1. Summary Information
|
|
|
Country |
|
|
Company Name |
MARUTI SUZUKI
INDIA LIMITED |
Principal Name 1 |
Mr. R C Bhargava |
|
Status |
Very good |
Principal Name 2 |
Mr. Shinzo
Nakanishi |
|
|
|
Registration # |
-- |
|
Street Address |
Plot
No. 1, Nelson Mandela Road, Vasant Kunj, New Delhi-110070 |
||
|
Established Date |
24.02.1981 |
SIC Code |
-- |
|
Telephone# |
91-11-46781000
/ 46150275 |
Business Style 1 |
Manufacturing of
Passenger Cars, Vans, Pickups, Jeeps, etc |
|
Fax # |
-- |
Business Style 2 |
-- |
|
Homepage |
-- |
Product Name 1 |
-- |
|
# of employees |
46200
[Approximately] |
Product Name 2 |
-- |
|
Paid up capital |
Rs.1,445,000,000 |
Product Name 3 |
-- |
|
Shareholders |
Bodies Corporate - 156618440 |
Banking |
Bank
of America |
|
Public Limited Corp. |
-- |
Business Period |
30 years |
|
IPO |
--- |
International Ins. |
- |
|
Public |
--- |
Rating |
Aa
(79) |
|
Related
Company |
|||
|
Relation
Holding Company |
Country
India |
Company
Name |
Suzuki Motor Corporation |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
49,413,000,000 |
Current Liabilities |
40,798,000,000 |
|
Inventories |
14,150,000,000 |
Long-term Liabilities |
3,093,000,000
|
|
Fixed Assets |
55,294,000,000 |
Other Liabilities |
2,512,000,000 |
|
Deferred Assets |
868,000,000 |
Total Liabilities |
46,403,000,000 |
|
Invest& other Assets |
65,353,000,000 |
Retained Earnings |
137,230,000,000 |
|
|
|
Net Worth |
138,675,000,000 |
|
Total Assets |
185,078,000,000 |
Total Liab. & Equity |
185,078,000,000 |
|
Total Assets (Previous Year) |
164,449,000,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
361,282,0000,000 |
Net Profit |
22,886,000,000 |
|
Sales(Previous yr) |
289,585,000,000 |
Net Profit(Prev.yr) |
24,976,000,000 |
MIRA INFORM
REPORT
|
Report Date : |
15.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
MARUTI SUZUKI INDIA LIMITED [w.e.f. 17.09.2007] |
|
|
|
|
Formerly Known
As : |
MARUTI UDYOG LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
24.02.1981 |
|
|
|
|
Com. Reg. No.: |
55-011375 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1444.550
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
l34103dl1981plc011375 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELM00046E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM0829Q |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of Passenger
Cars, Vans, Pickups, Jeeps, etc. in technical and financial collaboration
with Suzuki Motor Corporation of |
|
|
|
|
No. of Employees
: |
46200 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (79) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 554700000 |
|
|
|
|
Status : |
Very good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Maruti Suzuki India Limited (MSIL) (formerly known as Maruti Udyog Limited), a subsidiary
of Suzuki Motor Corporation, Japan is India’s leading passenger car company,
accounting for over 50 percent of the domestic car market. Subject is a well-established and a reputed company having good track.
