MIRA
INFORM REPORT
|
Report Date : |
17.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
MOTHERSON
AUTOMOTIVE TECHNOLOGIES AND ENGINEERING LIMITED – DIVISION OF MOTHERSON SUMI
SYSTEMS LIMITED |
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Registered
Office : |
3rd Floor,
Bhageria House, 43, Community Centre, New Friends Colony, New Delhi - 110 065 |
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Country : |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
19.12.1986 |
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Com. Reg. No.: |
55-26431 |
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CIN No.: [Company
Identification No.] |
L34300DL1986PLC026431 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
DELM11353G /
DELM08600E |
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PAN No.: [Permanent
Account No.] |
AAACM0405A |
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Legal Form : |
Subject is a Public
Limited Liability Company. The
company's shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturers of
Auto Ancillaries, Wiring Harnesses, Components and High Tension Cords. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
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 8500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established
and reputed company having satisfactory track. Financial position is satisfactory. Trade relations are fair. Payments are usually correct and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
3rd
Floor, Bhageria House, 43, Community Centre, New Friends Colony, New Delhi -
110 065, India |
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Tel. No.: |
91-11-26822778/26838069 |
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Fax No.: |
91-11-26842174 |
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E-Mail : |
3. mate@del3.vsnl.net.in |
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Website : |
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Registrar : |
Kavy
Computershare Private Limited Kavy House, 46,
Avenue 4, Street No. 1, |
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Units: |
v
Plot
No. 31B, JIADB Industrial Area, Phase –1, Kumbalgodu, v
Motherson
Automotive Technologies and Engineering (A division of Motherson Sumi Systems Limited) No. 9, GST Road, Oorapakum Kanchipuram, District Chennai, Tamilnadu v
B-22,
SIDCO Industrial Estate, Hosur, Tamilnadu v
C-6
& 7, 1st and 2nd Floor, Sector – 1, Noida, Uttar
Pradesh v
A-15,
Sector 6, Noida, Uttar Pradesh v
Mohan
Co-operative, v
A-60-61,
Sector 6, Noida, Uttar Pradesh v
129/2,
Sanghvi Compound, Chinchwad, Pune, v
C-14A
& 14B, Sector 1, Noida Uttar Pradesh v
Plot No.
21, Industrial Estate, Gurgaon, Haryana v
C-6
& 7, Ground Floor, Sector 1, Noida, Uttar Pradesh v
D-3,
Sector 11, Noida, Uttar Pradesh v
8,
Ayyenchery, Village Oorapakkam Panchyet,Kancheepuram 603 202, Tamilnadu v
Survey
No. 241-1/2, Hinjewadi, Tal Mulshi, District Pune – 411 027, v
96/3-P,
96/4, 96/7-P, A |
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Overseas
Offices: |
Located at :- ·
·
·
Sharjah
·
·
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DIRECTORS
|
Name : |
Mr. Vivek Chaand
Sehgal |
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Designation : |
Chairman |
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Name : |
Mr. Toshimi
Shirakawa |
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Designation : |
Director |
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Name : |
Mr. Ram Ganapati |
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Designation : |
Director |
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Name : |
Mr. Mohinder Singh
Gujral |
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Designation : |
Director |
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Name : |
Mr. Hiroto Murai |
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Designation : |
Director |
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Name : |
Mr. Bimal Dhar |
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Designation : |
Director |
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Name : |
Mr. Akihiko
Yamauchi |
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Designation : |
Whole Time
Director |
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Name : |
Maj. Gen. Amarjit
Singh (Retired) |
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Designation : |
Director |
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Name : |
Mr. Masahiro
Matsushita |
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Designation : |
Alternate
Director |
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Name : |
Mr. Pankaj K.
