MIRA INFORM REPORT
|
Report No. : |
319574 |
|
Report Date : |
25.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
FAG
BEARINGS INDIA LIMITED |
|
|
|
|
Registered
Office : |
Nariman Bhavan, 8th
Floor, 227, Backbay Reclamation, Nariman Point, Mumbai – 400021, Maharashtra |
|
Tel. No.: |
91-22-22022144 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2014 |
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|
|
|
Date of
Incorporation : |
27.04.1962 |
|
|
|
|
Com. Reg. No.: |
11-012340 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.166.200
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29130MH1962PLC012340 |
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|
|
|
TIN No.: |
Not Available |
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|
IEC No.: |
Not Available |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
PAN No.: [Permanent Account No.] |
AAACF3357Q
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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
and Seller of Ball and Roller Bearings and Related Components. |
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|
|
|
No. of Employees
: |
1477 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of “FAG KUGELFISCHER GMBH” Germany. It is a
well-established company having fine track record. Subject is a leading player in the Indian Bearing industry and it manufactures
a very wide range of bearings and supplier to the automotive industry,
mechanical and electrical engineering industry. The rating reflects company’s healthy operational risk profile marked
by adequate liquidity position and decent profitability margins of the
company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
Not Available
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Piyush Jain |
|
Designation : |
Senior Accounts Manager |
|
Contact No.: |
91-22-22022144 |
|
Date : |
03.04.2015 |
LOCATIONS
|
Registered Office : |
Nariman Bhavan, 8th Floor, 227,
Backbay Reclamation, Nariman Point, Mumbai - 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22022144 / 362 / 166 / 66814444-4499 |
|
Fax No.: |
91-22-22027022 |
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E-Mail : |
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|
Website : |
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|
Location : |
Owned |
|
|
|
|
Head Office/ Factory 1: |
P.O. Maneja, Vadodara – 390013, Gujarat, India |
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Tel. No.: |
91-265-6602000-2004 |
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Fax No.: |
91-265-2638804 |
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E-Mail : |
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Factory 2 : |
Plot No.1 (Alindra),
Savli, GIDC Phase - III, Taluka Savli, Vadodara – 391775, Gujarat, India |
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|
|
|
Postal Address : |
C.P. Patel Finance, J C Patel Estate, Block No. 176, Bharat Baug, NH
8, Rangoli Crossing, Po Dasrath, Vadodara – 391740, Gujarat, India |
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|
|
|
Sales Offices
: |
Located At:
|
DIRECTORS
AS ON 31.12.2014
|
Name : |
Mr. Avinash Gandhi |
|
Designation : |
Chairman |
|
Date of Birth/ Age : |
October 1, 1938 |
|
Qualification : |
B.Sc. in Mechanical Engineering |
|
Date of Appointment : |
20.04.2006 |
|
DIN No.: |
00161107 |
|
|
|
|
Name : |
Mr. Rajendra Anandpara |
|
Designation : |
Managing Director |
|
DIN No.: |
02461259 |
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|
|
|
Name : |
Mr. Klaus Rosenfeld |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Dietmar Heinrich |
|
Designation : |
Director |
|
|
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|
Name : |
Mr. Frank Huber |
|
Designation : |
Director |
|
DIN No.: |
00689169 |
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|
|
|
Name : |
Mr. R. Sampath Kumar |
|
Designation : |
Director |
|
DIN No.: |
00495192 |
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|
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|
Name : |
Dr. Sanak Mishra |
|
Designation : |
Director |
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|
Name : |
