MIRA INFORM REPORT
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Report No. : |
330067 |
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Report Date : |
02.07.2015 |
IDENTIFICATION DETAILS
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Name : |
CUMMINS INDIA LIMITED |
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Registered
Office : |
Kothrud, Pune – 411038, Maharashtra |
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Tel. No.: |
91-20-25385435/ 25380240 |
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Country : |
India |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
17.02.1962 |
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Com. Reg. No.: |
11-012276 |
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Capital
Investment / Paid-up Capital : |
Rs.554.400 Million |
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CIN No.: [Company Identification
No.] |
L29112PN1962PLC012276 |
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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.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of Diesel Engines and Filtration Equipments. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (73) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 82000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-built company came into existence in 1962. It is
engaged in the business of manufacturing of diesel engines and filtration
equipment. It has a fine track record. For the financial year ended 2015, the company possesses strong
operational performance and it has achieved good sales volume along with
upstanding profitability margin of 18.18%. Ratings also takes into consideration the impressive balance sheet of
the company having strong net worth position and zero debt balance sheet
profile. Further, it has long history of business operation and respectable and
experienced directors. Trade relation are reported as fair. Business is active. Payments
terms results to be and as per commitment. In the view of strong financial base and long business track record,
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.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
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Rating |
Not Available |
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Rating Explanation |
Not Available |
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Date |
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
31-03-2013.
INFORMATION DENIED
Management Non-Co-Operative (91-20-25385435/20-67067000)
LOCATIONS
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Registered Office / Factory 1 : |
Kothrud, Pune – 411038, Maharashtra, India |
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Tel. No.: |
91-20-25385435/ 25380240 |
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Fax No.: |
91-20-25380125 |
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E-Mail : |
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Website : |
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Corporate Office : |
Tower A, 5th Floor, Survey No.21, Balewadi, Pune – 411045,
Maharashtra, India |
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Tel. No.: |
91-20-67067000 |
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Fax No.: |
91-20-67067015 |
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Website : |
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Factory 2 : |
Plot No. 19/25A, Silver Industrial Estate, Bhimpore, Daman
396210, India |
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Factory 3 : |
Plot No. 206/2, Off. Nagar Road, Haveli, Pune-411014, Maharashtra,
India |
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Factory 4 : |
Gat No. 311/B&1B, Kasar Amboli, District Pune - 412111, Maharashtra,
India |
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Factory 5 : |
35A/1/2 Erandwane, Pune - 411038, Maharashtra, India |
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Factory 6 : |
MIDC Phaltan, Village Survadi, District Satara, Maharashtra, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Anant J. Talaulicar |
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Designation : |
Chairman and Managing Director |
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Address : |
Flat No.1901, Strelling Tower, Goregaonkar Road, Gamdevi,
Mumbai-400007, Maharashtra, India |
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Date of Birth/Age : |
11.07.1961 |
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Date of Appointment : |
01.08.2013 |
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DIN No.: |
00031051 |
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Name : |
Antonio Leitao |
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Designation : |
Director |
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Address : |
14945, 43rd Place N, Plymouth, MN 55444, U.S.A. |
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Date of Birth/Age : |
03.02.1964 |
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Date of Appointment : |
01.08.2013 |
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DIN No.: |
05336740
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Other
Directorship:
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Name : |
Edward Pence |
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Designation : |
Director |
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Address : |
993 Box Turtle Court, Columbus, Indiana 47201, Columbus, U.S.A |
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Date of Birth/Age : |
28.11.1957 |
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Date of Appointment : |
10.05.2013 |
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DIN No.: |
06577765 |
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Other
Directorship:
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Name : |
Nasser Munjee |
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Designation : |
Director |
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Address : |
Benedict Villa House No. 471, Saudevado, Chorao Island – 403102,
Tiswadi, Goa |
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Date of Birth/Age : |
18.11.1952 |
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Date of Appointment : |
01.08.2014 |
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DIN No.: |
0001080 |
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Name : |
Prakash .M. Telang |
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Designation : |
Director |
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Address : |
313-13th Floor, Samudra Mahal, Dr. A. B. Worli,
Mumbai-400018, Maharashtra, India |
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Date of Birth/Age : |
21.06.1947 |
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Date of Appointment : |
01.08.2014 |
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DIN No.: |