Mital |
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Designation : |
Alternate
Director |
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Name : |
Mr. Arjun Puri |
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Designation : |
Director |
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Name : |
Mr. G. N. Gauba |
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Designation : |
Director |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian Promoters |
81031522 |
34.50 |
|
Foreign Promoters |
87375780 |
37.20 |
|
Institutional
Investors |
22254816 |
9.47 |
|
Private Corporate
Bodies |
17559931 |
7.48 |
|
Indian Public |
25812923 |
10.99 |
|
NRIs/OCBs |
854228 |
0.36 |
|
Total |
234889200 |
100.00
% |
30.06.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group 2 |
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(1) Indian |
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(a) Individuals / Hindu undivided family |
31241282 |
12.88 |
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(B)Bodies
Corporate |
50790240 |
21.62 |
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(2) Foreign |
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(b) Bodies Corporate |
87375780 |
37.20 |
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(B) Public Shareholding 3 |
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(1) Institutions |
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(a) Mutual Funds / UTI |
8229763 |
3.50 |
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(b) Financial Institutions / Banks |
8250 |
-- |
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(f) Foreign Institutional Investors |
14013318 |
5.97 |
|
(2) Non –
Institutions |
|
|
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(a) Bodies Corporate |
17439263 |
7.42 |
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(b) Individuals – i. Individual shareholders holding nominal share capital up to
Rs.0.100 million ii. Individual shareholders holding nominal share capital excess of
Rs.0.100 million |
11664309 14270854 |
4.97 6.07 |
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© Any Other
(specify) |
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i. Overseas Bodies Corporate |
738000 |
0.31 |
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ii. Non Residental Indians |
102033 |
0.04 |
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iii. Trusts |
3375 |
-- |
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iv. Clearing Members |
12733 |
-- |
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© Shares held by
custodians and against which depository receipts have been issued |
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|
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Grand Total |
234889200 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturers of
Auto Ancillaries, Wiring Harnesses, Components and High Tension Cords. |
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Products with
ITC Code : |
C
Integrated
wiring harness - 8544.90 C
Rubber
Components - 40160000 C
Insulated
Wire - 8544.90PVC |
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Ø
Wiring Harness Components Housings Terminals Caps & Sleeves Clamps & Binders Fuse Boxes Noise Suppressers Ø
Electrical Distribution System Wiring Harnesses Lead Wires High Tension Cords |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Against Credit
terms |
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Purchasing : |
Against Credit
terms |
PRODUCTION STATUS
|
Particulars |
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Actual
Production |
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Wiring Harness (Nos.) |
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|
16.270 |
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High Tension Cords (Nos.) |
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|
0.398 |
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Plastic Components (M.T.) |
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|
58.134 |
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Wires (Km’s) |
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|
0.447 |
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GENERAL INFORMATION
|
Suppliers: |
♠
AGN Electro
Coats ♠
Auto
test Mechanisms Private Limited ♠
Chamundi
Die Cast Private Limited ♠
Aglow
Engineers Private Limited ♠
B.R.
Auto Connectors and Spares Private Limited ♠
Brass
Copper and Alloy ( ♠
♠
Shree
Shiva Engineering Works ♠
Hari
Har Engineering Works ♠
M.D.
Plastics ♠
♠
D.M.
Enterprises ♠
Fire
Safety Equipments Private Limited ♠
Kings
Pack System ♠
Senna
Polymers |
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Customers : |
OEM’s |
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No. of Employees : |
5200 |
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Bankers : |
Ø
State
Bank of Ø
ICICI
Bank Limited Ø
UTI
Bank Limited Ø
Bank
of Tokyo Mitsubishi Limited Ø
HDFC
Bank Limited Ø
Citibank
N. A. |
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Facilities: |
Secured Loans referred above are: 1. Secured by first charge by way of hypothecation of all present and
future stocks, book debts and other specified moveable assets of the company
and second charge by way of hypothecation of all immovable property. 2. Long term loans due within a year Rs.200.046 millions (Previous
year 16.276 millions) 3. Includes loan of Rs.134.466 millions secured by charge on immovable
property, stock in trade an book debts of the company and Rs.23.800 millions
secured by charge on entire fixed assets both moveable and immovable of the
erstwhile Motherson Advance Polymers Limited since merged with the company. 4. Secured by first pari – passu charge on entire fixed assets both
moveable and immovable of the company present and future and second pari –
passu charge on the entire current assets of the company. These are also
secured by way of deposit of title deeds of specified properties. 5. i) Tooling advances received from customers are repayable by way of
amortization on supply of components and hence cannot be distinguished
between short term and long term. ii) Secured by
hypothecation of specific moulds used for production of compone.
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1. Repayable on demand 2. Long Term Loan due within a year Rs. Nil 3. Tooling advances received from customers are repayable by way of
amortization on supply of components and hence cannot be distinguished
between short term and long term. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Price Waterhouse
& Company Chartered
Accountants |
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Address : |
Building 8 , 7th
and 8th Floor, |
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Associates: |
·
Sumitomo
Wiring Systems Limited Subject established in 1917, Sumito Wiring Systems (SWS) has the second
highest share in wiring harnesses in The company’s current revenues are Japanese Yen 345 billion with 66
overseas affiliates spread over 26 countries. SWS provides technical support to Company in the form of resident