Mrs. Renu Challu |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Rakesh Jinsi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Satish Patel |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Raj Sarraf |
|
Designation : |
Company Secretary |
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|
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|
Name : |
Mr. Piyush Jain |
|
Designation : |
Senior Accounts Manager |
SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
|
|
|
|
8529183 |
51.33 |
|
|
8529183 |
51.33 |
|
Total shareholding of Promoter and Promoter Group (A) |
8529183 |
51.33 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2858871 |
17.20 |
|
|
2033 |
0.01 |
|
|
174494 |
1.05 |
|
|
705489 |
4.25 |
|
|
3470 |
0.02 |
|
|
3360 |
0.02 |
|
|
110 |
0.00 |
|
|
3744357 |
22.53 |
|
|
|
|
|
|
1215011 |
7.31 |
|
|
|
|
|
Individual shareholders holding nominal share capital up
to Rs.0.100 Million |
1247618 |
7.51 |
|
Individual shareholders holding nominal share capital in excess
of Rs.0.100 Million |
262042 |
1.58 |
|
|
1619059 |
9.74 |
|
|
67339 |
0.41 |
|
|
6617 |
0.04 |
|
|
1545103 |
9.30 |
|
|
4343730 |
26.14 |
|
Total Public shareholding (B) |
8088087 |
48.67 |
|
Total (A)+(B) |
16617270 |
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) |
16617270 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Seller of Ball and Roller Bearings and Related Components. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
1477 (Approximately) |
|
|
|
|
Bankers : |
ICICI Bank Limited |
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|
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
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Memberships : |
-- |
|
|
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Collaborators : |
Schaeffler Group, Germany |
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|
|
|
Holding Company : |
·
FAG Kugelfischer GmbH, Germany |
|
|
|
|
Fellow
Subsidiary / Associate Companies |
· Schaeffler Australia Pty. Limited, Australia · Schaeffler Brasil Ltda., Brazil · Schaeffler (China) Co. Limited, China · Schaeffler (Ningxia) Co. Limited, China · Schaeffler Holding (China) Co. Limited, China · Schaeffler Trading (Shanghai) Co. Limited, China · Schaeffler (Nanjing) Co. Limited, China · Schaeffler Middle East FZE, Dubai · Schaeffler France S.A.S., France · Schaeffler Technologies GmbH & Co. KG, Germany · (Formerly known as Schaeffler Technologies AG & Co. KG.) · Schaeffler AG, Germany · Schaeffler Automotive Aftermarket · GmbH and Co. KG, Germany · FAG Industrial Services GmbH, Germany · LuK Truckparts GmbH and Co. KG, Germany · Schaeffler Verwaltung Zwei GmbH, Germany · Schaeffler Hong Kong Company Limited, Hong Kong · INA Bearings India Private Limited, India · FAG Roller Bearings Private Limited, India · LuK India Private Limited, India · Schaeffler Bearings Indonesia, PT, Indonesia · Schaeffler Japan Co. Limited, Japan · Schaeffler Korea Corporation, Korea · Schaeffler Mexico, S. de R.L. de C.V., Mexico · Schaeffler Portugal S.A., Portugal · Schaeffler Philippines Inc., Philippines · SC Schaeffler Romania S.R.L., Romania · Schaeffler (Singapore) Pte. Limited, Singapore · INA Kysuce, spol. s r.o, Slovakia · Schaeffler (Thailand) Co. Limited, Thailand · The Barden Corporation (UK) Limited, UK · The Barden Corporation, USA · Schaeffler Group USA Inc., USA · Schaeffler Vietnam Co. Limited, Vietnam |
CAPITAL STRUCTURE
AS ON 31.12.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000
Million |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16818270 |
Equity Shares |
Rs.10/- each |
Rs.168.200
Million |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16617270 |
Equity Shares |
Rs.10/- each |
Rs.166.200
Million |
|
|
|
|
|
Ř
Reconciliation
of shares outstanding at the beginning and at the end of the year
|
Equity Shares |
Number of Shares |
Rs. In Million |
|
Shares outstanding at the beginning and at the end of the year |
16617270 |
166.200 |
Ř
Rights,
preferences and restrictions attached to equity shares
1. The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of shareholders are in proportion to its share of paid-up equity capital of the Company.
2. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company.
