MIRA INFORM REPORT

 

 

Report No. :

326347

Report Date :

11.06.2015

 

IDENTIFICATION DETAILS

 

Name :

AVTEC LIMITED

 

 

Registered Office :

Pithampur Industrial Area, Sector–III, PO Sagore, District Dhar - 454774, Madhya Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.02.2005

 

 

Com. Reg. No.:

10-017319

 

 

Capital Investment / Paid-up Capital :

Rs. 250.000 Million

 

 

CIN No.:

[Company Identification No.]

u34103mp2005plc017319

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLA02935C

 

 

PAN No.:

[Permanent Account No.]

AAFCA1313C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Selling of Powertrains and parts thereof.

 

 

No. of Employees :

100 (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 7800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is part of the CK Birla Group and it is the largest independent manufacturers of powertrain and precision-engineered products in India.

 

Subject is an established company and it is having a good track record.

 

As per registrar of companies the date of balance sheet (i.e. financial filed) is show as 31.03.2014 but the documents related to the financials are not been available from any sources.

 

During FY 13, company have reported declined in its operating income due to which profitability of the company has decline. Rating constrained on risk associated with the volatility in raw material prices and exposure toward foreign subsidiary.

 

However the rating continue to drive strength from experience of the promoter group, company moderate capital structure and improving auto industry outlook.

 

Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments.

 

In view of decent capital structure, backed by strong support from CK Birla Group, the company can be considered for normal business dealings with its 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

CARE

Rating

Long Term Rating :A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

October, 2014

 

 

Rating Agency Name

CARE

Rating

Short Term Rating : A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

October, 2014

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

 

 

INFORMATION PARTED BY (GENRAL DETAILS)

 

Name :

Mr. Bharat

Designation :

Key Executive

Contact No.:

91-7292-411502

Date :

08.06.2015

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Pithampur Industrial Area, Sector–III, PO Sagore, District Dhar - 454774, Madhya Pradesh, India

Tel. No.:

91-7292-411502-04

Fax No.:

91-7292-256134/ 400268

E-Mail :

marketing.pup@avtec.in

tapsi.mahajan@avtec.in

Website :

http://www.avtec.in

 

 

Corporate Office :

Birla Tower, 7th Floor, 25, Barakhamba Road, New Delhi – 110001, India

Tel. No.:

91-11-42092100

Fax No.:

91-11-42092199

E-Mail :

corporate@avtec.in

 

 

Regional Office :

Birla Building, 9/1 R N Mukherjee Road, 13th Floor, Kolkata - 700001, West Bengal, India

Tel. No.:

91-33-30573700/ Extn. 2364

 

 

Factory 2 :

Poonapalli Village, Mathagondapalli Post, Hosur – 635114, Tamilnadu, India

Tel. No.:

91-4344-405200

Fax No.:

91-4344-405333

 

 

Factory 3 :

A25, A28, Phase 1, Kadaperi Village MEPZ-SEZ, Tambaram. Chennai – 600045 Tamilnadu, India

Tel. No.:

91-44-42267101/ 42267103

Fax No.:

91-44-42267109

 

 

Factory 4 :

Kharagpur Industrial Growth Centre, Plot No. – 1 and 2, Sector-B , Nimpura, PO – Rakhajungle, West Midnapur – 721301, West Bengal, India

Tel. No.:

91-3222-234335

 

 

Overseas Operation :

ASSAG Switzerland

Antriebstechnik – Hauptstrasse 50 CH – 3186 Düdingen

Tel. No.:

41 26 492 99 11

Fax No.:

41 26 492 99 10

E-Mail :

info@assag.ch

 

 

DIRECTORS

 

AS ON 23.06.2014

 

Name :

Mr. Chandrakant Birla

Designation :

Nominee director

Address :

Birla  House, 24, Aurangzaeb Road, New Delhi – 110011, India

Date of Birth/Age :

09.01.1955

Qualification :

Graduation

Date of Appointment :

28.06.2005

Voter ID No.:

DL/01/002/228412

DIN No.:

00118473

 

 

Name :

Haigreve Khaitan

Designation :

Director

Address :

1104, Sterling Sea Face, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

13.07.1970

Qualification :

LL.B

Date of Appointment :

09.05.2014

DIN No.:

00005290

 

 

Name :

Amal Ganguli

Designation :

Director

Address :

J-6/7, DLF Phase II, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

17.10.1939

Qualification :

