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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

506133

Report Date :

27.04.2018

 

 

IDENTIFICATION DETAILS

 

Name :

INDIA NIPPON ELECTRICALS LIMITED

 

 

Registered Office :

No.11 and 13, (Old No. 6 and 7), Patullos Road, Chennai – 600002, Tamilnadu

Tel. No.:

91-44-28110063/ 28110074

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

12.07.1984

 

 

Com. Reg. No.:

18-011021

 

 

Capital Investment / Paid-up Capital :

INR 113.107 Million

 

 

CIN No.:

[Company Identification No.]

L31901TN1984PLC011021

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of electronic Ignition Systems for two wheelers, three wheelers and portable engines. (Registered activity and also confirmed by management)

 

 

No. of Employees :

516 (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+

Low Risk

Business dealings permissible with low risk of default

 

Maximum Credit Limit :

USD 8200000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

India Nippon Electricals Limited is a joint venture between Lucas India Service Limited, India and Mahle Electric Drives Japan Corpn, Japan (Formerly Kokusan Denki Company Limited, Japan).


It is a manufacturer of Electronic Ignition Systems for Two Wheelers, Three Wheelers and Portable Engines.


As per the financial record of 2017, the company has witnessed a growth of 4.20% in its revenue as compared to its previous year and maintained good profitability margin during the year at 8.22% under review.


The rating takes into consideration sound financial profile of the company marked by healthy net worth base along with strong debt coverage indicators due to debt free balance sheet profile.


The company has favourable Earning Per Share (EPS) of INR 28.65 against a face value (FV) of INR 10.


The rating takes into consideration the subject’s long established track record of business operations along with extensive experience of its promoters.


Rating also takes into account of strong financial and managerial support that the company receives from its joint venture entity backed by its well experienced management team.


The company has its share price trading at around INR 554.70 against the Face Value (FV) of INR 05 on BSE as on 26th April, 2018.


As per the unaudited quarterly financials of December 2017, the company has achieved revenue of INR 1100.100 million and has reported profit margin of 10.68%.


Business is active. Payment seems to be regular.


In view of the aforesaid, the company can be considered for good business dealings at usual trade terms and conditions.


Note: As on 21st March, 2018, the company has split its face value of Shares from INR 10 to INR 05.

 

 

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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2018.

 

 

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 27.04.2018

 

 

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 PARTED BY

 

Name :

Mr. Ramesh

Designation :

Receptionist

Contact No.:

91-44-28460631

Date :

26.04.2018

 

 

LOCATIONS

 

Registered Office :

No. 11 and 13, (Old No. 6 and 7), Patullos Road, Chennai – 600002, Tamilnadu, India

Tel. No.:

91-44-28460073

Fax No.:

91-44-28460631

E-Mail :

inelcorp@inel.co.in

sampath.s@intel.co.in

Website :

http://www.indianippon.com

Location :

Owned

Locality :

Industrial

 

 

Factory 1 :

Hosur-Thali Road, Uliveeranapalli, Krishnagiri, District: Hosur - 635 114 Tamilnadu, India

Tel. No.:

91-4347-233432/ 233438

Fax No.:

91-4347-233431

E-Mail :

sampath.s@inel.co.in 

inelcorp@inel.co.in

investorscomplaints@inel.co.in

Website :

www.indianippon.com.

 

 

Factory 2 :

Madukarai Road, Kariamanickam, Nettapakkam Commune, Punducherry-605106, India

Tel. No.:

91-413-2697801/ 2697827/ 2699052/ 2699402/ 2698702

Fax No.:

91-413-2699052

E-Mail :

inelpondy@inel.co.in

 

 

Factory 3 :

Masani Village, Rewari District-122106, Harayana, India

Tel. No.:

91-1274-240860/ 240212

Fax No.:

91-1274-240840

E-Mail :

intelrewari@inel.co.in

 

 

Factory 4 :

B-36, Five Star Industrial Area, Kagal Hatknangale City, Kolhapur – 416216, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Tirumala Kumara Balaji

