MIRA INFORM REPORT

 

 

Report No. :

350038

Report Date :

27.11.2015

 

IDENTIFICATION DETAILS

 

Name :

ABC BEARINGS LIMITED

 

 

Registered Office :

402-B, Poonam Chambers, Dr. Annie Besant Road, Worli-Mumbai-400018, Maharashtra

Tel. No.:

91-22-24964500/ 1/ 3

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

30.05.1961

 

 

Com. Reg. No.:

11-012028

 

 

Capital Investment / Paid-up Capital :

Rs. 115.500 Million

 

 

CIN No.:

[Company Identification No.]

L29130MH1961PLC012028

 

 

IEC No.:

0389020761

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA216687B

 

 

PAN No.:

[Permanent Account No.]

AAACT5018Q

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Ball Thrust, Taper and Cylindrical Roller Bearings.

 

 

No. of Employees :

431 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (52)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject was established in the year 1961 and it manufacturers tapered and cylindrical roll bearings at its facility in Bharuch (Gujarat). ABC primarily caters to OEMs in the automotive industry and to the after-sales market for auto bearings. ABC manufactures TRBs, cylindrical roller bearings, and spherical roller bearings.

 

For the financial year ended 2015, company has reported 15.26% sales turnover growth as compared to previous sales turnover and it has maintained average profitability margins at 2.55% during the year under review.

 

Rating continue to reflect company’s long-standing association with domestic automotive original equipment manufacturers, its established position in the auto bearings market, and above average financial risk profit marked by adequate net worth and debt protection metrics.

 

Rating strengths is partially offset by high product concentration in company’s revenue profile and its vulnerability to cyclicality in the auto industry.

 

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

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

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

CRISIL

Rating

Long term rating = BBB+

Rating Explanation

Moderate degree of safety and moderate credit risk

Date

03.02.2015

 

Rating Agency Name

CRISIL

Rating

Short term rating = A2

Rating Explanation

Strong degree of safety and low credit risk

Date

03.02.2015

 

 

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 31-03-2015.

 

 

LOCATIONS

 

Registered Office :

402-B, Poonam Chambers, Dr. Annie Besant Road, Worli-Mumbai - 400 018, Maharashtra, India

Tel. No.:

91-22-24964500/ 24964501/ 3/ 56608851

Fax No.:

91-22-24950527

E-Mail :

regdoff@abcbearings.com

Website :

www.abcbearings.com

 

 

Factory 1:

Plot No.109-B, Narmada Nagar, GIDC Industrial Estate, Bharuch - 392015, Gujarat State, India

Tel. No.:

91-2642-248222/ 3/ 4/ 1/ 246353

Fax No.:

91-2642-248221/ 247591

E-Mail :

mktbrh@abcbearings.com

 

 

Factory 2:

Khasra No. 122 MI, Central Hope Town, Village: Selaqui, Tehsil: Vikas nagar, Dehradun – 248197, Uttarakhand, India 

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Mr. S. M. Patel

Designation :

Chairman

 

 

Name :

Mr. P. M. Patel

Designation :

Managing Director

Date of Birth :

05.11.1947

Qualification :

M.B.A. from U.S.A.

List of Directorship :

·         Eimco Elecon (India) Limited

·         Emtici Engineering Limited

·         Elecon EPC Projects Limited

·         Elecon Engineering Co. Limited

 

 

Name :

Mr. T. M. Patel

Designation :

Executive Director

Date of Birth :

07.12.1953

Qualification :

B.S. from U.S.A.

List of Directorship :

Dinesh Mills Limited

 

 

Name :

Mr. S. K. Diwanji

Designation :

Director

 

 

Name :

Mr. J. R. Patel

Designation :

Director

 

 

Name :

Mr. Nalin M. Shah

Designation :

Director

Date of Birth :

13.02.1947

Qualification :

C.A.

List of Directorship :

·         DCB Bank Limited

·         Artson Engineering Limited

·         Eimco Elecon (India) Limited

·         Cholamandalam Investment and Finace Co. Limited

·         Tata Capital Limited

·         Cholamandalam Distribution Services Limited

·         Cholamandalam securities Limited

 

 

Name :

Ms. J. P. Abraham

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S. K. Choudhary

Designation :

Chief Financial Officer

 

 

Name :

Mr. S. B. Desai

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2015

 

Category of Shareholders

No. of Shares

 

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

740811

6.41

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

3635520

31.48

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

4376331

37.89

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

100394

0.87

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

100394

0.87

Total Shareholding of Promoter and Promoter Group (A)

