MIRA
INFORM REPORT
|
Report Date : |
05.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SONA KOYO STEERING SYSTEMS LIMITED |
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Registered
Office : |
UGF - 6, Indraprakash, 21, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
14.06.1984 |
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Com. Reg. No.: |
55-018415 |
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Capital
Investment / Paid-up Capital : |
Rs.198.742 Millions |
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CIN No.: [Company Identification
No.] |
L29113DL1984PLC018415 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHES05669G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Automotive Components for four Wheelers. |
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No. of Employees
: |
689 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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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 |
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Maximum Credit Limit : |
USD 9100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having fine track. Financial
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 a usual
trade terms and condition. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
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Rating |
Short Term-Fund Based Limit = A1 |
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Rating Explanation |
The highest credit quality it carry lowest credit risk |
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Date |
12.04.2012 |
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Rating Agency Name |
ICRA |
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Rating |
Long Term-Fund Based Limit = A |
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Rating Explanation |
Adequate credit quality It carries average credit risk |
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Date |
12.04.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
UGF - 6, Indraprakash, 21, Barakhamba Road, New Delhi –
110001, India |
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Tel. No.: |
91-11-23311924 / 1925 |
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Fax No.: |
91-11-23327205 |
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E-Mail : |
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Website : |
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Liaison Office : |
2nd Floor, |
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Corporate Office / Factory 1 : |
38/6, NH-8, |
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Tel. No.: |
91-124-4685000 |
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Fax No.: |
91-124-4104611 / 4104621 |
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Website : |
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Total Site Area: |
56970 sq. m |
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Total Floor
Area: |
14125 sq. m |
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Factory 2 : |
P.O. Box 14, Chennai – Bangalore Highway (NH – 4), Sriperumpudur, District Chinglepet-602105, Tamil Nadu, India |
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Tel. No.: |
91-44-37170000 |
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Fax No.: |
91-44-27162349 |
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Total Site Area: |
56970 sq. m |
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Total Floor
Area: |
10890 sq. m |
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Factory 3 : |
Plot No.32, Industrial Area, Phase II, Dharuhera, District
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Tel. No.: |
91-1274-242978 / 82 |
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Total Site Area: |
20117 sq. m |
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Total Floor
Area: |
9255 sq. m |
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Factory 4 : |
Plot No.D9, TML Vendor Prk, Survey No.1, Village Northcotepura, Sanand, Ahmedabad, Gujarat, India |
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Total Site Area: |
16200 sq. m |
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Total Floor
Area: |
2639 sq. m |
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Factory 5 : |
Plot No. 19, Industrial Area, Dharuhera, District Rewari, Haryana, India |
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Factory 6 : |
Village Malpura, Tehsil
Dharuhera, Distract Rewari, Haryana, India |
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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 31.03.2012
|
Name : |
Mr. Surinder Kapur |
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Designation : |
Chairman |
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Qualification : |
Ph. D.(Mechanical
Engineering), |
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Date of Appointment : |
01.10.1990 |
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Name : |
Mr. Sanjay Kapur |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. K M Deshmukh |
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Designation : |
Deputy Managing Director |
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Date of Birth/Age : |
58 years |
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Qualification : |
B.Tech (Metallurgy) |
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Experience : |
35 Years |
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Date of Appointment : |
01.08.1986 |
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Name : |
Mr. Hiroyuki Miyazaki |
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Designation : |
Nominee of JTEKT Corporation, Japan |
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Name : |
Mr. Kazuhiko Ayabe |
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Designation : |
Nominee of Maruti Suzuki India Limited |
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Name : |
Mr. Jug Mohan Kapur |
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Designation : |
Director |
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Name : |
Mr. B. L. Passi |
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Designation : |
Director |
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Name : |
Mr. Ramesh Suri |
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Designation : |
Director |
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Name : |
Mr. Ravi Bhoothalingam |
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Designation : |
Director |
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Name : |
Mr. P. K. Chadha |
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Designation : |
