MIRA
INFORM REPORT
|
Report Date : |
19.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SUZUKI MOTORCYCLE
INDIA PRIVATE LIMITED [w.e.f. 06.08.2005] |
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Formerly Known As: |
INTEGRA OVERSEAS
PRIVATE LIMITED |
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Registered Office : |
100 South Ex
Plaza – I, 389 Masjid Moth, South Extension Part – II, New Delhi – 110 049 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25.04.1997 |
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Com. Reg. No.: |
55-86871 |
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CIN No.: [Company
Identification No.] |
U74899DL1997PTC086871 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DEL104579B |
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PAN No.: [Permanent
Account No.] |
AAACI5832P |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturer and
Exporter of Two Wheelers and Spare Parts
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RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED
CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 5000000 |
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Status : |
New Company |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a
subsidiary of Suzuki Motor Corporation, Japan. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Payments are slow but correct. The company can
be considered good for normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a Medium to Long run. |
LOCATIONS
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Registered Office : |
100 South Ex
Plaza – I, 389 Masjid Moth, South Extension Part – II, New Delhi – 110 049,
India |
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Tel. No.: |
91-11-26253125 |
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Email: |
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Website: |
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Factory : |
Village Kherki
Daula, Badshapur NH 8 Link Road, Gurgaon, Haryana, India. |
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Tel. No.: |
91-124-4170700 |
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Fax No.: |
91-124-4170701/
4117325 |
DIRECTORS
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Name : |
Mr. Satya Sheel |
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Designation : |
Managing Director |
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Address : |
Villa D. Empire
Estate, Sultanpur, Mehrauli Gurgaon Road, New Delhi – 110030 |
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Date of Birth : |
27.02.1953 |
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Date of Appointment : |
04.07.2004 |
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Name : |
Mr. Satya Saurabh
Krosla |
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Designation : |
Director |
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Address : |
1905, City Tower
– II, 1905 Seikh Zayed Road, Dubai, UAE |
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Date of Birth : |
03.06.1958 |
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Date of Appointment : |
02.07.2004 |
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Name : |
Mr. Katsumi
Takata, Foreigner |
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Designation : |
Joint Managing
Director |
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Address : |
Room No. 101, The
Lemon Tree Hotel, City Centre, 287, Millinium City, Sector – 29, Gurgaon –
122001, Haryana, India |
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Date of Birth : |
11.10.1949 |
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Date of Appointment : |
02.07.2004 |
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Name : |
Mr. Tomoaki
Toyoda |
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Designation : |
Whole Time
Director |
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Address : |
1-14-1, Editsuka,
Hamamatsu, Shizuoka - 432 8033, Japan. |
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Date of Appointment : |
02.07.2004 |
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Name : |
Mr. Shinzo
Nakanishi, Foreigner |
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Designation : |
Director |
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Address : |
2-59-3, Saiwai,
Hamamatsu – 433 8123, Japan. |
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Date of Birth : |
14.09.1947 |
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Date of Appointment : |
02.07.2004 |
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Name : |
Mr. Yoshihiko
Kakel |
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Designation : |
Director |
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Address : |
89-6, Lgakubo
Otsuka, Gamagoori, Aichi 443-0013, Japan. |
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Date of Appointment : |
02.07.2004 |
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Name : |
Mr. Tsuneo
Kobayashi |
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Designation : |
Director |
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Address : |
85-4,
Yasumatsu-Cho, HamatsuShizuko – 4430015, Japan |
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Date of Birth : |
30.05.1941 |
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Date of Appointment : |
31.05.2006 |
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Name : |
Mr. Shozo
Ono |
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Designation : |
Director |
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Address : |
H. No. 41,
Paschimi Marg, Vasant Vihar, New Delhi – 110057, India |
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Date of Birth : |
02.07.1959 |
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Date of Appointment : |
28.02.2006 |
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Name : |
Mr. Naoki Aizawa |