4476725

38.76

(B) Public Shareholding

 

 

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

 

 

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

45

0.00

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

282402

2.45

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

450

0.00

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

282897

2.45

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

 

 

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

396618

3.43

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

 

 

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

1933808

16.74

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

1574426

13.63

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

2885526

24.98

http://www.bseindia.com/include/images/clear.gifClearing Members

2366

0.02

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

39910

0.35

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

2843000

24.61

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

250

0.00

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

6790378

58.79

Total Public Shareholding (B)

7073275

61.24

Total (A)+(B)

11550000

100.00

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

 

 

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

0

0.00

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

0

0.00

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

0

0.00

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

11550000

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Ball Thrust, Taper and Cylindrical Roller Bearings.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

--

 

 

Imports :

--

 

 

Terms :

 

Selling :

--

 

 

Purchasing :

--

 

 

PRODUCTION STATUS: NOT AVAILABLE 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

--

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

Customers :

Reference:

--

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

No. of Employees :

431 (Approximately)

 

 

Bankers :

Bank Name:

 

Branch:

--

Person Name (with Designation):

--

Contact Number:

--

Name of Account Holder:

--

Account Number:

--

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

--

Average Balance Maintained (Optional):

--

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

--

Account Operation:

--

Remarks:

--

 

·         IDBI Bank Limited

·         State Bank of India

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Term Loans

 

 

From a Bank

268.508

261.752

From a Finance Company

112.5.00

106.910

 

 

 

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand

 

 

Working Capital loan from Banks

318.387

180.531

 

 

 

Total

 

699.395

549.193

 

LONG-TERM BORROWINGS:

 

·         Term Loans are Secured by first and exclusive hypothecation charge over plant and machinery purchased under the bank finance, pari passu first charge over other unencumbered existing plant and machinery of the Company and Registered Mortgage over land and building at Plot 109-A, Bharuch.

 

·         The loans are repayable as under;

Term Loan 1 is repayable in 20 equal quarterly installments commencing from January-2013 to October-2017. Term Loan 2 is repayable in 20 equal quarterly installments commencing from January-2015 to October-2019.

 

·         Secured by first and exclusive charge on Land and building and entire movable fixed assets including plant and machinery at Dehradun. The loan is repayable in 20 equal quarterly installments commencing from January-2015.

 

SHORT TERM BORROWINGS:

 

Working capital loan facilities are secured by first pari passu hypothecation charge on stock in trade and book debts and second pari passu charge on Plant & Machinery of the Company and further secured by Registered Mortgage over factory land and building at Plot 109-A, Bharuch.

 

Banking Relations :

--

 

 

Financial Institutions :

·         Tata Capital Financial Services Limited

One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India

 

 

Auditors :

 

Name :

Parikh and Shah

Chartered Accountants

 

 

Cost Auditors:

B. J. D Nanabhoy and Company

Cost Accountants

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Enterprises over which Key Management Personnel have significant influence::

·         Manoway Investments Private Limited

·         Mipco Investments Private Limited

·         Maple Investments Co. Private Limited

·         msons Leasing Co. Private Limited

·         Ziwani Properties Private Limited

·         Saturn Holdings and Properties Private Limited

·         Essex Properties Private Limited

 

 

Joint Venture Company :

NSK – ABC Bearings Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,20,00,000

Equity Shares

Rs. 10/- each

Rs. 120.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,15,50,000

Equity Shares

Rs. 10/- each

Rs. 115.500 Million

 

 

 

 

 

a)     The reconciliation of the number of shares outstanding at the beginning and at the end of the year:

 

Particulars

 

31.03.2015

Number of shares at the beginning of the year

11550000

Number of shares at the end of the year

11550000

 

 

 

The Company has only one class of share, namely Equity Shares having face value of Rs. 10/- each. The holder of equity shares is entitled to one vote per share. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

b)    Details of shareholders holding more than 5% shares are set out below:

 

Name of the Shareholder

31.03.2015

 

No. of Shares

% of Shares

Tricot investments Limited

2,843,000

24.61

Emsons Leasing Company Private Limited

982,985

8.51

Mipco Investments Private Limited

867,479

7.51

Manoway Investments Private Limited

728,063

6.30

Maple Investments Company Private Limited

654,233

5.66

 

 

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

115.500

115.500

115.500

(b) Reserves & Surplus

1127.125

1119.110

1099.814

(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)

1242.625

1234.610

1215.314

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

381.008

368.662

261.339

(b) Deferred tax liabilities (Net)