Designation :

Director

Address :

34, Poes Garden, Chennai – 600086, Tamilnadu, India

Date of Appointment :

28.07.1986

DIN No.:

00002010

 

 

Name :

Chidambar

Designation :

Director

Address :

101, A, Janakpuri, 2nd Street, Off: Velachery Road (Behind) Rane Madras, Chennai – 600042, Tamilnadu, India

Date of Appointment :

25.10.2008

DIN No.:

00017015

 

 

Name :

Mr. Ranganathan Vijayaraghavan

Designation :

Director

Address :

"Arvind", New No.40 (Old No.33), Warren Road, Mylapore, Chennai – 600004, Tamilnadu, India

Date of Appointment :

28.05.2013

DIN No.:

00026763

 

 

Name :

Mr. Venkatarathnam Balaraman

Designation :

Director

Address :

Guru Guha, New No.24, Old No Third Main Road, Kasturbai Nagar, Chennai – 600020, Tamilnadu, India

Date of Appointment :

25.10.2008

DIN No.:

00267829

 

 

Name :

Mr. Raghavan Kadaba Gopivallabhiyengar

Designation :

Director

Address :

Srivatsa, No. 51, KumarakrupaI Cross, Madhavanagar, Bangalore – 560001, Karnataka, India

Date of Appointment :

25.03.2005

DIN No.:

00359471

 

 

Name :

Mr. Arvind Balaji

Designation :

Managing Director

Address :

34, Poes Garden, Chennai – 600086, Tamilnadu, India

Date of Appointment :

25.10.2008

DIN No.:

00557711

 

 

Name :

Priyamvada Balaji

Designation :

Director

Address :

34, Poes Garden, Chennai – 600086, Tamilnadu, India

Date of Appointment :

29.01.2018

DIN No.:

00730712

 

 

Name :

Mr. Mukesh Kumar Somani

Designation :

Nominee Director

Address :

146, Nehru Apartments, Outer Ring Road, Kalkaji, New Delhi – 110019, India

Date of Appointment :

28.05.2016

DIN No.:

06608983

 

 

Name :

Ms. Jayashree Suresh Parekh

Designation :

Director

Address :

O. No. 7 (New17), Vasu Street, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Appointment :

26.03.2014

DIN No.:

06861217

 

 

Name :

Tadaya Momose

Designation :

Nominee Director

Address :

2-7-5-1403, Shiohama Koto-Ku Tokyo NA JP

Date of Appointment :

27.08.2014

DIN No.:

06984707

 

 

KEY EXECUTIVES

 

Name :

Mr. Subramaniam Sampath

Designation :

Company Secretary

Address :

34 (Old No. 16), 2nd Cross Street, West Cit Nagar, Nandanam, Chennai – 600035, Tamilnadu, India

Date of Appointment :

24.03.2015

PAN No.:

AAMPS2674J

 

 

Name :

Elango Srinivasan

Designation :

Chief Financial Officer

Address :

G.F.1, Ajanta Enclave 2nd Cross, ISRO Layout, Bangalore – 560078, Karnataka, India

Date of Appointment :

03.08.2015

PAN No.:

AAAPE5432E

 

 

Audit Committee :
  • K G Raghavan, Chairman
  • K Seshadri
  • V Balaraman
  • G Chidambar
  • R Vijayaraghavan

 

 

Stakeholders Relationship Committee :
  • T K Balaji, Chairman
  • K Seshadri
  • G Chidambar

 

 

Nomination and Remuneration Committee
  • V Balaraman, Chairman
  • T K Balaji
  • R Vijayaraghavan

 

 

CSR Committee :
  • G Chidambar, Chairman
  • Arvind Balaji
  • Jayshree Suresh

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on March, 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

Promoter and Promoter Group

15018332

66.39

Public

7603092

33.61

Grand Total

22621424

100.00

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

 

0.00

Any Other (specify)

