MIRA INFORM REPORT

 

 

Report No. :

336649

Report Date :

13.08.2015

 

IDENTIFICATION DETAILS

 

Name :

PRICOL LIMITED

 

 

Registered Office :

CPM Towers, 109 Race Course, Coimbatore – 641018, Tamilnadu

Tel. No.:

91-91-422-4336000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

06.03.1972

 

 

Com. Reg. No.:

19-000641

 

 

Capital Investment / Paid-up Capital :

Rs. 94.797 Million

 

 

CIN No.:

[Company Identification No.]

L33129TZ1972PLC000641

 

 

IEC No.:

0488017327

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CMPB03136A

 

 

PAN No.:

[Permanent Account No.]

AABCP2380C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Automotive Components.

 

 

No. of Employees :

4477 (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 7640000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old established company incorporated during the year 1972 having a satisfactory track record.

 

The company has incurred a loss during FY 2015.

 

However, net worth of the company is satisfactory. General financial position of the company is good.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct.

 

In view of long standing record and acceptable financial base, the company can be considered normal for business dealings at usual trade terms and conditions.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long-term facilities = (A-)

Rating Explanation

Adequate degree of safety and carry low credit risk.

Date

May 2015

 

Rating Agency Name

ICRA

Rating

Short term facilities = (A2+)

Rating Explanation

Strong degree of safety and carry low credit risk

Date

May 2015

 

 

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 31-03-2013.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON – CO OPERATIVE

 

(TEL. NO.: 91-422-4336000)

 

 

 

LOCATIONS

 

Registered Office :

CPM Towers, 109 Race Course, Coimbatore – 641018, Tamilnadu, India

Tel. No.:

91-422-4336000

Fax No.:

91-422-4336299

E-Mail :

cs@pricol.co.in

Website :

http://www.pricol.com

 

 

Factory 1 :

132, Mettupalayam Road, Perianaickenpalayam, Coimbatore - 641020, Tamilnadu, India

 

 

Factory 2 :

Plot No.34 and 35, Sector 4, IMT Manesar, Gurgaon - 122 050, Haryana, India.

 

 

Factory 3 :

4/558, Chinnamathampalayam, Billichi Village, Press Colony Post, Coimbatore – 641019, Tamilnadu, India

 

 

Factory 4 :

Survey No.1065 and 1066, Pirangut, Taluk Mulshi, Pune – 412108, Maharashtra, India

 

 

Factory 5 :

Plot No. 45, Sector 11, Integrated Industrial Estate, Pantnagar, SIDCUL, District U.S. Nagar, Rudrapur – 263153,  Uttarakhand, India

 

 

Factory 6 :

523/1, Chinnamat Hampalayam, Bilichi Village, Press Colony Post, Coimbatore India

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Mr. Vijay Mohan

Designation :

Chairman

Date of Birth/Age :

40 years

Qualification :

Bachelors Degree in Production Engineering with Honours from PSG College of Technology, Coimbatore

 

 

Name :

Mrs. Vanitha Mohan

Designation :

Vice Chairman

Date of Birth/Age :

62 years

Qualification :

Commerce Graduate with a Post Graduate Diploma in Business Management from the University of Strathchyde, Glasgow, UK

 

 

Name :

Mr. Vikram Mohan,

Designation :

Managing Director

 

 

Name :

Mr. D. Sarath Chandran

Designation :

Director

 

 

Name :

Mr. C.R. Swaminathan

Designation :

Director

 

 

Name :

Mr. K. Murali Mohan

Designation :

Director

 

 

Name :

Mr. Suresh Jagannathan

Designation :

Director

 

 

Name :

Mr. R. Vidhya Shankar

Designation :

Director

 

 

Name :

Mr. G. Soundararajan

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. J. Sridhar

Designation :

Chief Financial Officer

 

 

Name :

Mr. T.G. Thamizhanban

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2015

 

Category of Shareholders

No. of Shares

 

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

24735007

26.09

http://www.bseindia.com/include/images/clear.gifBodies Corporate

13385366

14.12

http://www.bseindia.com/include/images/clear.gifSub Total

38120373

40.21

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

38120373

40.21

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

240378

0.25

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

95340

0.10

http://www.bseindia.com/include/images/clear.gifVenture Capital Funds

2700000

2.85

http://www.bseindia.com/include/images/clear.gifInsurance Companies

268966

0.28

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

250933

0.26

http://www.bseindia.com/include/images/clear.gifSub Total

3555617

3.75

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

15487785

16.34

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

31361347

33.08

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4667289

4.92

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1604310

1.69

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1602810

1.69

http://www.bseindia.com/include/images/clear.gifTrusts

1500

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

53120731

56.04

Total Public shareholding (B)

56676348

59.79

Total (A)+(B)

94796721

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

94796721

100.00

 

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Automotive Components.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

4477 (Approximately)

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

·         State Bank of India

·         The Bank of Nova Scotia

·         HDFC Bank Limited

·         ICICI Bank Limited

·         Bank of Bahrain and Kuwait B.S.C.