115.812

112.571

89.555

(c) Other long term liabilities

66.192

49.861

16.735

(d) long-term provisions

12.590

12.523

13.013

Total Non-current Liabilities (3)

575.602

543.617

380.642

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

356.569

219.714

250.134

(b) Trade payables

281.059

176.545

159.300

(c) Other current liabilities

232.765

211.368

300.382

(d) Short-term provisions

27.871

31.645

45.229

Total Current Liabilities (4)

898.264

639.272

755.045

 

 

 

 

TOTAL

2716.491

2417.499

2351.001

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1607.284

1313.337

1203.714

(ii) Intangible Assets

22.928

25.420

27.322

(iii) Capital work-in-progress

66.750

163.298

149.110

(iv) Intangible assets under development

0.000

0.000

0.000 

(b) Non-current Investments

125.000

125.000

125.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d) Long-term Loan and Advances

107.319

207.367

172.253

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1929.281

1834.422

1677.399

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

476.203

317.873

412.869

(c) Trade receivables

243.750

220.690

200.136

(d) Cash and cash equivalents

21.100

11.646

10.917

(e) Short-term loans and advances

44.651

31.488

49.047

(f) Other current assets

1.506

1.380

0.633

Total Current Assets

787.210

583.077

673.602

 

 

 

 

TOTAL

2716.491

2417.499

2351.001

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Revenue from Operations

1627.304

1409.810

1494.672

 

 

Other Income

6.029

7.017

2.411

 

 

TOTAL                                     (A)

1633.333

1416.827

1497.083

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

860.672

644.875

728.037

 

 

Purchases of Stock-in-Trade

4.620

3.187

2.332

 

 

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

(72.535)

69.529

(12.720)

 

 

Employees benefits expense

188.932

179.124

213.784

 

 

Exceptional Items

0.000

(37.420)

0.000

 

 

Other expenses

430.117

348.355

370.428

 

 

TOTAL                                     (B)

1411.806

1207.650

1301.861

 

 

 

 

 

 

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

221.527

209.177

 

195.222

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

56.228

40.182

31.492

 

 

 

 

 

 

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

165.299

168.995

 

163.730

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

117.209

98.900

85.632

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                (G)

48.090

70.095

78.098

 

 

 

 

 

Less

TAX                                                                  (H)

6.277

23.773

25.055

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

41.813

46.322

53.043

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

29.273

36.195

21.352

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

17.606

2.103

20.570

 

 

Stores & Spares

4.188

0.617

2.423

 

 

Capital Goods

261.373

74.639

224.153

 

TOTAL IMPORTS

283.167

77.359

247.146

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.62

4.01

4.59

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

133.775

100.252

166.546

 

 

 

 

Cash Generated from Operations

127.703

269.699

488.331

 

 

 

 

Net Cash Generated From Operations

113.218

253.162

474.358

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2014

30.09.2014

Type

1st Quarter

2nd Quarter

Net Sales

442.200

427.180

Total Expenditure

378.750

371.100

PBIDT (Excl OI)

63.450

56.080

Other Income

1.200

0.940

Operating Profit

64.650

57.020

Interest

16.630

16.180

Exceptional Items

0.000

0.000

PBDT

48.020

40.840

Depreciation

31.530

31.200

Profit Before Tax

16.490

9.640

Tax

5.450

3.410

Provisions and contingencies

0.000

0.000

Profit After Tax

11.040

6.230

Extraordinary Items

0.000

0.000

Prior Period Expenses

0.000

0.000

Other Adjustments

0.000

0.000

Net Profit

11.040

6.230

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

2.57

3.29

3.55

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

13.61

12.18

13.06

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.99

1.70

4.10

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.03

0.06

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.70

0.56

0.56

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.88

0.91

0.89

 

 

STOCK PRICES

 

Face Value

Rs. 10.00/-

 

 

Market Value

Rs. 123.00/-

 

 

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

115.500

115.500

115.500

Reserves & Surplus

1099.814

1119.110

1127.125

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1215.314

1234.610

1242.625

 

 

 

 

Long-term borrowings

261.339

368.662

381.008

Short term borrowings

250.134

219.714

356.569

CURRENT MATURITIES OF LONG-TERM DEBTS

166.546

100.252

133.775

Total borrowings

678.019

688.628

871.352

Debt/Equity ratio

0.558

0.558

0.701

 

 

 

 

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

1494.672

1409.810

1627.304

 

 

(5.678)

15.427

 

 

 

 

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

1494.672

1409.810

1627.304

Profit

53.043

46.322

41.813

 