technical advisors, training of engineers and production personnel,
manufacturing methodologies, Japanese manufacturing techniques, quality
circle activities, kaizen, collaborative design and development and global
bench making. SWS is aiming to realize at global level, the best quality at
the most competitive cost and production in optimum locations. To achieve
this goal, SWS conducts bench making of three levels company, plant and
associates. This global bench making has raised radically competitive
environment in MSSL at all levels. Ø
Saks
Ancillaries Limited Ø
Motherson
Air Travel Agencies Limited Ø
Motherson
Advance Strategic Solutions Limited Ø
Sumi
Motherson Innovative Engineering Limited Ø
Sumi
Motherson Integrated Technologies Limited Ø
Motherson
Techno Tools Limited Ø
Motherson
Sehgal Cables Ø
Vaaman
Auto Industries Ø
Ganapati
Auto Industries Ø
Motherson
Auto Private Limited Ø
Motherson
Sumi Infotech and Designs Limited Ø
Aqatec
Electricals Limited Ø
Million
Miles Limited Ø
S. J.
Max Golden Company Limited Ø
Motherson
Triplex Tools Limited Ø
Motherson Compounds Private Limited Ø
Sri
Cables Ø
Motherson
Sehgal Cables Ø
Saks
Ancillaries Limited |
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Investors: |
Mr. G.N. Gauba, Company Secretary and V.P. Finance 3rd Floor, Bhageria House, 43, Community Centre, New Friends
Colony, New Delhi – 110025 E – Mail: gngauba@mssl.motherson.com |
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Subsidiaries /
Joint Ventures : |
Ø
MSSL Ø
MSSL Ireland Private Limited Ø
Motherson Electrical Wires Ø
Wire Lanka Private Limited Ø
Draexlmaier & Motherson Ø
Electrical Systems India Limited Ø
Motherson PUDENZ Ø
WICKMANN Limited Ø
MSSL Hag Toolings Limited (FZC) Ø
Kyungshin Industrial Motherson Limited Ø
Schefenacker Motherson Limited Ø
Woco Motherson Limited (FZC) Ø
Sumi Motherson Innovative Engineering Limited Ø
Motherson Advance Polymers Limited Ø
CTM India Limited Ø
MothersonSumi Infotech & Designs Limited Ø
Motherson Techno Tools Limited Ø
Hag Kunststofftechnik GmbH Ø
ABC Designs Pty Limited Ø
Anest Iwata Motherson Limited Ø
Webasto Motherson Sunroofs Limited Ø
G & S Kunststofftechnik GmbH Ø
Global Environment Management Ø
MSSL GB Limited Ø
MSSL [S] Pte Limited Ø
MSSL GmbH Ø
MSSL
Mauritius Holdings Limited Ø
MSSL
Handels GmbH Ø
Mothersonsumi
Reiner GmbH Ø
Lisa Draexlmaier GmbH, Ø
Wilhelm Pudenz GmbH, Ø
Schefenacker International AG & Company Ø
Kyungshin Industrial Company Ø
WOCO Franz Josef Wolf Holding GmbH |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
803000000 |
Equity Shares |
Rs.1/- each |
Rs.803.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
234889200 |
Equity shares |
Rs.1/- each |
Rs.234.889 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
234.889 |
234.900 |
234.900 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
2774.924 |
1987.300 |
1506.100 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
3009.813 |
2222.200 |
1741.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
946.392 |
925.700 |
496.200 |
|
|
2] Unsecured
Loans |
3033.654 |
2801.400 |
226.200 |
|
TOTAL BORROWING
|
3980.046 |
3727.100 |
722.400 |
|
|
DEFERRED TAX
LIABILITIES |
50.963 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
7040.822 |
5949.300 |
2463.400 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
3249.495 |
2419.600 |
1970.000 |
|
Capital work-in-progress
|
68.162 |
220.400 |
99.400 |
|
|
|
|
|
|
|
INVESTMENT
|
1300.206 |
332.700 |
159.400 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
1204.816 |
880.100 |
632.200 |
|
|
Sundry Debtors
|
1686.153 |
918.100 |
569.400 |
|
|
Cash & Bank Balances
|
365.922 |
1617.400 |
26.500 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
1408.888 |
1856.000 |
850.000 |
Total Current Assets
|
4665.779 |
5271.600 |
2078.100 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current
Liabilities |
1532.770 |
1250.100 |
1004.900 |
|
|
Provisions |
1294.885 |
1800.100 |
838.600 |
Total Current Liabilities
|
2827.655 |
3050.200 |
1843.500 |
|
Net Current Assets
|
1838.124 |
2221.400 |
234.600 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
584.835 |
755.200 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
7040.822 |
5949.300 |
2463.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales Turnover [including other
income]
|
10997.065 |
8393.300 |
6560.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1416.577 |
941.600 |
849.400 |
Provision for Taxation
|
274.804 |
173.200 |
228.500 |
Profit/(Loss) After Tax
|
1141.773 |
768.400 |
620.900 |
|
|
|
|
|
Export Value
|
2039.647 |
1486.939 |
N.A. |
|
|
|
|
|
Import Value
|
3357.328 |
2108.673 |
N.A. |
|
|
|
|
|
Total Expenditure
|
9580.488 |
7451.700 |
5710.600 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Type |
|
|
|
|
Sales
Turnover |
|
|
3020.400 |
|
Other
Income |
|
|
170.800 |
|
Total
Income |
|
|
3191.200 |
|
Total
Expenditure |
|
|
2600.500 |
|
Operating
Profit |
|
|
590.700 |
|
Interest |
|
|
47.100 |
|
Gross
Profit |
|
|
543.600 |
|
Depreciation |
|
|
118.500 |
|
Tax |
|
|
134.200 |
|
Reported
PAT |
|
|
300.400 |
200706
Quarter 1 ---
Notes Net Sales includes Domestic Sales Rs 2421.01 million
Export Sale Rs 599.41 million Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (18.91) million Consumption of Raw Materials Rs 1875.57
million Staff Cost Rs 271.06 million Exchange Fluctuation (Net) Rs (134.12)
million Other Expenditure Rs 472.75 million Tax Includes Provision for Current
Tax Rs 130.72 million Deferred Tax Rs (9.45)million Fringe Benefit Tax Rs 3.50
million EPS is Basic Status of Investor Complaints for the quarter ended June
30, 2007 Complaints Pending at the beginning of the quarter 06 Complaints
Received during the quarter 23 Complaints disposed off during the quarter 23
Complaints unresolved at the end of the quarter 06 1. The above financial
results were approved by Board of Directors of the Company at the meeting held
on July 30, 2007. 2. During the current quarter there was fire in two of the
company's manufacturing facilities at Noida, causing damage to the stocks,
equipment and building of the units. The said facilities are adequately insured
and the company has initiated the process for obtaining the insurance claims.
