MIRA
INFORM REPORT
|
Report Date : |
09.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
MAHINDRA SONA LIMITED |
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Registered Office : |
Gateway Building, Apollo Bunder, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
30.09.1994 |
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Com. Reg. No.: |
11-81637 |
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CIN No.: [Company
Identification No.] |
U30007MH1994PTC081637 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Automotive Components |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 3000000 |
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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 company and a part of well –
established and reputed Mahindra Group. Trade relations are fair. Business is
active. General financial position is good. Payments are reported as usually
made as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office/ Factory : |
Gateway Building, Apollo Bunder, Mumbai – 400001, Maharashtra, India |
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Tel. No.: |
91-22-22624895 |
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Fax No.: |
91-22-22611322 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. J. V. Prabhu |
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Designation : |
Managing Director |
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Address : |
Bunglow No. H – 16, Dattaguru Co-op Housing Society, Deonar, Mumbai –
400088, Maharashtra, India |
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Date of Birth/Age : |
09.05.1955 |
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Qualification : |
B. Tech (Mech-Engineering), PGDM (Financial Management), MIE |
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Date of Appointment : |
06.12.1994 |
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Name : |
Mr. Anand G. Mahindra |
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Designation : |
Director |
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Address : |
Gulistan, 65 Napean Sea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
01.05.1955 |
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Date of Appointment : |
30.09.1994 |
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Name : |
Dr. Surinder Kapur |
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Designation : |
Director |
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Address : |
9 Grand Paradi Apartment, August Kranti Marg, Mumbai, Maharashtra,
India |
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Date of Birth/Age : |
10.10.1943 |
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Date of Appointment : |
30.09.1994 |
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Name : |
Mr. Hemant Luthra |
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Designation : |
Director |
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Address : |
B Wing, 5th Floor, Flat No.51, Tamnee Height, Petit Hall
Complex, 66, Nepean Sea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
18.04.1949 |
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Date of Appointment : |
18.06.2002 |
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Name : |
Mr. Satpal Khattar |
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Designation : |
Director |
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Address : |
3-D, Tanglin Hills, Singapore – 248035 |
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Date of Birth/Age : |
22.11.1942 |
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Date of Appointment : |
26.10.2005 |
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Name : |
Mr. Gaurav G. Motwane |
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Designation : |
Executive Director |
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Address : |
Gyan Ghar, 14th Road, Khar West, Mumbai – 400050,
Maharashtra, India |
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Date of Birth/Age : |
18.04.1972 |
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Qualification : |
Bachelors in Busienss Administrative, Marketing and Enterpreneurial
Management Wharton School Univercity of Pennsylvania, USA) |
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Date of Appointment : |
01.04.2006 |
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Other Directorship : |
Expoponit Software Private Limited Director U72200MH1999PTC121040 |
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Name : |
Mr. Sunjay Kapur |
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Designation : |
Director |
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Address : |
Bunglow No.9, Grand Paradi, August Kranti Marg, Mumbai – 400036,
Maharashtra, India |
KEY EXECUTIVES
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Name : |
Mr. U. D. Phatak |
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Designation : |
Company Secretary |
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Address : |
6 Arunoday, Subhash Road, Vile Parle (East), Mumbai – 400057,
Maharashtra, India |
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Date of Birth/Age : |
08.06.1948 |
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Date of Appointment : |
01.07.2008 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 04.08.2008)
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Names of Shareholders |
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No. of Shares |
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Anand G. Mahindra |
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1 |
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Surinder Kapur |
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1 |
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Arun Nanda |
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1 |
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Asit Chandmal |
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1 |
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Sibyl Finvest Private Limited |
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1 |
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Kamet Investment Company Private Limited |
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1 |
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Verve Finvest Private Limited |
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1 |
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Mahindra Holding and Finance Limited |
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1310000 |
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Ridge Investment Company Private Limited |
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230000 |
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DRSK Management Services Private Limited |
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1435000 |
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Khattar Holding Private Limited |
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578900 |
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Rameshkumar Goenka |
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115800 |
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ILFS Infrastructure Equity Fund |
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231600 |
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Tapas Kumar Pal |
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3000 |
(As on 30.09.2008)
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Category |
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Percentage
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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15.42 |
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Bodies
corporate |
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72.14 |
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Directors
or relatives of directors |
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5.07 |
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Other
top fifty shareholders |