3.55%

3.29%

2.57%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10458217

27/08/2014 *

150,000,000.00

TATA CAPITAL FINANCIAL SERVICES LIMITED

ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI - 400001, 
MAHARASHTRA, INDIA

C22191282

2

10437969

20/07/2013

187,500,000.00

STATE BANK OF INDIA

BHARUCH BRANCH, OPPOSITE JILLA PANCHAYAT OFFICE, BHARUCH - 392001, GUJARAT, INDIA

B80094311

3

10303609

06/08/2011

500,000,000.00

STATE BANK OF INDIA

BHARUCH BRANCH,, OPPO: DISTRICT PANCHAYAT OFFICE, 
BHARUCH - 392001, GUJARAT, INDIA

B19341858

4

10263109

13/06/2014 *

845,400,000.00

STATE BANK OF INDIA

NANDELAV BRANCH, NANDELAV, BHARUCH - 392001, GUJARAT, INDIA

C09054701

5

10162687

27/06/2012 *

350,000,000.00

IDBI BANK LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHA 
RASHTRA, INDIA

B44046779

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Deposit from related parties

0.000

39.183

Loan from a Finance Company

38.182

0.000

 

 

 

Total

 

38.182

39.183

 

 

OPERATIONS:

 

AUTOMOTIVE DIVISION:

 

During the year, the Commercial Vehicle Manufacturing segment as a whole continued to be depressed showing negative growth, however, the production in medium and heavy Commercial Vehicles showed marginal improvement.

 

The Tractor Industry experienced sharp decline in production from October 2014 onwards registering a negative growth for the year. Despite the slowdown in Commercial Vehicle and Tractor segments, the Company was able to achieve a moderate top line growth. In order to reduce costs, the user industry in the recessionary period, continues to source low cost bearings from abroad, especially China, posing a challenge for the Company to retain market share and margins.

 

In spite of the Government’s intention to kick start the activities in the infrastructure and other manufacturing activities, there has not been any major improvement, resulting in sluggish demand for the Commercial Vehicles and Tractors. The low industrial activity continues to dampen the industrial bearing division and the aftermarket.

 

 

INDUSTRIAL BEARING AND BIG BEARING DIVISION:

 

In order to diversify the product portfolio, the Company made large investments in building the Industrial Bearing Division, however due to low level of industrial activity, the demand for industrial bearings is soft and the Company continues to be dependent on the Commercial Vehicle and the Tractor Industry’s business.

 

The Company has successfully developed several types of Spherical Roller Bearings for construction machinery, industrial gears, agricultural engineering equipment, metal production, food processing and material handling industries. The division has also successfully developed Slewing Bearings for the Defence & Wind Turbine Industry. The products have been well accepted by the customers.

 

The sales in this Division though higher than the previous year were not to the satisfaction of the Company. Theyare confident that with the Government’s initiatives to open up the mining and infrastructure segments, the industrial activity in the Country will pick up and this division will grow well.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

The automotive segment in India consists of Passenger Cars, Utility Vehicles, Commercial Vehicles, Two Wheelers and Three Wheelers. The Industry plays a major role in the Indian economy and is one of the key indicator of GDP.

 

During the last few years, there has been a general slow down in the industrial activity, leading to a slow down in the automotive segment as well.

 

The most affected segment due to recessionary trend is the commercial vehicles segment, which has shown negative growth for three years in a row. Though, there has been marginal improvement in medium and heavy commercial vehicle segment, it is rather insignificant to justify robust growth in the near future. The light commercial vehicle segment continues to show negative growth. The tractor industry has experienced negative growth in the current year.

 

The new Government understands that opening of the infrastructure and the mining sectors will kick start the economy and has started to take actions in these areas and together with the “Make in India” movement, it is hoped that industrial activity will pick up post monsoon.

 

 

OUTLOOK

 

Key economic indicators not being encouraging and with the forecast of below normal monsoon, it is difficult to predict the near term growth; however, on the long-term, the outlook is still positive.

 

The other concerns are competition from imports of low priced bearings, slow opening up of infrastructure activities, high interest rates and unforeseen disasters.

 

 

STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2015

PART I

(Rs. in Million)

 

Particulars

Quarter ended

Half year ended

 

 

Unaudited

30.09.2015

Unaudited

30.06.2015

Unaudited

30.09.2015

1.

Income from operations

 

 

 

 

a) Net sales/Income from operations (net of excise duty)

421.806

437.893

859.699

 

b) Other operating income

5.376

4.305

9.681

 

Total Income from Operations (net)

427.182

442.198

869.380

 

 

 

 

 

2.