Ř
Shares
held by Holding / Ultimate Holding Company and/or their Subsidiaries /
Associates
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
|
|
|
|
FAG Kugelfischer GmbH (the holding Company) |
8529183 |
51.33 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2014 |
31.12.2013 |
31.12.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
166.200 |
166.200 |
166.200 |
|
(b) Reserves & Surplus |
10908.700 |
9729.300 |
8628.800 |
|
(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) |
11074.900 |
9895.500 |
8795.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
154.000 |
174.100 |
64.400 |
|
(c) Other long term
liabilities |
15.200 |
16.100 |
15.200 |
|
(d) long-term
provisions |
329.000 |
205.000 |
229.400 |
|
Total Non-current
Liabilities (3) |
498.200 |
395.200 |
309.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
2160.600 |
2404.700 |
1786.100 |
|
(c) Other
current liabilities |
420.000 |
488.500 |
417.700 |
|
(d) Short-term
provisions |
188.200 |
148.800 |
128.800 |
|
Total Current
Liabilities (4) |
2768.800 |
3042.000 |
2332.600 |
|
|
|
|
|
|
TOTAL |
14341.900 |
13332.700 |
11436.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3699.400 |
3983.400 |
2782.200 |
|
(ii)
Intangible Assets |
3.000 |
5.500 |
9.400 |
|
(iii)
Capital work-in-progress |
201.200 |
134.300 |
1135.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
43.500 |
43.500 |
43.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
999.400 |
1765.100 |
754.300 |
|
(e) Other
Non-current assets |
0.000 |
4.600 |
4.600 |
|
Total Non-Current Assets |
4946.500 |
5936.400 |
4729.500 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1908.900 |
1705.800 |
1422.100 |
|
(c) Trade
receivables |
2900.500 |
2906.000 |
2547.100 |
|
(d) Cash
and cash equivalents |
3294.500 |
2376.600 |
1948.200 |
|
(e)
Short-term loans and advances |
1201.900 |
347.100 |
755.400 |
|
(f) Other
current assets |
89.600 |
60.800 |
34.300 |
|
Total
Current Assets |
9395.400 |
7396.300 |
6707.100 |
|
|
|
|
|
|
TOTAL |
14341.900 |
13332.700 |
11436.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2014 |
31.12.2013 |
31.12.2012 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
16321.500 |
14024.200 |
14466.500 |
|
|
|
|
Other Income |
409.500 |
458.600 |
446.300 |
|
|
|
|
TOTAL (A) |
16731.000 |
14482.800 |
14912.800 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
6020.800 |
5036.800 |
4782.900 |
|
|
|
|
Purchase of Stock-in-trade |
3973.500 |
4256.100 |
4045.300 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and
stock-in-trade |
(21.100) |
(322.000) |
247.700 |
|
|
|
|
Employee Benefits Expenses |
1379.400 |
1191.300 |
1128.900 |
|
|
|
|
Other Expenses |
2551.500 |
2026.100 |
2057.600 |
|
|
|
|
TOTAL (B) |
13904.100 |
12188.300 |
12262.400 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2826.900 |
2294.500 |
2650.400 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
9.700 |
7.600 |
13.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
2817.200 |
2286.900 |
2637.400 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
493.500 |
432.500 |
302.700 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
2323.700 |
1854.400 |
2334.700 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
794.900 |
636.100 |
742.900 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
1528.800 |
1218.300 |
1591.800 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6490.300 |
5739.300 |
4594.000 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Transfer to General Reserve |
400.000 |
350.000 |
350.000 |
|
|
|
|
Dividend |
124.600 |
99.700 |
83.100 |
|
|
|
|
Tax on Dividend |
21.200 |
17.600 |
13.400 |
|
|
|
BALANCE CARRIED
TO THE B/S |
7473.300 |
6490.300 |
5739.300 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Service income |
0.000 |
0.200 |
17.000 |
|
|
|
|
FOB value of exports |
2922.500 |
2219.400 |
2008.200 |
|
|
|
|
Others |
11.800 |
13.900 |
11.600 |
|
|
|
TOTAL EARNINGS |
2934.300 |
2233.500 |
2036.800 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials and components |
2414.100 |
1731.300 |
1711.600 |
|
|
|
|
Products Purchased for sale |
3126.900 |
3257.700 |
3008.600 |
|
|
|
|
Stores & Spares for maintenance of
machinery |
173.300 |
109.100 |
103.200 |
|
|
|
|
Capital Goods |
122.000 |
389.100 |
711.100 |
|
|
|
TOTAL IMPORTS |
5836.300 |
5487.200 |
5534.500 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
92.00 |
73.32 |
95.79 |
||
KEY RATIOS
|
PARTICULARS |
|
31.12.2014 |
31.12.2013 |
31.12.2012 |
|
Net Profit Margin PAT / Sales |
(%) |
9.37 |
8.69 |
11.00 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
17.32 |
16.36 |
18.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
16.48 |
14.10 |
22.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
0.19 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.39 |
2.43 |
2.88 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.12.2012 |
31.12.2013 |
31.12.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
166.200 |
166.200 |
166.200 |
|
Reserves & Surplus |
8628.800 |
9729.300 |
10908.700 |
|
Net
worth |
8795.000 |
9895.500 |
11074.900 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2012 |
31.12.2013 |
31.12.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales |
14466.500 |
14024.200 |
16321.500 |
|
|
|
(3.057) |
16.381 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2012 |
31.12.2013 |
31.12.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales
|
14466.500 |
14024.200 |
16321.500 |
|
Profit |
1591.800 |
1218.300 |
1528.800 |
|
|
11.00% |
8.69% |
9.37% |
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
FINANCIAL AND OPERATIONAL PERFORMANCE
ECONOMY
After witnessing
low GDP growth of 4.7 % in FY 2013-14, the year 2014 saw moderate improvement
in the country's economic climate. GDP growth in the first six months of
financial year 2014-15 improved to 5.5%. Service sector continued its strong
growth trend while Agriculture too, contributed through reasonable development.