10377332

45.87

LUCAS INDIAN SERVICE LTD

10377332

45.87

Sub Total A1

10377332

45.87

A2) Foreign

 

0.00

Any Other (specify)

4641000

20.52

MAHLE ELECTRIC DRIVES JAPAN CORPORATION

4641000

20.52

Sub Total A2

4641000

20.52

A=A1+A2

15018332

66.39

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

B1) Institutions

0

0.00

Mutual Funds/

30396

0.13

Alternate Investment Funds

476312

2.11

SUNDARAM ALTERNATIVE OPPORTUNITIES FUND SUNDARAM TRUSTEE COMPAMY LTD

363510

1.61

Foreign Portfolio Investors

15909

0.07

Financial Institutions/ Banks

70363

0.31

Sub Total B1

592980

2.62

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

5388818

23.82

Individual share capital in excess of INR 0.200 Million

499422

2.21

Any Other (specify)

1121872

4.96

Bodies Corporate

923972

4.08

Non-Resident Indian (NRI)

157294

0.70

IEPF

40606

0.18

HARITA SHEELA P LTD

232260

1.03

Sub Total B3

7010112

30.99

B=B1+B2+B3

7603092

33.61

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of electronic Ignition Systems for two wheelers, three wheelers and portable engines. (Registered activity and also confirmed by management)

 

 

Products :

NIC Code No.

Product Description

85.11

Manufacture of electronic Ignition Systems for twowheelers, three wheelers and portable engines

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Advance Payment, L/C, Cheque, Credit (30, 60, 90 Days), RTGS, NEFT

 

 

Purchasing :

Advance Payment, L/C, Cheque, Credit (30, 60, 90 Days), RTGS, NEFT

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

TVS

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

  • Honda
  • Suzuki
  • Mahindra
  • Piaggio
  • Kawasaki
  • Lombardini
  • Modenas
  • Aepres
  • Hero
  • Yamaha 

 

 

No. of Employees :

516 (Approximately) 

 

 

Bankers :

Bank Name

Bank of Baroda

Branch

Mount Road, Madras, Tamilnadu, India

Person Name (With Designation)

--

Contact Number

--

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

  • ICICI Bank Limited
  • Axis Bank Limited

 

Auditors :

 

Name :

Brahmayya and Company

Chartered Accountants

Address :

48, Masilamani Road, Balaji Nagar, Royapettah, Chennai - 600 014, Tamilnadu, India

 

 

Cost Auditor :

 

Name :

K Suryanarayanan

Chartered Accountants

 

 

Secretarial Auditor :

 

Name :

B. Chandra

Chartered Accountants

 

 

Statutory Auditors :

 

Name :

Deloitte, Haskins and Sells LLP (DHS LLP)

Chartered Accountants

Address :

52, Venkatnarayan Road, T. Nagar, Chennai - 600017, Tamilnadu, India  

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Joint Ventures of the Company :
  • Mahle Electric Drives Japan Corpn. (MEDJC) (formerly Kokusan Denki Co, Limited, Japan)
  • Lucas Indian Service Ltd (LIS)

 

 

Subsidiary :
  • P T Automotive Systems Indonesia (PT ASI)

 

 

Associate Company :
  • Synergy Shakthi Renewable Energy Private Limited, (SSREL)

U40108TN1995PTC030884

 

 

Enterprise over which KMP has significant influence :
  • Lucas TVS Limited (LTVS)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

INR 10/- each

INR 150.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11310712

Equity Shares

INR 10/- each

INR 113.107 Million

 

 

 

 

 

 

Number of equity shares at the beginning of the year

11310712

Add : Rights issue

--

Bonus issue

--

Less: Buy back

--

Number of equity shares at the end of the year

11310712

 

All shares are of the same nature ranking pari passu

 

Number of shares held by shareholders holding more than 5% of total shares

 

Name of the Share holder

Number of Shares

Lucas Indian Service Limited, India

5188666

Mahle Electric Drives Japan Corpn., Japan (formerly Kokusan Denki Company Limited, Japan)

