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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

496731

Report Date :

10.03.2018

 

 

 

 

IDENTIFICATION DETAILS

 

Name :

STEEL STRIPS WHEELS LIMITED               

 

 

Registered Office :

Village Somalheri/Lehli, P.O. Dappar, Teshil Derabassi, District S.A.S. Nagar, Mohali – 140506, Punjab

Tel. No.:

91-1762-275173

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

28.02.1985

 

 

Com. Reg. No.:

16-006159

 

 

Capital Investment / Paid-up Capital :

INR 155.335 Million

 

 

CIN No.:

[Company Identification No.]

L27107PB1985PLC006159

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

The Company is primarily engaged in the manufacturing business of steel wheel rims catering to different segment of automobile industry. (Registered activity)

 

 

No. of Employees :

2105 (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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject was incorporated in the year 1985. It is a manufacturer of steel wheel rims catering to different segment of automobile industry.

 

As per the financial records of 2017, the company has achieved 12.67% growth in its revenue as compared to the previous year revenue and has gained profitability margin of 5.33%.

 

The company possesses healthy financial position marked by sound net worth base along with comfortable debt level and satisfactory liquidity position.

 

The rating takes into consideration, company’s strong market position in the auto sector in the steel wheels segment and it has well-established relationship with original equipment manufacturers (OEMs) in the segment.

 

The rating strength is partially offset by the company large amount of capital expenditure require for setting up an alloy wheels plant in Mehsana, Gujarat which will temporary deteriorate the credit profile.

 

Rating takes into consideration the company’s favourable Earnings Per Share (EPS) of INR 45.900 against its Face Value of INR 10.

 

The company has its share price trading at around INR 1010 on BSE as on March 9, 2018 against the Face Value of INR 10.

 

Business is active. Payment seems to be regular.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List

 

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

INDIA RATING

Rating

Long Term Loans = A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

05.01.2018

 

Rating Agency Name

INDIA RATING

Rating

Short Term Loans = A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

05.01.2018

 

 

 

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 31-03-2016.

 

 

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 10.03.2018

 

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.: 91-11-40000378

 

Tel. No.: 91-1762-275173 / 91-172-2792385 / 2793112 / 2790979 – Continuously ringing

 

Tel. No.: 91-172-2790970 – Not Exists

 

 

LOCATIONS

 

Registered Office / Factory 1 :

Village Somalheri/Lehli, P.O. Dappar, Teshil Derabassi, District S.A.S. Nagar, Mohali – 140506, Punjab, India

Tel. No.:

91-1762-275173

Fax No.:

91-1762-275228 / 172-2794834

E-Mail :

admin@sswlindia.com

ssl_ssg@glide.net.in

shamanjindal@sswlindia.com

Website :

http://www.sswlindia.com

 

 

Delhi Office:

S-2, Second Floor, Vasant Square Mall, Community Center, Pocket V, Plot No. A, Sector B, Vasant Kunj, New Delhi – 110070, India

Tel. No.:

91-11-40000378 / 377 / 376

 

 

Head Office :

S.C.O.49-50, Sector – 26, Madhya Marg, Chandigarh – 160019, Punjab, India

Tel. No.:

91-172-2790979/ 2792385/ 2793112

Fax No.:

91-172-2794834/ 2790887

E-Mail :

info@sswlindia.com

 

 

Factory 2 :

Plot No. A-10, Sipcot Industrial Growth Centre, Oragadam, Vallam Village, Sriperumbudur Taluka, District – Kandhipuram, Tamil Nadu – 602105, India

 

Factory 3 :

Plot No. 733, 734, 735, 747 Moja, Jojobera, P.O. Chhota, Govindpur, Jamshedpur, District East  Singhbhum – 831015, Jharkhand, India

 

Factory 4 :

Plot No. 77, 78, 136B, 394, Village – Martoli/Tejapura, Taluka – Jotana, District – Mehsana, Gujarat, India

E-Mail :

admin.mehsana@sswlindia.com

 

 

Factory 5 :

Village – Muria, P. O – Kolabira Thana No. -150, District Seraikela – Kharsawan, Jharkhand, India

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Sukhbir Singh Grewal

Designation :

Director

Address :

286, Sector – 10, Chandigarh – 160010, Punjab, India

Date of Birth/Age :

83 Years

Qualification :

B.A

Date of Appointment :

30.03.1993

DIN No.:

00031001

 

 

Name :

Mr. Manohar Lal Jain

Designation :

Director

Address :

1057, Sector – 4, Panchkula - 134109, Haryana, India

Date of Birth/Age :

62 years

Qualification :

FCS, FCA.

Expertise :

He is associated with the Group for a period of more than three decades. He has vast experience in Finance, legal and taxation

Date of Appointment :

01.08.2013

DIN No.:

00034591

 

 

Name :

Rajender Kumar Garg

Designation :

Director

Address :

89, Sector – 7, Panchkula – 134109, Haryana, India

Date of Appointment :

28.02.1985

DIN No.:

00034827

 

 

Name :

Mr. Dheeraj Garg

Designation :

Managing Director

Address :

House No.22, Sector – 5, Chandigarh – 160005, Punjab, India

Date of Birth/Age :

44 Years

Qualification :

B.S (Finance)

Date of Appointment :

29.04.1993

DIN No.:

00034926

 

 

Name :

Mr. Madan Mohan Chopra

Designation :

Director

Address :

E-69, Vasant Marg, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

83 Years

Qualification :

B.A (Hons), LLB and MBA

Date of Appointment :

28.11.1994

DIN No.:

00036367

 

 

Name :

Surinder Kumar Bansal

Designation :

Director

Address :

D-7, Maharani Bagh, New Delhi – 110065, India

Date of Birth/Age :

70 Years

Qualification :

Chartered Accountant (CA)

Date of Appointment :

22.08.2005

DIN No.:

00165583

 

 

Name :

Mr. Jaspreet Takhar

Designation :

Director

Address :

2561 Sector 35c Chandigarh – 160023, Punjab, India

Date of Birth/Age :

58 years

Qualification :

Master of Architect

Expertise :

She has been actively involved in teaching and research in architecture.