The Company believes that the claims are fully reimbursable and expects no
material loss on such account. The Company does not expect the effect of fire
to have material impact on the overall operations of the Company. 3. Statutory
Auditors have carried out a 'Limited Review' of the financial results for the
quarter ended June 30, 2007. 4. The Board of Directors in their meeting held on
May 26, 2007 have proposed an issue of bonus shares in the proportion of 1
share for 2 shares held to the equity shareholders of the Company, subject to
the approval of Shareholders at the ensuing Annual General Meeting to be held
on July 30, 2007. Consequent upon issue of such bonus share to the existing
shareholders the conversion price for conversion of FCCB will be revised to Rs
74.30 per share. 5. The Company has on July 15, 2005 issued Ç 50.30 million
Zero Coupon Convertible Bonds due 2010, listed on the Singapore Exchange
Securities Trading Ltd and accordingly an amount of Rs 40.66 million (net of
income of Rs 1.94 million on unutilised funds) for the three months ended June
30, 2007 has been charged to profit and loss account as finance cost being
amortisation of the amount of premium payable on redemption and other ancillary
costs incidental to the issue. As on June 30, 2007, an amount of Ç 2.77 million
is lying unutilised. 6. Exchange Fluctuation (net) includes a gain (net of loss
on restatement of loans and deposits advanced overseas) amounting to Rs 87.21
million (corresponding previous quarter loss of Rs 83.81 million) on account of
restatement of liabilities arising out of issue of FCCB. 7. The Hon'ble High
Court of
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.48 |
1.13 |
0.45 |
|
Long Term Debt-Equity Ratio |
1.46 |
1.12 |
0.44 |
|
Current Ratio |
1.62 |
1.48 |
1.18 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.47 |
2.26 |
2.23 |
|
Inventory |
11.67 |
10.60 |
11.55 |
|
Debtors |
9.24 |
10.77 |
11.67 |
|
Interest Cover Ratio |
6.54 |
6.46 |
36.39 |
|
Operating Profit Margin(%) |
17.10 |
18.25 |
17.86 |
|
Profit Before Interest And Tax
Margin(%) |
13.48 |
13.90 |
13.71 |
|
Cash Profit Margin(%) |
12.83 |
13.94 |
13.90 |
|
Adjusted Net Profit Margin(%) |
9.22 |
9.59 |
9.75 |
|
Return On Capital Employed(%) |
28.60 |
29.25 |
39.07 |
|
Return On Net Worth(%) |
43.49 |
39.17 |
40.20 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.127.40/- |
|
Low |
Rs.123.60/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in Dec.'86, Motherson Sumi Systems (MSSL) was
promoted by Motherson Auto Private Limited (MAPL), K L Sehgal, V C Sehgal &
associates with technical and financial collaboration with Sumitomo Wiring
Systems (SWS) & Nissho Iwai Corporation (NIC), Japan. The business of MAPL
was later transferred to MSSL.
It manufactures integrated wiring harnesses (IWH) for the automotive & electronic
industries and is the market leader in the manufacture of IWH in the country.
Further the company has its presence Plastic Division ( which manufactures wide
range of injection moulded components & asemblies etc.,) and also in Rubber
Components, Heat Sinks and others. The plants of the company are located at
Noida (UP), New Delhi, Gurgaon (Haryana), Pune (Maharashtra), Bangalore
(Karnataka), Chennai (Tamilnadu) and Pondicherry.
In Mar.'93, it entered the capital market and in Dec.'93 it inaugurated the ISO
9002 certified plant to manufacture wiring harnesses used in providing high
tension cords for Zen and Alto. In 1995, the Unit at Pune, Maharashtra to
manufacture TELCO wiring harnesses started functioning and a new wiring unit
was started in technical collaboration with SWS,
The Subsidiaries of MSSL are MSSL Mideast (FZE), MSSL Mauritius Holdings
Limited, MSSL Ireland Private Limited, MSSL Handels GmbH, Motherson Electrical
Wires Lanka (Private) Limited, MSSL(s) Pte Limited, MSSL Hag Tolings
Limited(FZC), MSSL GB Limited, MSSL GmbH, Draexlmaier & Motherson
Electrical System India Limited, Motherson Pudenz Wickmann Limited, Woco
Motherson Elastomer Limited and Woco Motherson Advanced Rubber Technologies
Limited
The company has floated a few new companies like, BTR Motherson Automotive
Private Limited in joint venture with BTR Plc of UK, Britax Motherson, Kromberg
& Schubert Motherson Sumi Systems in joint venture with Kromberg &
Schubert A.G., Germany, Kyungshin Industrial Motherson Private Limited in joint
venture with kyungshin Industrial Company, Korea, Motherson Elastomers Private
Limited in joint venture with WOCO Franz Joseph & Company, Germany.