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Designation : |
Whole Time
Director |
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Address : |
25-9, 2, Choume
Jouhoku, Hamamatsu, Shizuokaken – 4328011, Japan |
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28.11.1951 |
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Date of Appointment : |
05.01.2007 |
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Name : |
Mr. Shigeru
Matsuda |
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Designation : |
Director |
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Name : |
Mr. Akira
Uchiyama |
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Designation : |
Director |
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Name : |
Mr. Saqulain Y
Siddiqui |
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Designation : |
Director |
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Date of Birth : |
01.07.1958 |
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Date of Appointment : |
12.03.2007 |
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Name : |
Mr. Rakesh Kumar
Rath |
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Designation : |
Director |
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Address : |
1454-A, Maruthi
Vihar, Chakkarpur, Gurgaon – 122002, Haryana, India |
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Date of Appointment : |
15.07.2004 |
KEY EXECUTIVES
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Name : |
Mr. Neeraj Joshi |
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Designation : |
Company Secretary
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Address : |
C – 1/ 306, Sai
Baba Apartments, Sector 9, Rohini, Delhi. |
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Date of Birth : |
18.09.1967 |
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Date of Appointment : |
01.03.2004 |
MAJOR SHAREHOLDERS
As on 31.03.2007
|
Names of Shareholders |
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No. of Shares |
|
Satya Sheel |
|
160100 |
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Subhadra Khosla |
|
100 |
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Metromode Technology
Limited |
|
18383000 |
|
Suzuki Motor
Corporation |
|
52800000 |
|
Total |
|
71343200 |
As on 30.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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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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99.78 |
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Directors or relatives of directors |
|
0.22 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and
Exporter of Two Wheelers and Spare Parts
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Products : |
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GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
176 |
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Bankers : |
v The Bank of
Tokyo – Mitsubishi UFJ Limited, 3, Jeevan Vihar Building, Parliament Street, New Delhi v ICICI Bank
Limited, Gurgaon v Mizuho Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
BSR and
Associates Charted
Accountant |
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Address : |
4 B, DLF
Corporate Bank, DLF City, Phase – III, Gurgaon – 122 002, Haryana, India |
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Tel. No.: |
91-124-2549191 |
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Fax No.: |
91-124-2549101 |
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Holding Company : |
Suzuki Motor
Corporation, Japan |
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Subsidiaries: |
v
Thai Suzuki
Motor Company Limited v
Jinan Qingqi
Suzuki Motor Company Limited v
Maruti
Suzuki Automobiles India Limited |
CAPITAL STRUCTURE
As on 30.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs. 10/- each |
Rs. 5000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
71343200 |
Equity Shares |
Rs. 10/- each |
Rs. 713.432 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
713.432 |
713.432 |
713.432 |
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2] Share Application Money |
1802.100 |
354.000 |
54.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[1256.267] |
[271.540] |
(50.251) |
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NETWORTH |
1259.265 |
795.892 |
717.181 |
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LOAN FUNDS |
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1] Secured Loans |
48.841 |
0.000 |
0.000 |
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2] Unsecured Loans |
1044.000 |
1072.550 |
0.000 |
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TOTAL BORROWING |
1092.841 |
1072.550 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2352.106 |
1868.442 |
717.181 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2009.444 |
1759.491 |
183.652 |
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Capital work-in-progress |
103.740 |
8.248 |
567.526 |
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PRE-OPERATIVE EXPENSES PENDING CAPITAL |
0.000 |
0.000 |
33.557 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
289.772
|
100.294
|
0.000 |
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Sundry Debtors |
0.000
|
0.352
|
0.195 |
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Cash & Bank Balances |
15.231
|
64.539
|
3.394 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
585.517
|
210.857
|
40.035 |
|
Total Current Assets |
890.520
|
376.042
|
43.624 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
632.264
|
274.147
|
108.039 |
|
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Provisions |
19.334
|
1.192
|
3.139 |
|
Total Current Liabilities |
651.598
|
275.339
|
111.178 |
|
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Net Current Assets |
238.922
|
100.703
|
(67.554) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2352.106 |
1868.442 |
