MIRA
INFORM REPORT
|
Report Date : |
25.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
SUMI MOTHERSON INNOVATIVE ENGNEERING LIMITED |
|
|
|
|
Registered Office : |
43, Community Center, New Friends Colony,New Delhi-110065 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
17.03.1997 |
|
|
|
|
Com. Reg. No.: |
085879 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U67120DL1997PLC085879 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELS10088B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of small and medium sized injection molded plastic
components for an extensive range of products catering to Automotive,
electrical and electronics industry. |
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 4000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is well established company having satisfactory track. The
company is expected to face difficult time due to current depressed market
condition in automobile sector. Trade relations are reported as fair.
Payments are reported as slow. The company can be considered normal for business dealing at usual
trade terms and conditions with slight caution. |
LOCATIONS
|
Registered Office : |
43, Community Center, New Friends Colony,New Delhi-110065 |
|
Tel No.: |
91-11-26842174 |
|
Fax No.: |
91-11-41627490 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
E-4 and 5, Sector-59, Noida-201301, |
|
Tel. No.: |
91-120-4760800 |
|
Fax No.: |
91-120-4760966 |
DIRECTORS
|
Name : |
Mr. Toshimi Shirakawa |
|
Designation : |
Director |
|
Address : |
709-15, Ohazanishikata, Kuwanashi, Mie Prefecture-5110864, Japan |
|
Date of Birth/Age : |
06.10.1954 |
|
Date of Appointment : |
25.07.2003 |
|
|
|
|
Name : |
Mr. Ashok Tandon |
|
Designation : |
Director |
|
Address : |
H-1A-141, |
|
Date of Birth/Age : |
20.02.1951 |
|
Date of Appointment : |
25.07.2003 |
|
|
|
|
Name : |
Mr. Amarjit Singh |
|
Designation : |
Director |
|
Address : |
346, Sector-28, Noida-201303, Uttar Pradesh |
|
Date of Birth/Age : |
08.11.1934 |
|
Date of Appointment : |
25.07.2003 |
|
|
|
|
Name : |
Mr. Toshio Minoura |
|
Designation : |
Director |
|
Address : |
7-11, Fukatanicho, Nishinomiya-shi, Hyogoken-6620067, |
|
Date of Birth/Age : |
30.03.1948 |
|
Date of Appointment : |
26.05.2006 |
|
|
|
|
Name : |
Mr. Bimal Dhar |
|
Designation : |
Director |
|
Address : |
Flat No.503, Al |
|
Date of Birth/Age : |
14.06.1953 |
|
Date of Appointment : |
06.112006 |
|
Name : |
Mr. Kimiyuki Hori |
|
Designation : |
Director |
|
Address : |
326-7, Muroyama, Yokkaichi-5100948, |
|
Date of Birth/Age : |
24.09.1947 |
|
Date of Appointment : |
26.05.2007 |
|
|
|
|
Name : |
Mr. Eiji Nakano |
|
Designation : |
Director |
|
Address : |
F-100, East Of Kailash, New Delhi-110065, |
|
Date of Birth/Age : |
01.10.1966 |
|
Date of Appointment : |
26.05.2007 |
|
|
|
|
Name : |
Mr. Yosuke Goda |
|
Designation : |
Whole Time Director |
|
Address : |
C-643, New Friends Colony,New Delhi-110025, |
|
Date of Birth/Age : |
01.04.1959 |
|
Date of Appointment : |
26.07.2007 |
|
|
|
|
Name : |
Mr. Tomoyuki Tokieda |
|
Designation : |
Director |
|
Address : |
