MIRA
INFORM REPORT
|
Report Date : |
10.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
ABC BEARINGS LIMITED |
|
|
|
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Registered
Office : |
402-B, Poonam Chambers, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
30.05.1961 |
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Com. Reg. No.: |
012028 |
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Capital Investment
/ Paid-up Capital : |
Rs. 115.500 Millions |
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|
|
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CIN No.: [Company Identification
No.] |
L29130MH1961PLC012028 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA216687B |
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PAN No.: [Permanent Account No.] |
AAACT5018Q |
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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 Ball Thrust, Taper and Cylindrical Roller
Bearings. |
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|
No. of Employees
: |
432 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4900000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. General Financial position of the company is sound. Trade relations are reported as fair. Business is active. Payment
terms are reported to be usually correct. The company can be considered normal for 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
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 |
Long Term Rating (BBB+) |
|
Rating Explanation |
Moderate degree of safety. It carry moderate credit risk |
|
Date |
March 19, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating (A2) |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
March 19, 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 (91-24964500 / 2642-248222)
LOCATIONS
|
Registered Office : |
402-B, Poonam Chambers, |
|
Tel. No.: |
91-22-24964500/24964501/56608851 |
|
Fax No.: |
91-22-24950527 |
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E-Mail : |
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|
Website : |
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Factory 1: |
Plot No.1-B, GIDC Industrial Estate, Bharuch - 392 015, |
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Tel. No.: |
91-2642- 248222/3/4/ 246353 |
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Fax No.: |
91-2642- 248221/ 247591 |
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E-Mail : |
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|
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Factory 2: |
Khasra No. 122 MI, Central Hope Town, Village: Selaqui, Tehsil: Vikas
nagar, Dehradun – 248197, Uttarakhand, India
|
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. S. M. Patel |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. P. M. Patel |
|
Designation : |
Managing Director |
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Name : |
Mr. T. M. Patel |
|
Designation : |
Executive Director |
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Name : |
Mr. Y. H. Malegam |
|
Designation : |
Director (Up to 16.07.2013) |
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|
|
Name : |
Mr. S. K. Diwanji |
|
Designation : |
Director |
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|
Name : |
Mr. Jal R. Patel |
|
Designation : |
Director |
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|
Name : |
Nalin M. Shah |
|
Designation : |
Director (From 16.07.2013) |
KEY EXECUTIVES
|
Name : |
Mr. S. B. Desai |
|
Designation : |
Company Secretary |
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|
|
|
Solicitors |
Desai and Diwanji Advocates and Solicitors |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholder |
Total
No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
|
|
As a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
732095 |
6.34 |
|
|
3635520 |
31.48 |
|
|
4367615 |
37.81 |
|
|
|
|
|
|
100394 |
0.87 |
|
|
100394 |
0.87 |
|
Total shareholding of Promoter and Promoter Group (A) |
4468009 |
38.68 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
45 |
0.00 |
|
|
366535 |
3.17 |
|
|
450 |
0.00 |
|
|
367030 |
3.18 |
|
|
|
|
|
|
423366 |
3.67 |
|
|
|
|
|
|
2219507 |
19.22 |
|
|
1177016 |
10.19 |
|
|
2895072 |
25.07 |
|
|
11134 |
0.10 |
|
|
40138 |
0.35 |
|
|
2843000 |
24.61 |
|
|
800 |
0.01 |
|
|
6714961 |
58.14 |
|
Total Public shareholding (B) |
7081991 |
61.32 |
|
Total (A)+(B) |
11550000 |
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) |
11550000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Ball Thrust, Taper and Cylindrical Roller
Bearings. |
