MIRA
INFORM REPORT
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Report Date : |
24.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HYUNDAI MOTORS INDIA LIMITED |
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Registered Office : |
Plot No. H-1, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.05.1996 |
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Com. Reg. No.: |
18-35377 |
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CIN No.: [Company
Identification No.] |
U29309TN1996PLC035377 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEH02069E |
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Legal Form : |
It is a closely held public limited liability company. |
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Line of Business : |
Manufacturing of Motor Cars, Parts and Accessories. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 82000000 |
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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 has been a successful car producer in Its payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
Plot No. H-1, |
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Tel. No.: |
91-4111-256111 / 256275 |
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Fax No.: |
91-4111-256280 / 256365 |
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E-Mail : |
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Website : |
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Location : |
Rented |
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Corporate Office : |
NP 54, Developed Plots, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032, Tamilnadu |
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Tel. No.: |
91-44-22329560 / 22340174 / 2233471 / 22343763 / 22343765 / 22343856 |
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Fax No.: |
91-44-22334924 |
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Factory 1 : |
Plot No. H-1, |
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Administrative Offices: |
39, |
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Tel. No.: |
91-44-24990013 / 24990531 / 24990678 / 24991938 |
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Fax No.: |
91-44-24994355 / 24997164 |
DIRECTORS
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Name : |
Mr. Avinash Prakash Gandhi |
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Designation : |
Director |
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Name : |
Mr. Byung Ouk Lee |
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Designation : |
Director |
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Name : |
Mr. Jong Hyok Kim |
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Designation : |
Director |
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Name : |
Mr. Jung Dae Lee |
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Designation : |
Director |
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Name : |
Mr. Swan Kwon |
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Designation : |
Director |
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Name : |
Mr. Wan Ki Park |
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Designation : |
Director |
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Name : |
Mr. Yong Whan Ahn |
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Designation : |
Director |
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Name : |
Mr. Heung Soo Lheem |
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Designation : |
Managing Director and Additional Director |
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Name : |
Mr. Han Woo Park |
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Designation : |
Executive Director (Administrative) |
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Name : |
Mr. Hyun Sup Song |
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Designation : |
Executive Director (Production) |
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Name : |
Mr. Jong Yeol Lee |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. B. V. R. Subbu |
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Designation : |
President |
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Name : |
Mr. M. P. Suresh Kumar |
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Designation : |
Company Secretary |
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Name : |
Mr. G. Arunmozhi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Hyundai Motor Company of |
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81,25,411 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Motor Cars, Parts and Accessories. |
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Products : |
v Passenger Cars v Vehicles Spares Parts Ø Traded Goods |
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Brand Names : |
‘SANTRO’ |
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Export to: |
Europe (United Kingdom, Malta, Serbia and Montenegro), Africa and Middle Ease (Turkey, South Cyprus, Afganisthan, Qatar, Lebanon and Ceuta) and in Latin America (Panama, Bermuda) |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Motor Car |
|
Vehicles |
124800 |
93888 |
GENERAL INFORMATION
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No. of Employees : |
3600 |
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Bankers : |
v ABN Amro Bank N V, Chennai - 600 034, Tamilnadu v
American Express Bank Limited, v
Citi Bank, v ICICI Bank, Chennai-600 018, Tamilnadu v IndusInd Bank Limited, Chennai, Tamilnadu v
Bank of v HDFC Bank Limited, Chennai, Tamilnadu v
State Bank of v Punjab National Bank, Chennai, Tamilnadu v
Cho Hung Bank, v The Sumitomo Bank Limited, Chennai, Tamilnadu |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Arthur Andersen & Associates Chartered Accountants |
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Address : |
8th Floor, West Minister, 108, Radhakrishnan Salai, Chennai - 600 004, Tamilnadu |
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Parent Company : |
Hyundai Motor Company 140-2, Key Dong, Chongro-Ku, |
CAPITAL STRUCTURE
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
14,000,000 |
Equity Shares |
Rs. 1000.00 each |
Rs. 14000.000 millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
8,125,400 |
Equity Shares |
Rs. 1000.00 each |
