1. Summary Information
|
|
|
Country |
|
|
Company Name |
SONA KOYO
STEERING SYSTEMS LIMITED |
Principal Name 1 |
Mr. Surinder Kapur |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Sanjay Kapur |
|
|
|
Registration # |
55-18415 |
|
Street Address |
UGF -
6, Indraprakash, 21, Barakhamba Road, New Delhi – 110001, India |
||
|
Established Date |
14.06.1984 |
SIC Code |
-- |
|
Telephone# |
91-11-23311924 / 1925 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-11-23327205 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Automotive Components |
|
|
# of employees |
689
(Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs. 198,742,000/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of
Promoter and Promoter – 52.65% Public Shareholding
– 47.35% |
Banking |
State Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
28 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba
(47) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint Ventures |
-- |
Sona Autocomp Inc. |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,835,404,000 |
Current Liabilities |
1,663,391,000 |
|
Inventories |
472,493,000 |
Long-term Liabilities |
2,117,181,000 |
|
Fixed Assets |
3,088,497,000 |
Other Liabilities |
497,379,000 |
|
Deferred Assets |
24,829,000 |
Total Liabilities |
4,277,951,000 |
|
Invest& other Assets |
894,416,000 |
Retained Earnings |
1,838,946,000 |
|
|
|
Net Worth |
2,037,688,000 |
|
Total Assets |
6,315,639,000 |
Total Liab. & Equity |
6,315,639,000 |
|
Total Assets (Previous Year) |
5,702,308,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
10,316,976,000 |
Net Profit |
374,113,000 |
|
Sales(Previous yr) |
8,502,990,000 |
Net Profit(Prev.yr) |
216,453,000 |
MIRA
INFORM REPORT
|
Report Date : |
11.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
SONA KOYO STEERING SYSTEMS LIMITED |
|
|
|
|
Registered
Office : |
UGF - 6, Indraprakash,
21, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
14.06.1984 |
|
|
|
|
Com. Reg. No.: |
55-18415 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 198.742 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29113DL1984PLC018415 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES05669G |
|
|
|
|
Legal Form : |
Public Limited Liability Company.
The company's shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Automotive Components for four Wheelers. |
|
|
|
|
No. of Employees
: |
689 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject 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.
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 Office : |
UGF - 6, Indraprakash, 21, Barakhamba Road, New Delhi –
110001, India |
|
Tel. No.: |
91-11-23311924 / 1925 |
|
Fax No.: |
91-11-23327205 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Liaison Office : |
2nd Floor, |
|
|
|
|
Corporate Office / Factory 1 : |
38/6, NH-8, |
|
Tel. No.: |
91-124-4685000 |
|
Fax No.: |
91-124-4104611 / 4104621 |
|
Website : |
|
|
Total Site Area: |
56970 sq. m |
|
Total Floor
Area: |
14125 sq. m |
|
|
|
|
Factory 2 : |
P.O. Box 14, Chennai – Bangalore Highway (NH – 4), Sriperumpudur, District Chinglepet-602105, Tamil Nadu, India |
|
Tel. No.: |
91-44-37170000 |
|
Fax No.: |
91-44-27162349 |
|
Total Site Area: |
56970 sq. m |
|
Total Floor
Area: |
10890 sq. m |
|
|
|
|
Factory 3 : |
Plot No.32, Industrial Area, Phase II, Dharuhera, District
|
|
Tel. No.: |
91-1274-242978 / 82 |
|
Total Site Area: |
20117 sq. m |
|
Total Floor
Area: |
9255 sq. m |
|
|
|
|
Factory 4 : |
Plot No.D9, TML Vendor Prk, Survey No.1, Village Northcotepura, Sanand, Ahmedabad, Gujarat, India |
|
Total Site Area: |
16200 sq. m |
|
Total Floor
Area: |
2639 sq. m |
|
|
|
|
Plants : |
· Sona Auto Comp Inc 1061 521 Corporate
Centre Drive, Tel: 91-1803- 448 8862 Fax: 91-1803- 802 5173 ·
Sona
Auto Comp Europe S.A.R.L. Rue du 17 November,
25.350 Tel : 33 3 81 36 46 38 Fax : 33 3 81 36 43 63 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Surinder Kapur |
|
Designation : |
Chairman |
|
Qualification : |
Ph. D.(Mechanical
Engineering), |
|
Date of Appointment : |
01.10.1990 |
|
|
|
|
Name : |
Mr. Sanjay Kapur |
|
Designation : |
Vice Chairman and Managing Director |
|
|
|
|
Name : |
Mr. K M Deshmukh |
|
Designation : |
Deputy Managing Director |
|
|
|
|
Name : |
Mr. Ramesh Suri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kazuhiko Ayabe |
|
Designation : |
Nominee of Maruti Suzuki India Limited |
|
|
|
|
Name : |
Mr. Jug Mohan Kapur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. L. Passi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravi Bhoothalingam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K. Chadha |
|
Designation : |
Lt. Gen. (Retired) Shamsher Singh Mehta |
|
|
|
|
Name : |
Mr. Shamsher Singh Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Rakesh Mohan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sudhir Chopra |
|
Designation : |
Company Secretary |
|
Qualification : |
B. Com, FCS, LL.B |
|
Date of Appointment : |
15.05.1993 |
|
|
|
|
Executive Management : |
·
Dr. Surinder Kapur ·
Mr. Sunjay Kapur ·
Mr. K. M. Deshmukh ·
Mr. P. V . Prabhu Parriker ·
Mr. Sudhir Chopra ·
Mr. Sunder Rajan |
|
|
|
|
Operating Management: |
·
Mr. Sunjay Kapur ·
Mr. K. M. Deshmukh ·
Mr. Sudhir Chopra ·
Mr. Sunder Rajan ·
Mr. A. Fujimoto ·
Mr. A. D. Rao ·
Mr. Rajiv Chanana ·
Mr. Manoj Sharma ·
Mr. Deepak Arora ·
Mr. Shyamal Saha ·
Mr. P. P. Gaipal |
|
|
|
|
Technical Partners: |
·
JTKT Corporation ·
Mando Corporation ·
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
948,760 |
0.48 |
|
|
63,748,304 |
32.08 |
|
|
64,697,064 |
32.55 |
|
|
|
|
|
|
39,947,108 |
20.10 |
|
|
39,947,108 |
20.10 |
|
Total shareholding of Promoter and Promoter Group (A) |
104,644,172 |
52.65 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,081,146 |
0.54 |
|
|
1,300 |
- |
|
|
1,200,000 |
0.60 |
|
|
1,277,929 |
0.64 |
|
|
3,560,375 |
1.79 |
|
|
|
|
|
|
18,888,855 |
9.50 |
|
|
|
|
|
|
48,557,146 |
24.43 |
|
|
13,003,697 |
6.54 |
|
|
10,087,587 |
5.08 |
|
|
2,500 |
- |
|
|
4,475,257 |
2.25 |
|
|
47,027 |
0.02 |
|
|
5,562,803 |
2.80 |
|
|
90,537,285 |
45.56 |
|
Total Public shareholding (B) |
94,097,660 |
47.35 |
|
Total (A)+(B) |
198,741,832 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
198,741,832 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Automotive Components for four Wheelers. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Steering Product Group |
Nos. |
6309400 |
2668367 |
|
Driveline product group |
Nos. |
1610500 |
-- |
|
Axle Assemblies incl. Comp. |
Nos. |
-- |
856792 |
|
Rack and Pinion Assy. |
Nos. |
-- |
967674 |
|
Column and UJ Assy. |
Nos. |
-- |
1347539 |
GENERAL INFORMATION
|
No. of Employees : |
689 (Approximately) |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
·
State Bank of India ·
Standard Chartered Bank ·
Corporation Bank ·
State Bank of Hyderabad ·
EXIM Bank ·
Allahabad Bank ·
Indian Bank ·
Yes Bank Limited ·
Kotak Mahindra Bank Limited |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
Notes: 1.
