MIRA INFORM REPORT

 

 

Report Date :

26.05.2012

 

IDENTIFICATION DETAILS

 

Name :

MOTHERSON SUMI SYSTEMS LIMITED

 

MOTHERSON AUTOMOTIVE TECHNOLOGIES AND ENGINEERING A DIVISION OF MOTHERSON SUMI SYSTEMS LIMITED

 

 

Registered Office :

2nd Floor, F-7, Block B-1, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110 044

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

19.12.1986

 

 

Com. Reg. No.:

55-26431

 

 

Capital Investment / Paid-up Capital :

Rs.387.544 Millions

 

 

CIN No.:

[Company Identification No.]

L34300DL1986PLC026431

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELM11353G / DELM08600E

 

 

PAN No.:

[Permanent Account No.]

AAACM0405A

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers of Auto Ancillaries, Wiring Harnesses, Components and High Tension Cords.

 

 

No. of Employees :

5200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

Maximum Credit Limit :

USD 40000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financials position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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 :

2nd Floor, F-7, Block B-1, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110 044, India

Tel. No.:

91-11-40555940

Fax No.:

91-11-40555940

Email :

corporate@mssl.motherson.com

Website :

http://www.motherson.com

 

 

Corporate Office 1 :

3rd Floor, Bhageria House, 43, Community Centre, New Friends Colony, New Delhi - 110 065, India

Tel. No.:

91-11-26822778 / 26838069 / 26842174

Fax No.:

91-11-26842174

E-Mail :

info@motherson.com

asgil@motherson.com

mate@del3.vsnl.net.in

corporate@mssl.motherson.com  

 

 

Corporate Office 2 :

C-14 A and B, Sector-1, Noida-201 301, Uttar Pradesh, India

Tel. No.:

91-120-6752100

Fax No.:

91-120-2521866 / 2521966

 

 

Units:

·         Plot No. 31B, JIADB Industrial Area, Phase –1, Kumbalgodu, Bangalore, Karnataka, India

 

·         195-196, Sector-4, IMT Manesar, Gurgaon-122050, Haryana, India

 

·         Motherson Automotive Technologies and Engineering

(A division of Motherson Sumi Systems Limited)

No. 9, GST Road, Oorapakum Kanchipuram, District Chennai,

Tamilnadu

 

·         B-22, SIDCO Industrial Estate, Hosur, Tamilnadu, India

 

·         C-6 and 7, 1st and 2nd Floor, Sector – 1, Noida, Uttar Pradesh, India

 

·         C-14, A and B, Sector -1, Noida – 201 301, Uttar Pradesh, India

Tel No.: 91-120-2476100 / 2551851

Fax No.: 91-120-2521966 / 2521866

 

·         A-15, Sector 6, Noida, Uttar Pradesh, India

 

·         Mohan Co-operative, Delhi, India

 

·         A-60-61, Sector 6, Noida, Uttar Pradesh, India

 

·         129/2, Sanghvi Compound, Chinchwad, Pune, Maharashtra, India

 

·         Plot No. 21, Industrial Estate, Gurgaon, Haryana, India

 

·         C-6 and 7, Ground Floor, Sector 1, Noida, Uttar Pradesh, India

 

·         D-3, Sector 11, Noida, Uttar Pradesh, India

 

·         8, Ayyenchery, Village Oorapakkam Panchyet, Kancheepuram 603 202, Tamilnadu, India

 

·         Survey No. 241-1/2, Hinjewadi, Tal Mulshi, District Pune–411027, Maharashtra, India

 

·         96/3-P, 96/4, 96/7-P, A Block Indraprastha Industrial Park, Kumbalgodu Industrial Area, 2nd Phase, Kumbalgodu, Bangalore, Karnataka, India

 

·         9, GST Road, Oorapakkam, Kancheepuram District, Tamilnadu – 603202, India

Tel No.: 91-44-27467955 / 27467956

Fax No.: 91-44-27465337

 

·         B – 135 and 206, Phase – II, Noida – 201301, Uttar Pradesh, India

Tel No.: 91-120-2568790 / 2562728

Fax No.: 91-120-2562726

 

 

Overseas Offices:

Located at :

 

·         Austria

·         Hungary

·         Sharjah

·         Singapore

·         U.K.

 

 

DIRECTORS

 

AS ON : 31.03.2011

 

Name :

Mr. Vivek Chaand Sehgal

Designation :

Vice Chairman

 

 

Name :

Mr. Toshimi Shirakawa

Designation :

Director

 

 

Name :

Mr. Mohinder Singh Gujral

Designation :

Chairman

 

 

Name :

Mr. Hiroto Murai

Designation :

Director

 

 

Name :

Mr. Bimal Dhar

Designation :

Director

 

 

Name :

Mr. Pankaj K Mital

Designation :

Alternate Director

 

 

Name :

Mr. Arjun Puri

Designation :

Director

 

 

Name :

Mr. Pankaj K. Mital

Designation :

Alternate Director

 

 

Name :

Mr. Laksh Vaaman Sehgal

Designation :

Director

 

 

Name :

Mr. Futoshi Urai

Designation :

