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|
MIRA INFORM REPORT
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Report No. : |
515798 |
|
Report Date : |
23.06.2018 |
IDENTIFICATION DETAILS
|
Name : |
VARROC
ENGINEERING LIMITED (w.e.f. 05.02.2018) |
|
|
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|
Formerly Known
As : |
VARROC ENGINEERING PRIVATE LIMITED |
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|
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Registered
Office : |
L-4, MIDC, Waluj, Aurangabad – 431136, Maharashtra |
|
Tel. No.: |
91-240-6653700/ 6653600 |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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|
Date of
Incorporation : |
11.05.1988 |
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|
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|
Capital
Investment / Paid-up Capital : |
INR 143.300 Million |
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|
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|
CIN No.: [Company Identification
No.] |
U28920MH1988PLC047335 |
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|
|
|
IEC No.: [Import-Export Code No.] |
0390019402 |
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|
GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACV2420J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of manufacturing of
automobile components.
[Registered Activity] |
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|
No. of Employees
: |
Information denied by the management |
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 |
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Maximum Credit Limit : |
USD 27064000 |
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Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company incorporated in the year 1988 and it is having good track records. It is engaged in manufacturing and supplying auto components. Its products include magneto, starter motors, regulators, rear view mirrors, engine valves, rubber parts, air cleaner assemblies etc. For the financial year 2017, the company has increased its revenue from operation as compared to previous year and maintained average profitability margin of 2.32%. Rating takes into consideration sound financial profile of the company marked by healthy networth base and low debt balance sheet. Further, rating also reflects from its large scale of operations and long-established relationship with its customers and improvement in the revenue profile during the year. However, these strengths are partially offset due to exposure to intensely competitive and dominated by large players in the auto segment. Trade relations are reported as fair. Business is active. Payments terms seems to be regular. In view of the aforesaid, the company can be considered for business dealings at usual trade terms and conditions. (Note- Company has set a price range of 965 rupees to 967 rupees a share for an initial public offering (IPO) that will open on June 26, according to a public notice. Issue Open: Jun 26, 2018 - Jun 28, 2018 and Listing At: BSE, NSE) |
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 (31.12.2017) |
Current Rating (01.04.2018) |
|
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 rating = AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
01.06.2018 |
|
|
|
|
Rating Agency Name |
ICRA |
|
Rating |
Short term rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk |
|
Date |
01.06.2018 |
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 23.06.2018.
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.:91-240-6653700)
Given Number is incorrect number i.e. 91-240-6648231
LOCATIONS
|
Registered / Corporate Office / Factory 1: |
L-4, MIDC, Waluj, Aurangabad – 431136, Maharashtra, India |
|
Tel. No.: |
91-240-6653700/ 6653600/ 2556227 |
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Fax No.: |
91-240-2564540 |
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E-Mail : |
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|
Website : |
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Factory 2 : |
Plot No. B-24/25, MIDC Industrial Area, Chakan, Pune – 410501,
Maharashtra, India |
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Tel. No.: |
91-213-5677633/ 40 |
|
|
|
|
Factory 3 : |
B-22 /1, Five Star, MIDC Area, Shendra, Aurangabad –