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Rupee Term Loan from Bank

200.000

0.000

 

 

 

SHORT TERM BORROWINGS

 

 

Working Capital Facilities from Banks

 

 

In Rupee

0.102

305.423

In Foreign Currency

0.000

33.994

 

 

 

Total

 

200.102

339.417

 

NOTE:

 

LONG-TERM BORROWINGS

 

Term Loan of Rs 300.000 Million for Medium Term Working Capital from Bank of Bahrain and Kuwait B.S.C. is repayable in 12 quarterly instalments of Rs. 25.000 Million each. Interest is payable on monthly basis at the rate of Bank Base Rate plus 10 bps. The loan is secured by an exclusive charge on the specific land and building of Plant III situated at Billichi Village, Coimbatore District. Present Outstanding as on 31st March, 2015 is Rs 300.000 Million (Previous year - Nil).

 

SHORT TERM BORROWINGS

 

Working Capital Facilities from State Bank of India, ICICI Bank, The Bank of Nova Scotia and IDBI Bank are secured by pari-passu first charge on the current assets of the Company. Working Capital Facilities are further secured by pari-passu second charge on the specific immovable properties situated at Plant I - Perianaickenpalayam, Coimbatore District, Tamilnadu.

 

Working Capital Facilities from Banks are repayable on demand and carries interest rates varying from 10.00% to 13.50% p.a.

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Haribhakti and Company LLP

Chartered Accountants

Address :

Coimbatore, Tamilnadu, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiary Companies :

·         Pricol Castings Limited

·         PT Pricol Surya Indonesia,

·         Pricol Asia Pte Limited, Singapore

·         Pricol Espana S.L. Spain

·         Pricol Do Brasil Componentes Automotivos Limited A, Brazil (Subsidiary of Pricol Espana S.L. Spain)

·         Integral Investments Limited

 

 

Joint Venture :

·         Johnson Controls Pricol Private Limited

·         Denso Pricol India Limited (Upto 16th March, 2015)

 

 

Others (Enterprise over which key management personnel are able to exercise significant influence) :

·         Pricol Holdings Limited

·         PPL Enterprises Limited (Formerly, Pricol Packaging Limited)

·         Pricol Technologies Limited

·         Pricol Travel Limited

·         Pricol Properties Limited

·         Pricol Corporate Services Limited

·         Pricol Engineering Industries Limited

·         Target Manpower Services Limited

·         Prinfra Limited

·         M and M Enterprises (India) Limited

·         Bhavani Infin Services India Private Limited

·         Shrimay Enterprises Private Limited

·         Sagittarius Investments Private Limited

·         Libra Industries

·         Leo Industries

·         Bhavani Global Enterprises

·         Ellargi and Co.

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

482,000,000

Equity Shares

Re. 1/- each

Rs. 482.000 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

94,796,721

Equity Shares

Re. 1/- each

Rs. 94.797 Million

 

 

 

 

 

 

Reconciliation of the Shares Outstanding at the beginning and at the end of the reporting period :

 

 

31.03.2015

Equity Shares

No of Shares (Million)

Rs. In Million

At the beginning of the period

94.500

94.500

Add : Shares issued during the year

0.297

0.297

At the closing of the period

94.797

94.797

 

Terms / rights attached to equity shares:

 

The Company has only one class of equity shares having a par value of ` 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

Details of Shareholders holding more than 5% shares in the company:

 

 

31.03.2015

Equity Shares of Re, 1/- each fully paid

No of Shares (Million)

Percentage Held

Vijay Mohan

9,828,353

10.37%

Viren Mohan

6,522,615

6.88%

 

Details of Shares held by Holding Company:

 

There are no Shares held by Holding Company / Subsidiaries of ultimate Holding Company.

 

Details of Shares issued for consideration other than in cash:

 

296,721 Shares of Re. 1/- each were allotted during the year in terms of scheme of amalgamation. There are no Shares allotted by way of Bonus Shares and there have been no shares bought back in the immediately preceeding five years.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

94.797

94.500

90.000

(b) Reserves & Surplus

2580.592

3113.320

2455.275

(c) Money received against share warrants

0.000

0.000

20.250

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

2675.389

3207.820

2565.525

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

200.000

0.000

0.000

(b) Deferred tax liabilities (Net)

14.000

81.000

40.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

112.867

60.564

39.243

Total Non-current Liabilities (3)