Alternate Director

 

 

Name :

Mr. Hideaki Ueshima

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. G. N. Gauba

Designation :

Vice President (Finance) and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2012

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

14966007

3.86

Bodies Corporate

1140858015

36.35

 

 

 

(2) Foreign

 

 

Bodies Corporate

96891795

25.00

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

39347182

10.15

Financial Institutions / Banks

45377

0.01

Foreign Institutional Investors

46549513

12.01

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

22931826

5.92

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

13404358

3.46

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

12152103

3.14

 

 

 

Any Others (Specify)

 

 

Non Resident Indians

370589

0.10

Clearing Members

26340

0.01

Trusts

695

--

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

--

--

 

 

 

Total

387543800

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Auto Ancillaries, Wiring Harnesses, Components and High Tension Cords.

 

 

Products :

Item Code No. (ITC Code)

8544.90

Product Description

Integrated wiring harness

Item Code No. (ITC Code)

40160000

Product Description

Rubber Components

Item Code No. (ITC Code)

8544.90PVC

Product Description

Insulated Wire

 

Blow Molded Components

·         Heating, Ventilation and Air Conditioning Ducts

·         Engine and Air Intake Ducts

·         Wind Shield Washer Bottles

·         Radiator Reservoir Tanks

·         Plastic Fuel Tanks (2-Wheelers)

·         Resonator/Pipe Air Intake

·         Arm Rests

·         Bellows

·         Body styling Kit- Spoilers

 

Injection Molded Components

·         Interior/Exterior Trims and parts

·         Scuff Plates

·         Auto A.C. Components

·         Mirror housings

·         Under bonnet parts

·         Structured Plastic components

·         Inside handles

·         Body colored painted parts

           

Modules

·         IP Module

·         Door Trims

·         Floor console Module

·         Bumper Modules

           

Components for White Goods Industry

·         Washing machine components

·         A.C. Components

·         Refrigerator components

             

Electronics Industry

·         T.V. Cabinets and Back Cover

·         Monitor Cabinets and Back Covers

 

 

GENERAL INFORMATION

 

Suppliers :

·         AGN Electro Coats

·         Auto test Mechanisms Private Limited

·         Chamundi Die Cast Private Limited

·         Aglow Engineers Private Limited

·         B.R. Auto Connectors and Spares Private Limited

·         Brass Copper and Alloy (India) Limited

·         India Wire

·         Shree Shiva Engineering Works

·         Hari Har Engineering Works

·         M.D. Plastics

·         Om Tulsi Electrical]

·         D.M. Enterprises

·         Fire Safety Equipments Private Limited

·         Kings Pack System

·         Senna Polymers

 

 

No. of Employees :

5200 (Approximately)

 

 

Bankers :

·         State Bank of India

·         ICICI Bank Limited

·         Axis Bank Limited

·         Bank of Tokyo Mitsubishi Limited

·         HDFC Bank Limited

·         Citibank N. A.

·         The Hong Kong and Shanghai Banking Corporation Limited

·         DBS Bank Limited

·         Japan Bank for International Corporation

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Working Capital Facilities From Bank

 

 

Rupee Loan

21717.909

957.869

Foreign Currency Loan

715.634

279.480

Long Term Loan 

 

 

From Banks

 

 

Foreign Currency Loan

2966.949

1416.157

From Others

 

 

Rupee Loan

56.652

64.776

Vehicle Loan

0.635

9.488

 

 

 

Total

6457.779

2727.770

Secured Loans referred above are:

 

Secured by first charge by way of hypothecation of all present and future stocks, book debts and other specified movable assets of the Company and second charge by way of hypothecation of all present and future immovable property.

 

Long term loans due within a year Rs. 459.430 millions (Previous Year Rs. 276.217 millions).

 

Secured by first pari-passu charge on entire fixed assets both movable and immovable of the Company present and future and second paripassu charge on the entire current assets of the Company. These are also secured by way of deposit of title deeds of specified properties.

 

 i) Secured against land acquired from Noida Authority under the installment plan.

 

ii) Long term loans due within a year Rs. 9.042 millions (Previous Year Rs. 8.124 millions).

 

 i) Due within a year Rs. 0.635 millions (Previous Year Rs. 8.548 millions).

 

ii) Secured by hypothecation of specific vehicles purchased against such loans.

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Short Term Loan

 

 

Privately Placed debentures

0.000

150.000

From Bank

350.000

0.000

Other Than Banks

185.000

32.400

Long Term Loans

 

 

Zero Coupon Foreign Currency convertible Bonds

0.000

1121.958

Other than Banks

31.365

97.512

From Banks – Foreign Currency

902.800

--

Total

1469.165

1401.870

 

Note :

 

1)       Repayable on demand.

 

2)       Includes due to an associate company Rs. 35.000 millions.

 

3)       Long term loans due within a Year Rs. NIL (Previous Year Rs. 1121.958 millions).

 

4)       Company has given a negative lien on the assets purchased out of the said facility.