431201, Maharashtra,
India |
|
Tel. No.: |
91-240-6648336/6648332 |
|
|
|
|
Factory 4 : |
Plot No. 20 Sector 9, Integrated Industrial Area, Pantnagar, District Udhamsingh Nagar, Uttarakhand, India |
|
Tel. No.: |
91-5944-250122/121 |
DIRECTORS
AS ON 2018
|
Name : |
Mr. Tarang
Nareshchandra Jain |
|
Designation : |
Managing Director |
|
Address : |
Gut No. 41 (P),
Opposite Walmi Kanchanwadi, Aurangabad Paithan Road, Aurangabad – 431105,
Maharashtra, India |
|
Date of Birth/Age : |
21.03.1962 |
|
Qualification : |
MBA Finance |
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Date of Appointment : |
11.05.1988 |
|
PAN No.: |
AAXPJ4083B |
|
DIN No.: |
00027505 |
|
|
|
|
Name : |
Mr. Naresh Chandra |
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Designation : |
Director |
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Address : |
Bhagwati Bhavan, 31/B, M.L. Dahanukar Marg, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
11.02.1935 |
|
Qualification : |
Graduate in Economics |
|
Date of Appointment : |
11.05.1988 |
|
PAN No.: |
AACPC7536R |
|
DIN No.: |
00027696 |
|
|
|
|
Name : |
Mr. Gautam Premnath Kahndelwal |
|
Designation : |
Director |
|
Address : |
B 2, Alaknanda, 16-A, Nepean Sea Road, Mumbai – 400006, Maharashtra, India |
|
Date of Birth/Age : |
01.04.1962 |
|
Qualification : |
B.A. (Economics) |
|
Date of Appointment : |
24.03.2011 |
|
PAN No.: |
AAGPK3440E |
|
DIN No.: |
00270717 |
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|
|
|
Name : |
Mrs. Ashwani Maheshwari |
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Designation : |
Whole-time Director |
|
Address : |
3/8000, Nand Vatika, Near Kripal Ashram, Dehradoon Road, Saharanpur – 247001, Uttar Pradesh, India |
|
Date of Birth/Age : |
20.09.1968 |
|
Qualification : |
B. E. |
|
Date of Appointment : |
29.03.2016 |
|
PAN No.: |
ABXPM1656L |
|
DIN No.: |
07341295 |
|
|
|
|
Name : |
Vijaya Sampath |
|
Designation : |
Director |
|
Address : |
Flat No.403, Block -14, Heritage City, Mehrauli Gurgaon Road, Gurugram – 122002, Haryana, India |
|
Date of Appointment : |
20.07.2017 |
|
DIN No.: |
00641110 |
|
|
|
|
Name : |
Marc Szulewicz |
|
Designation : |
Director |
|
Address : |
21 Rue Du Docteur Blanche Paris 75016 France |
|
Date of Appointment : |
20.07.2017 |
|
DIN No.: |
01911768 |
|
|
|
|
Name : |
Mr. Vinish Kathuria |
|
Designation : |
Director |
|
Address : |
345 Escape, Nirvana Country, Sector 50, South City-II, Gurugram – 122018, Haryana, India |
|
Date of Appointment : |
06.02.2018 |
|
DIN No.: |
01951771 |
KEY EXECUTIVES
|
Name : |
Mr. Rakesh M Darji |
|
Designation : |
Company Secretary |
|
Address : |
C/602, Royal Complex, Jay Bhavani Road,
Kasambaug, Malad (East), Mumbai – 400097, Maharashtra, India |
|
Date of Appointment : |
29.03.2016 |
|
PAN No.: |
AFRPD7254H |
|
|
|
|
Name : |
Mr. Tharuvai Ramasubramanian Srinivasan |
|
Designation : |
Chief Financial Officer |
|
Address : |
302, Tulip Building, Regency Gardens Plot
No. 10, Sector - 6, Kharghar, Raigad – 410210, Maharashtra, India |
|
Date of Appointment : |
06.02.2018 |
|
PAN No.: |
AABPT7188F |
MAJOR SHAREHOLDERS
AS ON 31.03.2017
|
Names of Equity Shareholders |
|
No. of Shares |
|
Naresh Chandra |
|
543805 |
|
Naresh Chandra Holdings Trust (Trustee Naresh Chandra) |
|
1000000 |
|
Suman Jain |
|
154670 |
|
Suman Jain Holdings Trust (Trustee Suman Jain) |
|
1000000 |
|
Tarang Jain |
|
3529025 |
|
TJ Holdings Trust (Tarang Jain Trustee) |
|
3529025 |
|
Arjun Jain |
|
500 |
|
Dhruv Jain |
|
500 |
|
Varroc Polymers Private Limited, India |
|
852349 |
|
Omega TC Holding PTE Limited, Singapore |
|
1691713 |
|
Tata Capital Financial Services Limited, India |
|
155204 |
|
Series B - Names of Preference
Shareholders (Compulsory Convertible Preference Shares) |
|
No. of Shares |
|
Naresh Chandra |
|
136878 |
|
Tarang Jain |
|
613105 |
|
Suman Jain |
|
102376 |
|
Series C - Names of Preference Shareholders (Compulsory Convertible
Preference Shares) |
|
No. of Shares |
|
Naresh Chandra |
|
187626 |
|
Tarang Jain |
|
840418 |
|
Suman Jain |
|
140333 |
AS ON 29.08.2017
|
Equity Share
Break up |
Percentage |
|
Category |
|
|
Promoters - Individual/Hindu Undivided Family – Indian |
78.08 |
|
Promoters – Others (Subsidiary Company) |
6.92 |
|
Public/Other than promoters - Bodies corporate |
15.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of manufacturing of
automobile components.