The Delhi High Court has approved the amalgamation of Motherson Auto Components
Engineering Limited (MACE) and Motherson Sumi Electric Wires (MSEW) 100%
subsidiaries with the company. During Sepetember 2005 the company has decided
merge Draexlmaier & Motherson Electrical Systems India Limited, a 100%
subsidiary of the company with the company.
In December 2005 the company has decided to merge Motherson Advance Polymers
Limited with itself with effect from 1st April 2005 and this scheme of merger
is subject to approvals. During 2004-05 the company has transferred its
Elastomer Division into Woco Motherson Elastomer Limited, a subisidiary company
with effect from 1st June 2004.
In May 2005 the company has incorporated a new subsidiary 'Motherson Sumi
Reiner Gmbh', in Germany, which is an agreement between the company and Reiner
Prazision Gmbh to take over their business on going concern basis.Further the
company has decided to set up a new subsidiary in joint venture with Sumitomo
Wiring Systems Limited, Japan at Sharjah for supply of wiring harnesses to
Sumitomo Wiring Systems.
During March 2004 the company sub-divided its equity share face value from
Rs.5/-per share to Re.1/- per share and further in February 2005 the company
issued bonus equity shares to its shareholders in the ratio of 1:2.
During 2004-05 the company has expanded its facilities a Nodia with a new
dedicated unit for exports of Wiring Harness. Further the company has started a
new unit for Plastics at Chennai to cater to the requirements of Hyundai Motors
and for exports GM Holden,
Motherson Automotive Technologies & Engineering, the plastic division of
the company has decided to expand its Plastics facilities at Chennai to build
capacity for catering to increasing requirement of Ford India Limited and also for
export of components to Ford Europe. The Plastic Division which is being set up
at Manesar will become operational during 2005-06.
Director’s Report:
Operations:
The Company recorded a turnover of Rs.10,812.19 million during the
year compared to Rs.7,134.29 million in the previous year and the Company
achieved a profit after tax of Rs.1,141.78 million as against 826.70 million
during the previous year. The Company's performance is discussed at length in
Management discussion and analysis, which forms a part of the Directors'
Report.
Dividend:
The Directors recommended a dividend of Rs.1.50 per share for the year ended
March 31, 2007. The dividend, if declared as above, will be paid to those
shareholders whose names appear in the register of members as on July 30, 2007.
The total cash outgo on account of a proposed dividend is Rs.412.22 million
(compared to previous year's Rs.308.01 million) which represents 36% of profit
after tax.
Exports:
The Company's exports during the year have grown to Rs.2,436
million from Rs.1,533 million, achieving a growth rate of 59%. The Company
continues to make its efforts towards achieving higher growth by providing cost
competitive quality solutions to its customers. In addition, the Company has
set up offices, mainly in
Amalgamations:
During the year Motherson Advance Polymers Limited, a 100% subsidiary of
the Company amalgamated with the Company. The amalgamation is operative
retrospectively from February 1, 2006.
Subsidiaries
/ Joint ventures:
The Company purchased the business and assets of ASL Systems Limited (in
administration) from the administrator on August 04, 2006 through 100% owned
The Company through its subsidiaries, Motherson Elastomers Pty Limited and
Motherson Investments Pty Limited, has acquired the business and assets of
Empire Rubber (Bendigo, Victoria, Australia), which was engaged in rubber
mixing and manufacture of rubber extruded components, from Huon Corporation Pty
Limited (in liquidation).
In addition to the above mentioned subsidiaries the Company has the following
100% subsidiaries viz. MSSL Mideast (FZE), MSSL Mauritius Holdings Limited,
MSSL Handels (GmbH), Motherson Electrical Wires Lanka Pvt. Ltd., MSSL GmbH
(through MSSL Mideast), MSSL Tooling (FZE) (through MSSL Mauritius), and MSSL
Ireland Pvt Limited (through MSSL 44 Motherson Sumi Systems Limited Mauritius),
MSSL(S) Pte Ltd., MSSL (GB) Ltd. (through MSSL Mideast), Motherson Sumi Wiring
System Limited (FZC) (through MSSL Mideast), G & S Kunststofftechnik GmbH
(through MSSL GmbH), Mothersonsumi Reiner GmbH (through MSSL GmbH), MSSL
Australia Pty Ltd. (through MSSL (S) Pte.), Global Environment Management (FZC)
(through MSSL Mauritius), Global Environment Management Australia (through
Global Environment Management (FZC)), FP Formagrau s.r.o (through MSSL GmbH),
and the joint venture subsidiary is Motherson PUDENZ WICKMANN Ltd.
