MIRA INFORM REPORT
|
Report No. : |
324837 |
|
Report Date : |
06.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
WENDT INDIA LIMITED |
|
|
|
|
Registered
Office : |
Flat No.105, 1st Floor, Cauvery Block, National Games
Housing Complex, Koramangala, Bangalore – 560047, Karnataka |
|
Tel. No.: |
91-8022212625 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
21.08.1980 |
|
|
|
|
Com. Reg. No.: |
08-003913 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.20.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85110KA1980PLC003913 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRW00459E |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
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|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Super Abrasive Grinding Wheels
(Diamond and Cubic Boron Nitride), Special Purpose Grinding Machines and
Tools. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (79) |
|
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 |
|
Maximum Credit Limit : |
USD 2600000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
|
Comments : |
Subject is a well-established company having fine track record. The rating reflects the company’s strong Parentage being part of the Muruguppa
Group aiding its technological and operational development; its sustained
market position in the domestic super-abrasives industry and its diversified
customer and product mix lending business stability. Rating also takes into consideration company’s healthy operational
risk profile backed by adequate financial base and extensive industry
experience of its promoters. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. In view of adequate financial profile, 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 |
|
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 |
Fund based facilities = AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
May - 2015 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non-fund based facilities = A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest 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 DENIED BY
|
Name : |
Mr. Marga Bandhu |
|
Designation : |
Senior Manager Finance |
|
Contact No.: |
91-4344-405500 |
|
Date : |
28.05.2015 |
LOCATIONS
|
Registered Office : |
Flat No.105, 1st Floor, Cauvery Block, National Games
Housing Complex, Koramangala, Bangalore – 560047, Karnataka, India |
|
Tel. No.: |
91-80-25701423/ 1424 |
|
Fax No.: |
91-80-25701425 |
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E-Mail : |
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|
Website : |
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|
|
|
|
Factory : |
Plot 69/ 70, SIPCOT Industrial Estate, Hosur – 635126,
Tamilnadu, India |
|
Tel. No.: |
91-4344-276851/ 276852/ 276854/ 405500/ 405501 |
|
Fax No.: |
91-4344-405620/ 405619/ 405630 |
DIRECTORS
As on : 31.03.2014
|
Name : |
Mr. M M Murugappan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Edmar Allitsch |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shrinivas G Shirgurkar |
|
Designation : |
Independent Director |
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Date of Birth/ Age : |
08.04.1948 |
|
Qualification : |
BE (Mechanical) |
|
Date of
Appointment : |
17.04.2006 |
|
|
|
|
Name : |
Mr. K S Shetty |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Peter Verholen |
|
Designation : |
Alternate Director to (Edmar Allitsch) |
KEY EXECUTIVES
|
Name : |
Mr. Marga Bandhu |
|
Designation : |
Senior Manager Finance |
|
|
|
|
Name : |
Mr. Rajesh Khanna |
|
Designation : |
Chief Executive |
|
|
|
|
Name : |
J H Sastry |
|
Designation : |
Head - Lean & Management Systems |
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|
|
|
Name : |
D. R. Kulkarni |
|
Designation : |
Head - Technology and R & D |
|
|
|
|
Name : |
Mr. M S Venkatesh |
|
Designation : |
Business Head – Superabrasives |
|
|
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|
Name : |
Ms. S Sundriya |
|
Designation : |
Business Head – Non-Superabrasives
|
|
|
|
|
Name : |
Mr. Mukesh Kumar Hamirwasia |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Ms. Akanksha Bijawat |
|
Designation : |
Company Secretary |
|
Address : |
Plot No. 69/70, SIPCOT Industrial Estate Hosur- 635126, Tamil Nadu, India |
|
Tel No.: |
91-4344-276851/52, 405500 |
|
Email: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on ; 31.03.2015
|
As a % of (A+B+C) |
||
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
797352 |
39.87 |
|
|
797352 |
39.87 |
|
|
|
|
|
|
797352 |
39.87 |
|
|
797352 |
39.87 |
|
Total shareholding of Promoter and Promoter Group (A) |
1594704 |
