MIRA INFORM REPORT

 

 

Report Date :

12.06.2007

 

IDENTIFICATION DETAILS

 

Name :

HANIL LEAR INDIA PRIVATE LIMITED

 

 

Formerly Known As :

HANIL AUTO INTERIORS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

A6 and A7, SIPCOT Industrial Park Irrungattukottai, Sriperumbudur, Taluk Kancheepuram District, Tamilnadu-602105

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

06.06.1997

 

 

Com. Reg. No.:

18-38364

 

 

CIN No.:

[Company Identification No.]

U35999TN1997PTC038364

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of Parts and Accessories for Motor Vehicle and their engines.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2088000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

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

 

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

 

 

LOCATIONS

 

Registered Office :

A6 and A7, SIPCOT Industrial Park Irrungattukottai, Sriperumbudur, Taluk Kancheepuram District, Tamilnadu-602105

Tel. No.:

91-44-47100421

Fax No.:

91-44-47100050

E-Mail :

pchandra@hlipl.com, vssowrirajan@gmail.com

 

 

Head Office :

136, Anako Nam Road, Namachivaya Puram, Tiruvallur, Tamilnadu-602105,

Tel. No.:

91-4116-258478/ 258479/ 258481/ 258483

Fax No.:

91-4116-258400/ 258477

E-Mail :

hlipl@md3.vsnl.net.in

 

 

DIRECTORS

 

Name :

Mr. Ratindra Puri

Designation :

Director

Address :

A 195, New Friends Colony, New Delhi-110065

Date of Birth/Age :

10.12.1945

Date of Appointment :

25.05.1998

 

 

Name :

Mr. N A Raman

Designation :

Director

Address :

282C, 38th Cross, 8th Block, Jayanagar, Bangalore-82

Date of Birth/Age :

23.09.1955

Date of Appointment :

29.07.1999

 

 

Name :

Mr. Jeffery Mann

Designation :

Director

Address :

19, Nassim Hill, Nassim Woods, # 02-01, Singapore-258482

Date of Birth/Age :

17.12.1948

Date of Appointment :

15.03.2001

 

 

Name :

Mr. H K Kim

Designation :

Director

Address :

3C, Southgate, 17, Kasturi Rangan Road, Alwarpet, Chennai-600018

Date of Birth/Age :

26.04.1954

Date of Appointment :

15.03.2001

 

 

Name :

Mr. I S Yong

Designation :

Director

Address :

Kisan 3RI, 1L-Dong Myun Pochen, Kyunggi-Do, South Korea

Date of Birth/Age :

01.12.1966

Date of Appointment :

24.09.2003

 

 

Name :

Mr. M H God

Designation :

Director

Address :

Flat E, TVH Varsha No.24, First Avenue, Indira Nagar, Chennai-600020

Date of Birth/Age :

11.10.1960

Date of Appointment :

13.01.2004

 

 

Name :

Mr. Suk Chul Kim

Designation :

Director

Address :

504-1001, Galsan-Dong, Dong Gu, Anyong-ST, Kyeongi Do-683804, Korea

Date of Birth/Age :

09.04.1954

Date of Appointment :

27.03.2006

 

 

KEY EXECUTIVES

 

Name :

Mr. P Chandrasekar

Designation :

Company Secretary

Address :

1 Mayor Sambandam Colony, Kodambakkam, Chennai-600024

Date of Birth/Age :

08.05.1957

Date of Appointment :

13.01.2004

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Mr. Shibu Kuriakose

1

Mr. Mohammed Rafeek T M

1

Hanil E Hwa

4364640

Lear Corporation

4364640

Total

8729282

 

As on 31.03.2006

Names of Shareholders

No. of Shares

Percentage of Holding

Foreign holdings

 

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Parts and Accessories for Motor Vehicle and their engines.

 

 

Products :

v      Seat Assemblies

v      Door Trims

v      Head Linning

 

 

GENERAL INFORMATION

 

Bankers :

Indian Overseas Bank, Large Advances Branch, Irungattukottai-602105

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S R Batliboi & Associates

Chartered Accountants

Address :

TPL House, Second Floor, No.3, Cenotaph Road, Teynampet, Chennai-600018, Tamilnadu, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

14000000

Equity Shares

Rs.10/- each

Rs.140.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8729282

Equity Shares

Rs.10/- each

Rs.87.293 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

87.293

87.293

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

434.868

335.568

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

522.161

422.861

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

50.208

2] Unsecured Loans

 

140.526

0.000

TOTAL BORROWING

 

140.526

50.208

DEFERRED TAX LIABILITIES

 

18.996

0.000

 

 

 

 

TOTAL

 

681.683

473.069

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

302.347

252.101

Capital work-in-progress

 

65.940

11.268

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.000

0.774

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

252.579

252.194

 

Sundry Debtors
 

428.325

443.772

 

Cash & Bank Balances
 

10.443

29.141

 

Other Current Assets
 

14.000

44.000

 

Loans & Advances
 

104.007

49.484

Total Current Assets
 

809.354

818.591

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

494.196

546.064

 

Provisions
 

3.154

65.440

Total Current Liabilities
 

497.350

611.504

Net Current Assets
 

312.004

207.087

 

 

 

 

MISCELLANEOUS EXPENSES

 

1.392

1.839

 

 

 

 

TOTAL

 

681.683

473.069

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

3264.96

2837.51

Other Income

 

0.000

0.000

Total Income

 

3264.96

2837.51

 

 

 

 

Profit/(Loss) Before Tax

 

200.05

284.32

Provision for Taxation

 

70.89

110.85

Profit/(Loss) After Tax

 

129.16

173.47

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

 

 

 

 

Manufacturing Expenses

 

 

 

 

Administrative Expenses

 

 

 

 

Raw Material Consumed

 

 

 

 

Purchases made for re-sale

 

 

 

 

Consumption of stores and spares parts

 

 

 

 

Increase/(Decrease) in Finished Goods

 

3064.91

2553.19

 

Salaries, Wages, Bonus, etc.