Director |
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Name : |
Lt. Gen. (Retired) Shamsher Singh Mehta |
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Designation : |
Director |
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Name : |
Dr. Rakesh Mohan |
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Designation : |
Director |
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Name : |
Ms. Ramni Nirula |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sudhir Chopra |
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Designation : |
Company Secretary |
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Qualification : |
B. Com, FCS, LL.B |
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Date of Appointment : |
15.05.1993 |
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Executive Management : |
·
Dr. Surinder Kapur ·
Mr. Sunjay Kapur ·
Mr. K. M. Deshmukh ·
Mr. P. V . Prabhu Parriker ·
Mr. Sudhir Chopra ·
Mr. Sunder Rajan |
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Operating Management: |
· Mr. Sunjay Kapur · Mr. K. M. Deshmukh · Mr. Sudhir Chopra · Mr. Sunder Rajan · Mr. R. B. Singh · Mr. A. Fujimoto · Mr. A. D. Rao · Mr. Rajiv Chanana · Mr. P. P. Gajpal · Mr. Deiva Subramanian · Mr. Deepak Arora ·
Mr. Shyamal Saha |
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Technical Partners: |
·
JTKT Corporation ·
Mando Corporation ·
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
A) Shareholding of Promoter and Promoter Group |
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|
948760 |
0.48 |
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|
63748304 |
32.08 |
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|
64697064 |
32.55 |
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|
39947108 |
20.10 |
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|
39947108 |
20.10 |
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Total shareholding of Promoter and Promoter Group (A) |
104644172 |
52.65 |
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(B) Public Shareholding |
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1081146 |
0.54 |
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|
1300 |
0.00 |
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1200000 |
0.60 |
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|
193000 |
0.10 |
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|
2475446 |
1.25 |
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19141697 |
9.63 |
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|
48655688 |
24.48 |
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13734876 |
6.91 |
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10089953 |
5.08 |
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2500 |
0.00 |
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|
4460731 |
2.24 |
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|
91839 |
0.05 |
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5534883 |
2.78 |
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|
91622214 |
46.10 |
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Total Public shareholding (B) |
94097660 |
47.35 |
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Total (A)+(B) |
198741832 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
198741832 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Automotive Components for four Wheelers. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Steering Product Group |
Nos. |
6309400 |
2668367 |
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Driveline product group |
Nos. |
1610500 |
-- |
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Axle Assemblies incl. Comp. |
Nos. |
-- |
856792 |
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Rack and Pinion Assy. |
Nos. |
-- |
967674 |
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Column and UJ Assy. |
Nos. |
-- |
1347539 |
GENERAL INFORMATION
|
Customers : |
· Maruti Suzuki India Limited · Hyundai Motors Limited · Mahindra and Mahindra Limited · Toyota Kirloskar Motors Private Limited · Tata Motors Limited · General Motors India Limited · Hindustan Motors Limited · Mahindra Renault Limited · MANDO India · TATRA Victra Limited · Swaraj Mazda Limited · Suzuki Power Train India Limited · Reva Electric Car Limited |
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No. of Employees : |
689 (Approximately) |
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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 |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S. P. Puri and Company Chartered Accountants |
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Address : |
4/18, Asaf Ali Road, New Delhi-110002, India |
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Joint Ventures : |
· Sona Autocomp Inc. · Sona Autocomp Europe SARL · AAM Sona Axle Private Limited |
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The entity having
substantial interest in the Company : |
JTEKT Corporation |
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Others (significant
influence) : |
· Sona Somic Lemforder Components Limited · Sona Okegawa Precision Forgings Limited · Mahindra Sona Limited · Maruti Suzuki India Limited · Sona e-Design and Technologies Limited · Fuji Autotech AB, Sweden · Pune Heat Treat Private Limited · Sona Mobility Services Limited · Kapur Properties and Investment · Fuji Autotech Europe SAS · Sona Autocomp Holding Private Limited · 12. Mandira Marketing Limited |
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Subsidiaries : |
· Sona Fuji Kiko Automotive Limited · Sona Stampings Limited · JTEKT Sona Automotive India Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 Millions |
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
198741832 |
Equity Shares |
Re.1/- each |
Rs.198.742
Millions |
|
|
|
|
|
a) Reconciliation of
the equity shares outstanding at the beginning and at the end of reporting year
|
Reconciliation |
As at 31st March, 2012 |
|
|
|
(Nos.) |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
19,87,41,832 |
198.742 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
|
|
|
Shares outstanding at the end of the year |
19,87,41,832 |
198.742 |
b) Terms/rights
attached to equity shares
The Company has only one class of equity shares having a par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting
c) Detail of
Shareholders holding more than 5% share in the company
|
Name of Shareholder |
As at 31st March, 2012 |
|
|
|
No. of Shares |
% of Holding |
|
Equity shares of Rs. 1/- each fully paid |
|
|
|
Sona Autocomp Holding Private Limited |
4,99,14,664 |
25.12% |
|
