|
|
|
MIRA INFORM REPORT
|
Report No. : |
502632 |
|
Report Date : |
09.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
AUTOMOTIVE AXLES LIMITED |
|
|
|
|
Registered
Office : |
Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018,
Karnataka |
|
Tel. No.: |
91-821-7197500 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
21.01.1981 |
|
|
|
|
Com. Reg. No.: |
08-004198 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 151.120 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51909KA1981PLC004198 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
0789003961 |
|
|
|
|
GSTN : [Goods & Service Tax Registration
No.] |
29AABCA6923G1ZP |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCA6923G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacturing and sale of automotive components. [Registered Activity] |
|
|
|
|
No. of Employees
: |
372 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A++ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
Maximum Credit Limit : |
USD 10740000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was incorporated in 1981 as a 35.5% each JV between Bharat Forge Limited and Meritor Inc, USA. It is presently the largest independent manufacturer of Rear Drive Axle Assemblies for CVs in India. The company product portfolio includes a wide range of rear drive axles catering to haulage trucks, tippers and tractor trailers. It is also engaged in brake assembly for CVs. It’s customers include all the major players in the CV industry-Ashok Leyland Limited, Tata Motors Limited, Vehicle Factory (Jabalpur), Mahindra and Mahindra Limited, Asia Motors Works Limited and Force Motors Limited (Force) in India and Meritor USA, Europe and China. As per financials of March 2017, the company has registered a growth of 5.60% in its revenue as compared to its previous year’s revenue and has reported fair profit margin of 4.24%. Rating takes into consideration the company’s long established track record of business operations marked by healthy net worth base along with debt free balance sheet and good liquidity position. Rating also takes into account the strong market position in the axle manufacturing industry and well established customer base with healthy share of business with several major commercial vehicle (CV) manufacturers. Share are quoted very high on Stock Exchanges. (Shares are traded at a price of INR 1580.40 against its face value of INR 10.) However, rating strength is partially offset by highly competitive intensity in the industry with presence of international players in the domestic market and exposed to cyclicality in the M&HCV industry. As per unaudited quarterly financials of December 2017, the company has achieved a revenue of INR 4079.267 million and has reported good profit margin of 5.47%. Payments seems to be regular as per commitments. In view of aforesaid, the company can be considered good for business dealings at normal 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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term borrowing = A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
11.07.2017 |
|
|
|
|
Rating Agency Name |
ICRA |
|
Rating |
Short term rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk |
|
Date |
11.07.2017 |
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
31-03-2018.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 09.04.2018.
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
Management Non-Cooperative (Tel. No.:
91-821-7197500)
LOCATIONS
|
Registered Office / Unit I : |
Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018,
Karnataka, India |
|
Tel. No.: |
91-821-7197500 |
|
Fax No.: |
91-821-2402451 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Unit II : |