00012562 |
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Name : |
Priya S. Dasgupta |
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Designation : |
Director |
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Address : |
J-1810, Chittrajan Park, New Delhi-110019, India |
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Date of Birth/Age : |
30.06.1955 |
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Date of Appointment : |
01.08.2014 |
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DIN No.: |
00012552 |
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Name : |
Rajeev Balkrishna Bakshi |
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Designation : |
Director |
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Address : |
Sangha Residency, 12th Floor TTA, Palki Lane, Off Cadell
Road, Prabhadevi, Mumbai-400025, Maharashtra, India |
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Date of Birth/Age : |
07.05.1957 |
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Date of Appointment : |
20.10.2000 |
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DIN No.: |
00044621 |
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Name : |
Venu Srinivasan |
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Designation : |
Director |
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Address : |
West Side House No.3 (2), Adyar Club Gate Road, R.A. Puram,
Chennai-600028, Tamilnadu, India |
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Date of Birth/Age : |
11.12.1952 |
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Date of Appointment : |
27.01.2000 |
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DIN No.: |
00051523 |
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Name : |
J.M. Barrowman |
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Designation : |
Director |
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Address : |
68, Rusell Terrace, Leamington Spa, Warwickshire, CV31 1HE, U.K |
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Date of Birth/Age : |
06.03.1952 |
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Date of Appointment : |
08.11.2014 |
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DIN No.: |
00668324 |
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Name : |
Pradeep Bhargava |
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Designation : |
Director |
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Address : |
Flat No. 19, 3rd Floor, Cozy Retreat, Road No. 3, Sind
Co-Op. Housing Society, Aundh, Pune-411007, Maharashtra, India |
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Date of Birth/Age : |
25.06.1949 |
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Date of Appointment : |
23.05.2014 |
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DIN No.: |
00525234 |
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KEY EXECUTIVES
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Name : |
Mr. Pradip Phansalkar |
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Designation : |
Senior Manager, Secretarial |
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Name : |
Mr. Amit Atre |
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Designation : |
General Manager - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2015
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as
a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
683 |
0.00 |
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|
683 |
0.00 |
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141372000 |
51.00 |
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|
141372000 |
51.00 |
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Total shareholding of Promoter and Promoter Group (A) |
141372683 |
51.00 |
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(B) Public Shareholding |
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|
29463845 |
10.63 |
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|
234705 |
0.08 |
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|
18267492 |
6.59 |
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|
49930327 |
18.01 |
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|
97896369 |
35.32 |
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|
10037064 |
3.62 |
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|
24079270 |
8.69 |
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|
2307548 |
0.83 |
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|
1507066 |
0.54 |
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|
909954 |
0.33 |
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|
262580 |
0.09 |
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|
4556 |
0.00 |
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|
284752 |
0.10 |
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|
45224 |
0.02 |
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|
37930948 |
13.68 |
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Total Public shareholding (B) |
135827317 |
49.00 |
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Total (A)+(B) |
277200000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
277200000 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Diesel Engines and Filtration Equipments. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
--- |
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Financial
Institution : |
The Industrial Credit and Investment Corporation Of Ind. Limited 163,
Backbay Reclamation, Bombay - 400020, Maharashtra, India |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
Mutha Towers, 5th Floor, Suite No. 8, Airport Road,
Yerwada, Pune – 411006, Maharashtra, India |
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Holding Company (As
on 31.03.2014) : |
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Fellow subsidiaries
(As on 31.03.2014) : |
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Associate (As on
31.03.2014) : |
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Joint Venture (As
on 31.03.2014) : |
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CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital :Rs. 554.400
Million
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.2/-each |
Rs.800.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
277200000 |
Equity Shares |
Rs.2/-each |
Rs.554.400
Million |
Notes:
a. Reconciliation of
number of shares
|
Equity Shares |
31.03.2014 |
|
|
No. of Shares |
Amount (Rs. in Million) |
|
|
Balance as at the beginning and end of the year |
277200000 |
554.400 |
b. Rights,
preferences and restrictions attached to shares
The Company has only one class of equity shares having a par value of Rs.2 per share. Each shareholder is entitled to one vote per share held. 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 of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.