Date of Appointment :

30.03.2015

DIN No.:

00318883

 

 

Name :

Mr. Sudhanshu Shekhar Jha

Designation :

Director

Address :

H.No.2, Kendriya Vihar Society, Sector 48, Chandigarh – 160047, Punjab, India

Date of Birth/Age :

73 years

Qualification :

M.SC. Physics M. Phil (Social Science) M.D.P. (Pub. Admn)

Date of Appointment :

22.08.2005

DIN No.:

01489603

 

 

Name :

Mr. Chanakya Chaudhary

Designation :

Director

Address :

717, Mahavir Prasad Block, Asian Games Village, New Delhi – 110049, India

Date of Appointment :

05.11.2014

DIN No.:

02139568

 

 

Name :

Mr. Andra Veetil Unnikrishman

Designation :

Director

Address :

House No. 2004,First Floor, Sector - 47 C, Chandigarh – 160047, Punjab, India

Date of Birth/Age :

61 Years

Qualification :

B.A

Date of Appointment :

01.01.2009

DIN No.:

02498195

 

 

KEY EXECUTIVES

 

Name :

Mr. Naveen Sorot

Designation :

Chief Financial Officer (KMP)

Address :

6380 B, Rajeev Vihar, Manimajra, Chandigarh – 160102, Punjab, India

Date of Appointment :

30.05.2014

PAN No.:

CANPS8804H

 

 

Name :

Mr. Shaman Jindal

Designation :

Company Secretary

Address :

House No 2893, W.No-12, Near Pathran Wala, Kuan Kharar – 140301, Punjab, India

Date of Appointment :

01.12.2006

PAN No.:

AFLPJ3224K

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

(A) Promoter & Promoter Group

2768775

33.43

(B) Public

5514328

66.57

Grand Total

8283103

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

 

Individuals/Hindu undivided Family

5015561

32.24

 

Dheeraj Garg

4640228

29.83

 

R K Garg

292571

1.88

 

Priya Garg

79262

0.51

 

Sunena Garg

3500

0.02

 

Any Other (specify)

3949215

25.39

 

Sab Industries Limited

1324187

8.51

 

SAB Udyog Limited

1142582

7.34

 

Chandigarh Developers Private Limited

569132

3.66

 

DHG Marketing Private Limited

501094

3.22

 

Malwa Chemtex Udyog Limited

385000

2.47

 

Steel Strips Financiers Private Limited

20000

0.13

 

Munak International Private Limited

2250

0.01

 

S.S.Credits Private Limited

1600

0.01

 

S J Mercantile Private Limited.

1250

0.01

 

Steel strips Leasing Limited

500

0.00

 

Malwa Holdings Private Limited

400

0.00

 

MunakInvestments Private Limited

400

0.00

 

Munak Financiers Private Limited

400

0.00

 

Steel Strips Limited

300

0.00

 

Steel Strips Holdings Private Limited

120

0.00

 

Sub Total A1

8964776

57.63

 

A2) Foreign

0.00

 

A=A1+A2

8964776

57.63

 

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

 

Mutual Funds/

298213

1.92

 

Aditya Birla Sun Life Trustee Private Limited A/c

287463

1.85

 

Foreign Portfolio Investors

29574

0.19

 

Financial Institutions/ Banks

57117

0.37

 

Sub Total B1

384904

2.47

 

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

1751564

11.26

 

Individual share capital in excess of INR 0.200 Million

255552

1.64

 

Any Other (specify)

4199474

27.00

 

Trusts

1000

0.01

 

HUF

60684

0.39

 

Bodies Corporate

3847749

24.73

 

Sumitomo Metal Industries Limited

850000

5.46

 

Kalink Co. Limited

209525

1.35

 

Tata Steel Limited

1086972

6.99

 

Priya Tools Private Limited

526874

3.39

 

SCM Fintrade Private Limited

487691

3.14

 

Bloomen Flora Limited

484316

3.11

 

NRI – Non- Repat

30333

0.19

 

NRI – Repat

62995

0.40

 

Clearing Members

31150

0.20

 

Investor Education and Protection Fund Authority

165563

1.06

 

Sub Total B3

6206590

39.90

 

B=B1+B2+B3

6591494

42.37

 

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is primarily engaged in the manufacturing business of steel wheel rims catering to different segment of automobile industry. (Registered activity)

 

 

Products :

Item Code No.

