 |
147.000 |
|
(d) long-term provisions |
1170.900 |
1293.500 |
1006.500 |
|
Total Non-current
Liabilities (3) |
1837.900 |
1812.700 |
1153.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
4851.100 |
5493.400 |
5166.200 |
|
(c) Other current
liabilities |
1856.700 |
2034.600 |
1516.500 |
|
(d) Short-term provisions |
3530.100 |
3488.200 |
2749.200 |
|
Total Current Liabilities
(4) |
10237.900 |
11016.200 |
9431.900 |
|
|
|
|
|
|
TOTAL |
37727.300 |
36696.200 |
31016.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
9175.200 |
4895.800 |
4589.500 |
|
(ii) Intangible Assets |
16.300 |
38.500 |
59.600 |
|
(iii) Capital
work-in-progress |
957.600 |
1207.900 |
496.700 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
533.900 |
533.900 |
755.100 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
69.500 |
|
(d) Long-term Loan and Advances |
6879.500 |
4726.300 |
3429.400 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
17562.500 |
11402.400 |
9399.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
4419.600 |
5741.700 |
5220.400 |
|
(b) Inventories |
5513.400 |
5303.500 |
5676.100 |
|
(c) Trade receivables |
7820.300 |
8549.900 |
6783.400 |
|
(d) Cash and cash
equivalents |
864.900 |
3546.500 |
2235.000 |
|
(e) Short-term loans and
advances |
1525.000 |
2061.900 |
1652.500 |
|
(f) Other current assets |
21.600 |
90.300 |
49.700 |
|
Total Current Assets |
20164.800 |
25293.800 |
21617.100 |
|
|
|
|
|
|
TOTAL |
37727.300 |
36696.200 |
31016.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
39766.700 |
45893.800 |
41172.200 |
|
|
Other Income |
1777.100 |
2067.200 |
1233.300 |
|
|
TOTAL |
41543.800 |
47961.000 |
42405.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
22808.400 |
27018.100 |
24466.400 |
|
|
Purchases of
Stock-in-Trade |
1484.300 |
1854.300 |
2576.800 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(51.600) |
1.900 |
(589.000) |
|
|
Employees benefits
expense |
3396.200 |
3386.200 |
3039.400 |
|
|
Other expenses |
5162.100 |
5284.500 |
4706.100 |
|
|
TOTAL |
32799.400 |
37545.000 |
34199.700 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
8744.400 |
10416.000 |
8205.800 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
41.800 |
46.100 |
54.100 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
8702.600 |
10369.900 |
8151.700 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
527.500 |
472.500 |
419.800 |
|
|
|
|
|
|
|
Less/ Add |
Exceptional Items |
0.000 |
615.900 |
514.400 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
8175.100 |
10513.300 |
8246.300 |
|
|
|
|
|
|
|
Less |
TAX (I) |
2174.900 |
2872.200 |
2333.600 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
6000.200 |
7641.100 |
5912.700 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
|
|
|
|
|
Dividend |
3603.600 |
3603.600 |
3049.200 |
|
|
Tax on Dividend |
612.400 |
601.700 |
494.700 |
|
|
Total |
4216.000 |
4205.300 |
3543.900 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
12583.100 |
13159.700 |
12361.600 |
|
|
Freight |
|
|
|
|
|
Insurance |
|
|
|
|
|
TOTAL EARNINGS |
12583.100 |
13159.700 |
12361.600 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
521.600 |
658.800 |
576.500 |
|
|
Machinery Spares |
9.200 |
10.500 |
11.200 |
|
|
Tools, Stores, etc. |
9.600 |
7.800 |
133.400 |
|
|
Components and Stores
parts |
4247.300 |
4471.900 |
3942.800 |
|
|
Capital Goods |
141.900 |
62.300 |
191.800 |
|
|
TOTAL IMPORTS |
4929.600 |
5211.300 |
4855.700 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
21.65 |
27.57 |
21.33 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
14.44 |
15.93 |
13.94 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
21.98
|
22.69 |
19.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.56 |
30.08 |
27.77 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32 |
0.44 |
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.97 |
2.30 |
2.29 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
554.400 |
554.400 |
554.400 |
|
Reserves & Surplus |
19877.100 |
23312.900 |
25097.100 |
|
Net worth |
20431.500 |
23867.300 |
25651.500 |
|
|
|
|
|
|
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 |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
41172.200 |
45893.800 |
39766.700 |
|
|
|
11.468 |
(13.351) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
41172.200 |
45893.800 |
39766.700 |
|
Profit |
5912.700 |
7641.100 |
6000.200 |
|
|
14.36% |
16.65% |
15.09% |
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 |
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 |
Yes |
|
18] |
Major customers |
Yes |
|
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 |
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 |
