MIRA INFORM REPORT

 

 

Report Date :

21.12.2012

 

IDENTIFICATION DETAILS

 

Name :

COSMA INTERNATIONAL (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Plot #A-12, MIDC Talegaon, Navlakh Umbare, Maval District, Pune – 410 507, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

07.05.2009

 

 

Com. Reg. No.:

11-133906

 

 

Capital Investment / Paid-up Capital :

Rs.50.000 Millions

 

 

CIN No.:

[Company Identification No.]

U34200PN2009FTC133906

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEC07876B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Sheet Metal Parts for Passenger Cars.

 

 

No. of Employees :

150 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Magna Cyprus Holding Limited, Cyprus.

 

It is an established company having moderate track record. The latest financials are not made available with the Government Department.

 

As per previous year’s, there appear some accumulated losses. However, subject gets good support from its group companies.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be unknown.

 

The company can be considered for business dealings with some cautions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DECLINED

 

Management non-cooperative

 

LOCATIONS

 

Registered Office/ Factory 1 :

Plot #A-12, MIDC Talegaon, Navlakh Umbare, Maval District, Pune – 410 507, Maharashtra, India

Tel. No.:

Not Available

Mobile No.:

91-9552543829 (Mr. Dinesh – Maintenance Engineer)

Fax No.:

Not Available 

E-Mail :

SChakraborty@cosma.com

ashind@cosma.com

Kishore.Kotagiri@vehmaintl.com

Website :

www.cosma.com

 

 

Factory 2 :

Satav Industrial Estate, Industrial Gala No. # 03, Gat # 376, Kharabwadi, Behind Racold, Chakan-Talegaon Road, Khed Taluka, Pune – 410 501, Maharashtra

Tel. No.:

91-2135-677420/ 677405/ 677440/ 677448/ 677409

Fax No.:

91-2135-677410

 

 

DIRECTORS

 

As on 30.06.2011

 

Name :

Mr. Douglas Richard Tatters

Designation :

Director

Address :

685, Kingsmere Ave, New Market, Canada, L3X1L5

Date of Birth/Age :

15.03.1961

Date of Appointment :

07.05.2009

DIN No.:

01384498

 

 

Name :

Mr. Eric Jon Wilds

Designation :

Director

Address :

22540, Arden Glen Ct., Novi, Michigan - 48374, USA

Date of Birth/Age :

04.03.1967

Date of Appointment :

07.05.2009

DIN No.:

02387126

 

 

Name :

Mr. Seetarama Swamy Kotagiri

Designation :

Director

Address :

45, Roundtree, Rochester Hills, MI 48307, Michigan, USA

Date of Birth/Age :

17.12.1968

Date of Appointment :

07.05.2009

DIN No.:

02393025

 

 

Name :

Mr. Prasad Vasudeva Rao

Designation :

Director

Address :

MP209, Suryodaya Apartments, Mangalya Swapnaloka, Varthur Hubli, Near Marathahalli Bridge, Bangalore – 560 037, Karnataka, India

Date of Birth/Age :

05.08.1965

Date of Appointment :

30.09.2010

DIN No.:

03259082

 

 

KEY EXECUTIVES

 

Name :

Mr. Amul Shinde

Designation :

Account Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Names of Shareholders

 

 

No. of Shares

Magna Cyprus Holding Limited, Cyprus

 

122500000

Magna Steyr Inc., Canada

 

1

 

As on 30.06.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Sheet Metal Parts for Passenger Cars.

 

 

Products :

Product Description

 

Item Code No.

Modular Brackets – IP Beam

870790.00

 

PRODUCTION STATUS (AS ON 31.12.2010)

 

Particulars

Unit

Installed Capacity

Actual Production

Modular Bracket – IP Beam

Nos.

128350

30284

Door Beam

Nos.

NA

79064

 

Notes:

1. Inter terms of Notification No. 477(E) dated July 25, 1991, issued by the Ministry of Industry, Department of Industrial Development, the Company’s products have been exempted from industrial licensing. Accordingly, disclosure requirements concerning licensed capacity are not applicable.

2. The installed capacity is as certified by the management and relied on by auditors, without verification, this being a technical matter. Installed Capacity for Door Beam is not available with the management.

 

GENERAL INFORMATION

 

No. of Employees :

150 (Approximately)

 

 

Bankers :

Citi Bank, Pune Branch, Maharashtra, India

 

 

Facilities :

Unsecured Loan

31.12.2010

(Rs. in Millions)

31.12.2009

(Rs. in Millions)

Short Term Loans

 

 

- From Banks

45.000

0.000

Total

45.000

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.V. Ghatalia and Associates

Chartered Accountants 

Address :

C-401, 4th Floor, Panchshil Tech Park, Yerwada (Near Don Bosco School), Pune – 411 006, Maharashtra, India

Tel No.:

91-20-66036000

Fax No.:

91-20-66015900

Income-tax PAN of auditor or auditor's firm :

AACFS6921Q

 

 

Holding Company :

Magna Cyprus Holding Limited, Cyprus

 

 

Ultimate Holding Company :