2320500

 

 

FINANCIAL DATA

[all figures are in 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

113.107

113.107

113.107

(b) Reserves & Surplus

2766.759

2546.797

2144.325

(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)

2879.866

2659.904

2257.432

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

19.928

20.072

17.078

Total Non-current Liabilities (3)

19.928

20.072

17.078

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

469.525

385.914

297.919

(c) Other current liabilities

254.856

255.104

149.166

(d) Short-term provisions

119.075

36.017

86.042

Total Current Liabilities (4)

843.456

677.035

533.127

 

 

 

 

TOTAL

3743.250

3357.011

2807.637

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

496.342

418.527

417.557

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

32.192

20.578

6.070

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

988.638

978.754

827.218

(c) Deferred tax assets (net)

64.319

93.546

38.692

(d)  Long-term Loan and Advances

8.980

7.552

4.946

(e) Other Non-current assets

32.789

35.470

1.212

Total Non-Current Assets

1623.260

1554.427

1295.695

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1153.472

781.856

590.530

(b) Inventories

224.213

249.202

180.491

(c) Trade receivables

663.855

606.919

633.416

(d) Cash and cash equivalents

30.993

101.600

37.819

(e) Short-term loans and advances

8.276

8.607

52.698

(f) Other current assets

39.181

54.400

16.988

Total Current Assets

2119.990

1802.584

1511.942

 

 

 

 

TOTAL

3743.250

3357.011

2807.637

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

3943.035

3784.168

3277.315

 

Other Income

136.194

100.542

56.924

 

TOTAL

4079.229

3884.710

3334.239

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2336.607

2356.973

2290.273

 

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

7.574

(25.013)

(18.858)

 

Other Manufacturing Expense

157.254

151.018

166.659

 

Employees benefits expense

433.964

392.296

345.75

 

Excise duty

443.446

425.469

0.000

 

Other expenses

187.276

127.552

152.703

 

TOTAL

3566.121

3428.295

2936.527

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

513.108

456.415

397.712

 

 

 

 

 

Less

FINANCIAL EXPENSES

0.593

1.329

1.554

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

512.515

455.086

396.158

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

41.689

41.767

77.485

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

470.826

413.319

318.673

 

 

 

 

 

Less

TAX

146.842

107.469

92.117

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

323.984

305.850

226.556

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

 NA

176.49

121.267

 

TOTAL EARNINGS

 NA

176.490

121.267

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

 NA

68.417

56.306

 

Components and Stores parts

 NA

260.012

225.118

 

Capital Goods

 NA

2.175

7.452

 

TOTAL IMPORTS

 NA

330.604

288.876

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

28.65

27.04

20.03

 

 

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

0.000

Cash generated from operations

420.794

417.368

382.781

Net cash flow from operating activity

319.366

331.470

298.509

 

 

QUARTERLY RESULTS

 

(INR in Million)

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

1177.200

1177.100

1100.100

Total Expenditure

1036.000

1001.800

951.100

PBIDT (Excl OI)

141.200

175.300

149.000

Other Income

33.300

26.700

30.400

Operating Profit

174.500

202.000

179.400

Interest

0.300

0.100

0.200

Exceptional Items

NA

NA

NA

PBDT

174.200

201.900

179.200

Depreciation

14.300

14.800

15.700

Profit Before Tax

159.900

187.100

163.500

Tax

27.000

75.400

46.800

Provisions and contingencies

NA

NA

NA

Profit After Tax

132.900

111.700

116.700

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

132.900

111.700

116.700

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

61.45

58.54

70.54

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

5.94

6.24

5.17

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

73.34

59.76

47.48

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

2.29

1.83

2.20

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.97

1.04

0.94

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.23

0.20

0.19

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.00

0.00

0.00

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.29

0.25

0.24

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.18

0.17

0.19

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

865.27

343.43

255.93

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

8.22

8.08

6.91

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.66

9.11

8.07

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

11.25

11.50

10.04

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

2.51

2.66

2.84

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

2.25

2.29

2.50

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.77

0.79

0.80

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

0.00

0.00

0.00

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

2.51

2.66

2.84

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 5.00/- each

Market Value

INR 554.70/- each

 