79.74 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
1850 |
0.09 |
|
|
1850 |
0.09 |
|
|
|
|
|
|
15635 |
0.78 |
|
|
|
|
|
|
367114 |
18.36 |
|
|
14075 |
0.70 |
|
|
6622 |
0.33 |
|
|
3660 |
0.18 |
|
|
312 |
0.02 |
|
|
2650 |
0.13 |
|
|
403446 |
20.17 |
|
Total Public shareholding (B) |
405296 |
20.26 |
|
Total (A)+(B) |
2000000 |
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) |
2000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Super Abrasive Grinding Wheels
(Diamond and Cubic Boron Nitride), Special Purpose Grinding Machines and
Tools. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Divulged |
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|
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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 : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Bangalore, Karnataka, India |
|
|
|
|
Cost Auditor : |
M.R. Rajhshekar and Company Cost Accountants |
|
Address : |
Hosur, Tamilnadu, India |
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|
|
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Party with whom
control exists –Subsidiaries : (As on 31.03.2014) |
|
|
|
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|
Ventures to the
joint venture with whom transactions have taken place during the year : (As on 31.03.2014) |
|
|
|
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|
Memberships : |
Not Available |
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|
|
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Collaborators : |
Not Available |
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|
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Subsidiaries Company : (As on 31.03.2014) |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs. 20.000 Million
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 Million |
|
|
|
|
|
NOTE 2 (i)
|
Particulars |
As at 31st
March, 2014 |
|
|
|
No of shares |
Rs. In Millions |
|
Reconciliation of
the number of shares and amount outstanding at the beginning and at the end
of the year: |
|
|
|
No of shares outstanding at the beginning of the year |
2000000 |
20.000 |
|
Add: Additional shares issued during the year |
-- |
-- |
|
Less: Shares forfeited / Bought back during the year |
-- |
-- |
|
No of shares outstanding at the end of the year |
2000000 |
20.000 |
Details of Shares held by each Shareholder holding more than 5% Shares
in the Company
|
Particulars |
As at 31st
March, 2014 |
|
|
|
No of shares |
Percentage of holding % |
|
Equity Shares :
(with equal voting rights) |
|
|
|
Wendt GmbH, Germany |
797352 |
39.87 |
|
Carborundum Universal Limited, India |
797352 |
39.87 |
Rights, Preferences and Restrictions attached to shares
The Company has only one class of equity shares with voting rights (one vote per share). The dividends proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only the residual assets of the Company. The distribution of dividend is in the proportion to the number of equity shares held by the shareholders.
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 |
20.000 |
20.000 |
20.000 |
|
(b) Reserves & Surplus |
879.000 |
803.104 |
742.535 |
|
(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) |
899.000 |
823.104 |
762.535 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
53.100 |
48.687 |
38.366 |
|
(c) Other long term
liabilities |
4.300 |
4.109 |
5.290 |
|
(d) long-term provisions |
25.700 |
18.344 |
9.030 |
|
Total
Non-current Liabilities (3) |
83.100 |
71.140 |
52.686 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
154.400 |
159.634 |
138.493 |
|
(c) Other current liabilities |
37.900 |
47.600 |
55.480 |
|
(d) Short-term provisions |
42.900 |
37.040 |
35.391 |
|
Total
Current Liabilities (4) |
235.200 |
244.274 |
229.364 |
|
|
|
|
|
|
TOTAL |
1217.300 |
1138.518 |
1044.585 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
520.900 |
511.289 |
467.401 |
|
(ii) Intangible Assets |
14.900 |
12.373 |
8.909 |
|
(iii) Capital work-in-progress |
24.900 |
27.336 |
26.426 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
43.100 |
43.055 |
35.399 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
47.200 |
21.047 |
20.512 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
651.000 |
615.100 |
558.647 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
143.600 |
127.247 |
114.225 |
|
(b) Inventories |
164.400 |
155.416 |
138.478 |
|
(c) Trade receivables |
211.100 |
202.090 |
191.622 |
|
(d) Cash and cash equivalents |
7.000 |
6.013 |
8.353 |
|
(e) Short-term loans and
advances |
37.900 |
30.780 |
26.656 |
|
(f) Other current assets |
2.300 |
1.872 |
6.604 |
|
Total
Current Assets |
566.300 |
523.418 |
