MIRA
INFORM REPORT
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Report Date : |
06.05.2011 |
IDENTIFICATION DETAILS
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Name : |
LEAR AUTOMOTIVE INDIA PRIVATE LIMITED (w.e.f. 29.03.2006) |
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Formerly Known As : |
LEAR SEATING PRIVATE LIMITED |
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Registered Office : |
E-25, 26 and 27, Bhosari MIDC, Bhosari – 411026, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
05.02.1996 |
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Capital
Investment / Paid-up Capital : |
Rs. 296.251 millions [as on
31.03.2010] |
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Com. Reg. No.: |
11-134085 |
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CIN No.: |
U34300PN1996PTC134085 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELL02667A |
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PAN No.: (Permanent Account No.) |
AAACL1978K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Designer of Automobile Seating and Interior Components for Various Automobiles. |
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No. of Employees : |
1000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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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 3240000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Lear Corporation ( It is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. 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.
INFORMATION PARTED BY
|
Name : |
Mr. Sandeep Mahajan |
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Designation : |
HR Manager |
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Date : |
05.05.2011 |
LOCATIONS
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Registered Office : |
E-25, 26 And 27, Bhosati MIDC, Saket District Centre, Saket, Bhosari –
411026, |
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Tel No : |
91-20-66123005/ 66123425 |
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Fax No.: |
91-20-66123000 |
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E-Mail : |
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Website: |
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Location : |
Owned |
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Corporate Office : |
Taj Palace Hotel, Suit No. 268, 2 LSP Marg, |
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Tel. No.: |
91-11-24104537 |
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Fax No.: |
91-11-24104547 |
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E-Mail : |
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Website : |
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Factory : |
Gat No.
178-182, Village- Gonde Dumala, Tah- Igatpuri, District: Nashik - 422403, |
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Mother Factory: |
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Tel No.: |
91-2676-222700/222353/222600 |
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Branches : |
Located At: · Ahmedabad · Bengaluru · Chennai · Gurgaon ·
· Kolkata · Mumabi ·
·
Pune |
DIRECTORS
As on 29.09.2010
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Name : |
Mr. Paul Roger Jefferson |
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Designation : |
Director |
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Address: |
Room 2402, Bldg 2, Fortune Residence, |
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Date of Birth/Age : |
23.09.1946 |
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Date of Appointment : |
03.03.2004 |
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Name : |
Mr. Warwick A. Bond |
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Designation : |
Director |
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Address: |
Bunglow No. T 5-6, |
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Date of Birth/Age : |
26.03.1954 |
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Date of Appointment : |
03.03.2009 |
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Name : |
Mr. Amit Sharma |
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Designation : |
Director |
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Address: |
444, Pocket – A, Sarita Vihar, New Delhi-110 076, |
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Date of Birth/Age : |
10.05.1979 |
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Date of Appointment : |
26.10.2009 |
KEY EXECUTIVES
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Name : |
Mr. Sandeep Mahajan |
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Designation : |
HR Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2010
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Names of Shareholders |
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No. of Shares |
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S. Bhalchandra Bhalerao (under beneficial Ownership of
Lear Corporation ( |
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1 |
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Anil Khanna (under beneficial Ownership of Lear
corporation ( |
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1 |
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Lear Corporation ( |
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29625062 |
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Total |
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29625064 |
As on 29.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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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 and Designer of Automobile Seating and Interior Components for Various Automobiles. |
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Products : |
ITC Code |
Product Description |
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9401.20 |
Seats of a kind used for motor vehicles |
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6307.90 |
Trunk Lid Pocket for fuel additives |
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8708.99 |
Interior Components |
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Exports : |
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Products : |
Automobile Components |
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Countries : |
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Imports : |
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Products : |
Spare Parts |
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Countries : |
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Terms : |
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Selling : |
Cash / Credit [Depend] |
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Purchasing : |
Cash / Credit [Depend] |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
Actual
Production |
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Automotive Seating Systems |
Nos. |
1244609 |
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Seat Cover |
Nos. |
831104 |
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Interior Components |
Nos. |
287693 |
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Trunk Lid Pocket for fuel additives |
Nos. |
- |
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Metal Parts |
Nos. |
1536847 |
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Wiring harness |
Nos. |
147935 |
Note :
- Having regard to the nature of operations, changes in product mix
and utilization of manufacturing facilities, it is impracticable to
provide details about installed capacity
- Difference in quantitative tally represents free supplies / captive consumption.
Production includes free supplies / captive consumption for automotive seating systems – 907
Nos. [previous year 638 nos.] seat covers 842963 [previous year 866846
nos.], interior components 58140 nos. [previous year nil] and metal parts
1175120 nos. [previous year 35334 nos.]