The Financials of the Company is strong. Fundamentals appear to be good. Business is active. Trade relations
are fair. Payments are regular. The company can be considered good for business dealings under 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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered / Head Office : |
Plot No. 1, |
|
Fax No.: |
91-11-46781000 / 46150275 / 46150276 |
|
Email : |
|
|
Website : |
www.marutisuzuki.com |
|
|
|
|
Corporate office : |
11th Floor, |
|
Tel No.: |
91-11-23316831 |
|
|
|
|
Factory 1 : |
Gurgaon Plant Old |
|
Tel No.: |
Tel: 91-124-2346721 |
|
|
|
|
Factory 2: |
Manesar Plant |
|
|
|
|
Regional Offices : |
Located at: · Kolkata · Guwahati ·
·
· Chennai ·
· Mumbai · Ahmedabad ·
·
·
· Jaipur ·
·
· Pune |
DIRECTORS
AS ON 07.09.2011
|
Name : |
Mr. R C Bhargava |
|
Designation : |
Chairman and Non
Executive Director |
|
|
|
|
Name : |
Mr. Shinzo Nakanishi |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr. Tsuneo
Kobayashi |
|
Designation : |
Director and
Managing Executive Officer [Production] |
|
|
|
|
Name : |
Mr. Shuji Oishi |
|
Designation : |
Director –
Marketing and Sales |
|
|
|
|
Name : |
Mr. Osama Suzuki |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amal Ganguli |
|
Address : |
Director |
|
|
|
|
Name : |
Mr. Manvinder
Singh Banga |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Pallavi
Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Keiichi Asai |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. Kenichi Ayukawa |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manvinder Singh Banga |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Davinder Singh Brar |
|
Designation : |
Director |
|
|
|
|
Board Committees : |
|
|
Audit Committee |
|
|
|
· Mr. Amal Gaguli, Chairman · Mr. Shinzo Nakanishi, Member · Mrs. Pallavi Shroff, Member · Mr. Davinder Singh Brar, Member |
|
|
|
|
Shareholder and Investors Grievance committee |
|
|
|
· Mr. R C Bhargava, Chairman · Mr. Shinzo Nakanishi, Member · Mr. Kenichi Ayukawa · Mr. Davinder Singh Brar, Member |
KEY EXECUTIVES
|
Name : |
Mr. S. Ravi Aiyar |
|
Designation : |
Company Secretary
and Chief General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
156618440 |
54.21 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9250541 |
3.20 |
|
|
41910567 |
14.51 |
|
|
55573585 |
19.24 |
|
|
|
|
|
|
|
|
|
|
17823030 |
6.17 |
|
|
|
|
|
|
|
|
|
|
6964118 |
2.41 |
|
|
81000 |
0.03 |
|
|
|
|
|
|
|
|
|
|
2645 |
0.10 |
|
|
19 |
0.09 |
|
|
279 |
0.06 |
|
|
|
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
|
|
|
Total
(A)+(B)+(C) |
288910060 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Passenger
Cars, Vans, Pickups, Jeeps, etc. in technical and financial collaboration
with Suzuki Motor Corporation of |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (As on : 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity ** |
Actual
Production |
|
Passenger Cars and Light Duty Utility Vehicles |
Nos. |
1000000 |
1273361 |
|
|
|
|
|
Notes:
·
Licensed Capacity is not applicable from 1993-94.
**Installed Capacity is as certified by the management and relied upon
by the auditors, being a technical matter.
GENERAL INFORMATION
|
Suppliers : |
·
Suzuki Motor Corporation, ·
Climate Control India Limited, ·
Sona Steerling Systems Limited, ·
Bharat Seats Limited, ·
Lumax Automatic Parts Industries Limited, ·
Asahi India Safety Glass Limited, |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Customers : |
·
Wholesalers ·
Government
Bodies |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
46200 [Approximately] |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of Travancore, ·
Punjab National Bank, ·
Bank of ·
Bank of ·
State Bank of ·
American Express Bank, ·
Corporation Bank, ·
BNP Paribas, Kasturba Gandhi Marg, ·
Sanwa Bank, Kasturba Gandhi Marg, ·
ABN Amro Bank, ·
Union Bank of ·
Credit Lyonnais Bank, ·
Citibank N.A., ·
State Bank of · Bank – Mizuho Corporation Bank Limited · Standard Chartered Grindlays Bank Limited |