The Company has also incorporated two more subsidiaries
namely Motherson Elastomers Pty. Ltd. and Motherson Investments Pty. Ltd.
through MSSL Australia Pty Limited, which is a subsidiary of MSSL S Pte Limited
(80% held by the Company) in February 2007 to take over the assets and business
of Empire Rubber (A division of Huon Corporation Pty Limited (in
receivership)). The accounts of these subsidiaries are not attached herewith
since the first financial year of these subsidiaries will close on December 31,
2007.
The performance of the subsidiaries and joint ventures are discussed at
length in Management discussion and analysis and forms a part of the Directors'
Report.
Wiring
harnesses:
Wiring harness manufacturing contributes to over 64% of the total
turnover. With 20 wiring harness and wire manufacturing locations spread over
Domestic
market:
MSSL, along with its subsidiaries and joint ventures, holds approximately 65%
in the domestic passenger car market, based on assessment done on the numbers
of vehicles manufactured. The company developed wiring harnesses for new
models, Zen Estillo, Swift (Diesel), Wagon - R (Duo) launched by MUL, Civic
(Honda Siel Cars), Verna (Hyundai Motors). The company further consolidated its
position with Mahindra & Mahindra as well as Tata Motors in the domestic
markets. The company started supplies of wiring harnesses to two more locations
of Tata Motors for commercial vehicles. In the motor cycle segment and other 2
wheeler segments, the company started supplies harnesses to Hero Honda, Honda
Motorcycles Scooter India, Yamaha
Exports:
The total exports of wiring harnesses on consolidated basis reached a new
high level of Rs.2.7 billion crossing Rs.2 billion mark. The exports from
With acquisition of ASL Systems MSSL has also added new customers and new
segments like buses, trailers, and special purpose vehicles. The new range of
modules integrated with wiring harnesses has opened opportunities for MSSL to
supply such value added modules to its existing customers.
Exports to collaborators are slated to improve further with establishment
of a new joint venture with SWS at Sharjah for manufacturing and supply of
wiring harnesses to SWS group locations. The exports to collaborator from
Sharjah grew to Rs.476 million during 9 months as against Rs.469 million during
2005-06.
Backward integration:
In line with growth in the wiring harnesses sales to customers, the wire
division, including
With the constant focus on backward integration, the company
decided to invest in manufacturing facility for extruded products including PVC
tubing and corrugated tubing which are critical components for wiring harness
manufacturing.
This has helped the company in having better control on quality and
delivery and has also added to the flexibility and speed in developing new
products, and responding to fluctuations in customer demands. In the coming
years, this company will focus on other auxiliary product requirements of the
wiring harness business and will act as a vehicle for backward integration for
more and more products.
Polymer:
The polymer division of the company Motherson Automotive
Technologies & Engineering (MATE) added new products to its range of
injection molded components, assemblies, blow molded components, and integrated
modules. In order to keep pace with increasing customer requirements MATE has
continuously upgraded its existing facilities and added new facilities. At
present MATE has 10 manufacturing facilities in
Domestic:
The year included full year sales of IP modules, bumpers and
door trims along with other molded components and assemblies for Ford Fiesta.
The division also stared supplies of Bumpers and IP with Ducts for Honda Civic.
MATE is now emerging as a full system solutions provider with a wider range of
modules. MATE is focusing on adding new value added modules that require
specialised engineering abilities.
The business of Motherson Advance Polymers, which was merged
with MSSL, has been placed under MATE. With this MATE has acquired wide range
of products for white goods and electronics segments and added new customers
including LG and Samsung. The turnover from this business for the current year
is Rs.521.53 million against previous year turnover of Rs.94.14 million.
Exports:
