MIRA INFORM REPORT

 

 

Report Date :

06.08.2007

 

IDENTIFICATION DETAILS

 

Name :

SUZUKI POWERTRAIN INDIA LIMITED

 

 

Registered Office :

11th Floor, Jeevan Prakash, 25, Kasturba Gandhi Marg, New Delhi – 110001, India 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

14.11.2002

 

 

Com. Reg. No.:

55-117679

 

 

CIN No.:

[Company Identification No.]

U27109DL2002PLC117679

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELS20077B

 

 

PAN No.:

[Permanent Account No.]

AAGCS7346J

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Automobile Diesel Engines, Transmissions and other components.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD4000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having fine track. Directors are reported as experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trader terms and conditions. 

 

 

LOCATIONS

 

Registered Office /

For Institutional Investor:

Maruti Udyog Limited

11th Floor, Jeevan Prakash Building, 25, Kasturba Gandhi Marg, New Delhi – 110001, India

Tel. No.:

91-11-23326727 / 23316831 Extension -304

Fax No.:

91-11-23318754

E-Mail

anand.praksh@spil.co.in

Website:

http://www.maruti.com

 

 

For Retail Investors:

Mr. Anil Rustgi

Tel. No.:

G M (Legal) and Company Secretary, Maruti Udyog Limited

11th Floor, Jeevan Prakash Building, 25, Kasturba Gandhi Marg, New Delhi – 110001, India

Fax No.:

91-11-23712854 / 23316831 Extension - 323

E-Mail :

Anil.rustgi@maruti.com

 

 

Branch Office :

Plot No. 1, Phase 3A, IMT Manesar, Gurgaon – 122051, Haryana, India

 

 

DIRECTORS

 

Name :

Mr. Tadashi Kitano

Designation :

Whole Time director

Address :

G-5/1 DLF City Phase-I, Gurgaon, Haryana.

Date of Birth/Age :

29.09.1959

Date of Appointment :

14.11.2002

 

 

Name :

Mr. Vipin Dang

Designation :

Whole time director

Address :

E-1/F DDA Flats Munikra, New Delhi – 110067

Date of Birth/Age :

05.03.1960

Date of Appointment :

14.11.2002

 

 

Name :

Mr. Motohiro Atsumi

Designation :

Director

Address :

Room No. 507, Hotel Ashok, Chankya Puri, New Delhi – 110021

Date of Birth/Age :

24.08.1949

Date of Appointment :

31.01.2005

 

 

Name :

Mr. Hajime Kamiya

Designation :

Director

Address :

Room no 209, Hotel Ashok, Chankya Puri, New Delhi – 110021

Date of Birth/Age :

24.08.1949

Date of Appointment :

10.05.2003

Date of Ceasing:

31.01.2005

 

 

Name :

Mr. Shinichi Takeuchi

Designation :

Director

Address :

Room No 545, Hotel Ashok, Chankya Puri, New Delhi – 110021

Date of Birth/Age :

16.02.1948

Date of Appointment :

14.11.2002

Date of Appointment :

27.07.2005

 

 

Name :

Mr. O Suzuki

Designation :

Director

Address :

3-90-18, Shijinizuka-cho, Hamamatsu, Shizuoka, Japan

Date of Birth/Age :

30.06.1930

Date of Appointment :

27.07.2005

 

 

Name :

Mr. Shinzo Nakanishi

Designation :

Director

Address :

59-3, Saiwai 2 Chome, Hamamatsu, shizuoka, Japaan

Date of Birth/Age :

14.09.1947

Date of Appointment :

27.07.2005

 

 

Name :

Mr. T Kobayashi

Designation :

Director

Address :

85-4, Yasumatsu-Cho, Hamamatsu, Shizuoka, Japan

Date of Birth/Age :

30.05.1941

Date of Appointment :

27.07.2005

 

 

Name :

Mr. Junzo Sugimori

Designation :

Director

Address :

1864-1, Tomitsuka-cho, Hamamatsu, Shizuoka, Japan

Date of Birth/Age :

11.10.1941

Date of Appointment :

27.07.2005

 

 

Name :

Mr. Shigeaki Hamada

Designation :

Managing Director

Address :

3876-152, Tomitsuka-cho, Hamamatsu, Shizuoka, Japan

Date of Birth/Age :

18.03.1947

Date of Appointment :

27.07.2005

 

KEY EXECUTIVES

 

Name :

Mr. Deepak Raj Jain

Designation :

Company Secretary

Address :

C-96, Mianwali Colony, Gurgaon, Haryana

Date of Birth/Age:

28.06.1971

 

 

Name :

Mr. Rajeev Kumar Choubey

Designation :

Company Secretary

Address :

B-403, Jansatta Apartments, Sector-9, Vasundhra, shibabd, Ghaziabad – 210012, Uttar Pradesh, India

Date of Birth/Age:

04.06.1972

Date of Appointment :

22.03.2006

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Suzuki Motor Corporation

35699995

51.00

Maruti Udyog Limited

34300000

49.00

Mr shinchi Takeuchi

1

0.00

Mr MotohroAtsumi

1

0.00

Mr Shinzo Nakanishi

1

0.00

Mr Hajime Kamiya

1

0.00

Mr Hirofumi nagao

1

0.00

Total

70000000

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Automobile Diesel Engines, Transmissions and other components.