[Registered Activity] |
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (AS ON 31.03.2017)
|
Particulars |
Unit |
Actual
Production |
|
Magneto |
Nos |
4791499 |
|
Steel forged product |
M.T. |
6881.115 |
|
Assemblies |
Nos |
16365984 |
|
Plastic moulded goods |
M.T. |
2653.282 |
|
Lamps |
Nos |
9605910 |
|
Capacitor discharge ignitions |
Nos |
3001075 |
|
Starter motor assemblies |
Nos |
2449698 |
|
Handle Bar assembly |
Nos |
804602 |
|
Dash board |
Nos |
781060 |
|
Regulator rectifier |
Nos |
3219280 |
|
Tail lamp |
Nos |
1277 |
|
Inlet Valve |
Nos |
6529473 |
|
Exhaust Valve |
Nos |
4444764 |
|
Automobile seat assembly |
Nos |
959195 |
|
Air filter |
Nos |
1439050 |
|
Crankpin |
Nos |
2254631 |
|
Mirror assembly |
Nos |
1154081 |
|
Switches |
Nos |
931057 |
|
Wiper motor assembly |
Nos |
51440 |
|
Crank Shaft |
Nos |
47927 |
|
Knuckle |
Nos |
724 |
|
Ring Gear |
Nos |
7124 |
|
Spindle |
Nos |
5561 |
|
Catalytic Convertor |
Nos |
957797 |
|
Sensor |
Nos |
15605 |
|
Electronic Control Unit |
Nos |
1116 |
|
Oil & Lubricants |
Ltr |
15600 |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Facilities : |
|
|
Financial Institutions : |
IDBI Trusteeship Services Limited, Asian Building, Ground
Floor, 17 R Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
Address : |
7th Floor, Tower A, Wing 1, Business Bay, Airport Road Yerwada, Pune – 411006, Maharashtra, India |
|
PAN No.: |
AAHFP0187A |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary Companies : |
· Varroc Polymers Private Limited, India CIN No.: U25209MH1995PTC090037 · Durovalves India Private Limited, India CIN No.: U34300MH1997PTC105518 · Varroc Exhaust Systems Private Limited, India CIN No.: U29100MH2005PTC151756 · Varroc Lighting Systems (India) Private Limited, India CIN No.: U31401PN2012PTC142539 · Varroc European Holding B.V., Netherlands · Aries Mentor Holding B.V., Netherlands · Varroc Corp Holding B.V., Netherlands · Varroc Japan Co. Limited, Japan · Varroc Elastomers Private Limited, India CIN No.: U29190MH2005PTC157474 · Industria Meccanica E Stampaggio s.p.a., Italy · Esex Forging S.R.L., Italy · TRI. O.M., S.p.A., Italy · Electromures SA, Romania · TRI.O.M., Vietnam Co. Limited, Vietnam · Varroc Lighting Systems SRO, Czech Republic · Varroc Lighting Systems S.De.R.L. De. C.V., Mexico · Varroc Lighting Systems GmBH., Germany · Varroc Lighting Systems Inc., United States · TRI.O.M. Mexico SA De . C. V., Mexico |
|
|
|
|
Joint Ventures : |
CIN No.: U29190MH2005PTC157474 |
|
|
|
|
Enterprises which are owned, or have
significant influence of or are partners with Key management personnel and
their relatives : |
|
CAPITAL STRUCTURE
AS ON 29.08.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16500000 |
Equity Shares |
INR 10/- each |
INR 165.000 Million |
|
33500000 |
Preference Shares |
INR 10/- each |
INR 335.000 Million |
|
|
Total |
|
INR 500.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12312766 |
Equity Shares |
INR 10/- each |
INR 123.128 Million |
|
2020736 |
Preference Shares |
INR 10/- each |
INR 20.207 Million |
|
|
Total |
|
INR 143.335
Million |
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
143.300 |
270.900 |
404.700 |
|
(b) Reserves &
Surplus |
9329.100 |
6732.100 |
8544.600 |
|
(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) |
9472.400 |
7003.000 |
8949.300 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
3014.700 |
4189.900 |
2104.900 |
|
(b) Deferred tax
liabilities (Net) |
4.900 |
47.800 |
295.900 |
|
(c) Other long term
liabilities |
5.200 |
47.300 |
45.100 |
|
(d) long-term provisions |
54.700 |
48.500 |
27.900 |
|
Total Non-current
Liabilities (3) |
3079.500 |
4333.500 |
2473.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1248.600 |
1803.900 |
489.500 |
|
(b) Trade payables |
2515.800 |
2431.900 |
2130.400 |
|
(c) Other current
liabilities |
1092.400 |
1722.200 |
1345.900 |
|
(d) Short-term provisions |
180.100 |
178.500 |
177.300 |
|
Total Current Liabilities
(4) |
5036.900 |
6136.500 |
4143.100 |
|
|
|
|
|
|
TOTAL |
17588.800 |
17473.000 |
15566.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7595.700 |
