MIRA
INFORM REPORT
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Report Date : |
24.07.2007 |
IDENTIFICATION DETAILS
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Name : |
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
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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 12000000 |
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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
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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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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 :- ·
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· Sharjah ·
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DIRECTORS
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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 |
KEY EXECUTIVES
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Name : |
Mr. G. N. Gauba |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2007
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Category Code |
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) |
Shareholding of
Promoter and Promoter Group |
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1 |
Indian |
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(a) |
Individuals / Hindu / Undivided Family |
30241282 |
12.88 |
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(b) |
Bodies Corporate |
50790240 |
21.62 |
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Sub-total (A)
(1) |
81031522 |
34.50 |
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2 |
Foreign |
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(a) |
Bodies Corporate |
87375780 |
37.20 |
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Sub-total (A) (2 |
87375780 |
37.20 |
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Total
Shareholding of Promoter and Promoter Group (A)= (A) (1) +
(A) (2) |
168407302 |
71.70 |
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(B) |
Public
Shareholding |
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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 |
0.00 |
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(c) |
Foreign Institutional Investors |
14013318 |
5.97 |
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Sub-total (B)
(1) |
22251331 |
9.47 |
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2 |
Non-Institutions |
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(a) |
Bodies Corporate |
17439263 |
7.42 |
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(b) |
Individuals |
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I. Individual shareholders holding nominal share capital up to Rs.
0.100 million |
11664309 |
4.97 |
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II. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
14270854 |
6.07 |
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(c) |
Any other (Specify) |
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(i) Overseas Bodies Corporate |
738000 |
0.31 |
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(ii) Non Residential Indian |
102033 |
0.04 |
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(iii) Trusts |
3375 |
0.00 |
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(iv) Clearing Members |
12733 |
0.00 |
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Sub-total (B)
(2) |
44230567 |
18.82 |
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Total Public
Shareholding (B) = (B) (1) +
(B) (2) |
66481898 |
28.30 |
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GRAND TOTAL ( A
+ B + C ) |
234889200 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Auto Ancillaries, Wiring Harnesses, Components and High Tension Cords. |
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Products : |
Ř
Wiring
Harness Components Housings Terminals Caps & Sleeves Clamps & Binders Fuse Boxes Noise Suppressers Ř
Electrical
Distribution System Wiring Harnesses Lead Wires High Tension Cords |
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Exports : |
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Countries : |
Europe and other parts of the world |
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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 |
GENERAL INFORMATION
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Customers : |
OEM’s |
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No. of Employees : |
5200 |
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Bankers : |
Ř
State Bank of Ř ICICI Bank Limited Ř UTI Bank Limited Ř Bank of Tokyo Mitsubishi Limited Ř HDFC Bank Limited Ř Citibank N. A. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountants |
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Address : |
P-1, Aditya vihar, Saidulajab, Opposite D-Block, Saket, |