Magna International Inc., Canada

 

 

Fellow Subsidiaries (As certified by management) :

v  Vehma Engineering Solutions (India) Private Limited, India

v  Cosma International Inc., Canada

v  Vehma International of America Inc., USA

v  Cosma Engineering Europe AG, Austria

v  Promatek Research Center, Canada

v  Litens Automotive India Private Limited, India

v  Sonara Forming SA de CV, Mexico

v  Cosym LLC, Russia

v  Magna Tech and Tools Systems, China

v  Magna Steyr Inc., Canada

 

 

CAPITAL STRUCTURE

 

After 30.06.2011

 

Authorised Capital : Rs.2050.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

122500000

Equity Shares

Rs.10/- each

Rs.1225.000 Millions

 

 

 

 

 

As on 30.06.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

122500000

Equity Shares

Rs.10/- each

Rs.1225.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

122500000

Equity Shares

Rs.10/- each

Rs.1225.000 Millions

 

 

 

 

 

As on 31.12.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Of the Above:

 

(i) 4999999 equity shares are held by Magna Cyprus Holding Limited, Cyprus the Holding Company.

(ii) 1 equity share held by Magna Steyr Inc., Canada

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

SOURCES OF FUNDS

 

 

31.12.2010

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

50.000

50.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

(57.594)

(41.495)

NETWORTH

 

(7.594)

8.505

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

45.000

0.000

TOTAL BORROWING

 

45.000

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

37.406

8.505

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

33.505

29.270

Capital work-in-progress including capital advances

 

12.444

4.787

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

13.268

0.041

 

Sundry Debtors
 

52.848

0.420

 

Cash & Bank Balances
 

42.024

26.079

 

Other Current Assets
 

0.000

0.350

 

Loans & Advances
 

123.069

48.218

Total Current Assets
 

231.209

75.108

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

132.792

94.717

 

Other Current Liabilities
 

103.733

2.691

 

Provisions
 

3.227

3.252

Total Current Liabilities
 

239.752

100.660

Net Current Assets
 

(8.543)

(25.552)

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

37.406

8.505

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2010

31.12.2009

 

SALES

 

 

 

 

 

Turnover (Net)

 

141.702

9.364

 

 

Other Income

 

1.414

0.346

 

 

TOTAL                                     (A)

 

143.116

9.710

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw material and bought-out components consumed

 

47.775

0.117

 

 

Cost of Tooling

 

51.930

34.792

 

 

Personnel Expenses

 

11.489

2.318

 

 

Operating and Other Expenses

 

40.844

11.432

 

 

(Increase) in Inventories 

 

(2.622)

0.000

 

 

TOTAL                                     (B)

 

149.416

48.659

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

 

(6.300)

(38.949)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

 

2.335

0.068

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

 

(8.635)

(39.017)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

7.464

2.478

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

 

(16.099)

(41.495)

 

 

 

 

 

Less

TAX                                                                  (H)

 

0.000

0.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

 

(16.099)

(41.495)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

(41.495)

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

(57.594)

(41.495)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

 

7.072

0.145

 

TOTAL EARNINGS

 

7.072

0.145

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

 

5.084

5.373

 

 

Tooling Cost

 

0.000

31.531

 

 

Raw Material

 

14.235

0.422

 

TOTAL IMPORTS

 

19.319

37.326

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

(3.22)

(8.30)

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.12.2010

31.12.2009

PAT / Total Income

(%)
 

(11.25)

(427.34)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

(11.36)

(443.13)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

(6.08)

(39.75)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

2.12

(4.88)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

(37.50)

11.84

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

0.96

0.75

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.12.2010

(Rs. in millions)

31.12.2009

(Rs. in millions)

Sundry Creditors

 

 

- Total outstanding dues of Micro and Small Enterprises

--

--

- Total outstanding dues to creditors other than Micro and Small Enterprises

132.792

94.717

Total

132.792

94.717

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes 

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last two years

Yes

12) Profitability for last two years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

No

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

Yes

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

No

 

 


Note:

The registered office of the company has been shifted from Satav Industrial Estate, Industrial Gala No. # 03, Gat # 376, Kharabwadi, Behind Racold, Chakan-Talegaon Road, Khed Taluka, Pune – 410 501, Maharashtra to the present address.

 

NATURE OF OPERATIONS:

 

The Company is primarily engaged in the manufacture of sheet metal parts for passenger cars. The Company has been incorporated on May 7, 2009 under the Companies Act, 1956. The Company is a 99.99% subsidiary of Magna Cyprus Holding Limited, Cyprus. 

 

PERFORMANCE:

 

Turnover during the financial year was Rs.141.702 millions. Management of the company has taken several steps, subsequent to the balance Sheet date, to aggressively better the performance of the company in coming years

 

FIXED ASSETS:

 

Tangible Assets:

v  Plant and Machinery

v  Furniture and Fittings

v  Leasehold Improvements

v  Computers

v  Office and Other Equipments

Intangible Assets:

v  Software

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.89.11

Euro

1

Rs.72.47 

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

27

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.