Term Loans from Banks include: a)
Rupee Term Loans of Rs. 1641.435 millions
(Previous Year Rs. 1825.400 millions) are secured by first pari passu charge
over the entire movable and immovable fixed assets of the Company, both present
and future, except the assets exclusively charged to Standard Chartered Bank
for Rs. 38.889 millions (Previous Year Rs. 50.000 millions). Loans to the
extent of Rs. 199.500 millions (Previous Year Rs. 210.000 millions) are
further secured by way of second charge on current assets, on pari passu
basis. b)
Corporate Loan of Rs. 300.000 millions (Previous
Year Rs. 225.000 millions) from State Bank of India is secured by way of
first pari passu charge on current assets and second pari passu charge on
movable and immovable fixed assets of the Company. The Loan is further
secured by way of exclusive mortgage on Land situated at Plot No. 19,
Dharuhera Industrial Area, Phase II, District Rewari (Haryana). c)
Term Loan of Rs. 6.330 millions (Previous Year Nil)
from Allahabad Bank is secured by way of exclusive charge on the vehicles
financed out of the said Term Loan. 2.
Term Loans from Other include : Term Loan of Rs. 87.495 millions (Previous Year Rs. 97.200 millions)
is secured by way of second charge on entire assets of the Company situated
at Sanand, Gujarat to be purchased or constructed out of said Term Loan. 3.
The Short Term Loans from Banks are secured by
hypothecation of inventories, book debts and other receivables both present
and future and second pari passu charge on movable and immovable fixed assets
of the Company. Term Loans from Bank and other loans aggregating to Rs. 440.263
millions (Previous Year Rs. 225.000 millions) are repayable within one year. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. P. Puri and Company Chartered Accountants |
|
Address : |
4/18, Asaf Ali Road, New Delhi-110002, India |
|
|
|
|
The
Individual/Entity Excercising Control over the Company : |
·
Dr. Surinder Kapur |
|
|
|
|
The entity
having substantial interest in the Company : |
·
JTEKT Corporation |
|
|
|
|
Joint Ventures : |
·
Sona Autocomp Inc. ·
Sona Autocomp Europe SARL ·
AAM Sona Axle Private Limited |
|
|
|
|
Others : |
·
Sona Somic Lemforder Components Limited. ·
Mahindra Sona Limited. ·
Sona e-Design and Technologies Limited. ·
Pune Heat Treat Private Limited. ·
Sona Mobility Services Limited. ·
Kapur Properties and Investment ·
Sona Okegawa Precision Forgings Limited. ·
Maruti Suzuki India Limited ·
Fuji Autotech AB, Sweden ·
DRSK Management Services Private Limited. ·
Sona Autocomp Holding Private Limited. ·
Fuji Autotech Europe SAS |
|
|
|
|
Subsidiaries : |
·
Sona Stampings Limited. ·
Sona Fuji Kiko Automotive Limited. ·
JTEKT SONA Automotive India Limited. |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
198741832 |
Equity Shares |
Re.1/- each |
Rs. 198.742
Millions |
|
|
|
|
|
Notes:
Out of above :
Equity Shares
Include 8,79,34,000 Equity Shares (Previous Year 8,79,34,000) of Re. 1/- each allotted
as fully paid Bonus Shares by Capitalization of Capital Redemption Reserve.
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 |
198.742 |
198.742 |
198.742 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1838.946 |
1614.972 |
1468.045 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2037.688 |
1813.714 |
1666.787 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2117.181 |
2191.212 |
1814.919 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
575.000 |
|
|
TOTAL BORROWING |
2117.181 |
2191.212 |
2389.919 |
|
|
DEFERRED TAX LIABILITIES |
298.925 |
227.925 |
117.211 |
|
|
|
|
|
|
|
|
TOTAL |
4453.794 |
4232.851 |
4173.917 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3088.497 |
2997.938 |
3071.353 |
|
|
Capital work-in-progress |
240.425 |
196.245 |
199.930 |
|
|
|
|
|
|
|
|
INVESTMENT |
653.991 |
713.357 |
587.476 |
|
|
DEFERREX TAX ASSETS |
24.829 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
472.493
|
390.207
|
279.334
|
|
|
Sundry Debtors |
1153.716
|
913.123
|
807.023
|
|
|
Cash & Bank Balances |
14.529
|
7.861
|
23.263
|
|
|
Other Current Assets |
7.989
|
5.375
|
3.614
|
|
|
Loans & Advances |
659.170
|
478.202
|
616.822
|
|
Total
Current Assets |
2307.897
|
1794.768 |
1730.056 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1508.254
|
1285.496 |
1305.138 |
|
|
Other Current Liabilities |
155.137
|
80.696
|
93.364
|
|
|
Provisions |
198.454
|
103.265
|
16.396
|
|
Total
Current Liabilities |
1861.845
|
1469.457 |
1414.898 |
|
|
Net Current Assets |
446.052
|
325.311
|
315.158
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4453.794 |
4232.851 |
4173.917 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
10316.976 |
8502.990 |
6931.645 |
|
|
|
Other Income |
98.962 |
54.955 |
42.601 |
|
|
|
TOTAL (A) |
10415.938 |
8557.945 |
6974.246 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material and Components Consumed |
7579.260 |
6386.540 |
5623.979 |
|
|
|
Excise Duty on Increase/ Decrease in
Finished goods |
0.000 |
0.000 |
0.058 |
|
|
|
Manufacturing Expenses |
517.000 |
370.221 |
331.551 |
|
|
|
Employee’s Remuneration and Benefits |
761.889 |
555.613 |
538.415 |
|
|
|
Administration, Selling and Other Expenses |
407.369 |
298.502 |
325.954 |
|
|
|
Research and Development Expenses |
23.509 |
15.476 |
9.264 |
|
|
|
Miscellaneous Expenditure Written off |
0.000 |
0.000 |
30.215 |
|
|
|
Decrease/ Increase in Stock of Finished
Goods and WIP |
0.000 |
0.000 |
[2.929] |
|
|
|
TOTAL (B) |
9289.027 |
7626.352 |
6856.507 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1126.911 |
931.593 |
117.739 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
327.468 |
336.124 |
321.679 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
799.443 |
595.469 |
(203.940) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
284.478 |
265.803 |
249.346 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
514.965 |
329.666 |
(453.286) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
140.852 |
113.213 |
[142.975] |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
374.113 |
216.453 |
(310.311) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
61.674 |
(65.253) |
245.058 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Divided |
129.182 |
59.623 |
0.000 |
|
|
|
Tax on Proposed Dividend |
20.957 |
9.903 |
0.000 |
|
|
|
Transfer to General Reserve |
40.000 |
20.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
245.648 |
61.674 |
(65.253) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
437.016 |
318.819 |
628.189 |
|
|
TOTAL EARNINGS |
437.016 |
318.819 |
628.189 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components, Stores & Spares |
1578.913 |
1952.889 |
2144.630 |
|
|
|
Capital Goods |
42.246 |
22.927 |
44.384 |
|
|
TOTAL IMPORTS |
1621.159 |
1975.816 |
2189.014 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.88 |
1.09 |
(1.56) |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3rd Quarter |
31.03.2012 4th
Quarter |
|
Net Sales |
2697.980 |
2723.870 |
2517.920 |
3478.660 |
|
Total Expenditure |
2413.830 |
2461.750 |
2272.760 |
3073.250 |
|
