MIRA
INFORM REPORT
|
Report Date : |
31.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
BHARAT
SEATS LIMITED |
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Registered Office : |
D –
188, Okhla Industrial Area, Phase – 1, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.03.1986 |
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Com. Reg. No.: |
55-23540 |
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CIN No.: [Company
Identification No.] |
L34300DL1986PLC023540 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB01261B |
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Legal Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers
of Car Seats Assemblies, Carpets for Automobiles and Motorcycle Seats. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD
850000 |
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Status : |
Good |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having fine track. Financial position of the company is good. The company is doing well. Its payments are usually correct and as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. It can
be regarded as a promising business partner in a medium to long – run. |
LOCATIONS
|
Registered Office : |
D – 188,
Okhla Industrial Area, Phase – 1, New Delhi – 110020, India |
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Tel. No.: |
91-11-26811958
/ 26811968 |
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Factory
: |
Joint
Venture Plot No. 1, Maruti Udyog Limited Complex, Palam – Gurgaon Road,
Gurgaon – 122015, Haryana, India |
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Tel.
No.: |
91-124-2341258/2341087 |
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Fax
No.: |
91-124-2341188 |
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E-Mail
: |
seats@vsnl.net |
DIRECTORS
|
Name : |
Mr. N.
D. Relan |
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Designation : |
Chairman |
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Name : |
Mr.
Hirofumi Nagao |
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Designation : |
Director
[Nominee – Suzuki Motor Corporation] |
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Name : |
Mr. I.
V. Rao |
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Designation : |
Director
[Nominee – Maruti Udyog Limited] |
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Name : |
Mr.
Rohit Relan |
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Designation : |
Managing
Director |
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Name : |
Mr.
Ajay Relan |
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Designation : |
Director
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Name
: |
Mr. P.
K. Lahiri |
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Designation
: |
Director
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Name
: |
Mr. G.
N. Mehra |
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Designation
: |
Director
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MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Public |
675270 |
21.51 |
|
Promoters &
Associate Companies:- - Indian - Foreign |
1860800 465000 |
59.26 14.81 |
|
Indian Companies |
129374 |
4.12 |
|
Mutual Funds |
4600 |
0.15 |
|
NRIs |
4956 |
0.15 |
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TOTAL |
138930 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Car Seats Assemblies, Carpets for Automobiles and Motorcycle Seats. |
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Products : |
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PRODUCTION
STATUS
|
Particulars |
Installed Capacity [Sets Per Annum] |
Actual Production [Nos.] |
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Car Seats Assembly |
500000 |
234649 |
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Carpets for
Automobiles |
200000 |
60151 |
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Motorcycle Seats |
500000 |
3147 |
GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
State Bank of Travancore The Bank of Tokyo – Mitsubishi UFJ Limited IDBI Bank Limited |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
S. S.
Kothari Mehta & Company Chartered
Accountants, New
Delhi |
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Associates : |
Maruti Udyog Limited Suzuki Motor Corporation, Japan Sharda Motor Industries Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3140000 |
Equity
Shares |
Rs. 10/- each |
Rs. 31.400 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
31.400 |
31.400 |
31.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
187.208 |
171.997 |
158.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
218.608 |
203.397 |
189.700 |
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LOAN FUNDS |
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1] Secured Loans |
80.183 |
140.260 |
91.400 |
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2] Unsecured Loans |
11.986 |
8.591 |
0.000 |
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TOTAL BORROWING |
92.169 |
148.851 |
91.400 |
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DEFERRED TAX LIABILITIES |
1.355 |
0.837 |
0.000 |
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TOTAL |
312.132 |
353.085 |
281.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
160.704 |
130.057 |
143.500 |
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Capital work-in-progress |
0.000 |
30.996 |
0.000 |
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INVESTMENT |
105.500 |
134.552 |
96.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
26.424 |
23.539 |