c. Details of
shareholders holding more than 5% of the aggregate shares in the Company
|
Particulars |
31.03.2014 |
|
|
No. of Shares |
% of holding |
|
|
Equity shares of Rs.2 each fully paid Cummins Inc., the holding company |
141372000 |
51.00% |
|
Life Insurance Corporation of India (Through various schemes) |
17927497 |
6.47% |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
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|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
554.400 |
554.400 |
554.400 |
|
(b) Reserves &
Surplus |
28310.800 |
25097.100 |
23312.900 |
|
(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) |
28865.200 |
25651.500 |
23867.300 |
|
|
|
|
|
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(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
630.800 |
465.100 |
327.800 |
|
(c) Other long term
liabilities |
183.000 |
201.900 |
191.400 |
|
(d) long-term provisions |
1265.100 |
1170.900 |
1293.500 |
|
Total Non-current
Liabilities (3) |
2078.900 |
1837.900 |
1812.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
6134.300 |
4851.100 |
5493.400 |
|
(c) Other current
liabilities |
2202.300 |
1856.700 |
2034.600 |
|
(d) Short-term provisions |
3936.700 |
3530.100 |
3488.200 |
|
Total Current Liabilities
(4) |
12273.300 |
10237.900 |
11016.200 |
|
|
|
|
|
|
TOTAL |
43217.400 |
37727.300 |
36696.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
14045.700 |
9175.200 |
4895.800 |
|
(ii) Intangible Assets |
0.000 |
16.300 |
38.500 |
|
(iii) Capital work-in-progress |
0.000 |
957.600 |
1207.900 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
457.200 |
533.900 |
533.900 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
4633.600 |
6879.500 |
4726.300 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
19136.500 |
17562.500 |
11402.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
4193.200 |
4419.600 |
5741.700 |
|
(b) Inventories |
6822.600 |
5513.400 |
5303.500 |
|
(c) Trade receivables |
9355.400 |
7820.300 |
8549.900 |
|
(d) Cash and cash
equivalents |
798.600 |
864.900 |
3546.500 |
|
(e) Short-term loans and
advances |
2838.100 |
1525.000 |
2061.900 |
|
(f) Other current assets |
73.000 |
21.600 |
90.300 |
|
Total Current Assets |
24080.900 |
20164.800 |
25293.800 |
|
|
|
|
|
|
TOTAL |
43217.400 |
37727.300 |
36696.200 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
44058.000 |
39766.700 |
45893.800 |
|
|
Other Income |
2865.800 |
1777.100 |
2067.200 |
|
|
TOTAL |
46923.800 |
41543.800 |
47961.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
26579.600 |
22808.400 |
27018.100 |
|
|
Purchases of
Stock-in-Trade |
1171.000 |
1484.300 |
1854.300 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(525.900) |
(51.600) |
1.900 |
|
|
Employees benefits
expense |
3936.000 |
3396.200 |
3386.200 |
|
|
Other expenses |
5546.800 |
5162.100 |
5284.500 |
|
|
TOTAL |
36707.500 |
32799.400 |
37545.000 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
10216.300 |
8744.400 |
10416.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
45.200 |
41.800 |
46.100 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
10171.100 |
8702.600 |
10369.900 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
797.200 |
527.500 |
472.500 |
|
|
|
|
|
|
|
Less/ Add |
Exceptional Items |
0.000 |
0.000 |
615.900 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
9373.900 |
8175.100 |
10513.300 |
|
|
|
|
|
|
|
Less |
TAX (I) |
1515.400 |
2174.900 |
2872.200 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
7858.500 |
6000.200 |
7641.100 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
|
|
|
|
|
Dividend |
|
3603.600 |
3603.600 |
|
|
Tax on Dividend |
|
612.400 |
601.700 |
|
|
Total |
|
4216.000 |
4205.300 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
|
12583.100 |
13159.700 |
|
|
Freight |
|
|
|
|
|
Insurance |
|
|
|
|
|
TOTAL EARNINGS |
|
12583.100 |
13159.700 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
|
521.600 |
658.800 |
|
|
Machinery Spares |
|
9.200 |
10.500 |
|
|
Tools, Stores, etc. |
|
9.600 |
7.800 |
|
|
Components and Stores
parts |
|
4247.300 |
4471.900 |
|
|
Capital Goods |
|
141.900 |
62.300 |
|
|
TOTAL IMPORTS |
NA |
4929.600 |
5211.300 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
28.35 |
21.65 |
27.57 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
5931.800 |
7943.200 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
17.84 |
15.09 |
15.31 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
23.19 |
21.99 |
22.70 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.92 |
22.56 |
28.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32 |
0.32 |
0.41 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96 |
1.97 |
2.30 |
STOCK
PRICES
|
Face Value |
Rs.2.00 |
|
Market Value |
Rs.933.80 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
3.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
554.400 |
554.400 |
554.400 |
|
Reserves & Surplus |
19877.100 |