21, Sukhdev Vihar, New Delhi-110025, |
|
Date of Birth/Age : |
18.01.1945 |
|
Date of Appointment : |
08.03.2003 |
|
|
|
|
Name : |
Mr. Shimzu Hiroaki |
|
Designation : |
Director |
|
Address : |
W-26, First Floor, Greater Kailash-II, New Delhi-110048, |
|
Date of Birth/Age : |
12.11.1958 |
|
Date of Appointment : |
25.08.2003 |
KEY EXECUTIVES
|
Name : |
Ms.Piyali Choudhary |
|
Designation : |
Company Secretary |
|
Address : |
E-157, 2nd Floor, Lajpat Nagar, |
|
Date of Appointment : |
26.05.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 11.08.2008
|
Names of Shareholders |
No. of Shares |
|
Radha Rani Holdings Pte Limited |
2584100 |
|
Sumitomo Wiring Systems Limited |
12685202 |
|
H.K.Wiring Systems Limited |
5750000 |
|
Samvardhana Motherson Finance Limited (Formerly Motherson Consultancy Private
Limited) |
4051598 |
|
Aditya Bhargava |
10000 |
|
Mr. R.C.Bhargava |
10000 |
|
Sumitomo Wiring Systems Limited, |
15000000 |
AS ON 31.03.2008
|
Equity Share
Breakup |
Percentage Holding |
|
Category |
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
83.43 |
|
Bodies corporate |
16.08 |
|
Other top fifty shareholders |
0.49 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of small and medium sized injection molded plastic
components for an extensive range of products catering to Automotive,
electrical and electronics industry. |
|
|
|
|
Products : |
Automobile Industry- v
Inside Handles v
Outside Handles v
Window Regulators Handles v
Garnish v
Trims v
Clusters v
Side louvers,Etc Medical Industry- v
X-ray Machines Cradle Parts v
Control Boxes v
Sub-Assembly Parts |
GENERAL INFORMATION
|
Customers : |
Major Clients: v
Sumitomo Wiring Systems Limited, v
SEWS Hungary Limited |
|
|
|
|
No. of Employees : |
2000 |
|
|
|
|
Bankers : |
Not Available |
|
Auditors : |
|
|
Name : |
Mr. Vikram Advani (BSR AND
COMPANY) Chartered Accountants Mr. Vikram Aggarwal (BSR AND COMPANY) Chartered Accountant |
|
Address : |
4B, DLF Corporate Park, |
|
Tel. No.: |
91-124-2549191 |
|
Fax No.: |
91-124-2549101 |
|
|
|
|
Holding Company : |
v
Sumitomo Wiring System Limited |
|
|
|
|
Subsidiary of
holding Company |
v
H.K.Wiring Systems Limited |
|
|
|
|
Associates/Subsidiaries : |
v
Motherson Sumi Systems Limited v
Motherson Air Travel Agencies Limited v
Motherson Auto Limited v
Saks Ancilliaries Limited v
Vision Corp Motherson Limited v
Motherson Pudenz Wickmann Limited v
Motherson Sumi Infotech And Designs Limited v
Motherson Techno Tools Limited v
South City Motors Limited v
Nachi Motherson
Toos Technology Limited v
MSSL Tooling (FZE) v
MSSL Polymer GMBH v
Systematic Conscom Limited v
Woco Motherson Elastomer Limited v
Calsonic Kansei Motherson Auto Products Limited v
SEWS Hungary Limited v
Sumitomo Electrical International Singapore Pte
Limited v
Sumitomo Electric Automotive Products private
Limited v
SWS India management and Support Services Private
Limited v
Sumitomo Heavy Industries Limited |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs. 10/- Each |
Rs.400.000 millions |
|
25000000 |
8% Convertible Cumulative Preference Shares |
Rs. 10/- Each |
Rs.250.000 millions |
|
|
|
|
|
|
|
Total |
Rs.