 

5)       Tooling advances received from customers are repayable by way of amortization on supply of components and hence cannot be distinguished between short term and long term.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

Building 8 , 7th and 8th Floor, DLF Cyber City, Gurgaon – 122002, Haryana, India

 

 

Subsidiaries :

·         MSSL Mauritius Holdings Limited

·         MSSL Mideast (FZE)

·         MSSL Ireland Private Limited

·         MSSL Handels GmbH

·         Motherson Electrical Wires Lanka Private Limited

·         MSSL Tooling (FZE)

·         MSSL (S) Pte Limited

·         MSSL GmbH

·         MSSL Polymers GmbH

·         Samvardhana Motherson Invest Deutschland GmbH (formerly Mothersonsumi Reiner GmbH)

·         MSSL Advanced Polymers s.r.o.

·         MSSL (GB) Limited

·         Global Environment Management (FZC)

·         Global Environment Management Australia Pty Limited

·         Motherson Sumi Wiring System Limited (FZE)

·         MSSL Australia Pty Limited

·         Motherson Elastomers Pty Limited

·         Motherson Investments Pty Limited

·         Motherson Orca Precision Technology GmbH

·         MSSL Global Wiring Limited

·         MSSL s.r.l Unipersonale

·         MSSL Global RSA Module Engineering Limited

·         MSSL Japan Limited

·         Samvardhana Motherson Global Holdings Limited

·         Samvardhana Motherson Reflectec Group Holdings Limited

·         SMR Automotive Holding Hong Kong Limited

·         SMR Automotive Technology Holding Cyprus Limited

·         SMR Automotive Mirror Systems Holding Deutschland GmbH

·         SMR Automotive Parts GmbH

·         SMR Poong Jeong Automotive Mirrors Korea Limited

·         SMR Hyosang Automotive Limited

·         SMR Holding Australia Pty Limited

·         SMR Automotive Australia Pty Limited

·         SMR Automotive Taree Pty Limited

·         SMR Automotive Mirror Technology Hungary Bt

·         SMR Grundbesitz GmbH and Company KG

·         SMR Automotive Services GmbH

·         SMR Automotive Mirror Parts and Holdings UK Limited

·         Portchester Limited

·         SMR Automotive Mirrors UK Limited

·         SMR Automotive Technology Valencia S.A.U. (formerly Visiocorp Automotive Valencia S.A.U.)

·         SMR Automotive Services UK Limited

·         SMR Automotive Technology Holdings USA Partners

·         SMR Automotive Mirror International USA Inc.

·         SMR Automotive Systems USA Inc.

·         SMR Automotive Systems France S. A.

·         SMR Automotive Systems India Limited

·         SMR Automotive Yancheng Company Limited

·         SMR Automotive Beijing Company Limited

·         SMR Automotive Mirror Technology Holding Hungary Kft

·         SMR Automotive Systems Spain S.A.U.

·         SMR Automotive Vision Systems Mexico S.A. de C.V.

·         SMR Automotive Servicios Mexico S.A. de C.V.

·         SMR Automotive Mirrors Stuttgart GmbH

·         SMR Automotive Patents S.aR.L.

·         SMR Automotive Beteiligungen Deutschland GmbH

·         SMR Automotive Brasil Limited

·         SMR Automotive System (Thailand) Limited

·         India Nails Manufacturing Limited (Formerly India Nails Manufacturing Private Limited)

 

 

 Joint Ventures :

·         Kyungshin Industrial Motherson Limited

·         Woco Motherson Elastomer Limited

·         Woco Motherson Advanced Rubber and Technologies Limited

·         Woco Motherson Limited (FZC)

·         Calsonic Kansei Motherson Auto Products Limited

·         Ningbo SMR Huaxiang Automotive Mirrors Company Limited

 

 

Associates :

·         Saks Ancillaries Limited

 

 

CAPITAL STRUCTURE

 

 

As on 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1,923,000,000

Equity Shares

Rs.1/- each

Rs. 1923.000 Millions

 

 

 

 

 

Issued:

 

No. of Shares

Type

Value

Amount

 

 

 

 

387,547,000

Equity shares

Rs.1/- each

Rs.387.547 Millions

 

 

 

 

 

 

Subscribed & Paid-up Capital

 

No. of Shares

Type

Value

Amount

 

 

 

 

387,543,800

Equity shares

Rs.1/- each

Rs.387.544 Millions

 

 

 

 

 

Note :

 

·         Of the above shares, 6,090,000 (Previous Year 6,090,000) shares are allotted as fully paid up pursuant to a contract for consideration other than cash

 

·         Of the above shares, 282,737,000 (Previous Year 282,737,000) shares are allotted as fully paid bonus shares by way of capitalization of share premium and general reserve

 

·         Of the above shares, 35,210,000 (Previous Year 22,260,000) shares are allotted by way of conversion of Zero Coupon Foreign Currency Convertible Bonds

 

·         During the year the Company has alloted of 12,950,000 equity shares of Re. 1/- each pursuant to conversion of Zero Coupon Foreign Currency Convertible Bonds.