JTEKT Corporation |
3,99,47,108 |
20.10% |
|
Maruti Suzuki India Limited |
1,38,00,000 |
6.94% |
d) Aggregate number of
bonus shares issued during the period of five years immediately preceding the
reporting date
|
Reconciliation |
As at 31st March, 2012 (Nos.) |
|
Equity shares allotted as fully paid bonus shares (face value ? 1/- per share) by capitalization of capital redemption reserve |
8,79,34,000 |
During the financial year 2008-09 the Company had sub-divided the face value of equity share from Rs.2/- per share to Rs.1/- per share and the effect of same has been taken into account for disclosure of number of bonus shares
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
198.742 |
198.742 |
198.742 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2077.177 |
1838.946 |
1614.972 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2275.919 |
2037.688 |
1813.714 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1951.050 |
1676.918 |
2191.212 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1951.050 |
1676.918 |
2191.212 |
|
|
DEFERRED TAX LIABILITIES |
322.033 |
298.925 |
227.925 |
|
|
|
|
|
|
|
|
TOTAL |
4549.002 |
4013.531 |
4232.851 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3771.396 |
3180.864 |
2997.938 |
|
|
Capital work-in-progress |
370.377 |
148.058 |
196.245 |
|
|
|
|
|
|
|
|
INVESTMENT |
678.820 |
678.820 |
713.357 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
387.617
|
472.493 |
390.207
|
|
|
Sundry Debtors |
1256.494
|
1119.644 |
913.123
|
|
|
Cash & Bank Balances |
12.473
|
14.529 |
7.861
|
|
|
Other Current Assets |
216.692
|
160.483 |
5.375
|
|
|
Other Non-Current Assets |
1.786
|
0.000 |
0.000 |
|
|
Loans & Advances |
442.531
|
546.988 |
478.202 |
|
Total
Current Assets |
2317.593
|
2314.137 |
1794.768 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1672.182
|
1456.056 |
1285.496 |
|
|
Other Current Liabilities |
705.254
|
653.838 |
80.696
|
|
|
Provisions |
211.748
|
198.454 |
103.265
|
|
Total
Current Liabilities |
2589.184
|
2308.348 |
1469.457 |
|
|
Net Current Assets |
(271.591)
|
5.789 |
325.311
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4549.002 |
4013.531 |
4232.851 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11405.302 |
10347.667 |
8502.990 |
|
|
|
Other Income |
39.629 |
35.711 |
54.955 |
|
|
|
TOTAL (A) |
11444.931 |
10383.378 |
8557.945 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8140.791 |
|
|
|
|
|
Purchases of Stock-In-Trade |
109.466 |
94.607 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-In-Trade |
14.489 |
(39.263_ |
7626.352 |
|
|
|
Employee benefit expenses |
959.046 |
756.489 |
|
|
|
|
Research & development expenses |
26.346 |
23.509 |
|
|
|
|
Other expenses |
961.694 |
866.749 |
|
|
|
|
Exceptional items |
|
(33.218) |
|
|
|
|
TOTAL (B) |
10211.832 |
9266.678 |
7626.352 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1233.099 |
1116.700 |
931.593 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
336.947 |
317.257 |
336.124 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
896.152 |
799.443 |
595.469 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
333.406 |
284.478 |
265.803 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
562.746 |
514.965 |
329.666 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
174.376 |
140.852 |
113.213 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
388.370 |
374.113 |
216.453 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
245.648 |
61.674 |
(65.253) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Divided |
129.200 |
129.182 |
59.623 |
|
|
|
Tax on Proposed Dividend |
21.000 |
20.957 |
9.903 |
|
|
|
Transfer to General Reserve |
45.000 |
40.000 |
20.000 |
|
|
BALANCE CARRIED
TO THE B/S |
438.818 |
245.648 |
61.674 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
420.092 |
437.016 |
318.819 |
|
|
TOTAL EARNINGS |
420.092 |
437.016 |
318.819 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
31.949 |
20.567 |
|
|
|
|
Stores & Spares |
1405.441 |
1558.346 |
0 |
|
|
|
Capital Goods |
126.434 |
42.246 |
22.927 |
|
|
TOTAL IMPORTS |
1563.824 |
1621.159 |
1975.816 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
1.95 |
1.88 |
1.09 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 1st Quarter |
30.09.2012 2nd Quarter |
|
Net Sales |
|
2906.620 |
2483.810 |
|
Total Expenditure |
|
2626.900 |
2248.520 |
|
PBIDT (Excl OI) |
|
279.7200 |
235.290 |
|
Other Income |
|
8.740 |
11.530 |
|
Operating Profit |
|
288.460 |
246.820 |
|
Interest |
|
78.300 |
80.130 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
210.160 |
166.690 |
|
Depreciation |
|
98.480 |
99.960 |
|
Profit Before Tax |
|
111.680 |
66.740 |
|
Tax |
|
37.333 |
19.250 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
74.360 |
47.490 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
74.360 |
47.490 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.39
|
3.60 |
2.53
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.93
|
4.96 |
3.88
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.24
|
9.37 |
6.88
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.25 |
0.18
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
1.96 |
2.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90
|
1.00 |
1.22
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last 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 |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
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, 2012, JSAI has achieved total income of Rs.3804.400 Millions and earned net profit of Rs.232.600 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 Co. Ltd., 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, 2012, SFAL has achieved total income of Rs.358.500 Millions and earned net profit of Rs. 17.100 Millions.
c. Sona Stampings Limited (SSL)
In SSL, the Company is holding 69.92% of the Equity Capital. 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. During the year, SSL has shifted its factory premises from Farukhnagar to new industrial location at Plot No. 731, Sector 37C, Pace City-II, Gurgaon to smoothen its operations. During the year ended 31st March, 2012, SSL has achieved total income of Rs.118.500 Millions and incurred loss of Rs.40.200 Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
MARKET SCENARIO
2011 witnessed slowdown in world economic growth from 5.2% to 3.8%. GDP growth in the US slipped to 1.8% in Q4 of 2011 from 2.7% during Q4 of 2010. The Euro zone continued to remain under severe pressure due to sovereign debt crisis registering a marginal GDP growth of 1.6%. The major emerging economies also faced slowdown in growth with China growing at 9.2% in 2011 compared to 10.4% in 2010.