326.867

141.564

79.243

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

340.102

439.417

502.619

(b) Trade payables

1712.823

1654.288

1628.816

(c) Other current liabilities

474.003

323.801

856.969

(d) Short-term provisions

62.524

60.674

57.661

Total Current Liabilities (4)

2589.452

2478.180

3046.065

 

 

 

 

TOTAL

5591.708

5827.564

5690.833

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1646.094

1715.862

1738.012

(ii) Intangible Assets

76.056

76.608

69.447

(iii) Capital work-in-progress

38.535

17.329

26.048

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

527.563

603.853

388.050

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

59.500

35.047

55.151

(e) Other Non-current assets

297.873

624.716

578.693

Total Non-Current Assets

2645.621

3073.415

2855.401

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

2.100

0.000

0.000

(b) Inventories

1082.816

965.958

1062.456

(c) Trade receivables

1644.743

1589.746

1639.644

(d) Cash and cash equivalents

67.582

37.797

22.092

(e) Short-term loans and advances

138.480

146.423

102.004

(f) Other current assets

10.366

14.225

9.236

Total Current Assets

2946.087

2754.149

2835.432

 

 

 

 

TOTAL

5591.708

5827.564

5690.833

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

9004.890

8302.430

8738.943

 

 

Other Income

511.810

645.278

15.160

 

 

TOTAL                                    

9516.700

8947.708

8754.103

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

6002.960

5508.331

5447.852

 

 

Purchases of Stock-in-Trade

555.434

441.890

435.182

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

25.066

58.220

73.640

 

 

Employees benefits expense

1618.954

1316.505

1278.735

 

 

Other expenses

1061.390

928.409

899.169

 

 

TOTAL                                    

9263.804

8253.355

8134.578

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

252.896

694.353

619.525

 

 

 

 

 

Less

FINANCIAL EXPENSES                       

78.900

65.196

163.307

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX, DEPRECIATION AND AMORTISATION

173.996

629.157

456.218

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

352.545

306.646

319.501

 

 

 

 

 

Add

EXCEPTIONAL ITEMS

(46.768)

516.334

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

(225.317)

838.845

136.717

 

 

 

 

 

Less

TAX                                                                 

(45.345)

168.852

-20.687

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

(179.972)

669.993

157.404

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports Sales

1110.027

1360.086

1233.704

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Components

1613.510

1325.847

1415.858

 

 

Spares

8.054

7.130

5.594

 

 

Capital Goods

38.223

32.557

8.984

 

TOTAL IMPORTS

1659.787

1365.534

1430.436

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(1.91)

7.16

1.75

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

100.000

0.000

546.621

 

 

 

 

Cash Generated from Operations

327.254

756.471

657.202

 

 

 

 

Net Cash from operating activities

301.563

589.413

595.753

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

(2.00)

8.07

1.80

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

2.81

8.36

7.09

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(4.48)

16.11

2.59

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.08)

0.26

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.24

0.14

0.41

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.14

1.11

0.93

 

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

Re. 1.00/-

 

 

Market Value

Rs. 35.80/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

90.000

94.500

94.797

Reserves & Surplus

2455.275

3113.320

2580.592

Money received against share warrants

0.000

0.000

20.250

Share Application money pending allotment

0.000

0.000

0.000

Net worth

2545.275

3207.820

2695.639

 

 

 

 

Long-term borrowings

0.000

0.000

200.000

Short term borrowings

502.619

439.417

340.102

CURRENT MATURITIES OF LONG-TERM DEBTS

546.621

0.000

100.000

Total borrowings

1049.240

439.417

640.102

Debt/Equity ratio

0.412

0.137

0.237

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8738.943

8302.430

9004.890

 

 

(4.995)

8.461

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8738.943

8302.430

9004.890

Profit

157.404

669.993

(179.972)

 

1.80%

8.07%

(2.00%)

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10571927

04/05/2015

200,000,000.00

HDFC BANK LIMITED

115, R.K. SALAI, MYLAPORE, CHENNAI - 6 
00004, TAMILNADU, INDIA

C54931811

2

10571932

04/05/2015

200,000,000.00

HDFC BANK LIMITED

115, R.K. SALAI, MYLAPORE, CHENNAI - 6 
00004, TAMILNADU, INDIA

C54933817

3

10573139

29/04/2015

300,000,000.00

BANK OF BAHRAIN & KUWAIT BSC

GROUND FLOOR, HOTEL SUNNY'S BUILDING, NO.19/1(2), RE.S.NO.26&81, NH 47 BYE PASS JUNCTION, ALUVA, ERNAKULAM - 683101, KERALA, INDIA