Chartered Accountant

Date of Appointment :

27.07.2005

Voter ID No.:

TER0132944

DIN No.:

00013808

 

 

Name :

Mr. Naresh Chandra

Designation :

Nominee director

Address :

C4-4053, Vasant Kunj, New Delhi – 110070, India

Date of Birth/Age :

01.08.1934

Qualification :

M. Sc; I.A.S (Retired)

Date of Appointment :

27.07.2005

Voter ID No.:

CPJ0848416

Date of Cessation

21.02.2015

DIN No.:

00015833

 

 

Name :

Mr. Prabhakar Sitaraman Kadapa

Designation :

Director

Address :

C-83, Sarita Vihar, Mathura Road, New Delhi – 110078, India

Date of Birth/Age :

03.07.1958

Qualification :

B. Tech (Mech. Engg.); Post Graduate in Tool Engg.

Experience :

31 Years

Date of Appointment :

16.07.2009

PAN No.:

ADAPK8517H

Voter ID No.:

NWD1226604

DIN No.:

00059374

 

 

Name :

Mr. Ananthanarayanan Sankara Narayanan

Designation :

Nominee director

Address :

12, First Avenue, Harrington Road, Chennai – 600031, Tamilnadu, India 

Date of Birth/Age :

29.07.1942

Qualification :

B.E (Hons.) Mech; Diploma in Industrial Engineering, Germany; International Senior Management Program Harvard Graduate

Date of Appointment :

28.06.2005

Voter ID No.:

BDZ5274220

DIN No.:

00385632

 

 

Name :

Mr. Niten Malhan

Designation :

Director

Address :

Flat No. 2705, 27th Floor, North Tower, The Imperial Building, MP Mill Compound, Tardeo, Mumbai – 400034, Maharashtra, India 

Date of Birth/Age :

02.08.1971

Date of Appointment :

12.06.2013

DIN No.:

00614624

 

 

Name :

Mr. Viraj Sawhney

Designation :

Director

Address :

Flat No. 11A, Jolly Makeri Premises Co-operative Society Limited, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

16.01.1977

Date of Appointment :

12.06.2013

DIN No.:

02227110

 

Name :

Manjira Khurana

Designation :

Additional director

Address :

104, Gautam Nagar, New Delhi - 110049, India

Date of Appointment :

27.03.2015

DIN No.:

00260969

 

 

Name :

Srinivasa Varadhan Echambadi Tirumalai

Designation :

Additional director

Address :

B249, 1st Floor, Greater Kailash, Part I, New Delhi - 110048, India

Date of Appointment :

08.05.2015

DIN No.:

00263942

 

 

KEY EXECUTIVES

 

Name :

Mrs. Ruchika Gupta

Designation :

Secretary

Address :

B-3/93, Paschim Vihar, New Delhi – 110063, India

Date of Birth/Age :

06.08.1974

Date of Appointment :

15.02.2012

PAN No.:

AHBPG5420E

 

Name :

Ravi Kant Malhotra

Designation :

CFO

Address :

E-134, Kalka Ji, New Delhi -110019, India

Date of Appointment :

21.03.2011

PAN No.:

AAEPM9200A

 

 

Name :

Mr. Bharat

Designation :

Key Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 23.06.2014

 

Names of Shareholders

 

No. of Shares

 

Hindustan Motors Limited, India

 

10000

Highdell Investment Limited, India

 

7500000

National Bearing Company (Jaipur) Limited, India

 

1094000

Central India Industries Limited, India

 

2649000

Universal Trading Company Limited, India

 

380000

Gwalior Finance Corporation Limited, India

 

1198500

Rajasthan Industries Limited, India

 

815000

HM Export Limited, India

 

4800000

Nirmala Birla

 

102500

Chandrakant Birla

 

192000

Avani Birla

 

33500

Amita Birla

 

27000

Avanti Birla

 

96000

National Engineering Industries Limited, India

 

3067000

Amer Investments (Delhi) Limited, India

 

1712000

Hitaishi Investments Limited, India

 

255500

Bengal Rubber Company Limited, India

 

727000

India Silica Magnesiteworks Limited, India

 

204500

Soorya Vanijya and Investment Limited, India

 

136500

 

 

 

Total

 

 

25000000

 

 

AS ON 23.06.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

30.00

Bodies corporate

68.20

Directors or relatives of directors

1.80

 

 

Total

 

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of Powertrains and parts thereof.