6 Km Stone, Kichha Road, Village Shimla Pistor, Rudrapur, Udham Singh
Nagar, Uttarakhand, India |
|
|
|
|
Unit III : |
Old Khakripara, Village and Post – Chhota Govindpur, Jamshedpur, District East Singhbhum-831015, Jharkhand, India |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Dr. Babasaheb Neelkanth Kalyani |
|
Designation : |
Chairman |
|
Address : |
Amit, 221/A, Kalyani Nagar, Yerawada, Pune-411006, Maharashtra, India |
|
Date of Appointment : |
05.03.1998 |
|
DIN No.: |
00089380 |
|
|
|
|
Name : |
Dr. Narayanasamy Muthukumar |
|
Designation : |
President and Whole-time Director |
|
Address : |
FFA 102, S V Residency, No. 5671/C 2nd Stage, Vijayanagar, Mysore-570017, Karnataka, India |
|
Date of Birth/Age : |
52 Years |
|
Qualification : |
M. Sc., MBA, Phd |
|
Experience : |
29 Years |
|
Date of Appointment : |
01.10.2013 |
|
DIN No.: |
06708535 |
|
|
|
|
Name : |
Mr. Prabhakar Chandrashekharaiah Bhoopalam |
|
Designation : |
Director |
|
Address : |
No.2276, 22nd Cross, Off K R Road, Banashankari II Stage, Bangalore-560070, Karnataka, India |
|
Date of Appointment : |
27.01.2005 |
|
DIN No.: |
00040052 |
|
|
|
|
Name : |
Mr. Bhalachandra Basappa Hattarki |
|
Designation : |
Director |
|
Address : |
211/2, 4-D Hiremath Park, Kalyani Nagar, Pune-411006, Maharashtra, India |
|
Date of Appointment : |
12.01.2007 |
|
DIN No.: |
00145710 |
|
|
|
|
Name : |
Mr. Supriti Bhandary |
|
Designation : |
Director |
|
Address : |
House No.249, Rainbow Residency, Opposite Wipro Corporate Office, Bangalore-560035, Karnataka, India |
|
Date of Appointment : |
10.02.2016 |
|
DIN No.: |
07233024 |
|
|
|
|
Name : |
Mr. Rakesh Kalra |
|
Designation : |
Additional Director |
|
Address : |
F 501, Spica, One North Near Magarpatta Township, Hadapsar, Pune City, Pune-411028, Maharashtra, India |
|
Date of Appointment : |
13.02.2018 |
|
DIN No.: |
00780354 |
|
|
|
|
Name : |
Mr. Chrishan Anton Sebastian Villavarayan |
|
Designation : |
Director |
|
Address : |
No.246 A, Prestige Ozone, White Field, Bangalore-560066, Karnataka, India |
|
Date of Appointment : |
31.01.2018 |
|
DIN No.: |
03020467 |
|
|
|
|
Name : |
Mr. Joseph A. Plomin |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish Sekhri |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ranganathan Sankaran |
|
Designation : |
Chief Financial Officer |
|
Address : |
S3, Ramnivas Apartment 42, 7th Main, Malleswaram, Bangalore-560003, Karnataka, India |
|
Date of Birth/Age : |
50 Years |
|
Qualification : |
B.com, CA, Cost and Works Accountancy |
|
Experience : |
23 Years |
|
Date of Appointment : |
01.04.2016 |
|
PAN No.: |
AARPR8520R |
|
|
|
|
Name : |
Mr. Debadas Panda |
|
Designation : |
Company Secretary |
|
Address : |
Flat No.105a, Prithvi Lifestyle Apartment, Vinaya Marga, Siddartha Layout, Mysuru-570011, Karnataka, India |
|
Date of Appointment : |
18.08.2017 |
|
PAN No.: |
AJYPP9994K |
|
|
|
|
Name : |
Ms. Thejeshwini N |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON DECEMBER 2017
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
(A) Promoter & Promoter Group |
10735081 |
71.04 |
|
|
(B) Public |
4376894 |
28.96 |
|
|
Grand Total |
15111975 |
100.00 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER
GROUP
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
||
|
Any Other (specify) |
5367806 |
35.52 |
|
|
BF Investment Limited |
5367806 |
35.52 |
|
|
Sub Total A1 |
5367806 |
35.52 |
|
|
A2) Foreign |
0.00 |
||
|
Any Other (specify) |
5367275 |
35.52 |
|
|
Meritor Heavy Vehicle Systems, LLC |
5367275 |
35.52 |
|
|
Sub Total A2 |
5367275 |
35.52 |
|
|
A=A1+A2 |
10735081 |
71.04 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
Category
& Name of the Shareholders |
Total no.
shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0.00 |
||
|
Mutual Funds/ |
1789891 |
11.84 |
|
|
Reliance Capital Trustee Company Limited-A/C Reliance Mid and Small Cap Fund |
556740 |
3.68 |
|
|
UTI-Mid Cap Fund |
366046 |
2.42 |
|
|
Reliance Capital Trustee Company Limited - A/C Reliance Tax Saver (Elss) Fund |
359940 |
2.38 |
|
|
Reliance Capital Trustee Company Limited A/C Reliance Vision Fund. |
190323 |
1.26 |
|
|
Uti Transportation and Logistics Fund |
156921 |
1.04 |
|
|
Foreign Portfolio Investors |
228730 |
1.51 |
|
|
Financial Institutions/ Banks |
5307 |
0.04 |
|
|
Sub Total B1 |
2023928 |
13.39 |
|
|
B2) Central Government/ State Government(s)/ President of India |
0.00 |
||
|
B3) Non-Institutions |
0.00 |
||
|
Individual share capital upto INR 0.200 Million |
1413691 |
9.35 |
|
|
Individual share capital in excess of INR 0.200 Million |
95851 |
0.63 |
|
|
NBFCs registered with RBI |
9360 |
0.06 |
|
|
Any Other (specify) |
834064 |
5.52 |
|
|
Bodies Corporate |
756473 |
5.01 |
|
|
Clearing Members |
51444 |
0.34 |
|
|
Trusts |
350 |
0.00 |
|
|
Investor Education and Protection Fund Authority Ministry of Corporate |
25797 |
0.17 |
|
|
Bajaj Allianz Life Insurance Company Limited |
586159 |
3.88 |
|
|
Sub Total B3 |
2352966 |
15.57 |
|
|
B=B1+B2+B3 |
4376894 |
28.96 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and sale of automotive components. [Registered Activity] |
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|
Products / Services
: |
|
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|
|
|
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|
Brand Names : |
Not Available |
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|
|
|
||||||||
|
Agencies Held : |
Not Available |
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|
|
|
||||||||
|
Exports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Imports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||
|
|
|
||||||||||||||
|
Customers : (From indirect source) |
|
||||||||||||||
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|
|
||||||||||||||
|
No. of Employees : |
372 (Approximately) |
||||||||||||||
|
|
|
||||||||||||||
|
Bankers : |
|
||||||||||||||
|
|
|
||||||||||||||
|
Facilities : |
|
|
Statutory
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Chennai, Bangalore, India |
|
|
|
|
Internal
Auditors : |
|
|
Name : |
Price Water House and Company Chartered Accountants LLP |
|
Address : |
Bangalore, India |
|
|
|
|
Auditor
: |
|
|
Name : |
S. R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
12th and 13th Floor, “UB City” Canberra Block, No.24,
Vittal Mallya Road, Bangalore-560001, Karnataka, India |
|
Tel. No.: |
91-80-67275000 |
|
Fax
No.: |
91-80-22106000 |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Entity having
substantial Influence: |
|
|
|
|
|
Enterprises under
Common Control : |
|
|
|
|
|
Enterprises over
which Key Management Personnel (KMP) have significant influence : |
|
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23000000 |
Equity Shares |
INR 10/- each |
INR 230.000 Million |
|
2000000 |
Preference Shares |
INR 10/- each |
INR 20.000 Million |
|
|
Total |
|
INR 250.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15111975 |
Equity Shares |
INR 10/- each |
INR 151.120
Million |
|
|
|
|
|
i) Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period
|
Particulars |
Opening Balance |
Closing Balance |
|
Equity shares with voting rights |
|
|
|
Year ended 31st March, 2017 |
|
|
|
Number of shares |
15111975 |
15111975 |
|
Amount (INR In Millions) |
151.120 |
151.120 |
|
Year ended 31st March, 2016 |
|
|
|
Number of shares |
15111975 |
15111975 |
|
Amount (INR In Millions) |
151.120 |
151.120 |
ii) Details of shares held
by each shareholder holding more than 5% shares:
|
Class of shares /
Name of shareholder |
As at 31st March, 2017 |
|
|
Number of shares held |
% holding in that class of shares |
|
|
Equity shares with
voting rights |
|
|
|
BF Investments Ltd., |
5367806 |
35.520 |
|
Meritor Heavy Vehicle Systems, LLC USA |
5367275 |
35.517 |
|
Reliance Capital Trustee Company Ltd., |