485.938 |
|
|
|
|
|
|
TOTAL |
1217.300 |
1138.518 |
1044.585 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
1069.600 |
956.493 |
897.051 |
|
|
Other Income |
66.400 |
49.509 |
14.959 |
|
|
TOTAL
(A) |
1136.000 |
1006.002 |
912.010 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
337.500 |
324.311 |
295.058 |
|
|
Purchases of Stock-in-Trade |
24.700 |
15.170 |
19.660 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(8.400) |
5.732 |
(2.825) |
|
|
Employees benefits expense |
181.200 |
176.772 |
143.898 |
|
|
Other expenses |
344.600 |
273.979 |
263.099 |
|
|
TOTAL
(B) |
879.600 |
795.964 |
718.890 |
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
256.400 |
210.038 |
193.120 |
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.800 |
0.220 |
0.076 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
255.600 |
209.818 |
193.044 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
79.200 |
45.816 |
40.292 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
176.400 |
164.002 |
152.752 |
|
|
|
|
|
|
|
Less |
TAX (H) |
27.900 |
45.321 |
51.569 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
148.500 |
118.681 |
101.183 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
|
233.829 |
171.899 |
|
|
Others |
|
29.800 |
3.414 |
|
|
TOTAL
EARNINGS |
|
263.629 |
175.313 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
|
226.215 |
193.035 |
|
|
Components and Stores parts |
|
8.647 |
8.192 |
|
|
Trade Goods |
|
10.226 |
11.928 |
|
|
Capital Goods |
|
26.788 |
15.314 |
|
|
TOTAL
IMPORTS |
NA |
271.876 |
228.469 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
74.24 |
59.34 |
50.59 |
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 |
NA |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
13.88 |
12.41 |
11.28 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
23.97 |
21.96 |
21.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.35 |
15.35 |
15.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20 |
0.20 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.41 |
2.14 |
2.12 |
STOCK
PRICES
|
Face Value |
Rs.10.00 |
|
Market Value |
Rs.1873 |
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 |
20.000 |
20.000 |
20.000 |
|
Reserves & Surplus |
742.535 |
803.104 |
879.000 |
|
Net
worth |
762.535 |
823.104 |
899.000 |
|
|
|
|
|
|
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 |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
897.051 |
956.493 |
1069.600 |
|
|
|
6.626 |
11.825 |
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 |
897.051 |
956.493 |
1069.600 |
|
Profit |
101.183 |
118.681 |
148.500 |
|
|
11.28% |
12.41% |
13.88% |
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
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 |
Yes |
|
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 |
Yes |
|
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 |
80014626 |
01/10/2010 * |
60,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RESIDENCY PLAZA, RESIDENCY ROAD, BANGALORE,
Karnataka - 560025, INDIA |
A97463863 |
ECONOMIC OVERVIEW (As
on 31.03.2014)
The slowdown in the Indian economy continued for the year 2013-14, resulting in another tough year with sluggish growth affecting domestic demand, high energy prices, weakening of the Indian Rupee, higher raw material costs, repeated increases in the interest rates and lower investments than expected. Fall in savings without corresponding reduction in aggregate investments in critical areas led to widening of current account deficit. Higher inflation rates particularly in food grains and essential items, have all added up to the successive deceleration. One of the main reasons of stalling growth has been the vicious cycle of regulatory delays, judicial intervention, risk aversion by financial institutions and corporations in high value projects. With the loss of optimism in manufacturing sector, most companies have resorted to either deferment or significant reduction in their capital expenditures. The moderation effect by the manufacturing sector has taken a toll on the overall growth in addition to having a commensurate impact on the services sector during the year which contributes to 60% of the GDP and the resultant overall contraction over previous year. This has been reflected as a common factor of weakness and negative sentiment across automotive and auto component industry as also infrastructure due to lack of new project approvals by the lenders. The average capacity utilization by the manufacturing sector continued to be around 60-70% level specifically for Automotive, Engineering and Cutting Tool industry sectors resulting from overall lower demand.