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Products : |
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PRODUCTION STATUS As on 31.03.2009
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Ball and Roller Bearings |
Nos. |
- |
7200000 |
4581474 |
|
Components |
Nos. |
- |
- |
321030 |
GENERAL INFORMATION
|
No. of Employees : |
432 (Approximately) |
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Bankers : |
· IDBI Bank Limited · State Bank of India |
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Facilities : |
Note: Long term
Borrowing: · Secured by first and exclusive hypothecation charge over plant and machinery purchased under the finance and first charge on other plant and machinery and second charge on current assets of the Company on pari passu basis. The balance of loan being current maturity included under note 10 is payable in June 14. · Term Loan 1: Secured by first and exclusive hypothecation charge over plant and machinery purchased under the finance and pari passu second charge over existing plant and machinery. Loan availed is R 3450.00 lacs against sanctioned amount of R 5000.00 lacs. The loan is repayable in 20 equal quarterly instalments of Rs. 173.00 lacs each from January, 2013 to October, 2017. Term Loan 2: Secured by first and exclusive hypothecation charge over plant and machinery purchased under the finance and pari passu first charge over unencumbered plant and machinery. Loan availed is R 522.00 lacs against sanctioned amount of R 1875.00 lacs. The loan is repayable in 20 equal quarterly instalments. · Secured by first and exclusive charge on Land and Building and entire moveable fixed assets including Plant and Machinery at Dehradun. Repayable in 20 quarterly instalments from January, 2015 Short Term
Borrowing : · Cash credit facilities are secured by first pari passu charge on stock-in-trade and book debts and second pari passu charge on Plant and Machinery of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Parikh and Shah Chartered Accountants |
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|
|
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Cost Auditors: |
B. J. D Nanabhoy and Company Cost Accountants |
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|
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Joint Venture Company: |
NSK – ABC Bearings Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11550000 |
Equity Shares |
Rs.10/- each |
Rs.115.500 Millions |
|
|
|
|
|
The reconciliation of
the number of shares outstanding at the beginning and at the end of the
reporting period :
|
|
31.03.2014 |
|
Number of shares at the beginning of the year |
11550000 |
|
Number of shares at the end of the year |
11550000 |
The Company has only one class of share, namely Equity Shares having face value of R 10/- each. The holder of equity shares is entitled to one vote per share. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their share holding.
b) Details of shareholders holding more than 5% shares as at March 31, 2014
is set out below:
|
Name of the shareholder |
31.03.2014 |
|
|
No. of Shares |
% of shares |
|
|
Tricot investments Limited |
2843000 |
24.61 |
|
Emsons Leasing Company Private Limited |
982985 |
8.51 |
|
MIPCO Investments Private Limited |
867479 |
7.51 |
|
Manoway Investments Private Limited |
728063 |
6.30 |
|
Maple Investments Company Private Limited |
654233 |
5.66 |
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 |
115.500 |
115.500 |
115.500 |
|
(b) Reserves &
Surplus |
1119.110 |
1099.814 |
1080.553 |
|
(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) |
1234.610 |
1215.314 |
1196.053 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
368.662 |
261.339 |
151.283 |
|
(b) Deferred tax
liabilities (Net) |
112.571 |
89.555 |
64.916 |
|
(c) Other long term
liabilities |
49.861 |
16.735 |
13.351 |
|
(d) long-term provisions |
12.523 |
13.013 |
10.400 |
|
Total Non-current
Liabilities (3) |
543.617 |
380.642 |
239.950 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
219.714 |
250.134 |
265.036 |
|
(b) Trade payables |
176.545 |
159.300 |
143.709 |
|
(c) Other current
liabilities |
211.368 |
300.382 |
180.350 |
|
(d) Short-term provisions |
31.645 |
45.229 |
82.352 |
|
Total Current Liabilities
(4) |
639.272 |
755.045 |
671.447 |
|
|
|
|
|
|
TOTAL |
2417.499 |
2351.001 |
2107.450 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1313.337 |
1203.714 |
899.972 |
|
(ii) Intangible Assets |
25.420 |
27.322 |
25.924 |
|
(iii) Capital
work-in-progress |
163.298 |
149.110 |
109.725 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
125.000 |
125.000 |
