MIRA INFORM REPORT

 

 

Report Date :

04.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SONI AUTO AND ALLIED INDUSTRIES LIMITED

 

 

Registered Office :

Plot No. M-19, VI Phase, Adityapur Industrial Area, Gamharia, Jamshedpur – 832 108, Jharkhand

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

19.10.1984

 

 

Com. Reg. No.:

03-2045

 

 

CIN No.:

[Company Identification No.]

U50300JH1984PLC002045

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RCHS00633D

 

 

PAN No.:

[Permanent Account No.]

AAECS3393K

 

 

Legal Form :

A Closely Held Public Limited Liability Company 

 

 

Line of Business :

Manufacturer and Exporters of all kind of Leaf Springs and Leaves. 

 

 

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 69300

 

 

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 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 / Administrative Office / Works :

Plot No. M-19, VI Phase, Adityapur Industrial Area, Gamharia, Jamshedpur – 832 108, Jharkhand

Tel. No.:

91-657-3092455/ 3292455

Fax No.:

91-657-2202371

E-Mail :

soniauto@satyam.net.in  , essc@cal.vanl.net.in

Website :

http://www.sonicoleafsprings.com

 

 

Export Office :

467 & 468, Marshall House, 4th Floor, 25, Strand Road, Kolkata - 700 001, West Bengal, India

Tel. No.:

91-33-22307828

Mobile No.:

91-9339730656

Fax No.:

91-33-22307828

E-Mail :

enquiry@sonicoleafspring.com , essc@cal.vsnl.net.in

 

 

DIRECTORS

 

Name :

Mr. Bhajanlal A. Jhunjhunwala

Designation :

Director

Address :

67/ 45B, Strand Bank Road, Strand Road, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

17.12.1943

Date of Appointment :

30.11.1995

 

 

Name :

Mr. Rajeev Jhunjhunwala

Designation :

Managing Director

Address :

67/ 45B, Strand Bank Road, Strand Road, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

30.01.1969

Date of Appointment :

30.11.1995

 

 

Name :

Ms. Pushpa Devi Jhunjhunwala

Designation :

Director

Address :

E-22, Nishant Vihar Colony, Adityapur, Saraikella – Kharsawan, Jamshedpur, Jharkhand 831 013, India

Date of Birth/Age :

02.07.1949

Date of Appointment :

01.03.2005

 

 

Name :

Ms. Preeti Jhunjhunwala

Designation :

Director

Address :

E-22, Nishant Vihar Colony, Adityapur, Saraikella – Kharsawan, Jamshedpur, Jharkhand 831 013, India

Date of Birth/Age :

04.11.1971

Date of Appointment :

01.03.2005

 

 

Name :

Mr. Bhagwati Prasad Bagla

Designation :

Director

Address :

218 B, Chittaranjan Avenue, Kolkata – 700 006, West Bengal,  India

Date of Birth/Age :

15.08.1933

Date of Appointment :

30.11.1995

 

 

Name :

Mr. Rajib Kumar Lalwani 

Designation :

Director

Address :

Udita, Flat No. UDO 30407, 1050 / 1, Survey Park, Kolkata – 700 075, West Bengal, India

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. Bhajanlal Jhunjhunwala

 

8844

Mr. Rajeev Jhunjhunwala

 

3368

Ms. Pushpa Devi Jhunjhunwala

 

4371

Ms. Preeti Jhunjhunwala

 

5010

Ms. Yamini Khandelwal

 

42500

Ms. Anupama Asopa

 

150

Mr. Balkishan Asopa

 

175

Ms. Priyaranjan Dutta

 

180

Mr. Padam Pat Bagla

 

150

Ms. Poonam Devi Bagla

 

150

Mr. Pankaj Nayan Bagla

 

180

Mr. Prakash Bagla

 

175

Bhanjanlal Jhunjhunwala (HUF) and Others 

 

10000

A. S. Confin Private Limited

 

6600

P. P. Developers Private Limited

 

4000

P. P. Suppliers and Agencies Private Limited

 

1600

 

Names of Shareholders

 

Percentage of Shareholding

 

 

 

Bodies Corporate

 

14.00

Directors and Relatives of Directors

 

86.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporters of all kind of Leaf Springs and Leaves. 