771360 |
5.104 |
|
(A/C Reliance Vision Fund) |
|
|
(iii) Right,
preferences and restrictions attached to shares
The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
151.120 |
151.120 |
151.120 |
|
(b) Reserves &
Surplus |
3606.660 |
3120.860 |
2873.220 |
|
(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) |
3757.780 |
3271.980 |
3024.340 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
25.010 |
|
(b) Deferred tax liabilities
(Net) |
11.120 |
66.920 |
111.720 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
48.970 |
34.350 |
10.440 |
|
Total Non-current
Liabilities (3) |
60.090 |
101.270 |
147.170 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
288.420 |
540.820 |
|
(b) Trade payables |
1687.880 |
1371.110 |
1338.280 |
|
(c) Other current
liabilities |
82.850 |
61.490 |
129.790 |
|
(d) Short-term provisions |
47.650 |
148.720 |
28.150 |
|
Total Current Liabilities
(4) |
1818.380 |
1869.740 |
2037.040 |
|
|
|
|
|
|
TOTAL |
5636.250 |
5242.990 |
5208.550 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1547.810 |
1679.310 |
1759.550 |
|
(ii) Intangible Assets |
5.880 |
4.550 |
8.010 |
|
(iii) Capital
work-in-progress |
72.570 |
89.070 |
168.800 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
55.270 |
84.890 |
74.220 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1681.530 |
1857.820 |
2010.580 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
988.010 |
1105.760 |
1158.380 |
|
(c) Trade receivables |
2313.960 |
1980.070 |
1755.200 |
|
(d) Cash and cash equivalents |
350.540 |
2.520 |
35.780 |
|
(e) Short-term loans and
advances |
300.720 |
287.100 |
239.630 |
|
(f) Other current assets |
1.490 |
9.720 |
8.980 |
|
Total Current Assets |
3954.720 |
3385.170 |
3197.970 |
|
|
|
|
|
|
TOTAL |
5636.250 |
5242.990 |
5208.550 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
11468.350 |
10859.670 |
4591.770 |
|
|
Other Income |
19.820 |
15.770 |
25.260 |
|
|
TOTAL |
11488.170 |
10875.440 |
4617.030 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
8208.220 |
7787.660 |
3244.390 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(3.630) |
25.030 |
31.450 |
|
|
Employees benefits
expense |
823.080 |
798.220 |
369.700 |
|
|
Other expenses |
1318.310 |
1291.050 |
592.630 |
|
|
TOTAL |
10345.980 |
9901.960 |
4238.170 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE INTEREST,
TAX, DEPRECIATION AND AMORTISATION |
1142.190 |
973.480 |
378.860 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
8.960 |
53.540 |
40.830 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1133.230 |
919.940 |
338.030 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
394.630 |
404.700 |
173.210 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
738.600 |
515.240 |
164.820 |
|
|
|
|
|
|
|
Less |
TAX |
252.810 |
167.500 |
59.400 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
485.790 |
347.740 |
105.420 |
|
|
|
|
|
|
|
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
2546.450 |
2298.810 |
2223.200 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General
Reserve |
0.000 |
0.000 |
10.540 |
|
|
Dividend |
0.000 |
83.120 |
15.110 |
|
|
Tax on Dividend |
0.000 |
16.980 |
4.160 |
|
|
Total |
0.000 |
100.100 |
29.810 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
3032.240 |
2546.450 |
2298.810 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
229.760 |
214.910 |
119.950 |
|
|
Consumable & Spares |
34.740 |
7.030 |
18.180 |
|
|
Capital Goods |
41.130 |
4.170 |
44.020 |
|
|
TOTAL IMPORTS |
305.630 |
226.110 |
182.150 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
32.15 |
23.01 |
6.98 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
0.000 |
0.000 |
49.470 |
|
Cash generated from operations |
1283.480 |
746.750 |
984.190 |
|
Net cash from / (used in) operating activities |
970.820 |
569.050 |
917.080 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 1st
Quarter |
30.09.2017 2nd
Quarter |
31.12.2017 3rd
Quarter |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
Net Sales |
3202.690 |
3496.400 |
4079.270 |
|
Total Expenditure |
2918.000 |
3103.850 |
3638.390 |
|
PBIDT (Excluding Other Income) |