17.700 |
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Sundry Debtors |
74.093 |
58.768 |
36.700 |
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Cash & Bank Balances |
4.611 |
5.760 |
7.200 |
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Other Current Assets |
5.765 |
3.763 |
0.000 |
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Loans & Advances |
55.222 |
60.924 |
92.900 |
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Total Current Assets |
166.115 |
152.754 |
154.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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|
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Current Liabilities |
105.387 |
79.953 |
85.500 |
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Provisions |
14.800 |
15.321 |
27.400 |
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Total Current Liabilities |
120.187 |
95.274 |
112.900 |
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Net Current Assets |
45.928 |
57.480 |
41.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
312.132 |
353.085 |
281.100 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other
income] |
1455.734 |
1410.840 |
1397.500 |
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|
|
|
|
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Profit/(Loss)
Before Tax |
34.468 |
26.746 |
41.200 |
|
Provision
for Taxation |
|
|
9.800 |
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Profit/(Loss)
After Tax |
25.952 |
24.449 |
31.400 |
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|
|
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Import
Value |
225.128 |
222.281 |
N.A. |
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Total
Expenditure |
1381.534 |
1341.406 |
1356.300 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
|
Sales Turnover |
|
370.100 |
463.000 |
|
Other Income |
|
2.400 |
2.400 |
|
Total Income |
|
372.500 |
465.400 |
|
Total Expenditure |
|
356.800 |
447.400 |
|
Operating Profit |
|
15.700 |
18.000 |
|
Interest |
|
1.400 |
2.500 |
|
Gross Profit |
|
14.300 |
15.500 |
|
Depreciation |
|
6.500 |
6.600 |
|
Tax |
|
3.200 |
[0.800] |
|
Reported PAT |
|
4.800 |
8.300 |
Notes
2006-06 Quarter 1
Expenditure Includes
(Increase)/Decrease in Stock Rs (0.788) million Consumption of Raw Material / Goods
Traded Rs 322.114 million Staff Cost Rs 11.195 million Other Expenditure Rs
24.355 million Tax Includes Provision for Current year Tax Rs 2.786 million
Deferred Tax expense/Deferred tax income Rs (0.190)million Fringe Benefit Tax
Rs 0.364 million EPS is Basic & Diluted Status of the Investors Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints received during the quarter Nil Complaints disposed off
during the quarter Nil Complaints unsolved at the end of the quarter Nil 1. The
above figures were taken on record by the Board in its meeting held on July 13,
2006. 2. The Sales figures are subject to finalization of Prices with the
Customer (M.U.L.) 3. The Results do not include year end Provisions &
adjustments. 4. The Previous year figures have been regrouped &
reclassified wherever necessary.
2006-09 Quarter 2
EPS is Basic &
Diluted Status of the Investors Complaints for the quarter ended September 30,
2006 Complaints Pending at the beginning of the quarter Nil Complaints received
during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unsolved at the end of the quarter Nil 1. The above figures were
taken on record by the Board in its meeting held on October 16, 2006. 2. The
Sales figures are subject to finalization of Prices with the Customer (M.U.L.)
3. The Results do not include year end Provisions & adjustments. 4. The
Previous year figures have been regrouped & reclassified wherever
necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.57 |
0.61 |
0.60 |
|
Long
Term Debt Equity Ratio |
0.23 |
0.29 |
0.38 |
|
Current
Ratio |
0.90 |
0.93 |
1.15 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.20 |
4.52 |
4.08 |
|
Inventory
|
67.82 |
80.38 |
67.39 |
|
Debtors |
25.46 |
34.68 |
34.03 |
|
Interest
Cover Ratio |
5.14 |
13.53 |
10.13 |
|
Operating
Profit Margin (%) |
3.59 |
5.15 |
5.63 |
|
Profit
Before Interest and Tax Margin (%) |
1.55 |
2.78 |
2.83 |
|
Cash Profit
Margin (%) |
2.95 |
4.44 |
4.73 |
|
Adjusted
Net Profit Margin (%) |
0.91 |
2.07 |
1.92 |
|
Return
on Capital Employed (%) |
7.90 |
14.52 |
13.44 |
|
Return
on Net Worth (%) |
7.30 |
17.45 |
14.61 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.[0.01] |
|
Low |
Rs.[0.01] |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
:
Bharat Seats (BSL) a joint venture between Maruti Udyog (MUL) and
Indian entrepreneurs, was promoted by the Relan family with MUL and Suzuki to manufacture
car seats. Technical assistance is provided by Houwa Kogyo Company, Japan, the
principal supplier of seats to Suzuki Motors Company, Japan. It was having its
manufacturing facility at Gurgaon in Haryana.
BSL, which is the pioneer in car seat manufacture in the organised sector, has
incorporated many design and raw material improvements in its products to cater
to the comfort and safety aspects of driving. With the launch of the Zen model,
it has also gone ahead with the use of ficon free material as per EEC
regulations.
Bharat Seats, which came out with a public issue in 1988 to set up its
manufacturing facilities, is the only ancillary unit of MUL to meet the
latter's requirement of seat sets for cars, the Gypsy, the Omni and the Zen.
With the help of Houwa Kogyo Company Limited as a Technical Collaborator the
company has developed Seat Sets locally for Maruti's latest Vehicle Car-Alto.