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse
and Company Chartered
Accountants |
|
Address : |
B-102, Himalaya
House, 23, Kasturba Gandhi Marg, |
|
|
|
|
Holding Company : |
Suzuki Motor Corporation |
|
|
|
|
Joint Ventures : |
· J.J. Impex (Delhi) Private Limited · Mark Exhaust Systems Limited · Bellsonica Auto Component India Private Limited · FMI Automotive Components Limited · Krishna Auto Mirrors Limited · Inergy India Automotive Components Limited · Maruti Insurance Broking Private Limited ·
Manesar Steel Processing India Private Limited |
|
|
|
|
Associates: |
·
Asahi India Glass Limited ·
Bharat Seats Limited ·
Caparo Maruti Limited ·
Climate Systems India Limited ·
Denso India Limited ·
Jay Bharat Maruti Limited ·
Krishna Maruti Limited ·
Machino Plastics Limited ·
SKH Metals Limited ·
Nippon Thermostat ( ·
Sona Koyo Steering Systems Limited ·
Citicorp Maruti Finance Limited ·
Maruti Countrywide Auto Financial Services
Limited ·
Magneti Marelli Powertrain India Private Limited ·
Suzuki Powertrain India Limited * |
|
|
|
|
Fellow
Subsidiaries : |
·
Suzuki Motor Iberica, S.A. ·
Suzuki Automobile Manufacturing ( ·
Suzuki ·
Suzuki Auto South ·
Suzuki Italia S P A ·
PT Indomobil Suzuki International ·
Suzuki Australia Pty. Limited ·
Suzuki ·
Suzuki GB PLC ·
Magyar Suzuki Corporation Limited ·
Suzuki Motor Espana, S.A. ·
Suzuki International ·
Suzuki Motor ( ·
Suzuki Cars ( ·
SUZUKI PHILIPPINES, INC.-814 ·
Suzuki Motorcycle India Private Limited ·
American Suzuki Motor Corporation ·
Suzuki Automobile ( |
|
|
|
|
Subsidiaries: |
·
Maruti Insurance Agency Services Limited ·
Maruti Insurance Agency Logistics Limited ·
Maruti Insurance Distribution Services Limited ·
Maruti Insurance Agency Network Limited ·
Maruti Insurance Agency Solutions Limited ·
True Value Solutions Limited ·
Maruti Insurance Business Agency India Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
744,000,000 |
Equity Shares |
Rs.5/- each |
Rs.3720.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
288,910,060 |
Equity Shares |
Rs.5/- each |
Rs.1444.550
millions |
|
|
|
|
|
NOTE:
Of the Above -
8,840,000 Equity Shares of Rs.5 each were issued for consideration other
than cash.
156,618,440 Equity Shares of Rs.5 each are held by Suzuki Motor
Corporation, the Holding Company and its nominees
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1445.000 |
1445.000 |
1445.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
137230.000 |
116906.000 |
92004.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
138675.000 |
118351.000 |
93449.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
312.000 |
265.000 |
1.000 |
|
|
2] Unsecured Loans |
2781.000 |
7949.000 |
6988.000 |
|
|
TOTAL BORROWING |
3093.000 |
8214.000 |
6989.000 |
|
|
DEFERRED TAX LIABILITIES |
2512.000 |
2206.000 |
2340.000 |
|
|
|
|
|
|
|
|
TOTAL |
144280.000 |
128771.000 |
102778.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
55294.000 |
50247.000 |
40708.000 |
|
|
Capital work-in-progress |
14286.000 |
3876.000 |
8613.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
51067.000 |
71766.000 |
31733.000 |
|
|
DEFERREX TAX ASSETS |
868.000 |
836.000 |
789.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
14150.000 |
12088.000 |
9023.000
|
|
|
Sundry Debtors |
8933.000
|
8099.000
|
9378.000
|
|
|
Cash & Bank Balances |
25085.000
|
982.000
|
19390.000
|
|
|
Other Current Assets |
1673.000
|
848.000
|
981.000
|
|
|
Loans & Advances |
13722.000
|
15707.000
|
16328.000
|
|
Total
Current Assets |
63563.000
|
37724.000
|
55100.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
29495.000
|
23181.000
|
25696.000
|
|
|
Other Current Liabilities |
6045.000
|
6213.000
|
4662.000
|
|
|
Provisions |
5258.000
|
6284.000
|
3807.000
|
|
Total
Current Liabilities |
40798.000
|
35678.000
|
33976.000
|
|
|
Net Current Assets |
22765.000
|
2046.000
|
20935.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
144280.000 |
128.771 |