7168.700 |
7186.000 |
|
(ii) Intangible Assets |
46.800 |
41.300 |
38.000 |
|
(iii) Capital work-in-progress |
253.100 |
444.000 |
315.000 |
|
(iv) Intangible assets
under development |
0.200 |
6.300 |
5.700 |
|
(b) Non-current
Investments |
4647.300 |
4647.200 |
4666.700 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
406.800 |
|
(e) Other Non-current
assets |
394.800 |
554.100 |
33.500 |
|
Total Non-Current Assets |
12937.900 |
12861.600 |
12651.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
119.400 |
19.600 |
|
(b) Inventories |
1731.500 |
1638.500 |
1474.300 |
|
(c) Trade receivables |
2517.400 |
2307.300 |
565.400 |
|
(d) Cash and cash
equivalents |
31.300 |
151.500 |
184.800 |
|
(e) Short-term loans and
advances |
1.000 |
1.100 |
604.200 |
|
(f) Other current assets |
369.700 |
393.600 |
66.200 |
|
Total Current Assets |
4650.900 |
4611.400 |
2914.500 |
|
|
|
|
|
|
TOTAL |
17588.800 |
17473.000 |
15566.200 |
PROFIT
& LOSS ACCOUNT (STANDALONE)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
18120.500 |
16888.400 |
14832.700 |
|
|
Other Income |
324.500 |
172.400 |
168.500 |
|
|
TOTAL |
18445.000 |
17060.800 |
15001.200 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
10126.600 |
9566.600 |
9476.000 |
|
|
Purchases of
Stock-in-Trade |
657.600 |
649.000 |
366.800 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(67.300) |
(163.800) |
(111.900) |
|
|
Employees benefits
expense |
1431.800 |
1261.200 |
1103.000 |
|
|
CSR expenditure |
0.000 |
0.000 |
17.100 |
|
|
Exceptional items |
0.000 |
0.000 |
-42.900 |
|
|
Other expenses |
4364.900 |
4242.300 |
2515.200 |
|
|
TOTAL |
16513.600 |
15555.300 |
13323.300 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1931.400 |
1505.500 |
1677.900 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
468.500 |
(791.900) |
451.400 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1462.900 |
2297.400 |
1226.500 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
962.800 |
819.300 |
796.700 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
500.100 |
1478.100 |
429.800 |
|
|
|
|
|
|
|
Less |
TAX |
80.100 |
45.900 |
84.800 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
420.000 |
1432.200 |
345.000 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1293.600 |
1277.800 |
1037.600 |
|
|
Others |
112.600 |
114.500 |
70.700 |
|
|
TOTAL EARNINGS |
1406.200 |
1392.300 |
1108.300 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
35.66 |
136.85 |
32.96 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
566.700 |
1180.400 |
1000.600 |
|
Net cash flows from (used in) operations |
1649.000 |
(17.200) |
1712.700 |
|
Net cash flows from (used in) operating activities |
1558.300 |
(198.000) |
1612.200 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365) |
50.71 |
49.87 |
13.91 |
|
|
|
|
|
|
Account Receivables Turnover (Income /
Sunday Debtors) |
7.20 |
7.32 |
26.23 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
85.15 |
86.89 |
79.00 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.12 |
0.92 |
1.14 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.24 |
0.20 |
0.22 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.49 |
0.66 |
0.47 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.51 |
1.02 |
0.40 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.53 |
0.88 |
0.46 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.83 |
1.09 |
0.84 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
4.12 |
(1.90) |
3.72 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin [(PAT
/ Sales) * 100] |
% |
2.32 |
8.48 |
2.33 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
2.39 |
8.20 |
2.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
4.43 |
20.45 |
3.86 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.92 |
0.75 |
0.70 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.58 |
0.48 |
0.35 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.54 |
0.40 |
0.57 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
33.71 |
26.48 |
8.88 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.92 |
0.75 |
0.70 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
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 |
404.700 |
270.900 |
143.300 |
|
Reserves & Surplus |
8544.600 |
6732.100 |
9329.100 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
8949.300 |
7003.000 |
9472.400 |
|
|
|
|
|
|
Long-term borrowings |
2104.900 |
4189.900 |
3014.700 |
|
Short term borrowings |
489.500 |
1803.900 |
1248.600 |
|
Current Maturities of
Long term debt |
1000.600 |
1180.400 |
566.700 |
|
Total borrowings |
3595.000 |
7174.200 |
4830.000 |
|
Debt/Equity ratio |
0.402 |
1.024 |
0.510 |
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 |
14832.700 |
16888.400 |
18120.500 |
|
|
|
13.859 |
7.296 |
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 |
14832.700 |
16888.400 |
18120.500 |
|
Profit |
345.000 |
1432.200 |
420.000 |
|
|
2.33% |
8.48% |
2.32% |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
134.700 |
262.300 |
|
(b) Reserves &
Surplus |
|
21456.600 |
17265.500 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
(3) Minority interest |
|
201.600 |
202.800 |
|
Total Shareholders’ Funds
(1) + (2) |
|
21792.900 |
17730.600 |
|
|
|
|
|
|
(4) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
7552.700 |
7633.800 |
|
(b) Deferred tax
liabilities (Net) |
|
130.000 |
472.700 |
|
(c) Other long term
liabilities |
|
174.400 |
154.200 |
|
(d) long-term provisions |
|
740.000 |
765.400 |
|
Total Non-current
Liabilities (3) |
|
8597.100 |
9026.100 |
|
|
|
|
|
|
(5) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
5991.900 |
6418.700 |
|
(b) Trade payables |
|
15437.300 |
12690.700 |
|
(c) Other current
liabilities |
|
5865.300 |
6233.200 |
|
(d) Short-term provisions |
|
597.300 |
258.300 |
|
Total Current Liabilities
(4) |
|
27891.800 |
25600.900 |
|
|
|
|
|
|
TOTAL |
|
58281.800 |
52357.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
22512.000 |
19748.500 |
|
(ii) Intangible Assets |
|
1296.800 |
1360.400 |
|
(iii) Capital
work-in-progress |
|
2464.600 |
2636.000 |
|
(iv) Intangible assets
under development |
|
460.800 |
517.100 |
|
(b) Non-current
Investments |
|
0.200 |
0.200 |
|
(c) Deferred tax assets
(net) |
|
130.200 |
132.400 |
|
(d) Long-term Loan and Advances |
|
0.000 |
0.000 |
|
(e) Other Non-current
assets |
|
4401.300 |
4315.600 |
|
Total Non-Current Assets |
|
31265.900 |
28710.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
119.400 |
|
(b) Inventories |
|
7534.700 |
6828.900 |
|
(c) Trade receivables |
|
11382.900 |
11852.000 |
|
(d) Cash and cash
equivalents |
|
3540.600 |
1772.400 |
|
(e) Short-term loans and
advances |
|
5.900 |
11.400 |
|
(f) Other current assets |
|
4551.800 |
3063.300 |
|
Total Current Assets |
|
27015.900 |
23647.400 |
|
|
|
|
|
|
TOTAL |
|
58281.800 |
52357.600 |
PROFIT
& LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
96085.400 |
82189.000 |
|
|
Other Income |
|
669.800 |
229.300 |
|
|
TOTAL |
|
96755.200 |
82418.300 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
59731.200 |
49906.300 |
|
|
Purchases of
Stock-in-Trade |
|
987.900 |
1098.100 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(351.600) |
(511.800) |
|
|
Employees benefits expense |
|
12037.500 |
10399.300 |
|
|
Exceptional items |
|
0.000 |
(393.800) |
|
|
Other expenses |
|
17868.000 |
15607.200 |
|
|
TOTAL |
|
90273.000 |
76105.300 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE INTEREST,
TAX, DEPRECIATION AND AMORTISATION |
|
6482.200 |
6313.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
904.000 |
(426.500) |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
5578.200 |
6739.500 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
3370.800 |
2922.500 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
2207.400 |
3817.000 |
|
|
|
|
|
|
|
Less |
TAX |
|
137.200 |
495.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
2070.200 |
3321.900 |
|
|
|
|
|
|
|
Add |
Share of profit (loss) of
associates and joint ventures accounted for |
|
791.900 |
498.300 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) FOR THE PERIOD |
|
2862.100 |
3820.200 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