 

 

Products/ Services :

ITC Code No.

 

Product Descriptions

84082020

Engines / Power Unit

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Cash and Cheque

 

 

Purchasing :

Cash and Cheque

 

PRODUCTION STATUS : NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

·         Ford

·         GM

·         Godrej

·         OEPL

·         Sauer Danfoss

·         Amac

·         Ashok Leyland

·         Axletech International

·         Caterpillar

·         Daimler

·         Telcon

·         Tata

·         Magna

·         Mahindra

·         Eicher

·         L&T

·         TIL

·         Tata Motors

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

·         Barclays Bank PLC

Eros Corporate Towers, Nehru Place, New Delhi-19, New Delhi - 110019, India

 

·         Standard Chartered Bank

(Acting as an Security Agent) C D U, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

 

·         Citi Bank N.A.

Citibank, 3, Jeevan Bharti Building, Parliament Street, New Delhi - 110001, India

 

·         Kotak Mahindra Bank Limited

7TH Floor, Ambadeep Building, Kasturba Gandhi Marg, New Delhi - 110001, India

 

·         DBS Bank Limited

Upper Ground Floor, Birla Tower, 25, Barakhamba Road, New Delhi - 110001, India

 

·         State Bank of India

Industrial Finance Branch, World Trade Center, Cuffe Parade, Mumbai - 400005, Maharashtra, India

 

·         HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Million)

31.03.2012

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Rupee term loans from banks

20.834

112.500

Foreign currency term loans from banks

363.504

378.094

Term loans from others

Repayment Term of Foreign currency Loan from GE Capital Services is 16 quarterly installments of Rs. 12.500 Million and Rs. 18.750 Million respectively for each tranche.

331.250

456.250

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

The loans are repayable on demand. Interest on cash credit facilities/working capital loans varied from 10% to 12.50% during the year.

513.269

458.573

Loans repayable on demand from banks

The loans are repayable on demand. Interest on packing credit in foreign currency varied from 2% to 5.27% during the year.

124.913

254.938

 

 

 

Total

 

1353.770

1660.355

 

Notes:

 

LONG-TERM BORROWINGS

 

(i) The loan together with interest and other charges thereon are secured by first pari passu charge by way of hypothecation of all Company's Stock in trade and Book Debts, both present and future. This facility is further secured by second pari passu charge by way of hypothecation of all Company's moveable properties, both present and future situated at Power Unit Plant, Pithampur (PUP), Power Products Division, Hosur (PPD) and Madras Processing Zone, Chennai (MEPZ) and by way equitable mortgage on all immovable properties situated at PUP (except properties of the value of Rs. 1.719 Million) and PPD.

 

(ii) The loan together with interest and other charges thereon are secured by first pari passu charge by way of hypothecation of moveable Plant and Machinery of the Company situated at the Power Unit Plant at Pithampur, Indore and Power Products Division at Hosur, Tamil Nadu. This facility is further secured by first pari passu charge by way of equitable mortgage of all immovable properties situated at PUP (except properties of the value of Rs. 1.719 Million) and PPD.

 

(iii) The loan together with interest and other charges thereon are secured by first pari passu charge by way of hypothecation of all moveable fixed assets of the Company, both present and future, situated at Kharagpur, West Bengal. This facility is further secured by first pari passu charge by way of equitable mortgage of all immovable properties of the Company situated at the said plant.

 

(iv) The loans together with interest and other charges thereon are secured by first pari passu charge by way of hypothecation of moveable Plant and Machinery of the Company situated at the PUP, PPD and MEPZ. This facility is further secured by first pari passu charge by way of equitable mortgage of all immovable properties situated at PUP (except properties of the value of Rs. 1.719 Million) and PPD. This facility is further secured by second pari passu charge by way of hypothecation of Company's Current Assets, both present and future.

 

 

SHORT TERM BORROWINGS

 

The secured borrowings from banks together with interest and other charges are secured by first pari passu charge by way of hypothecation of all Company's Stock in trade and Book Debts, both present and future. These facilities are further secured by second pari passu charge by way of hypothecation of all Company's moveable properties, both present and future situated at PUP, PPD and MEPZ and by second pari passu charge by way of equitable mortgage on all immovable properties situated at PUP, Pithampur (except properties of the value of Rs. 1.719 Million) and PPD. The loans are repayable on demand. Interest on cash credit facilities/working capital loans varied from 10% to 12.50% during the year. Interest on packing credit in foreign currency varied from 2% to 5.27% during the year.