102778.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
361282.000 |
289585.000 |
203583.000 |
|
|
|
Income from Services |
1715.000 |
1404.000 |
970.000 |
|
|
|
Other Income |
12227.000 |
10209.000 |
9985.000 |
|
|
|
Total Income (A) |
375224.000 |
301198.000 |
214538.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
29178.000 |
17938.000 |
15685.000 |
|
|
|
Selling & Distribution Expenses |
9600.000 |
9160.000 |
7382.000 |
|
|
|
Purchases made for re-sale |
12782.000 |
9050.000 |
7256.000 |
|
|
|
Consumption of stores and spares parts |
272720.000 |
214881.000 |
150598.000 |
|
|
|
Salaries, Wages, Bonus, etc. |
7036.000 |
5456.000 |
4711.000 |
|
|
|
Consumption of Stores |
3298.000 |
2432.000 |
1978.000 |
|
|
|
Vehicles / Dies for own use |
(257.000) |
(296.000) |
[223.000] |
|
|
|
(Increase)/Decrease to Work in Progress and
Finished goods and Spare Parts |
(600.000) |
(1933.000) |
2818.000 |
|
|
|
TOTAL (B) |
333757.000 |
256688.000 |
190205.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
41467.000 |
44510.000 |
24333.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
244.000 |
335.000 |
510.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
41223.000 |
44175.000 |
23823.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
10135.000 |
8250.000 |
7065.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
31088.000 |
35925.000 |
16758.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8202.000 |
10949.000 |
4571.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
22886.000 |
24976.000 |
12187.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
100499.000 |
80042.000 |
70257.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2289.000 |
2498.000 |
1219.000 |
|
|
|
Proposed Dividend |
2167.000 |
1733.000 |
1011.000 |
|
|
|
Corporate Dividend Tax |
351.000 |
288.000 |
172.000 |
|
|
BALANCE CARRIED
TO THE B/S |
118578.000 |
100499.000 |
80042.000 |
|
|
|
|
|
|
|
|
|
|
Export Value |
34988.000 |
45437.000 |
15022.000 |
|
|
|
|
|
|
|
|
|
|
Import Value |
39044.000 |
30101.000 |
29962.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
79.22 |
86.45 |
42.18 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 1st
Quarter |
30.09.2011 2nd Quarter |
|
Sales Turnover |
|
85293.000 |
78316.200 |
|
Total Expenditure |
|
77149.000 |
73374.300 |
|
PBIDT (Excl
OI) |
|
8144.000 |
4941.900 |
|
Other Income |
|
1800.700 |
1177.400 |
|
Operating
Profit |
|
9944.700 |
6119.300 |
|
Interest |
|
57.500 |
109.200 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
9887.200 |
6010.10 |
|
Depreciation |
|
2424.700 |
2663.700 |
|
Profit
Before Tax |
|
7462.500 |
3346.400 |
|
Tax |
|
1970.200 |
942.000 |
|
Reported PAT |
|
5492.300 |
2404.400 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
5492.300 |
2404.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.10
|
8.29
|
5.68
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.60
|
12.40
|
8.23
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
26.16
|
40.84
|
17.53
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.30
|
0.18
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.32
|
0.37
|
0.44
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.06
|
1.62
|
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL HIGHLIGHTS
The gross revenue (net of
excise) of the Company was Rs.375,224.000 million as against Rs.301,232.00
million in the previous year showing a growth of 24.6 per cent. Sale of
vehicles in the domestic market increased to 1,132,739 units as compared to
870,790 units in the previous year showing a growth of 30.1 per cent. Total
number of vehicles exported was 138,266 as compared to 147,575 last year.
Earnings before interest,
depreciation, tax and amortization (EBIDTA) was Rs.41467.000 million against
Rs.44,510.000 million in the previous year.
Profit before tax (PBT) was Rs.31,088.000 million against Rs.35,925.000 million in the previous year and profit after tax (PAT) stood at Rs.22,886.000 million against Rs.24,976.000 million in the previous year.