 

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

387.544

374.594

355.554

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

9713.966

6790.898

3802.798

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

10101.510

7165.492

4158.352

LOAN FUNDS

 

 

 

1] Secured Loans

6457.779

2727.770

2233.959

2] Unsecured Loans

1469.165

1401.870

3147.585

TOTAL BORROWING

7926.944

4129.640

5381.544

DEFERRED TAX LIABILITIES

225.124

135.468

0.000

 

 

 

 

TOTAL

18253.578

11430.600

9539.896

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8986.368

6691.146

4668.745

Capital work-in-progress

1597.443

837.265

1476.994

 

 

 

 

INVESTMENT

3427.304

2354.739

2763.601

DEFERREX TAX ASSETS

0.000

0.000

15.299

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4276.697

2352.981

1602.671

 

Sundry Debtors
3506.247

2309.542

1733.476

 

Cash & Bank Balances
380.996

365.324

179.322

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
2762.252

1775.829

1165.229

Total Current Assets
10926.192

6803.676

4680.698

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

4335.831

3252.670

2314.409

 

Other Current Liabilities
829.829

795.282

431.390

 

Provisions
1518.069

1226.126

1584.904

Total Current Liabilities
6683.729

5274.078

4330.703

Net Current Assets
4242.463

1529.598

349.995

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

17.852

265.262

 

 

 

 

TOTAL

18253.578

11430.600

9539.896

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Sales of finished Goods

27778.821

17048.739

12949.429

 

 

Other Income

1212.635

1234.556

372.440

 

 

TOTAL                                     (A)

28991.456

18283.295

13321.869

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing & Other Expanses

23932.254

14714.681

11633.285

 

 

TOTAL                                     (B)

23932.254

14714.681

11633.285

 

 

 

 

 

Less

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

5059.202

3568.614

1688.584

 

 

 

 

 

Less

INTEREST                                                         (D)

284.374

252.400

290.984

 

 

 

 

 

 

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

4774.828

3316.214

1397.600

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

829.570

645.747

545.144

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3945.258

2670.467

852.456

 

 

 

 

 

Less

TAX                                                                  (H)

1070.394

885.809

157.047

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2874.864

1784.658

695.409

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1765.804

1630.915

1597.081

 

(Net of Rs. 663.918 Millions deduction consequent to amalgamation)

 

 

 

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

1070.033

673.914

479.999

 

 

Tax on Dividend

173.595

111.937

81.576

 

 

Transfer to General Reserve

300.000

200.000

100.000

 

BALANCE CARRIED TO THE B/S

3097.040

2429.722

1630.915

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

3064.984

2147.760

2346.551

 

TOTAL EARNINGS

3064.984

2147.760

2346.551

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

10469.944

6253.575

3486.570

 

 

Stores & Spares

113.631

48.201

55.156

 

 

Capital Goods

1009.225

363.779

387.864

 

TOTAL IMPORTS

11592.800

6665.555

3929.590

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.45

4.47

1.73

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2011

30.09.2011

31.12.2011

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

7515.200

7849.300

8372.500

Total Expenditure

6558.800

7112.500

7475.500

PBIDT (Excl OI)

956.400

736.800

897.000

Other Income

291.000

101.800

262.000

Operating Profit

1247.400

838.600

1159.000

Interest

121.800

150.800

162.400

Exceptional Items

0.000

0.000

0.000

PBDT

1125.600

687.800

996.600

Depreciation

228.300

239.800

262.700

Profit Before Tax

897.300

448.000

733.900

Tax

242.300

132.200

185.300

Provisions and Contingencies

0.000

0.000

0.000

Profit After Tax

655.000

315.800

548.600

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustment

0.000

0.000

0.000

Net Profit

655.000

315.800

548.600

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
9.91
9.75
5.21

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
14.20
15.66
6.57

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
19.81
19.77
9.10

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.39
0.37
0.20

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.44
1.31
2.34

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
1.63
1.29
1.08

 

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

No

5) Type of Business

 Yes

6) Line of Business

Yes

7) Promoter's background

--

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

Yes

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

 --

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

Yes

30) Major Shareholders, if available

 --

 

 

 

HISTORY:

 