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
Citi Bank, Pune Branch |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
S. R. Batliboi and Associates Chartered Accountants |
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Address : |
C – 401, 4th floor, |
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Tel. No.: |
91-20-66036000 |
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Fax No.: |
91-20-66015900 |
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Holding Company |
v
Lear Corporation ( (Formerly known as Ramco Investments Limited, v
Lear Corporation Inc., Holding Company of Ramco Investments Limited, |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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35,000,000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 millions |
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Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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29,625,064 |
Equity Shares |
Rs.10/- each |
Rs.296.251
millions |
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As on 29.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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35,000,000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 millions |
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Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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30,005,064 |
Equity Shares |
Rs.10/- each |
Rs.300.051
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
296.251 |
282.581 |
282.581 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
514.902 |
180.517 |
321.710 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
811.153 |
463.098 |
604.291 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
880.281 |
920.281 |
630.282 |
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TOTAL BORROWING |
880.281 |
920.281 |
630.282 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1691.434 |
1383.379 |
1234.573 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1394.853 |
976.672 |
558.884 |
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Capital work-in-progress |
18.957 |
207.857 |
52.964 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
71.132 |
92.775 |
13.187 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
277.454
|
222.398 |
163.086 |
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Sundry Debtors |
1092.628
|
858.666 |
801.877 |
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Cash & Bank Balances |
19.187
|
13.567 |
417.713 |
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Other Current Assets |
366.275
|
0.062 |
7.760 |
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Loans & Advances |
300.936
|
437.764 |
201.714 |
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Total
Current Assets |
2056.480
|
1532.457
|
1592.150
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
1397.537
|
1115.742 |
837.555 |
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Other Current Liabilities |
349.364
|
1329.130 |
85.865 |
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Provisions |
103.087
|
97.252 |
59.192 |
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Total
Current Liabilities |
1849.988
|
1426.382 |
982.612 |
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Net Current Assets |
2064.492
|
106.075 |
609.538 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1691.434 |
1383.379 |
1234.573 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
4186.362 |
2952.648 |
3204.943 |
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Service revenue |
405.817 |
399.336 |
255.479 |
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Other Income |
86.699 |
29.081 |
65.016 |
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TOTAL (A) |
4678.878 |
3381.065 |
3525.438 |
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Less |
EXPENSES |
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|
2397.059 |
2445.930 |
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Employees Cost |
|
586.248 |
429.261 |
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Other Expenditure |
4608.652 |
448.387 |
399.306 |
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Increase/(Decrease) in Finished Goods |
|
(8.472) |
(6.072) |
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TOTAL (B) |
4608.652 |
3423.222 |
3268.425 |
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Including
Finance and Depreciation Expenses |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(42.157) |
257.013 |
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Less |
FINANCIAL
EXPENSES (D) |
36.836 |
0.795 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(78.993) |
256.218 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
97.806 |
75.062 |
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PROFIT BEFORE
TAX (E-F) (G) |
70.226 |
(176.799) |
181.156 |
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Less |
TAX (H) |
22.905 |
(35.605) |
76.548 |
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PROFIT AFTER TAX
(G-H) (I) |
47.321 |
(141.194) |
104.608 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
172.488 |
313.682 |
209.074 |
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BALANCE CARRIED
TO THE B/S |
219.809 |
172.488 |
313.682 |
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
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|
77.852 |
42.954 |
NA |
|
|
|
|
423.841 |
396.743 |
NA |
|
|
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Other Income |
0.000 |
10.216 |
NA |
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|
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Reimbursement of Expenses |
26.409 |
30.796 |
NA |
|
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TOTAL EARNINGS |
528.102 |
480.709 |
NA |
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IMPORTS |
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Raw Materials |
0.680 |
0.294 |
0.243 |
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Stores & Spares |
0.008 |
0.002 |
0.004 |
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Capital Goods |
0.089 |
0.030 |
0.016 |
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TOTAL IMPORTS |
0.777 |
0.326 |
0.263 |
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Earnings Per
Share (Rs.) |
1.60 |
(5.00) |
3.70 |
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Expected Sales ( 2010-2011 ) : Rs.4420.000 millions
The above information has been parted by Mr. Sandeep Mahajan [HR
Manager]
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.01
|
(4.18)
|
2.97
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Net Profit Margin (PBT/Sales) |
(%) |
1.68
|
(5.99)
|
5.65
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.03
|
(7.05)
|
11.28
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Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
(0.38)
|
0.29
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Debt Equity Ratio (Total Liability/Networth) |
|
3.37
|
5.07
|
1.63
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Current Ratio (Current Asset/Current Liability) |
|
1.11
|
1.07
|
1.62
|
LOCAL AGENCY FURTHER INFORMATION
NOTE
The Registered Office of the Company has been
shifted from 206 and 206 A, Rectangle – 1, D -4, Saket District Centre, Saket,
Sundry Creditors :
(Rs.in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors for goods and services |
|
|
|
|
-Due to micro and small enterprises
|
59.144 |
49.418 |
2.857 |
|
-Due to others |
1338.393 |
1066.324 |
834.698 |
|
Total |
1397.537 |
1115.742 |
837.555 |
Contingent
Liabilities :
(Rs.in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
|
Claims by the excise authorities |
0.023 |
0.027 |
|
Income tax cases for transfer pricing |
0.016 |
0.020 |
|
Income tax case pending before ITAT |
0.019 |
0.000 |
Operations :
Whilst the financial year 2008-2009
witnessed global economic downturn which affected the automotive sector
to a large extent, financial
year 2009-2010 saw some recovery in car sales.