125.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
167.947 |
172.253 |
227.972 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1795.002 |
1677.399 |
1388.593 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
317.873 |
412.869 |
437.449 |
|
(c) Trade receivables |
220.690 |
200.136 |
238.245 |
|
(d) Cash and cash
equivalents |
11.646 |
10.917 |
13.299 |
|
(e) Short-term loans and
advances |
70.908 |
49.047 |
29.375 |
|
(f) Other current assets |
1.380 |
0.633 |
0.489 |
|
Total Current Assets |
622.497 |
673.602 |
718.857 |
|
|
|
|
|
|
TOTAL |
2417.499 |
2351.001 |
2107.450 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
1414.523 |
1494.672 |
1769.126 |
|
|
Other Income |
2.304 |
2.411 |
10.178 |
|
|
TOTAL (A) |
1416.827 |
1497.083 |
1779.304 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
644.875 |
728.037 |
1042.863 |
|
|
Purchases of
Stock-in-Trade |
3.187 |
2.332 |
5.069 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
69.529 |
(12.720) |
(198.294) |
|
|
Employees benefits
expense |
179.124 |
213.784 |
186.558 |
|
|
Other expenses |
348.355 |
370.429 |
440.301 |
|
|
Exceptional item |
-37.420 |
0.000 |
0.000 |
|
|
TOTAL (B) |
1207.650 |
1301.862 |
1476.497 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
209.177 |
195.221 |
302.807 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
40.182 |
31.492 |
14.396 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
168.995 |
163.729 |
288.411 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
98.900 |
85.631 |
64.709 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
70.095 |
78.098 |
223.702 |
|
|
|
|
|
|
|
Less |
TAX (I) |
23.773 |
25.055 |
70.276 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-I) (J) |
46.322 |
53.043 |
153.426 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD (K) |
84.140 |
70.179 |
83.872 |
|
|
|
|
|
|
|
Add |
Earlier year excess
proposed dividend and dividend distribution tax (L) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
4.600 |
5.300 |
100.000 |
|
|
Proposed Dividend |
23.100 |
28.875 |
57.750 |
|
|
Tax on Proposed Dividend |
3.926 |
4.907 |
9.369 |
|
|
Total (M) |
31.626 |
39.082 |
167.119 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S (J+K+L-M) |
98.836 |
84.140 |
70.179 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
36.195 |
21.352 |
21.176 |
|
|
TOTAL EARNINGS |
36.195 |
21.352 |
21.176 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2.103 |
20.570 |
8.626 |
|
|
Stores and Spares |
0.617 |
2.423 |
1.309 |
|
|
Capital Goods |
74.639 |
224.153 |
112.084 |
|
|
TOTAL IMPORTS |
77.359 |
247.146 |
122.019 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
4.01 |
4.59 |
13.28 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
3.27 |
3.54 |
8.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.96 |
5.23 |
12.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.29 |
3.76 |
11.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06 |
0.06 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.48 |
0.42 |
0.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97 |
0.89 |
1.07 |
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 |
115.500 |
115.500 |
115.500 |
|
Reserves & Surplus |
1080.553 |
1099.814 |
1119.110 |
|
Net worth |
1196.053 |
1215.314 |
1234.610 |
|
|
|
|
|
|
long-term borrowings |
151.283 |
261.339 |
368.662 |
|
Short term borrowings |
265.036 |
250.134 |
219.714 |
|
Total borrowings |
416.319 |
511.473 |
588.376 |
|
Debt/Equity ratio |
0.348 |
0.421 |
0.477 |
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 |
1769.126 |
1494.672 |
1414.523 |
|
|
|
-15.514 |
-5.362 |
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 |
1769.126 |
1494.672 |
1414.523 |
|
Profit |
153.426 |
53.043 |
46.322 |
|
|
8.67% |
3.55% |
3.27% |
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 |
Yes |
|
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 |
---------------------- |
|
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 |
No |
|
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 |
OPERATIONS:
The Commercial Vehicle Industry as a whole continued to be depressed showing negative growth once again which was in excess of 20%. The production dropped even further in medium and heavy commercial vehicles, a segment in which the Company supplies large quantum of bearings. The Tractor Industry grew at a healthy rate of 20% and the Company continues to enjoy a good share of business in this segment. In order to save cost in the recessionary period, the sourcing of low cost bearings by the user industry continues to increase, posing a challenge for the Company to retain market share.