 

 

 

 

Managerial Remuneration

 

 

 

 

Payment to Auditors

 

 

 

 

Interest

 

 

 

 

Insurance Expenses

 

 

 

 

Power & Fuel

 

 

 

 

Depreciation & Amortization

 

 

 

 

Other Expenditure

 

 

 

Total Expenditure

 

3064.91

2553.19

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

3.955

6.11

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

6.12

10.02

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

17.99

26.55

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.38

0.67

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.22

1.56

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.63

1.34

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8 Particular for creation or modification of charges 

Name of the company

HANIL LEAR INDIA PRIVATE LIMITED

Presented By

Director

1) Date and description of instrument creating the change

22.01.2000 Deposits of title deeds for creation of equitable mortgage ion land and building – Deposit of title deeds confirmation

22.01.2000 – Term Loan Agreement

22.01.2000 – Letter of hypothecation

2) Amount secured by the charge/amount owing on the securities of charge

Term Loan : Rs.110.000 millions

Cash Credit : Rs.45.000 millions

Total : Rs.155.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Equitable mortgage of factory land and building and plant and machinery situated at No.136, Arakkonam Road, Thodukadu, Pin 602105 for total amount of Rs.155.000 millions

 

all the raw materials, work in process, finished goods, stores present and future

4) Gist of the terms and conditions and extent and operation of the charge.

Term loan interest PLR + 1.5% p.a. + interest tax

Repayable in 20 quarterly installments of Rs.5.500 millions each commencing from January 2001

Cash credit interest PLR + 1.5% p.a.+ Interest tax

Corporate Guarantee of the promoter companies i.e. Lear Corporation, USA and Hanil E Hwa Company Limited, Korea

5) Name and Address and description of the person entitled to the charge.

Indian Overseas Bank

Large Advances Branch

Irungattukottai-602105

6) Date  and brief description of instrument modifying the charge

Hypothecation of book debts dated 06.12.2004

Letter of hypothecation (in case of open advances only) dated 06.12.2004

Letter of hypothecation (For securing machineries/ Vehicles/ Goods/ Book Debts) dated 06.12.2004

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

With the closure of term loan of Rs.110 millions and enhancement of Cash Credit limit from Rs.45.000 millions into cash credit / WCDL limit of Rs.100.000 millions , the total limit stands revised from Rs.155.000 millions to Rs.100.000 millions. Following are the existing and revised limits :

(Rs. In millions)

Nature of facility

Existing limit

Revised limit

Term loan

110.000

Nil

Cash credit / WCDL

45.000

100.000

Total limit

155.000

100.000

 

The rate of interest for the cash credit at 8.75% p.a. (BPLR-2.25%) with monthly rests or such rate/ rates of interest as the Bank may specify from time to time and in the case of WCDL, rate of interest will be at the prevailing rate of nterest for P1+rated CPs for CPs of 3 months tenor as made available by reuters plus 1% or such rate/ rates of interest as the Bank may specify from time to time;

 

The above reied limit of Rs.100 millions is secured by wa y of hypothecation and charge on all the raw materials, work in progress, finished goods, stores and spares, present and future wherever situate and all the present and future book debts of the company

 

The corporate guarantee of the promoter companies i.e. Lear corporation, USA and Hanil E Hwa Company Limited, Korea stands released;

 

All other terms and condtions remain unchanged

 

The registered office of the company has changed from 136, Arakonam Road, Thodukadu Village, Thiruvallur, Tamilnadu-602105, India to

 

A6 and A7, SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur Taluk, Kancheepuram District, Tamilnadu-602105 with effect from 29.11.2004.

 

Website Details :

 

Company Profile

 

Subject is a joint venture company between Lear Corporation, USA and Hanil E Hwa, Korea for manufacturing Automotive Interiors in India

 

Milestone


June 1998 - Incorporation of Hanil Lear India Private Ltd


Sept 1998 - Commercial Production of Santro begins

 

Products


Hanil E Hwa is a manufacturer of seating and interior products in Korea. Has a market share of over 45% with many registered design patents

 

 

Facilities

 

v      Hot forming Press,Vacuum Forming Press and SPM’s for Headliners

v      Cold forming Press for Floor carpet

v      High frequency welding for Door Trims & Sunvisors.

v      Ultrasonic welding for Sunvisors

v      Hot forming press for Luggage Mat hardboard

 

Subject is a joint venture company between Lear Corporation, USA and Hanil E Hwa, Korea for manufacturing Automotive Interiors in India

 

Lear Corporation, a Fortune 150 company based in Michigan, USA is the world’s largest independent supplier of automotive interior systems. Lear corporation has more than 120,000 people working in about 300 facilities in 33 countries worldwide.

 

Hanil E Hwa is a manufacturer of seating and interior products in Korea. Has a market share of over 45% with many registered design patents.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.40.91

UK Pound

1

Rs.80.46

Euro

1

Rs.54.60

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

53

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions