1. Summary Information
|
Country |
|
||
|
Company Name |
LEAR AUTOMOTIVE INDIA PRIVATE LIMITED |
Principal Name 1 |
Mr. Amit Sharma |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Amardeep Arepalli |
|
Registration # |
11-134085 |
||
|
Street Address |
E-25, 26 and 27, Bhosari MIDC, Bhosari – 411026, Maharashtra, India |
||
|
Established Date |
05.02.1996 |
SIC Code |
-- |
|
Telephone# |
91-20-66123005/ 66123425 / 66123001 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-20-66123000 |
Business Style 2 |
Designer |
|
Homepage |
Product Name 1 |
Automobile Seating |
|
|
# of employees |
Not Available |
Product Name 2 |
Interior Components |
|
Paid up capital |
Rs. 313,200,000/- |
Product Name 3 |
-- |
|
Shareholders |
Foreign holdings - 100.00 % |
Banking |
Citi
Bank |
|
Public Limited Corp. |
No |
Business Period |
17 Years |
|
IPO |
No |
International Ins. |
- |
|
Public |
No |
Rating |
|
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Ultimate holding Company |
-- |
Lear Corporation (Mauritius) Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,249,800,000 |
Current Liabilities |
3,542,600,000 |
|
Inventories |
816,700,000 |
Long-term Liabilities |
0,000 |
|
Fixed Assets |
1,525,500,000 |
Other Liabilities |
319,100,000 |
|
Deferred Assets |
102,400,000 |
Total Liabilities |
3,861,700,000 |
|
Invest& other Assets |
287,000,000 |
Retained Earnings |
2,027,500,000 |
|
|
|
Net Worth |
3,119,700,000 |
|
Total Assets |
6,981,400,000 |
Total Liab. & Equity |
6,981,400,000 |
|
Total Assets (Previous Year) |
5,136,433,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
11,733,840,000 |
Net Profit |
458,334,000 |
|
Sales(Previous yr) |
7,617,832,000 |
Net Profit(Prev.yr) |
156,763,000 |
MIRA INFORM REPORT
|
Report Date : |
30.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
LEAR AUTOMOTIVE INDIA PRIVATE LIMITED (w.e.f. 29.03.2006) |
|
|
|
|
Formerly Known
As : |
LEAR SEATING PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
E-25, 26 and 27, Bhosari MIDC, Bhosari – 411026, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
05.02.1996 |
|
|
|
|
Com. Reg. No.: |
11-134085 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.313.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U34300PN1996PTC134085 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELL02667A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACL1978K |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer and Designer of Automobile Seating and Interior Components for Various Automobiles. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Lear Corporation (Mauritius) Limited’. It
is a well established company having a satisfactory track record. Financial position
of the company seems to be strong. There is no external borrowing. Liquidity
position is good. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at 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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 : |
E-25, 26 and 27, Bhosati MIDC, Saket District Centre, Saket,
Bhosari-411026, Maharashtra, India |
|
Tel. No.: |
91-20-66123005/ 66123425 / 66123001 |
|
Fax No.: |
91-20-66123000 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Taj Palace Hotel, Suit No. 268, 2 LSP Marg, New Delhi-110021, India |
|
Tel. No.: |
91-11-24104537 |
|
Fax No.: |
91-11-24104547 |
|
E-Mail : |
|
|
|
|
|
Factory 1: |
Halol Highway Near Toll Naka, Halol-389350, Gujarat, India |
|
Tel No.: |
91-2676-222700/222353/222600 |
|
|
|
|
Factory 2: |
Gat No. 427, Hissa No. 6 to 9, Opposite, HP Gas Refilling, Mahalunge Ingale, MIDC Chakan, Taluka Khed, District Pune-410501, Maharashtra, India |
|
|
|
|
Branch Office : |
Located At: · Ahmedabad · Bengaluru · Chennai · Gurgaon ·
· Kolkata · Mumabi ·
·
Pune |
DIRECTORS
As on 29.09.2012
|
Name : |
Mr. Amit Sharma |
|
Designation : |
Director |
|
Address : |
444, Pocket – A, Sarita Vihar, New Delhi-110 076, India |
|
Date of Birth/Age : |
10.05.1979 |
|
Qualification : |
B. Com, LLB |
|
Date of Appointment : |
29.09.2010 |
|
DIN No.: |
02513254 |
|
|
|
|
Name : |
Mr. Amardeep Arepalli |
|
Designation : |
Director |
|
Address : |
Flat No.4A, Pavan Towers, 2nd Line, Gayatri Nagar,
Vijaywada – 520008, Andhra Pradesh, India |
|
Date of Birth/Age : |
18.11.1966 |
|
Qualification : |
BE, MBA |
|
Date of Appointment : |
30.09.2011 |
|
DIN No.: |
03502721 |
KEY EXECUTIVES
|
Name : |
Mr. Yogesh Dattatraya Mase |
|
Designation : |
Secretary |
|
Address : |
501, Kashinath Apartment, Walvekar Nagar, Pune Satara Road, Behind
Walvekar Lawn, Pune – 411009, Maharashtra, India |
|
Date of Birth/Age : |
06.04.1974 |
|
Date of Appointment : |
15.06.2009 |
|
PAN No.: |
AEKPM5727L |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
S. Bhalchandra Bhalerao (under beneficial Ownership of Lear Corporation (Mauritius) Limited, Mauritius) |
|
1 |
|
Anil Khanna (under beneficial Ownership of Lear corporation (Mauritius) Limited), Mauritius) |
|
1 |
|
Lear Corporation ( |
|
32613758 |
|
Total |
|
32613760 |
As on 29.09.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Designer of Automobile Seating and Interior Components for Various Automobiles. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Actual
Production |
|
Automotive Seating Systems |
Nos. |
2833346 |
|
Interior Components |
Nos. |
2659352 |
|
Metal Parts |
Nos. |
3194370 |
|
Wiring harness |
Nos. |
394392 |
Notes:
1. Licensed capacity not being applicable has not been indicated.
2. Having regard to the nature of operations, changes in product mix and utilization of manufacturing facilities, it is impracticable to provide details about installed capacity.