Product Description

29301

Manufacture of Steel Wheel Rims (Auto Parts and Equipment Industry)

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

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 :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

2105 (Approximately)

 

 

Bankers :
  • AXIS Bank Limited
  • Bank of Baroda
  • DBS Bank
  • DEG, Germany
  • Export Import Bank of India
  • Federal Bank
  • HDFC Bank
  • ICICI Bank Limited.
  • Punjab National Bank
  • State Bank of India
  • Tata Capital Financial Services
  • United Bank of India
  • Yes Bank

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Loans from Banks:

 

 

Rupee Term Loans

2015.841

829.065

Foreign Currency Term Loan

1751.528

808.092

From NBFC

33.765

78.743

Vehicle Loan From Banks

3.673

0.000

 

 

 

Short-term borrowings

 

 

Loan repayable on demand:

 

 

Rupee demand Loans from Banks

2804.580

2188.368

Loan against Fixed Deposits

548.681

700.082

Foreign Currency Loan:

 

 

Buyers Credit loan for Raw Material from Banks

222.107

83.765

 

 

 

Total

7380.175

4688.115

Note:

 

Long-term Borrowings

 

Nature of Securities

 

a) Rupee Term Loans/ Foreign Currency Term Loan/ NBFC

 

Term Loans from banks, nancial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company's immovable properties for Dappar (In Punjab), Oragadam (In Chennai) and Seraikella (In Jharkhand) in addition to the deed of hypothecation charging Company's moveable properties, both present and future and second charge created / to be created on raw materials, semi-nished goods, consumable stores, nished goods and book debts etc on paripassu basis. However in regard to loan taken from HDFC Bank for Mehsana (Gujarat) project, the said loan will be secured (rst charge) through equitable mortgage by deposit of title deeds of the Company's immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties, movable properties and current assets situated at Dappar (In Punjab), Oragadam (In Chennai) unit, and Seraikella (In Jharkhand). All secured loans are further secured by personal guarantee of Chairman and Director and/ or Managing Director of the Company.

 

b) Vehicle loans are secured against the Hypothecation of vehicle to lender

 

Short-term borrowings

 

Nature of Securities

 

Loan payable on Demand

1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, nished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the Company. 2nd pari-passu charge on entire moveable assets forming part of xed/block assets of the Company both present and future situated at Village Dappar, Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand)

 

Foreign Currency Loan

 

Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company. All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.

 

Auditors :

 

Name :

S.C. Dewan and Company

Chartered Accountants

Address :

SCO 90, 1st Floor, Swastik Vihar, Panchkula, Haryana, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises over which key management personnel (KMP) are able to exercise signicant control
  • SAB Industries Limited
  • SAB Udyog Limited
  • Malwa Chemtex Udyog Limited.
  • Steel Strips Financial Private Limited
  • Munak International Private Limited
  • S.S. Credits Private Limited
  • S.J. Mercantile Private Limited 
  • Earlier known as S.A. Holding Private Limited),
  • Malwa Holdings Private Limited
  • Munak Investment Private Limited
  • Steel Strips Holding Private Limited
  • Chandigarh Developers Private Limited
  • DHG Marketing Private Limited
  • Steel Strips Infrastructure Limited
  • Munak financiers Private Limited
  • Steel Strips Limited
  • Steel Strips Industries Limited (Earlier Known as Steel Strips Leasing Limited).

 

 

CAPITAL STRUCTURE

 

After 28.09.2017

 

Authorised Capital : INR 364.000 Million

 

Issued, Subscribed & Paid-up Capital : INR 155.563 Million

 

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

19000000

Equity Shares

INR 10/- each

INR 190.000 Million

1200000

Preference shares

INR 145/- each

INR 174.000 Million

 

 

 

INR 364.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15533520

Equity Shares

INR 10/- each

INR 155.335 Million

 

 

 

 

 

The reconciliation of number of shares outstanding is set out below :

 

Equity Shares

Number of Shares

Shares outstanding at the beginning of the year

15259170

Add: Shares issued

274,350

Less : Shares Cancelled

--

Equity Shares at the end of the year

15259170

 

The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

 

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

The details of Shareholders holding more than 5% shares.

 

Name of Shareholder

March 31st, 2017

Name of Shareholder

Number of Shares

% holding

Dheeraj Garg

4640228

30.41

Sab Industries Limited

1324187

8.68

Sab Udyog Limited

1142582

7.49

Tata Steel Limited

1086972

7.00

Sumitomo Metal Industries Limited

850000

5.57

Total

9112853

59.72

 

Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital

 

As on 31st March 2017, 35175 (Previous Year 100,000), Employee Stock Options were outstanding under the "Steel Strips wheels Limited Employee Stock Option Scheme 2014" of the Company. Each option would entitle the holder thereof to subscribe one equity share of INR 10/- each at an exercise price of INR 100/- per share of the company.

 

During the year 2016-17, Shareholders of the Company , in their Annual General Meeting held on 30.09.2016, authorized the Company to create, offer, issue and grant, in one or more tranches, upto 1,00,000 options to the employees of the Company under "Steel Strips Wheels Limited-Employee Stock Option Scheme,2016 ("ESOS 2016").Each option would entitle the holder thereof to subscribe one equity shares of INR 10/- each at an exercise price of INR 200/- per share of the Company. The said options are yet to be granted till 31st march 2017.

 

Steel S trips Wheels Limited , Employee Stock Option Scheme 2014

 

The Company has established an Employee Stock Option Scheme (ESOS) as" Steel Strips Wheels Limited Employee Stock Option Scheme 2014(ESOS 2014)" in accordance with the Securities and Exchange Board of India (Share Based Employee Benets) Regulations, 2014 which was approved by the board of Directors and subsequently by shareholders of the Company in their Extra ordinary General meeting dated 27.02.2015. The Company had granted 1,50,000 options to employees. The exercise price was INR100 per share. Date of grant was 02.03.2015 and vesting period was one year from the date of grant. Exercise period for the option was within 4 years from the date of grant of the options. However during the nancial year 2015-16, 50,000 options were forfeited under this "ESOS 2014" and 64825 options have been exercised by the option holders and consequently equivalent number of shares have been issued in 2016-17. As on 31st March 2017, 35,175 Employee Stock Option were outstanding under "ESOS 2014".

