MIRA
INFORM REPORT
|
Report Date : |
07.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
BRAKES INDIA LIMITED |
|
|
|
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Registered
Office : |
No. 21, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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|
Date of
Incorporation : |
09.11.1962 |
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|
|
|
Com. Reg. No.: |
18-004928 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.239.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U35999TN1962PLC004928 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEB00159F |
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PAN No.: [Permanent Account No.] |
AAACB2533Q |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
manufacturer of Automotive and Non-Automotive Braking Systems and Ferrous Castings. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 42000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and a reputed company having good track record. The financial position of the company seems to be strong. Performance capability seems to be high. Liquidity position of the company is good. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments.
The company can be considered for normal 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
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
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating=AA |
|
Rating Explanation |
Have high degree of safety and carry very
low credit risk. |
|
Date |
28.05.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating=A1+ |
|
Rating Explanation |
Have very strong degree of safety and lowest
credit risk. |
|
Date |
28.05.2014 |
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 (91-44-26526000)
LOCATIONS
|
Registered Office: |
No. 21, Patulas Road, Madras, Chennai – 600 002,
Tamilnadu, India |
|
Tel. No.: |
91-44-26251861 / 6161 / 8161 / 8116 / 8426 |
|
Fax No.: |
91-44-26287010 / 26257844 / 26257010 |
|
Fax No.: |
|
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Padi, Chennai – 600 050, Tamilnadu, India |
|
Tel. No.: |
91-44-26258161 / 26526000 / 6577 |
|
Fax No.: |
91-44-26257010 / 26257844 / 7010 / 26248211 |
|
E-Mail : |
bi-marketing@brakesindia.co.in |
|
|
|
|
Foundry Division: |
New No. 5, 4th Main Road, Gandhi Nagar, Adya, Chennai – 600 020, Tamilnadu, India |
|
Tel. No.: |
91-44-24908719 |
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E-Mail : |
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|
|
|
|
Factory : |
Jhagadia, Gujarat, India |
DIRECTORS
AS ON 26.08.2013
|
Name : |
Mr. Ragavachary Ramanujam |
|
Designation : |
Managing Director |
|
Address : |
4(old No.17), |
|
Date of Birth/Age : |
29.07.1936 |
|
Date of Appointment : |
02.10.2010 |
|
Voter ID : |
TN/02/01D/0276654 |
|
DIN No.: |
00365735 |
|
|
|
|
Name : |
Mr. Santhanam Viji |
|
Designation : |
Managing Director |
|
Address : |
71, (Old No.33), |
|
Date of Birth/Age : |
07.06.1946 |
|
Date of Appointment : |
01.04.2010 |
|
Voter ID : |
CJJ1001858 |
|
DIN No.: |
00139043 |
|
|
|
|
Name : |
Mr. Ramanujam Srikanth |
|
Designation : |
Managing Director |
|
Address : |
15, |
|
Date of Birth/Age : |
19.09.1961 |
|
Date of Appointment : |
01.04.2010 |
|
DIN No.: |
00272553 |
|
|
|
|
Name : |
Mr. Thiruvallur Thattai
Srinivasaraghavan |
|
Designation : |
Director |
|
Address : |
No.9 (Old No. 5), |
|
Date of Birth/Age : |
19.01.1955 |
|
Date of Appointment : |
29.08.2008 |
|
Voter ID : |
TN/02/010/0276585 |
|
DIN No.: |
00018247 |
|
|
|
|
Name : |
Mr. Sriram Viji |
|
Designation : |
Whole-time director |
|
Address : |
New No.22 (Old No.20) D'Silva Road, Chennai – 600004 |