No |
LITIGATION DETAILS:
HIGH COURT OF
BOMBAY
|
CASE DETAILS BENCH:-BOMBAY Presentation Date :- 20.12.2013 |
||||||||||||||||||||
|
||||||||||||||||||||
|
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10352228 |
18/07/2014 * |
1,320,000,000.00 |
State Bank Of India |
Industrial Finance Branch, Tara Chambers, Pune, Maharashtra - 411003, INDIA |
C12752069 |
|
2 |
90089545 |
28/03/1990 |
10,300,000.00 |
Bank Of Maharashtra |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
3 |
90089535 |
15/03/1990 |
3,400,000.00 |
The United Western Bank Limited |
GANESH NAGAR, PUNE, Maharashtra - 411038, INDIA |
- |
|
4 |
90089531 |
28/02/1990 |
16,000,000.00 |
State Bank Of India |
COMMERCIAL BRANCH, JUSTICE G.N VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
5 |
90089449 |
04/03/1989 |
10,000,000.00 |
State Bank Of India |
COMMERCIAL BRANCH, BOMBAY, Maharashtra, INDIA |
- |
|
6 |
90087620 |
30/09/1988 |
1,730,000.00 |
The United Western Bank Limited |
GANESH NAGAR BRANCH, PUNE, Maharashtra - 411038, INDIA |
- |
|
7 |
90089367 |
13/10/1987 |
1,217,800.00 |
Bank Of Maharashtra |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
8 |
90083474 |
25/06/1987 |
1,000,000.00 |
Bank Of Maharashtra |
KARVE ROAD, PUNE, Maharashtra - 411104, INDIA |
- |
|
9 |
90089336 |
19/04/1987 |
560,300.00 |
The United Western Bank Limited |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
|
10 |
90089335 |
18/04/1987 |
285,100.00 |
The United Western Bank Limited |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
FINANCIAL RESULTS:
During the Financial Year 2013-14, net revenue from operations was Rs.39766.700 Million as compared to Rs.45893.800 Million during the previous year (13% lower). Exports and other foreign exchange earnings stood at Rs.12583.100 Million as compared to Rs.13159.700 Million during the previous year (4% lower). Profit after tax decreased to Rs.6000.200 Million from Rs.7641.100 Million recorded for the previous year (21% lower).
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry Structure
and Developments
Economic Trends and
Implications
- The Indian economic growth rate was flat with GDP growth estimated at 4.9%1) in FY 2013-14, as compared to a decade low of 4.5% in 2012-13. This was largely due to a slowdown in infrastructure investments, high inflation, political uncertainty, drop in foreign investment in the first three quarters of the fiscal and a weakening currency.
- FY 2013-14 saw the rupee decline to an all-time low as a result of the announcement of US tapering its simulative quantitative easing, slowing domestic economic growth as well as deficit spending on the part of the Indian government. Measures from the RBI helped arrest the fall of the rupee only to a very limited extent. The Current Account Deficit improved due to curbs on gold imports and lower domestic demand.
- The fiscal deficit improved due to reduction of fuel subsidies. The government took small and delayed steps to improve the business environment such as faster clearance of infrastructure projects, relaxation of FDI norms and new gas pricing guidelines. Measures are also being taken to lift mining bans which have adversely hit the exports of the country.
- Manufacturing output took a hit due to low demand and high interest rates. In spite of good monsoons resulting in lower food inflation, the repo rate was maintained at 8% to rein in core inflation.
- In the long term, India’s growth story remains intact, supported by a positive demographic dividend, rapid urbanization and increasing domestic consumption driven by a growing middle class.
- Post the elections in 2014, it is expected that the new government will take strong actions to revive growth.
Opportunities and
Threats
Key Opportunities
Power Generation:
- The average energy deficit in India has been 4.2% with peak power deficit of 4.5% and the power capacity addition has been around 12.5 GW in the last year.
- CPCB II - the second set of lower emission norms applicable to generator sets below 800 kW, have been announced by the Central Pollution Control Board, to be effective from July 1, 2014. These norms are likely to change the competitive landscape as the new norms demand greater technological capabilities.
- New global products launched have resulted in additional export opportunities for diesel and gas products. With the product from India gaining confidence globally, the Company is receiving repeat orders from its global customers.
Industrial:
- The increase in budget allocation towards infrastructure announced in the recent budget is likely to help in the overall infrastructure development in the medium term.