Global economy continues to face strong headwinds with growth projected to drop from 3.8 % in 2011 to 3.3% in 2012. Developed economies are expected to expand marginally by 1.2% in 2012. Fiscal consolidation and bank deleveraging would be the key drivers for slowdown. While both are needed today, they would most certainly decrease growth in the short term. Fiscal consolidation is being implemented in most advanced economies while bank deleveraging is primarily affecting Europe. While such deleveraging does not necessarily imply lower credit to the private sector, the evidence suggests that it is contributing to a tighter credit supply.
Emerging economies are not immune to these developments; low economic growth has meant lower export growth for them. Further financial uncertainty, together with sharp shifts in risk appetite, has led to volatile capital flows impacting balance of payments and exchange rates.
The Indian economy continues to face strong challenges in the forms of rising fiscal deficit, ballooning oil import bill, declining rupee and infrastructural bottlenecks. The Indian Index of Industrial Production (IIP) grew by only 2.8% during 2011-12 as compared to 8.2% in 2010-11. Fiscal deficit remains at a high level of 5.6% with debt to GDP ratio of 74%. Also, the oil import bill increased by 47% in FY'12 compared to FY'11.
Despite the tough economic conditions, the Indian economy has shown strong resilience registering GDP growth of 6.5% in FY'12. India's GDP as per different estimates is expected to grow between 6.3% - 7.5% in 2012-13. A cyclical upturn in investment, stronger external demand and the effects of recent monetary easing will boost growth, although high inflation and falling value of rupee would dampen the investment climate.
Besides, there are certain critical data points that could favour the India growth story and spark a turnaround. International crude oil price has corrected sharply and is now flat on a year-on-year basis. Even a modest increase in domestic fuel prices, coupled with the international price decline that has taken place so far, will bring cohesiveness to the FY'12-13 budget target, ease current account pressure and help stabilize the exchange rate.
Also, despite high inflation, disaffection with political situation and daunting infrastructure bottlenecks, the Indian consumers remain aspirational and confident about their income and employment outlook keeping the Indian consumption story intact. This is a powerful factor that can underpin strong consumption for a long period.
MARKET SEGMENT
The Indian Automotive industry witnessed a slowdown in demand in 2011-12, partly contributed by rising interest rates and fuel prices impacting consumer sentiment, reinforced by the sovereign debt crisis in the Eurozone. The automotive industry growth halved to 13.8% YOY in FY'12, compared to a 27.5% YoY growth in FY'11, with cumulative production for FY'12 being 20,366,432 units. While passenger vehicle segment grew at 4.6% during FY'12, overall commercial vehicle segment registered an expansion of 18.2% YoY.
In addition to the slowing growth, the margins of automotive component industry were also impacted due to combination of multiple factors. Weaker INR against USD negated the potential benefit from softening commodity prices and weaker INR against JPY increased the cost of imports for ancillaries. Also, sluggish growth in supplies to domestic OEMs, coupled with higher overhead costs, led to decline in profitability margins.
Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. The contribution of the automotive industry to GDP has risen from 2.7% in 1992-93 to around 5.5% in 2010-11. ACMA estimates, that this number is expected to increase to 10% by 2016.
The Indian automotive component industry has transitioned from a low key supplier providing components to the domestic market to one of the key global auto component centers. India is now a supplier of range of high value added and critical components to global auto makers. The automotive component industry has registered a growth rate of 26% in the period 2010-11 with exports estimated to be USD 5 billion. The automotive component industry continues to play a critical role in growth of the Indian economy.
As per SIAM, domestic passenger vehicles sales are expected to grow by 10-12% in 2012-13 with pickup in small car sales. The passenger vejjicie4ndustry is also benefitting from India's favourable demographic profile, which is reflected by its yej^-yoTjng populataoji455%^oij3opulation under the age of 25), steadily improving dependency ratio, growing urbanization and trend moving towards smaller, nuclear families. These trends in turn result in higher savings and increased ability to purchase vehicles, as well as explain the preference for smaller-cars. Also, the wide variety of models and easy availability of financing options continue to act as key growth drivers.
In addition to demand from urban areas, smaller towns and rural India have been incrementally driving demand for passenger vehicles in India. For instance, market leader Maruti Suzuki generates nearly 19% of its sales from non-urban areas compared to just 4-5% about five years back. This has largely been prompted by rising disposable income levels in smaller towns and rural areas, improving road connectivity and higher number of earning members in the family.
