MIRA
INFORM REPORT
|
Report Date : |
08.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNDRAM FASTENERS LIMITED |
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Registered
Office : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
10.12.1962 |
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Com. Reg. No.: |
18-004943 |
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Capital
Investment / Paid-up Capital : |
Rs. 210.128 Millions |
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CIN No.: [Company Identification
No.] |
L35999TN1962PLC004943 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00555C / CHES17415G / MRIS01546G |
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PAN No.: [Permanent Account No.] |
AAACS8779D / AAACS8779D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps and Gear Shifters. |
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No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
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Maximum Credit Limit : |
USD 31000000 |
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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 company having fine track record. The rating reflects Sundram Fasteners’s leading market position in the
high – tensile fasteners industry supported by diversified revenue base and
above – average operating efficiencies of the company. Further rating also
takes into consideration company’s healthy financial risk profile 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 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 |
Short term Debt A1+ |
|
Rating Explanation |
Very Strong Degree of Safety and Lowest
Credit Risk |
|
Date |
24.09.2014 |
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 – CORPORATIVE (91-44-28478500)
LOCATIONS
|
Registered Office/ Corporate
Headquarters : |
98-A, Dr. Radhakrishnan Salai, 7th Floor, Mylapore, Chennai
– 600004, Tamilnadu, India |
|
Tel. No.: |
91-44-28478500 / 26257970 |
|
Fax No.: |
91-44-28478510 / 28478508 |
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E-Mail : |
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Website : |
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Factory (In |
Padi, Chennai-600050, Ghengleput District, |
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Tel No.: |
91-44-26258460 |
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Fad No.: |
91-44-26357052 |
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E mail: |
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Factory (In |
Krishnapuram, Aviyur-626160, Virudhunagar District, |
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Factory (In |
Mittamandagapet Village-605106, Villupuram District, Tamilnadu, India |
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Factory (In |
47/2, |
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Tel No.: |
91-44-26272231/ 55512231 |
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Fad No.: |
91-44-26272696 |
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E mail: |
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Factory (In |
SIPCOT Industrial Complex, Gummidipoondi-601021, |
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Factory (In |
Auto Ancillary SEZ, |
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Factories (In |
Tamilnadu: Harita, Hosur-635109, Krioshnagiri District, Tamilnadu, India |
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Tel No.: |
91-4344-276651 |
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Fad No.: |
91-4344-276082 |
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E mail: |
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Factory (In |
Puducherry Korkadu, Nettapakkam Commune, Bahur Taluk, Puducherry-605110,
Tamilnadu, India |
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Factory (In |
Andhra Pradesh Bonthapally Village-502313, Medak District, Andhra Pradesh, India |
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Factory (In |
Uttarakhand Patnagar, Itegrated Industrial Estate, Rudrapur, District Udam Singh
Nagar, Uttarakhand-263153, India |
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Factory (In |
Tamilnadu: Ambattur, Hosur, |
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Factories (Outside India- through subsidiaries) 12: |
No.1, Sundram Road, Wuyuan Town, Haiyan County, Jiaxing City, Zhejiang Province, China - 314300 |
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Factories (Outside India- through subsidiaries) 13: |
Unit 8, Atley Way, North Nelson Industrial Estate, Cramlington, Northumberland NE23 1WA, United Kingdom |
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Factories (Outside |
Woltorfer Str. 20-24, Postfach 1649, D-31221 Peine, Germany |
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Factories (Outside |
801, W.Big Beaver Road, Troy, Michigan, United States of America |
DIRECTORS
As on 23.08.2013
|
Name : |
Mr. Suresh Krishna |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Ms. Arathi Krishna |
|
Designation : |
Joint Managing Director |
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Name : |
Ms. Arundathi Krishna |
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Designation : |
Whole time Director |
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Name : |
Mr. K Ramesh |