 

Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)

 

During the year 2016-17, shareholders of the company, in their Annual General Meeting held on 30.09.2016, authorized the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company under “Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 ("ESOS 2016"). Each option would entitle the holder thereof to subscribe one equity share of INR 10/- each at an exercise price of INR 200/- per share of the company. All the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options or such other shorter period as may be decided by the ECC from time to time. The said options are not yet granted till 31st March, 2017.

 

The Number and Weighted average exercise price of Stock Options are as follows:

 

Particulars

ESOS 2014

Year Ended 31st March 2017

Options

Weighted average Exercise Price

 

Number

Amount

Outstanding at the Beginning of the year

100000

100

Granted Options

0

0

Forfeited during the year

Nil

Nil

Exercised during the year

64825

100

Expired during the year

Nil

Nil

Outstanding at the end of year

35175

100

Exercisable at the end of the year

35175

100

Weighted average share price in respect of options exercised during the year

--

578.57

Weighted average remaining contractual life (in years)

4 years(w.e.f. from 02.03.2015)

4 years(w.e.f. from 02.03.2015)

 

Under ESOS 2016, the Compny has not yet granted any option to the eligible employees of the company as on 31st March, 2017

 

3. Impact of Fair Valuation Method on Net Prot under EPS

In March 2005, the Institute of Chartered Accountants of India has issued a guidance note on " Accounting for Employees Share based payments" applicable to Employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance notes requires the Pro-forma Disclosers of the impact of fair value method of accounting of Employee Stock Compensation accounting in the nancial statements. Applying the fair value based method dened in the said guidance note the impact on the reported net prot and earning per share would be as follows:

 

 

Particulars

for the Year ended 31st March 2017

Profit as Reported

7,103.56

Add: Employee Stock Compensation under Intrinsic Value Method

--

Less: Employee Stock Compensation under Fair Value Method

--

Pro-forma Profit

7,103.56

Earning per share:

Basic

In INR

- As Reported

45.90

- As Proforma

45.90

Diluted

 

- As Reported

45.81

- As Proforma

45.81

 

Weighted Average fair value of options granted during the year is NIL. (Previous year NIL) per option.

 

No Shares out of the issued, subscribed and paid up Share Capital were allotted as Bonus Shares in the last ve years by capitalization of Securities Premium Reserves

 

No Shares out of the issued, subscribed and paid up Share Capital were allotted in the last ve years pursuant to the various scheme of amalgamation without payment being received in cash.

 

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

155.335

152.592

152.592

(b) Reserves & Surplus

5258.197

4438.050

3834.299

(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)

5413.532

4590.642

3986.891

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

4897.783

2754.616

2851.823

(b) Deferred tax liabilities (Net)

439.704

398.273

255.790

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

105.809

84.907

66.723

Total Non-current Liabilities (3)

5443.296

3237.796

3174.336

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3947.658

3217.613

2751.083

(b) Trade payables

1491.512

1274.386

1213.475

(c) Other current liabilities

1000.603

926.883

801.862

(d) Short-term provisions

28.872

40.821

70.595

Total Current Liabilities (4)

6468.645

5459.703

4837.015

 

 

 

 

TOTAL

17325.473

13288.141

11998.242

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

7448.213

7045.053

5417.198

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

3523.584

516.844

1512.122

(iv) Intangible assets under development

0.000

0.000

29.734

(b) Non-current Investments

2.141

1.682

3.025

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

302.964

311.949

112.763

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

11276.902

7875.528

7074.842

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1770.357

1482.351

1380.399

(c) Trade receivables

2045.518

1691.876

1638.091

(d) Cash and cash equivalents

1207.294

1218.007

1000.906

(e) Short-term loans and advances

984.993

991.324

871.361

(f) Other current assets

40.409

29.055

32.643

Total Current Assets

6048.571

5412.613

4923.400

 

 

 

 

TOTAL

17325.473

13288.141

11998.242

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

13316.645

11818.881

11528.163

 

Other Income

193.960

188.366

206.020

 

TOTAL

13510.605

12007.247

11734.183

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

7994.294

6972.488

7543.135

 

Purchases of Stock-in-Trade

0.000

0.000

0.000

 

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

(18.726)

40.968

(69.443)

 

Employees benefits expense

1183.085

1034.982

871.237

 

Exceptional Items:

 

 

 

 

Prior Period Income

(11.677)

(0.563)

(0.022

 

Prior Period Expenses

0.352

0.388

0.223

 

Other expenses

2516.078

2317.522

2107.300

 

TOTAL

11663.406

10365.785

10452.430

 

 

 

 

 

 

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

1847.199

1641.462

1281.753

 

 

 

 

 

Less

FINANCIAL EXPENSES

417.084

430.351

413.518

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1430.115

1211.111

868.235

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

479.017

420.611

381.511

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

951.098

790.500

486.724

 

 

 

 

 

Less

TAX

240.742

178.688

92.682

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

710.356

611.812

394.042

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

870.051

680.746

565.711

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

611.812

394.043

243.3

 

Dividend

23.300

22.889

30.519

 

Divided Distribution Tax on Interim dividend

4.743

5.575

5.188

 

Total

639.855

422.507

279.007

 

 

 

 

 

 

Balance Carried to the B/S

940.552

870.051

680.746

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1265.279

1450.366

1542.036

 

TOTAL EARNINGS

1265.279

1450.366

1542.036

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

45.90

40.09

25.89

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

742.175

553.443

531.217

Cash generated from operations

1329.435

982.824

1583.515

Net cash flow from operating activity

1130.124

946.619

1516.806

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1ST Quarter

2nd Quarter

3rd Quarter

Net Sales

3507.090

3779.260

3974.430

Total Expenditure

3042.870

3284.530

3496.940

PBIDT (Excl OI)

464.220

494.730

477.490

Other Income

15.470

32.450

14.740

Operating Profit

479.690

527.180

492.230

Interest

144.260

171.750

127.150

Exceptional Items

NA

NA

NA

PBDT

335.430

355.430

365.090

Depreciation

120.970

123.170

135.610

Profit Before Tax

214.460

232.260

229.480

Tax

50.380

50.530

48.320

Provisions and contingencies

NA

NA

NA

Profit After Tax

164.080

181.730

164.080

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

164.080

181.730

164.080

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

56.07

52.25

51.86

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

6.51

6.99

7.04

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

68.10

66.71

58.72

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.04

1.11

0.93

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.17

0.22

0.18

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.70

0.66

0.69

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

1.77

1.42

1.54

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.19

1.19

1.21

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

2.03

1.65

1.75

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

4.43

3.81

3.10

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

5.33

5.18

3.42

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

4.10

4.60

3.28

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

13.12

13.33

9.88

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.94

0.99

1.02

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.66

0.72

0.73

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.31

0.35

0.33

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

61.72

42.77

40.20

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.94

0.99

1.02

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

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

Market Value

INR 1010.00/-

 

 

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

152.592

152.592

155.335

Reserves & Surplus

3834.299

4438.050

5258.197

Share Application money pending allotment

0.000

0.000

0.000

Net worth

3986.891

4590.642

5413.532

 

 

 

 

Long Term borrowings

2851.823

2754.616

4897.783

Short Term borrowings

2751.083

3217.613

3947.658

Current Maturities of Long term debt

531.217

553.443

742.175

Total borrowings

6134.123

6525.672

9587.616

Debt/Equity ratio

1.539

1.422

1.771

 

 

 

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

11528.163

11818.881

13316.645

 

 

2.522

12.673

 

 

 

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

11528.163

11818.881

13316.645

Profit

394.042

611.812

710.356

 

3.42%

5.18%

5.33%

 

 

 

 

LEGAL CASES

 

High Court of Punjab and Haryana Chandigarh

Case                       Case Details For Case CRM-12094-1998 Case CRM-12094-1998

Diary Number

0

District

OTHER-DISTRICT

Category

38.1-QUASHING PETITIONS I/O

Main Case Detail

--

Party Detail

M/S FARIDABAD FORGINGS PVT.LTD V/S M/S STEEL STRIPS LTD.

Advocate Name

K.S.DHILLON

List Type

ORDINARY

Status

PENDING

Next date

Not Available

 

Case Listing Details

No Listing Data Available

Judgment Details For Case: CRM-12094-1998 
Party Detail: M/S FARIDABAD FORGINGS PVT.LTD V/S M/S STEEL STRIPS LTD.

Order Date

Order Type

Bench

Judgment Link

No Judgment/Order Found.

Designed and Developed by National Informatics Centre

Contents Published and Managed by Punjab & Haryana High Court, Chandigarh.

 

 

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

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

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

CORPORATE INFORMATION

 

Steel Strips Wheels Limited (the Company) is a public limited Company registered in India under the Companies Act 2013 (Erstwhile Companies Act 1956). Its Shares are listed on both BSE Limited and National Stock Exchange of India Limited. The Company is a leading manufacturer of Automotive Wheel rims.

 

 

FINANCIAL PERFORMANCE

 

The Gross Income for the year increased by 12.15% to INR 15013.380 million as compared to INR 13386.350 million in FY 2015-16. In terms of Number of wheels, the Company has achieved sale of 14.20 million wheels rims during FY 2016-17 against sale of 13.17 million wheels rims during the previous year, showing an increase of 7.82 %. The Company expects to see higher growth in the coming years.

 

The Earnings Before Interest, Depreciation and Tax (EBIDTA) increased to INR1835.870 million in FY 2016-17 from INR 1641.290 million in 2015-16, registering a growth of 11.86 %.

 

The Depreciation and other amortization have increased to INR 479.02 million in FY 2016-17 from INR 420.61million in FY 2015-16.

 

Profit before tax during the year has increased to INR 951.10 million from INR 790.500 million in FY 2015-16 recording a growth of 20.32%.The profit after tax have also increased to INR 710.350 million from INR 611.810 million, showing a growth of 16.11%.

 

 

MANAGEMENT DISCUSSION & ANALYSIS

 

Economic growth of around 7½% makes India the fastest-growing G20 economy. The acceleration of structural reforms, the move towards a rule-based policy framework and low commodity prices have provided a strong growth impetus. Recent deregulation measures and efforts to improve the ease of doing business have boosted foreign investment. A comprehensive tax reform would promote inclusive growth. Timely and effective implementation of the Goods and Services Tax would support competitiveness, investment and economic growth. Government's plans to reduce the corporate income tax rate and broaden the base will serve the same objectives. These two on-going reforms have been designed to be revenue-neutral while India needs to raise additional tax revenue to meet social and physical infrastructure needs. Property and personal income taxes, which are paid by very few people, could be reformed to raise more revenue, promote social justice and empower subnational governments to better respond to local needs. Ensuring clarity and certainty in tax legislation and employing more skilled tax officers would strengthen the tax administration and make the system fairer and more effective.