284.690 |
392.550 |
440.880 |
|
Other Income |
11.030 |
16.140 |
14.510 |
|
Operating Profit |
295.710 |
408.690 |
455.390 |
|
Interest |
1.230 |
1.150 |
1.240 |
|
Exceptional Items |
NA |
NA |
NA |
|
PBDT |
294.480 |
407.540 |
454.150 |
|
Depreciation |
99.040 |
97.940 |
116.290 |
|
Profit Before Tax |
195.440 |
309.600 |
337.860 |
|
Tax |
66.470 |
105.130 |
114.850 |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
128.970 |
204.470 |
223.010 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
128.970 |
204.470 |
223.010 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors
/ Income * 365) |
73.65 |
66.55 |
139.52 |
|
|
|
|
|
|
Account Receivables Turnover (Income /
Sunday Debtors) |
4.96 |
5.48 |
2.62 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
75.06 |
64.26 |
150.56 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.16 |
0.88 |
0.33 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.70 |
0.55 |
0.20 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.32 |
0.36 |
0.41 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.00 |
0.09 |
0.20 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.48 |
0.57 |
0.67 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.43 |
0.54 |
0.64 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
127.48 |
18.18 |
9.28 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin [(PAT / Sales) * 100] |
% |
4.24 |
3.20 |
2.30 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
8.62 |
6.63 |
2.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
12.93 |
10.63 |
3.49 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
2.17 |
1.81 |
1.57 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
1.63 |
1.22 |
1.00 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.67 |
0.62 |
0.58 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
0.00 |
1.91 |
4.07 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
2.17 |
1.81 |
1.57 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 1580.40/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR In Million |
INR In Million |
INR In Million |
|
Share Capital |
151.120 |
151.120 |
151.120 |
|
Reserves & Surplus |
2873.220 |
3120.860 |
3606.660 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
3024.340 |
3271.980 |
3757.780 |
|
|
|
|
|
|
Long-term borrowings |
25.010 |
0.000 |
0.000 |
|
Short term borrowings |
540.820 |
288.420 |
0.000 |
|
Current Maturities of
Long term debt |
49.470 |
0.000 |
0.000 |
|
Total borrowings |
615.300 |
288.420 |
0.000 |
|
Debt/Equity ratio |
0.203 |
0.088 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR In Million |
INR In Million |
INR In Million |
|
Sales |
4591.770 |
10859.670 |
11468.350 |
|
|
|
136.503 |
5.605 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR In Million |
INR In Million |
INR In Million |
|
Sales |
4591.770 |
10859.670 |
11468.350 |
|
Profit |
105.420 |
347.740 |
485.790 |
|
|
2.30% |
3.20% |
4.24% |
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 |
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 |
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 |
CORPORATE INFORMATION
The company is a joint venture of Kalyani Group and Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation) incorporated in 1981 under the Companies Act, 1956 with manufacturing facilities located at Mysore, Rudrapur and Jamshedpur.
PERFORMANCE OF THE
COMPANY
The Sales and other income for the financial year was INR 11488.170 Million as against INR 10875.440 Million for the previous financial year. The Profit before tax (PBT) was INR 738.600 Million and the Profit after tax (PAT) was INR 485.790 Million for the financial year, as against INR 515.240 Million and INR 347.740 Million respectively for the previous financial year.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDIAN ECONOMY
India recorded an economic growth rate of 7.1% during 2016-17 driven by strong consumption and fiscal reforms. A stable government, increased purchasing power, large domestic market, and an ever-increasing development in infrastructure have made India a favourable destination for investment.