23312.900 |
25097.100 |
|
Net
worth |
20431.500 |
23867.300 |
25651.500 |
|
|
|
|
|
|
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 |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
41172.200 |
45893.800 |
39766.700 |
|
|
|
11.468 |
(13.351) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
41172.200 |
45893.800 |
39766.700 |
|
Profit |
8151.700 |
10369.900 |
8702.600 |
|
|
19.80% |
22.60% |
21.88% |
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 |
No |
|
17] |
Details of sister concerns |
|
|
18] |
Major suppliers |
No |
|
19] |
Major customers |
No |
|
20] |
Banking Details |
Yes |
|
21] |
Banking facility details |
No |
|
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 |
Yes |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION DETAILS:
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Presentation Date :- 18.07.2014 |
|||||||
|
Lodging No. : |
CAFEST/19608/2014 |
Failing Date:- |
23/07/2014 |
Reg. No.:- |
CEF/1090/2015 |
Reg. Date:- |
11/03/2015 |
|
MAIN MATTER |
|||||||
|
Stamp No.: |
FAST/1960/2014 |
|
|
|
|
|
|
|
Petitioner:- |
EMPLOYEE STATE INSURANCE CORPORATION |
Respondent:- |
M/S. CUMMINS INDIA LIMITED |
||||
|
Petn. Adv:- |
P.M. PALSHIKAR(678) |
|
|
||||
|
District:- |
PUNE |
||||||
|
Bench:- |
SINGLE |
Category:- |
CONDONATION OF DELAY |
||||
|
Status:- |
Pre-Admission |
Stage:- |
FOR ORDERS (CONDONATION OF DELAY) [CIVIL SIDE MATTERS] |
||||
|
Coram:- |
HON’BLE SHRI JUSTICE K.K. TATED |
||||||
|
Last Date:- |
11.04.2014 |
Stage:- |
FOR REJECTION (ORIGINAL SIDE MATTERS) |
||||
|
|
|
||||||
|
Act. : |
Employees State Insurance Act, 1948 |
||||||
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10352228 |
18/07/2014 * |
1,320,000,000.00 |
State Bank of India |
Industrial Finance Branch, Tara Chambers, Pune, Maharashtra - 411003,
INDIA |
C12752069 |
|
2 |
90089545 |
28/03/1990 |
10,300,000.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
3 |
90089535 |
15/03/1990 |
3,400,000.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411038, INDIA |
- |
|
4 |
90089531 |
28/02/1990 |
16,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G.N VAIDYA MARG, BOMBAY, Maharashtra -
400023, INDIA |
- |
|
5 |
90089449 |
04/03/1989 |
10,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, Maharashtra, INDIA |
- |
|
6 |
90087620 |
30/09/1988 |
1,730,000.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR BRANCH, PUNE, Maharashtra - 411038, I |
- |
|
7 |
90089367 |
13/10/1987 |
1,217,800.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
8 |
90083474 |
25/06/1987 |
1,000,000.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411104, INDIA |
- |
|
9 |
90089336 |
19/04/1987 |
560,300.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
|
10 |
90089335 |
18/04/1987 |
285,100.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
* Date of charge modification
FINANCIAL RESULTS:
(As on 31.03.2014)
During the Financial Year 2013-14, net revenue from operations was Rs.39766.700 Million as compared to Rs.45893.800 Million during the previous year (13% lower). Exports and other foreign exchange earnings stood at Rs.12583.100 Million as compared to Rs.13159.700 Million during the previous year (4% lower). Profit after tax decreased to Rs.6000.200 Million from Rs.7641.100 Million recorded for the previous year (21% lower).
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry Structure
and Developments
Economic Trends and
Implications
- The Indian economic growth rate was flat with GDP growth estimated at 4.9%1) in FY 2013-14, as compared to a decade low of 4.5% in 2012-13. This was largely due to a slowdown in infrastructure investments, high inflation, political uncertainty, drop in foreign investment in the first three quarters of the fiscal and a weakening currency.
- FY 2013-14 saw the rupee decline to an all-time low as a result of the announcement of US tapering its simulative quantitative easing, slowing domestic economic growth as well as deficit spending on the part of the Indian government. Measures from the RBI helped arrest the fall of the rupee only to a very limited extent. The Current Account Deficit improved due to curbs on gold imports and lower domestic demand.
- The fiscal deficit improved due to reduction of fuel subsidies. The government took small and delayed steps to improve the business environment such as faster clearance of infrastructure projects, relaxation of FDI norms and new gas pricing guidelines. Measures are also being taken to lift mining bans which have adversely hit the exports of the country.
- Manufacturing output took a hit due to low demand and high interest rates. In spite of good monsoons resulting in lower food inflation, the repo rate was maintained at 8% to rein in core inflation.
- In the long term, India’s growth story remains intact, supported by a positive demographic dividend, rapid urbanization and increasing domestic consumption driven by a growing middle class.