 

The main driving forces for growth in FY18 are listed below:

- Increased government spending in infrastructure

- Pick up in private investment

- Good monsoon

- Expected surge in consumer spending with pent up demand being satiated

- The Goods and Services Tax (GST)

 

The economic outlook of the Indian economy looks positive with the country expected to grow at more than 7.5% in FY18 before moving past the 8% trajectory in FY19. Certain threats, however, prevail in terms of upside risk to inflation, increasing global commodity prices especially crude oil prices, slower growth in investment and credit, rising bad loans issue and uncertain trade prospects with appreciating rupee and uncertain global economic conditions. Globally, protectionism adopted by the US and higher interest rates by the Fed, revival in European countries and higher growth in China causing diversion of funds from India could counter the prospective growth story of the country, going ahead. Bypassing the risk of slowdown post-demonetization, the Indian economy is estimated to grow at 7.1% in FY17 according to the CSO. This number would be met in our view if there is no revision in the growth number for 9M-FY17 put out by the CSO at around 7% as Q4 growth would be in the same range. However, this growth rate would still be lower compared with the impressive 7.9% growth recorded in FY16. The GDP growth of FY17 is expected to be supported by the agriculture growth of 4.4% vis-à-vis 0.8% growth in FY16 and capped by estimated subdued growth in industry (5.8% as against 8.2% in FY16) and services (7.9% compared to 9.8% growth in FY16)

 

Auto Industry and Segment Analysis

 

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1% of the country's Gross Domestic Product (GDP). The Two Wheelers segment (2W) with 81% market share is the leader of the Indian Automobile market owing to a growing middle class and 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% market share.

 

In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

 

The Indian auto industry is expected to be the world's third largest by 2018 behind China and the US and will account for more than 5% of global vehicle sales as per global research. It is also expected to become the fourth largest automobiles producer globally by 2020 after China, US and Japan (India is currently world's second largest two-wheeler manufacturer)

 

The automobile industry plays a significant role as it has employed 9 million people and includes approximately 5% of world's total employment in manufacturing unit. Production of world’s automobile industry has spread across three major regions that includes North America, Europe and Asia. World's automobile Industry has undergone major restructuring and India has become a leading player along with nations like China, South Korea, beside the giant Japan.

 

Policy Initiatives

 

  • The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route. Some of the major initiatives taken by the Government of India are:

 

  • The Government of India plans to introduce a new Green Urban Transport Scheme with a central assistance of about Rs 25,000 crore (US$ 3.75 billion), aimed at boosting the growth of urban transport along low carbon path for substantial reduction in pollution, and providing a framework for funding urban mobility projects at National, State and City level with minimum recourse to budgetary support by encouraging innovative nancing of projects.

 

  • Government of India aims to make automobiles manufacturing the main driver of 'Make in India' initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.

 

  • The Government plans to promote eco-friendly cars in the country i.e. CNG based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent ethanol blending in petrol.

 

  • The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the

 

  • National Electric Mobility Mission 2020 to encourage the progressive induction of reliable, affordable and efcient electric and hybrid vehicles in the country.

 

SECTORAL OUTLOOK

 

Passenger Vehicle Segment:

 

The year has begun with heavy reform in FY 16-17 and a factor of GST implementation in the country. The policy framework makes the system efficient and brings in productivity led gains for the country. The GST implementation has the potential to generate huge employment opportunity among the field of finance and can generate multi layered growth scenario for the country and increasing visibility of car OEMs will ensure the depth of markets are being explored and AUTO majors are putting best foot forward to target. They expect auto industry's to consolidate further in FY 17-18 and they expect the volume growth to pick up meaningfully in FY17 backed by a) decline in ownership cost (fuel price drop and interest cost reduction), b) benign inflations) pick-up in economic activities and d) big thrust on infrastructure investment. They estimate these factors to drive domestic passenger vehicle and commercial vehicle volume CAGR of 14% and 19% over the next three years.

 

Commercial Vehicle Segment:

 

They expect M&HCV (goods) volume and tonnage CAGR of 15% over the next three years due to infrastructure spending push, better freighter profitability, GST-led warehousing rejig, pick-up in construction trucks demand (coal/bauxite mining and RMC trucks), obsolescence of old trucks due to rising entry restrictions in major cities and customer-driven switch to younger feet. They also expect buses volume CAGR of 15% on renewed focus on urban transportation by entire country. Current shift to higher tonnage vehicle and fast replacement demand is expected to continue and is driven by poor operating economics of old trucks and lower tonnage vehicle. Replacement demand is also aided by the restriction imposed by large customers and enforcement of entry norms in New Delhi (population of 60k trucks) on vehicle age to improve the supply chain efficiency and city's air quality respectively.

 

Tractor Segment

 

Top eight states of India contributing 75% of the domestic tractor volume is down by >25% since the last seven months cumulatively, impacted by hail storm, deficient monsoon in 2014 and lower farm profitability on agri commodity price drop. Since all these uncertain events bunched up in FY 2015 and impacted industry tractor volume. Early signs of normal monsoon will most likely to revive the demand from 2HFY17. Further, revival of non-farm usage segment and replacement cycle (purchased in FY08-10) is likely to bring volume back with a vengeance in FY18. They expect 10% tractor segment CAGR for all the players for coming 3 three years.