The overall outlook on the Indian automotive sector continues to be positive in the long term, aided by low penetration levels, healthy economic environment, favourable demographics and higher per-capita income levels which would help automotive players to maintain their top-line growth. The long term growth rates (3-5 years) for passenger vehicles and commercial vehicles is expected to be -15%.
OPERATIONS
With clear focus on building a stronger future, the company incurred a capex of Rs.1146.000 millions towards setting-up a new facility at Dharuhera to manufacture steering systems, establishing an aluminium die-casting facility at Dharuhera as part of the company's attempt towards backward integration and in-sourcing of aluminium die-cast child parts of steering systems, besides replacement and expansion capex at its other plants at Dharuhera, Chennai and Sanand. The company has plans to incur additional capex towards localization programmes, next phase of expansion of aluminium die-casting facilities as well as regular capacity expansion across manufacturing facilities.
The Company completed the commissioning of the EPAM (Electronic Power Assist Module) plant for off highway vehicle applications in January 2012. Commercial production started with supplies to John Deere, a Fortune 500 company and the leading manufacturer of agricultural machinery in the world for the off-highway vehicle market. Entry into a new segment with one of leading companies augurs well for Sona Koyo as it provides strong platform to garner more clients in the segment. The product, a result of in-house R and D efforts, is a testimony to the strong technical competence of the company, which would continue to create a strong competitive advantage for the company.
Capacity Utilization - Management focus during the year was towards improving capacity utilization and Value Addition per employee. Despite tough market conditions, the Company, at the operating levels, improved its Capacity Utilization by producing 5,230,330 units under the Steering and Column Assembly group as compared to 5,021,169 units produced last year registering a growth of 4.1%.
PROFITABILITY AND
COMPETITIVENESS IMPROVEMENT
Despite a challenging market environment, management focus towards improving competitiveness has helped the company to achieve robust growth in turnover and profitability. Sona Koyo achieved 10.2% growth in sales turnover to reach Rs.11405.302 millions. Sona Koyo was able to make a PAT of Rs.388.370 millions in FY-12, an increase of 3.8% over PAT of Rs.374.000 millions made in FY'11.
With a strong localization program in place, Sona Koyo has continued with its efforts to reduce imports and improve the level of localization of various imported parts. The company initiated work on Phase-4 CEPS localization at Dharuhera facility which would bring down the percentage of import content. Various VA/VE activities were initiated along with active participation with Suppliers to improve efficiency of operations. A direct impact of these efforts was a reduction in raw material cost as a percentage of total revenues from 74% in FY'11 to 72.5% in FY'12. Sona Koyo continues to invest in various HR programs and trainings aimed at adding value and improving manpower efficiency. The company has undertaken multiple training programs such as Group Kaizen and Total Quality Management Programs. The company has automated the complete HR systems and is in the process of commissioning an online HRMS. This would enable safety of data, speed, and accuracy. This is another major HR initiative that the company has launched aimed at making Sona Koyo an employer of choice.
They believe IT is a strong driver towards not only improving efficiency but also towards improvement in overall quality of processes. With this in mind company has laid down the IT strategy roadmap for next 3 years aimed at enhancing knowledge management systems, business intelligence systems and improving supplier collaboration. Another initiative taken by the Company was to implement virtualization of computing power and end user devices which would optimize utilization of resources and reduce energy consumption and end user maintenance. In addition, the Company has upgraded the Product Life Management application. These initiatives shall deliver robust financial controls.
AWARDS AND
RECOGNITION
Recognition from customers is the strongest testimony to company's excellence and Sona Koyo once again achieved recognition of its excellence. Maruti Suzuki awarded Sona Koyo with Production System Excellence Award and Human Resource Excellence Award. Sona Koyo was also awarded with 2nd prize in Kaizen competition for Mahindra Supplier group.
To demonstrate its products and technological prowess, the company participated in the auto expo held from 7th _ 11th January, 2012. Sona Koyo showcased its steering systems, EPAM, Case differentials and Aluminium Die Casting components developed at its own Aluminium Die Casting plant.
SUPPLY CHAIN
MANAGEMENT
Sona Koyo believes in the power of partnerships. It believes in the unique capabilities of its partners to compliment and supplement each other. The Company has collaborated with multiple partners for different products, technologies and customer requirements. In line with this strategy, the company had embarked upon the VSME (Visionary Small and Medium Enterprises) project under Visionary Leaders for Manufacturing (VLFM) Programme run in collaboration with CII in year 2010-11 which continued this year as well. After the successful completion of VSME 1st batch which included 8 suppliers in FY'12, company has expanded the scope for VSME 2nd batch to include 12 suppliers which would begin in FY'13. The faculty for the programme includes Chief Advisor, Professor Shoji Shiba _ an international expert in TQM and Breakthrough management. Sona Koyo technical team actively participates with the selected suppliers to enable improvement of efficiency of their manufacturing operations and achieve technological changes.
Over the years Sona Koyo has placed strong emphasis on building long term partnerships with suppliers and continues to take multiple steps in enhancing the same. The strength of these partnerships can be seen from the fact that 42% of the suppliers have been associated with the company for more than 20 years. The Company organized the Supplier Conference which was attended by 220 suppliers. The theme for the conference was "Partnering Growth" and was aimed at enabling both Sona Koyo and the suppliers to be mutually aligned to the changing market scenario. Dr. Surinder Kapur and other Board of Directors were an integral part of the whole proceedings enhancing the bond between the senior management and suppliers. Sona Koyo sensitised the suppliers with key trends in Global and Indian automotive industry and highlighted the possible impact on industry. There was a demonstration of customer ratings and improvement areas for suppliers. The Company also gave away 28 different awards based on various success parameters. Sona Koyo would continue to implement a structured program to further enhance collaboration with the suppliers.
The Company continues to make efforts to improve supply chain efficiency and has initiated multiple programs for reducing bottlenecks in the supply chain. The Company has launched "Milk Run" a unique program that aims to save on component delivery time from suppliers to the manufacturing plant. Also, the company periodically reviews the capacities and performance of suppliers enabling it to proactively modify its sourcing strategy.
OUTLOOK
The automotive industry is not only one of the highest revenue-earning industries in India but also it provides large scale employment, which creates a strong multiplier effect. The industry has been witnessing impressive growth during the last two decades. It has been able to restructure itself, absorb newer technology, align itself to global developments and realize its potential. Coupled with the benefit of a large and growing domestic market, India has proven product development capabilities making it an attractive destination as a global outsourcing hub and manufacturing base for original equipment manufacturers. The Indian auto component industry is one of the front runners for grabbing increasing share of global auto component outsourcing market, estimated to be worth USD 700 billion by 2015.
As per SIAM estimates, growth rate in the Auto sector is estimated to be 10%-12% in FY'13 driven by cooling inflation and moderation in interest rates. 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 drive long term growth of the Indian automotive sector.
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 automotive industry over the next five to seven years. Cost and Efficiency optimization shall be the key words.
CONTINGENT
LIABILITIES
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
I) Claims against the Company not acknowledged as debt on account of : |
|
|
|
Excise duty |
198.178 |
132.254 |
|
Service tax |
26.706 |
341.88 |
|
Local Area Development Tax |
43.572 |
20.916 |
|
Income tax - matters in appeal |
3.053 |
5.681 |
|
Warranties/customers |
-- |
6.725 |
|
II) Customer bills discounted |
140.600 |
91.000 |
|
III) Letter of credit opened by banks for purchase of inventory / capital goods |
124.331 |
86.700 |
IV) The Company has filed a writ petition with the Hon’ble High Court of Calcutta for injunction 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 alongwith the appeals of Tata Motors Ltd. and their other vendors. Pending finalization of the case, the Company has not made any provision for the impairment of value of land.
V) During the year under audit, search and seizure operation were carried out by Revenue Authorities on 29th November, 2011. However neither any unexplained money, bullion or valuables were found nor there was any seizure. Additional tax liability, if any, shall be accounted for on creation of demand against the Company.
UNAUDITED STANDALONE
AND CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th
SEPTEMBER, 2012
Rs. In Millions
|
Sr. No. |
Particular |
Quarter ended |
Preceding Quarter Ended |
Half Year Ended Half Year Ended |
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1. |
Income from operations |
|
|
|
|
|
(a) Net sales from operations (net of excise duv) |
2472.437 |
2891.912 |
5364.349 |
|
|
(b) Other operating income |
11.368 |
14.714 |
26.082 |
|
|
Total income
from operations (net) |
2483.805 |
2906.626 |
5390.431 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) Cost of raw material and components consumed |