INFLATION: The retail inflation stayed above the comfort zone of 5% till August 2016. However, it started moderating thereafter due to a normal monsoon, dropping to a two-year low of 3.4%. The average inflation for FY 2016-17 stood at 4.5% (4.9% in FY 2015-16)
FISCAL deficit: The fiscal deficit as a percentage of GDP stood at 3.5% for 2016-17. This has been revised to 3.2% for 2017-18.
CURRENT ACCOUNT DEFICIT: The current account deficit as a percentage of GDP stood at 0.9% lowest in the last five years.
CURRENCY: The Rupee saw a marginal depreciation as it stood at INR 65.90 during 2016-17 (INR 66 in 2015-16).
FY 2016-17 witnessed some of India’s boldest economic reforms: Demonetisation and GST. The demonetisation
of high value currency notes was targeted towards preventing corruption, counterfeiting, terrorist activities and accumulation of black money. Further, this move strengthened cash flow into the banking system, which was afflicted with bad loans. Besides, demonetisation is expected to lead India on a path of higher GDP growth, better tax compliances and larger tax revenues by reducing corruption. Additionally, it is likely to have significant positive influence on India’s banking habits.
The government envisioned a transparent and formal economy for India, based on digital platforms and demonetisation served as a seminal reform in this vision. Together with the upcoming Goods and Service Tax (GST) bill, it is set to change how the Indian economy functions. GST is to introduce a simplified indirect tax system that will unite the fragmented Indian market under uniform taxation. The new tax structure will not just widen the tax cover but promote transparency and competition in the market. Moreover, it is expected to contribute significantly to the country’s GDP in future.
Overall, India is set for a long-term growth trajectory, driven by greater access to banking, technology adoption, urbanisation and other structural reforms.
INDIAN AUTOMOBILES
INDUSTRY
India is the third largest automobile industry in the world, and the sector accounts for 7.1% of the country’s GDP.
India’s automobile sector is growing backed by rising disposable incomes and multiplying middle-class and youth populations. Moreover, rapid urbanisation and want for better transport infrastructure along with easily available finance is expanding demand in this sector. Besides, original equipment manufacturers (OEMs) are penetrating rural markets and targeting women across the country, which further augments demand in the automobile sector.
OUTLOOK
The Indian auto component industry is expected to grow by 8-10% in FY 2017-18. This growth will be based on higher localisation in procurements by OEMs, higher component content per vehicle, and rising exports from India (Source: ICRA Limited).
The aftermarket is expected to grow at 10.5% to touch US$ 13 billion by 2019-20, as compared to US$ 8.4 billion in 2016-17 (Source: IBEF).
Rising vendor consolidation, faster aftermarket growth, and increasing localisation of procuring components are likely to bolster the sector, going forward. Moreover, export-oriented growth and expanding number of electronic components per vehicle will induce the Indian auto component segment to consistently develop.
AUTOMOTIVE AXLE LIMITED
(AAL)
- Largest independent
manufacturer of Rear Drive Axle Assemblies in India
- A joint venture
between Kalyani Group and Meritor Inc., USA
- Listed on National
Stock Exchange and BSE Limited
- Manufacturing
footprints across Mysuru, Rudrapur and Jamshedpur.
AWARDS AND ACCOLADES
Their consistent efforts to make work conditions at Automotive Axles Limited (AAL) more favourable has garnered for us:
1. Machinist Super Shop Floor 2016 Award in Green Manufacturing Category on May 26, 2016 at Pune.
2. During Quality Circle Forum of India (QCFI) 7th Regional Convention Quality Concepts-Kaizen Award held on May 22, 2016 at Vidyavardhaka College, Mysuru the Company bagged 13 gold awards, 1 silver award and 1 bronze award.
3. The Company won Quality Circle Forum of India (QCFI) – Chapter Convention of Quality Concepts Kaizen Awards at Coimbatore on October 15, 2016 and QCFI – CCQC 2016 Kaizen Awards at Bangalore on October 23, 2016.
PERFORMANCE REVIEW
2016-17
Over the years, they have consistently worked on the concept of Built in Quality (BIQ) to achieve world-class manufacturing standards. This initiative has ensured that every operator maintains quality of products by following the principle of ‘Don’t Accept, Don’t Produce, Don’t Release’ defective products. The BIQ concept is now being followed across the Company.