MATE grew its exports from Rs.151 million to Rs.527 million registering a
3.5 times growth. The division started export of Grab handles to Ford of Europe
through MSSL Mideast, HVAC parts and interior trim parts to
The company's deemed export from
On consolidated basis the sales to the customers outside
1. MSSL Australia Pty Ltd. was incorporated in Oct. 06 which acquired the
business of door trims from Huon Corporation, in receivership, for direct
supplies to GM Holden,
2. FP Formagrau s.r.o was acquired by MSSL GmbH the
European subsidiary of MSSL w.e.f. 1st Dec. 2006. This 100% acquisition has
given the company a manufacturing base in
3. The company also purchased assets from the receiver of Wippermann for
which majority of the business was relocated to Sharjah and
The performance of these companies is discussed in the respective
sections in the MDA
The company is in trade terms with :-
Ø
Bajaj
Auto Limited
Ø
Bharat
Earth Movers Limited
Ø
Daewoo
Motors India Limited
Ø
Eicher
Limited
Ø
Ford
India Limited
Ø
Fiat
Auto India Limited
Ø
Escorts
Construction Equipments Limited
Ø
International
Tractors
Ø
Hyundai
Motors
Ø
Mercedes
Benz India Limited
Ø
Mahindra
& Mahindra Limited
Ø
Kinetic
Engineering Limited
Ø
Honda
Siel Cars
Ø
Philips
India Limited
Ø
WKH
India Limited
Ø
Wipro
GE Medical Systems Limited
Ø
Panasonic
Ø
WOCO
Franz Josef Wolf & Company,
Ø
Sumitomo
Wiring Systems Limited
Ø
Hag
Handles
Ø
Kautex-Textron
Ø
Kikert
AG
Ø
Piaggio
Ø
Taylor
Dyne
Ø
Trodat
Ø
Wilhelm
Pundenz
Ø
Roche
Diagnostics
Ø
Endress
+ Hauser
Ø
Hewlett
Packard
Ø
Alok
Leasing Private Limited
Ø
Celloplast
Industries
Ø
Hytech
Engineers
Ø
Halonix
Industries Private Limited
Ø
Mega
Rubber Technical Private Limited
Ø
Paragon
Autotech Products Private Limited
Ø
Plastometal
Engineering (
Ø
SSI
Rubbers
Ø
Super
Screws Private Limited
Ø
United
Industries
Ø
Vidya
Rubber
Ø
Sujo
Plast
Ø
V. M.
Enterprises
Ø
Tubeflex
Ø
Vankusha
Rubber Products
Ø
Vinay
Traders
Ø
Numeritech
Engineers (
Ø
Electro
Flash
Ø
Sankhala
Industries
Ø
Priya
Plastics
Ø
S. C.
J. Plastics
Ø
Bafna
Packaging Private Limited
Ø
Paper
Pack Industries
Ø
Concept
Engineering (
Ø
Kund
Kund Polymers
Ø
Interface
Microsystems
Ø
Aglow
Engineers
Ø
Agrahan
Engineers
Ø
Ashok
Insulation
Ø
Bharti
Wood Works
Ø
Cello
Plast Industries
Ø
Concept
Engineering
Ø
Excel
Glass Fibre
Ø
Grand
Industries
Ø
Hytech
Engineers
Ø
National
Electronics Corporation
Ø
Numeritech
Engineers (
Ø
Paragon
Auto Industries
Ø
Pranay
Insulations
Ø
Sakshi
Polytubes Private Limited
Ø
SGR
Elastomers (
Ø
Alfa
Industries
Ø
Shriram
Engineering
Ø
Sree Raja
Ganapathy Industries
Ø
Sakthi
Springs Forms (Private) Limited
Ø
Tritech
Engineering
Fixed Assets:
Ø
Leasehold
land
Ø
Building
Ø
Plant
andMachinery
Ø
Furniture
Ø
Fixtures
Ø
Office
Equipment
Ø
Computers
Ø
Vehicles
WEBSITE DETAILS
The Sumi Motherson Group is a focused, dynamic and progressive group
providing customers with value added products, services and full system
solutions.
They are
joint venture specialists, providing customized integrated solutions combining
multiple technologies supported by their global partners.
Key Facts
Established in 1975
Sales over $USD 350 Million (FY 2004-05)
Diversified manufacturer
Benchmark for high Quality products
Strategic integration for Quality / Cost & Delivery
Joint ventures in key Technology areas
Driven by over 13,500 qualified professionals
Their
accomplishments include being the first in
They are
the largest manufacturer of Automotive Wiring Harnesses, Automotive Wires and
one of the largest plastic components supplier to the automotive and consumer
electronics industries.
They
continue to set higher targets for their selves in their pursuit to become a globally
preferred solutions provider.
PARTNERS
1. Wiring
Harness
Wiring Harness
Sumitomo Wiring Systems Limited, Japan
Kyungshin
Industrial Company, S. Korea
Wires
Sumitomo Wiring Systems Limited,
Japan
2. Engineering
Design & Software Development
Sumitomo Wiring Systems Limited, Japan
Miyazu
Seisakusho Company Limited, Japan
3. Polymer &
Tooling
Injection Molding
Sumitomo Wiring Systems Limited, Japan
Rubber & Liquid Silicon Rubber Components
WOCO
Industrietechnik GmbH, Germany
Injection Molding Tools
Sumitomo Wiring Systems Limited, Japan
Centre
Tooling Mold Makers Pty. Limited, Australia
4. Strategic
Business Ventures
Fuses
Wickmann Werke GmbH, Germany (Partner with
Littelfuse Inc.
Rear Vision Systems
Sunroofs
Air Compressors
Anest
Iwata Corporation, Japan
Cutting Tools
Sumitomo Electric Industries, Japan
Precision Machining
Reiner Präzision
GmbH,
Industrial Robots
Yaskawa
Electric Corporation, Japan
Automotive Manufacturing Engineering
Automotive Engineering Services, Japan
Environment Systems
E
SUMI MOTHERSON
GROUP - Group Companies
A Basic Concepts Designs Pty. Limited
A Basic Concepts and Design Pty. Limited (ABCD) is a Sumi Motherson
Group company based in
AES (India) Engineering Limited
AES (
AES is a global
player in the automotive engineering field, providing services to major
automotive manufacturers worldwide.