 

 

Products :
  • Leaf Springs and Leaves 

 

 

Exports :

 

Products :

Leaf Springs and Leaves 

Countries :

Australia, Ireland, United States of America

 

 

GENERAL INFORMATION

 

No. of Employees :

--

 

 

Bankers :

Union Bank of India

Main Branch, Jamshedpur Kamani Centre, Bistupur, Jamshedpur, Jharkhand, India 

 

 

Facilities :

Secured Loan

(Rs. in millions)

Particular

2005

2004

Union Bank of India C/C A/c

10.285

8.221

Union Bank of India Term Loan II

(secured by hypothecation of stock bill all and all other movable assets of the company)

0.235

0.309

Union bank of India Term Loan I

0.000

0.059

Union Bank of India Term Loan III

0.972

0.000

Citi Corp Finance (I) Limited

0.966

0.000

ICICI Bank Limited

0.306

0.000

Total

12.764

8.588

 

Unsecured Loan

(Rs. in millions)

Particular

2005

2004

From Directors / Shareholders

3.807

3.847

Total

3.807

3.847

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

R. K. Dua and Company

Chartered Accountants

Address :

19, Ram Mandir Area, 2nd Floor, Opp Punjab National Bank, Bistupur, Jamshedpur – 831 001, Jharkhand, India

Tel. No.:

91-657-2756059/ 2756061

Fax No.:

91-657-2756060

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

125000

Equity Shares

Rs. 100/- each

Rs. 12.500 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

91340

Equity Shares

Rs. 100/- each

Rs. 9.134 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

9.134

8.454

2] Reserves & Surplus

 

8.183

4.211

NETWORTH

 

17.317

12.665

LOAN FUNDS

 

 

 

1] Secured Loans

 

12.764

8.588

2] Unsecured Loans

 

3.807

3.847

TOTAL BORROWING

 

16.571

12.435

 

 

 

 

TOTAL

 

33.888

25.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

15.700

12.669

Capital work-in-progress

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

13.168

9.929

 

Sundry Debtors
 

11.946

5.109

 

Cash & Bank Balances
 

1.092

0.416

 

Other Current Assets
 

0.356

0.348

 

Loans & Advances
 

0.552

0.729

Total Current Assets
 

27.114

16.531

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities & Provisions
 

8.928

4.103

Total Current Liabilities
 

8.928

4.103

Net Current Assets
 

18.186

12.428

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.002

0.003

 

 

 

 

TOTAL

 

33.888

25.100

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Sales Turnover

 

69.706

16.803

Other Income

 

11.531

8.278

Change in Stock

 

4.596

3.948

Total Income

 

85.833

29.029

 

 

 

 

Profit/(Loss) Before Tax

 

1.905

1.176

Provision for Taxation

 

0.653

0.624

Profit/(Loss) After Tax

 

1.252

0.552

 

 

 

 

Export Value

 

5.752

NA

 

 

 

 

Expenditures :

 

 

 

Raw Material Consumed

 

49.345

14.182

Operating Expenditure

 

27.869

8.508

Administrative Expenditure

 

4.887

3.758

Preliminary Expenses W/Off

 

0.001

0.001

Depreciation

 

1.826

1.404

Total Expenditure

 

83.928

27.853

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2005

31.03.2004

PAT / Total Income

(%)
 

1.45

1.90

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

2.21

4.05

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

4.44

4.02

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.11

0.09

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

2.47

2.30

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

3.03

4.02

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8

 

Corporation identity number (CIN) or foreign company registrations number of the company 

U50300JH1984PLC002045

Name of the company

SONI AUTO AND ALLIED INDUSTRIES LIMITED

Address

Plot NO. M-19, VI Phase, Adityapur Industrial Area, Gamharia, Jamshedpur – 832 108, Jharkhand, India

This Form is for

Creation of Charge

Type of Charges

Immovable Property, Book Debts, Moivable Property (not being pledge)

Particular of the charge holder 

State Bank of India

SME Branch, Adityapur, Jamshedpur, - 831 001, Jharkhand, India 

Nature or description of the instrument creating charge  

Arrangement Letter

Agreement of Loan cum hypothecated

Date of the instrument creating charge

09.01.2007

Amount Secure by the charge

Rs. 27.500 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of Interest:

  1. Working Capital – Interest at 1.75% above / below SBAR = 11% with a minimum of 9.25% p.a.

 

Term of Repayment:

Working Capital – repayable on demand

 

Margin:

  • Raw Materials imported and Indigenous – 25%
  • Semi Finished Goods and Finished Goods – 25%
  • Components / Consumable / Spares – 25%
  • Domestic Receivables – 40%

 

Extent and Operation of the charge:

Hypothecation of Raw Materials, Stock-in-process, Finished Goods.