|
Date of Birth/Age : |
01.02.1979 |
|
Date of Appointment : |
01.06.2012 |
|
DIN No.: |
03630636 |
|
|
|
|
Name : |
Mr. William J Vander Roest |
|
Designation : |
Alternate Director |
|
Address : |
3118, |
|
Date of Birth/Age : |
05.02.1957 |
|
Date of Appointment : |
05.09.2011 |
|
DIN No.: |
00520340 |
|
|
|
|
Name : |
Mr. Michel Pierre Berthelin |
|
Designation : |
Alternate Director |
|
Address : |
2, rue des Silenes 59134, France |
|
Date of Birth/Age : |
05.06.1970 |
|
Date of Appointment : |
01.02.2012 |
|
DIN No.: |
03419706 |
|
|
|
|
Name : |
Mr. Jurgen Karl Baro Piza |
|
Designation : |
Director |
|
Address : |
Auf Dem, Schferlaykopf 6, Bad Breisig – 53498, Germany |
|
Date of Birth/Age : |
30.03.1960 |
|
Date of Appointment : |
07.09.2012 |
|
DIN No.: |
06374423 |
|
|
|
|
Name : |
Mr. Matthias Gothe |
|
Designation : |
Director |
|
Address : |
6823, Domain, West Bloomfied, MI 48322 |
|
Date of Birth/Age : |
16.08.1972 |
|
Date of Appointment : |
07.09.2012 |
|
DIN No.: |
05228303 |
|
|
|
|
Name : |
Mr. Christopher O'reilly Mccormick |
|
Designation : |
Alternate director |
|
Address : |
22596, Fuller Drive Novi, MI 48374, USA |
|
Date of Birth/Age : |
27.08.1964 |
|
Date of Appointment : |
07.08.2012 |
|
DIN No.: |
06374501 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Mario Franz Sabel |
|
Designation : |
Alternate director |
|
Address : |
Im, Vogelsang 3, 56332 Diabilch, Germany |
|
Date of Birth/Age : |
23.03.1970 |
|
Date of Appointment : |
07.08.2012 |
|
DIN No.: |
06374534 |
|
|
|
|
Name : |
Mr. David William Keddie |
|
Designation : |
Alternate Director |
|
Address : |
Im Berg 14 A, Weissenthurm, 56575, Germany |
|
Date of Birth/Age : |
04.09.1971 |
|
Date of Appointment : |
29.10.2012 |
|
DIN No.: |
06432484 |
KEY EXECUTIVES
|
Name : |
Mr. Tirumalachari Narayanan |
|
Designation : |
Secretary |
|
Address : |
I – 1, Benco Colony, Beasant
Nagar, Chennai – 600090, |
|
Date of Birth/Age : |
06.05.1959 |
|
Date of Appointment : |
01.01.1999 |
|
PAN No.: |
AABPN1218N |
MAJOR SHAREHOLDERS
AS ON 26.08.2013
|
Names of Shareholders |
|
No. of Shares |
|
Lucas Industries Limited, |
|
1172080 |
|
T.V. Sundaram Iyengar and Sons Limited, |
|
507632 |
|
Sundaram Industries Limited, |
|
239200 |
|
Southern Roadways Limited, |
|
313624 |
|
Sundaram Finance Limited, |
|
159460 |
|
R. Ramanujam and Sundaram Finance Limited, |
|
2 |
|
S. Viji and Sundaram Finance Limited, |
|
2 |
|
|
|
|
|
Total |
|
2392000 |
AS ON 26.08.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
49.00 |
|
Bodies corporate |
51.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
manufacturer of Automotive and Non-Automotive Braking Systems and Ferrous Castings. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
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Bankers : |
· HSBC Bank (Mauritius) Limited, 6th Floor, HSBC Centre, 18, Cybercity, Ebene – NA, Mauritius · DBS Bank Limited, 806, Anna Salai, Chennai – 600 002, Tamil Nadu, India · Standard Chartered Bank, 19, Rajaji Salai, Chennai – 600 001, Tamilnadu, India · The Bank of Nova Scotia, Classic Towers, 1547, Trichy Road, Coimbatore – 641 018, Tamilnadu, India · State Bank of India, Commercial Branch, Alipore, 24/1/1, Alipore Road, Kolkata - 700027, West Bengal, India · State Bank of India, Corporate Accounts Group Branch, 64, Creams Road, Chennai - 600006, Tamilnadu, India · BNP Paribas, Prince Towers, 3rd Floor, 25/26, College Road, Chennai - 600006, Tamilnadu, India |
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Facilities : |
NOTES: Long Term
Borrowings: Secured by exclusive first charge on specific plant and machinery and
movable property. Short Term
Borrowings: Secured by hypothecation of raw materials, components,
work-in-progress, finished goods and book debts. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
23, C. P. Ramaswamy Road, Alwarpet, Chennai – 600 018, Tamil Nadu, India |
|
PAN.: |
AAAFS8812J |
|
|
|
|
Associate : |
· T.V. Sundram Iyengar and Sons Limited · Lucas Industries Limited · TRW Automotive Inc. and Associates · Turbo Energy Limited · Sundaram Dynacast Private Limited · Showatech Inc., USA |
|
|
|
|
Enterprises
significantly influenced by KMP: |
· ABI Showatech (India) Limited · Sundaram Medical Foundation |
|
|
|
|
Joint Venture : |
BIH Braking Company Limited |
|
|
|
|
Subsidiaries : |
The Dunes Oman LLC (FZC) |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000 |
Equity Shares |
Rs. 100/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2392000 |
Equity Shares |
Rs. 100/- each |
Rs.239.200 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
239.200 |
239.200 |
239.200 |
|
(b) Reserves & Surplus |
10112.671 |
8648.401 |
7504.014 |
|
(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) |
10351.871 |
8887.601 |
7743.214 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1303.590 |
1365.684 |
1648.875 |
|
(b) Deferred tax liabilities (Net) |
812.582 |
784.167 |
758.925 |
|
(c) Other long term liabilities |
25.691 |
25.395 |
22.150 |
|
(d) long-term provisions |
116.654 |
159.367 |
134.871 |
|
Total Non-current Liabilities (3) |
2258.517 |
2334.613 |
2564.821 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
276.898 |
728.959 |
2000.125 |
|
(b) Trade payables |
2884.729 |
3051.398 |
3186.271 |
|
(c) Other current
liabilities |
1102.881 |
1236.973 |
1158.235 |
|
(d) Short-term provisions |
1117.337 |
716.960 |
608.195 |
|
Total Current Liabilities (4) |
5381.845 |
5734.290 |
6952.826 |
|
|
|
|
|
|
TOTAL |
17992.233 |
16956.504 |
17260.861 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6825.810 |
6320.278 |
6617.780 |
|
(ii) Intangible Assets |
86.596 |
70.999 |
88.471 |
|
(iii) Capital
work-in-progress |
86.899 |
231.607 |
109.445 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
414.353 |
413.809 |
411.415 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
212.260 |
330.350 |
248.607 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
7625.918 |
7367.043 |
7475.718 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.005 |
0.005 |
8.318 |
|
(b) Inventories |
4018.345 |
3883.906 |
3895.640 |
|
(c) Trade receivables |
5209.083 |
4925.108 |
5067.828 |
|
(d) Cash and cash
equivalents |
198.033 |
17.253 |
9.274 |
|
(e) Short-term loans and
advances |
940.849 |
763.189 |
804.083 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
10366.315 |
9589.461 |
9785.143 |
|
|
|
|
|
|
TOTAL |
17992.233 |
16956.504 |
17260.861 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
||
|
|
SALES |
|
|
|
||
|
|
|
Revenue from operations |
31723.054 |
31187.515 |
31640.960 |
|
|
|
|
Other Income |
415.963 |
264.447 |
146.706 |
|
|
|
|
TOTAL (A) |
32139.017 |
31451.962 |
31787.666 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Material Consumed |
18547.311 |
19303.933 |
19488.789 |
|
|
|
|
Changes in Inventories of Finished Goods, work-in-progress and
stock-in-Trade |
(91.051) |
(435.044) |
(57.521) |
|
|
|
|
Employee benefit expense |
3105.442 |
2890.243 |
2635.879 |
|
|
|
|
Other expenses |
6504.056 |
6222.674 |
6175.358 |
|
|
|
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
|
|
|
TOTAL (B) |
28065.758 |
27981.806 |
28242.505 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4073.259 |
3470.156 |
3545.161 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
145.209 |
288.954 |