 

 

GENERAL INFORMATION

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V Sankar Aiyar and Company

Chartered Accountants

Address :

Satyam Cinema Complex, Ranjit Nagar, Community Centre, New Delhi - 110008

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

25,40,00,000

Equity Shares

Rs 10/- each

Rs 2540.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

7,00,00,000

Equity Shares

Rs 10/- each

Rs 700.000 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

700.000

340.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

343.626

164.154

4] (Accumulated Losses)

 

----

----

NETWORTH

 

1043.626

504.154

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

9077.786

534.763

TOTAL BORROWING

 

9077.786

534.763

DEFERRED TAX LIABILITIES

 

81.600

101.369

 

 

 

 

DEFERRED CREDIT FOR CAPITAL GOODS

 

225.222

326.513

 

 

 

 

TOTAL

 

10428.234

1466.799

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

1402.292

1042.099

Capital work-in-progress

 

3802.452

112.483

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Inventories
 

68.939

43.311

Sundry Debtors
 

120.511

50.079

Cash & Bank Balances
 

5087.079

272.532

Other Current Assets
 

16.129

0.161

Loans & Advances
 

366.663

64.179

Total Current Assets
 

5659.321

430.262

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

Current Liabilities
 

749.422

96.703

Provisions
 

168.683

23.833

Total Current Liabilities
 

918.105

120.536

Net Current Assets
 

4741.216

309.726

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.688

 

 

 

 

Preoperative Expenses Pending Allocation

 

482.274

1.803

 

 

 

 

TOTAL

 

10428.234

1466.799

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover [including other income]

 

1831.056

1296.934

 

 

 

 

Profit/(Loss) Before Tax

 

264.792

290.081

Provision for Taxation

 

85.321

124.800

Profit/(Loss) After Tax

 

179.471

165.281

 

 

 

 

Export Value

 

1.232

N.A.

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

9.80

12.74

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

14.46

22.36

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

3.74

19.70

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.25

0.57

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

9.57

1.29

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.19

1.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

100 acres Okayed for Maruti Joint Venture in Haryana

 

The Haryana Investment Promotion Board has granted approval to Suzuki Power Train India Limited, a new company floated by MUL for manufacturing automobile diesel engines, transmissions and other components with an investment of over Rs 22180.000 Million. This company will utilize 30 acres of land.

The Board also granted approval to Maruti Suzuki Automobile India Limited; another company incorporated by Maruti Udyog for car assembly with a total investment of Rs 26769.000 Millions.

The Board also approved the leasing of 100 acres of land to Maruti Suzuki joint venture vendors. Permission was also granted for utilization of land by subsidiaries of Maruti Suzuki. — PTI

PRESS RELEASE

 

MUL board clears Rs. 32720 Millions investment plans

 

By Our Special Correspondent

 

NEW DELHI, APRIL 6. Maruti Udyog Ltd. (MUL) will be investing a total of Rs. 32719.000 Millions for a new car manufacturing plant and a new engine and transmission unit. The new engine unit will make both diesel and petrol engines apart from manufacturing gears. Both the new plants would be located at Manesar in Haryana as proposed originally.

 

These investment proposals were cleared by the company board at its meeting held at Hamamatsu, Japan, recently.

 

According to MUL, which is 54.2 per cent owned by Japan's Suzuki Motor Corp., the new car plant would be set up through a joint venture called Maruti Suzuki Automobiles India Ltd. In this joint venture, MUL will hold 70 per cent equity and Suzuki Motor Corporation the remaining 30 per cent.

 

An investment of Rs. 15242.000 Millions is planned for the new car plant with an initial capacity of one lakh cars annually, which will have scope to go up to 2.50 lakh cars annually. The new car manufacturing plant would begin commercial production by the end of 2006, the company said. On the engine and transmission facility, the company said in addition to manufacturing diesel engines for cars, as decided originally, it would also manufacture petrol engines and transmission assemblies. The total plant capacity would be three lakh diesel engines annually, to be developed in phases and it would involve an investment of Rs. 17477.000 Millions.

 

To begin with, this unit will annually produce one lakh diesel engines, 20,000 petrol engines and 1.40 lakh transmission assemblies. It would be gradually expanded in line with the market demand. Commercial production at this unit is expected to start by the end of 2006.

 

Like the car plant, the engine and transmission plant will also be run by a joint venture company, renamed Suzuki Powertrain India Limited (earlier called Suzuki Metal India Limited or SMIL), the company said.

 

 

 

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.40.60

UK Pound

1

Rs.80.13

Euro

1

Rs.54.87

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

58

 

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

 

 

 

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