 

Export Outlook

 

India's exports grew at its fastest pace in ve years by 4.7% to $274.65 billion during the nancial year 2016-17, despite the demonetization drive that slowed domestic economic activity since November. In March, exports grew a whopping 27.6% to $29.23 billion after clocking a 17.5% jump in February. Shipment of petroleum products jumped 69% while engineering goods were up 47%. Imports grew even faster at 45.3% to $39.67 billion in March as crude oil imports doubled while gold imports grew a eye-popping 329%. Exports last grew at a brisk pace of 21.8% in 2011-12, but shipments were down in three out of four years till 2015-16.If they believe the pace of March 2017, the exports may reach at $ 330-360Billion. They expect the Indian export competitiveness to improve with a lot of international manufacturers setting up India as a manufacturing hub and India will gain popularity amongst global manufacturing leads to make a space for itself.

 

During the last fiscal year, automotive manufacturers in India cumulatively shipped out 7,58, 830 cars to various international markets. This figure marks a year-on-year growth rate of 16%, as compared to the corresponding figure of 6,53,053 units shipped in FY 2015-16. Motorcycle exports, however, declined in 2016-17 at 20,25,529 units as against 22,10,615 units in 2015-16, down 8.37 percent.

 

The company achieved a volume of 13.94 lacs wheels in FY 16-17 as against a volume of 15.13 lacs wheels in FY 15-16. The main driver for contraction was the impact of Russian currency on export competitiveness. The company is focusing in major EU markets to gain hold of this part of the world to target sustainable 10% growth model. They are expecting the alloy wheel exports to give push to the export revenue and the same will start from H2 for in FY 17-18. The export order book is firmly in place with close to 30% booking of the capacity. They are extremely confident that FY 17-18, the export segment will turnaround the contraction phase. The new commercial wheel plant will also give a lot of thrust to the segment where the company was not present due to capacity constraints. The FY 17-18 will be at in terms of exports and they are expecting 17-20% revenue growth in exports segment from FY 18-19 being guided by Alloy and commercial wheel segment.

 

 

FINANCIAL ANALYSIS

 

Gross revenues stood at INR 15013.380 million in FY 2016-17 as compared to INR 13386.350 million in FY 2015-16. The company performed in line with industry standards and they are expecting the growth in revenue to be on track for 15-20% growth. The volume growth for the company stood life high and they are expecting this trend to continue and the 2 new plants add a lot of performance muscle for the company. They are expecting great advantage with the new plants to make in roads to global locations. The Prot after Tax for FY 2016-17 stood at is INR 710.350 million as compared to INR611.81 million this trend is expected to continue with addition of newer platforms to the company.

 

PERFORMANCE ANALYSIS

 

In FY 16-17, the automobile industry stabilized itself from the policy changes of demonetization and handled the policy changes bravely to end the year in growth. Various segment of automobile industry had to witness wild swings due to policy changes but the industry took shorter than expected time period to revive from demonetization impact of broad automobile sector.

 

The passenger car segment for the industry grew at 10% in FY 16-17 on the back of record new variants coming into market to grab the market share. The industry saw some blips during demonetization and grew smartly after the impact got absorbed in a quarter and is going is strong since then. SSWL grew 6% in car segment with growth lagging the industry factor due to transformation into alloy wheels and SSWL is not geared up to cater to both segments to maintain high single digit volume growth.

 

The commercial vehicle segment grew slowly at 3% pace due to the major change of BS III to BS IV changeover which had major changes in production plans of all the large automotive players. The industry is going through transition and it will take 1-2 quarter to get back on rails to catch up the replacement demand of the industry. SSWL grew 5.3% for the segment and they expect a lot of out performance in this segment due to a lot of development coming to mass production and getting converted into volumes there by giving a push to market share of the company.

 

The 3 wheeler industry faced severe competition from E rickshaw, which is extremely unorganized and unregulated. The sector de-grew by 16%. They expect this trend to continue but the rate of slowdown may decelerate as base has fallen to lower levels. This has opened up opportunities for us for catering to E-Rickshaw players gain volume access.

 

The 2 wheeler industry grew at close to 5% as base is increasing and the user base is also saturating and now replacement demand will also cater growth at mid single digit rates. SSWL grew by 7% there by outperforming the industry with greater penetration into individual customer. SSWL is trying to add 2 major customers to the portfolio in FY 17-18 to give push to the growth factor in this segment.

 

The tractor industry grew at 18% in FY 16-17 with a push from normal rainfalls push the acreage sowing and government push for infrastructure pushing the alternate use of the tractor. SSWL grew at 30% during the year there by outperforming the industry by grabbing better market share. They are expecting 2 more orders from existing customers to reinforce larger market share in FY 17-18. The consistent performance is giving SSWL an edge to grab larger market share.

 

Domestic Sales Forecast for FY 2017-2018 by SIAM

 

The Society of Indian Automotive Manufacturers (SIAM) forecast a 7 to 9% growth for the domestic passenger vehicle sales in the financial year 2017-18, expecting support from 7th pay commission payout and better rabi output. The normal monsoon will ensure steady rural income supporting the 2&3 wheeler segment. In the two-wheeler segment, SIAM expects motorcycles sales to grow moderately in 2017-18 with demand in economy and executive sub-segments likely to revive gradually once the cash situation improves. The overall commercial vehicle segment is expected to grow by 4-6% while that of three-wheeler sales is likely to post a low single digit growth. Overall, while ease in borrowing cost, remonetisation and much improvement in general sentiment are positives for 2017-18.The key concerns are increasing commodity prices, high vehicle finance rates and ad-hoc changes in policy environment that could affect profitability of OEMs

 