 

 

Auditors :

 

Name :

S.R. Batliboi and Company LLP

Chartered Accountants

Address :

6th Floor, Hindustan Times Building, 18-20, K. G. Marg, New Delhi – 110001, India

Income-tax PAN of auditor or auditor's firm :

AALFS0560L

 

 

Subsidiary company

[AS ON 31.03.2013] :
  • AVTEC (Europe) Powertrain AG w.e.f. February 03, 2012
  • ASS AG, Switzerland w.e.f. May 21, 2012
  • ASS Evolvere, Switzerland w.e.f. May 21, 2012
  • ASS Norma, Switzerland w.e.f. May 21, 2012
  • ASS CGP, Switzerland w.e.f. May 21, 2012

 

 

Associate [AS ON 31.03.2013]:

Hindustan Motors Limited [L34103WB1942PLC018967] (Till March 28, 2013)

 

 

 

Other parties which significantly influence /are influenced by the Company (either individually or with others) [AS ON 31.03.2013] :
  • ACTIS Powertrain Investments Limited
  • HM Exports Limited [U31901WB1961PLC025330] (Till March 28, 2013)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,000,000

Equity Shares

Rs. 10/- each

Rs. 250.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,000,000

Equity Shares

Rs. 10/- each

Rs. 250.000 Million

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

250.000

250.000

250.000

(b) Reserves & Surplus

2496.084

2405.251

2162.220

(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)

2746.084

2655.251

2412.220

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

715.588

946.844

614.246

(b) Deferred tax liabilities (Net)

121.838

118.932

109.236

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

17.313

12.120

27.271

Total Non-current Liabilities (3)

854.739

1077.896

750.753

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

720.821

713.511

624.102

(b) Trade payables

1188.653

1115.141

879.701

(c) Other current liabilities

509.263

457.708

623.276

(d) Short-term provisions

91.046

88.734

56.471

Total Current Liabilities (4)

2509.783

2375.094

2183.550

 

 

 

 

TOTAL

6110.606

6108.241

5346.523

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2615.963

2824.391

2459.870

(ii) Intangible Assets

14.399

47.976

86.353

(iii) Capital work-in-progress

412.548

105.077

273.871

(iv) Intangible assets under development

164.849

158.433

110.236

(b) Non-current Investments

225.762

5.382

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

43.178

41.405

28.981

(e) Other Non-current assets

0.218

1.301

0.110

Total Non-Current Assets

3476.917

3183.965

2959.421

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

10.006

0.000

(b) Inventories

639.581

740.234

702.585

(c) Trade receivables

1734.253

1733.339

1329.319

(d) Cash and cash equivalents

66.253

263.908

152.216

(e) Short-term loans and advances

184.796

169.354

188.332

(f) Other current assets

8.806

7.435

14.650

Total Current Assets

2633.689

2924.276

2387.102

 

 

 

 

TOTAL

6110.606

6108.241

5346.523

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

6295.370

6502.219

5384.357

 

 

Other Income

9.839

27.902

47.587

 

 

TOTAL                                     (A)

6305.209

6530.121

5431.944

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

3700.716

3794.832

2948.514

 

 

Purchases of stock-in-trade

148.860

386.902

272.405

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

72.281

(77.506)

36.035

 

 

Employee benefit expense

734.616

634.625

570.926

 

 

Other expenses

841.694

758.712

657.705

 

 

TOTAL                                     (B)

5498.167

5497.565

4485.585

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

807.042

1032.556

946.359

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

206.306

193.593

153.370

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

600.736

838.963

792.989

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

371.209

404.294

433.838

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

229.527

434.669

359.151

 

 

 

 

 

Less

TAX                                                                  (H)

80.196

133.527

85.393

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

149.331

301.142

273.758

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

507.549

592.508

540.704

 

 

Professional and Consultation Fees 

147.040

0.000

0.000

 

 

Other Earnings

4.099

23.588

0.000

 

TOTAL EARNINGS

658.688

616.096

540.704

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

318.706

360.126

322.334

 

 

Stores & Spares

4.999

7.257

10.536

 

 

Capital Goods

161.228

281.331

32.500

 

TOTAL IMPORTS

484.933

648.714

365.370

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.97

12.05

10.95

 