 

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

113.107

113.107

113.107

Reserves & Surplus

2144.325

2546.797

2766.759

Share Application money pending allotment

0.000

0.000

0.000

Net worth

2257.432

2659.904

2879.866

 

 

 

 

Long Term borrowings

0.000

0.000

0.000

Short Term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

3277.315

3784.168

3943.035

 

 

15.465

4.198

 

 

 

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

3277.315

3784.168

3943.035

Profit

226.556

305.850

323.984

 

6.91%

8.08%

8.22%

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

113.107

113.107

(b) Reserves & Surplus

 

2641.131

2452.593

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

2754.238

2565.700

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

19.928

20.072

Total Non-current Liabilities (3)

 

19.928

20.072

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

0.000

(b) Trade payables

 

469.524

385.914

(c) Other current liabilities

 

254.859

255.536

(d) Short-term provisions

 

119.075

36.018

Total Current Liabilities (4)

 

843.458

677.468

 

 

 

 

TOTAL

 

3617.624

3263.240

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

550.526

474.074

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

32.192

20.578

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

738.371

754.940

(c) Deferred tax assets (net)

 

64.319

93.546

(d)  Long-term Loan and Advances

 

8.980

7.552

(e) Other Non-current assets

 

32.789

35.470

Total Non-Current Assets

 

1427.177

1386.160

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

1153.472

781.856

(b) Inventories

 

224.213

249.202

(c) Trade receivables

 

663.856

606.920

(d) Cash and cash equivalents

 

100.829

176.095

(e) Short-term loans and advances

 

0.000

0.000

(f) Other current assets

 

48.077

63.007

Total Current Assets

 

2190.447

1877.080

 

 

 

 

TOTAL

 

3617.624

3263.240

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

3943.035

3784.168

 

Other Income

 

137.528

103.301

 

TOTAL

 

4080.563

3887.469

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

2336.607

2356.973

 

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

 

7.574

(25.013)

 

Other Manufacturing Expense

 

157.255

151.018

 

Employees benefits expense

 

433.964

392.296

 

Excise duty

 

443.446

425.470

 

Other expenses

 

190.454

131.349

 

TOTAL

 

3569.300

3432.093

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

511.263

455.376

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

0.605

1.338

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

510.658

454.038

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

41.689

41.767

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

468.969

412.271

 

 

 

 

 

Less

TAX

 

146.842

107.469

Add

Share of (Loss) - Minority - Subsidiary

 

(0.001)

0.000

Add

Share of (Loss) on non-integral interest –
Associate

 

(26.453)

(15.578)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

295.673

289.224

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

26.14

25.57

 

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

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

Yes

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

FINANCIAL AND OPERATIONAL PERFORMANCE

 

The Company’s sales has gone up as compared to the previous year by 4% in value terms. Profit before tax and exceptional items, has increased by around 14.7% over the previous year because of increased level of sales and cost reduction in material cost despite increase in employee cost. The company also increased production capacity in Pondy to take care of the higher demand from the customers.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

a. Overall economic view:

 

Indian economy has witnessed good GDP growth up to 7.9% initially during the first half of FY17 by showing resilience amidst global economy challenges, decline in investments and increased protectionist measures. The current fiscal has also seen significant game changing activities like passing of GST Bill and Bankruptcy Code bills and demonetisation. Repo rates have also fallen from 7.5% to 6.25% in Apr17 increasing the liquidity with banks and exchange rates were stable during the year. Demonetisation impact set the clock back in terms of growth especially in two wheeler market where demand has contracted significantly in the last quarter as liquidity remained tight affecting the disposable cash. Customers followed wait and watch policy since elections in big states were around the corner. Exports had lethargic growth.