To improve safety, health and environment standards, they enhanced their environment management systems by adopting ISO 14001 & BS OHSAS 18001. They have successfully completed the assessment audit and have been awarded OHSAS certification.
During the year, the Company took various other initiatives, including:
- Contributed to environmental wellbeing by using rain water harvesting for manufacturing processes, recharging systems and participating in green nurturing programmes, among others. These initiatives have resulted in the reduction of raw water consumption by 40%, over a span of four years.
- Installed bio gas plant; and the generated fuel is used for cooking in canteen.
- Launched Mission 18 team initiative to drive organisation-wide improvement and align it to the objective of revenue growth and cost savings.
- Initiated capacity
expansion projects to ramp up production to cater to increased market
requirement
-
Layout change activities
-
Low-cost automation to meet
increased requirement of Tandem axles
- Simplified product
layout inspection by installing 3D Scanning Machine.
- Separated export
production line and commissioned specialty axles plant to cater to the
demand for customised axles.
- Installed induction
lamps for shop floor illumination - reduced 47% of power consumption.
- Installed 30KW roof
top solar plant at brakes plant to reduce power consumption – effective
reduction of 5%.
- Commenced power factor
improvement activity for better energy conservation - sustain at 0.98.
INDEX OF CHARGE:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
B16733032 |
10297136 |
Kotak Mahindra Bank Limited |
16/06/2011 |
- |
- |
250000000.0 |
36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai-400021, Maharashtra, India |
|
2 |
C70211552 |
10200298 |
HDFC Bank Limited |
15/12/2009 |
16/03/2015 |
- |
650000000.0 |
HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India |
|
3 |
C70678719 |
10334196 |
HDFC Bank Limited |
20/12/2011 |
- |
13/11/2015 |
140000000.0 |
HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India |
|
4 |
C62992953 |
10215255 |
IDBI Bank Limited |
25/03/2010 |
29/11/2010 |
21/08/2015 |
200000000.0 |
IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India |
|
5 |
C58225418 |
10250517 |
Kotak Mahindra Bank Limited |
22/09/2010 |
16/02/2012 |
12/06/2015 |
200000000.0 |
36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai-400021, Maharashtra, India |
|
6 |
C35288612 |
10352893 |
Axis Bank Limited |
30/03/2012 |
- |
10/11/2014 |
137500000.0 |
Corporate Banking Branch, Queens Road, Bangalore-560001, Karnataka, India |
|
7 |
B98614894 |
10136801 |
State Bank of Mysore |
05/01/2009 |
14/05/2010 |
21/02/2014 |
125000000.0 |
Market Branch, Sayyaji Rao Road, Mysore-570001, IN Karnataka, India |
|
8 |
B79547204 |
10105833 |
HDFC Bank Limited |
22/05/2008 |
- |
25/06/2013 |
165000000.0 |
HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India |
|
9 |
B56399249 |
10039648 |
Citibank N.A. |
07/03/2007 |
- |
08/08/2012 |
420000000.0 |
506-507, Level 5, Prestige Meridian 2, # 30, M. G. Road, Bangalore-560001, Karnataka, India |
|
10 |
A77358570 |
80023465 |
BNPParibas |
18/02/2005 |
- |
08/01/2010 |
4000000.0 |
20, Collyer Quay#01-01 Tung Centre 2nd Floor, SINGAPORE NA049319SG |
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE
MONTHS ENDED DECEMBER 31, 2017
(INR In Million)
|
Particulars |
Quarter ended |
Nine
months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
INCOME FROM OPERATIONS |
|
|
|
|
Revenue from operations |
4079.267 |
3496.399 |
10844.677 |
|
Other Income |
14.510 |
16.139 |
42.760 |
|
Total
Income from Operations |
4093.777 |
3512.538 |
10887.437 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
2914.972 |
2444.060 |
7489.621 |
|
Changes in inventories of finished goods and
work-in-progress |
(70.456) |
2.516 |
(160.850) |
|
Excise duty on sales of goods |
0.000 |
0.000 |
341.758 |