SUBSIDIARY
COMPANIES AND THEIR ACCOUNTS
The Company’s subsidiaries - Maruti Insurance Business
Agency Limited, Maruti Insurance Distribution Services
Limited, Maruti Insurance Agency Solutions Limited, Maruti
Insurance Agency Network Limited, Maruti Insurance Agency Services Limited and
Maruti Insurance Agency Logistics Limited generated a total income of Rs457.700
million which includes dividend income of Rs.22.200 millions earned from investments
in mutual funds. Profit before tax (PBT) was Rs.199.900 millions. During
2010-11, total Rs.0.657 Million policies were issued.
The Company’s subsidiary ‘True Value Solutions Limited’
has contributed towards smooth operations of business processes and supported
the dealerships in enhancing the sale of certified pre-owned cars under the
brand ‘Maruti True Value’. It has contributed significantly to the efforts of
customer retention by facilitating re-purchase of new cars and has made
significant contribution towards enhancing dealers’ profitability.
In terms of the general circular dated 8th
February 2011 issued by Government of India, Ministry of Corporate Affairs,
copy of the balance sheets, profit and loss accounts, reports of the board of
directors and auditors of the subsidiary companies have not been attached with
the balance sheet of the Company. Annual accounts of the subsidiary companies
and the related detailed information shall be made available to shareholders of
the Company and subsidiary companies seeking such information at any point of
time. The annual accounts of the subsidiary companies shall also be available
for inspection by any shareholder at the head office of the Company and of the
subsidiary companies concerned. Hard copy of details of accounts of
subsidiaries shall be furnished to any shareholder on demand. Further, pursuant
to Accounting Standard AS – 21 issued by the Institute of Chartered Accountants
of India, consolidated financial statements presented by the Company include
the financial information of its subsidiaries.
OVERVIEW
The Indian economy continued on its growth trajectory in FY2010-11. The
GDP grew at 8.5 per cent, aided by recovery in agriculture and good performance
in the industry and services sector. As a consequence, the domestic car market
remained buoyant and posted a healthy growth rate of 29 per cent, higher than
26 per cent achieved in the previous year (FY2009-10), which was substantially
higher than what was anticipated at the beginning of the year.
Despite the unexpected demand for cars and the capacity limitations in
the Company, we could produce and
sell 1,271,005 units, a growth of 24.8 per cent over the previous year.
This became possible due to higher levels
of productivity and many innovative practices at the shop floor level.
The vendors, despite being taken by surprise, also managed to support the
Company in its efforts to increase production. As a consequence, the Company
was able to marginally improve its market share.
Exports to the European markets fell due to a decline in demand
following the withdrawal of scrappage incentives in many countries. However,
overall there was only a small decline in exports as sales to other non-
European markets increased.
The profit margins came under pressure due to adverse movements of the
Yen, Euro and the Dollar; volatile commodity markets and higher royalty
payments. Costs also increased due to introduction of Bharat-IV norms, and
higher spending on research and development. At the same time, competition
continued to grow stronger.
Several India-specific cars were launched by competitorrs. These were
priced aggressively. As a consequence, the ability to pass on the rising costs
was constrained to an extent. Nevertheless, the EBITDA remained above
10 per cent thanks to higher volumes, productivity and cost cutting
measures.
During FY2010-11, the Company achieved Net Sales of ` 361,282 million
(Net of Excise), a growth of 24.8 per cent over the previous year. Earnings
before interest, depreciation, tax and amortisation (EBITDA) stood at ` 41,467
million while Profit after Tax (PAT) was ` 22,886 million.
Customers continued to rate the Company best in sales and service
satisfaction, as measured by JD Power surveys. The Company has now been rated
best in service satisfaction for eleven years in a row.
The Company has instituted projects to further strengthen its market
position and profitability and to build RandD
capability and capacity for the future. Production capacity is being
enhanced with two more plants at Manesar. Each of these plants will have an
installed annual capacity of 250,000 cars.