Despite deceleration in the domestic market and paltry recovery in some of the developed nations, India's export has shown a gradual pick up partly contributed by rupee depreciation and improving demand in USA and European markets. While industry segments such as Automobile, Auto Components, Steel, Cutting Tools, Machine Tools & ceramics are the worst affected due to heightened industrial slowdown, segments like Refractory, Engineering and Glass have demonstrated marginally better results compared to the previous year. While the continued slowdown and weak global scenario has had its impact on the Indian economy, in the domestic arena, it has spread to all the sectors resulting in a modest GDP (Gross Domestic Product) growth.
The Industrial Production numbers have continued to be below normal on account of poor performance of core sectors having recorded a meagre 1 % growth which is around the same level of last year. The fall in output in manufacturing numbers has been mainly driven by lower inflow of orders, sharp fall in investments by capital goods sector, engineering, consumer goods and allied industry segments. However, in last few months, there has been some positive improvement in business sentiment, improved confidence and expectation of a recovery in growth and decline in inflation expectation, mainly on account of intervention by RBI to check capital outflow and upcoming general elections.
RESULTS OF OPERATIONS
(As on 31.03.2014)
Despite the continued slowdown and subdued market situation, the Company has put in its best efforts to achieve a top line of Rs.9449 Lacs during the year which is 6% higher compared to the previous year. While few industry segments like Refractory, Engineering and Glass have positively contributed in the domestic market, business from other segments such as Automobile, Auto component, Cutting Tools, Steel and Ceramics had adverse impact on the company's sales resulting in 1% lower than last year. On the other hand, the Export business despite continued volatility and slow recovery, has achieved a growth of 36% as compared to the previous year.
The Company continues to pursue business by focusing on three clearly defined verticals such as Super abrasives, Non-Super abrasives and International Business. The company having taken cognizance of the current slowdown as one that is temporary and believing firmly in long-term growth of the company, it continues to make suitable investments and deploy the required resources in identified areas to ensure that the long term growth of the Company is sustained.
Super abrasive Business consisting of Diamond / CBN Grinding Wheels & Tools, Precision Dressing Rolls, Hones, Segmented Products & Stationary Dressers, achieved a growth of 7% over the previous year surpassing the industry average growth. This has been possible primarily due to constant efforts by the Company on new developments in product and applications. During the year, the Company successfully introduced some of new products including Resin Bond Wheels for Rotary Tools, Vitrified CBN Wheels for Auto and Auto Component, Precision Electroplated products for Engineering, Gear and Ceramics, Brazed Diamond Products for Textile and Precision Dressing Rolls for Bearing and certain auto component applications.
During the year, The Company has augmented the Research and Development Centre and pursued indigenous development of some of the Bonds/Matrix in an effort to gain self-sufficiency in this area following the discontinuance of technical collaboration with its parent company Wendt GmbH. As you may be aware, the Company has gained competency in developing new applications / products for various industries over the years and the R & D Centre now complements these efforts well in all future endeavors for the Company. The recognition of the R & D Centre by the Department of Science and Industrial Research (DSIR), also provides an opportunity for the company to engage in jointly carrying out research & development work with other leading research organizations and laboratories on new technology frontiers.
The Non-Superabrasive Business comprising of machines and precision components achieved a moderate growth of 4% over the previous year. Despite an extremely difficult year characterized by deferment/freeze on capex, few project orders from the customers, the performance has been a decent one. During the year, the Company has developed many new models/variants of machines and successfully executed orders on CNC
Rotary Surface Grinding Machines. The Company also successfully launched TC Ring Grinding Machine for mini steel plants which has received encouraging responses from some of the potential users. The Company during the year has also started development of few new models of Honing Machines with vertical spindle, one of them is scheduled for launch in few months from now. These new models are expected to address to a wider range of industry applications thereby de-risking from dependence purely on automotive segment while also increasing the customer base and help in enhancing the product basket for the Company.