10/- Each |
Rs.650.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25196048 |
Equity Shares |
Rs. 10/- Each |
Rs.251.960
millions |
|
15000000 |
8% Cumulative Convertible Redeemable
Preference Shares |
Rs. 10/-
Each |
Rs.150.000
millions |
|
|
|
|
|
|
|
Total |
Rs. 10/- Each |
Rs.401.960 millions |
Note:-
Equity Share
Capital – 25196048 equity shares of Rs. 10 each of the above 12685202 equity
shares are held by Sumitomo Wiring Systems Limited, Japan (the holding company)
directly and 5750000 equity shares are held by H.K. Wiring Systems Limited (a
subsidiary of Sumitomo Wiring Systems Limited). The ultimate holding company
being Sumitomo Electric Industries,
Preference Share capital
15000000 8% Cumulative Convertible
Redeemable Preference Shares Of Rs. 10 each (Entirely held by Sumitomo Wiring
Systems Limited,
Terms of Issue: - Convertible into
equity share in the ratio of 1:1 at the option of the company after 2 years
from the date of allotment 28.03.2002. If not converted into equity share,
redemption shall be at the end of 10 years at par from the date of allotment.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
401.960 |
401.960 |
401.960 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
347.789 |
272.879 |
210.240 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
749.749 |
674.839 |
612.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
16.010 |
48.127 |
65.451 |
|
|
TOTAL BORROWING |
16.010 |
48.127 |
65.451 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
765.759 |
722.966 |
677.651 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
586.456 |
600.433 |
595.892 |
|
|
Capital work-in-progress |
29.867 |
6.845 |
7.027 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
3.862 |
5.198 |
10.944 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
106.165
|
109.503 |
85.423 |
|
|
Sundry Debtors |
238.196
|
169.468 |
157.145 |
|
|
Cash & Bank Balances |
195.782
|
86.214 |
72.452 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
71.161
|
51.784 |
69.380 |
|
Total
Current Assets |
611.304
|
416.979 |
384.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
239.589
|
207.613 |
199.107 |
|
|
Provisions |
226.641
|
98.866 |
121.515 |
|
Total
Current Liabilities |
466.230
|
306.489 |
320.662 |
|
|
Net Current Assets |
145.574
|
110.490 |
63.738 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
765.759 |
722.966 |
677.651 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
1315.935 |
1121.864 |
963.680 |
|
|
Other Income |
121.910 |
38.147 |
30.359 |
|
|
Total Income |
1437.845 |
1160.011 |
994.039 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
253.904 |
113.276 |
96.964 |
|
|
Provision for Taxation |
90.097 |
50.637 |
52.637 |
|
|
Profit/(Loss) After Tax |
163.807 |
62.639 |
44.327 |
|
|
|
|
|
|
|
|
Export Value |
435.869 |
360.018 |
N.A. |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
87.557 |
88.017 |
N.A. |
|
|
Stores & Spares |
132.759 |
103.569 |
N.A. |
|
|
Capital Goods |
14.692 |
48.836 |
N.A. |
|
|
Others |
0.000 |
0.000 |
N.A. |
|
Total Imports |
235.008 |
240.422 |
N.A. |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
644.558 |
590.072 |
424.939 |
|
|
Consumption of stores and spares parts |
20.142 |
15.865 |
11.549 |
|
|
Increase/(Decrease) in Finished Goods |
(2.928) |
(2.080) |
27.821 |
|
|
Salaries, Wages, Bonus, etc. |
69.886 |
59.592 |
50.831 |
|
|
Managerial Remuneration |
2.022 |
1.860 |
1.860 |
|
|
Payment to Auditors |
1.780 |
1.565 |
1.050 |
|
|
Interest |
2.166 |
2.179 |
2.692 |
|
|
Insurance Expenses |
5.178 |
6.082 |
7.450 |
|
|
Power & Fuel |
53.362 |
46.613 |
50.122 |
|
|
Depreciation & Amortization |
94.504 |
112.238 |
101.928 |
|
|
Other Expenditure |
293.271 |
212.749 |
216.833 |
|
Total Expenditure |
1183.941 |
1046.735 |
897.075 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
11.39
|
5.39 |
4.45 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.29
|
10.09 |
9.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.61
|
11.00 |
9.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.16 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.64
|
0.52 |
0.63. |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.36 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
FIXED
ASSETS-
A) Tangible Assets:
v Land(leasehold)
v Building
v Plant and machinery
v Office Equipments
v Moulds and Dies
v Furniture and Fixtures
v Computers
v Vehicles
B) Intangible Assets:
v Computer Software
Contingent Liabilities as on 31.03.2008
|
Particulars |
Rs. In Million |
|
Liability on pending sales tax, entry tax
and excise duty cases |
4.837 |
|
Liability on pending income tax assessments |
9.152 |
|
Liability on transfer pricing assessment |
14.276 |
|
Total |
28.265 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.09 |
|
|
1 |
Rs.75.90 |
|
Euro |
1 |
Rs.63.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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 |
|