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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 activitties, kaizen, collaborative design and development and global benchmaking. SWS is aiming to ralize at global level, the best quality at the most competitive cost and production in optimum locations. To achieve this goal, SWS conducts benchmaking of three levels company, plant and associates. This global benchmaking has raised radically competitive environment in MSSL at all levels. Ř Saks Ancillaries Limited Ř Motherson Air Travel Agencies Limited Ř Motherson Advance Strategic Solutions Limited Ř Sumi Motherson Innovative Engineering Limited Ř Sumi Motherson Integrated Technologies Limited Ř Motherson Techno Tools Limited Ř Motherson Sehgal Cables Ř Vaaman Auto Industries Ř Ganapati Auto Industries Ř Motherson Auto Private Limited Ř Motherson Sumi Infotech and Designs Limited Ř Aqatec Electricals Limited Ř Million Miles Limited Ř S. J. Max Golden Company Limited Ř Motherson Triplex Tools Limited Ř Motherson Compounds Private Limited Ř Sri Cables Ř Motherson Sehgal Cables Ř Saks Ancillaries Limited |
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Subsidiaries / Joint
Ventures : |
Ř
MSSL Ř
MSSL Ireland Private Limited Ř
Motherson Electrical Wires Ř
Wire Lanka Private Limited Ř
Draexlmaier & Motherson Ř
Electrical Systems India Limited Ř
Motherson PUDENZ Ř
WICKMANN Limited Ř
MSSL Hag Toolings Limited (FZC) Ř
Kyungshin Industrial Motherson Limited Ř
Schefenacker Motherson Limited Ř
Woco Motherson Limited (FZC) Ř
Sumi Motherson Innovative Engineering Limited Ř
Motherson Advance Polymers Limited Ř
CTM India Limited Ř
MothersonSumi Infotech and Designs Limited Ř
Motherson Techno Tools Limited Ř
Hag Kunststofftechnik GmbH Ř
ABC Designs Private Limited Ř
Anest Iwata Motherson Limited Ř
Webasto Motherson Sunroofs Limited Ř
G and Ř
Global Environment Management Ř
MSSL GB Limited Ř
MSSL [S] Private Limited Ř
MSSL GmbH Ř
MSSL
Mauritius Holdings Limited Ř
MSSL
Handels GmbH Ř Mothersonsumi Reiner GmbH Ř
Lisa Draexlmaier GmbH, Ř
Wilhelm Pudenz GmbH, Ř
Schefenacker International AG and Company Ř
Kyungshin Industrial Company Ř
WOCO Franz Josef Wolf Holding GmbH |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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300000000 |
Equity shares |
Rs. 1.00 Each |
Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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234900000 |
Equity shares |
Rs. 1.00 Each |
Rs. 234.900 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
234.900 |
234.900 |
234.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2774.900 |
1987.300 |
1506.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3009.800 |
2222.200 |
1741.000 |
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LOAN FUNDS |
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1] Secured Loans |
946.400 |
925.700 |
496.200 |
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2] Unsecured Loans |
3033.700 |
2801.400 |
226.200 |
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TOTAL BORROWING |
3980.100 |
3727.100 |
722.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6989.900 |
5949.300 |
2463.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3249.500 |
2419.600 |
1970.000 |
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Capital work-in-progress |
68.200 |
220.400 |
99.400 |
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INVESTMENT |
1300.200 |
332.700 |
159.400 |
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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 |
1204.800
|
880.100 |
632.200 |
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Sundry Debtors |
1686.200
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918.100 |
569.400 |
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Cash & Bank Balances |
365.900
|
1617.400 |
26.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1872.000
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1856.000 |
850.000 |
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Total
Current Assets |
5128.900
|
5271.600 |
2078.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1655.900
|
1250.100 |
1004.900 |
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Provisions |
1685.800
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1800.100 |
838.600 |
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Total
Current Liabilities |
3341.700
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3050.200 |
1843.500 |
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Net Current Assets |
1787.200
|
2221.400 |
234.600 |
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MISCELLANEOUS EXPENSES |
584.800 |
755.200 |
0.000 |
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TOTAL |
6989.900 |
5949.300 |
2463.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
12384.700 |
8123.000 |