SUSTAINABILITY
The foundation of Company’s sustainability rests on its robust
stakeholder engagement process. The Company
has identified six key stakeholder groups (employees and their families,
local community and society, environment and regulatory authorities, customers
and their families, shareholders and investors, dealers, suppliers, and other
business partners) and has developed ways to engage with them in a systematic
and periodic manner.
On the environmental front, in FY2010-11 the Company made improvements
on its energy and water consumption at its manufacturing sites at Gurgaon and
Manesar. Emission levels at both sites were strictly monitored. To reduce
emissions due to transportation, the Company is working on a project to
transport cars by rail. The Company continued to implement its flagship driving
training programme through Institutes of Driving and Traffic Research (IDTR)
and Maruti Driving Schools (MDS). During the year, driving training was
imparted to 187,000 people across the country. The Company has 166 functional
MDS set up in partnership with dealers and 4 IDTRs set up with state
governments. The Company also focused on generating awareness on road safety
through sessions for school children and worked on advocacy with industry
bodies, SIAM and CII.
For vocational training, the Company worked with seven Industrial
Training Institutes (ITIs) across states for their
overall upgradation. This included improvement in infrastructure,
teacher training, repair and maintenance of machines and tools and industry
exposure for students and faculty.
In the four villages neighbouring the Manesar plant, the Company worked
on healthcare, education, infrastructure development and vocational training.
Here too, the Company adopted a partnership approach and worked closely with
villagers and select local NGOs to implement projects.
The Company publishes it sustainability report every year as per GRI G3
reporting guidelines. This report is
externally verified by an independent assurance agency.
BUSINESS PERFORMANCE
Domestic Market
Sales remained buoyant in the rural and the semi-urban markets. The
focus of the Company to build infrastructure to sell and service cars in these
markets paid good dividends. The top-10 cities, where sales had been sluggish
during the previous year, also came back strongly. Overall, growth was evident
across markets, geographies, sectors and consumer segments.
The Indian passenger vehicle market reached a size of approximately 2.5
million unit sales in the year. This puts India amongst the top seven markets
in the world. Global car manufacturers are continuously enhancing their efforts
in India. Competition intensified in the high volume segments, including
compact cars and entry sedans. The new models created excitement in the market
and kept consumer interest alive.
The Company marginally increased its share from 44.6 per cent to 44.9
per cent in passenger vehicles. Some of the Company’s models continue to be on
waitlist despite production being increased very substantially. The philosophy
of the Company is to provide best value to the customer over the lifecycle of
the car. The selection of product technology is aligned to deliver this.
In keeping with this approach, the K-series gasoline engines were
introduced in FY2008-09. These are compact, lightweight, low-friction, more
fuel efficient engines. Although there is normally a trade-off between
performance
(acceleration) and fuel efficiency, the K-series engine is able to
strike a balance and deliver on both parameters. This has been appreciated by
the customers and cars with K-series engines are selling very well.
During the year, these engines were made available in more models. The
K-series engines are now mounted on Alto, A-star, WagonR, Estilo, Swift, Ritz
and Dzire. These engines are manufactured at the state-of-the-art, fully
integrated manufacturing facility at the Gurgaon plant.
During FY2010-11, the Company commissioned phase-3 of the machining and
casting facility for the K-series engines, taking the total manufacturing
capacity for these engines to more than 780,000 per annum.
During the year, the Company launched refreshed variants of WagonR and
Alto with the new K-series engines.
SX4 was offered with a Super Turbo Diesel engine. The Company launched
the Suzuki Kizashi, India’s first sports
luxury sedan. It sports a 2.4 litre engine and is endowed with
best-in-class features.
The Company developed in-house i-GPI (Integrated Gas Port Injection)
Technology and launched factory-fitted CNG variants for five of its models:
Alto, WagonR, Eeco, Estilo and SX4. This i-GPI technology delivers higher fuel
efficiency compared to conventional CNG cars. Besides, the loss of power
compared to gasoline engine cars, a shortcoming of conventional CNG technology,
is negligible in the case of i-GPI. The Company believes that once CNG
availability improves across the country, it could become a popular option
owing to its low cost and environment friendliness.