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current Maturities of Long term debt

378.256

363.235

424.817

Cash generated from operations

NA

NA

NA

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin
(PAT / Sales)

(%)

2.37

4.63

5.08

 

 

 

 

 

Operating Profit Margin
(PBIDT/Sales)

(%)

12.82

15.88

17.58

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.32

7.44

7.24

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.16

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.66

0.76

0.69

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.05

1.23

1.09

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

250.000

250.000

250.000

Reserves & Surplus

2162.220

2405.251

2496.084

Share Application money pending allotment

0.000

0.000

0.000

Net worth

2412.220

2655.251

2746.084

 

 

 

 

long-term borrowings

614.246

946.844

715.588

Short term borrowings

624.102

713.511

720.821

Current Maturities of Long Term Debt

424.817

363.235

378.256

Total borrowings

1663.165

2023.590

1814.665

Debt/Equity ratio

0.689

0.762

0.661

 

 

 

 

YEAR-ON-YEAR GROWTH

 

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

5384.357

6502.219

6295.370

 

 

20.761

(3.181)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

5384.357

6502.219

6295.370

Profit

273.758

301.142

149.331

 

5.08%

4.63%

2.37%

 

 

 

 

 

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

Yes

12

Voter Id Card No. of Proprietor / Partners

Yes

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

Yes

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

No

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

Yes

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

10572122

13/05/2015

352,294,250.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

C55024970

2

10549238

13/02/2015

200,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

C43693522

3

10550552

06/02/2015

400,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

C44316149

4

10522199

19/09/2014

200,000,000.00

KOTAK MAHINDRA BANK LIMITED

7TH FLOOR, AMBADEEP BUILDING,, 14 K G MARG,, NEW 
DELHI, DELHI - 110001, INDIA

C22733786

5

10508504

16/02/2015 *

700,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

C46010906

6

10508501

11/07/2014

300,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

C10913051

7

10482365

21/02/2014

200,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W 
, MUMBAI, MAHARASHTRA - 400013, INDIA

B98406283

8

10423550

06/02/2014 *

385,000,000.00

STANDARD CHARTERED BANK

(ACTING AS AN SECURITY AGENT) C D U, NARAIN MANZI 
L, 23 BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, 
INDIA

B97585392

9

10379176

19/09/2014 *

280,000,000.00

KOTAK MAHINDRA BANK LIMITED

7TH FLOOR, AMBADEEP BUILDING,, K .G .MARG,, NEW D 
ELHI, DELHI - 110001, INDIA

C22735534

10

10326761

25/10/2012 *

300,000,000.00

DBS BANK LTD.

UPPER GROUND FLOOR, BIRLA TOWER, 25, BARAKHAMBA R 
OAD, NEW DELHI, DELHI - 110001, INDIA

B62197736

 

* Date of charge modification

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Million)

31.03.2012

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

The loans are repayable on demand. Interest on working capital loans varied from 10% to 12.50% during the year.

82.639

0.000

 

 

 

Total

 

82.639

0.000

 

 

NATURE OF OPERATIONS

 

Subject was incorporated on February 8, 2005 and is engaged in the manufacturing and selling of Powertrains and parts thereof.

 

 

GROWTH INITIATIVES

 

Acquisition of ASSAG

 

The integration and closing activities to acquire ASSAG, Switzerland (through the Company's wholly owned subsidiary AVTEC (Europe) Powertrain Limited) were completed during the year 2012-13. ASSAG is a pioneer in the face gear technology with several patents, designs and copyrights to its credit and a solution provider in gear trains of high precision and high quality systems/subsystems.

 

Major Customer wins

 

The Company has won business from a major European automobile manufacturer to supply engines and transmissions.

 

The Company is also working closely with new / existing customers to obtain new orders.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

OVERVIEW OF THE ECONOMY

 

India's economic growth slowed down to approximately 5 per cent in the year 2012-13 and in year 2013-14 it is estimated to be 6.4 per cent. This expectation is based on better macro-economic management of budget and current account deficits, several policy measures and consequent revival of demand, together with a higher level of economic activity and business confidence.

 

On the global front, uncertainly remains due to the problems continuing to be faced by several Eurozone countries. The US continues to recover very slowly with economic growth no more than 2.2 per cent in 2012.