Expenses

 

 

 

 

a) Cost of Materials Consumed

194.959

199.841

394.800

 

b) Purchase of traded goods

0.625

0.768

1.393

 

c) Changes in inventories of finished goods,  work-in-progress and traded goods

19.518

24.854

44.372

 

d) Employee benefits expense

51.628

53.638

105.266

 

e) Depreciation and amortisation expense

31.198

31.528

62.726

 

f) Other expenses

104.374

99.645

204.019

 

Total Expenses

402.302

410.274

812.576

 

 

 

 

 

3.

Profit/(Loss) from Operations before other income, finance costs and exceptional Items (1-2)

24.880

31.924

56.804

4.

Other Income

0.939

1.202

2.141

5.

Profit/(Loss)  from ordinary activities before finance costs and exceptional Items (3+4)

25.819

33.126

58.945

6.

Finance costs

16.183

16.631

32.814

7.

Profit/(Loss)  from ordinary activities after finance costs but before exceptional Items (5-6)

9.636

16.495

26.131

8.

Exceptional Items

0.000

0.000

0.000

9.

Profit/(Loss)  from ordinary activities before tax (7-8)

9.636

16.495

26.131

10.

Tax expense 

 

 

 

 

Current tax

1.965

3.363

5.328

 

Deferred tax (credit)/charge

3.405

5.454

8.859

 

MAT credit entitlement

(1.965)

(3.363)

(5.328)

11.

Profit/(Loss)  from ordinary activities after tax (9-10)

6.231

11.041

17.272

12.

Extraordinary items (Net of tax expenses Rs. Nil)

0.000

0.000

0.000

14.

Net Profit/ (Loss for the period (11-12)

6.231

11.041

17.272

15.

Paid-up Eq. Share Capital (Face Value: Rs.10/- each)

115.500

115.500

115.500

16.

Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year

0.000

0.000

0.000

17.

Earnings Per Share (of Rs. 10/- each)

 

 

 

 

a)     Basic and diluted EPS before extraordinary items for the period (Not annualised)

0.54

0.96

1.50

 

b)    Basic and diluted EPS after extraordinary items for the period (Not annualised)

0.54

0.96

1.50

PART II

 

SELECT INFORMATION FOR THE QUARTER ENDED 30.09.2015

 

 

Particulars

Quarter ended

Half year ended

 

 

Unaudited

30.09.2015

Unaudited

30.06.2015

Unaudited

30.09.2015

1.

Public Shareholding

 

 

 

 

- Number of Shares

7073275

7073275

7073275

 

- Percentage of Shareholding

61.24%

61.24%

61.24%

2.

Promoter and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

--

--

--

 

-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

--

--

--

 

-Percentage of Shares (as a % of the total share capital of the Company)

--

--

--

 

b) Non-Encumbered

 

 

 

 

- Number of Shares

4476725

4476725

4476725

 

-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

100%

100%

100%

 

-Percentage of Shares (as a % of the total share capital of the Company)

38.76%

38.76%

38.76%

 

 

 

 

Particulars

 

 

30.09.2015

(3 Month ended)

B.

INVESTOR COMPLAINTS

 

 

 

 

Pending at the beginning of the quarter

 

 

0

 

Received during the quarter

 

 

10

 

Disposed of during the quarter

 

 

10

 

Remaining unresolved at the end of the quarter

 

 

0

NOTE:

 

  1. The company is primarily engaged in the business of bearings and accordingly there are no separate reportable segment pursuant to accounting standard-17 on “Segment Reporting”.

 

  1. The above results subjected to a “Limited Review” by the statutory auditors have been reviewed by the audit committee and taken on record by the Board of Directors at its meeting held on 6th November, 2015.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

Demands contested in appeal:

 

 

Excise Duty and Service tax

2.185

2.185

Income tax and Fringe Benefit Tax

9.596

9.754

Sales tax

0.198

1.611

Claims against the Company not acknowledged as debt (Including share of jointly controlled entity NSK-ABC Bearings Pvt. Ltd. R 0.496 Million previous year R6.35 Lacs)

4.138

3.995


FIXED ASSETS:

 

Tangible Assets

·         Land

·         Free Hold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Equipment’s, Appliances and Tools

·         Electrical Installations

·         Office Equipment’s

·         Furniture and Fixtures

·         Vehicles

 

Intangible Assets

 

·         Computer Software

·         Technical Knowhow

 

 

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.66.55

UK Pound

1

Rs.100.64

Euro

1

Rs.70.70

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ARC

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

52

 

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.