Subject is a world-class supplier of high performance components, modules and systems. The company is the largest supplier of EDS to the Indian automotive industry. They offer a range of products in the fields of electrical distribution systems, plastic molding, elastomers processing, tooling, metal machining, automotive rear view mirrors and integrated modules. They also provide a range of services from design to manufacturing, supplies to logistics to its customers in India and abroad. The company as a supply partner provides complete solutions to their customers right from product design to mass supplies. They have developed a network of manufacturing bases, design centres, logistics centres, marketing support and sourcing hubs across a diversified geographical base. The company has their presence in 20 countries which include India (Noida, Gurgaon, Faridabad, Manesar, Pune, Lucknow, Bangalore, Chennai, Kandla, and Pondicherry), UAE, Sri Lanka, Singapore, China, Korea, Japan, Germany, UK, Czech Republic, Austria, Hungary, Italy, Spain, France, Ireland, USA, Mexico, Australia and Mauritius to provide timely and quality delivery to the customers worldwide. Subject was incorporated in the year 1986 as a joint venture between Samvardhana Motherson Finance Limited (SMFL, Sumitomo Wiring Systems (SWS), Japan and Sojitz Corporation, Japan (formerly Nissho Iwai Corporation). The company was incorporated with the objective of manufacturing integrated wiring harnesses wires high tension cords and components for integrated wiring harnesses including plastic and metal parts. In the year 1989, the company commenced manufacturing wiring harness components and plastic parts as a backward integration. In the year 1991, the company through their joint venture, Motherson Pudenz Wickmann Limited commenced manufacturing fuses as a backward integration. In the year 1993, the company launched wire division, namely Motherson Sumi Electric Wires. In October 1995, the company in collaboration with Kromberg and Schubert AG Germany and formed Kromberg Schubert Motherson Sumi Systems Private Limited for the manufacture of integrated wiring harnesses, which is supplied to Mercedes Berz-Telco joint venture and BMW-Hero Motors joint venture for 650 cc motor cycles. In December 2005, they incorporated Britax Motherson Private Limited in technical and financial collaboration with Britax International UK for manufacture of Auto Mirrors. In the year 1997, the company formed a joint venture namely Kyungshin Industrial Motherson Limited for manufacturing wiring harness for Hyundai. The company's joint venture, BR Motherson Automotive Private Limited set up a plant for manufacturing Blow Moulded Auto Components and Door Panels. Also, Motherson Auto Components Engineering Limited, Motherson Pudenz Fuses Limited and Motherson Global Pte Limited Singapore became the subsidiaries of the company during the year. In the year 1998, the company made a technical agreement with WOCO and commissioned manufacturing of rubber component. In the year 1999, the company established a representative office in Austria and in the next year, they established another representative office in Singapore. In the year 2001, the company commissioned the silicon rubber moulding facility in their first overseas manufacturing base in Sharjah. Motherson Automotive Technologies and Engineering and Motherson Sumi Electric Wires were amalgamated with the company during the year. In the year 2002, the company set up MSSL Ireland Private Limited in Ireland. Also, they established MSSL Mideast (FZE) in Sharjah (UAE). In the year 2003, they established a representative office in UK. During the year 2003-04, the company set up 100% subsidiaries, namely Motherson Electrical Wires Lanka Private Limited in Sri Lanka for manufacturing of wires and MSSL Handels GmbH in Austria. Also, the company in association with Hag Kunststofftechnik GmbH set up a subsidiary, namely MSSL Hag Toolings Limited in SAIF Zone, Sharjah. In March 2004, the company set up 100% subsidiary, namely MSSL (S) Pte Limited in Singapore. The activities relating to the representative office of Singapore are being transferred to this subsidiary. In March 2004, the company entered into a joint venture agreement with WOCO Franz Josef Wolf Holding GmbH and WOCO Industrieteknik GmbH and established a company namely WOCO Motherson Elastomer Limited. The Company transferred their Elastomer business to the joint venture company as a going concern with effect from June 1, 2004. During the year 2004-05, the company expanded their Noida facilities with a new dedicated unit for exports. They started a new unit at Chennai to cater to the requirements of Hyundai Motors and for exports to GM Holden, Australia. Also, the company established a representative office in Germany. During the year 2005-06, Motherson Advance Polymers Limited and Balda Motherson Info Devices Limited became 100% subsidiaries of the company. In August 2005, the company acquired G and S Kunststofftechnik GmbH, Germany to consolidate their polymer business. In January 2006, the company's joint venture subsidiary Global Environment Management (FZC) set up a 100% subsidiary, Global Environment Management Australia Pty Limited, Australia. During the year, Draexlmaier and Motherson Electrical Systems (I) Limited, a 100% subsidiary of the company was amalgamated with the company with effect from April 1, 2005. Also, WOCO Motherson Elastomer Limited and WOCO Motherson Advanced Rubber Technologies Limited ceased to be subsidiaries of the company. During the year 2006-07, Motherson Advance Polymers Limited, a 100% subsidiary of the company merged with the company with effect from February 1, 2006. In August 2006, the company purchased the business and assets of ASL Systems Limited through their 100% subsidiary, MSSL GB Limited In October 2006, they incorporated MSSL Australia Pty Limited In November 2006, the company acquired a plastic injection molding company FP Formagrau s.r.o., in Czech Republic. In February 2007, they incorporated two subsidiaries namely Motherson Elastomers Pty Limited and Motherson Investments Pty Limited through MSSL Australia Pty Limited These two subsidiaries acquired the business and assets of Empire Rubber in Australia from Huon Corporation Pty Limited, which was engaged in rubber mixing and manufacture of rubber extruded components. During the year 2007-08, MSSL GmbH, the company's wholly owned subsidiary through MSSL Mideast (FZE) entered into an agreement with Dremotec GmbH and Company KG and Sirius Invest AG and incorporated another subsidiary Motherson Orca Precision Technology GmbH. Subsequently, the business of Mothersonsumi Reiner GmbH (100% subsidiary of MSSL GmbH) was transferred to the newly incorporated entity with effect from January 01, 2008. Also, they established a representative office in Italy during the year. During the year 2007-08, the company set up two new plants in Noida and Pune to meet the requirements of domestic and export market. They increased the extraction capacity of Motherson Sumi Electrical Wires, Bangalore from 18,000 km to 26,000 km per month. In March 6, 2009, the company's subsidiary Samvardhana Motherson Visiocorp Solution Limited acquired the Rear View Mirror business of Visiocorp Plc. Samvardhana Motherson Global Holdings Limited, a joint venture between the company and Samvardhana Motherson Finance Limited holds 95% equity in Samvardhana Motherson Visiocorp Solution Limited With this acquisition, Samvardhana Motherson Group became one of the largest manufactures of automotive mirrors in the world. The company is in the process of setting up a new plant for export of wiring harness at Kandla. Also, the company will be setting up a unit at Chennai for the future upcoming project of Nissan during the year 2009-10.