 

 

AUTOMOTIVE INDUSTRY OVERVIEW

 

A combination of slow economic growth, high interest rates and spiralling cost of fuel has resulted in sluggish demand for automotive vehicles. The highlights of the Indian Automotive Industry's performance in segments relevant to the Company are as follows:

 

·         Production 2012-13 (excluding 2 and 3 wheelers):

·         Total vehicles - 4.1 mn, a decrease of 0.2 per cent over last year

·         Passenger vehicles - 3.2 mn, an increase of 2.8 per cent over last year

·         Medium and Heavy commercial vehicles - 0.3 mn, a decrease of 27.6 per cent over last year

·         Light commercial vehicles - 0.6 mn, an increase of 1.6 per cent over last year

·         Domestic Sales 2012-13 (excluding 2 and 3 wheelers):

·         Total vehicles - 3.5 mn, an increase of 1.2 per cent over last year

·         Passenger vehicles - 2.7 mn, an increase of 2.2 per cent over last year

·         Medium and Heavy commercial vehicles - 0.3 mn, a decrease of 23.2 per cent over last year

·         Light commercial vehicles - 0.5 mn, an increase of 14.0 per cent over last year

·         Export Sales 2012-13 (excluding 2 and 3 wheelers):

·         Total vehicles - 0.6 mn, an increase of 5.6 per cent over last year

·         Going forward, 2013-14 projections for automotive segments relevant to the company are as follows:

·         Passenger vehicles - 5-7 per cent

·         Medium and Heavy commercial vehicles - 1-3 per cent

·         Light commercial vehicles - 10-12 per cent

 

 

BUSINESS OUTLOOK

 

In line with the projections for different automotive segments, the Company has a presence in the potentially niche areas of high growth utility vehicles and light commercial vehicles.

 

To cater to the growing demand for utility vehicles, Ford India plans to introduce its SUV 'Ecosport' this year in India.

 

The light commercial vehicle 'Dost', introduced by Nissan Ashok Leyland has been well received by customers in the southern and western regions. The manufacturer plans to introduce the vehicle in other regions of India.

 

Daimler India introduced a range of medium and heavy commercial vehicles, Rs. Bharat Benz', in India during the year. This vehicle class, having been accepted by customers, Daimler now plans to increase penetration through introduction of more variants.

 

The above programs provide measured volume growth to the Company in 2013-14.

 

The Company expects new business opportunities by way of higher sales to existing customers and also from new customers.

 

The Company acquired ASSAG, a Switzerland based design to prototype company through its subsidiary AVTEC (Europe) Powertrain Limited, and through successful integration achieved profitable growth in the year 2012-13. This is a creditable feat to achieve in first year of integration. The integration of ASSAG will help the Company to take advantage of synergies across the value chain.

 

As the global automotive manufacturers increase their presence in India, intense competition among original equipment manufacturers will lead to cost pressures on the suppliers. Cognizant of this fact and as a continuous endeavour, the Company practices lean manufacturing and constantly strives to reduce costs.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. In Million)

31.03.2012

(Rs. In Million)

Contingent liabilities (not provided for) in respect of :*

 

 

(a) Demands raised by Income tax department for the assessment years 2007-2008 to 2011-2012 being disputed by the Company**

36.482

7.400

(b) Show cause notices issued by the Central excise/custom authority, but

disputed by the Company (excluding excise duties and penalties with respect to certain transactions with customers, which are under litigation before CESTAT. The consequences of the litigation on the Company are protected by an indemnity from the said customers)**

18.781

15.074

(c) Sales tax**

5.769

0.631

(d) Corporate Guarantee given on behalf of a subsidiary towards loan taken from DBS Bank Singapore.

629.288

0.000

(e) Other claims against the Company not acknowledged as debts

9.030

4.836

Total

 

699.350

27.941

 

NOTE:

*(a) to (e) excludes liabilities pertaining to period prior to purchase of business from Hindustan Motors Limited (HML), since the same are borne by HML.

** Based on the discussions with its solicitor, the management believes that the Company has strong chance of success and hence no provision against these is considered necessary.

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and equipment

·         Furniture and fixtures

·         Vehicles

·         Office equipment

·         Other equipments

·         Brands and trade marks

·         Brands

·         Computer software

·         Know-how

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.48

UK Pound

1

Rs. 98.47

Euro

1

Rs.72.15

 

 

INFORMATION DETAILS

 

Information Gathered by :

MNJ

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SNT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--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.