717.181 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1605.627 |
45.609 |
6.565 |
|
|
Other Income |
527.041 |
7.455 |
0.000 |
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Total Income |
2132.668 |
53.064 |
6.565 |
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Profit/(Loss) Before Tax |
(982.012) |
(219.365) |
(50.321) |
|
|
Provision for Taxation |
2.715 |
1.924 |
2.411 |
|
|
Profit/(Loss) After Tax |
(984.727) |
(221.289) |
(52.732) |
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Earnings in Foreign Currency : |
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|
|
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Export Earnings |
409.219 |
0.468 |
0.999 |
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Total Earnings |
409.219 |
0.468 |
0.999 |
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Imports : |
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|
Raw Materials |
236.843 |
14.639 |
0.000 |
|
|
Stores & Spares |
0.000 |
0.775 |
0.000 |
|
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Others |
209.069 |
270.092 |
27.602 |
|
Total Imports |
445.912 |
285.506 |
27.602 |
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Expenditures : |
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Depreciation & Amortization |
104.453 |
20.375 |
|
|
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Other Expenditure |
3010.227 |
252.054 |
|
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Total Expenditure |
3114.680 |
272.429 |
56.886 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
(46.17) |
(417.02)
|
(803.22) |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
(61.16) |
(480.97)
|
(766.50) |
|
|
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|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(33.86) |
(10.27)
|
(6.07) |
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|
Return on Investment (ROI) (PBT/Networth) |
|
(0.78) |
(0.28)
|
(0.07) |
|
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|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.39 |
1.69
|
0.16 |
|
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|
|
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|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37 |
1.37
|
0.39 |
LOCAL AGENCY
FURTHER INFORMATION
The Registered office of the company has changed from 23, Community
Centre, East of Kailash, New Delhi to 100, South Extension Plaza, 389, Masjid
Moth, South Extension Part – II, New Delhi – 110049 with effect from
15.12.1999.
Bankers Charges
Report as per Registry
|
Name of the company |
SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED |
|
Presented By |
Mr. Katsumi Takata,
Joint Managing Director |
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1) Date and description of instrument creating the change |
Dated 25th
April 2005, Agreement of Hypothecation executed by the company in favour of
Bank of Tokyo- Mitsubishi Limited. |
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2) Amount secured by the charge/amount owing on the securities of charge |
The Working
Capital Loan of Rs. 250 Millions agreed to be lent and advanced by Bank of
Tokyo- Mitsubishi Limited to the company together with interest, damages,
costs, charges, expenses and all other moneys payable by the company to The
Bank of Tokyo- Mitsubishi Limited in terms of the Agreement dated the 25the
day of April 2005 between the company of the One part and The Bank of Tokyo-
Mitsubishi Limited of the other Part. |
|
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 |
All Stocks of Raw
Material such as goods in process, finished goods, spares parts, components
and stores of Borrower, both present and future and stock in process now
belonging to or which may at any time during the continuance of this security
to lying or being in or upon the Borrowers premises or godowns situated at
Village Kherki Dhaula, Badshahpur, NH 8 Link Road, Gurgaon, Haryana or
wherever else the same may be held by any Party anywhere to the order and
disposition of the borrower or in the course of transit and all the present
and future bookdebts, outstanding, money receivables, claims, bills which are
now due owing or which may at any time hereafter during the continuance of
this security become due and owing to the Borrower in the course of his
business by any person, firm, company or body corporate or by the Central
Government or any state government or any Government department of office or
any Municipal or local or public or Semi government body or authority or any
body corporate or undertaking or project whatsoever. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as security by way first charge, for the due repayment by the
company to The Bank of Tokyo- Mitsubishi Limited of its Working Capital of
Rs. 250 millions, together with interest / commission/ costs/ charges and
expenses and all other money payable by the company to Bank in terms of the
said loan Agreement. The charge in
favour of Bank under the said agreement o Hypothecation is subject to the
charge created by the company in favour of its bankers on company’s stocks of
raw material, and book debts to secure its working capital requirements in
the ordinary course of business. The company has
undertaken to keep the goods hypothecated in marketable and good condition at
its own costs and to insure the same with an endorsement in favour of Bank. All the goods
hypothecated and all realizations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of Bank. The security
created under the said Deed of Hypothecation is to be a continuing security. |
|
5) Name and Address and description of the person entitled to the charge. |
The Bank of
Tokyo- Mitsubishi Limited 3, Jeevan Vihar
Building Parliament
Street, New Delhi |
|
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. |
FIXED ASSETS:
·
Land – Free
Land
·
Furniture
& Fixture
·
Computers
·
Motor Vehicles
·
Office
Equipment
·
Quality
Control Equipment etc.