PBIDT (Excl OI) |
284.150 |
262.120 |
245.160 |
405.410 |
|
Other Income |
14.250 |
10.830 |
11.740 |
10.090 |
|
Operating Profit |
298.400 |
270.950 |
256.900 |
415.500 |
|
Interest |
84.620 |
94.780 |
70.200 |
97.970 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
213.780 |
178.170 |
186.700 |
317.530 |
|
Depreciation |
77.380 |
79.420 |
81.990 |
94.640 |
|
Profit Before Tax |
136.400 |
98.750 |
104.710 |
222.890 |
|
Tax |
44.250 |
31.150 |
34.360 |
64.620 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
92.150 |
67.600 |
70.350 |
158.270 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
92.150 |
67.600 |
70.350 |
158.270 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.59
|
2.53
|
(4.45) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.99
|
3.88
|
(6.54) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.50
|
6.88
|
(9.44) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.18
|
(0.27) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.10
|
2.02
|
2.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.22
|
1.22 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
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 three years |
Yes |
|
12) Profitability for last three 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 |
-- |
|
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 |
Yes |
|
30) Major Shareholders, if available |
Yes |
SUBSIDIARY COMPANIES
The Company has the following Subsidiaries:
a)
JTEKT SONA Automotive India Limited (JSAI)
In JSAI, the
Company is holding 49% of the Equity Capital but it has the right to nominate
majority of Directors on the Board of JSAI. This Joint Venture Company has been
established with JTEKT Corporation, Japan with a business objective of
manufacturing Column Type Electric Power Steering (C-EPS) Systems. The Plant of
JSAI is located in Bawal, Haryana. During the year ended 31st March, 2011, JSAI
has achieved total income of Rs. 2504.100 millions and earned net profit of Rs.
95.400 millions.
b)
Sona Fuji Kiko Automotive Limited (SFAL)
In SFAL, the
Company is holding 51% of the Equity Capital. This Joint Venture Company has
been established with FUJI KIKO Company Limited, Japan with a business objective
of manufacturing Columns to be used in the manufacturing of C-EPS by JSAI. The
Plant of SFAL is located in Bawal, Haryana. During the year ended 31st March,
2011, SFAL has achieved total income of Rs. 336.800 millions and earned net
profit of Rs. 7.631 millions.
c)
Sona Stampings Limited (SSL) (Erstwhile known as
”Arjan Stampings Limited”)
This Joint Venture
Company has been established with Arjan Auto Private Limited, India, with a
business objective of Sheet Metal Processing, comprising of press work and
welding within Automotive Component sector. SSL has got its works located at
Farukhnagar, Gurgaon. In SSL, the Company is holding 51.5% of the Equity
Capital. During the year ended 31st March, 2011, the Company has achieved total
income of Rs. 113.500 millions and incurred loss of Rs. 16.100 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
MARKET SCENARIO
2010-11 started in
an environment of incipient domestic recovery amidst uncertainty about the
state of the global
economy, a
perception that was reinforced with the precipitation of the Greek sovereign
debt crisis a few weeks later. Throughout the year, the goal of Reserve Bank of
India’s monetary policy was to nurture the recovery in the face of persistent
global uncertainty while trying to contain the spillover of supply-side
inflation.
The Indian economy
is estimated to have grown by 8.6 per cent during 2010-11. Agricultural growth
was above trend, following a good monsoon. The index of industrial production
(IIP), which grew by 10.4 per cent during the first half of 2010-11, moderated
subsequently, bringing down the overall growth for April-February 2010-11 to
7.8 per cent.
The global economy
during the first quarter of 2011 continued with the momentum of late 2010. The
global manufacturing purchasing managers’ index (PMI) for February 2011 was
close to a record high, while the global services PMI recorded its fastest pace
of expansion in almost five years. International trade performed much better as
compared with last year but the month-on-month momentum remained uneven.
Clearly, global recovery, as a whole, still looks fragile and uneven. However,
consumer confidence in major countries, which improved during January-February
2011, moderated in March 2011 on the back of higher oil prices. GDP growth in
the US, which was strong at 3.1 per cent in Q4 of 2010, slipped to 1.8 per
cent.
At present,
uncertainty over the pace of international growth, and even its durability, has
increased. Inflationary pressures are building in virtually every region. As
per current research, the world’s largest economy, the United States, will be
hard pressed to move beyond a 2.5 – 3% annualized growth range in the absence
of renewed stimulus. The world’s third largest economy, Japan, has probably
slipped back into recession, albeit temporarily. Prospects for most European
countries are limited by the spreading sovereign debt related strains in the
southern peripheral countries, and the increasing bailout costs that the
northern countries, such as Germany, are assuming.
The aftershocks
emanating from Japan’s earthquake are increasingly being felt around the globe
in the form of reduced manufacturing, particularly for automobiles and
technology products. The disruption to supply chains have effectively reduced
global auto assemblies by about 11% YoY in April 2011, a sharp reversal from an
8% YoY increase prior to the tsunami in Japan. The greatest impact is in the
Asia-Pacific region, where Japanese parts have the largest import penetration
in the world’s biggest car-producing region.
The Brent crude
price surged from an average of US$ 75 a barrel during May-September 2010 to
US$ 123 a barrel by April 2011. The International Monetary Fund (IMF), in its
April 2011, World Economic Outlook (WEO), has assumed US$ 107 a barrel for the
full year 2011. Since February 2011, oil prices have come under further
pressure on account of apprehensions about supply disruptions due to political
developments in the Middle East and North African (MENA) region. The demand for
oil is expected to increase with the possibility of Japan substituting some of
its shut-in nuclear power capacity with oil-based generation, combined with
higher energy usage once reconstruction gets underway. Steel prices also
continued to show upward movement throughout the year (refer Chart A and D).
On the Financial
front, with the exception of a brief period of May- August 2010, when Rupee
depreciated against US$, due to the European debt crisis, the pressure this fiscal
has been on rupee to appreciate. Going forward factors like robust capital
flows due to the slow economic recovery in other parts of the world, rising
interest-rate differential in the wake of the RBI’s monetary tightening and
Weak US$ due to ultra-low US interest rates are likely to exert upward pressure
on the Rupee.