1698.669 |
2076.305 |
3774.974 |
|
|
b) Purchase of Stock –in-Trade |
42.365 |
38.882 |
81.247 |
|
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
7.155 |
(31.210) |
(24.055) |
|
|
d) Employee Cost benefits expenses |
248.732 |
256.514 |
505.246 |
|
|
(e) Depreciation and amortization expense |
99.958 |
98.479 |
198.437 |
|
|
f) Other expenses |
251.588 |
286.411 |
537.999 |
|
|
g)
Total Expenditure (a to f) |
23483.467 |
2725.381 |
5073.848 |
|
|
|
|
|
|
|
3. |
Profit/ (Loss) from
operations before other income, finance costs and exceptional items ( 1-2) |
135.338 |
181.245 |
316.583 |
|
|
|
|
|
|
|
4. |
Other Income |
11.531 |
8.737 |
20.268 |
|
|
|
|
|
|
|
5. |
Profit/ (Loss) from
ofinary activitibs before finance costs and exceptional items ( 3+4) |
146.869 |
189.982 |
336.851 |
|
|
|
|
|
|
|
6. |
Finance Costs |
80.126 |
78.296 |
158.422 |
|
|
|
|
|
|
|
7. |
Profit/ (Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
66.743 |
111.686 |
18.429 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit/ (Loss)
from ordinary activities before tax ( 7-8 ) |
66.743 |
111.686 |
18.429 |
|
|
|
|
|
|
|
10. |
Tax Expense |
|
|
|
|
|
a)
Current Year |
9.943 |
38.600 |
48.543 |
|
|
b)
Earlier year6 excess provision of tax written
back |
(15.999) |
0.900 |
(15.099) |
|
|
c)
Minimum alternate tax (MAT) ctedit entitlement |
|
|
|
|
|
d)
Deferred Tax |
25.306 |
(2.171) |
23.135 |
|
|
Total tax
expenses |
19.250 |
37.329 |
56.579 |
|
|
|
|
|
|
|
11. |
Net profit/
(loss) from ordinary activities after tax ( 9-10 ) |
47.493 |
74.357 |
121.850 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
470493 |
74.357 |
121.850 |
|
|
|
|
|
|
|
14. |
Minority
interest |
-- |
-- |
-- |
|
|
|
|
|
|
|
15. |
Net profit/ (loss)
after taxes, minority interest and share of profit/ (loss) os associates
(u-14) |
47.493 |
74.357 |
121.850 |
|
|
|
|
|
|
|
16. |
Paid up equity sham capital ( Face value of Rs 1/- per share) |
198.742 |
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 |
0.24 |
0.37 |
0.61 |
|
|
b) Diluted EPS after extraordinary items |
0.24 |
0.37 |
0.61 |
|
|
|
|
|
|
|
19. |
Public
Shareholding |
|
|
|
|
(a) |
-Number of Shares |
94,1097,660 |
94,1097,660 |
94,1097,660 |
|
|
- Percentage of Shareholding |
47.35% |
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 |
104,644,172 |
104,644,172 |
104,644,172 |
|
|
- 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% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
52.65% |
52.65% |
52.65% |
Note:
:
1. The above Un-audited Financial Results for the quarter and half year ended 30th September, 2012, as reviewed and recommended 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 November, 2012.
2. Pursuant to clause 41 of the Listing Agreement, Limited Review of the Standalone and Consolidated Un-audited financial results for the quarter and half year ended 30th September, 2012 has been carried out by the Statutory Auditors and the same has been placed before the Board.
3. Consolidated Financial statement has been prepared in accordance with Accounting Standard-21 "Consolidated Financial Statements".
4. 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.
5. At the beginning of the quarter there was no investor complaint pending. During the current quarter, the Company has received five complaints and all the said five complaints have been redressed and resolved.
6. Segment Reporting : The Company(ies) are primarily engaged in the business of Auto Components for Four Wheelers, which is 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).
7. EPS has been computed in accordance with Accounting Standard AS-20.
8. Hitherto, the exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, were treated as borrowing cost in terms of the AS-16, "Borrowing Costs". During the period, pursuant to a clarification dated 9th August, 2012 from the Ministry of Corporate affairs, the Company has changed the accounting policy, retrospectively w.e.f from 1st April, 2011 to treat the same as " foreign exchange fluctuation" to be accounted as per AS-11, "The Effects of Changes in Foreign Exchange Rates" instead of the "borrowing costs". This has resulted into an increase in the Tangible Fixed Assets, during the quarter ended 30th September 2012, by Rs. 4.222 Millions with a corresponding increase in the depreciation by Rs. 0.170 Million on Standalone basis and Rs. 67.250 Millions and Rs. 6.427 Millions on Consolidated basis respectively and an increase in profit before tax, net of depreciation as aforesaid stated, by Rs. 4.052 Millions on Standalone basis and Rs. 60.823 Millions on Consolidated basis.
