MIRA
INFORM REPORT
|
Report Date : |
31.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
SONA SOMIC LEMFORDER COMPONENTS LIMITED |
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Formerly Known As : |
SONA PRECISION PRODUCTS LIMITED |
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Registered Office : |
UFG-6, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
20.08.1993 |
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Com. Reg. No.: |
55-54930 |
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CIN No.: [Company
Identification No.] |
U74899DL1993PLC054930 |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of ball joints for Steering Systems and Suspension
Components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. There
appears some losses incurred by the company in the current year. However the networth appears to be satisfactory. Trade relations are
reported as fair. Business is active. Payments are reported to be slow but
correct. The company can be considered normal for business dealings at usual
trade terms and conditions with slight caution. |
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
|
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 |
LOCATIONS
|
Registered Office : |
UFG-6, |
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Tel. No.: |
91-11-23311924/ 23327205 |
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Corporate Office : |
38/6, NH-8, |
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Tel. No.: |
91-124-4685000 |
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Fax No.: |
91-124-4104611/ 4104621 |
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Factory 1 : |
Sona Enclave, Village Begumpur Khatola, Gurgaon-122001, |
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Tel. No.: |
91-124-4746300 |
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Fax No.: |
91-124-4104637 |
DIRECTORS
As on 30.09.2010
|
Name : |
Dr. Surinder Kapur |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
# 11, The Greens, Rajokari, New Delhi-110038, |
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Date of Birth/Age : |
10.11.1943 |
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Date of Appointment : |
20.08.1993 |
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Name : |
Dr. Konstantin Sauer |
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Designation : |
Director |
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Address : |
Mozartstr, 18 Liperlingen, Germany-88662 |
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Date of Birth/Age : |
25.07.1959 |
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Date of Appointment : |
12.06.2007 |
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Name : |
Mr. Blermhard Franz Sauter |
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Designation : |
Director |
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Address : |
Nelkenstr 5, |
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Date of Birth/Age : |
20.10.1958 |
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Date of Appointment : |
27.03.2008 |
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Name : |
Dr. Franz Kleiner |
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Designation : |
Director |
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Address : |
Haldemer Strabe, 2, Lemforde 49448 |
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Date of Birth/Age : |
16.10.1959 |
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Date of Appointment : |
15.09.2010 |
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Name : |
Mr. Jieming Zhu |
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Designation : |
Director |
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Address : |
Mozartstr, 18 Liperlingern-88662, German |
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Date of Birth/Age : |
25.07.1959 |
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Date of Appointment : |
12.06.2007 |
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Name : |
Mr. Hisao Nuki |
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Designation : |
Additional Director |
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Address : |
1403-8, Takatsuka-CHO, |
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Date of Birth/Age : |
06.03.1963 |
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Date of Appointment : |
01.01.2010 |
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Name : |
Mr. Kazumasa Suzuki |
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Designation : |
Nominee Director |
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Address : |
53-15 Kou Nodai Iwata Shi, |
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Date of Birth/Age : |
08.01.1958 |
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Date of Appointment : |
09.09.2009 |
KEY EXECUTIVES
|
Name : |
Ms. Neha Malik |
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Designation : |
Secretary |
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Address : |
B-75, SFS Flats, Sheikh Sarai, Phase-1, New Delhi-110017, |
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Date of Birth/Age : |
19.12.1977 |
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Date of Appointment : |
01.09.2007 |
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Name : |
Ms. Sarita Sachdev |
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Designation : |
Secretary |
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Address : |
Flat No. 119, HEWO, Sec 31-32 A, Gurgaon-122002, |
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Date of Birth/Age : |
15.09.1981 |
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Date of Appointment : |
17.05.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Surinder Kapur |
|
1 |
|
Rani Kapur |
|
1 |
|
Sudhir Chopra |
|
1 |
|
T.K. Pal |
|
1 |
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Prabhu Parriker |
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1 |
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Kiran Deshmukh |
|
1 |
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Dinesh Agarwal |
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1 |
|
Sona Investment Private Limited, |
|
4293029 |
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Somic Engineering Inc, |
|
4287215 |
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ZF Lemforder |
|
3481419 |
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Somic Ishikawa Inc., |
|
3487232 |
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|
|
|
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Total |
|
15548902 |
As on 30.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
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|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
72.39 |
|
Bodies
corporate |
|
27.61 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of ball joints for Steering Systems and Suspension
Components. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
|
Inner ball joint |
Nos. |
6780000 |
|
Outer ball joint |
Nos. |
10870000 |
|
Forgings |
No of Strokes |
27000000 |
|
Particular |
Actual
Production |
|
IBJ |
1770292 |
|
OBJ |
1783756 |
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BSSRS |
492172 |
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BSSPS |
492172 |
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SUSPN |
1487161 |
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FORGINGS |
4820705 |
|
OTHERS |
1456457 |
GENERAL INFORMATION
|
Customers : |
·
Maruti Suzuki (SKSSL) ·
