MIRA
INFORM REPORT
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Report Date : |
28.01.2011 |
IDENTIFICATION DETAILS
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Name : |
HARITA FEHRER LIMITED (w. e. f.21.08.2009) |
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Formerly Known
As : |
HARITA POLYMER LIMITED |
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Registered
Office : |
No.29, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
09.07.2008 |
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Com. Reg. No.: |
18-68513 |
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CIN No.: [Company Identification
No.] |
U25200TN2008PLC068513 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEH04369B |
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PAN No.: [Permanent Account No.] |
AACCH1037R |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business
: |
Manufacturer of Foam for Automobile Sector. |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 3700000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a joint venture between Harita Seating Systems Limited and
Fehrer established company having moderate track. There appears some
accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. In view of strong Holding, the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
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Name : |
Mr. S. Jagannathan |
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Designation : |
Company Secretary |
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Contact No.: |
91-9500006180 |
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Date : |
27.01.2011 |
LOCATIONS
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Registered Office : |
No.29, |
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Tel. No.: |
91-44-28272233 |
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Mobile No.: |
91-9500006180 (Mr. Jagannathan) |
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Fax No.: |
91-44-27156472/28257121 |
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E-Mail : |
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Factory 1 : |
Plot No.A2, Ranjangaon Industrial, Karegaon Post, Shirur Taluka,
Pune-412 210, |
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Factory 2 : |
Survey No.29/30/31, Bellal Vellanthangal Village No.55, Thandalam
Group, Irrungattukottai, Sriperum, Pudur-602 105 |
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Tel. No.: |
91-44-27156470 |
DIRECTORS
As on 08.09.2010
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Name : |
Mr. Chundi Narasimha Prasad |
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Designation : |
Director |
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Address : |
P. No.1822, III 3rd floor, 13th |
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Date of Birth/Age : |
01.07.1947 |
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Date of Appointment : |
09.07.2008 |
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Name : |
Mr. Harihara Iyer Lakshmanan |
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Designation : |
Director |
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Address : |
D-1, Palacia, New No.408, Old No.216, |
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Date of Birth/Age : |
14.08.1933 |
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Date of Appointment : |
24.08.2009 |
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Name : |
Mr. Bernd Carl Otto Welzel |
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Designation : |
Director |
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Address : |
Heinrich- Wiegand- STR 14, Rodelsee-97348 |
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Date of Birth/Age : |
17.07.1961 |
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Date of Appointment : |
08.09.2010 |
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Name : |
Mr. Roland Benno Borst |
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Designation : |
Director |
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Address : |
Wuerzburger Strasse25, Dettelbach-97337 |
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Date of Birth/Age : |
07.08.1953 |
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Date of Appointment : |
08.09.2010 |
KEY EXECUTIVES
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Name : |
Mr. S. Jagannathan |
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Designation : |
Company Secretary |
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Address : |
Plot No.26B, Door No.8, |
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Date of Birth/Age : |
05.06.1965 |
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Date of Appointment : |
13.07.2010 |
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Name : |
Mr. Rajesh Oommen |
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Designation : |
Manager |
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Address : |
502, Sindhu Amazon, Bellandur Village, Outer Roang Road, Varathur
Hobli, Survey No.79/8, Bangalore-560 037, Karnataka, India |
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Date of Birth/Age : |
22.08.1970 |
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Date of Appointment : |
22.01.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 08.09.2010
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Names of Shareholders |
|
No. of Shares |
|
Harita Seating
Systems Limited, |
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10249994 |
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H Lakshmanan |
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1 |
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V |
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1 |
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C Mukundan |
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1 |
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Sujatha Balaji |
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1 |
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K Gopala Desikan |
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1 |
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S G Mural1 |
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1 |
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F.S.Fehrer
Automotive |
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6833364 |
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Total |
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17083364 |
As on 08.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Bodies
corporate |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Foam for Automobile Sector. |
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Products : |
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Imports : |
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Products : |
Raw Material and Machineries |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
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Customers : |
·
End Users ·
OEM’s |
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No. of Employees : |
900 (Office-80, Factory-820) Approximately |