9. During the quarter ended 30th September 2012, Sona Stampings Limited, one of the subsidiaries of the Company, has become 100% subsidiary on acquisition of remaining Minority interest at a cost of Rs. 8.887 Millions 10 Previous
STANDALONE AND CONSOLIDATED
STATEMENT OF ASSETS and LIABILITIES
Rs. In Millions
|
Sr. |
PARTICULARS |
30.09.2012 |
|
|
|
|
|
A |
EQUITY AND
LIABILITIES |
|
|
|
|
|
|
1 |
Shareholders'
funds |
|
|
|
a)
Share capital |
198.742 |
|
|
b)
Reserves and surplus |
2199.026 |
|
|
Sub total |
2397.768 |
|
|
|
|
|
2 |
Minority
interest |
-- |
|
|
|
|
|
3 |
Non-current Liabilities |
|
|
|
a)
Long-term borrowings |
1766.224 |
|
|
b)
Deferred tax liabilities (Net) |
345.168 |
|
|
c)
Other Long term liabilities |
1.650 |
|
|
d)
Long-term provisions |
40.162 |
|
|
Sub total |
2153.204 |
|
|
|
|
|
4 |
Current Liabilities |
|
|
|
a)
Short-term borrowings |
626.955 |
|
|
b)
Trade payables |
1426.922 |
|
|
c)
Other current liabilities |
806.865 |
|
|
d)
Short-term provisions |
15.952 |
|
|
Sub total |
2876.694 |
|
|
|
|
|
|
Total EQUITY AND
LIABILITIES |
7427.666 |
|
|
|
|
|
B |
ASSETS |
|
|
|
|
|
|
1 |
Non-current
assets |
|
|
|
a) Fixed assets |
4361.011 |
|
|
b) Goodwill on consolidation |
-- |
|
|
c) Non-current investments |
687.707 |
|
|
d) Long-term loans and advances |
183.552 |
|
|
e) Other non-current assets |
1.853 |
|
|
Sub total |
5234.123 |
|
|
|
|
|
2 |
Current assets |
|
|
|
a)
Inventories |
458.059 |
|
|
b)
Trade receivables |
1319.902 |
|
|
c)
Cash and bank balances |
26.843 |
|
|
d)
Short-term loans and advances |
271.891 |
|
|
e)
Other current assets |
116.848 |
|
|
Sub total |
2193.543 |
|
|
|
|
|
|
TOTAL ASSETS |
7427.666 |
FIXED ASSETS
· Land
· Building
· Lease Hold Improvements
· Plant and Machinery
· Jigs and Fixture
· Electric Installation
· Furniture and Fixture
· Office Equipments
· Vehicles.
· Computers
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 subject 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, subject. 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.
PRESS RELEASE
SONA KOYO STEERING SYSTEMS LIMITED
PERIOD ENDED 30th SEPTEMBER 2012
New Delhi, November 01, 2012: The Board of Directors of Sona Koyo Steering Systems Limited. (SONA), India's largest manufacturer and supplier of Steering Systems, in Technical and Financial Collaboration with global No. 1 Steering System manufacturer viz. 'JTEKT Corporation', Japan (formerly Koyo Seiko Company Limited), in its meeting held on 1st November, 2012 has taken on record the Un-audited Financial Results for the Second Quarter and Half Year ended 30th September, 2012.
On Consolidated
basis:
For the quarter ended 30th September 2012, Net Sales declined by 1.9% to Rs. 3283.000 Millions from Rs. 3346.000 Millions during the same quarter last year and Profit after Tax & Minority Interest is at Rs. 69.000 Millions against Rs. 39.000 Millions during the same quarter last year.
For the half year ended 30th September 2012, Net Sales have grown by 3.4% to Rs. 6952.000 Millions from Rs. 6721.000 Millions during the same period last year and Profit after Tax & Minority Interest is at Rs. 152.000 Millions against Rs. 196.000 Millions during the same period last year.
On Standalone basis:
For the quarter ended 30th September 2012, Net Sales declined by 8.5% to reach Rs. 2472.000 Millions from Rs. 2703.000 Millions against the same period last year. EBITDA as percentage of sales at 10% in Q2FY13 remained at par with the same level achieved in Q2FY12. However, PAT declined to Rs. 47.000 Millions against Rs. 67.000 Millions during the same period last year mainly due to increase in depreciation on new investments.
For the half year ended 30th September 2012, Net Sales marginally declined by 0.5% to reach Rs. 5364.000 Millions from Rs. 5394.000 Millions against the same period last year. EBITDA as percentage of sales at 10% in H1FY13 remained at par with the same level achieved in H1FY12. However, PAT declined to Rs. 122.000 Millions against Rs. 159.000 Millions during the same period last year mainly due to increase in depreciation on new investments.
About Sona Koyo
Steering Systems Limited
SONA KOYO Steering Systems Limited (SONA) is the flagship company of the SONA Group of Companies. The company is India's largest manufacturer of steering systems and is the supplier of choice to major auto manufacturers with over 45% domestic market share, supplying steering gears, columns and RPS assemblies to almost all Indian passenger car and utility vehicle manufacturers.. The SONA Group comprises the following companies; Sona Okegawa Precision Forgings Limited, Sona BLW Prazisionsschmiede GmbH, Sona Somic Lemforder Components Limited, Mahindra Sona Limited, Sona Mobility and Sona e-Design Limited.
Sona Koyo to supply
steering for off-road vehicles in the US
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 13.7 crore from Rs 20.4 crore for the corresponding period last financial year.
Its consolidated net sales also dipped by 5.77% to Rs 315.2 crore during the third quarter from Rs 334.5 crore 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 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.53.66 |
|
|
1 |
Rs.86.37 |
|
Euro |
1 |
Rs.69.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.