AS PER WEBSITE:
Suzuki Motorcycle India to launch a 125 cc bike in India
Subject is the latest entry into the already crowded
Indian two wheeler segment with players like Hero Honda, Bajaj Auto, Honda, and
TVS. They are planning to start their Indian operations with a 125-cc
mass-market motorcycle to be launch by this coming October. The company has
made an initial investment of Rs. 2000.000 Millions to start their Indian
operations.
Company sources have revealed that Suzuki would
follow up this 125cc bike with a high performance 150-cc sibling sometime next
year. And for the budget segment, another 100cc bike is expected in the first
quarter of 2006. Mass market is the initial aim with plans to enter all the
segments rapidly. They have their facilities located in Gurgaon and are in the
process of beginning their commercial production of the 125cc bike soon.
Suzuki is planning to launch this bike by diwali,
which is the auspicious time for buying a new vehicle in Indian families. Their
setup in Gurgaon has the capabilities of manufacturing 0.100 Millions
motorcycles and they are ready to step that up massively if the situation
arises. They already have setup 40 dealerships around the country and are going
to establish 4,000-5,000 sq.ft showroom and service stations to provide
services to the customers.
The parent company happens to be one of the largest
manufacturers of two wheelers in the world with more than 2.000 Millions bikes
sold per annum. They are popular for their range of high performance road
machines, lightweight super bikes, dirt bikes, street bikes, motocross and fun
bikes globally.
SUZUKI
Philosophy
The core
philosophy of SUZUKI is to provide “VALUE-PACKED PRODUCTS” . Since the founding
of SUZUKI Motor Corporation, the Organization’s endeavor has always been to
provide “VALUE-PACKED PRODUCTS” as one of the manufacturing philosophies.
SUZUKI believes that “VALUE-PACKED PRODUCTS” come from the effort to carry out
Product development from customer’s point of view. This policy has been in
effect since Company’s inception and has helped the Organization to meet
customer’s needs. As a result, SUZUKI’s Products have become well received
throughout the World. SUZUKI is fully committed to create Products that meet
customer’s demand by utilizing its dynamic, long-nurtured technological
advantage coupled with its fresh and active human resources.
Mission
Statement
Ø
Develop
products of superior value by focusing on the customers.
Ø
Establish
a refreshing and innovative company through teamwork.
Ø Strive for individual excellence
through continuous improvement.
Company Name:
Subject is a subsidiary of
Suzuki Motor Corporation, Japan where in they are having the same manufacturing
philosophy of VALUE PACKED PRODUCTS right from the inception. SMIPL will be
manufacturing two wheelers best suited for the valuable Indian customers
covering all segments.
Plant area and production
capacity
They have installed their manufacturing plant
in Gurgaon (Haryana) having the annual plant capacity of 1,20,000 units. They
have got total land area of 37 acres and out of which presently their plant is
constructed in 6.5 acres of land and remaining area is left for the land
development and future expansion.
Environment
At Suzuki, the philosophy of keeping
“environment first” is properly percolated downwards. To comply with all
applicable legislations and setting standards thereof remains only a beginning.
They thrive to discover and invent mechanisms for better environment management
systems and it’s a continuous process which is managed by a separate wing of
experts and specialist in the field.
The
biggest testimony of Suzuki’s commitments towards “environment first” is seen
in the new plant of Suzuki two wheelers at Gurgaon which is built to be a Zero
discharge plant.
They have embraced
Natural light optimization system and water harvesting systems besides several
other measures to create better and cleaner environment around us. All
packaging material used by Suzuki is re-cycleable. A constant flow of internal
communication on environment related issues not only creates awareness amongst
employees but also helps in inculcating ‘an environment friendly’ value system
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 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.40.62 |
|
UK Pound |
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.64.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
|
|
--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 |
|
41 |
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 |
|