377.883 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3928.050 |
3181.202 |
3167.278 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
934.927 |
871.175 |
739.035 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2993.123 |
2310.027 |
2428.243 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
768.415 |
605.242 |
591.047 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-H) (I) |
2224.708 |
1704.785 |
1837.196 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
608.000 |
583.600 |
530.200 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Interim Dividend |
478.400 |
334.900 |
382.700 |
|
|
|
|
Proposed Dividend |
215.300 |
167.400 |
119.600 |
|
|
|
|
Tax on Dividend |
66.700 |
58.100 |
81.500 |
|
|
|
|
Transfer to General Reserve |
1270.000 |
1120.000 |
1200.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
802.308 |
608.000 |
583.600 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Earnings (FOB) |
6613.826 |
5894.581 |
6099.464 |
|
|
|
|
Earnings on dividend |
300.870 |
152.032 |
48.530 |
|
|
|
|
Earnings on other income |
44.165 |
38.613 |
0.000 |
|
|
|
TOTAL EARNINGS |
6958.861 |
6085.226 |
6147.994 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
736.432 |
1182.910 |
1003.413 |
|
|
|
|
Stores & Spares |
2575.880 |
2641.744 |
2837.348 |
|
|
|
|
Capital Goods |
195.132 |
95.943 |
256.926 |
|
|
|
TOTAL IMPORTS |
3507.444 |
3920.597 |
4097.687 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
930.00 |
713.00 |
768.00 |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
6.92 |
5.42 |
5.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.44 |
7.41 |
7.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.11 |
14.16 |
14.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29 |
0.26 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.15 |
0.24 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93 |
1.67 |
1.41 |
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 |
239.200 |
239.200 |
239.200 |
|
Reserves & Surplus |
7504.014 |
8648.401 |
10112.671 |
|
Net
worth |
7743.214 |
8887.601 |
10351.871 |
|
|
|
|
|
|
long-term borrowings |
1648.875 |
1365.684 |
1303.590 |
|
Short term borrowings |
2000.125 |
728.959 |
276.898 |
|
Total
borrowings |
3649.000 |
2094.643 |
1580.488 |
|
Debt/Equity
ratio |
0.471 |
0.236 |
0.153 |
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) |
|
Revenue from operations |
31640.960 |
31187.515 |
31723.054 |
|
|
|
(1.433) |
1.717 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
31640.960 |
31187.515 |
31723.054 |
|
Profit/(Loss) After Tax |
1837.196 |
1704.785 |
2224.708 |
|
|
5.81% |
5.47% |
7.01% |
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 |
No |
|
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 |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
Yes |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS:
|
Particulars |
31.03.2014 Rs. In Millions |
31.03.2013 Rs. In Millions |
|
LONG TERM BORROWINGS |
|
|
|
Term loans from others |
0.000 |
0.524 |
|
Deposits from others |
79.913 |
80.707 |
|
SHORT TERM BORROWINGS |
|
|
|
Loans repayable on demand from banks |
239.680 |
146.853 |
|
Deposits from others |
37.218 |
17.207 |
|
Total |
356.811 |
245.291 |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10358925 |
10/05/2012 |
520,000,000.00 |
HSBC
BANK (MAURITIUS) LIMITED |
6TH
FLOOR, HSBC CENTRE, 18, CYBERCITY, EBENE - NA, MAURITIUS |
B40884280 |
|
2 |
10318707 |
24/05/2013
* |
451,180,000.00 |
HSBC
BANK (MAURITIUS) LIMITED |
6TH
FLOOR, HSBC CENTRE, 18,CYBERCITY, EBENE, - NA, MAURITIUS |
B76563006 |
|
3 |
10260645 |
27/03/2013
* |
540,000,000.00 |
STANDARD
CHARTERED BANK |
19,RAJAJI
SALAI, CHENNAI – 600 001, TAMIL NADU, INDIA |