Apart from launching new products, the Company added 131 new sales
outlets to reach 933 outlets in 668 cities and increased its service reach to
1,395 cities with 2,946 outlets. The Company’s network is now servicing about
1.2 million vehicles every month. With increasing service load, the
importance of training has taken priority. The
Company has initiated tie–ups with 28 ITIs (Industrial Training Institutes)
to enhance availability of technical manpower at workshops.
The Company benefited from sales in both the top cities and the rural
hinterland with the help of its network reach. In the last four years, rural sales
have grown to contribute 20 per cent of total domestic sales. About 40 per cent
of the Company’s sales outlets are in the rural format, with a scaled down
investment that enables viability on lower volumes.
With shortening car ownership cycle, the residual value of the car is becoming an important determinant of the total cost of ownership. The Company’s pre-owned car business sold 212,640 cars in the year, a growth of 30 per cent over the previous year.
The Company is in the process of restructuring its insurance initiative to align it to regulatory requirements and make it more customer-friendly.
OPERATIONS
With market demand much beyond initial projections, and the Company
already facing capacity constraints, the challenge during the year was to
enhance productivity and efficiency to new levels. With consistent efforts on
innovation, people development and process upgradation the Company was able to
manufacture far beyond capacity. The Company increased manufacturing capability
through better facility utilisation, higher plant-model flexibility, in-house
automation initiatives and ultra-modern flexi-lines. By March 2011 production
was at an annualised rate of 1.4 million units per annum. The ramp-up time of
new models improved by 40 per cent, enabling the Company to meet spurts in
demand.
The Company’s Production Management System (PMS), which has enabled
sharp improvement in efficiency and productivity in recent years, moved to the
next phase. The core of PMS lies in involving people at all levels and
generating ideas through a series of brainstorming sessions. The PMS strives to
achieve manufacturing excellence in four areas: Safety, Quality, Productivity
and Cost. The ideas generated are worked upon by cross-functional teams across
verticals. This has led to significant improvement in process quality and
productivity. An example is pre-delivery inspection, a parameter of production quality measured during tests at
dealership. It has improved by 30 per cent owing to cross-functional efforts by
Production, Quality Assurance and Service.
People involvement is the key to process improvements and cost
reduction. With committed focus and special drives, employees continued to
generate suggestions towards continuous improvement in systems and processes,
productivity and in eliminating waste.
The Company undertook 29 major automation initiatives in-house, further
reducing cost. An in-house Technical
Training Centre maps and imparts right technical skills to people. It
currently offers 36 modules. The Company also observes a theme-based safety day
every month, involving almost all employees in the effort.
OUTLOOK
The market for passenger vehicles in India is estimated to grow to 4.5
million to 5 million units by 2015-16. Although rising inflation, interest
rates and crude oil prices are concerns in the short term, the Company is
optimistic about the medium and long term. The Company is gearing up for
growth.
Initiatives to expand manufacturing capacity are underway. The Company’s
products are well received by customers. SMC’s design philosophy of aggressive
and sporty cars, K-series technology and the popularity of the
Company’s diesel car offerings augur well for the future.
To supplement this, the Company is stepping up its R and D capability to
work in a unified way with SMC and offer a regular pipeline of new and
refreshed models. The Company’s network of sales and service outlets continues
to be its strength. Network is set to expand in the future, and will help tap
opportunity as economic prosperity widens and deepens in the country.
High commodity prices and adverse currency movements continue to be the
challenges. Besides existing efforts to boost productivity, reduce waste and
enhance value, the Company is working on new initiatives like higher
localisation and hedging to reduce the impact of commodity prices and currency.
The Company is conscious that talent will be key to achieving the goals
envisaged for the medium term. Specific initiatives are being taken in the area
of recruitment and development. The Company is working closely with suppliers
and dealers to prepare them for growth as well as higher competitive intensity.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.08 |
|
|
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.68.83 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
yes |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
79 |
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.