On the precision components area, during the year, the Company has fully completed the development of two new applications and started the commercial production in small quantities. By leveraging its knowledge and competencies in Machines and related Superabrasive Tools, the Company has also started commercial production of precision ground and honed components for one of the customers. At the same time, the Company is in the process of exploring few other opportunities in this area which would not only strengthen the precision component business but also become a new engine for future growth.
FUTURE PROSPECTS (As
on 31.03.2014)
The Company has aligned the Business processes with the Strategies and Objectives and constantly strives to achieve superior performances year on year by focusing on products and process Innovation on a sustainable basis. To do this, deployment of appropriate technologies and processes are paramount in areas such as indigenous Bond development, process automation and effective utilization of machines and equipment. The Company makes special effort to capitalize on the emerging opportunities in growing industrial segments through New Products for New Markets. The Company continuously explores opportunities for its existing range of products for the New Industry segments. Accordingly, the company continues to strengthen its presence in
Construction, Infrastructure, Aerospace, Ceramics, Defense and Railways to ensure future growth. While doing so, its key account management and increase of share of business with large customers for existing products would be pursued as a part of Market Penetration. These pursuits would be well supported by active participation in major national and international trade shows, exhibitions, providing customer education and value added services. Riding on the good export performance for the year, presence in export market and enhancing the global foot print would be focused by the company.
The acquisition of Winterthur Technology Group (WTG) by the US multinational 3M Corporation and resultant indirect acquisition of 40% equity shareholding in the Company continues to be a matter of contention while not being an issue. The matter still continues to be under the purview of The Honorable Company Law Board (CLB), Chennai and the Company expects the ownership matter to be resolved soon.
SUBSIDIARY COMPANIES
(As on 31.03.2014)
Wendt Grinding
Technologies Limited, Thailand
The Company's 100% owned subsidiary in Thailand has yet again achieved a laudable performance amid economic downturn, heavy floods and socio-economic issues and all time low industrial activities. During the year, the Company's subsidiary achieved a top line sales of Thai Baht 723.54 Lacs (Rs.1398 Lacs), a 15% growth over last year. The Profit Before Tax was Thai Baht 142.15 Lacs (Rs.261 Lacs) and Profit After Tax was Thai Baht 113.32 Lacs (Rs.206 Lacs), lower by 13% over last year. The increase in topline has been possible as a result of addition of products to the existing basket as well as new markets and customers during the year.
While many of the customers utilized their capacities around 65% levels for most part of the year, the subsidiary kept its vigil and focus on exploring new business opportunities with industries like Glass, Automobile, Steel, Auto parts, Ceramics, Cement and Engineering which well compensated for the drop. Last year, the subsidiary added Ceramic products mainly for Cement industry to its portfolio as a part of product offering to address the gap from one of the group companies and has seen initial successes and encouraging responses from the customers.
The subsidiary company continued its active participation in major Industrial and Trade Exhibitions with a clear focus on brand building, networking and seizing new business opportunities. It also organized many technical seminars at customer places, organized plant tours for its key customers to showcase its capability which are expected to benefit the subsidiary in the near future.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT (As on 31.03.2014)
GENERAL PERFORMANCE
REVIEW
In the last three consecutive years the Indian economy has been severely impacted by a series of domestic and global disarrays throwing the business environment out of gear and deceleration and de-growth. As a consequence, the Indian economy could achieve a modest growth rate of around 4.5%, the lowest growth in the last several years. Although, some of the developed countries have started seeing a slow recovery, in the domestic front the optimism and sentiments largely remained weak as a result of continued rise in commodity prices, inflation, raw material prices, power disruptions, sub optimal industrial performance, repeated rise in interest rates, added to this the political instability and policy delays, all of them in conjunction have taken a toll on the lower growth rate. The downward spiral was most visible and harsh in segments like Automobile, Auto Component, Steel, Heavy Engineering, Ceramics, Cutting Tools and some of the other allied industries.