 

Operations and Performance

 

Financial Year 2010-11 registered a strong broad based sequential growth across all key sectors and resulted in a record performance during the year. The Company has scaled new heights and set new benchmarks in terms of sales and profit.

 

On consolidated basis for the year 2010-11, the company achieved a turnover of Rs. 81,756 million resulting in a growth of about 22% over its turnover of Rs. 67,022 million of the previous financial year ended March, 2010. Net profit for the year at Rs. 3,908 million was higher by 61% over the previous year’s net profit of Rs. 2427 million.

 

On standalone basis, the company achieved a turnover of Rs. 27,779 million resulting in a growth of about 63% over its turnover of Rs. 17,049 million of the previous financial year ended March, 2010.The profit after tax for the year ended March, 2011 at Rs. 2875 million was higher than 61% from the previous financial year ended March, 2010 at Rs. 1785 million.

 

Management Discussions and Analysis

 

Overview

 

MSSL has continued to deliver strong results and out-performed the Industry with record revenues and profitability.

 

The financial performance reflects the results of the strategic transformation of the SMR business and the strength of the Company’s global model.

 

The Company has manufacturing presence in over 23 countries. Its balanced sales distribution and diversified global customer base provides an opportunity to leverage skills and experience across markets, reduces dependence on any particular geography and improves financial profile, thereby reducing the risk of variability of financial performance.

 

The Company has delivered another sterling performance this year and is moving in the right direction towards achieving its vision of 2015.

 

Highlights

 

Some of the main highlights and key strategic accomplishments during 2010-11 are as follows:

1. The Company recorded consolidated sales of US$ 1.8 billion.

2. Growth in sales of 22% on consolidated basis and 63% on standalone basis.

3. Consolidated EPS of Rs.10.01 as compared to Rs.6.07 in the previous year.

4. Profit before tax (PBT) rose significantly by 84% on consolidated basis and 48% on standalone basis.

5. Post-tax profits (PAT) registered consistent growth of 61% on both consolidated and standalone basis.

6. SMR has shown strong and consistent performance in the second year of its operations, registering growth in revenues by 22%, increase in PBT by 1602% and PAT by 1142% in euro terms.

7. MSSL continues to deliver consistent and progressive returns to the shareholders, dividend recommended per share increased from Rs.1.75/- share to Rs. 2.75/-share.

8. Capital expenditure incurred (on consolidated basis) of Rs.7860 millions mainly for expansion of capacities.

9. MSSL is setting up a new plant in South Africa for Injection molding of Bumpers, Interior trims and painting of parts for supplies to major OEMs.

10. During the year, the Company has also added new facilities in Chennai, Bengaluru and Haldwani.

11. SMR is setting up its second plant in Hungary and is also setting up new plants in Brazil and Thailand, where production will commence in the coming year.

 

SUPPORT SUBSIDIARIES

 

MSSL GMBH, GERMANY

 

The Company is a 100% subsidiary of MSSL through MSSL Mideast. MSSL GmbH is located in Gelnhausen near Frankfurt and acts as the holding company and corporate office providing support to the European entities.

 

MSSL MAURITIUS HOLDING LIMITED., MAURITIUS

 

The company is a 100% subsidiary of Motherson Sumi Systems Limited and is located in Mauritius. The Company is holding investments in Woco Motherson Limited (FZC), MSSL Ireland Private Limited, Global Environment Management (FZC), Samvardhana Motherson Global Holdings Limited and MSSL Global RSA Module Engineering Limited.

 

 

MSSL IRELAND PRIVATE LIMITED, IRELAND

 

The company is a 100% subsidiary of MSSL Mauritius. The company is located in Ireland and provides design services, mainly to wiring harnesses customers. It also provides logistics support services to MSSL and MSSL Mideast, enabling them to supply online to customers in Europe.

 

 

MSSL (S) PTE LIMITED, SINGAPORE

 

The company is a 100% subsidiary of Motherson Sumi Systems Limited and is located in Singapore. It provides support to MSSL and its group companies mainly for international purchasing. The company is also a holding company for the group investments in Australia and Japan.

 

MSSL HANDELS GMBH, AUSTRIA

 

The company is a 100% subsidiary of Motherson Sumi Systems Limited. and is located in Austria. It provides support to MSSL by coordinating with the customers. The Company is looking at various options to restructure the operations of MSSL Handels GmbH with other companies within the group.