Rs. 8125.400 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
8125.400 |
8125.400 |
8125.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
12424.800 |
7173.800 |
4494.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
20550.200 |
15299.200 |
12619.700 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
5219.500 |
4180.900 |
5963.300 |
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TOTAL BORROWING |
5219.500 |
4180.900 |
5963.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
25769.700 |
19480.100 |
18583.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
17361.500 |
16949.100 |
17098.400 |
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Capital work-in-progress |
1672.100 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
117.300 |
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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 |
7415.400
|
6341.400 |
4669.000 |
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Sundry Debtors |
2248.800
|
3063.300 |
1147.600 |
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Cash & Bank Balances |
5351.000
|
1463.200 |
5439.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
9674.000
|
4624.800 |
1809.600 |
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Total
Current Assets |
24689.200
|
15492.700 |
13065.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
11644.400
|
10410.600 |
9467.500 |
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Provisions |
6308.700
|
2551.100 |
2230.600 |
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Total
Current Liabilities |
17953.100
|
12961.700 |
11698.100 |
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Net Current Assets |
6736.100
|
2531.000 |
1367.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
25769.700 |
19480.100 |
18583.000 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
85401.100 |
73519.000 |
57137.400 |
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Other Income |
4205.900 |
3491.300 |
1918.700 |
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Stock Adjustments |
629.900 |
977.700 |
339.600 |
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Total Income |
90236.900 |
77988.000 |
59395.700 |
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Profit/(Loss) Before Tax |
8048.800 |
6111.100 |
5721.200 |
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Provision for Taxation |
2797.800 |
2041.900 |
1932.700 |
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Profit/(Loss) After Tax |
5251.000 |
4069.200 |
3788.500 |
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Export Value |
26755.89 |
NA |
NA |
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Expenditures : |
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Raw Materials |
57059.800 |
49310.900 |
35318.600 |
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Excise Duty |
11234.100 |
10460.000 |
9132.600 |
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Power and Fuel Cost |
638.600 |
565.300 |
422.000 |
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Other Manufacturing Expenses |
2174.300 |
1638.900 |
927.100 |
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Employee Cost |
1613.600 |
1332.600 |
1068.300 |
|
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Selling and Administration Expenses |
6286.200 |
5621.200 |
3739.600 |
|
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Miscellaneous Expenses |
197.900 |
315.800 |
1133.700 |
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Interest and Financial Charges |
33.500 |
132.100 |
147.100 |
|
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Depreciation |
2950.100 |
2500.100 |
1785.500 |
|
Total Expenditure |
82188.100 |
71876.900 |
53674.500 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
Debt-Equity Ratio
|
|
0.26
|
0.36 |
0.51 |
Long Term Debt-Equity Ratio
|
|
0.26
|
0.36 |
0.51 |
|
Current Ratio |
|
1.27
|
1.14 |
1.25 |
TURNOVER RATIO
|
|
|
|
|
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Fixed Assets |
|
2.91
|
2.77 |
2.55 |
Inventory
|
|
12.42
|
13.35 |
15.85 |
|
Debtors |
|
32.15
|
34.92 |
67.40 |
Interest Cover Ratio
|
|
241.26
|
47.26 |
39.89 |
|
Operating Profit
Margin |
(%) |
12.92
|
11.89 |
13.40 |
Profit before Interest and Tax
Margin
|
(%) |
9.46
|
8.49 |
1.27 |
|
Cash Profit
Margin |
(%) |
9.60
|
8.94 |
9.76 |
|
Adjusted Net
Profit Margin |
(%) |
6.15
|
5.53 |
6.63 |
|
Return On Capital
Employed |
(%) |
35.72
|
32.80 |
34.01 |
|
Return On Net Worth
|
(%) |
29.29
|
29.15 |
33.19 |
LOCAL AGENCY FURTHER INFORMATION
Three models of Santro are:
· L2 - (with A/C)
· GLS1 - (with Bar Window, Central Locking & A/C)
· GLS2 - (with Power Steering, Bar Window, Central Locking & A/C)
The Santro (which is available in three variants – the L2, GLS1 and GLS2) was launched in September, 1998.
The company plans to build a world-class facility, which will offer quality products and services to the discerning consume.
The company also plans to introduce several new models in
the Indian market, and the pre-production and road test of its next car is
already being conducted. Code-named the LC-I, the company plans to introduce a
mid-sized (1400-1800 cc) car in October, 1999. Although similar to the
company’s accent which already sells in company’s design centre at Namyong and
The company has targeted a production of 60,000 Santros per year.
OPERATIONS:
Turnover for the financial year under review was Rs.85, 401.11 million as
against Rs.73, 519.02 million for the previous financial year, an increase of
16.16%.
Profit after tax increased by 29.04% from Rs.4,069.23 million in the year
2004-05 to 5,251.00 million for the financial year under review.
For the year 2005-06, volume of sales rose by 16% from 2, 24,074 vehicles
during 2004-05 to 2,60,919 vehicles of which the export sales rose by 24% from 84,098
vehicles during 2004-05 to 102,092 vehicles.
ACHIEVEMENT:
The Directors are delighted to inform that the Company has rolled out
10,00,000th car within a short duration of ten years from its
incorporation.
The models of the Company has won many accolades besides Sonata Embera winning
the 'Executive Car of The Year 2006' award by Business Standard Motoring
Magazine and Tucson being declared as 'SUV of The Year ' by NDTV Profit-Car
& Bike awards 2006.The mid-size sedan Accent won two awards, Accent
Petrol-No. 1 Entry mid-size car and Accent Diesel-No 1 mid-size diesel car by
TNS.