The aftermarket business was severely affected by the industrial slow-down. The movement of commercial vehicles which are generally on road for 20 days in a month, dropped substantially due to low availability of cargo, thus reducing the replacement cycle of consumable parts in a vehicle, resulting in low consumption of such parts including bearings in the aftermarket.
In order to mitigate the difficult situation and to have long term sustainability, the Company introduced several new offerings for actual users and the aftermarket. These products have been well received in both the domestic and export market and should show good growth in the future.
The recessionary trend had an impact on both sales and production of the company’s plants especially, the Uttarakhand plant, the products of which cater mainly to the commercial vehicle manufacturers in Uttarakhand.
MANAGEMENT DISCUSSION
AND ANALYSIS:
Industry Structure
and Development
Indian economy experienced slower growth during 2013-14 due to inflationary pressures, high interest rates and absence of attention on core sectors. The market size of Indian Bearings industry is about K 70 billion. Imports comprise of 40% of bearing demand in India. The Original Equipment Manufacturers as well as players in replacement market had a challenging year for Indian bearing industry.
Opportunities and
Threats
Opportunities:
In the year 2014-15 Tractor industry has predicted a growth of approx 10%, however, though there is no clarity from commercial vehicle industry. They feel that once the new Government is formed and pending projects cleared, normalcy should return to the Industry. The Company is working with existing customers in their new projects and supplies to them is expected from December 2014 onwards. The Company has also identified new customers for new business opportunities and expected its approvals in 2014-15.
Government policy of opening up of mining and other core infrastructural areas like Building of Highways, Connecting of rivers through Canals, etc. will improve consumption level of bearings as it will increase the activities of Commercial Vehicle Industry.
Threats:
Low cost suppliers of bearings from domestic and overseas markets will continue in 2014-15. B and C category brands are making a big push into the aftermarket riding on the preference for low cost products. A category brands too are getting more aggressive, leading to price wars and reduced contribution levels. Extended payment cycles and bearing replacement cycles prove to be an impediment to business growth.
Outlook
Barring unforeseen natural disasters and unexpected policy changes by the government, the Company expects a dull start to the current fiscal and going forward post the general elections, it expects a normal sales pattern enabling it to stretch and reach its sales targets.
Financial performance
with respect to operations
The total sales for the year 2013-14 stood at K 1577.566 Millions. Reduction in demand led to lower production. Profit before tax or the year was K 70.096 Millions and the profit after tax was K 46.322 Millions. The Company has taken measures to remain financially stable focussing on quality and efficiency.
VIEW INDEX OF
CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10458217 |
27/08/2014 * |
150,000,000.00 |
TATA CAPITAL FINANCIAL SERVICES LIMITED |
One Forbes, Dr. V.
B. Gandhi Marg, Fort, Mumbai, |
C22191282 |
|
2 |
10437969 |
20/07/2013 |
187,500,000.00 |
STATE BANK OF INDIA |
BHARUCH BRANCH, OPP. JILLA PANCHAYAT OFFICE, BHARUCH, Gujarat - 392001, INDIA |
B80094311 |
|
3 |
10303609 |
06/08/2011 |
500,000,000.00 |
STATE BANK OF INDIA |
BHARUCH BRANCH,
OPPO: DISTRICT PANCHAYAT OFFICE, |
B19341858 |
|
4 |
10263109 |
13/06/2014 * |
845,400,000.00 |
State Bank of India |
NANDELAV BRANCH, NANDELAV, BHARUCH, Gujarat - 392001, INDIA |
C09054701 |
|
5 |
10162687 |
27/06/2012 * |
350,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B44046779 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Deposits from related parties |
39.183 |
31.600 |
|
Total |
39.183 |
31.600 |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