 

 

MSSL AUSTRALIA PTY. LIMITED., AUSTRALIA

 

MSSL Australia is an 80% subsidiary of Motherson Sumi Systems Limited. The Company is functioning as the corporate office and holding company for the group investments in Australia.

 

 

MSSL INVESTMENT PTY. LIMITED, AUSTRALIA

 

The company is an 80% subsidiary of Motherson Sumi Systems Limited. through MSSL Australia Pty. Limited. The Company’s principal activities consist of providing land and building on lease at Bendigo to its fellow subsidiary Motherson Elastomers Pty Limited.

 

 

Merger / Amalgamations

 

During the year, Motherson Tradings Limited and Balda Motherson Solution India Limited, wholly owned subsidiaries have been merged with the Company pursuant to the Order of the Hon’ble High Court of Delhi dated 21st March, 2011.

 

Further, the Board of Directors of the Company at their meeting held on 28th April, 2011 has approved the merger of its wholly owned subsidiaries namely MSSL Global Wiring Limited and India Nails Manufacturing Limited and Board of Directors of the Company at their meeting held on 25th May, 2011 has approved the merger of Sumi Motherson Innovative Engineering Limited with the Company subject to the necessary approval including the approval of Hon’ble High Court of Delhi.

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2011

 

(Rs. In millions)

Particulars

 

Three Months ended 31.12.2011

Unaudited

Nine Months ended 31.12.2011

Unaudited

 

 

 

1. a) Net Sales/Income from Operations

 

 

- Within India

7039.500

20333.900

- Outside India

1162.900

3026.000

 

 

 

b) Other Operative Income

170.100

404.400

Total

8372.500

23764.300

 

 

 

2. Expenditure

 

 

a) (Increase)/decrease in stock in trade and work in progress

31.600

(72.900)

b) Consumption of Raw Materials

4976.100

14607.200

c) Employees Cost

787.600

2324.500

d) Depreciation

262.700

730.800

e) Exchange Differences (Gain) I Loss on:

 

 

- Long Term Loans

373.500

805.100

- Others (net)

74.600

59.300

f) Other Expenditure

1232.100

3395.800

Total

7738.200

21849.800

 

 

 

3. Profit from Operations before Other Income, Interest & Exceptional Items (1-2)

634.300

1914.500

 

 

 

4. Other Income

262.000

599.700

 

 

 

5. Profit before Interest & Exceptional Items (3+4)

896.300

2514.200

 

 

 

6. Interest

 

 

- Amortisation of Premium on redemption of FCCBs

0.000

0.000

- Others

162.400

435.000

 

 

 

7. Profit after Interest but before Exceptional Items (5-6)

733.900

2079.200

 

 

 

8. Exceptional Income / (Expenses) (Net)

0.000

0.000

 

 

 

9. Profit (+)/ Loss (-)from Ordinary Activities before tax (7+8)

733.900

2079.200

 

 

 

10. Tax expense

 

 

- Current

297.000

761.000

- Deferred

(111.700)

(201.200)

 

 

 

11. Net Profit (+)/Loss(-) from Ordinary Activities after tax (9-10)

548.600

1519.400

 

 

 

12. Extraordinary Item (net of tax)

0.000

0.000

 

 

 

13. Net Profit (+)/Loss(-) for the period before share of profit/(loss) of associates and minority interests (11-12)

548.600

1519.400

 

 

 

14. Share of profit/(loss) of Associates

0.000

0.000

 

 

 

15. Minority Interests

0.000

0.000

 

 

 

16. Net Profit (+)/Loss(-) for the period (13+14-15)

548.600

1519.400

 

 

 

17. Paid-up equity share capital

387.500

387.500

 

 

 

18. Reserve excluding Revaluation Reserves

0.000

0.000

 

 

 

19. Earnings Per Share (EPS) (in Rs.)

 

 

a) Basic and diluted EPS before Extraordinary items

 

 

- Basic

1.42

3.92

- Diluted

1.42

3.92

 

 

 

b) Basic and diluted EPS after Extraordinary items

 

 

- Basic

1.42

3.92

- Diluted

1.42

3.92

 

 

 

20. Aggregate of Public Shareholding

 

 

- Number of Shares

134860081

134860081

- Percentage of Shareholding

34.80%

34.80%

 

 

 

21. Promoters and promoter group shareholding

 

 

a) Pledged I Encumbered

 

 

- Number of shares2

66600000

66600000

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

26.36%

26.36%

- Percentage of shares (as a % of the total share capital of the company)

17.19%

17.19%

 

 

 

b) Non-encumbered

 

 

- Number of shares

186083719

186083719

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

73.64%

73.64%

- Percentage of shares ( as a % of the total share capital of the company)

48.01%

48.01%

 

1.       Diluted EPS has been computed at fully diluted paid up capital of Rs. 387.500 millions on conversion of Zero Coupon Foreign Currency Convertible bonds, which is dilutive during the previous half year ended September 30, and year ended March 31.