As 8.5-9.0 per
cent average annual GDP growth has now become a new benchmark for India to
assess its growth
performance, it
would require special efforts to achieve the same in view of current scenario.
As per CRISIL estimates, the GDP is expected to grow at 8.3 per cent in
2011-12, as the rising cost of credit would slow industrial growth to 8.2 per
cent and agriculture growth, despite a normal monsoon, would decline due to a
higher base.
MARKET SEGMENT
The automotive
industry continued its strong growth momentum during FY-11 with auto sector
sales growing at 26% YoY. The passenger vehicles segment outperformed the
sector with healthy growth of 29% YoY in the same period driven by ballooning
spending power, easier financing and a wider choice of models in an economy
growing at nearly 8%-9% annually.
Ø The passenger
vehicle sales were up by a healthy 29.2% YoY to 2,520,393 units during FY-11
from 1,951,333 units during FY-10 backed by robust demand across each
sub-segment.
Ø The commercial
vehicle sales were up by a healthy 27% YoY to 676,370 units during FY-11 from
532,721 units during FY-10.
As per CRISIL
Research, India is most likely to be one of the fastest growing automobile markets,
and perhaps the third largest, in terms of domestic market volumes, by 2020.
The growth trajectory in automobiles in India was high, in double digits,
during the past decade partly because of the acceleration in economic growth,
and partly, because of favourable factors such as increasing finance
penetration and rising consumer aspirations. The same factors are likely to
continue to drive more than 10 per cent growth in cars, utility vehicles, light
commercial vehicles, and scooters over the next 10 years. As per SIAM
estimates, the sector is expected to grow at 15%-16% in FY-12 despite being
impacted by factors like high inflation, rising raw material, increase in
interest rates and fuel prices.
The Indian
Automobile industry is going to transition from one where a few players
dominated each vehicle segment to a more intensely competitive market. This
will increase product development and marketing costs and have an impact on
profitability of manufacturers. The second big challenge, especially for the
personal vehicle makers, is to tap rural consumers, in terms of product
development, marketing and distribution. The third will be continued policy
uncertainties related to regulations such as emission norms which affect
production and capacity planning. Despite these challenges, it is expected that
support from the Government shall continue to be available for this sector.
This is evident from the fact that in the revenue budget there was no change in
the existing excise duty (10%) on all vehicles, sans the large cars. Further
the increase in allocation towards infrastructure development by 23% to Rs 2140
billion (over 48% of total plan allocation) in FY 2011-12 is a welcome move.
During 2010-11,
the domestic market witnessed a slew of new launches by almost all the OEM’s.
'Cruze' by General Motors, 'Aria' by Tata Motors, 'Alto K-10' by Maruti Suzuki
and the much awaited and acclaimed 'Etios' from Toyota to name a few, apart
from launches in small commercial vehicles. Tata 'Nano', the small car wonder
which could not live up to the market expectations due to the safety issues saw
the volumes zoom to levels of 10,000 cars in Mar 2011 on the back of renewed
marketing efforts by the company.
In this buoyant
scenario, Subject Gross Sales increased substantially from Rs. 9,290 Million in
2009-10 to Rs. 11,521 Million in 2010-11 and the Net Sales grew from Rs. 8,503
Million to Rs. 10,317 Million over the same period, an increase of 21.33% in
net sale over the previous year.
On the export
side, the efforts put in for growing strategic sourcing business and exports to
new avenues to Europe, South America started yielding results reflected in
Subject revenue increase by 46% YoY to Rs 463 Million
OPERATIONS
Management focus, during
the year, was towards improving capacity utilization and Value Addition per
employee. subject, at the operating levels, improved its Capacity Utilization
by producing 4,983,580 units under the Steering and Column Assembly group as
compared to 4,257,385 units produced last year (an increase of 17%).
A new
Manufacturing facility at Sanand in Tata Vendor Park started commercial
production in the last quarter after overcoming the challenges faced in the
relocation of civil structure from Singur, West Bengal.
With the help of
the In-house R&D efforts, Subject has now developed the EPAM (Electronic
Power Assist Module) for off highway vehicle applications. Facilities to
manufacture EPAM have been set up at the Dharuhera Plant and supplies have been
made for pilot production. Subject is now preparing for mass production in
FY-12.
PROFITABILITY AND COMPETITIVENESS IMPROVEMENT
Subject achieved
21% growth in sales turnover to reach Rs. 10317 million. Subject is committed
to exceed Customer expectations by consistently providing high quality
products. Management focus towards improving capacity utilization and Value
Addition per employee, supported by strong market demand, helped the Company to
achieve significant growth in turnover and profitability. Subject was able to
make a PAT of Rs. 374 million in FY-11, a significant increase over PAT of Rs.
216 million made in FY-10.
Subject has
continued with its efforts to improve the level of localization of various
imported parts. This has helped to bring the Import content down from 33% to
18% of total material cost. Various VA/VE activities were initiated along with
active participation with Suppliers to improve efficiency of operations. All of
these factors resulted in an overall reduction in material cost from 75% in
FY-10 to 73% in FY-11.
To improve
manpower efficiency, Subject initiated a major HR exercise during the year
involving a detailed study
of Job Description
at various levels in the organization, define Competencies for all levels of
management, and run an assessment centre with an eye on the future organization
structure and a Customer Facing Organization.
Another initiative
towards competitiveness improvement was to upgrade IT infrastructure during the
year. The Oracle ERP application used by the Company for Financial Accounting,
Material Management and Sales and Distribution Management was upgraded from
Release 11i to Release 12 with IBM acting as Implementation partner for this
exercise. In addition, the Company has set up PPMS (Product Profitability
Management System) with the help of 3CiT. These initiatives shall deliver
robust financial controls, streamlined processes, and reduced operating costs.
AWARDS AND RECOGNITION
Subject once again
achieved recognition of its excellence. Subject was awarded, by Maruti Suzuki,
Excellence Award under the categories of “Research & Development” and “Tier
2 Up-gradation”. Subject was also awarded with “Best Award for Quality<
2PPM” by EZ-Go in October, 2011.
SUPPLY CHAIN MANAGEMENT:
Subject continues to
build and maintain sustainable relationships with it’s supply chain
particularly in relation to long-term strategic direction of the business.
Vendor management is critical to subject, as nearly 73 percent of the Net Sales
is currently made up of material cost. Subject continues to be benefited from
the restructured and rationalized Supply Chain Team for better optimization of
resources and increased customer focus.
Market growth in
FY-11, led to serious supply constraints as Tier II suppliers could not foresee
investment requirements to increase production capacity and improve technology.
This resulted into difficulties in meeting customer requirements as well as
payment of premium freight despite establishing strong logistic controls. This
has prompted the Company to seriously explore options of backward integration
for implementation in FY-12.