Maruti Suzuki ·
Honda Siel Cars ( ·
Mahindra and Mahindra ·
·
·
Maval Manufacturing Today ·
General Motors – ·
Mitsubishi ·
General Motors – ·
HM (SKSLL) ·
ThyseenKrupp JMB- ·
Mahindra and Mahindra ·
Hyundai(SKSSL) ·
Hond-Siel Cars ·
Tata Auto Comp (Lotus Cars) ·
Tata Motors Limited ·
Ashoka Leyland |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
S.P. Puyri and Company Chartered Accountant |
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Address : |
4/18, |
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Tel. No.: |
91-11-23274888/ 23277410 |
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Fax No.: |
91-11-23272805 |
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E-Mail : |
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Subsidiaries : |
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Associates : |
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16500000 |
Equity Shares |
Rs.10/- each |
Rs.165.000 Millions |
|
1000000 |
Preferences Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.265.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15548902 |
Equity Shares |
Rs.10/- each
|
Rs.155.489
Millions |
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16500000 |
Equity Shares |
Rs.10/- each |
Rs.165.000 Millions |
|
1000000 |
Preferences Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.265.000 Millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12061670 |
Equity Shares |
Rs.10/- each
|
Rs.120.616
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
120.616 |
120.617 |
120.617 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
260.888 |
240.151 |
257.112 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
381.504 |
360.768 |
377.729 |
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LOAN FUNDS |
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|
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1] Secured Loans |
355.976 |
403.384 |
191.505 |
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2] Unsecured Loans |
80.000 |
80.000 |
80.000 |
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TOTAL BORROWING |
435.976 |
483.384 |
271.505 |
|
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DEFERRED TAX LIABILITIES |
33.384 |
36.187 |
28.643 |
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|
|
|
|
|
|
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TOTAL |
850.864 |
880.339 |
677.877 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
718.408 |
507.654 |
361.974 |
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Capital work-in-progress |
8.331 |
193.377 |
82.458 |
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|
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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 |
165.266
|
152.363
|
113.279 |
|
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Sundry Debtors |
184.898
|
217.802
|
161.977 |
|
|
Cash & Bank Balances |
11.620
|
10.680
|
7.058 |
|
|
Other Current Assets |
6.825
|
8.401
|
16.916 |
|
|
Loans & Advances |
66.186
|
96.143
|
130.441 |
|
Total
Current Assets |
434.795
|
485.389
|
429.671 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
241.124
|
213.545 |
|
|
|
Other Current Liabilities |
50.462
|
57.363
|
165.985 |
|
|
Provisions |
19.084
|
35.173
|
30.241 |
|
Total
Current Liabilities |
310.670
|
306.081
|
196.226 |
|
|
Net Current Assets |
124.125
|
179.308
|
233.445 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
850.864 |
880.339 |
677.877 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1557.810 |
1134.131 |
946.727 |
|
|
|
Other Income |
49.047 |
42.655 |
31.025 |
|
|
|
TOTAL (A) |
1606.857 |
1176.786 |
977.752 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material and components consumed |
1091.818 |
791.557 |
|
|
|
|
Manufacturing expense |
150.865 |
111.913 |
|
|
|
|
Employees remuneration and benefits |
159.693 |
126.002 |
878.220 |
|
|
|
Administrative, selling and others expense |
60.890 |
55.764 |
|
|
|
|
Increase or decrease in stocks Finished goods and work in progress |
(0.807) |
8.600 |
|
|
|
|
TOTAL (B) |
1462.459 |
1093.836 |
878.220 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
144.398 |
82.950 |
99.532 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
49.900 |
31.075 |
16.748 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
94.498 |
51.875 |
82.784 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
70.569 |
59.895 |
51.491 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
23.929 |
(8.020) |
31.293 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(43.854) |
8.942 |
12.727 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
26.715 |
(16.962) |
18.566 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
87.217 |
104.179 |
88.434 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
5.126 |
0.000 |
2.412 |
|
|
|
Tax on Dividend |
0.851 |
0.000 |
0.409 |
|
|
BALANCE CARRIED
TO THE B/S |
107.955 |
87.217 |
104.179 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
4.280 |
18.880 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
166.515 |
119.876 |
42.126 |
|
|
|
Capital Goods |
1.143 |
22.922 |
62.240 |
|
|
TOTAL IMPORTS |
167.658 |
142.798 |
104.366 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.21 |
(1.41) |
1.79 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.66
|
(1.44) |
1.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.54
|
(0.70) |
3.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.07
|
(0.80) |
4.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
(0.02) |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.96
|
2.19 |
1.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.59 |
2.19 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
REPORTS:
The company has registered sales of Rs.1557.810 millions during the
financial year ended 31st March, 2010 as against the sales of
Rs.1134.130 millions during the previous financial years.
Fixed Assets:
·
Land
·
Building
·
Plant and Machinery
·
Gauges and Templates
·
Electrical Installation
·
Furniture and Fixtures
·
Office Equipments
·
Computers
·
Vehicles
As per website
Profile:
The company was initially set up as Sona Somic Components Limited in the
year 1995, a joint venture with Somic Ishikawa of Japan. In 1998, Lemforder
Metallwaren picked up an equity stake in this company and the company became
sona somic Lemforder Components Limited (SSL). This tie-up has expanded the
footprint of this company as it can now caters to both the Japanese as well as
the European markets.
SSL is a leading manufacturer of ball joints for steering systems and
suspension components in the country. Its products are used in passenger cars, jeeps
and light commercial vehicles. The company's major customers are Sona Koyo
Steering, Maruti -Suzuki, Honda,
The SSL plant has the latest state-of-the-art equipment and its
production method is based on the lean production system known as 'Toyota
Production System' (TPS), learnt from its Japanese partner. Highly effective
elements of TPS, like Just-In-Time, Kaizen, one piece at a time and
Participative Management are being utilized to maximise effectiveness and
efficiency. The company is using a combination of the latest technology along
with a well-planned, well-executed production system to manufacture products of
the highest quality for existing customers as well as to target other major
entrants in the automotive sector.
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.44.77 |
|
|
1 |
Rs.71.69 |
|
Euro |
1 |
Rs.63.02 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
42 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.