 

2.       Includes 39,600,000 shares for which, as per information submitted by Samvardhana Motherson Finance Limited (SMFL), SMFL has executed Non-disposal Undertakings (NDU).

 

SEGMENT REPORTING

 (Rs. In millions)

Particulars

 

Three Months ended 31.12.2011

Unaudited

Nine Months ended 31.12.2011

Unaudited

1. Segment Revenue

 

 

(a) Automotive

7757.500

21826.800

(b) Non Automotive

697.100

2162.700

(c) Unallocated

267.500

616.100

Total

8722.100

24605.600

 

 

 

Less: Inter Segment Revenue

91.400

272.000

Net Sales/ Income from Operations

8630.700

24333.600

 

 

 

2. Segment Results

 

 

(a) Automotive

934.400

2465.800

(b) Non Automotive

64.100

206.900

Total

998.500

2672.700

 

 

 

Less

i) Interest (Net)

 

158.600


404.500

ii) Other unallocable expenditure (Net of unallocable Income)

106.000

189.000

 

 

 

Total Profit Before Tax

733.900

2079.200

 

 

 

3. Capital Employed

 

 

(a) Automotive

16559.600

16559.600

(b) Non Automotive

1167.800

1167.800

(c) Others (Including Investments)

4187.100

4187.100

 

 

 

Total Segment Capital Employed

21914.500

21914.500

 

Notes:

 

1.       The above financial results were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on February 13, 2012.

2.       The Hon'ble High Court of Delhi at the hearing held on January 30, 2012 has approved the merger of Sumi Motherson Innovative Engineering Limited (SMIEL) and wholly owned subsidiaries namely, India Nails Manufacturing Limited and MSSL Global Wiring Limited (MGWL) with the Company with effect from April 1, 2011. However, no effect for the same has been given in the results, pending receipt of the final order and necessary compliance thereafter in this regard. The Company will issue 4,420,360 new shares to the shareholders of SMIEL, thereby increasing its equity capital to Rs. 3,919.64 Lakhs.

3.       The Company, through its subsidiary, Samvardhana Motherson Polymers Limited (SMPL) and Samvardhana Motherson Global Holdings Limited (SMGHL), completed the acquisition of 80% stake in Peguform GmbH and Peguform Iberica, SL including subsidiaries and joint ventures together with 50% stake in Wethje Entwicklungs, GmbH and Wethje Carbon Composite,GmbH (together referred to as SMP Group) on November 23, 2011 (the completion date).

4.       The Company has, through its subsidiary, acquired a 51% stake in Vacuform 2000 (Pty) Limited, a company registered in the Republic of South Africa.

5.       Investors Complaints received and disposed off during the quarter ended December 31, 2011:

                                                                                                                                                    No’s.

            Complaints pending at the beginning of the quarter                                                                       0

Complaints received during the quarter                                                                                        11

Disposal of complaints                                                                                                                  11

Complaints lying unresolved at the end of the quarter                                                                   0    

6.       The figures of previous periods have been re-grouped, wherever necessary, to conform to current quarter classification.

 

 

PRESS RELEASE:

 

Motherson Sumi Systems Limited announces Q3 FY11-12 results

Q3 Results FY 11-12 (all comparisons with Q3 FY10-11)

 

·         During the quarter, both consolidated and standalone sales have grown substantially.

·         Consolidated Operating performance improved with better performance from Motherson Sumi Systems Limited (MSSL) Standalone and Samvardhana Motherson Reflectec (SMR) performance, including utilization of new facility at Hungary.

·         Domestic business continues growth , in spite of tough domestic market conditions

·         SMR reported 36% growth in sales compared to same quarter last year and 21% growth compared to previous quarter.

·         SMR Operating EBITDA before exchange loss shows an improvement 19% compared to same period last year and 95% compared to previous quarter .

·         Samvardhana Motherson Polymers (SMPL) consolidates results of acquired business of Peguform Group for about one month (from 24-11-2011) reports positive EBITDA, company provides for all acquisition related costs to P/L account.

·         MSSL consolidated full debt of SMPL including refinanced debt at operating level and SPV debt guaranteed by SMFL, joint venture partner in SMPL. MSSL effective consolidated debt including guaranteed for SPV at Rs. 24260.000 Millions.

 

·         Consistent and conservative accounting followed , MSSL makes following provisions :

·         Provision for exchange loss on long term loan : Rs 627.500 Millions on consolidated basis and Rs 373.500 Millions on standalone basis

·         Other expenditure include provision of Rs 97.400 Millions for possible write – off on account of filing for bankruptcy proceedings by SAAB

·         Acquisition related and one time costs such as Due diligence costs, Upfront/mandate fees for loans etc. amounted to Rs 789.100 Millions written off by SMPL.

·         Goodwill of Rs 45.100 Millions at the time of acquisition of Vacuform 2000 (Pty) Limited fully provided for.

·         TOTAL Impact on Consolidated PBT : RS 1559.100 Millions – hence reported Loss

 

FIXED ASSETS

 

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Computers

·         Vehicles

 

 

 

 

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 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.55.73

UK Pound

1

Rs.87.26

Euro

1

Rs.69.84

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

 

65

 

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.