Subject has also
decided to participate in the VSME (Visionary Small and Medium Enterprises)
project under Visionary Leaders for Manufacturing (VLFM) Programme run by CII,
JICA (Japan International Co operation Agency, Japan) and NMCC (National
Manufacturing Competitiveness Council, Government of India) under the
Indo-Japan Cooperation Agreement 2006. The faculty for the programme includes
Chief Advisor, Professor Shoji Shiba – an international expert in TQM and
Breakthrough management. This program is directed towards improving the
technical and operational efficiency of their suppliers. Subject technical team
will work directly with the selected suppliers to help them improve efficiency
of their manufacturing operations and achieve technological changes.
OUTLOOK
The automotive
industry remains one of the highest revenue-earning industries in India
contributing majorly to India’s GDP, providing direct and indirect employment
to millions of people. The market outlook for the industry remains promising
with demand across the car segments. India continues to consolidate its
position on the global front and now accounts for 5% of global auto production,
up from 1.4% at the beginning of 2000. The investment in the industry is
expected to be up to USD 17bn in fresh capacity over the next four years and
the investment in automotive components is expected to be USD 12bn over the
next six years driven by strong technological capability and availability of
trained manpower at competitive prices.
As per Industry
estimates, growth rate in the Auto sector is expected to moderate to 15%-16% in
FY-12 mostly because of high inflation, rising raw material prices, increase in
interest rates and fuel prices. However an expanding middle class population,
growing earning power, industrial development and Government’s focus to build
infrastructure, the demand for passenger cars and commercial vehicles shall
continue to grow.
Other developments
in the Automobile sector will include gradual shift of production facilities
from high-cost regions in North America and European Union to lower-cost
regions such as China, India and South America. The Asian countries especially
China and India are expected to account for 40% of growth in the auto industry
over the next five to seven years. Cost & Efficiency optimization shall be
the key words.
FINANCIAL REVIEW
The summarised financial position is explained below:
Ø Net income from
operations increased by 21.33% from Rs. 8,503 million in 2009-10 to Rs. 10,317
million in 2010-11 driven by growth in market demand.
Ø Material Cost as %
of Sales declined from 75.11% in FY-10 to 73.46% in FY-11 despite upward
movement in commodity prices and range bound fluctuation in foreign exchange.
Ø Other Operating
expenses (Manufacturing, Administration and Selling) increased from 8% to 9%,
primarily due to stress faced in supply chain management.
Ø Increase in demand
led to optimum capacity utilization of manufacturing facilities of the Company.
With capital expenditure of Rs 394 million, there was an increase in
Depreciation charge from Rs. 265.8 million to Rs. 284.4 million.
Ø PAT as a % of
Sales improved from 2.6% in FY10 to 3.6% in FY-11.
Ø The Company has announced
a dividend of 65% compared to 30% last year.
Ø Earning per share
(EPS) increased from Rs 1.09 in FY-10 to Rs 1.88 FY-11.
Ø ICRA has revised
the Company’s long term rating from LBBB+ (pronounced L triple B plus) to LA-
(pronounced L A minus) with stable outlook. ICRA has also revised the short
term rating from A2 (pronounced A two) to A2+ (pronounced A two plus).
CONTINGENT LIABILITIES:
|
PARTICULARS |
(RS. IN
MILLIONS) 31.03.2011 |
|
i) Claims against
the Company not acknowledged as debt on account of |
|
|
a) Excise Duty |
132.254 |
|
b) Service Tax |
34.188 |
|
c) Local Area
Development Tax (LADT) |
20.916 |
|
d) Income Tax -
Matters in Appeal |
5.681 |
|
e)
Warranties/Customers |
6.725 |
|
ii) Customer
Bills Discounted |
91.000 |
|
iii) Letter of
Credit opened by banks for purchase of inventory/capital goods |
86.700 |
FIXED ASSETS
· Land
· Building
· Lease Hold Improvements
· Plant and Machinery
· Jigs and Fixture
· Electric Installation
· Furniture and Fixture
· Office Equipments
· Vehicles.
· Computers
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR ENDED 31ST
MARCH 2012
(Rs.
In Millions)
|
Sr. No. |
Particular |
Unaudited |
Unaudited |
|
|
|
Quarter ended 31.03.2012 |
Year
ended 30.06.2011 |
|
1. |
Income from operations |
|
|
|
|
(a) Net sales from operations (net of excise duv) |
3456.368 |
11353.023 |
|
|
(b) Other operating income |
22.286 |
52.279 |
|
|
Total income from operations (net) |
3478.654 |
11405.302 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) Cost of raw material and components consumed |
2475.477 |
8140.791 |
|
|
b) Purchase of Stock –in-Trade |
38.606 |
109.466 |
|
|
c) Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
39.511 |
14.488 |
|
|
d) Employee Cost benefits expenses |
246.248 |
949.046 |
|
|
(e) Depreciation and amortization expense |
94.615 |
333.406 |
|
|
f) Other expenses |
273.427 |
988.048 |
|
|
g) Total
Expenditure (a to f) |
3167.884 |
10535.245 |
|
|
|
|
|
|
3. |
Profit/ (Loss) from operations before other income, finance costs and
exceptional items ( 1-2) |
310.770 |
10545.245 |
|
|
|
|
|
|
4. |
Other Income |
10.085 |
860.057 |
|
|
|
|
|
|
5. |
Profit/ (Loss) from ofinary activitibs before finance costs and
exceptional items ( 3+4) |
320.855 |
39.629 |
|
|
|
|
|
|
6. |
Finance Costs |
97.967 |
336.947 |
|
|
|
|
|
|
7. |
Profit/ (Loss) from ordinary activities after finance costs but before
exceptional items (5-6) |
222.888 |
562.739 |
|
|
|
|
|
|
8. |
Exceptional Items |
- |
- |
|
|
|
|
|
|
9. |
Profit/ (Loss) from ordinary activities before tax ( 7-8 ) |
222.888 |
562.739 |
|
|
|
|
|
|
10. |
Tax Expense |
|
|
|
|
a)
Current Year |
61.400 |
151.500 |
|
|
b)
Earlier year6 excess provision of tax written
back |
- |
- |
|
|
c)
Minimum alternate tax (MAT) ctedit entitlement |
(0.232) |
(0.232) |
|
|
d)
Deferred Tax |
3.448 |
23.108 |
|
|
Total tax
expenses |
64.616 |
174.376 |
|
|
|
|
|
|
11. |
Net profit/ (loss) from ordinary activities after tax ( 9-10 ) |
158.272 |
388.363 |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
- |
- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
158.272 |
388.363 |
|
|
|
|
|
|
14. |
Minority interest |
- |
- |
|
|
|
|
|
|
15. |
Net profit/ (loss) after taxes, minority interest and share of profit/
(loss) os associates (u-14) |
158.272 |
388.363 |
|
|
|
|
|
|
16. |
Paid up equity sham capital ( Face value of Rs 1/- per share) |
198.742 |
198.742 |
|
|
|
|
|
|
17. |
Reserve excluding Revaluation Reserves as per balance sheet of
previous accounting year |
|
|
|
|
|
|
|
|
18. |
Earnings Per Share (EPS) (Face value of Rs 1/- per share) |
|
|
|
|
a) Basic EPS before extraordinary items |
0.80 |
1.95 |
|
|
b) Diluted EPS after extraordinary items |
0.80 |
1.95 |
|
|
|
|
|
|
19. |
Public
Shareholding |
|
|
|
(a) |
-Number of Shares |
94097660 |
94097660 |
|
|
- Percentage of Shareholding |
47.35% |
47.35% |
|
|
|
|
|
|
20. |
Promoters
and Promoter Group Shareholding |
|
|
|
(A) |
Equity
Shares |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
- |
- |
|
|
- Face Value of Rs 1/- per share |
- |
- |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
- |
- |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
- |
- |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
104644172 |
104644172 |
|
|
- Face Value of Rs 1/- per share |
- |
- |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
52.65% |
52.65% |
Notes:
1. The above Audited
Financial Results as reviewed by
the Audit Committee have been taken on record and approved by the Board of
Directors of the Company in their meeting held on 1st May, 2012
2.