As earlier explained, the Company achieved a domestic business performance level of 99% compared to previous year and on the contrary, the export has achieved a creditable growth of 36% compared to the previous year with a moderate 6% growth on overall basis. In the domestic business, while the sales of Super Abrasives Products to some of industry segments like Automotive, Cutting Tools, Engineering was between 2% to 6% as compared to the previous year, the decline was lower and more pronounced with over 15-20% in segments like Steel & Ceramics. Amid these unusually challenging circumstances, the Company continued its best efforts and new initiatives for new developments of products and applications in addition to working closely with customers to explore some of the new opportunities for its products which could serve as import substitutions.
The performance level of Non-Super Abrasive business was 4% higher than last year on account of orders for existing machines and some of the new machines. However, the demand for Precision Components and Accessories continued to be lower than the previous year reflecting the weak performance in the Automotive sector. As you may be aware, new capacity additions, expansion projects and fresh investments have been either dropped or suspended by customers in view of the continued slowdown, resulting in fewer orders for machines from industry segments like Engineering, Refractory, Steel and Automobile. With all the above in place, the Company has been consistently maintaining its leadership position in the domestic market.
ECONOMIC OUTLOOK (As
on 31.03.2014)
While the world economy continues its slow recovery from global financial crisis, the main impetus however, lies with the advanced countries. In the backdrop of this, though the outlook for Indian economy has improved marginally in past few months with some positive sentiments and improved business confidence, the expectation of a high growth rate still remains a question mark. It is estimated that the Indian GDP would achieve a growth of around 6% in the coming year on account of unclogging of domestic policy deadlocks and improved global demand aiding exports to lift growth. With elections around the corner in India, there are high hopes that the change in the political leadership will lead to better growth. This positivity is evident in the financial markets which are at a high amidst the expectation of a good recovery and improved investment prospects. When the new and stable Government takes office in a few months, its focus is expected on development of agriculture, fast tracking of stalling infrastructure projects, manufacturing and capital market to encourage the business confidence and reverse the declining trend. This clearly indicates that more focus is towards driving higher domestic consumption and investments.
Some of the major Industry segments that are expected to benefit from the above measures are Automotive, Construction, Infrastructure, Mining, General Engineering, Steel, Power, Food, Services and Consumer durables during 2014-15. New investments, capacity expansions and creations including implementation of infrastructure, construction, Steel, Power, Mining, Engineering, Machine Tools and allied industries are expected to take advantage of the opportunities in the coming year.
BUSINESS OUTLOOK (As
on 31.03.2014)
Though many agencies forecast a moderate growth for the Indian economy in the FY 2014-15, yet much of it depends on how quickly the new government settles and its stability to address continued rise in raw material prices, fuel & power cost, food inflation, repeated hikes in interest rates as well as slow recovery in some developed countries. Amidst these uncertainties and challenging times, the Company's primary focus would be to retain its leadership position in the domestic market by continuing to 20 21 offering its wide range of products, increased market reach & penetration as well as addition of new products to its basket. Besides this, the company would continue its endeavor of strengthening its presence both in domestic and export regions. In the Super Abrasive Business, the Company will continue to drive the three chosen growth drivers, the Innovation, New Product Development and Indigenization Efforts. While this would give stability to the company, it will also focus on capitalizing on new opportunities in industry segments with high growth potential in conjunction to ensure future growth.