The directors are
happy to state that during the financial year under report, the company
achieved the highest ever turnover. The company's turnover (net of excise)
increased by Rs. 52.616 millions, from Rs. 1382.503 millions to Rs. 1435.119
millions, i.e. an increase by 3.81%. The gross turnover increased by 36.252
millions, from Rs. 1655.892 millions to Rs. 1692.144, i.e. an increase by
2.19%. The main contributors in the growth in turnover has been growth in sales
volumes of Maruti Udyog Limited. During the year, the company started supplying
molded carpets for Alto model to Maruti and achieved a gross turnover of Rs.
24.594 millions.
PRODUCT UPGRADATION/ NEW PRODUCT INTRODUCTION/
QUALITY IMPROVEMENT
During the year under
report, the company has started supplying molded carpets for Alto model to
Maruti Udyog Limited (MUL).
The company has been selected
for supply of two wheeler seats for models of Suzuki Motor Cycle India
(Private) Limited (SMIPL) and has already developed and started supply of two
wheeler seats to SMIPL. The Testing Laboratory, which has been certified by
internationally recognized certifying authority, NABL (National Accreditation
Board for Testing and Calibration Laboratories) last year, is being further
upgraded by addition of Abrasion Tester for Carpets and fabrics, Vibration
Tester for Seats and Components and Environment Chamber for weather ability
tests for all components.
Fixed
Assets
Land,
Building, Electrical Fittings, Plant, Machinery & Equipment, Furniture,
Fixture & Office Equipment and Vehicles.
Bharat Seats Limited (BSL)
is a company producing seating system for the leading Automobile
manufacturer in India. It occupies a pre-eminent position in the field of the
automobile seating systems. The Company was established in 1986. >From then
on it Has been on onward march towards success.
The company has
benefited as a joint venture
between the very best in the field – Suzuki
Motor Corporation of Japan which stand tall among their Counterparts in
the automobile sector in India, Maruti
Udyog Limited which has been instrumental in the phenomenal development
of the automobile industry in the country and the Relan Group of India, which is pioneer in its own field.
Technical guidance has
been provided by Houwa Kogyo Company
Limited a leading producer of hi-tech seating system for the automobile
industry in Japan, and the main suppliers to Suzuki Motor Corporation.
The success story of
BSL rests on sound principles of management. Proven Japanese management
theories have been beneficially adapted to the Indian environment. Kaizen and
teamwork are the foundation on which this edifice is built. Under the just in
time concept, the delivery schedule is so worked out that the seating units are
delivered to the assembly lines of Maruti Udyog Limited on JIT basis.
Perceiving seating
comfort to be a fusion of ergonomic design, comfort and flexibility to adjust
to various anatomies, the goal of Bharat Seats Limited was to provide for an
efficient but comfortable seating pattern which would reduced the fatigue
factor and increase comfort. The technology employed and the equipment utilized
by Bharat Seats, is in keeping with their motto of excellence- "it is top
of the line" enabling Bharat Seats to live up to the exacting standards
set by Maruti Udyog which are comparable to the best in the world.
The factory in Gurgaon
houses Polyurethane Moulding, Seat Frame Manufacture, Final Seat Assembly and
Head Rest Moulding & Assembly. With an in-house development cell supported
through inputs from Maruti Udyog Limited, Suzuki Motor Corporation and Houwa
Kogyo Company Limited, Bharat Seats Limited concentrates on working towards
quality up-gradation and has set itself a goal for achieving excellence.
To maintain quality it
is essential that appropriate systems be introduced. To achieve and accede to
customer requirements of quality, BSL has already received the ISO 9002 and QS 9000 revised version quality systems certification.
Mr. Rohit Relan, their
Managing Director with a vision of seeing Bharat Seats Limited as a premier
seat manufacturing institution, visualized the importance of quality as an
in-outfaced in every aspect of its activities, went ahead to embark on a
journey of excellence through the introduction of TPM.
Bharat Seats has set
up a manufacturing unit for PU Headrests within its existing plant with a
capacity to produce 0.400 million sets per annum. The commercial production of
Headrest commenced in May 1999, producing Headrests of international standards
of quality, leading to better utilization of existing manpower. BSL is also
venturing into the area of car interiors. They are committed to ecology and
environment. BSL had phased out the use of CFC-11(Cholorofluorocarbons), used
as a foam-blowing agent for polyol formation in the manufacturing of moulded
Puf cushions. BSL is an ISO 140001 certified company. Their employees are their
assets, and they invest in them through continuous training in India and
abroad.
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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.83 |
|
UK
Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.21 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|