For guarantee and counter-guarantees to the Bank against Bank’s guarantee to the Government of India and other authorities |
0.000 |
0.025 |
|
Excise Duty demand disputed |
5.412 |
5.178 |
|
Income tax/Fringe Benefit Tax demand contested in appeal |
9.754 |
14.570 |
|
Sales tax demand disputed |
1.611 |
5.088 |
|
Claims against the Company not acknowledged as debt (including share of jointly controlled entity NSK-ABC Bearings Limited Rs 0.635 Millions previous year R 5.07 lacs) |
3.995 |
3.275 |
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30.06.2014
|
Sr. No. |
Particulars |
Quarter Ended |
|
30.06.2014 |
||
|
(Unaudited) |
||
|
1 |
Income from
Operations |
|
|
|
a) Net Sales |
400.271 |
|
|
b) Other Operating Income |
4.250 |
|
|
Total Income
from Operations (net) |
404.521 |
|
2 |
Expenses |
|
|
|
Cost of Materials
Consumed |
181.542 |
|
|
Purchases of
Stock-in-Trade |
1.212 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
28.853 |
|
|
Employees benefits
expense |
46.169 |
|
|
Depreciation and Amortisation Expenses |
28.033 |
|
|
Other Expenditure |
93.647 |
|
|
Total Expenses |
379.456 |
|
3 |
Profit / (Loss) from operations before other income, finance costs and
exceptional items |
25.065 |
|
4 |
Other Income |
1.177 |
|
5 |
Profit before finance cost and exceptional items |
26.242 |
|
6 |
Interest & Finance Costs |
12.400 |
|
7 |
Profit after finance costs but before exceptional items |
13.842 |
|
8 |
Exceptional Items (Net) |
-- |
|
9 |
Profit from ordinary activities before Tax |
13.842 |
|
10 |
Tax Expense |
|
|
|
-Current Tax |
2.753 |
|
|
-Deferred ax |
3.531 |
|
|
-MAT Credit Utilized |
(1.526) |
|
11 |
Net Profit from ordinary activities after tax |
9.084 |
|
12 |
Extraordinary Item (net of tax expenses) |
-- |
|
13 |
Net Profit for the period |
9.084 |
|
14 |
Paid-up Equity Shares Capital (Face value of Rs.10/- each) |
115.500 |
|
15 |
Reserves excluding Revaluation Reserve as per Balance Sheet of
Previous Year |
|
|
16 |
Earning Per Shares (EPS before extraordinary items) |
|
|
|
- Basic (in Rupees, not annualized) |
0.79 |
|
|
- Diluted (in Rupees, not annualized) |
0.79 |
|
18ii |
Earning Per Shares (EPS after extraordinary items) |
|
|
|
- Basic (in Rupees, not annualized) |
0.79 |
|
|
- Diluted (in Rupees, not annualized) |
0.79 |
|
PART II |
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public
shareholding |
|
|
|
- No of shares |
7081991 |
|
|
- Percentage of shareholding |
61.32% |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- No of shares |
-- |
|
|
- Percentage of shares (as a % of the total shareholding of promoters
and promoter group |
-- |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
-- |
|
|
b)
Non-encumbered |
|
|
|
- No of shares |
4468009 |
|
|
- Percentage of shares (as a % of the total shareholding of promoters
and promoter group |
100% |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
38.68% |
|
B |
INVESTOR COMPLAINTS |
3 months ended as on 30.06.2013 |
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
4 |
|
|
Disposed of during the quarter |
4 |
|
|
Remaining unresolved at the end of the quarter |
0 |
Note:
· Exceptional item for the quarter ended March 31, 2014 pertains to excess provision written back for managerial remuneration Rs. 374.20 lacs.
·
The Company is primarily engaged in the business of Bearings and accordingly
there are no separate reportable segments pursuant to Accounting Standard-17 on
"Segment Reporting".
·
The above results subjected to a "Limited Review" by the Statutory
auditors have been reviewed by the Audit Committee and taken on record by the
Board of Directors at its meeting held on July 17, 2014.
·
Figures have been regrouped wherever necessary for comparison.
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Machinery
·
Equipments, Appliances and Tools
·
Electrical Installations
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
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. 61.03 |
|
|
1 |
Rs. 98.63 |
|
Euro |
1 |
Rs. 77.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TRU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
|
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.