The Non-Super Abrasives Business has been gaining strength year on year and in the consolidation phase with new machine launches every year. Increased population of machines supplied by the company has been a point of good reference base in the industry and translates into gaining good traction in the machine tool business. As you may be aware, the Company has completed the new state-of-the-art facility for machine tools last year. It has planned few new machine launches and developments in the coming year especially for steel, refractory, engineering, auto components and automobile industries. In order to strengthen the design capabilities and automation competencies, the Company in the meantime, has forged a strategic partnership with one of local leading companies well-known for their capability in design, automation, prototyping and controls. The precision component business also is being strengthened with addition of new components and new accounts for long term sustainability. Commercial supply of course in limited volume has been started for two new types of components and ramped up volumes are expected in the coming year. Simultaneously, the Company is actively considering adding few more precision components to its offering in near future and accordingly will make suitable investments in creating the physical infrastructure, capacity, machineries, equipment, and human resources in this area.
The Company will continue its focus on growing the International Business, in the coming year. While it will continue to pursue business through the established Wendt/3M network, extending the market reach through use of CUMI's overseas marketing channels, CUMI PAPS and strategic alliances in various countries will be the key for success and export growth.
Secondly, the Company has identified certain new countries with high potential for exports and business in these countries will be independently pursued by the company depending on factors like ease of doing business, effectiveness and future growth prospects.
Following the expiry and non-renewal of the technical collaboration agreement with Wendt GmbH two years back, using Wendt as a brand by the Company in the International Markets has caused some resentment and confusion in certain geographies. In order to address this, the Company has decided to promote its products by using CUMI brand and / or any other alternate brand in those markets and will continue to do so.
The 100% owned subsidiary in Thailand, Wendt Grinding Technologies Ltd, continues to achieve superior results year on year despite the region being repeatedly affected by global slowdown, falling demand, floods and shifting of base by many Japanese companies as well as labor and political disturbances. It shows enough confidence and resolve for a better performance in the coming year too. All this has been possible due to continuous pursuing of more opportunities, better service levels, new industry segments, new markets and industries and increased product range.
The second 100% owned subsidiary, Wendt Middle East FZE, Sharjah has turned around after struggle in initial few years and has become profitable. Here again, it operates in an environment that is affected by prolonged slowdown, market volatility, socio-economic issues and declined investments in key areas in the region. However, change in strategy and focus from earlier services to trading has started delivering positive results. This subsidiary will continue to function as the Product Availability Point (PAP) for the entire GCC region with focus on General Engineering, Aerospace, Steel, Ceramics, Auto component, Oil and Gas and associated industry segments. As such, the subsidiary is expected to deliver a better performance in the coming year.
COMPANY OVERVIEW (As
on 31.03.2014)
Wendt (India) Limited was incorporated on August 21st 1983 under the provisions of the Companies Act,1956, and is a joint venture between Wendt GmbH Germany and Carborundum Universal Limited, India. Wendt (India) Limited is a leading manufacturer of Super Abrasives, High precision Grinding, Honing and Special Purpose Machines and High Precision components. The Company`s registered office is in Bangalore and factory is situated in Hosur, Tamilnadu.
FINANCIAL REVIEW (As
on 31.03.2014)
Earnings
Revenues
During the year, the Company achieved total sales of Rs.9449 Lacs, higher by 6% as compared to 2012-13. While the domestic sales is similar to last years' level, the export sales recorded a growth of 36% compared to the previous year. As briefed earlier, this better performance in export is due to higher sales to Indonesia, Malaysia, US, UK, Germany, Singapore etc. during the year.
SUBSIDIARY COMPANIES
(As on 31.03.2014)
The Company does not have any Indian subsidiaries. However, the Company has two overseas wholly owned subsidiary companies namely Wendt Grinding Technologies Limited, Thailand and Wendt Middle East FZE, Sharjah. Both the subsidiary companies are managed with their Board having the rights and obligations to manage such companies. The Board of Directors of the subsidiary companies meet quarterly to review the quarterly performance and subsequently the same are being placed before the Board of Directors of the Company.
FIXED ASSETS
TANGIBLE ASSETS
- Land
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Office Equipment
INTANGIBLE ASSETS
- Generated
- Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.97.97 |
|
Euro |
1 |
Rs.71.81 |
INFORMATION DETAILS
|
Information
Gathered by : |
SPR |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SUJ |
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 |
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 |
|
79 |
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.