MIRA
INFORM REPORT
|
Report Date : |
26.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
KYUNGSHIN INDUSTRIAL MOTHERSON LIMITED |
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Registered Office : |
43 Community Centre, New Friends Colony, New Delhi – 110 065, Delhi |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
09.10.1997 |
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Com. Reg. No.: |
55-90104 |
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CIN No.: [Company
Identification No.] |
U55101DL1997PLC090104 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEK02239G |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Integrated Wiring Harnesses and 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 3100000 |
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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 an Indo-Korean joint venture promoted by strong promoters
like Kyungshin, Korea and Notherson Sumi, India. Available information indicates high financial responsibility of the company
and its management. Trade relations are fair. General financial position is
good. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
43 Community Centre, New Friends Colony, New Delhi – 110 065, Delhi,
India |
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Tel. No.: |
91-11-26842174 |
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Fax No.: |
91-11-51627490 |
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E-Mail : |
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Website : |
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Factory 1 : |
Kyungshin Industrial Motherson Limited, Unit 1, Survey No. 39-42, Village
No. 143, Atanachery Village, Sriperumpudar – 603 202, Tamilnadu, India |
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Tel. No.: |
91-44-27174159 / 460 / 440 / 950 / 27074953 |
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Fax No.: |
91-44-27174958 |
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Factory 2 : |
123-A, Velappanchavadi, Chennai – 600 077, Tamilnadu, India |
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Tel. No.: |
91-44-26800945 / 26801714 |
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Fax No.: |
91-44-26801727 |
DIRECTORS
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Name : |
Mr. Vivek Chaand Sehgal |
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Designation : |
Director |
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Address : |
22, Gwingana Crescent, Glen Waverly, Victoria – 3150, Australia |
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Date of Birth/Age : |
28.09.1956 |
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Date of Appointment : |
09.10.1997 |
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Name : |
Mr. Ashok Tandon |
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Designation : |
Director |
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Address : |
E 52, Panchsheel Park, New Delhi – 110 017, Delhi, India |
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Date of Birth/Age : |
20.02.1951 |
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Date of Appointment : |
28.05.2003 |
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Name : |
Mr. Jong Min Kim |
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Designation : |
Managing Director |
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Address : |
IGB, Tharangini Apartments, 3rd Sea Ward Road, Valmiki
Nagar, Chennai – 600 001, Tamilnadu, India |
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Date of Birth/Age : |
27.10.1959 |
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Date of Appointment : |
09.10.1997 |
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Name : |
Mr. Rakesh Satwah |
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Designation : |
Managing Director |
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Address : |
5E, Dugar Enclave, 10th Main Road, Behind SMF Hospital,
Anna Nagar, Chennai – 600 040, Tamilnadu, India |
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Date of Birth/Age : |
29.10.1962 |
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Date of Appointment : |
21.10.1997 |
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Name : |
Mr. Jong Il Kim |
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Designation : |
Alternate Director |
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Address : |
176 Sinmunno IGA, Jongno – GU, Seoul, Korea |
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Date of Birth/Age : |
31.01.1944 |
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Date of Appointment : |
18.12.2006 |
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Name : |
Mr. Seung Kwan Lee |
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Designation : |
Additional Director |
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Address : |
1002, Chabord Apartment, 1609-1, Seocho-dong, Seocho-Ku, Seoul, Korea |
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Date of Birth/Age : |
06.01.1973 |
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Date of Appointment : |
19.01.2005 |
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Name : |
Mr. Hyun Sook Kim |
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Designation : |
Director |
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Address : |
Dong-A-Bilat, 2-1301 1678 – 2 (3711), Secho-Dong, Secho-Ku, Seoul,
Korea |
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Date of Birth/Age : |
09.12.1936 |
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Date of Appointment : |
09.10.1997 |
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Name : |
Mr. Soon Tae Kim |
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Designation : |
Director |
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Address : |
Mok-Dong, Sin Sigaji Apt, 14 Area, 1411 Dong, 202, Shin-Joung, Dong
329, Yangchun – Ku, Seoul, Korea |
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Date of Birth/Age : |
10.02.1947 |
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Date of Appointment : |
09.10.1997 |
KEY EXECUTIVES
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Name : |