 

Performance review:

 

The company had a growth of around 42% in moped segment against industry growth of 25% mainly due to higher share of business from the various customers. Sales growth in motor cycle has also increased slightly better than the industry growth. However, growth in scooter segment is less than market growth. The company was able to increase its market share by 1% through planned readiness for launch of BSIV products and introduction of few electronic products. The direct sales to aftermarket also scaled a steady growth of around 20%

by expanding the distributors network in North and East India markets. Exports also witnessed about 20% growth compared to last year.

 

Business outlook:

 

The measures taken by Govt during last fiscal are expected to result in positive trend in the long term. Demonetisation is expected to increase the liquidity among the public and in banking system helping to lower lending rates and lift economic activity. This will help The company to increase the sales from two wheeler market. Implementation of GST is expected to catapult GDP growth. Moderate inflation and with solid agricultural input from bumper harvests after drought last year will provide fillip. Economy is forecast to regain its momentum with GDP growth rising to 7.4% FY18 from 7.1% in last fiscal. Automotive two wheeler industry is expected to growth between 7~9% in current financial year.

 

Industry has never been more uncertain and globalisation of the market and competition from global players continue to drive the industry. Disruptive technological changes, electronic manufacturing services and continuous upgradation of emission standards offer both the opportunities and challenges. Introduction of BS VI, Electric Vehicles are on the cards. Sharing and connected vehicles will dramatically change both the types of vehicles and how they are used. More digitalisation in automotive industry gives them scope for further growth. Few existing products may be phased out in the medium term. The company is technologically well geared and ready to take up the challenges and convert into business opportunity.

 

The company is planning to focus more on new technology products such as ISG, Immobilisers, Instrument Clusters, Electronic Control Units, Electronic Fuel Injection system and Brushless Alternators in coming years. The company stands to gain from the improving economic environment and investing in technologies and delivering higher value to customers by enabling them to stay ahead of global competition.

 

The company has commercialized new business of EGR controller and Throttle Position Sensor for a Diesel Engine manufacturer for Three wheeler and small commercial vehicle application. The company plans to expand its reach in aftermarket through introducing new products like smart sensor adding cost benefit to the customer. On the cost front, The company is taking aggressive cost reduction measures like e-auction for material procurement, cost benchmarking, low cost automation, productivity improvement initiatives to make its products more competitive.

 

The company has received new business enquiries from reputed customers in USA. The company is also exploring business opportunities in Asia Pacific region which are at initial stages.

 

Kolhapur unit commenced its operations during the year.

 

 

COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:

 

The Company is a public limited company incorporated and domiciled in India and has its registered office at No. 11 and 13, Patullo Road, Chennai-600 002, Tamilnadu, India.  The shares of the Company are listed on the BSE Limited and National Stock Exchange of India Limited.

 

The Company is a leading manufacturer of Electronic Ignition Systems for auto industry with special focus on two-wheeler industry in technical collaboration with Mahle Electric Drives Japan Corporation, Japan. In addition to the support from the collaborators, the Company has a developed Research and Development centre recognised by DSIR, Govt of India. The Company has four manufacturing facilities in India and it is also exporting volumes

 

The financial statements were approved by the Board of Directors and authorized to issue on 18th May 2017.

 

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED 31ST DECEMBER, 2017

 

(INR in Million)

 

 

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

1100.100

1177.100

3454.400

 

 

b) Other Operating Income

30.400

26.700

90.400

 

Total Income from Operations (Net)

1130.500

1203.800

3544.800

2

Expenses              

 

 

 

 

a)

Cost of Materials consumed

744.200

793.000

2242.500

 

b)

Purchase of Stock-in-trade

0.000

0.000

0.000

 

c)

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

(37.500)

(5.900)

(69.200)

 

d)

Excise duty on sales

0.000

1.600

140.100

 

e)

Other manufacturing expense

600.000

43.800

154.600

 

f)

Employee benefit expenses

130.500

126.900

380.900

 

g)

Finance Costs

0.200

0.100

0.600

 

h)