- Post the elections in 2014, it is expected that the new government will take strong actions to revive growth.
Opportunities and
Threats
Key Opportunities
Power Generation:
- The average energy deficit in India has been 4.2% with peak power deficit of 4.5% and the power capacity addition has been around 12.5 GW in the last year.
- CPCB II - the second set of lower emission norms applicable to generator sets below 800 kW, have been announced by the Central Pollution Control Board, to be effective from July 1, 2014. These norms are likely to change the competitive landscape as the new norms demand greater technological capabilities.
- New global products launched have resulted in additional export opportunities for diesel and gas products. With the product from India gaining confidence globally, the Company is receiving repeat orders from its global customers.
Industrial:
- The increase in budget allocation towards infrastructure announced in the recent budget is likely to help in the overall infrastructure development in the medium term.
- The Supreme Court has removed the ban on mining blocks in Goa, as a result of which the business in Mining and Marine is likely to witness some increase.
- Infrastructure debt funds have been promoted to provide finances for infrastructure projects. These ought to have positive implications on the construction market.
- Budgetary support to Railways increased from Rs.260000.000 Million in BE FY 2013-14 to Rs.290000.000 Million in FY 2014-15 which would help the railways business. The increase in government spends on safety, modernization and fuel-efficiency will create additional opportunity for the Company in 2014. About 35-40% growth is expected over FY 2013-14 in the Diesel Electric Multiple Units (DEMU) segment.
- Increase in Defense expenditure is likely to boost the Marine Naval and Defense businesses. In FY 2013-14, 19 Oil and Gas blocks were given out for exploration.
- The Company will continue to dwell on indirect exports which will drive growth while the domestic market is expected to grow during the latter half of the next fiscal.
Automotive:
- The M&HCV market (Medium and Heavy commercial vehicles - GVW >7.5 Ton) shrank by 20% in FY 2013-14 over the previous year. This was mainly driven by lower GDP growth, high interest rates and further impact of fuel subsidy reduction on diesel. The market scenario continues to be uncertain. Excise duty benefit given by the government has only moderately helped in improving the situation.
- The M&HCV space has seen the entry of new
players, thereby increasing competition and price pressure.
- During the year, The Company launched a new product to attempt to change the dynamics within M&HCV, such as introduction of 4-Cylinder engines in the traditional 6-Cylinder applications in the 14T and 31T space.
- The Company launched electronic products with the increasing acceptability due to improved fuel economy and maintenance intervals.
Distribution:
- Emission regulations (CPCB II norms) and a shift to electronic engines is likely to improve the opportunities for the Distribution Business through increased sales of electronic parts and service opportunities.
- Improved customer reach, enhanced network capabilities and continuous improvement of service delivery and quality remains the key to drive profitable growth through Customer Support Excellence.
- The Company is continuing to invest heavily in modern capabilities to support long term growth. One major initiative is the introduction of a Common Dealer Operating System (CDOS) which will enable better data, information visibility and business integration across the dealer network and centrally by Cummins.
- The Company is also continuing to invest in Training Centers across the nation to ensure well trained technicians who will provide state-of–the-art support to the Company’s products.
Exports:
- Working with Cummins Inc., the Company was able to implement the identified opportunity with Brazil and Latin American markets for Heavy Duty engines. With the success of supplying Heavy Duty engines, new opportunities are being explored to supply High Horsepower engines to the Latin American market. The Company will continue to explore new geographies and hence markets to strengthen the exports portfolio.
- The Company successfully identified opportunities related to components supply to China. The Company will continue to build on this and increase the business in the coming years. Efforts continue to consolidate and maximize supplies of components from the Company by utilizing cost efficiencies.
Outlook and
Initiatives for the Current Year and Thereafter
Power Generation:
- Domestic market sentiments continue to be weak for capital goods which includes the genset market in the short term. The domestic power generation business is unlikely to see volume increase in the forthcoming financial year. However, with the increased export offerings, the Company is more optimistic about its low kVA exports business.
- With CPCB implementing more stringent environmental norms in the current financial year, the Company is positioned favourably in the competitive landscape as pioneers in producing engines with higher fuel-efficiency and cleaner technology. This will however lead to significant cost increase and subsequent price increases.
FIXED ASSETS
Tangible Assets
- Land
- Leasehold
Improvement
- Roads
- Buildings
- Plant and
Machinery
- Furniture and
Fixture
- Vehicles
Intangible Assets
- Software
- Technical
Knowhow
- Global
Sourcing Consideration
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.63.62 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.70.76 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
73 |
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.