6368.700 |
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Other Income |
262.500 |
278.700 |
95.300 |
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Stock Adjustments |
90.200 |
102.200 |
96.000 |
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Total Income |
12737.400 |
8503.900 |
6560.000 |
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Profit/(Loss) Before Tax |
1414.500 |
937.500 |
849.400 |
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Provision for Taxation |
272.800 |
110.800 |
228.500 |
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Profit/(Loss) After Tax |
1141.700 |
826.700 |
620.900 |
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Expenditures : |
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Raw Materials |
6486.500 |
4080.400 |
3051.700 |
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Excise Duty |
1572.500 |
988.700 |
833.200 |
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Power and Fuel Cost |
215.200 |
171.600 |
129.100 |
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Other Manufacturing Expenses |
542.100 |
400.000 |
335.400 |
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Employee Cost |
853.200 |
656.700 |
496.100 |
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Selling and Administration Expenses |
701.800 |
546.400 |
391.500 |
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Miscellaneous Expenses |
248.700 |
192.000 |
185.400 |
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Interest and Financial Charges |
255.500 |
173.300 |
24.000 |
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Depreciation |
447.400 |
357.300 |
264.200 |
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Total Expenditure |
11322.900 |
7566.400 |
5710.600 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
Debt-Equity Ratio
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1.48
|
1.13 |
0.45 |
Long Term Debt-Equity Ratio
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1.46
|
1.11 |
0.44 |
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Current Ratio |
|
1.62
|
1.50 |
1.18 |
TURNOVER RATIO
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Fixed Assets |
|
2.47
|
2.13 |
2.23 |
Inventory
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|
11.67
|
10.48 |
11.55 |
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Debtors |
|
9.24
|
10.39 |
11.67 |
Interest Cover Ratio
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6.54
|
6.41 |
36.39 |
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Operating Profit
Margin |
(%) |
17.10
|
18.07 |
17.86 |
Profit before Interest and Tax
Margin
|
(%) |
13.48
|
13.67 |
13.71 |
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Cash Profit
Margin |
(%) |
12.83
|
14.58 |
13.90 |
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Adjusted Net
Profit Margin |
(%) |
9.22
|
10.18 |
9.75 |
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Return On Capital
Employed |
(%) |
28.60
|
28.71 |
39.07 |
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Return On Net
Worth |
(%) |
43.49
|
41.53 |
40.20 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs. 135.75 |
|
Low |
Rs. 133.00 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated in December 1986, Subject by Motherson Auto
Private Limited (MAPL), K L Sehgal, V C Sehgal and associates with technical
and financial collaboration with Sumitomo Wiring Systems (SWS) and Nissho Iwai
Corporation (NIC),
It manufactures integrated wiring harnesses (IWH) for the automotive and
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 and assemblies 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 March 1993, it entered the capital market and in December 1993 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) Private Limited, MSSL Hag Tolings Limited(FZC),
MSSL GB Limited, MSSL GmbH, Draexlmaier and 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 and Schubert Motherson Sumi Systems in joint venture with Kromberg and
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 and Company,
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 and 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 subsidiary company
with effect from 1st June 2004.
In May 2005 the company has incorporated a new subsidiary 'Motherson Sumi
Reiner Gmbh', in
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 and 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.
The company is in trade terms with:-
Ř Bajaj Auto Limited
Ř Bharat Earth
Movers Limited
Ř Daewoo Motors
India Limited
Ř Eicher Limited
Ř Ford India Limited
Ř Fiat Auto India
Limited
Ř Escorts
Construction Equipments Limited
Ř International
Tractors
Ř Hyundai Motors
Ř Mercedes Benz
India Limited
Ř Mahindra and
Mahindra Limited
Ř Kinetic
Engineering Limited
Ř Honda Siel Cars
Ř Philips India
Limited
Ř WKH India Limited
Ř Wipro GE Medical
Systems Limited
Ř Panasonic
Ř WOCO Franz Josef