As the company is moving forward in this year with 2 new plants to capture Alloy wheel and higher share of business in commercial wheel segment. The situation is ripe for capturing growing opportunity and SSWL will be able to take full advantage of technical expertise to penetrate more and successfully prove our strength in both the segments. As a strategy the company has decided to go aggressively toward export territories for its Alloy and commercial wheel segment they are extremely hopeful that they put minimum 40-50% utilization in first year of mass production in the month of March 2018 run rate.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Buyer Credit for Capital Goods - Long Term

115.596

48.593

Payables for Capital Goods - Long Term

977.380

990.123

 

 

 

Short-term borrowings

 

 

From Banks - Loan against Bills Receivables

372.290

195.398

From Others - NBFC

0.000

50.000

 

 

 

Total

1465.266

1284.114

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G75694414

100151566

ICICI BANK LIMITED

14/12/2017

-

-

1070000000.0

ICICI Bank Tower, Near Chakli Circle,Old Padra RoadVadodaraGu390007IN

2

G67483206

100136277

YES BANK LIMITED

10/11/2017

-

-

500000000.0

9th Floor, Nehru Centre, Discovery of India,Dr. A. B. Road, WorliMumbaiMH400018IN

3

G68936541

100137774

YES BANK LIMITED

10/11/2017

-

-

1250000000.0

9th Floor, Nehru Centre, Discovery of India,Dr. A. B. Road, WorliMumbaiMH400018IN

4

G72300437

100143448

Federal Bank

27/09/2017

-

-

500000000.0

SCO 139-140Sector- 8 C,ChandigarhCH160009IN

5

G58447251

100129583

Axis Bank Limited

26/09/2017

-

-

1260000000.0

SCO 343-344Sector 35-BChandigarhCH160035IN

6

G56236722

100127352

HDFC BANK LIMITED

18/08/2017

-

-

180000000.0

HDFC Bank House Senapati Bapat Marg,Lower Parel WestMumbaiMH400013IN

7

G56190796

100127297

HDFC BANK LIMITED

18/08/2017

-

-

70000000.0

HDFC Bank House Senapati Bapat Marg,Lower Parel WestMumbaiMH400013IN

8

G59878389

100113757

HDFC BANK LIMITED

20/07/2017

19/09/2017

-

1100000000.0

HDFC Bank House Senapati Bapat Marg,Lower Parel WestMumbaiMH400013IN

9

G52432127

100120604

Federal Bank

07/06/2017

-

-

300000000.0

SCO 139-140Sector- 8 C,ChandigarhCH160009IN

10

G48610745

100110328

HDFC BANK LIMITED

29/05/2017

-

-

285000000.0

HDFC Bank HouseSenapati Bapat Marg, Lower Parel (west)MumbaiMH400013IN

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2017

 

        

 

 

Particulars

quarter ended

quarter ended

Nine months ended

 

 

 

31.12.2017

30.09.2017

31.12.2017

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

3974.426

3779.255

11260.775

 

 

b) Other Operating Income

14.741

32.451

62.661

 

Total Income from Operations (Net)

3989.167

3811.706

11323.436

2

Expenses

 

 

 

 

a)

Cost of Materials consumed

2632.178

2365.450

6827.217

 

b)

Purchase of Stock-in-trade

--

--

--

 

c)

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

(181.413)

(58.439)

(346.144)

 

d)

Excise Duty Expenses

--

--

389.667

 

e)

Employee benefit expenses

368.638

342.574

1008.721

 

f)

Finance Costs

127.150

171.747

443.159

 

g)

Depreciation and amortization expense

135.609

123.165

379.747

 

h)

Other expenses

677.530

634.946

1943.998

 

i)

Prior Period Items

--

--

0.874

 

Total Expenses

3759.692

3579.443

10647.239

 

 

 

 

 

7

Profit /(Loss) from ordinary activities after finance costs but before exceptional items

229.475

232.262

676.197

8

Exceptional Items

--

--

--

9

Profit /(Loss) from ordinary activities before tax

229.475

232.262

676.197

10

Tax Expense:

 

 

 

 

Current Tax

41.219

44.801

131.789

 

Deferred Tax

7.100

5.734

17.445

11

Net Profit /(Loss) from ordinary activities after tax

181.156

181.727

526.963

 

Other Comprehensive Income

9.653

(11.919)

(9.282)

 

Total Other Comprehensive Income for the period

190.809

169.808

517.681

 

 

 

 

 

12

Paid up equity share capital (Eq. shares of  INR 10/- each)

1555.63

1555.63

1555.63

13

Reserve excluding revaluation reserves

 

 

 

14

 

Earnings per share (before/after extraordinary items) of  Rs.10/- each

 

 

 

 

 

Basic & Diluted

11.65

11.68

33.88

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Letter of Credit /Bank of Guarantee Outstanding for Import / Purchase of Raw materials , Spares and Plant and Machinery

173.879

333.507

 

 

FIXED ASSETS

 

Tangible Assets

 

  • Land
  • Building
  • Plant and Equipments
  • Plant and Equipments- General
  • Plant and equipments - Rand
  • Die Toolings - New Products R&D
  • Die Toolings –general
  • Furniture and Fixture
  • Motor Vehicle
  • Office Equipments
  • Data Processing Equipments

 

 

Intangible Assets

 

  • Packages and Software
  • Drawing and Copyrights

 

 

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 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 64.92

UK Pound

1

INR 90.22

Euro

1

INR 80.54

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVT

 

 

Analysis Done by :

NYT

 

 

Report Prepared by :

SUJ

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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.