Mrs. Renuka Shukla |
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Designation : |
Company Secretary |
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Address : |
S-224, First Floor, Sector 48-49, Sohna Road, Gurgaon – 122 001,
Haryana, India |
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Date of Birth/Age : |
26.01.1978 |
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Date of Appointment : |
30.09.2006 |
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Name : |
Mr. G Ravi Kumar |
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Designation : |
Company Secretary |
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Address : |
177 Leiah Apartments, Vasundhara enclave, Delhi – 110 096, India |
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Date of Birth/Age : |
31.10.1961 |
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Date of Appointment : |
01.06.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 28.08.2005)
|
Names of Shareholders |
No. of Shares |
|
Kyungshin Industrial Company Limited |
3600000 |
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Motherson Sumi Systems Limited |
3599500 |
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Vivek Chaand Sehgal |
100 |
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Rakesh Satwah |
100 |
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Rajeev Sikand |
100 |
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Vivek Avasthi |
100 |
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Pankaj Mittal |
100 |
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Total |
7200000 |
List of Allotment
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Names of Allottees |
No. of Shares |
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Kyungshin Industrial Company Limited |
5000000 |
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Motherson Sumi Systems Limited |
5000000 |
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Total |
10000000 |
Equity shares Breakup (percentage of total equity)
(As on
30.09.2007)
|
Category |
Percentage |
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Foreign holdings (Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident indian(s)
or Overseas corporate bodies or Others |
50.00 |
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Bodies corporate |
49.99 |
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Directors or relatives of directors |
0.01 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Integrated Wiring Harnesses and Components. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
State Bank of India Commercial Branch, No. 232, N.S.C. Bose Road, Chennai – 600 001,
Tamilnadu, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
·
S Ilango Chartered Accountants Address : 56, Darya Ganj, New
Delhi – 110 002, Delhi, India ·
P R Mehta and Company Chartered Accountants Address : 56, Darya Ganj,
New Delhi – 110 002, Delhi, India |
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Holding Company
: |
·
Kyungshin Industrial Company Limited ·
Motherson Sumi Systems Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17200000 |
Equity Shrares |
Rs.10/- each |
Rs.172.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17200000 |
Equity Shrares |
Rs.10/- each |
Rs.172.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
172.000 |
172.000 |
72.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
443.844 |
250.250 |
186.409 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
615.844 |
422.250 |
258.409 |
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LOAN FUNDS |
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1] Secured Loans |
223.182 |
150.287 |
107.144 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
223.182 |
150.287 |
107.144 |
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DEFERRED TAX LIABILITIES |
13.649 |
11.919 |
11.379 |
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TOTAL |
852.675 |
584.456 |
376.932 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
454.437 |
380.872 |
221.283 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
412.306
|
242.013 |
170.917 |
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Sundry Debtors |
578.235
|
275.869 |
221.061 |
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Cash & Bank Balances |
8.799
|
6.294 |
5.058 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
153.316
|
95.353 |
170.858 |
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Total
Current Assets |
1152.656
|
619.529 |
567.894 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
754.418
|
415.945 |
261.524 |
|
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Provisions |
0.000
|
0.000 |
150.721 |
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Total
Current Liabilities |
754.418
|
415.945 |
412.245 |
|
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Net Current Assets |
398.238
|
203.584 |
155.649 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
852.675 |
584.456 |
376.932 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
3200.067 |
2128.365 |
1610.801 |
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Other Income |
47.127 |
27.432 |
3.791 |
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Total Income |
3247.194 |
2155.797 |
1614.592 |
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Profit/(Loss) Before Tax |
441.256 |
223.170 |
163.068 |
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Provision for Taxation |
166.296 |
80.878 |
58.564 |
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Profit/(Loss) After Tax |
274.960 |
142.292 |
104.504 |
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Export turnover |
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Sale of goods manufactured |
2.658 |
1.036 |
2.779 |
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Expenditures : |
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Raw Material Consumed |
2279.063 |
1649.833 |
1247.672 |
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Consumption of stores and spares parts |
30.066 |
14.888 |
11.838 |
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|
Increase/(Decrease) in Finished Goods |
(69.361) |
(31.061) |
(2.769) |