Wolf and Company,
Ř Sumitomo Wiring
Systems Limited
Ř Hag Handles
Ř Kautex-Textron
Ř Kikert AG
Ř Piaggio
Ř Taylor Dyne
Ř Trodat
Ř Wilhelm Pundenz
Ř Roche Diagnostics
Ř Endress + Hauser
Ř Hewlett Packard
Ř Alok Leasing
Private Limited
Ř Celloplast
Industries
Ř Hytech Engineers
Ř Halonix Industries
Private Limited
Ř Mega Rubber
Technical Private Limited
Ř Paragon Autotech
Products Private Limited
Ř Plastometal
Engineering (
Ř SSI Rubbers
Ř Super Screws
Private Limited
Ř United Industries
Ř Vidya Rubber
Ř Sujo Plast
Ř V. M. Enterprises
Ř Tubeflex
Ř Vankusha Rubber
Products
Ř Vinay Traders
Ř Numeritech
Engineers (
Ř Electro Flash
Ř Sankhala
Industries
Ř Priya Plastics
Ř S. C. J. Plastics
Ř Bafna Packaging
Private Limited
Ř Paper Pack
Industries
Ř Concept
Engineering (
Ř Kund Kund Polymers
Ř Interface
Microsystems
Ř Aglow Engineers
Ř Agrahan Engineers
Ř Ashok Insulation
Ř Bharti Wood Works
Ř Cello Plast
Industries
Ř Concept
Engineering
Ř Excel Glass Fibre
Ř Grand Industries
Ř Hytech Engineers
Ř National
Electronics Corporation
Ř Numeritech
Engineers (
Ř Paragon Auto
Industries
Ř Pranay Insulations
Ř Sakshi Polytubes
Private Limited
Ř SGR Elastomers (
Ř Alfa Industries
Ř Shriram
Engineering
Ř Sree Raja
Ganapathy Industries
Ř Sakthi Springs
Forms (Private) Limited
Ř Tritech
Engineering
Fixed Assets
v
v
Building
v
Plant and Machinery
v
Furniture
v
Fixtures
v
Office Equipments
v
Computers
v
Vehicles
Operations:
The Company recorded a turnover of Rs.10, 812.19 millions during the year
compared to Rs.7, 134.29 millions 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.
Exports:
The Company's exports during the year have grown to Rs.2, 436 millions
from Rs.1, 533 millions, 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 Europe, to constantly service the customers as well
as scan the markets for growth.
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.
Changes in capital
structure:
During the year under review the authorized share capital of the Company has
been increased from Rs.353, 000,000 comprising 353,000,000 equity shares of
Re.1 each to Rs.803, 000,000 comprising 803,000,000 equity shares of Re.1each
pursuant to merging of authorized share capital of Motherson Advance Polymers
Limited with the Company's authorized share capital pursuant to the order of
the Honorable High Court of Judicature of Delhi.
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 Private
Limited and Motherson Investments Private 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 Private 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 Private Limited., 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) Private Limited., MSSL (GB) Limited. (through MSSL
Mideast), Motherson Sumi Wiring System Limited (FZC) (through MSSL Mideast), G
and
The Company has also incorporated two more subsidiaries namely Motherson
Elastomers Private. Limited. And Motherson Investments Private. Limited.
Through MSSL Australia Private Limited, which is a subsidiary of MSSL S Private
Limited (80% held by the Company), in February 2007 to take over the assets and
business of Empire Rubber (A division of Huon Corporation Private 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.
The Company has been continuously working towards enhancing its research
and development capabilities. The Company has established new engineering
centre at
The Company has been keeping pace with the technological advances by
implementation of state-of-the-art manufacturing best practices.
Research and Development was carried out for the development of the new models
for several Indian and overseas customers.
In process engineering the Company introduced a silicon sealing machines
for earth terminals.
Benefits derived as a result of
the above R and D:
The benefits derived as a result of the above research and development
programmes were in the form of winning new businesses, building confidence of
existing customer and reducing the time to market.
Future plan of actions:
In future we intend to invest more resources in developing and acquiring
technology for future vehicle thus building the capability to cater to the
expectation of our customers.
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 and 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 marks. 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 and
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 specialized
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 Private Limited. 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.
Machined metal components, rubber components, mirrors and others:
Machined metal components business received a renewed focus with forming
of a new division Motherson Innovative Engineering Solutions (MINES). MINES
moved from a single customer model to a multi customer - multi segment model. A
significant addition has been introduction of components for automotive
applications.