B73242406 |
|
4 |
10237959 |
08/05/2013
* |
409,195,000.00 |
DBS
BANK LIMITED |
806,
ANNA SALAI, CHENNAI – 600 002, TAMIL NADU, INDIA |
B76562404 |
|
5 |
10214690 |
29/03/2010 |
150,000,000.00 |
HDFC
BANK LIMITED |
HDFC
BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI – 400 013, MAHARASHTRA,
INDIA |
A83820951 |
|
6 |
10149314 |
27/02/2009 |
400,000,000.00 |
STATE
BANK OF INDIA |
CORPORATE
ACCOUNTS GROUP BRANCH, 64,CREAMS ROAD, CHENNAI – 600 006, TAMIL NADU, INDIA |
A58703919 |
|
7 |
10126607 |
07/10/2008 |
219,000,000.00 |
HSBC
BANK (MAURITIUS) LIMITED |
5TH
FLOOR, LES CASCADES BUILDING, EDITH CAVELL ST |
A48755250 |
|
8 |
90297999 |
24/03/2005 |
150,000,000.00 |
STATE
BANK OF INDIA |
CORPORATE
ACCOUNTS GROUP BRANCH, 149 ; GREAMS ROAD, MADRAS – 600 006, TAMIL NADU, INDIA |
- |
|
9 |
90297851 |
15/07/2004
* |
11,850,000.00 |
FORD
INDIA PRIVATE LIMITED |
CORPORATE
OFFICE ; S.P. KOIL, CHENGALPATTU – 603 204, TAMIL NADU, INDIA |
- |
|
10 |
90297806 |
26/03/1999 |
88,900,000.00 |
INDUSTRIAL
DEV. BANK OF INDIA |
IDBI
TOWER, CUFFE PARADE, COLABA, MUMBAI – 400 002, MAHARASHTRA, INDIA |
- |
* Date of charge modification
REVIEW OF BUSINESS
AND OPERATIONS
The Indian economy experienced a second successive year of relatively poor performance in FY 13-14, with the GDP registering a growth below 5% in both years. Persistent high inflation, low business confidence and lower fixed capital formation contributed to the weak domestic growth. Performance of the Manufacturing Sector, which contributes significantly to the economy, stagnated in the last 24 months. Consequently, the performance of the Indian Automotive Industry was severely affected and witnessed a period of negative growth.
The Production of Passenger Cars and Utility vehicles decreased by 4.9% during FY 13-14, despite some increase in export volumes of Utility passenger vehicles. Performance of Medium and Heavy commercial Vehicle segment continued to be heavily impacted with vehicle output declining by 21% in FY 13-14 on top of a decrease of 27.6% in FY12-13. Contraction in the mining and manufacturing sectors, slowdown in infrastructure spend, as well as high interest rates were pivotal factors that contributed to the continuing woes of this sector. The Light Commercial Vehicle space also saw a decline in output by 13.5% with reduction in both Passenger and Goods Carrier production. A reasonably good monsoon and growth in the agriculture output drove Tractor production levels up by 20.4% which proved to be the sole bright spot amidst the declining trends across the industry.
The overall reduction in the Domestic Automotive Industry volumes resulted in reduced sales to OEMs from the Brake Division; however the Company’s focus in remaining pro-active to the customers needs as well as participating in various new product launches helped it to protect and grow market share in most of the segments, thereby restricting OEM sales decline in value terms to only 5.1% in FY 13-14. Greater focus and pro-active steps taken by the Company in the Replacement market, both OE spares and Independent after market helped to increase the sales by 11.9%. Brake Division export sale grew in value terms by 7.3%. Overall Brake Division sales during FY 13-14 remained at the same levels as that of FY 12-13.
Foundry Division sale to external customers increased by 8.9%, aided by export sale growth of 15.3%. The sale of Engineering Plastic products from the Polymer Division also registered a growth of 14.2%. The overall exports of the Company at Rs 6849.900 Millions, showed an increase of 11.4% over the previous year, partially aided by favourable exchange rates.