- The Supreme Court has removed the ban on mining blocks in Goa, as a result of which the business in Mining and Marine is likely to witness some increase.
- Infrastructure debt funds have been promoted to provide finances for infrastructure projects. These ought to have positive implications on the construction market.
- Budgetary support to Railways increased from Rs.260000.000 Million in BE FY 2013-14 to Rs.290000.000 Million in FY 2014-15 which would help the railways business. The increase in government spends on safety, modernization and fuel-efficiency will create additional opportunity for the Company in 2014. About 35-40% growth is expected over FY 2013-14 in the Diesel Electric Multiple Units (DEMU) segment.
- Increase in Defense expenditure is likely to boost the Marine Naval and Defense businesses. In FY 2013-14, 19 Oil and Gas blocks were given out for exploration.
- The Company will continue to dwell on indirect exports which will drive growth while the domestic market is expected to grow during the latter half of the next fiscal.
Automotive:
- The M&HCV market (Medium and Heavy commercial vehicles - GVW >7.5 Ton) shrank by 20% in FY 2013-14 over the previous year. This was mainly driven by lower GDP growth, high interest rates and further impact of fuel subsidy reduction on diesel. The market scenario continues to be uncertain. Excise duty benefit given by the government has only moderately helped in improving the situation.
- The M&HCV space has
seen the entry of new players, thereby increasing competition and price
pressure.
- During the year, The Company launched a new product to attempt to change the dynamics within M&HCV, such as introduction of 4-Cylinder engines in the traditional 6-Cylinder applications in the 14T and 31T space.
- The Company launched electronic products with the increasing acceptability due to improved fuel economy and maintenance intervals.
Distribution:
- Emission regulations (CPCB II norms) and a shift to electronic engines is likely to improve the opportunities for the Distribution Business through increased sales of electronic parts and service opportunities.
- Improved customer reach, enhanced network capabilities and continuous improvement of service delivery and quality remains the key to drive profitable growth through Customer Support Excellence.
- The Company is continuing to invest heavily in modern capabilities to support long term growth. One major initiative is the introduction of a Common Dealer Operating System (CDOS) which will enable better data, information visibility and business integration across the dealer network and centrally by Cummins.
- The Company is also continuing to invest in Training Centers across the nation to ensure well trained technicians who will provide state-of–the-art support to the Company’s products.
Exports:
- Working with Cummins Inc., the Company was able to implement the identified opportunity with Brazil and Latin American markets for Heavy Duty engines. With the success of supplying Heavy Duty engines, new opportunities are being explored to supply High Horsepower engines to the Latin American market. The Company will continue to explore new geographies and hence markets to strengthen the exports portfolio.
- The Company successfully identified opportunities related to components supply to China. The Company will continue to build on this and increase the business in the coming years. Efforts continue to consolidate and maximize supplies of components from the Company by utilizing cost efficiencies.
Outlook and
Initiatives for the Current Year and Thereafter
Power Generation:
- Domestic market sentiments continue to be weak for capital goods which includes the genset market in the short term. The domestic power generation business is unlikely to see volume increase in the forthcoming financial year. However, with the increased export offerings, the Company is more optimistic about its low kVA exports business.
- With CPCB implementing more stringent environmental norms in the current financial year, the Company is positioned favourably in the competitive landscape as pioneers in producing engines with higher fuel-efficiency and cleaner technology. This will however lead to significant cost increase and subsequent price increases.