Anest Iwata Motherson Limited (AIM) is a joint venture between Anest Iwata
Corporation (
CTM India Private Limited
CTM India Private Limited (CTMIL) is a commercial tool room with
capabilities to manufacture injection moulding and blow molding tools. Checking
fixtures and Gauges. CTMIL is a joint venture between CENTRE TOOLING (
G&S
Kunststofftechnik is a subsidiary of Motherson Sumi Systems Limited located at
Schwäbisch Gmünd (
G&S specializes
in plastic injection molding and two component resin injection molding which
are supported by post molding processes.
Global Environment Management (FZC)
Global Environment
Management (GEM) is a joint venture between MSSL Mauritius Pte Limited, a Sumi
Motherson Group Company and ECompost Pty Limited, an Australian based
specialist developer of ecologically sustainable initiatives, products and
services. GEM has been formed for the marketing of commercially viable,
environmental improving products.
Kyungshin Industrial Motherson Limited
Kyungshin Industrial Motherson Limited (KIML) is a joint venture between
Kyungshin Industrial Company Limited (
Kyungshin
Industrial Company Limited is a leading manufacturer of integrated wiring
harnesses in
Miyazu Motherson Engineering Design Limited
Miyazu Motherson
Engineering Design Limited (MMED) is a joint venture between Miyazu Seisakusho
Company Limited (
Located in NOIDA,
the company provides design back to MIYAZU,
Motherson Advance Polymers Limited
Motherson Advance Polymers Limited (MAP) is
a commercial molding facility equipped with state-of-the-art japanese machines,
located in
Motherson Automotive Technologies &
Engineering (A Division of MSSL)
Started in 1995, MATE specialises in blow molding, large size injection
molding, compression molding and vacuum forming supported by state-of-the-art
paint shops. MATE has 6 facilities in South India and 2 in
Motherson PUDENZ Wickmann Limited
Motherson PUDENZ Wickmann Limited (MPWL) is a joint venture between
Wilhelm Pudenz GmbH (
Motherson Sumi Electric Wires (A Division of MSSL)
Motherson Sumi
Electric Wires (MSEW) is a division of Motherson Sumi Systems Limited, manufacturing
wires with technology from Sumitomo Wiring Systems Limited (
MSEW is the largest
manufacturer of automotive wires in
Motherson Sumi INfotech & Designs
Limited
MIND is an IT services company, in collaboration with Sumitomo Wiring
Systems (
The Software
Development division of MIND is certified for SEI CMM Level 5 and ISO
9001:2000.
It primarily
provides:
Solutions for
Software Companies
The Engineering
& Design Services division of MIND is certified for ISO 9001:2000.
It specialises in
Body Styling, Product Engineering, Prototyping, Mold Design, Industrial Design
and related services.
Mothersonsumi Reiner GmbH (MSR) is a Joint Venture between Reiner
Präzision GmbH (
Motherson Techno Tools Limited
Motherson Techno
Tools Limited (MTTL) is a joint venture with Sumitomo Electric Industries (
Sumitomo Electric
Industries is the world leader in the field of CBN (Cubic Boron Nitride) &
PCD (Polycrystalline Diamond) Cutting Tools.
Motherson Toolings Limited ( FZC )
Motherson Toolings Limited (FZC) (MTL) is a
subsidiary of Motherson Sumi Systems Limited. Located in Sharjah (UAE). MTL
specialises in manufacturing of injection molding tools for injection molding
machines upto the range of 400 tonnes.
Motoman Motherson Robotics Limited
Motoman Motherson
Robotics Limited (MMRL) is a joint venture between Yaskawa Electric Corporation
(
The company provides sales and service for the Motoman range of robots
in
MSSL Ireland Private Limited
MSSL Ireland Private
Limited is a 100% subsidiary of Motherson Sumi Systems Limited. MSSL Ireland
specialises in Design & Development of Wiring Harnesses. The design
facilities include designing on Unigraphics, Capital - H & Pro E. The
company also has complete Proto Building Facilities.
Being located in
MSSL Mideast FZE is
a 100% subsidiary of Motherson Sumi Systems Limited. Located in SAIF Zone,
Sharjah, the company specialises in manufacturing of wiring harnesses for
material handling equipment and off-road vehicles.
Sumi Motherson Innovative Engineering
Limited
A joint venture between Sumitomo Wiring Systems (
A joint venture between Sumitomo Wiring Systems (
Schefenacker Motherson Limited
A joint venture between Schefenacker AG (
Webasto Motherson Sunroofs Limited
Webasto Motherson Sunroofs Limited (WMSL) is a joint venture between
Webasto AG (
WOCO Motherson Limited (FZC) is a joint venture between WOCO
Industrietechnik GmbH (
WOCO Motherson Elastomer Limited
WOCO Motherson Elastomer Limited (WMEL) is a joint venture between WOCO
Industrietechnik GmbH,
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.09 |
|
|
1 |
Rs.81.46 |
|
Euro |
1 |
Rs.55.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
70 |
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 |
|