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Bankers : |
State Bank of Mysore, Industrial Finance Branch, II Floor, M.O
Building, No.576, Anna Salai, Chennai - 600006, Tamilnadu, India |
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Banking
Relations : |
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Auditors : |
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Name : |
Raghavan Chaudhuri and Narayanan Chartered Accountants |
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Address : |
No. 17/12, Ii Floor, Casa Capitol, Wood Street, Ashok Nagar,
Bangalore-560 025, Karnataka, India |
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Tel. No.: |
91-44-24988762/24988463/52106952 |
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E-Mail : |
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Holding Company: |
Harita Seating
Systems Limited, |
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Associates : |
F. S. Fehrer
Automotive Gmbh, |
CAPITAL STRUCTURE
As on 08.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- Each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17083364 |
Equity Shares |
Rs.10/- Each |
Rs.170.834
millions |
Note:
(Of the above:
10200000 shares were allotted for consideration other than in cash)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 (15 Months) |
31.12.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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170.834 |
0.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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798.926 |
0.000 |
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4] (Accumulated Losses) |
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(44.978) |
0.000 |
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NETWORTH |
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924.782 |
0.500 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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924.782 |
0.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1023.026 |
0.000 |
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Capital work-in-progress |
|
0.240 |
0.000 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
19.622 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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61.444 |
0.000 |
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Sundry Debtors |
|
271.792 |
0.000 |
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Cash & Bank Balances |
|
23.645 |
0.486 |
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Other Current Assets |
|
2.318 |
0.000 |
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Loans & Advances |
|
18.900 |
0.000 |
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Total
Current Assets |
|
378.099 |
0.486 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
|
496.155 |
0.017 |
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Other Current Liabilities |
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0.000 |
0.000 |
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Provisions |
|
0.074 |
0.000 |
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Total
Current Liabilities |
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496.229 |
0.017 |
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Net Current Assets |
|
118.130 |
0.469 |
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MISCELLANEOUS EXPENSES |
|
0.024 |
0.031 |
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TOTAL |
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924.782 |
0.500 |
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PROFIT & LOSS
ACCOUNT
|
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PARTICULARS |
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|
31.03.2010 (15 Months) |
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SALES |
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Income |
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926.454 |
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Other Income |
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|
9.534 |
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TOTAL (A) |
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935.988 |
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Less |
EXPENSES |
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Raw Material and Components Consumed |
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712.886 |
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Salaries, Wages, Stores Consumed and Other Expenses |
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|
158.917 |
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Miscellaneous Expenses Written off |
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|
0.007 |
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TOTAL (B) |
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871.810 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
64.178 |
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Less |
FINANCIAL
EXPENSES (D) |
|
|
59.010 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
5.168 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
69.768 |
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PROFIT BEFORE
TAX (E-F) (G) |
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(64.600) |
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Less |
TAX (H) |
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(19.622) |
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PROFIT AFTER TAX
(G-H) (I) |
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(44.978) |
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IMPORTS |
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Raw Materials |
|
|
3.035 |
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Stores & Spares |
|
|
0.805 |
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Capital Goods |
|
|
0.182 |
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TOTAL IMPORTS |
|
|
4.022 |
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Earnings Per
Share (Rs.) |
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(2.63) |
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Expected Sales (2010-2011) : Rs.2250.000 millions
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 (15 Months) |
31.12.2008 |
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PAT / Total Income |
(%) |
|
(4.81) |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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(6.97) |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
(4.61) |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.07 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
0.54 |
0.03 |
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Current Ratio (Current Asset/Current Liability) |
|
|
0.76 |
28.59 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.12.2008 (Rs. in millions) |
|
Sundry Creditors |
496.155 |
0.017 |
CHANGE OF NAME
The board of
directors, at their meeting held on 23rd March 2009, considered a proposal for change
of name of the company from its present name to M/s Harita Fehrer Limited,
subject to the approval of the shareholders and the Central government.