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Designation : |
Director |
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Name : |
Mr. Venu Srinivasan |
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Designation : |
Director |
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Name : |
Mr. V Narayanan |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. C V Karthik Narayanan |
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Designation : |
Director |
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Name : |
Mr. M Raghupathy IAS |
|
Designation : |
Director (Retired) |
KEY EXECUTIVES
|
Name : |
Mr. V.G Jaganathan |
|
Designation : |
Chief Financial Officer & Company Secretary |
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Name : |
Mr. Anand Buby |
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Designation : |
Assistance Manager Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
104085280 |
49.53 |
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|
104085280 |
49.53 |
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|
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|
|
Total shareholding of Promoter and Promoter Group (A) |
104085280 |
49.53 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
24958749 |
11.88 |
|
|
5573041 |
2.66 |
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|
9998901 |
4.76 |
|
|
2914639 |
1.39 |
|
|
43441862 |
20.69 |
|
|
|
|
|
|
4390987 |
2.17 |
|
|
|
|
|
|
40928699 |
22.73 |
|
|
10052513 |
4.78 |
|
|
188633 |
0.09 |
|
|
188633 |
0.09 |
|
|
6000 |
0.00 |
|
Limited Liablility Partnership |
100 |
0.00 |
|
|
55560832 |
29.78 |
|
Total Public shareholding (B) |
99002694 |
50.47 |
|
Total (A)+(B) |
203087974 |
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) |
203087974 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Fasteners,
Cold Extruded and Powder Metal Parts, Radiator Caps and Gear Shifters. |
|
|
|
|
Products : |
· Fasteners · Radiator Caps · Powder Metal Parts · Cold Extruded Parts · Hot Forged Parts · Pumps and Assemblies |
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
· United Bank of India · State Bank of Mysore · Standard Chartered Bank · HDFC Bank Limited · ICICI Bank Limited · Canara Bank · DBS Bank Limited · The Hongkong and Shanghai Banking Corporation Limited |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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|
Name : |
Sundaram and Srinivasan Chartered Accountants |
|
Address : |
4, C P Ramaswamy Road, Alwarpet, Chennai - 600018, Tamilnadu, India |
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|
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Subsidiaries : |
Domestic
Subsidiaries · Sundram Fasteners Investments Limited., Chennai · Upasana Engineering Limited, Chennai · Sundram Non-Conventional Energy Systems Limited, Chennai · Sundram Bleistahl Limited, Chennai Foreign
Subsidiaries · Cramlington Precision Forge Limited, Northumberland, United Kingdom · Sundram RBI Sdn. Bhd, Kuala Lumpur, Malaysia · Sundram Fasteners (Zhejiang) Limited, Zhejiang Peoples Republic of China · Sundram International Inc, Michigan, USA · TVS Peiner Services, GmbH (formerly Peiner Logistik GmbH), Peine Federal Republic of Germany · Peiner Umformtechnik GmbH, Peine, Federal Republic of Germany ·
PUT Grundstücks GmbH, Peine, Federal Republic
of Germany |
|
|
|
|
Associates : |
· TVS Infotech Limited, Chennai · TVS Infotech Inc, Michigan, USA (Subsidiary of associate) · TV Sundram Iyengar & Sons Limited, Madurai ·
Southern Roadways Limited, Madurai |
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|
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Joint Venture: |
·
Windbolt |
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|
Enterprise in which Key Management Personnel have significant
influence: |
·
Upasana Finance Limited, Chennai |
CAPITAL STRUCTURE
As on 23.08.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.1/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
210128370 |
Equity Shares |
Rs.1/- each |
Rs. 210.128 Millions |
|
|
|
|
|
Reconciliation of
number of Equity Shares:
|
Particulars |
31.03.2014 |
|
|
|
No. of shares |
Rs. in Millions |
|
Balance at the beginning of the year |
210128370 |
210.128 |
|
Add: Shares issued during the year |
- |
- |
|
Bonus Shares issued during the year |
- |
- |
|
Balance at the end of the year |
210128370 |
210.128 |
Terms / rights
attached to shares:
The Company has only one class of equity shares having a par value of Re 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of shares
held by shareholders holding more than 5% of the aggregate shares in the
Company
|
Name of Share
holder |
31.03.2014 |
|
|
|
No. of shares |
Shares as % of Total number of shares
|
|
T V Sundram Iyengar and Sons Limited |
53312000 |
25.37 |
|
Southern Roadways Limited |
50773280 |
24.16 |
|
Sub Total |
104085280 |
49.53 |
|
Total No. of Shares of the Company |
210128370 |
100.00 |
Bonus Shares / Buy Back
/ Shares for consideration other than cash issued during the period of five
years immediately preceding the financial year ended 31st March 2014:
1. Aggregate number of equity shares allotted as fully paid up pursuant to contracts without payment being received in cash: Nil
2. Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares: Nil.