FINANCE:
The Company has availed loans from ING Vysya Bank during the year
2005-06 and has repaid it in the same year. The Company has no outstanding
amounts against credit facilities obtained from various banks and Financial
Institutions.
CORPORATE
SOCIAL RESPONSIBILITY:
At Hyundai Motor India, corporate social responsibility is viewed as a
commitment towards excellence and sustenance. As a socially responsible
corporate citizen, the Company is taking various initiatives primarily in the
areas of education and health.
On 6th March 2006, the Company has taken a giant step towards Corporate Social
Responsibility by establishing HYUNDAI MOTOR INDIA FOUNDATION. The Foundation
seeks to address the expectation of the society and extend support in the field
of health, education, vocational training, road safety, environment protection,
etc.
The Company in association with the Institute of Road Traffic Association and
Delhi Traffic Police launched the Hyundai Traffic Squad programme to create and
promote road safety awareness and assist the Delhi Traffic Police in managing
traffic systems in Delhi.
The Company has contributed a sum of Rs.1 Crore to the Tamilnadu Chief
Minister's Public Relief Fund to help the State which was badly affected due to
floods causing innumerable loss and destruction of property.
The Company has expanded its export sales to nearly about 60 countries.
In African markets, the Company has witnessed an increase of 112% in sales.
The Company is planning to start export of Getz model shortly. The
Company is also considering spreading its wings to
PRESS CLIPPINGS
4th July, 2007
Hyundai Motor
Santro, the ‘Sunshine Car’ which has brought happiness and cheer to over a
million Indian car buyers since its launch in late 1998 will now provide the potential
owners a more economical and environment friendly drive. The dual fuel Santro
will use Compressed Natural Gas (CNG) as an alternate fuel. The Santro comes
with a 1.1 litre petrol engine which without any modification is compatible
with CNG.
Subject has tied up with the leading CNG kit supplier Minda Auto Gas Ltd to
supply the CNG kits. The advanced kit is not only safe but with an advanced
Lambda control system ensures that it meets the Euro III emission norms. To
ensure that there are no flaws in the fitment process, Subject has an exclusive
arrangement with leading fitment specialist NGVI of Korea to retro fit the kits
on the Santro model.
Initially, the CNG Santro will be initially launched in
The CNG Santro would have a manual selector switch, which would enable the
driver to easily switch from gasoline to CNG and vice versa. The on-board CNG
cylinder has a capacity of approximately 12 kg and the running cost on CNG for
the Santro is estimated to be in the region of Rs 1/km or even less depending
on the driving cycle. This leads to a savings of almost 60 – 70% for the
consumer. The cost of the CNG Santro (XK, non-AC) is Rs 325,361 (ex-showroom,
Commenting on the launch of the CNG Santro, Arvind Saxena VP – Marketing and
Sales Hyundai Motor India said “CNG has established itself as an eco-friendly
and economical fuel and HMI will now offer this choice of fuel to its Santro
customers. We feel that this will increase the attractiveness of the Santro as
it will considerably bring down the running cost. Also the fuel is eco-friendly
which adds to its attractiveness”
About HMIL
Subject is a wholly owned subsidiary of Hyundai Motor Company,
Hyundai Motor India, continuing its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 299,513 vehicles in
calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the
domestic market it clocked a growth of 19.1 percent a compared to 2005, with
186,174 units, while overseas sales grew by 17.4 percent, with exports of
113,339 units.
Subject’s fully integrated state-of-the-art manufacturing plant near Chennai
boasts some of the most advanced production, quality and testing capabilities
in the country. In continuation of its investment in providing the Indian
customer global technology, Subject is setting up its second plant, which will
produce an additional 300,000 units per annum, raising Subject’s total
production capacity to 600,000 units per annum by end of 2007.
Subject is investing to expand capacity in line with its positioning as HMC’s
global export hub for compact cars. Apart from expansion of production capacity,
Subject plans to expand its dealer network, which will be increased from 183 to
250 this year. And with the company’s greater focus on the quality of its
after-sales service, subject’s service network will be expanded to around 1,000
in 2007.
The year 2006 has been a significant year for Hyundai Motor India. It achieved
a significant milestone by rolling out the fastest 300,000th export car.
Hyundai exports to over 65 countries globally; even as it plans to continue its
thrust in existing export markets, it is gearing up to step up its foray into
new markets. The year just ended also saw Hyundai Motor India attain other
milestones such as the launch of the Verna and yet another path-breaking record
in its young journey by rolling out the fastest 10,00,000th car.
The Hyundai Verna has bagged some of the most prestigious awards starting with
the title of "Car of the Year 2007" by India's leading automotive
publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV
Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar
Auto awards and ‘Performance Car of the Year 2007’ from Business Standard
Motoring.
Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from
Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared
the Tucson as the ‘SUV of The Year 2006’.
Subject has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices.
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 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. 40.30 |
|
|
1 |
Rs. 82.97 |
|
Euro |
1 |
Rs. 55.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|