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7.37 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Automotive Components |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Neeta Shah Chartered Accountant |
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Address : |
Allahabad Bank Building, Bombay Samachar Marg, Mumbai – 400001,
Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4400000 |
Equity Shares |
Rs.10/- each |
Rs.44.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
44.000 |
44.000 |
44.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
478.097 |
404.093 |
294.492 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
522.097 |
448.093 |
338.492 |
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LOAN FUNDS |
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1] Secured Loans |
63.301 |
75.024 |
107.368 |
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2] Unsecured Loans |
0.000 |
16.958 |
16.958 |
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TOTAL BORROWING |
63.301 |
91.982 |
124.326 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
585.398 |
540.075 |
462.818 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
166.270 |
161.795 |
160.413 |
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Capital work-in-progress |
53.515 |
1.785 |
0.261 |
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INVESTMENT |
1.804 |
1.135 |
1.135 |
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DEFERREX TAX ASSETS |
10.841 |
13.684 |
8.008 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
200.404
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136.294 |
129.897 |
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Sundry Debtors |
376.679
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400.102 |
355.716 |
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Cash & Bank Balances |
69.155
|
81.131 |
56.203 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
43.701
|
38.701 |
42.234 |
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Total
Current Assets |
689.939
|
656.228 |
584.050 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
271.140
|
204.461 |
206.579 |
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Provisions |
65.831
|
90.091 |
84.470 |
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Total
Current Liabilities |
336.971
|
294.552 |
291.049 |
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Net Current Assets |
352.968
|
361.676 |
293.001 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
585.398 |
540.075 |
462.818 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
1409.170 |
1538.701 |
1276.556 |
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Other Income |
53.746 |
38.255 |
40.537 |
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Total Income |
1462.916 |
1576.956 |
1317.093 |
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Profit/(Loss) Before Tax |
172.546 |
245.982 |
192.097 |
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Provision for Taxation |
63.213 |
80.552 |
65.444 |
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Profit/(Loss) After Tax |
109.333 |
165.430 |
126.653 |
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Export Value |
6.029 |
8.439 |
NA |
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Import Value |
56.273 |
46.432 |
NA |
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Expenditures : |
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Raw Material Consumed |
908.507 |
868.970 |
727.300 |
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Purchases made for re-sale |
63.492 |
93.234 |
55.571 |
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Increase/(Decrease) in Finished Goods |
(54.899) |
(3.179) |
42.705 |
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Personnel Cost |
166.079 |
159.418 |
122.845 |
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Interest |
4.832 |
8.187 |
11.414 |
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Depreciation & Amortization |
20.219 |
19.050 |
17.543 |
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Other Expenditure |
182.140 |
185.293 |
147.618 |
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Total Expenditure |
1290.370 |
1330.974 |
1124.996 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
7.47
|
10.49 |
9.62 |
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Net Profit Margin (PBT/Sales) |
(%) |
12.24
|
15.99 |
15.05 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
20.15
|
30.07 |
25.80 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.55 |
0.57 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.77
|
0.86 |
1.23 |
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Current Ratio (Current Asset/Current Liability) |
|
2.05
|
2.23 |
2.01 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
- Leasehold
Land
- Building
- Plant and
Machinery
- Furniture and
Fittings
- Vehicles
Website Details:
Profile:
The manufacturing unit is situated at Nashik about 180 kms.
North-east of Mumbai and employs about 370 people. Its constructed area is
around 10000 Sq. meters.
The Nashik Plant commenced production in 1979 following a technical and
financial joint venture between Mahindra & Mahindra Limited and Dana
Corporation USA, named Mahindra Spicer Limited.
In 1984, Mahindra Spicer Limited merged with its parent company Mahindra &
Mahindra Limited and became MSL Division of the parent company. In March 1995,
Mahindra & Mahindra Limited and Sona Koyo Steering Systems Limited formed a
new company subject to take over the automotive component business of MSL
Division of Mahindra & Mahindra Limited
The Company is engaged in designing and manufacturing a wide range of auto
ancillary products such as propeller shafts, clutches, universal joint kits,
steering joints, steering column parts and axle shafts. The company is original
equipment supplier to almost all vehicle manufacturers in India and caters to
the spare parts market through a wide distribution network. The company also
supplies to vehicle manufacturers and Tier 1 suppliers outside India.
The Company has been certified for ISO-9001 in 1995 and QS-9000 in 1999. The
Company firmly believes that the high standards of quality can only be achieved
through strong systems and the support of its people.
Subject manufactures Propeller Shafts/ Cardan Shafts and
components for Automotive Applications like Passenger Cars, Multi Utility
Vehicles, Sports Utility Vehicles, Light Commercial Vehicles, Medium Commercial
Vehicles and Heavy Commercial Vehicles.
Subject Drive Shafts also cater to vide Industrial
Applications like Earth Moving Equipment, Engine Dynamometer Testing , Radiator
Fan Drive for Railways, Steel Rolling Mills, Printing Machineries etc.
Company’s other products include Steering Universal Joints
for Automotive Applications like Passenger Cars, Multi Utility Vehicles, Sports
Utility Vehicles, Light Commercial Vehicles, Medium Commercial Vehicles and
Heavy Commercial Vehicles.
Subject also manufactures Spindle and Sleeves of Steering
Column Intermediate Shafts for the following categories:
- Multi Utility
Vehicles / Sports Utility Vehicles
- Light
Commercial Vehicles
- Medium
Commercial Vehicles
- Heavy
Commercial Vehicles
Recent addition in subject product range is Rubber Coupling
for Steering Application for Multi Utility Vehicles , Sports Utility Vehicles
and Earth Moving Equipments.
The other product line of subject is for the Automotive
Clutches. This includes the world’s latest Diaphragm Type (DST as well as
Ring Type) and the conventional lever type for Passenger Cars, Multi
Utility Vehicles, Sports Utility Vehicles, Light Commercial Vehicles, Medium
Commercial Vehicles, Heavy Commercial Vehicles and Farm Tractors.
Various models of Driven Plate Assemblies are used in
- Passenger Cars
- Multi Utility Vehicles / Sports Utility Vehicles
- Light Commercial Vehicles
- Medium Commercial Vehicles
- Heavy Commercial Vehicles
- Farm Tractors
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.49.22 |
|
UK Pound |
1 |
Rs.73.03 |
|
Euro |
1 |
Rs.63.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--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 |
|
66 |
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 |
|