3. Aggregate number of equity shares bought back: Nil
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 |
210.128 |
210.128 |
210.128 |
|
(b) Reserves & Surplus |
7546.300 |
6732.752 |
5339.368 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
7756.428 |
6942.880 |
5549.496 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2289.651 |
2881.506 |
2871.435 |
|
(b) Deferred tax liabilities (Net) |
910.088 |
903.431 |
863.308 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
28.300 |
28.686 |
40.021 |
|
Total Non-current Liabilities (3) |
3228.039 |
3813.623 |
3774.764 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3690.217 |
4210.529 |
3564.059 |
|
(b) Trade payables |
2157.637 |
1725.661 |
1364.718 |
|
(c) Other current
liabilities |
1283.285 |
1453.794 |
1588.154 |
|
(d) Short-term provisions |
375.740 |
306.529 |
182.471 |
|
Total Current Liabilities (4) |
7506.879 |
7696.513 |
6699.402 |
|
|
|
|
|
|
TOTAL |
18491.346 |
18453.016 |
16023.662 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7824.660 |
7071.042 |
6050.63 |
|
(ii) Intangible Assets |
0.000 |
5.252 |
27.462 |
|
(iii) Capital
work-in-progress |
205.297 |
214.059 |
317.536 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1231.642 |
1320.202 |
1423.674 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
347.424 |
384.063 |
267.781 |
|
(e) Other Non-current assets |
3.357 |
4.673 |
4.578 |
|
Total Non-Current Assets |
9612.380 |
8999.291 |
8091.661 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2901.816 |
3211.822 |
2869.311 |
|
(c) Trade receivables |
4057.656 |
4329.213 |
3645.453 |
|
(d) Cash and cash
equivalents |
92.055 |
105.881 |
81.311 |
|
(e) Short-term loans and
advances |
1782.677 |
1786.964 |
1335.239 |
|
(f) Other current assets |
44.762 |
19.845 |
0.687 |
|
Total Current Assets |
8878.966 |
9453.725 |
7932.001 |
|
|
|
|
|
|
TOTAL |
18491.346 |
18453.016 |
16023.662 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20222.762 |
20694.167 |
21466.352 |
|
|
|
Other Income |
487.194 |
263.012 |
180.743 |
|
|
|
TOTAL (A) |
20709.956 |
20957.179 |
21647.095 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
8945.507 |
9666.922 |
10532.281 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
66.279 |
31.818 |
(398.104) |
|
|
|
Employees benefits expense |
2182.308 |
2019.110 |
1842.431 |
|
|
|
Other expenses |
6467.509 |
6402.996 |
6538.911 |
|
|
|
Exceptional Items |
100.000 |
(12.780) |
0.000 |
|
|
|
TOTAL (B) |
17761.603 |
18108.066 |
18515.519 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2948.353 |
2849.113 |
3131.576 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
585.750 |
813.529 |
922.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2362.603 |
2035.584 |
2209.576 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
763.673 |
716.154 |
636.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1598.930 |
1319.430 |
1573.445 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
390.007 |
368.805 |
447.458 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1208.923 |
950.625 |
1125.987 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
735.256 |
626.974 |
341.872 |
|
|
|
|
|
|
|
|
|
|
Income
Tax (Paid)/ Refund relating to earlier years |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
357.218 |
294.180 |
294.180 |
|
|
|
Tax on Interim Dividend |
41.157 |
48.463 |
46.705 |
|
|
|
Interim Dividend Payable |
0.000 |
0.000 |
0.000 |
|
|
|
Tax on Interim Dividend Payable |
0.000 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
750.000 |
500.000 |
500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
795.804 |
735.256 |
626.974 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
7607.530 |
6,782.524 |
6458.801 |
|
|
|
Claims Received |
99.288 |
21.031 |
0.000 |
|
|
|
Other |
60.810 |
26.920 |
27.528 |
|
|
TOTAL EARNINGS |
7767.628 |
6,830.475 |
6486.329 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1815.053 |
2,451.957 |
3480.290 |
|
|
|
Components & Spares Parts |
152.582 |
183.899 |
231.545 |
|
|
|
Capital Goods |
689.049 |
307.694 |
521.685 |
|
|
|
Tools Steel, Tools, Gauges etc |
132.992 |
214.136 |
370.443 |
|
|
|
Others |
1.296 |
5.050 |
0.451 |
|
|
TOTAL IMPORTS |
2790.972 |
3,162.736 |
4604.414 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
5.75 |
4.52 |
1.63 |
|
|
|
Diluted |
5.75 |
4.52 |
1.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.84 |
4.54 |
5.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.91 |
6.38 |
7.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.38 |
7.80 |
11.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
0.19 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.77 |
1.02 |
1.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.18 |
1.23 |
1.18 |
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 |
210.128 |
210.128 |
210.128 |
|
Reserves & Surplus |
5339.368 |
6732.752 |
7546.300 |
|
Net
worth |
5549.496 |
6942.880 |
7756.428 |
|
|
|
|
|
|
long-term borrowings |
2871.435 |
2881.506 |
2289.651 |
|
Short term borrowings |
3564.059 |
4210.529 |
3690.217 |
|
Total
borrowings |
6435.494 |
7092.035 |
5979.868 |
|
Debt/Equity
ratio |
1.160 |
1.021 |
0.771 |
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 |
21466.352 |
20694.167 |
20222.762 |
|
|
|
(3.597) |
(2.278) |
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 |
21466.352 |
20694.167 |
20222.762 |
|
Profit |
1125.987 |
950.625 |
1208.923 |
|
|
5.25% |
4.59% |
5.98% |
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
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 |
UNSECURED LOANS
(Rs. In Millions)
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Term Loans |
200.000 |
200.000 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Working Capital Loans |
2719.013 |
3502.770 |
|
Total |
2919.013 |
3702.770 |
SALES AND PROFITS
The Company recorded
total Net Sales and other income of Rs 20710.000 millions for the year ended
March 31, 2014 as against Rs 2095.72 millions achieved during the previous
year. The export sale was at Rs 7607.500 millions as against Rs 6782.500
millions n the previous year. The Profit after tax was at Rs 1208.900 millions
as against Rs 950.600 millions in the previous year.
The Company continues to be a net foreign
exchange earner for the seventeenth year in succession.
MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS OVERVIEW
Indian gross domestic product registered a growth of 4.7% during the financial year 2013-14 as against 5% in the previous year. Index of Industrial Production relating to the manufacturing sector showed a negative growth. Growth rate has been the slowest in the last ten years and the slowness has been more pronounced in the last two years. Volatility in foreign exchange rates, exacerbated by tapering of "Quantitative easing" by US, capital outflows, large current account deficits, high inflation rates, high interest rates and low consumer confidence marked a difficult year.
US economy showed moderate growth while European economies in general showed a negative growth. The stress in Euro zone economies caused by the financial crisis seems to have abated though full scale recovery is nowhere in sight. Emerging and developing economies also slowed down considerably. During 2013-14, the automotive sector in India showed a weak growth with some important segments posting a negative growth. The domestic market continued to be affected by macro economic problems, high inflation, high petroleum product prices, high interest rates and poor consumer sentiment. DOMESTIC SALES
Domestic sales
showed a decline at Rs 1220.000 millions from Rs 1347.000 million the light of
drop in production of vehicles, especially Medium and Heavy commercial
vehicles. Demand from major automotive OEMs was muted throughout the year.
Aftermarket sales declined moderately as confidence levels of dealers were low
resulting in carrying lower stocks.
Exports
The US market
recovered modestly though not uniformly across all customers of the Company.
European markets continued to be hit by recession and negative sentiments.
Exports were at Rs 7610.000 millions as against Rs 6780.000 millions in the
previous year, an increase of 12%. Export sales were over 38% of the overall
sales revenues.
During the year,
the Company set up a new factory (SEZ 2) at Mahindra World City for manufacture
of new variants of shafts, which commenced operations in the last quarter of
the financial year. The existing SEZ unit has been further expanded. These
additions have been made based on long term contracts with existing customers.
The Company's push
for adding new products and new customers is expected to result in further
improvement in exports in the near future. Volatility in exchange rates and
slow recovery in demand from European customers are causes for concern.
FINANCIAL PERFORMANCE
Automotive
component industry leans very heavily on commercial vehicle segment for high
volume sales and profits. Continuous decline in sales of commercial vehicles
resulted in lower sales in many of the units of the Company. Raw material
prices were more or less steady during the year. Other input costs rose across
the board, especially of petroleum based products. Spend on wages and salaries
increased as dearness allowance increased in line with the cost of living index
linked to inflation. The Company continued to be under pressure due to rising
manufacturing costs. Freight rates also increased in line with increase in cost
of diesel and other inputs related to the transportation industry. Power
availability eased considerably and measures taken by the Company over the
years enabled the Company to reduce usage of self-generated power to a bare
minimum and also reduce costs.
During the year,
PBIDT (Profit before interest, foreign exchange fluctuation, depreciation,
exceptional income and tax) was at Rs 3048.400 millions as against Rs 2836.300
millions in the previous year.
The Company made
sizable investments in creation of capacities for new products and additional
capacities for manufacture of existing products to meet projected demand from
domestic and international customers. These investments resulted in additional
interest costs. Tight money policies followed by Reserve Bank of India resulted
in steep increase in interest rates on rupee borrowings and forward premiums in
respect of foreign currency borrowings. Financing costs, including premiums on
forward cover and adverse foreign exchange variations of
Rs 278.300
millions (Rs 402.700 millions) on foreign currency borrowings, were at Rs
585.800 millions as against Rs 813.500 millions in the previous year. The
Company has been able to limit interest costs on account of a concerted action
to reduce working capital requirements across its major divisions as a result
of which borrowing levels have reduced considerably.
In line with the
Accounting Standard AS-11 (dealing with the effects of change in foreign
exchange rates) and to ensure the principles of consistency, the Company
recognises the exchange differences arising out of foreign currency denominated
items as expense or income in the profit and loss statements.
Depreciation was
higher at Rs 763.700 millions (Rs 716.200 millions).
Profit before tax
was higher by 30% at Rs 1698.900 millions (Rs 1306.700 millions). Investment
Allowance admissible under Sec. 32AC of the Income Tax Act resulted in lower
net tax rate. Profit after tax after providing for exceptional items increased
by 27% to Rs 1208.900 millions (Rs 950.600 millions).
CONTINGENT
LIABLILITIES :
(Rs.
In Millions)
|
Particular |
31.03.2014 |
31.03.204 |
|
On Latters of Guarantee |
94.665 |
112.526 |
|
On Letters of Credit |
6.584 |
21.205 |
|
On Guarantee Issued to Housing Development Finance Corporation on Behalf Of Employees |
- |
- |
|
On Partly Paid Shares of The Adyar Property Holding Company Limited |
0.01 |
0.01 |
|
The company has given Guarantees to full various obligations of Cramlington Precision Forge limited, UK and Sundram fasteners (Zhejiang) limited, china wholly owned subsidiaries of the company, the subsidiaries which is not ascertainable. |
|
|
STATEMENT OF STANDALONE AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31ST JUNE 2014
|
PARTICULARS |
30.06.2014 |
|
1.Income from Operations |
|
|
(a) Net Sales/ Income from Operations |
5668.100 |
|
(b) Other Operating Income |
118.000 |
|
Total Income From
operations net (a+b) |
5786.100 |
|
2. Expenditure |
|
|
a. Cost of Raw Materials consumed |
2611.000 |
|
b. Changes in inventories of finished goods , work in progress and
stock in trade |
(140.000) |
|
c. Employee benefit expenses |
601.300 |
|
d. Depreciation and amortisation expense |
275.000 |
|
e. Stores and Tools consumed |
638.100 |
|
f. Other Expenses |
1157.500 |
|
Total Expenses |
5142.900 |
|
3. Profit from Operations
before Other Income, Finance Costs and Exceptional Items (1-2) |
643.200 |
|
4. Other Income |
11.100 |
|
5. Profit from ordinary activities before Finance Costs and
Exceptional Items (3+4) |
654.300 |
|
6. Finance Costs |
|
|
a.
Interest |
55.400 |
|
b.
Exchange (gain)/ loss on foreign currency |
72.700 |
|
7. Profit from Ordinary
Activities after Finance Costs but before exceptional Items (5-6) |
526.200 |
|
8. Exceptional items |
- |
|
9. Profit from Ordinary
Activities before Tax (7+8) |
526.200 |
|
10. Tax Expenses |
145.00 |
|
11. Net Profit from Ordinary Activities
after tax (9+10) |
381.200 |
|
12. Extraordinary Items (net of tax expenses) |
- |
|
13. Net Profit (11-12) |
381.200 |
|
14. Paid-up Equity Share Capital (face value of Re 1 each fully paid up) |
210.100 |
|
15 Reserve and Surplus |
|
|
16 Earning Per Shares (EPS)-Re1 each (Before extraordinary items)* |
1.81 |
|
a)Basic |
1.81 |
|
b)Diluted |
1.81 |
|
17Earnings per Shares (EPS)-Re 1 each (After extraordinary items)* |
|
|
a)Basic |
|
|
b)Diluted |
|
|
15. Public shareholding |
|
|
- No. of shares |
106043090 |
|
- % of holding (to total shareholding) |
50.47 |
|
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered |
|
|
-Number of Shares |
-- |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
-- |
|
-% of Shares (as a % of the total share capital of the Company) |
-- |
|
b) Non Encumbered |
|
|
- Number of Shares |
104085280 |
|
-% of Shares (As a % of the total Shareholding of Promoter and
Promoter Group) |
100.00 |
|
-% of Shares (as a % of the total share capital of the Company) |
49.53 |
|
INVESTOR COMPLAINTS |
Quarter ended 30.06.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed if during the quarter |
Nil |
|
Remaining unresolved the end of the quarter |
Nil |
Note:
1. The above financial results were reviewed and recommended by the Audit Committee and thereafter approved by the Board of Directors at its meeting held today As required under Clause 41 of the Listing Agreement, Limited Review of the above financial results has been completed by the Statutory Auditors of the Company and the Report of the same has been placed before the Board.