Development of Industrial Production though remained very erratic as reflected
in the Index of Industrial Production (IIP) which grew very modestly at 1.5%
during the year 2014.
Inflation
remained in control as the Wholesale Price Index (WPI) continued the trend of
deceleration. A sharp drop in crude oil prices, pushed WPI trend further south
- from high of 6% in May 2014, WPI dropped to just 0.1% by December 2014.
After
the historic general elections in May 2014, a new majority government at the
Centre was formed in India. There are high expectations that a strong
government not constrained by coalition politics will usher in significant
reforms that can accelerate growth in the medium term.
Despite
positive sentiments, the year 2014 saw lackluster momentum in investment cycle.
RBI continued its conservative approach on interest rates and only marginally
reduced the repo rate by 25 bps in January 2015.
On the
Foreign Exchange Rate front, after a period of high volatility in year 2013,
Indian Rupee seems to have stabilized with respect to USD while it improved
considerably with respect to Euro.
INDUSTRY TREND AND DEMAND DEVELOPMENT
Against
the above backdrop, growth in demand of your Company's products both for
automotive and industrial sector remained moderate during the year 2014.
The
two wheeler sector surprised by notching up 2-digit growth. On other hand,
passenger cars and commercial vehicles did not grow as expected; while
production of agricultural tractors declined in 2014 after registering growth
in 2012 and 2013.
Due to
overall cash crunch and slow progress in implementation of infrastructure and
capacity increase in projects, demand from sectors such as Electric Motors, Industrial
Gearbox, Railways and Heavy Industries was sluggish throughout the year 2014.
Demand from Aftermarket was stable though the market saw intensified
competitive actions thus limiting scope for smart recovery in volume and
margins.
In the
exports markets, demand of your Company's products was strong.
PERFORMANCE
The
Company's Income for the year 2014, was placed at Rs.16731.000 million which is
15.5% higher than corresponding figures for the year 2013.
With
increase in production at Maneja and Savli plants, exports grew by 33%. Other
sectors of the Company's business viz. Automotive, Industry and Aftermarket -
each posted a good double digit growth. Profit from ordinary activities Before
Tax increased to Rs.2323.700 million (2013: Rs.1854.400 million); while Profit
after Tax increased to Rs.1528.800 million (2013: Rs.1218.300 million) given
modest economic environment, they consider the Company's performance as
encouraging.
OUTLOOK
As
they look ahead, effective implementation of economic agenda holds the key to
nation's progress. Industry indeed faces challenges of rigid labour laws, poor
infrastructure, to name a few. Yet there is growing optimism that the
government at the Centre is pushing reforms and will take actions to create a
positive climate where dream of 'Make in India' becomes a reality. In the short
term, economic and industrial growth will largely depend on revival of
investment cycle. The year 2015, may prove to be a year in transition before
the economy moves to fast-track mid and long-term growth.
The
Company has strong fundamentals, follows robust customer and innovation focused
strategy, emphasises on operational excellence and constantly empowers and
motivates its people to pursue higher goals. This gives us confidence that the
Company is capable of meeting growing customer expectations and is well
prepared to benefit from medium and long-term growth of Indian economy.
MANAGEMENT DISCUSSION AND ANALYSIS
MACRO-ECONOMIC ENVIRONMENT
During
the year 2014, the global economy struggled to gain momentum. According to
World Bank's Economic Prospects report released in January 2015, global growth
in year 2014 was placed at 2.6%. The report mentions rise in economic activity
in United States while Euro area continues to give mixed signals and China
seems to be undergoing a carefully managed slowdown. Sharp decline in oil
prices since mid-2014 is expected to support economic activity especially in
oil importing developing economies. Overall, the report expects global economic
growth in year 2015 at 3.0% that is only slightly higher than year 2014.
At
home in India, after slowing to sub 5% in financial year 2013- 14, Indian
economy is showing signs of moderate growth momentum during the current fiscal
year 2014-15.
NO CHARGES EXIST FOR COMPANY.
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.63.40 |
|
UK Pound |
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.68.49 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
74 |
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.