C55557318

4

10120383

23/09/2011 *

104,000,000.00

INDIAN OVERSEAS BANK

1027-A, AVINASHI ROAD, NEAR VOC GROUND, UPPILIPALAYAM, COIMBATORE - 641018, TAMILNADU, INDIA

B23236433

5

80011618

04/06/2014 *

400,000,000.00

IDBI BANK LIMITED

"EXCELLANCE", 4TH FLOOR, 104, RACE COURSE ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

C05807938

6

80011628

29/06/2015 *

150,000,000.00

THE BANK OF NOVA SCOTIA

MITTAL TOWER, "B" WING,, NARIMAN POINT, MUMBAI - 400021, M AHARASHTRA, INDIA

C57630659

7

80011622

10/07/2015 *

350,000,000.00

ICICI BANK LIMITED

1090, FIRST FLOOR, CHERAN PLAZA, TRICHY ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

C60581568

8

80011623

18/05/2015 *

540,000,000.00

STATE BANK OF INDIA

1443, TRICHY ROAD, COIMBATORE - 641018 , TAMILNADU, INDIA

C54054846

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Working Capital Facilities from Banks

 

 

In Rupee

340.000

100.000

 

 

 

Total

 

340.000

100.000

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

On account of Pending Litigations

 

 

In respect of Joint Ventures

 

 

Excise / Customs Matters

3.320

3.320

Claims against the Company not acknowledged as debts

0.975

1.110

In respect of Others

 

 

Sales Tax Matters

48.147

39.474

Excise Matters

180.596

210.094

Others

 

 

Letter of Credit

79.268

97.299

 

 

 

Total

 

312.306

351.297

 

 

 

OPERATIONS

 

For the financial year 2014-15, their Company's domestic sales increased to Rs. 7842.345 Million from Rs. 6899.647 Million, a growth of 13.66%, despite a growth of only 8.32% by the auto industry.

 

Their export sales decreased by 17.13% to Rs. 1162.545 Million from Rs. 1402.783 Million. There was a steep production drop in two wheelers of our Overseas OEM Customers, Kawasaki Thailand / Indonesia and Piaggio Italy. In addition, there was a drop in the export sales to Europe since the economy there is yet to fully recover.

 

The overall sales of the Company increased by 8.46% to Rs. 9004.890 Million from Rs. 8302.430 Million, which is in line with the auto industry.

 

Reduction of sales in exports, after market and asset management systems, led to steep decline in profits. High increase in employee cost more than the normal levels was due to higher outflow in first year of long term wage settlement with Operators. These resulted in operational loss of Rs. 178.549 Million against the profit of Rs. 208.305 Million (excluding profit of rs. 114.206 Million from sale of land held as Stock-in-Trade) in 2013-14.

 

For the ensuing year 2015-16, the Company's business is expected to grow higher than the market, mainly due to new businesses generated. The Company has embarked upon further improving operational efficiency, efforts to control cost and generate profits for the year 2015-16.

 

 

AMALGAMATION

 

The Hon'ble High Court, Madras has sanctioned the Scheme of Amalgamation of Xenos Automotive Limited with Pricol Limited on 1st December, 2014 and a copy of the Order of the Hon'ble High Court in this regard was received by the Company on 16th December, 2014.

 

Consequent to the merger, 296,721 equity shares of Re. 1/- each of the Company was allotted to shareholders of Xenos, in ratio of 1 equity share of Re 1/- each of Pricol for every 122 equity shares of Rs 10/- each of Xenos. Paid-up equity share capital of their Company increased to Rs.  94.797 Million from Rs. 94.500 Million.

 

 

OUTLOOK, OPPORTUNITIES, CHALLENGES, RISKS AND CONCERNS

 

The automotive industry continued to show a sluggish trend during 2014-15 and this is expected to continue till the first half of 2015-16. Commercial vehicle is expected to revive from second half of 2015-16. The major concern is drop in sales in two wheeler and tractors from the last quarter of 2014-15 primarily due to slowdown in demand in the rural segment. Overall the industry is expected to grow by 5% to 6% during 2015-16.

 

Pricol is expected to grow more than the auto industry due to opportunities in its new range of products.

 

There is a growing demand for Telematics, a high end electronics product, in the Construction equipment segment. Pricol has now a matured product to cater to this growing demand.

 

With International Purchasing Office opening up aggressively in India by global players, there is a good opportunity for Pricol to sell its range of products to the same customer in multiple geographies. Pricol has won a global contract for Oil and Water Pumps with Renault for their new A Entry vehicle which is common in India, Europe and Brazil.

 

 

FIXED ASSETS:

 

Tangible Assets

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Leasehold Buildings

·         Plant & Machinery

·         Computer Equipment’s

·         Furniture and Fittings

·         Office Equipment’s

·         Vehicles

 

Intangible Assets

 

·         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, 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 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.64.83

UK Pound

1

Rs.101.00

Euro

1

Rs.71.82

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ARC

 

 

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

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

7

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.