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH SEPTEMBER
2014
|
Particular |
Quarter Ended (Rs. in Million) |
|
|
30.09.2014 |
|
Income from Operations |
|
|
Net Sales/Income from Operations |
11171.300 |
|
Other Operating Income |
269.300 |
|
Total Income from operations (net) |
11440.600 |
|
|
|
|
Expenses |
|
|
(a) Cost of materials consumed |
6796.700 |
|
(b) Purchase of stock-in-trade |
263.400 |
|
(c) Changes in Inventories of Finished Goods, work in progress and stock in trade |
(2.400) |
|
(d) Employee benefit expenses |
1017.000 |
|
(e) Depreciation and amortization expenses |
203.900 |
|
(f) Other Expenses |
1466.700 |
|
Total Expenses |
9745.300 |
|
Profit from Operations before Other
Income, Finance costs and Exceptional item |
1695.300 |
|
Other Income |
736.400 |
|
Profit/ Loss from Ordinary
Activities before Finance costs and Exceptional item |
2421.700 |
|
Finance costs |
9.800 |
|
Profit/ Loss from Ordinary
Activities after Finance costs but Exceptional item |
2411.900 |
|
Exceptional
item |
--- |
|
Profit/ Loss from Ordinary
Activities before tax |
2411.900 |
|
Tax
Expenses |
387.900 |
|
Net Profit/ Loss from Ordinary
Activities after tax |
2024.000 |
|
Extraordinary
Items |
--- |
|
Net Profit for the period |
2024.000 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
554.400 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
--- |
|
Earnings per share |
|
|
Basic and
Diluted Earnings per share (before extraordinary items) (of Rs. 10/- each) (not
annualized |
7.30 |
|
Basic and
Diluted Earnings per share (after extraordinary items) (of Rs. 10/- each)
(not annualized) |
7.30 |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public shareholding |
|
|
Number of
Shares |
135827317 |
|
Percentage of
Shareholding |
49% |
|
2. Promoters and promoter group
shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of Shares |
--- |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group) |
--- |
|
- Percentage of Shares (as a % of the Total Share Capital of the Company) |
--- |
|
|
|
|
Non -
encumbered |
|
|
- Number of
Shares |
141372683 |
|
-
Percentage of Shares (as a % of
the total shareholding of promoter and
promoter group) |
100% |
|
-
Percentage of Shares (as a % of
the total share capital of the company) |
51% |
|
Particulars |
Quarter ended , 30.09.2014 |
|
Investor complaints
[Nos.] |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed of during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
Nil |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in
Million)
|
Particulars |
30.09.2014 |
|
|
(Unaudited) |
|
EQUITY AND
LIABILITIES |
|
|
Shareholders' Funds |
|
|
Share Capital |
554.400 |
|
Reserves and Surplus |
27599.200 |
|
|
28153.600 |
|
Non-current
Liabilities |
|
|
Deferred tax liabilities (Net) |
647.200 |
|
Long-term Liabilities |
184.700 |
|
Long-term Provisions |
1241.400 |
|
|
|
|
Current Liabilities |
|
|
Trade Payables |
6146.900 |
|
Other Current Liabilities |
3877.800 |
|
Short-term Provisions |
897.300 |
|
|
10922.00 |
|
TOTAL EQUITY &
LIABILITIES |
41148.900 |
|
|
|
|
ASSETS |
|
|
Non-current Assets |
|
|
Fixed Assets |
13036.800 |
|
Non-current Investments |
457.300 |
|
Deferred Tax Assets (net) |
5562.200 |
|
Long-term Loans and Advances |
19056.300 |
|
|
|
|
Current Assets |
|
|
Current Investments |
1311.100 |
|
Inventories |
6700.700 |
|
Trade Receivables |
9173.200 |
|
Cash and Bank Balances |
2932.800 |
|
Short-term Loans and Advances |
1970.400 |
|
Other Current Assets |
4.400 |
|
|
22092.600 |
|
TOTAL ASSETS |
41148.900 |
Note:
1. Other Income for the quarter ended June 30, 2014 includes profit on safe of long term investments of
Rs.826.300 Million, which is non -
recurring.
2. Previous period ('s) / year ('s)
figures have been re-grouped wherever necessary.
3. The Company operates in one
primary business segment i.e. "Engines".
4. Pursuant to the requirements of
The Companies Act, 2013 (the 'Act') the Company has revised the depreciation
rates based on the estimated economic useful lives as prescribed by Schedule II
to the Act from April 1, 2014. In case of fixed assets where the useful life is
now completed as determined above, the Company has adjusted the net residual
value at as April 1, 2014 (net of tax) aggregating to Rs.20.600 Million, to the
Retained Earnings as allowed by the Act.
Depreciation expense for the quarter ended September 30, 2014 and for six
months ended September 30, 2014 is higher by Rs.32.500 Million and Rs.66.400
Million respectively due to this revision.
5. The Board of Directors of the
Company at their meeting held on September 10, 2014, have declared an interim
dividend of Rs.5/- per equity share on 277,200,000 shares of Rs.2/- each fully
paid up for the financial year 2014-15.
6. The above financial results have
been reviewed by the Audit Committee and approved by the Board of Directors at
their meeting held on November 6, 2014. The results have been subjected to a
'Limited Review' by the Auditors of the Company.
FIXED ASSETS
Tangible Assets
- Land
- Leasehold
Improvement
- Roads
- Buildings
- Plant and
Machinery
- Furniture and
Fixture
- Vehicles
Intangible Assets
- Software
- Technical
Knowhow
- Global
Sourcing Consideration
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.61.67 |
|
|
1 |
Rs.96.93 |
|
Euro |
1 |
Rs.77.35 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PNM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
65 |
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.