Depreciation and amortization expense

15.700

14.800

44.800

 

i)

Other expenses

53.900

42.400

140.000

 

Total Expenses

967.000

1016.700

3034.300

 

 

 

 

 

3

Profit before Tax

163.500

187.100

510.500

4

Tax Expense

46.800

75.400

149.200

5

Net Profit for the period after tax

116.700

111.700

361.300

 

 

 

 

 

6

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified of profit or loss

(0.900)

(0.400)

(2.700)

 

Income tax related to items that will not be reclassified of profit or loss

0.300

0.200

6.300

 

Total Comprehensive Income

161.100

111.500

364.900

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

10.32

9.88

31.95

 

NOTE :

 

1. The operations of the Company relate to only one segment viz. Electronic products for two/three wheelers and engines.

 

2. The Government of India introduced the Goods and Services Tax (GST) with effect from 1 July 2017. Accordingly in compliance with Indian Accounting Standard (Ind AS) 18 - "Revenue", Revenue from operations from July 2017 to December 2017 is presented net of GST of Rs.6239 Lakhs. Revenue from operations of earlier periods included Excise duty which now is subsumed in GST. Revenue from operations for the nine months ended 31 December 2017 includes Excise duty up to 30 June 2017.

 

3. The above un-audited financial results and Balance Sheet have been reviewed & recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 29 January 2018.

 

4. The financial results and other financial information for the quarter and nine months ended 31 December 2016 and the year ended 31 March 2017 were reviewed by the previous auditors - M/s. Brahmayya & Co.,

 

5. The quarterly / nine months results are displayed in the corporate website www.indianippon.com 

 

6. Previous year figures have been regrouped / re-classified wherever necessary.

 

7. The Board of Directors at its meeting held on 29 January 2018 has declared an interim dividend of Rs. 6/- per share for the year 2017-18 for which the Record date has been fixed as 9 February 2018.

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

Y10407898

90284971

STATE INDUSTRIES PROMOTION CORP OF TAMILNADU LTD

28/06/1988

20/10/1993

-

10000000.0

51 52 GREMS ROADMADRASTNIN

2

Y10407881

90284954

THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LT

29/06/1987

29/07/1987

-

1500000.0

163 BACKBAY RECLAMATIONBOMBAYMHIN

3

Y10407876

90284949

THE INDUSTRIAL CREDIT AND INVESTMENT CORP OF INDIA LTD

21/03/1987

-

-

7000000.0

163 BACKBAYMUMBAIMHIN

4

Y10407858

90284931

STATE INDUSTRIES PROMPTION CORP TAMILNADU LTD

28/06/1986

27/09/1993

-

10000000.0

51 52 GRAMES ROADMADRASTNIN

5

G41138009

90285038

BANK OF BARODA

11/05/1992

-

18/03/2017

1200000.0

MOUNT ROADMADRASTNIN

6

G41138231

90284936

BANK OF BARODA

15/12/1986

27/09/1993

18/03/2017

7500000.0

CLUB HOUSE ROADMADRASTNIN

7

G41138348

90285118

BANK OF BARODA

12/12/1995

-

18/03/2017

10000000.0

MOUNT ROADMADRASTNIN

8

G41136920

90284935

BANK OF BARODA

08/12/1986

03/02/1987

18/03/2017

7500000.0

CLUB HOUSE ROADMADRASTNIN

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Sales Tax demand in appeal

0.000

0.041

Excise Duty/Service Tax

0.000

1.326

Other money for which the company is contingently liable

0.200

0.200

Total

0.200

1.567

 

 

FIXED ASSETS

 

  • Land
  • Building
  • Plant and Equipments
  • Furniture and Fixtures
  • Vehicles
  • Office Equipments

 

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 66.83

UK Pound

1

INR 93.17

Euro

1

INR 81.38

 

 

INFORMATION DETAILS

 

Information Gathered by :

TEJ

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

KJL

 

 

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)

 

 

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.