The board of
directors decided to change the name of the company, in view of the proposed
joint venture between the holding company, namely Harita Seating Systems
Limited (Harita) and the proposed foreign promoters, namely M/s F.S Fehrer
Automotive GmbH, Germany (FEHRER) and both of them desire to change the name of
the company to represent their participation in the business of the Company.
FINANCIAL
HIGHLIGHTS
During the period, the Company incurred a loss of Rs.44.478 millions for
the fifteen months ended 31st March 2010.
CAPITAL
During this
period, the authorized capital was increased from Rs.0.500 million consisting
of 50,000 equity shares of Rs.10/- each, to Rs.200.000 millions consisting of
2,00,00,000 equity shares of Rs.10/- each, with the approval of the
shareholders on 7th December 2009.
During the period ,
the Company made allotments to the Indian promoters, namely Harita Seating
Systems Limited (HSSL) and foreign collaborators, namely M/s F.S Fehrer
Automotive GmbH, Germany, (Fehrer) as follows, (i) 1,02,00,000 equity shares of
Rs.10/- each to HSSL at a premium of Rs.17/- per share on 22nd January 2010 as
part consideration for transfer of certain segments of businesses by HSSL to
the Company; and (ii) 68,33,364 equity shares of Rs.10/- each for cash at a
premium of Rs.91.54 per share to Fehrer on 8th February 2010. Following the
allotments of equity shares as aforesaid, the paid up equity capital of Company
is held by HSSL and Fehrer in the ratio of 60:40 respectively.
In view of the
reduced holding of HSSL from 100% to 60% in the existing paid up equity capital
of the Company, the status of the Company changed from wholly owned subsidiary
of HSSL to that of a subsidiary of HSSL effective 8th February 2010.
PERFORMANCE
During the period,
the Company acquired the following businesses from HSSL, the holding Company,
(i) Foaming business, two wheeler and three wheeler seats, seat cushions, Long
Fibre Injection (LFI) and Micro Cellular Urethane (MCU), and Foaming business
acquired by HSSL from Polyflex India Private Limited and Polyflex Engineering
Private Limited, together with the respective assets and liabilities, rights,
duties and obligations etc.
The fiscal year
2009-10 began as a difficult one, following the financial crisis that began
globally in 2008 and spread to the real economies across the world. Indian
economy posted a remarkable recovery, not only in terms of overall growth
figures but, more importantly, in terms of certain fundamentals, which justify
optimism for
In 2009-10,
volumes of domestic passenger car and utility vehicles (UV) sales recovered
sharply with a growth of 26%. Reduction in excise duty and fuel prices lowered
the cost of ownership for consumers in 2009-10. Also reduced uncertainty over
growth in income levels and better financing environment improved consumer
sentiments.
The Company
achieved a sale of Rs.928.000 millions and registered a loss of Rs 74.000
millions during 2009-10.
BUSINESS OUTLOOK AND OVERVIEW
The Indian economy
is expected to grow at 7.5 - 8 percent in 2010-11. The domestic passenger car
and utility vehicle industry is expected to continue its growth momentum in
2010-11, with growth in sales volumes estimated at 13-15 percent. Rise in
disposable income due to tax savings offered in Union budget 2010-11,
improvement in business and customer confidence are the two growth drivers for
the industry. The two wheeler industry is expected to grow at 17-18 percent.
Specifically, the
Company’s business with passenger car and utility vehicle customers is expected
to grow by 62%, and the business with two wheeler seats is expected to grow by
54%. The new technology products like long fibre injection moulded components
and micro cellular urethane products for automotive applications are expected
to achieve sales of more than Rs.110 millions in 2010-11. The Company has also
obtained order from Lear Automotive for foam supplies to M and M utility
vehicles at Pune.
The Company also
has plans to tap the export market for head-rests and arm-rests through the
parent Company, Fehrer. The Company has identified various cost reduction
projects for implementation during the year to make it competitive in the
marketplace. It also has plans to set up a polyol blending unit to
significantly reduce the material cost for foam production. With the pricing of
the foam the single biggest factor in obtaining foam businesses from customers
in India, this move will not only help to improve profitability but also gain
additional business in future from customers.