The Board of Directors has recommended, subject to
approve1 of shareholders, final dividend of Re 0.65 per equity share of Re. 1 each.
3.
Pursuant to clause 41 of the Listing Agreement, Audit
of the Standalone and Consolidated Audited Financial results for the year ended
31st March 2012 has
been carried out by the Statutory Auditors and the same has been placed before
the Board. However, as the
Company has opted to publish Consolidated Quarterly and financial results for
the first time during the Year, the consolidated results for the quarter ended
31st March 2011 given
for comparative purpose have not been reviewed by the Statutory Auditors.
4.
Consolidated Financial statements has been prepared
in accordance with Accounting Standard-Zl "Consolidated Financial
Statements'
5.
The Subsidiaries which are consolidated in accordance with the
Accounting Standard on Consolidated Financial Statements (AS - 21) are Sona
Stampings Limited, Sona Fuji Kiko Automotive Limited and JTEKT Sona Automotive
India Limited. Financial Results for the quarter and nine months ended 3lst
December, 2011 of all subsidiaries except JTEKT Sona Automotive India Limited were subjected to Limited review by
their Auditors.
6.
At the beginning of the quarter there was no
investor complaints pending, during the current quuter, the Cowany has received
three investor complaints and all the said three complaints have been redressed
and resolved.
7. Segment Reporting:
The Company is primarily engaged in the business of Auto Components for Four
Wheelers, which are governed by the same set of risk and returns and hence there is only one segment. The said
treatment is in accordance with the guiding principle enunciated in the
accounting standard on Segment Reporting (AS - 17).
8.
The company has filed a writ petition with the
Hon'ble High Court of Calcutta fori junction restraining the Govt. of West
Bengal for acting in terms of the Singur Land Rehabilitation and
Development Act, 2011. Which is
being heard by a Divisional Bench along with the appeals of Tata Motors
Limited. And then other vendors. Pending
finalization of
the case, the company has not made any provision for the impairment of value of land.
9.
EPS has been computed in accordance with Accounting
Standard ASZO
10.
During the current year, in line with the
notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs, the Company opted for option
given in the paragraph %A of Accounting Standard-11 "The Effect of Changes
in Foreign Exchange Rates". Accordingly the Company during the quarter has
charged to cost of depreciable fixed assets the exchange on ECB loan against
purchase of fixed assets which was hitherto charged to Statement of Profit and
Loss. Due to this, the foreign exchange losses of Rs.19.274 Millions for the
year has been capitalized as
fixed assets in Standalone Results.
11.
The figures for the quarter ended 31st
March 2012 are balancing figures
between audited figures in respect of full financial year ended 31st
March 2012 and
the published year to date figures upto the third quarter ended 31st December 2011, which have been
regrouped/rearranged wherever necessary, to conform to formats prescribed by
SEBI vide its circular dated 16th April 2012, in line with Revised Schedule VI.
STANDALONE STATEMENT OF ASSETS AND LIABILITIES As on 31.03.2012
|
Sr. |
PARTICULARS |
31.03.2012 |
|
|
|
|
|
A |
EQUITY AND
LIABILITIES |
|
|
|
|
|
|
1 |
Shareholders'
funds |
|
|
|
a)
Share capital |
198.742 |
|
|
b)
Reserves and surplus |
2077.177 |
|
|
Sub total |
2275.919 |
|
|
|
|
|
2 |
Minority
interest |
-- |
|
|
|
|
|
3 |
Non-current Liabilities |
|
|
|
a)
Long-term borrowings |
1800.823 |
|
|
b)
Deferred tax liabilities (Net) |
322.033 |
|
|
c)
Other Long term liabilities |
1.650 |
|
|
d)
Long-term provisions |
36.231 |
|
|
Sub total |
2160.737 |
|
|
|
|
|
4 |
Current Liabilities |
|
|
|
a)
Short-term borrowings |
150.227 |
|
|
b)
Trade payables |
1672.182 |
|
|
c)
Other current liabilities |
703.604 |
|
|
d)
Short-term provisions |
175.517 |
|
|
Sub total |
2701.53 |
|
|
|
|
|
|
Total EQUITY AND
LIABILITIES |
7138.186 |
|
|
|
|
|
B |
ASSETS |
|
|
|
|
|
|
1 |
Non-current
assets |
|
|
|
a) Fixed assets |
|
|
|
i.
Tangible assets |
3522.190 |
|
|
ii.
Intangible assets. |
210.848 |
|
|
iii.
Capital
work-in-progress |
370.377 |
|
|
iv.
Intangible assets under development |
38.358 |
|
|
b) Goodwill on consolidation |
- |
|
|
c) Non-current investments |
678.820 |
|
|
d) Long-term loans and advances |
208.977 |
|
|
e) Other non-current assets |
1.786 |
|
|
Sub total |
5031.356 |
|
|
|
|
|
2 |
Current assets |
|
|
|
a)
Inventories |
387.617 |
|
|
b)
Trade receivables |
1256.494 |
|
|
c)
Cash and bank balances |
12.473 |
|
|
d)
Short-term loans and advances |
233.554 |
|
|
e)
Other current assets |
216.692 |
|
|
Sub total |
2106.830 |
|
|
|
|
|
|
TOTAL ASSETS |
7138.186 |
WEB SITE DETAILS
PROFILE
Subject is engaged in the manufacturing of steering systems for the
passenger car and utility vehicle. The Company’s products include carrier differential
assy, column type electronic power steering assy, intermediate drive shaft
assy, propeller shaft assy, manual steering column assy with upper tilt, rear
axle assy, recirculating ball screw type manual gear assy, tilt and telescopic
column HCV and intermediate shaft assy with rubber isolator car. During the
fiscal year ended March 31, 2010 (fiscal 2010), the Company developed advanced
tilt steering column with low friction sliding shaft for the passenger car from
a global original equipment manufacturer(OEM). For the fiscal year ended 31
March 2010, Subject revenues increased 23% to RS8.6B. Net income totaled
RS169.5M, vs. a loss of RS314.7M. Revenue reflects increased income from
operations and higher other income. Net income also reflects a fall in
administrative, selling and other expense. Subject is engaged in the
manufacturing of steering systems.
The
flagship company of The Sona Group is currently the largest manufacturer of
steering systems for the passenger car and utility vehicle market in India. Its
collaborator and partner, JTEKT Corporation, is the market leader in Japan and
in the recent past announced a merger with Toyota Machine Works. Post this
merger, JTEKT will become the world's largest steering systems manufacturer.