Hypothecation of Book Debts 

Hypothecation on current Assets

Equitable Mortgage of factory and land and building

First charge over entire other fixed assets (Plant and Machinery) of the company, existing and future,  

Description of the property charge whether it is a charge on

--

Modification charge

Charge identification number of the charge to be modified

--

Date of instrument modifying the charge

09.01.2007

Particulars of the Property charged  

All immovable assets including factory land and building, plant and machinery and other fixed assets situated at Plot No. M-19, VI Phase, Adityapur Industrial Area, Gamharia, Jamshedpur – 832 108, Jharkhand, India 

 

Name of the company

SONI AUTO AND ALLIED INDUSTRIES LIMITED

Presented By

Mr. Bhajanlal Jhunjhunwala

1) Date and description of instrument creating the 

    change

Loan cum hypothecation agreement dated 15.12.2004

2) Amount secured by the charge/amount owing on 

    the securities of charge

Rs. 0.600 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

One agreement for 1 commercial vehicle Invoice No. MVJ/TP/900/2004-05. Model No. LPT=1613/42-341

Mentioned the loan cum hypothecation agreement.

4) Gist of the terms and conditions and extent and

    operation of the charge.

First and Exclusive charge on 1 commercial vehicle along with the interest @ 8.00 p.a.

 

As per Loan cum Hypothecation Agreement.

5) Name and Address and description of the

    person entitled to the charge.

Citicorp Finance (India) Limited

7th Floor, Metro Plaza, Hochi Minh Sad, Kolkata – 700 071, West Bengal, India

6) Date  and brief description of instrument

    modifying the charge

N A

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.

N A

 

The Company’s Fixed Assets of important value includes:

 

  • Land
  • Buildings
  • Factory Shed
  • Plant and Machinery
  • Electric Installation
  • Air Conditioner
  • Furniture and Fixtures
  • Tools and Implements
  • Type Writer
  • T V S Moped
  • Bicycle
  • Scooters
  • Generators
  • Computer and Accessories
  • EPBAX System
  • Fax Machine
  • Car Truck

 

As Per Web:

 

Soni Auto and Allied Industries Private Limited was established in 1987 by Mr. B. L. Jhunjhunwala, who is the Chairman of the company. Since its inception SONICO has been the leading manufacturer of all types of leaf springs.

 

The Company Is A TS 16949:2002 Certified Company.

 

They take special pride in high quality standards and service reputation. For more than 25 years they have been supplying customers with the finest leaf springs as per their specifications. Their current capacity is 1200 MT per month with an annual turnover of Rs.40 CRORES .In order to increase our capacity, they are setting up a new unit which will help us to increase capacity to 2500 MT per month.

 

They have been meeting every stringent requirement of valued customers till date due to-

  • Competency in state of the art manufacturing facilities
  • Possession of knowledgeable and experienced staff
  • Delivering of uncompromising quality products
  • Ascertaining of quick delivery

    

They are working as an OEM to the largest truck manufacturer in India i.e. Tata Motors Limited which was earlier associated with Mercedes-Benz of Germany and is presently having collaboration with CUMMINS of U.S.A.

 

Facilities :

 

Their plant is equipped with modern facilities designed to enhance greater efficiency and control over the various Manufacturing processes. Some of the latest machineries and testing equipments used by us are Automatic Hydraulic Eye Rolling Machine, Rotary Type Hydraulic Cambering Machine, Shot Peening Machine, Load Testing Machine and Life Cycle Testing Machine. We are having full equipped lab for all type of raw material testing & finished component testing at their end.

 

They are also installing a Parabolic Leaf Spring Line in our new unit which is scheduled to be completed by October 2007.

 

Quality Control :

 

They maintain a Total Quality Control Programme, which includes 3 main aspects – Quality of the materials, Quality of the components, Quality of the finished Spring Leaves, to assure best quality products.

 

Clients :

 

  • Tata Motors Limited, India (Previously TELCO Limited)
  • Hindustan Motors Limited, India
  • Scooters India Limited, India
  • Defence, Govt. of India, Defence Department
  • State Road Transport Organisation, India                                        

 

Products

 

We are manufacturing leaf springs for all types of vehicles as per the customer’s drawing / design or as per their samples. Being open to innovative ideas we have an excellent technical network of personnels who are having experience of 15 to 20 years in the field of manufacturing laminated leaf springs.

 

"We ensure for our customers peak performance products keeping in mind cost effectiveness"

 

"We have the flexibility and capability to ensure delivery of top quality leafspring at the right time, and at the right price"

 

Product Specifications:-
 

Applications  : LCV, MCV, HCV, Passenger Vehicles 

Flat Size       : 35 * 6 mm to 120 * 20 mm 

Camber         : As per design 

Material        : Spring Steel Flats ( 65Si7 / EN45 / EN45A / SUP9A / SUP11A )

 

 

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.39.56

UK Pound

1

Rs.80.30

Euro

1

Rs.55.76

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

48

 

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.

 

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