261.63 |
396.90 |
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 |
No |
|
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 |
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 |
GENERAL INFORMATION
The "Company" is engaged in the business of manufacturing of Automobile components. The Company has 12 manufacturing plants, 3 research and development centres, 3 wind power and 1 solar power projects in India and caters to customers both in the domestic and international markets. The Company and its subsidiaries operate from manufacturing plants and technical development centers across 3 continents and 10 countries spread across the globe.
INDUSTRY OUTLOOK AND
BUSINESS OVERVIEW
ECONOMIC AND INDUSTRIAL
OUTLOOK INDIA
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81% market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.
The auto industry has been able to grow despite challenges of ban on big diesel SUVs and cars in the National Capital region and introduction of new policy and demonetisation by the government. As for demonetisation, the impact was for only two months on the Passenger Vehicle segment and recovery was quick, but it was prolonged in the two-wheeler segment which affected its sale as expected.
During the FY 2016-17, Indian automotive industry registered an overall growth of 9.23%. During the year, the sale of Passenger vehicle in India registered a mark of three million milestone for the first time in 2016-17. The sales of Passenger vehicle was up by 3.8 %; commercial vehicle registered a modest growth by 4.16% as compared to previous year. The sales of Utility Vehicles has been very encouraging for the auto sector which witnessed an impressive growth by 29.91% as compared to previous year. This is the highest growth rate achieved by the UV segment after 2013-14. The two wheeler industry performed reasonably well during the year 2016-17 and witnessed good growth in Scooters sales by 11.39% and Motorcycles sales by 4.16%.
The implementation of GST is expected to have positive impact on the various segments of the automotive industry. Commercial vehicles sales will improve as the industry moves away from warehousing in every customer location centralized warehousing and efficient transport system. The aftermarket for us is also expected to benefit as the unorganized sector is brought into the GST net, making them compete with us on an equal footing. Urbanization will continue to drive scooter and SUV sales while tighter emission and safety norms bodes good for the premium segment players. The Indian automotive market is gearing to implement BS VI norms in 2020 and preparing to adopt electric vehicle technology as per the Automotive Mission Plan which envisions complete electrification of new vehicles by 2030.
BUSINESS OVERVIEW
The Company along with its subsidiaries and associate entities (“Varroc Group”) is a global manufacturer and supplier of automotive components headquartered in Aurangabad, India. With a Group turnover of Rs.10,216 Crores (net of excise duty) in 2016-17, Varroc Group has established itself as one of the leading auto components supplier in India and a preferred exterior lighting systems supplier in the world today. Today Varroc Group employs close to 13,500 people and operates 35 manufacturing facilities, 11 engineering centres in 10 countries across the world. Varroc Group caters to all segments of the automotive and allied markets such as two and three wheelers, passenger cars, commercial vehicles and off road segments.
Varroc Lighting Systems, (VLS), headquartered out of Detroit, U.S.A. is a leading global supplier of exterior lighting for passenger cars and has manufacturing plants located in Mexico, Czech Republic, China and India, supported by 7 engineering centres. VLS supplies advanced lighting technologies such as LED projector headlamps, Matrix headlamps, Adaptive front lighting systems, day time running lamps and innovative signature and LED rear lamps. Varroc Group also owns Triom, the leading exterior lighting supplier to two wheeled vehicles in Europe.
The domestic business in India consists of three divisions operated out of 25 plants and 4 engineering centres, spanning all three automotive hubs and caters to largely the two wheeler segment. The Group has diversified product portfolio consisting of assemblies in the areas of electrical, electronics, polymer, metallic and lighting systems.
Varroc Group will drive profitability this year in both the domestic and international markets using a strategy of differentiating itself by its intense customer relationships, product development capabilities and manufacturing excellence. It is investing heavily in R&D to grow its domestic business with customers such as Honda and Hero in the growing scooter segment, while relying on its technology and management capabilities to penetrate offer advanced passenger car lighting systems to a diverse customer base in the international market.
The Company is expecting modest growth this year as the priority remains to become more efficient in operations while establishing a compliant and robust management. The company has partnered with a leading technology provider company to develop and deliver Electronic Fuel Injections system for the two wheeler market. This will help Company gain early share in a market which will be disrupted by the stringent BS VI emission norms to be implemented in 2020. The company is preparing to invest in electronics and software capabilities to develop next generation electronic clusters and security systems, both of which are requested by a leading OEM. The Company is on lookout for good acquisition opportunities for the purpose of preparing for the electrification drive by the industry to meet the Automotive Mission plan 2030.
UNSECURED LOANS:
|
PARTICULAR |
31.03.2017 INR In Million |
31.03.2016 INR In Million |
|
Long-term
Borrowings |
|
|
|
Deferred sales tax loan |
127.700 |
176.500 |
|
Liability component of compound financial instruments |
0.000 |
2060.400 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
Term loans from others |
380.000 |
400.000 |
|
Commercial paper |
739.700 |
0.000 |
|
Working capital loans from banks |
0.000 |
320.000 |
|
Total |
1247.400 |
2956.900 |
INDEX OF CHARGE:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Amount |
Address |
|
1 |
G47205240 |
100106995 |
IDBI TRUSTEESHIP SERVICES LIMITED |
26/05/2017 |
- |
800000000.0 |
Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India |
|
2 |
G37644309 |
100081419 |
Axis Bank Limited |
10/02/2017 |
- |
1125000000.0 |
2nd Floor, Red Fort Capital Parsvanath Tower, Bhai Veer Singh Marg, Gole Market, New Delhi-110001, India |
|
3 |
G11753167 |
100049715 |
KOTAK MAHINDRA BANK LIMITED |
12/09/2016 |
- |
500000000.0 |
27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India |
|
4 |
G11754926 |
100049717 |
KOTAK MAHINDRA BANK LIMITED |
12/09/2016 |
- |
500000000.0 |
27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India |
|
5 |
G04951455 |
100030596 |
Citi Bank N.A. |
12/05/2016 |
- |
150000000.0 |
124, Jeevan Bharati Building, 3rd Floor, Connaught Circus, New Delhi-111001, India |
|
6 |
G02531606 |
100023745 |
Citi Bank N.A. |
05/04/2016 |
- |
500000000.0 |
124, Jeevan Bharati Building, 3rd Floor, Connaught Circus, New Delhi-111001, India |
|
7 |
G01197631 |
100018555 |
Citi Bank N.A. |
04/03/2016 |
- |
500000000.0 |
124, Jeevan Bharati Building, 3rd Floor, Connaught Circus, New Delhi-111001, India |
|
8 |
C61597340 |
10585772 |
BAJAJ FINANCE LIMITED |
12/08/2015 |
- |
500000000.0 |
Akurdi, Pune-411035 Maharashtra, India |
|
9 |
B62023601 |
10386278 |
Standard Chartered Bank |
23/10/2012 |
- |
500000000.0 |
Narain Manzil, 23 Barakhamba Road, Delhi – 110035, India |
|
10 |
G46985883 |
10366515 |
ICICI BANK LTD. ACTING THROUGH ITS BAHARAIN BRANCH |
23/07/2012 |
11/06/2017 |
578200000.0 |
Suite 15, Part 3, Municipality No.116, Building No. 114, Government Avenue, Manama 431136, Baharain |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Claims against company not acknowledged as debt |
263.400 |
79.700 |
|
Total |
263.400 |
79.700 |
FIXED ASSETS:
Tangible Asset:
- Land
- Building
- Plant and equipment
- Furniture and Fixture
- Computer
- Office equipment
- Vehicles
Intangible Asset:
· Computer software
PRESS RELEASE / WEBSITE DETAILS
VARROC ENGINEERING $288
MILLION IPO TO OPEN ON JUNE 26
(Reuters) - Auto parts manufacturer Varroc Engineering Ltd has set a price range of 965 rupees to 967 rupees a share for an initial public offering (IPO) that will open on June 26, according to a public notice on Tuesday.
At the upper end of the range, the IPO will raise about 19.55 billion rupees ($287.46 million), the notice added.
The IPO comprises sale offer of up to 1.8 million shares by promoter Tarang Jain, about 16.900 million shares by Omega TC Holdings Pte Ltd and up to 1.6 million shares by Tata Capital Financial Services Ltd.
Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities (India) are global co-ordinators and bookrunners for the offer, which closes on June 28.
VARROC ENGINEERING
PLANS TO LAUNCH IPO
Varroc Engineering,
an auto components firm backed by Tata Opportunities Fund, is said to have
appointed Kotak Mahindra Capital and Credit Suisse to manage the IPO
Date: Jan 08 2018
Mumbai: Tata Opportunities Fund-backed auto components maker Varroc Engineering Ltd plans to go public and has hired investment banks to advise it on the share sale, said two people aware of the development.
Founded in 1990, Aurangabad-based Varroc supplies exterior lighting systems, power trains, electrical and electronic parts, and body and chassis parts to passenger car and motorcycle makers in India and abroad.
“Varroc had been in talks for an initial public offering (IPO) for a while and they have appointed investment banks Kotak Mahindra Capital and Credit Suisse to manage their initial share sale. They plan to soon file their draft red herring prospectus with an eye on going public sometime this year,” said one of the two people cited above, requesting anonymity as he is not authorized to speak to the media.
According to the second person, the proposed IPO could be a mix of a primary fund raising and a secondary share sale.
“Tata Opportunities Fund is likely to sell part of its stake through the IPO, while the company will look to raise funds to invest in the business. The exact quantum of these are yet to be finalized,” he said. He too requested anonymity.
Tata Opportunities Fund invested Rs300 crore in Varroc in 2014. It holds a significant minority stake in the company.
Credit Suisse declined to comment on the development. An email sent to Kotak Mahindra Capital did not elicit any response. “The company is not in a position to comment on the queries,” said a spokesperson for Varroc Engineering in an email response to queries from Mint.
The Varroc group has 37 manufacturing facilities, 12 engineering centres, 13,500 employees and 760 engineering experts in 10 countries, according to the company’s website. Varroc claims to be the number one two-wheeler automotive component supplier in India.
According to the company’s filings with the registrar of companies (RoC), Varroc had consolidated revenue of INR 83725.000 million in the financial year 2015-16, up from INR 70218.000 million in the previous year. In 2015-16, Varroc earned a consolidated profit of INR 2455.000 million, down from a profit of INR 3038.000 million in the previous year.
Varroc derives almost 39% of its revenue from the North American market, while India and Europe contribute around 30% and 23% respectively, data from the company’s filings show.
Varroc’s plans to go public follow a record year of fund-raising. In 2017, 36 companies raised INR 671470.000 million through the IPO route, while in 2016, 26 companies raised INR 26493.8.000 million through IPOs. Varroc is not the only auto component maker that is planning to tap the buoyant IPO market.
Last month, auto component manufacturer Sandhar Technologies Ltd filed its draft papers with market regulator Securities and Exchange Board of India (Sebi) to raise INR 3000.000 million through an IPO. Apart from a fresh issue of equity shares worth INR 3000.00 million, the public offering comprises of an offer for sale of 8 million shares by private equity firm GTI Capital.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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 67.77 |
|
|
1 |
INR 89.96 |
|
Euro |
1 |
INR 78.86 |
INFORMATION DETAILS
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Information
Gathered by : |
KAM |
|
|
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Analysis Done by
: |
PRS |
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|
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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 |
NO |
|
--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
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Company
background and operations size
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Payment
record
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Litigation
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Industry
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Supplier
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