The company also has a technical collaboration with Mando Corporation, Korea.
As
part of Sona Koyo Steering Systems Limited (SKSSL) globalization strategy, the
company has acquired a position in Fuji Autotech France, SAS, the 4th largest
steering system supplier in Europe. Via Fuji Autotech, The Sona Group footprint
extends to Eastern Europe and South America.
Established
in 1985, Sona Koyo Steering Systems Limited. is the group's flagship company,
and the largest manufacturer of steering systems in India, catering to passenger
cars, utility vehicles and light commercial vehicles. Sona Koyo has technical
and financial collaboration with JTEKT Corporation, Japan (formally known as
Koyo Seiko Co. Limited.), the largest producer of passenger vehicles' steering
systems in the world.
Sona
Koyo's customers include major vehicle manufactures in India such as Maruti
Suzuki, Toyota, Hyundai, Tata Motors, Mahindra & Mahindra, General Motors
and Mahindra-Renault. Independently, as well as through its network of overseas
joint-venture partners, it exports high quality precision products to USA,
Europe and Japan.
MANAGEMENT
SURINDER KAPUR -
EXECUTIVE CHAIRMAN OF THE BOARD
Education
PHD Mechanical Engineering, Michigan State
University
MS Mechanical Engineering, Michigan State University
BS Engineering, Michigan State University
SUNJAY J. KAPUR -
EXECUTIVE VICE CHAIRMAN OF THE BOARD, MANAGING DIRECTOR
Mr. Sunjay J. Kapur is the Executive Vice Chairman of the Board,
Managing Director of Sona Koyo Steering Systems Limited. He is a graduate in
Business Administration from Buckingunham University, U.K., with in Business
Strategy and Human Relations. Mr. Sunjay Kapur had worked with TRW, USA, a
world name in Automotive Industry. In TRW, USA he had gained experience by
working on Shop Floor and was exposed to real problems faced by a worker
working on the Shop Floor. Mr. Sunjay Kapur has been associated with the
Company from April 1996 to March, 2004 in the capacity of an employee. The Board
of Directors of the Company appointed Mr. Sunjay Kapur as an Additional
Director of the Company in its meeting held on 12th April, 2004. Mr. Sunjay
Kapur serves on the Board of Sona Okegawa Precision Forgings Limited, Sona
Mobility Services Limited, Sona e-Design and Technologies Limited, Sona
Autocomp Holding Private Limited and SONA BLW Prazisionsschmiede GmbH, Germany.
He is member of Audit Committee and Remuneration Committee of Sona Okegawa
Precision Forgings Limited. He holds the position of Chairman of the Audit
Committee and Remuneration Committee of Sona Mobility Services Limited.
Education
Business Administration, Buckingham University
KAZUHIKO AYABE -
NON-EXECUTIVE DIRECTOR - NOMINATED BY MSIL
Mr. Kazuhiko Ayabe is Non-Executive Director - Nominated by MSIL of Sona
Koyo Steering Systems Limited. He is a Japanese National and is a graduate from
department to Mechanical Engineering, College of Sophia University. He joined
Suzuki Motor Corp in April 1980 and rendered his services at various positions.
Presently he is holding the position of executive officer (supply management)
in Maruti Suzuki India Limited. He is neither a director of any other Indian
Company and is nor a member of any committee thereof.
Education
Sophia University
RAVI BHOOTHALINGAM
- NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Ravi Bhoothalingam is Non-Executive Independent Director of Sona
Koyo Steering Systems Limited. He is Chief Executive of Manas Advisory, a
Consultancy practice focusing on change management, travel and tourism. Until
30th June 2001 he was President of The Oberoi Group of Hotels and in this
capacity responsible for the operations of the Group Worldwide, consisting of
thirty-two hotels, flight catering units and luxury cruise ships in six
countries across Asia. Prior to joining The Oberoi Group, he was Head of
Personnel Worldwide with BAT plc, U.K, Managing Director of VST Industries
Limited and Director ITC Limited. He serves on the Board of Dr. Reddy’s
Laboratories Limited. He is Chairman of Shareholders Grievance Committee and
Investment Committee and Member of Nomination, Governance and Compensation
Committee, Management Committee and Audit Committee of Dr. Reddy’s Laboratories
Limited.
Education
M Experimental Psychology, University of Cambridge
BS Physics, University of Delhi
PREM KUMAR CHADHA
- NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri. Prem Kumar Chadha is Non-Executive Independent Director of Sona
Koyo Steering Systems Limited. He is a Management Consultant with clients in
Indonesia, Thailand, Japan and India. He retired in November, 1998 from
Unilever N.V. Rottesdam, where he was holding the position of Senior Vice
President Manufacturing and Supply Chain. He worked with Unilever Companies for
over 36 years in India, UK, Japan and the Netherlands. He was on the Board of
Hindustan Lever Limited from 1980-1985. He functioned as Technical Director of
Unilever's subsidiary in Japan for 6 years and as Head of Technology worldwide
with Unilever at the Corporate Headquarters. He serves on the Board of Petronet
LNG Limited, Sir Owen Williams Innovestments Limited and Conzerv Systems
Private Limited. He is Member of the 'Audit Committee' of Petronet LNG Limited.
KIRAN
M. DESHMUKH - DEPUTY MANAGING DIRECTOR, EXECUTIVE DIRECTOR
Mr. Kiran M. Deshmukh is Deputy Managing
Director, Executive Director of Sona Koyo Steering Systems Limited. He is a
graduate in Metallurgical Engineering from Indian Institute of Technology
(IIT), Mumbai. He has experience of over three decades in automotive components
manufacturing, Process Control, Design, Quality Assurance, Marketing and
Research and Development. He joined services of the Company in 1986 and has
been spearheading the Company’s implementation of the Toyota Production System,
TQM and TPM. He has led the Company to be the recipient of the Deming Prize in
2003 and the TPM Excellence Award in 2008. Mr. Deshmukh currently serves on the
Visionary Leaders for Manufacturing Program (VLFM) division as a Provost.
IIM(C), IIT(K) and IIT(M) jointly launched the VLFM Program in September 2007
in association with CII. It is supported by the Governments of India and Japan
and aims to create visionary leaders for the Indian manufacturing. In 2006, The
Indian Society of Quality honored Mr. Deshmukh with the Ashoka Award for practice
of quality management. Mr. Deshmukh has presented a number of technical papers
in seminars and conferences in the areas of Toyota Production System, JIT,
Statistical Techniques, TPM and TQM. Mr. K.M. Deshmukh is Director on the
Boards of JTEKT SONA Automotive India Limited (JSAI) and Sona Fuji Kiko
Automotive Limited (SEAL). He is also member of the Audit Committees of JSAI
and SFAL.
Education
Metallurgical Engineering, Indian Institute
of Technology, Mumbai
JUG
MOHAN KAPUR - NON-EXECUTIVE DIRECTOR
Mr. Jug Mohan Kapur is Non-Executive
Director of Sona Koyo Steering Systems Limited, since May, 1994. He has been on
the Board of the Company since May, 1994. He possesses knowledge and experience
in the field of trade and business. He has led the Kapur family business in the
area of jewellery retail, estate development and management since, 1961 and
possesses expertise in these areas. He serves on the Board of Sumish Finance
and Investment Company Private Limited, Maa Estate Private Limited and Jyoti
Arn Associates Private Limited.
SHAMSHER
SINGH MEHTA - NON-EXECUTIVE INDEPENDENT DIRECTOR
Lt. Gen. (Retd.) Shamsher Singh Mehta is
Non-Executive Independent Director of Sona Koyo Steering Systems Limited. He is
the Retired Lt. Gen. from Indian Army. During his 41 years of service he has
held numerous command and staff assignments. Before retiring from the Army in
January 2004 he held the prestigious appointment of General Officer Commanding
in Chief, Western Command. Lt. Gen.(Retd.) Shamsher Singh Mehta also held the
position of Director General of Confederation of Indian Industry from May 2006
to April, 2008. Lt. Gen. (Retd.) Shamsher Singh Mehta also continues to be
involved in a number of diverse fields and is currently active as: Co-Chair of
the U.S-India and UK-India High Technology Cooperation Group, Vice Chairperson
of Sarvodaya International Trust- New Delhi Chapter, Member of the Board of
Trustees on National Foundation for Corporate Governance, and skill development
initiative and The Aspen Indian Institute, Member of the Organizing Committee,
Commonwealth Games 2010, Delhi, Member (ex-officio) of the Council of Indian
Council of World Affairs, Member of Standing Committee on Universities with
Potential for Excellence (UPE) in the area of Industry, constituted by
University Grants Commission, Member of the Editorial Board of the Journal of
Defence Policy Studies. Lt. Gen. (Retd.) Shamsher Singh Mehta is not a Director
of any other Indian Company and is nor a member of any Committee thereof.
RAKESH
MOHAN - NON-EXECUTIVE INDEPENDENT DIRECTOR
Dr. Rakesh Mohan is Non-Executive
Independent Director of Sona Koyo Steering Systems Limited. He is Non Resident
Senior Research Fellow of Stanford Centre for International Development,
Stanford University. He has been Deputy Governor of the Reserve Bank of India
for many years (2005-2009 and 2002-2004) and held senior positions in the
Government of India including Secretary, Department of Economic Affairs
(2004-2005) as well as Chief Economic Advisor to the Government of India
(2001-2002), Director General of National Council for Applied Economic
Research, and Chief Executive of Indian Council for Research and International
Economic Relations. As the Economic Adviser to the Government of India in the
Ministry of Industry (1988-1996) he played a role in the formulation of the new
Industrial, Trade and Foreign Investment Policy.
Education
M, Princeton University
BS Electrical Engineering, Imperial College
of Science and Technology
BA Economics, Yale University
B. L.
PASSI - NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. B. L. Passi is Non-Executive Independent Director of Sona Koyo
Steering Systems Limited. He has over 44 years of experience in the field of
finance, automobile trade, transportation and agriculture. Mr. Passi is one of
the automobile distributors in the country. He had served on the Boards and
sub-committees of nationalized banks like the Bank of India and Central Bank of
India. He was also a member of the Board of Directors of Rajasthan State
Industrial and Mineral Development Corporation Limited and served as a member
of the New Delhi Municipal Committee (NDMC) and Chairman of Projects
Negotiations and Tender Sub Committee of NDMC. He serves on Board of Directors
of companies like Tata Housing and Development Company Limited and Banares
Hotels Limited.
RAMESH SURI -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Ramesh Suri is Non-Executive Independent Director of Sona Koyo
Steering Systems Limited. He has a bachelor’s degree in Science. Mr. Ramesh Sun
possesses experience in automobile suppliers manufacturing industry. He is
Chairman and Managing Director of Subros Limited, India’s first automotive
air-conditioning Company and at present is the automotive air-conditioning
system manufacturer in the country. He is also the recipient of the Certificate
of Special Congressional Recognition for invaluable service to the community by
Member of Congress, USA. He is also the President of Subros Educational
Society. Some of the Companies where Mr. Ramesh Sun serves as a member of the
Board include Bharat Hotels Limited, Deeksha Holding Limited, Rohan Motors
Limited, Apollo Zippers India Limited and Udaipur Hotels Limited. He is a
member of Shareholders Grievance cum Share Transfer Committees of Subros
Limited and Bharat Hotels Limited and also as member of Audit Committee of
Prime Cellular Limited. He holds the position of Chairman of the Audit
Committees of Fibcom India Limited and Global Autotech Limited.
SUNDER GOVINDRAJAN
RAJAN - CHIEF EXECUTIVE OFFICER
Mr. Sunder Govindrajan Rajan is Chief Executive Officer of Sona Koyo
Steering Systems Limited.
NEWS
SONA KOYO TO SUPPLY STEERING FOR OFF-ROAD VEHICLES IN THE US
05
February 2012
Auto component-maker Sona Koyo Steering Systems is diversifying into supply of parts for off-road vehicles and is currently testing its products with a US-based firm with a view to start exports from early next fiscal.
"We are planning to enter the farm equipment and off-road vehicles segment. We have developed the steering technology for off-road vehicles and these are called Electronic Power Assisted Module (EPAM)," Sona Koyo Steering Systems Vice-Chairman and MD Sunjay Kapur told PTI.
The company has already started trial production of the product and shipped it to an off-road vehicle-maker in the US, he added.
"The American firm is currently testing it in their vehicles. Once the
testing is successful, we hope to start exporting for commercial production
from early next financial year," Kapur said.
He, however, declined to share the name of the US-based firm that is currently
testing the product.
He said the EPAM will be produced from Sona Koyo's plant in the national
capital region. Currently, it has three units at Dharuhera and one each at
Gurgaon, Sanand and Chennai.
Talking about the farm equipment sector, Kapur said: "We are looking at
this as a potential segment. Currently, we are talking to almost all domestic
tractor-makers to supply the steering systems."
He also said the company is looking at the heavy commercial vehicle (HCV)
segment. It has been trying to develop the technology for the last few years.
"We are still looking at the HCV segment, but currently we do not have the
technology," he added.
In August, 2010, the NCR-based firm said it was exploring possibilities to
supply its products to HCV-makers.
Asked about revenues, Kapur said the company's performance was impacted during
the third quarter due to labour unrest at its one of the biggest customers,
Maruti Suzuki's Manesar facility.
"... Still, we are expecting a small single-digit growth in this
fiscal," he added.
Last week, Sona Koyo had reported a 32.84% fall in consolidated profit after
tax for the quarter ended December 31 to Rs 137.000 Millions from Rs 204.000
Millions for the corresponding period last financial year.
Its consolidated net sales also dipped by 5.77% to Rs 3152.000 Millions during
the third quarter from Rs 3345.000 Millions in the year-ago period.
The company currently supplies its products to all passenger vehicle-makers in
India, including Maruti Suzuki, General Motors and Tata Motors.
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. 53.33 |
|
|
1 |
Rs. 86.10 |
|
Euro |
1 |
Rs. 69.06 |
INFORMATION DETAILS
|
Report Prepared by
: |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.