Viewed against a backdrop of a high level of recession in the Automotive industry and difficult market conditions that prevailed during FY 13-14, The Company’s overall sales growth of 1.7% was a satisfactory achievement.
During the financial year, some of the input material costs registered increases, especially during the latter part of the year. Persistent high domestic inflation levels resulted in substantial increase in conversion costs. Given the tough market conditions and the pressures from OEM customers to reduce prices, that are characteristic to the Industry, the Company could recover only a portion of such increases from its customers. Power situation in Tamil Nadu continued to be grim and the Company had taken several measures to mitigate this factor including establishment of dedicated feeders, restructuring work timings and sourcing of power from independent power producers. The weak market demand had also adversely affected some of the Company’s vendors, especially those catering to the Commercial Vehicle segment, resulting in the need for additional support being extended to them. In spite of all the adverse conditions, the Company’s continued vigour and focus on remaining customer centric, rigorous internal exercises to cut down costs and eliminate waste, drive on implementing VA/VE projects across the value chain and its overall strategy to maintain exposure to all the segments within the Automotive industry helped it to improve its Profitability levels. The Company’s sustained efforts to reduce working capital, target higher equipment productivity, taper down capital spend as per market requirement and to manage funds more effectively through treasury operations have helped it to reduce the borrowings significantly and bring down interest cost.
Resolution for the specific customer recall programme that arose during the end of the last financial year had been arrived at in joint discussion with the Customer. Adequate provision has been made in the books to meet the estimated liability.
The Company’s new manufacturing site at Jhagadia, Gujarat, commenced operations in November 2013 and would cater to the requirements of customers located in the Western and Northern parts of India.
BUSINESS OUTLOOK
FY 14-15 is viewed with a sense of cautious optimism. There is heightened expectation that the new government at the Centre will take steps to improve the business and market sentiment, provide a special impetus to the manufacturing sector, substantially increase infrastructure spend especially in power, roads, ports, urban development and usher in policies to spur economic growth. Though there are no immediate signs of market recovery visible in the Automotive sector, it is generally expected that some positives would emerge in the latter part of the year. So far, the monsoon has played truant causing some concern for the speedy revival of the domestic economy. However, the long term fundamentals of the Indian Economy remain strong as do the prospects for the Automotive Industry. The Company has also geared itself to meet the new market requirements that may arise on account of any future legislative changes leading to introduction of new technology products for both the Passenger Car and Commercial Vehice segments.
CERTIFICATIONS,
RECOGNITIONS AND AWARDS
The Company remains a Customer Centric Organisation and addresses all customer feedback constructively and commits resources to enhance customer satisfaction. In recognition of its performance, the Company received several awards on various facets of performance such as Quality,
Zero PPM Delivery, Cost reduction initiatives and Cost management, Supply chain management, Green manufacturing and overall performance from customers including Ashok Leyland Limited, Honda Cars India Limited, TAFE Limited, TAFE Motors and Tractors Limited, TKML, TKAP, Godrej
Appliances, M&M Farm Division, and VE Commercial vehicles Limited.
The Company has also taken proactive steps to improve its quality and environmental systems and continues to be accredited with relevant certification for Quality Systems under ISO/TS 16949:2009, for Environmental Management Systems under ISO 14001:2004 and for Occupational Health Safety Management System under OSHAS 18001:2007 for its manufacturing sites. Foundry division, in addition, continues to be certified under BS EN: 16001:2009 for Energy Management System. Foundry division was given the Green Award by the Tamilnadu
Pollution Control Board for improvement activities and initiatives carried out for enhancing Environment Quality.
FIXED ASSETS:
·
Land Freehold
·
Land Leasehold
·
Building
·
Plant and Machinery
·
Computer Software
·
Furniture and Fixture
·
Vehicles
CMT REPORTCorruption, 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.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SNT |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
67 |
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.