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Salaries, Wages, Bonus, etc. |
109.385 |
65.588 |
79.853 |
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Managerial Remuneration |
12.900 |
6.912 |
5.526 |
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Payment to Auditors |
0.618 |
0.613 |
0.416 |
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Interest |
10.392 |
11.144 |
9.745 |
|
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Insurance Expenses |
2.099 |
2.654 |
1.487 |
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Power & Fuel |
12.012 |
7.776 |
10.407 |
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Depreciation & Amortization |
53.900 |
30.559 |
22.202 |
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Other Expenditure |
364.864 |
173.721 |
65.147 |
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Total Expenditure |
2805.938 |
1932.627 |
1451.524 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
8.47
|
6.60 |
6.47 |
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Net Profit Margin (PBT/Sales) |
(%) |
13.79
|
10.49 |
10.12 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
27.46
|
22.31 |
20.66 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.72
|
0.53 |
0.63 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.59
|
1.34 |
2.01 |
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Current Ratio (Current Asset/Current Liability) |
|
1.53
|
1.49 |
1.38 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Name of the company |
KYUNGSHIN INDUSTRIAL MOTHERSON LIMITED |
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Presented By |
Rakesh Satwah, Managing Director |
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1) Date and description of instrument creating the change |
Agreement of Loan
for overall limits dated September 15, 1998 and Deed of Hypothecation dated
September 15, 1998. Registered on June 9, 1999 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.77.500
millions |
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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 |
Immovable
Property. First charge by way of Hypothecation and/or pledge of the
borrower’s entire goods, movables and other assets. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
As per loan
agreement for overall limit and agreement of hypothecation of goods and
assets. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India Commercial Branch, No. 232, N.S.C. Bose Road, Chennai – 600 001,
Tamilnadu, India |
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6) Date and brief description of instrument modifying the charge |
·
Form C.1-A,
Supplementary Agreement of loan for increase in the overall limit dated April
06, 2005. ·
Form C.2-A,
Supplementary Agreement of Hypothecation of goods and assets for increase in
the overall limit dated April 06, 2005. ·
Form C.3-A,
Supplementary Agreement of Pledge of goods and assets for increase in the
overall limit dated April 06, 2005 ·
Letter dated
07.04.2005 evidencing Equitable Mortgage in favour of SBI over factory land
and building at Kanchipuram ·
Form C.5, Letter
regarding the grant of individual limits within the overall limit dated April
06, 2005 |
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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. |
Overall limits of
loan increased from Rs.160.000 millions to Rs.195.000 millions detailed as
under:
|
|
Corporate
identity number of the company |
U55101DL1997PLC090104 |
|
Name of the
company |
KYUNGSHIN INDUSTRIAL MOTHERSON LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
43 Community Centre, New Friends Colony, New Delhi – 110 065, Delhi,
India |
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This form is for |
Modification of
charge |
|
Type of charge |
·
Book debts ·
Movable property
(not being pledge) |
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Particular of
charge holder |
State Bank of India Commercial Branch, No. 232, N.S.C. Bose Road, Chennai – 600 001,
Tamilnadu, India |
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Nature of
instrument creating charge |
·
Agreement of
Loan for overall limit Form C-1 (will be uploaded as an Addendum) ·
Agreement of
Hypothecation of goods and assets Form C-2. ·
Letter
regarding the grant of individual limits within the overall limit Form C-5 |
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Date of
instrument Creating the charge |
14.03.2008 |
|
Amount secured by
the charge |
Rs.360.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
interest As stipulated by the Bank from time to time ·
Terms of
repayment As stipulated by the Bank from time to time ·
Margin As stipulated by the Bank from time to time ·
Extent and
operation of the charge As mentioned in the Agreements |
|
Particulars of
the property charged |
Primary :
Hypothecation of RM, SIP, FG, Consumable Spares and Stores and Receivables
belonging to the Company Collateral :
Fixed Assets belonging to the Company |
|
Particulars of
the present modification |
By the present
modification the Credit Facilities to an extent of Rs.360.000 millions granted
by SBI, Commercial Branch, No. 232, N.S.C. Bose Road, Chennai – 600 001is
secured by the Company’s current assets as primary security and Fixed Assets
as Collateral Security. |
Web Details
Located at Chennai, India, subject is
a joint venture with Kyungshin Industrial Company Limited of South Korea.
Kyungshin Industrial Company Limited
is a leading manufacturer of integrated wiring harnesses in Korea. Subject
specialises in manufacturing wiring harnesses, as per customer specifications.
Located at Chennai in India, Subject caters to the entire wiring harness
requirements of its customers in the region. The customers have rated subject
as its best vendor in terms of quality, delivery and service, year after year.
Manufacturing Facilities
·
State-of-the art manufacturing set-up
·
World class facilities featuring lean manufacturing
·
Automatic cutting, stripping and crimping machines
·
100% electronic testing facilities
·
Complete technical back-up from collaborators
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.46.25 |
|
UK Pound |
1 |
Rs.85.92 |
|
Euro |
1 |
Rs.68.11 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|