During the financial year 2009-2010, the Company launched several new car seat programs. General Motor
India's J-300 car seat program was launched from Company's Plant at
halol, General Motor India's M-300 and
Volkswagen
The Company's turnover. i-e.. sale of goods and services increased by
about 37% over the previous year and the Company m e d net profit of Rs. 47.3
million after tax and prior
period items. In accordance with the provisions of Accounting Standard 22 on "Accounting for taxes on
income", the current
year's deferred tax charge of Rs. 21.6
million, has been recorded in the profit and loss account. Deferred income
taxes reflect the impact of the current year timing differences between taxable
income and accounting income for the year and reversal of timing differences of
earlier years. The profit available for appropriations and the surplus carried
to the Balance Sheet
is Rs. 21 9.8 million.
The Director General of Central
Excise intelligence (DGCEI) for the year
2003-04- caused the Company to pay an amount of Rs. 25 million on certain aspects which includes,
valuation of Finished goods for the purpose of excise duty with reference to:
a) the free inputs and engineering costs received from customer, b) tooling
advance received from customer. and, c) difference due to inventory 'cycle
count during course of business
during a certain period. The Company had deposited the above amount under
protest in the earlier years. Further,
during past years, the Company, based on legal opinion, had provided for a sum
of Rs. 6.854 million regarding undisputed liability.
The Company has received income tax demands for assessment year 2004-05
and 2005-06 where an amount
aggregating to Rs. 71.883 million was disallowed. The aforesaid
disallowance represents: (i) a sum
of Rs. 40 million towards certain expenditure considered to be of capital
nature by assessing officer and therefore not allowable as business expenditure
(the case has already been decided in Company's favour in CIT (Appeals) and is
now pending with Income Tax Appellate Tribunal (ITAT) for final hearing); and
(ii) sums of Rs. 14.529 million
and Rs. 17.354 million for assessment year 2006-07 and 2005-06 respectively
towards -transfer pricing adjustments for transactions with associated
enterprises. The Company has filed necessary clarifications with Dispute Resolution
Panel (DRP) and CIT (Appeals), respectively, which are presently ending for
hearing, Based on the legal opinion obtained by the Company and further
discussion with solicitors, the Company believes that there is a fair chance of
decision in its favour in
respect of the matters listed above and accordingly no provision has been
considered necessary.
The Company has rehired Price
water house Coopers for conducting a Transfix Pricing Study to determine the
"arms length* pricing of the international transactions that the Company
has entered into in the financial year ending Mach 31,2010.
Future Growth
The new business growth in the first half of the financial year under
was not very large because of the recessionary conditions of he previous year which forced
major original equipment manufacturers (OEMs) to hold back the capital
expenditure for new projects, The latter part saw OEMs opening up a list of
projects which are now put up for
sourcing. The Company is aggressively pursuing these new projects and expects to win new busiatss with OEMs
like GMI, Tata Motors, Renault, Mahindra and Nissan. The high ,probable business win will be additional Rs.3,3 75
million in the year 2010-2011
Nature of Operations
Subject
was incorporated in
FIXED ASSETS:
·
Land – Freehold
·
Land – Leasehold
·
·
·
Leasehold Improvement
·
Furniture and Fixture
·
Computers (Hardware and Software)
·
Plant and Machinery
·
Equipment and Fittings
·
Office Equipments
·
Vehicles
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. 44.57 |
|
|
1 |
Rs. 73.58 |
|
Euro |
1 |
Rs. 66.23 |
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 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.