The Company
expects to achieve substantial increase in turnover and also begin to realize
profits from the current year.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U25200TN2008PLC068513 |
|
Name of the
company |
HARITA FEHRER
LIMITED |
|
Address of the
registered office or of the principal place of business in |
No.29, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book Debts Movable Property |
|
Particular of
charge holder |
State Bank of Mysore, Industrial Finance Branch, II Floor, M.O
Building, No.576, Anna Salai, Chennai - 600006, Tamilnadu, India |
|
Nature of
description of the instrument creating or modifying the charge |
1. Agreement for
establishing Letter of Credit and Guarantees and Indemnity for purchase
/discount of usance / demand bills / cheques dated 01.06.2010 Rs.200
millions; 2. Agreement for
Cash Credit dated: 01.06.2010 -
Rs.150.00 millions 3. Agreement of
Loan Cum Hypothecation dated:
01.06.2010 - Rs.200.000 millions;
and 4. Omnibus
Counter guarantee dated: 01.06.2010 - Rs.50.000
millions |
|
Date of
instrument Creating the charge |
01.06.2010 |
|
Amount secured by
the charge |
Rs.600.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Cash Credit: At 1%
below SBMPLR -Present rate11.25%p.a floating; Term Loan: At 0.50% below
SBMPLR present rate 11.75%p.a.(Reset of interest spread at 2yrs from 1st draw
down and every two years thereafter) Terms of
Repayment Total tenor of
the Term Loan is 5 years and 3 months, repayable in 19 quarterly installments
with the moratorium of 6 months as per the Agreement cum hypothecation deed
dated: 1st June 2010 for the Term loan. Margin Raw materials /
Finishes Goods
- 25% Semi Finished Goods,
Stores and spares - 30% Receivables
(cover 90 days)
- 25% Letter of
Credit
- Nil Bank
Guarantee
- Nil Extent and
Operation of the charge The charge
operates as continuing security, inter alia, to secure the due repayment
to State Bank of Mysore (SBM) of its loan of Rs.600.000 millions (both
funded and non-funded) Cash Credit - All
monies, indebtedness or liability in respect of any Bills of exchange,
promissory notes or instruments discounted with the bank, with all interest,
discount, commission, charges, costs and expenses Term Loan -
Principal, interest, service charges, commitment charges, commission, Others discount, or for
costs, charges and expenses or all other monies payable Letter of Credit,
Guarantee - All monies payable and indemnify against claims, demands, duties
penalties, taxes, losses, damages, costs, charges, expenses and other liabilities.
In the case of usance bills, amounts of such bills together with interests,
until any such instruments lapses/ expires. Bank Guarantee -
Indemnify SBM against all types of claims, losses, damages, actions and
costs, until such guarantee expires |
|
Short particulars
of the property charged |
First charge on
the entire current assets like Raw materials, consumable stores, packing
material, stock-in-process, finished goods, receivables and other current
assets - For Cash Credit facility Second charge on
fixed assets worth Rs.1042.400 milllions as at 31st March 2010, situated at
the Company's factories situated at Belagondapalli -Hosur, Ranjangaon-
Pune and Irrungattukottai - Chennai -
For Cash Credit and Letter of Credit facility First charge on
the assets acquired out of the Term Loan and Second charge over current
assets - For Term Loan facility Hypothecation of
goods covered under Letter of Credit and charge over current assets - For
Letter of Credit facility |
Trade Reference:
·
TATA Gems and Control
·
TVS Motor
Fixed Assets:
·
Land
·
Building
·
Plant and Machinery
·
Vehicles
·
Office Equipments
·
Moulds
·
Furniture and Fitting
·
Computer
·
Software
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.45.57 |
|
|
1 |
Rs.72.50 |
|
Euro |
1 |
Rs.62.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
28 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.