|
Employee benefits expense |
283.058 |
228.598 |
725.996 |
|
Finance costs |
1.241 |
1.152 |
3.620 |
|
Depreciation and Amortization expenses |
116.287 |
97.941 |
313.266 |
|
Other Expenditure |
510.806 |
428.667 |
1331.117 |
|
Total
Expenses |
3755.908 |
3202.934 |
10044.528 |
|
Profit / (Loss) before Tax |
337.869 |
309.604 |
842.909 |
|
Tax Expense |
114.850 |
105.130 |
286.449 |
|
Profit / (Loss) after Tax |
223.019 |
204.474 |
556.460 |
|
Other
comprehensive income |
|
|
|
|
Items
that will not be reclassified to profit or loss |
|
|
|
|
Remeasurements of the defined benefit to profit or loss |
(17.480) |
(0.665) |
(17.477) |
|
Deferred tax on remeasurements of the defined benefit
liabilities / (assets) |
6.050 |
0.230 |
6.049 |
|
Total other comprehensive income, net of taxes |
(11.430) |
(0.435) |
(11.428) |
|
Total
comprehensive for the period |
211.589 |
204.039 |
545.032 |
|
Paid-up Equity Share Capital (Face value INR 10/- per
share) |
15.112 |
15.112 |
15.112 |
|
Earnings
per Share (EPS) - INR |
14.76 |
13.53 |
36.82 |
NOTES:
1. The above unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at the meetings held on February 13, 2010.
2. These financial results have been prepared In accordance with the
recognitions and measurement principles laid down in Indian Accounting
Standards ("Ind AS") 34 on Interim Financial Reporting prescribed
under Section 133 of the Companies Act, 2013 read with the relevant rules
issued thereunder and in terms of Regulations 33 of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, and SEBI circular No. Circular
No.CIR/CFD/FAC/62/2016 dated July 5, 2016.
The Company has opted to avail relaxation provided by SEBI vide the aforesaid
circular dated July 05, 2016 in respect of disclosure requirements for earlier
periods. Accordingly, the financial results for the year ended March 31, 2017
has not been presented. The reserves, as per the balance sheet of the previous
accounting year not being mandatory, have not been presented.
3. According to requirement of Ind AS and SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015, revenue for the nine months ended
December 31, 2017, three and nine months ended December 31, 2016, are reported
inclusive of excise duty. The Government of India has implemented Goods and
Service Tax ("GST') from July 01, 2017 replacing Excise Duty, Service tax
and various other indirect taxes. As per Ind AS 10, the revenue for the three
months ended December 31, 2017, is reported net of GST. Had the previously
reported revenue shown net of excise duty, comparative revenue of the Company
would have been as follows.
(INR In Million)
|
Particulars |
Quarter ended |
Nine
months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
Nets sales, Revenue from operations (Net of excise duty) |
4079.267 |
3496.399 |
10502.919 |
4. Segment information:
In line with the provisions of Ind AS 100 - Operating Segments, Chief Operating
Decision Maker (CODM) reviews the operators of the Company as a manufacturer of
Automotive Components, which is considered to be the only reportable segment by
the management. Accordingly, no separate disclosure of segment Information has
been made.
5. Previous period's figures have been regrouped / rearranged where necessary
to confirm to current period's classification
FIXED ASSETS:
Tangible Asset:
- Freehold Land
- Building
- Plant and Machinery
- Office equipments
- Furniture and Fixture
- Electricals
- Computers and Data processing units
- Vehicles
Intangible Asset:
- Computer software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records 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
|
INR |
|
US Dollar |
1 |
INR 64.99 |
|
UK Pound |
1 |
INR 90.96 |
|
Euro |
1 |
INR 79.51 |
INFORMATION DETAILS
|
Information Gathered
by : |
SUP |
|
|
|
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
BHG |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.