2. Sales for the Quarter ended June 30, 2014 includes exports of Rs. 2278.893
Millions (Last year same period Rs. 1755.423 Millions). Other income includes
foreign exchange gains of Rs.1.319 Millions (Last year same period Rs.169.286
Millions).
3. The Company operates in only one segment.
4. Pursuant to the Companies Act, 2013 the management, has provisionally
reassessed the useful life of fixed assets. The depreciation charge for the
quarter ended June 30, 2014 is higher by Rs. 67.500 Millions as compared with
the depreciation at rates prevalent in the previous year.
5. TVS Infotech Limited [TVSI] (an erstwhile associate company) and its wholly
owned subsidiary TVS Infotech Inc, USA have become step down subsidiaries of
the Company consequent to their becoming subsidiaries of Sundram Fasteners
Investment Limited, a wholly owned subsidiary of the Company with effect from
June 18, 2014.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10388522 |
15/10/2012 |
831,486,250.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR HSBC CENTRE, 18 CYBERCITY, EBENE MAURITIUS, - 0, MAURITIUS |
B62793690 |
|
2 |
10244553 |
18/10/2010 |
500,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED |
NAGABRAHMA TOWERS, 76, CATHEDRAL ROAD, CHENNAI, TAMILNADU - 600086, INDIA |
A96714936 |
|
3 |
10246332 |
29/09/2010 |
898,800,000.00 |
DBS BANK LIMITED |
806 ANNA SALAI, CHENNAI, CHENNAI, TAMILNADU - 60 0002, INDIA |
A96210927 |
|
4 |
90296636 |
31/03/2005 |
27,978,000.00 |
GOVERNMENT OF TAMILNADU |
GOVERNMENT OF TAMILNADU, CHENNAI, TAMILNADU - 600 006, INDIA |
- |
|
5 |
90296600 |
08/01/2005 * |
40,000,000.00 |
ICICI BANK LIMITED |
LAND MARK, RACE COURSE CIRCLE, VADODARA, GOA - 39 0007, INDIA |
- |
|
6 |
90296552 |
14/12/2007 * |
510,000,000.00 |
HDFC BANK LIMITED |
ANNA SALAI, CHENNAI, TAMIL\NADU - 600002, INDIA |
A32404501 |
|
7 |
80056860 |
23/11/2000 |
370,000,000.00 |
CANARA BANK |
OVERSEAS BRNCH, 770 A ANNA SALAI, CHENNAI, TAMILNADU - 600002, INDIA |
- |
|
8 |
90296505 |
14/07/2000 |
550,000.00 |
FORD INDIA LIMITED |
CORPORATE OFFICE AND PLANT, SP KOIL, CHENGLEPUR, TAMILNADU - 603204, INDIA |
- |
|
9 |
90296492 |
08/02/2000 |
3,475,000.00 |
FORD INDIA LIMITED |
CORPORATE OFFICE AND PLANT, S. P. KOIL, CHENGLEPUT, TAMILNADU - 603204, INDIA |
- |
|
10 |
90296282 |
10/02/1995 |
11,000,000.00 |
ANZ GRINDLAYS BANK |
19; RAJAJI SALAI, MADRAS, TAMILNADU - 600001, INDIA |
- |
FIXED ASSETS
v
Aircraft
v
Land
v
Buildings
v
Plant and Machinery
v
Furniture, Fixtures and Office Equipments
v
Vehicles
v
Technical Know-how
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to
suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceeding for making any
prohibited payments or other improper payments to government officials for
engaging in prohibited transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.75 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.