Other product groups of the company, namely rubber, mirrors, fuse and
fuses related components have done well and the performance of these businesses
has been discussed in details under 'Performance of Subsidiaries and Joint
Ventures'.
Support
subsidiaries:
MSSL GmbH, Germany (100% subsidiary of MSSL through MSSL Mideast): MSSL GmbH
located at Gelnhausen near Frankfurt, acts as the holding company and corporate
office providing support to the European entities. During the year 2006, MSSL
GmbH has charged to Profit and Loss Account an amount of Euro 626K (approx.)
incurred on design approvals and drawings for the building proposed to be
constructed on the land purchased during the year.
MSSL Mauritius Holdings Limited. [MMHL],
MSSL Ireland Private Limited. [MSSL-IR],
MSSL (S) Private Limited.,
MSSL Handels GmbH,
Foreign Currency Convertible Bonds (FCCB): During the year 2005-06, the
company had raised long term funds of Euro 50.30 million, by way of Foreign
Currency Convertible Bonds (FCCBs). These Bonds are convertible into shares at
the option of Bondholders within the tenure of the Bonds at a share price of
Rs.111.15 per share at a fixed exchange rate of Euro1 = Rs.52.01. As per
current guidelines, these funds can be utilized either for expansion of the
group's manufacturing operations in
In consistence with the conservative policy being followed by MSSL, the
premium payable on redemption on bonds on 16th July 2010, in case the Bonds are
not converted into shares, is being amortized as charge to P/L account as
Finance Cost, apart from amortization of issue expenses. In addition, the
exchange fluctuation on the principal amount together with the amortized amount
of premium is also accounted as Gain/(Loss) on exchange fluctuations. It may be
noted that there is no cash outflow either on account of charge to P/L account
in respect of amortized amount of premium or exchange fluctuation. This amount,
net of tax, shall be added back to P/L or reserves in case of conversion.
Raw material
cost:
The raw material costs in percentage terms also vary with the changes in
product mix, e.g.: modules use higher bought-out content. During the year price
of copper, which is one of the key material used by wiring harnesses, had
unprecedented rise. The company makes continuous efforts to reduce the raw
material costs through VA/VE, cutting wastages year on year and by alternate
sourcing.
WEBSITE DETAILS
The Sumi Motherson Group is a focused,
dynamic and progressive group providing customers with value added products,
services and full system solutions.
We are joint venture specialists, providing customized integrated
solutions combining multiple technologies supported by our 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 and
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 and Software Development
Sumitomo Wiring Systems Limited, Japan
Miyazu Seisakusho Company Limited, Japan
3. Polymer and Tooling
Injection Molding
Sumitomo Wiring Systems Limited, Japan
Rubber and Liquid Silicon Rubber Components
WOCO
Industrietechnik GmbH, Germany
Injection Molding Tools
Sumitomo Wiring Systems Limited, Japan
Centre Tooling Mold Makers Private. 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 Private Limited
A Basic Concepts and Design Private 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 (
GandS
Kunststofftechnik is a subsidiary of Motherson Sumi Systems Limited located at
Schwäbisch Gmünd (
GandS 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 Private Limited, a Sumi
Motherson Group Company and ECompost Private 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 and Engineering
(A
Division of MSSL)
Started in 1995, MATE specializes 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 and 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:
v
v Solutions for
Software Companies
Engineering and Design Services
The Engineering and
Design Services division of MIND is certified for ISO 9001:2000.
It specializes 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) and
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 specializes 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 specializes in Design and Development of Wiring Harnesses. The design
facilities include designing on Unigraphics, Capital - H and Pro E. The company
also has complete Proto Building Facilities.
Being located in Europe, MSSL Ireland is
able to provide prompt design and engineering support to customers in the
region.
MSSL Mideast FZE is
a 100% subsidiary of Motherson Sumi Systems Limited. Located in SAIF Zone,
Sharjah, the company specializes 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. 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 |
YES |
|
--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 |
|