3. Difference in quantitative tally represents free supplies/ captive consumption. Production includes free supplies/ captive consumption.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Citi Bank, Pune Branch, |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
|
Address : |
C – 401, 4th floor, |
|
Tel. No.: |
91-20-66036000 |
|
Fax No.: |
91-20-66015900 |
|
PAN.: |
AABFS3421N |
|
|
|
|
Ultimate holding
Company : |
Lear Corporation Inc. |
|
|
|
|
Holding Company : |
Lear Corporation (Mauritius) Limited |
|
|
|
|
Fellow subsidiaries
: |
CIN No.:U34100TN2008PTC069830
|
|
|
|
|
Entities where Key
management personnel have significant influence: |
CIN No.: U35900TN2007PTC065380 |
CAPITAL STRUCTURE
As on 29.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32613760 |
Equity Shares |
Rs.10/- each |
Rs.326.138
Millions |
|
|
|
|
|
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31320000 |
Equity Shares |
Rs.10/- each |
Rs.313.200
Millions |
|
|
|
|
|
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 |
313.200 |
300.051 |
296.251 |
|
|
2] Share Application Money |
779.000 |
452.500 |
0.000 |
|
|
3] Reserves & Surplus |
2027.500 |
861.665 |
514.902 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3119.700 |
1614.216 |
811.153 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
630.281 |
880.281 |
|
|
TOTAL BORROWING |
0.000 |
630.281 |
880.281 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3119.700 |
2244.497 |
1691.434 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1525.500 |
1463.384 |
1394.853 |
|
|
Capital work-in-progress |
287.000 |
41.013 |
18.957 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
102.400 |
47.415 |
71.132 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
816.700
|
654.149
|
277.455 |
|
|
Sundry Debtors |
2861.000
|
1945.573
|
1092.628 |
|
|
Cash & Bank Balances |
394.900
|
360.112
|
19.187 |
|
|
Other Non-Current Assets |
17.400
|
|
|
|
|
Other Current Assets |
306.400
|
199.547
|
421.806 |
|
|
Loans & Advances |
670.100
|
425.240
|
301.232 |
|
Total
Current Assets |
5066.500
|
3584.621
|
2112.308 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2933.000
|
2441.047
|
1453.365 |
|
|
Other Current Liabilities |
609.600 |
317.684 |
349.364 |
|
|
Provisions |
319.100
|
133.205
|
103.087 |
|
Total
Current Liabilities |
3861.700
|
2891.936
|
1905.816 |
|
|
Net Current Assets |
1204.800
|
692.685
|
206.492 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3119.700 |
2244.497 |
1691.434 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
|
7617.832 |
4186.362 |
|
|
|
Service Income |
|
437.910 |
405.817 |
|
|
|
Other Income |
400.053 |
87.949 |
58.791 |
|
|
|
TOTAL |
12133.893 |
8143.691 |
4650.970 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
11467.766 |
7814.998 |
4580.744 |
|
|
|
|
|
|
|
|
|
PROFIT(LOSS)
BEFORE TAX |
666.127 |
328.693 |
70.226 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
207.793 |
171.930 |
22.905 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX |
458.334 |
156.763 |
47.321 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
376.572 |
219.809 |
172.488 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
834.906 |
376.572 |
219.809 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
|
886.200 |
618.905 |
77.852 |
|
|
|
|
540.000 |
414.622 |
423.841 |
|
|
|
Reimbursement of Expenses |
0.910 |
35.069 |
26.409 |
|
|
TOTAL EARNINGS |
1427.110 |
1068.596 |
528.102 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1622.131 |
679.687 |
|
|
|
Stores & Spares |
|
8.105 |
8.248 |
|
|
|
Capital Goods |
|
21.261 |
88.753 |
|
|
TOTAL IMPORTS |
NA |
1651.497 |
776.688 |
|
|
|
|
|
|
|
|
|
|
Earnings/Loss
Per Share (Rs.) |
14.72 |
5.27 |
1.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.78
|
1.92
|
1.02
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.68
|
4.31
|
1.68
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.11
|
6.51
|
2.00
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.20
|
0.09
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.39
|
1.09
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.24
|
1.11
|
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter 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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
DETAILS OF
UNSECURED LOAN
[Rs.
In Million]
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Deferred sales tax loan unsecured |
|
630.281 |
|
Other debt unsecured |
|
0.000 |
|
Total |
0.000 |
630.281 |
NOTE
The registered office address of the company has been shifted from “206
and 206A, Rectangle – 1, D-4, Saket District Centre, Saket, New Delhi – 110017,
India” to the present address w.e.f. 27.05.2009.
OPERATIONS
During the financial year 2011-2012, the Company had successfully launched three new Seating programs for its customers including Mahindra and Mahindra and BMW India from Company’s Nasik and Chennai plants, respectively. Operations from existing plants of the Company at Halol, Nasik, Pune and Chennai continued to support ongoing Seating and Wire Harness programs of the customers. The quality performance was as per the customer target which is below 25 PPM. Customers like Mahindra and Mahindra appreciated company’s efforts through Excellence Award for Supply Chain Performance, Panch-Ratna Best Supplier Award and Annual Commodity Award in recognition of superior performance. Company has been awarded the prestigious Business Partner of the Year 2011 award by General Motors India.
The Company expanded its Vertical Integration Metals manufacturing facility at Pune, Chennai and continued to export Track Assembly and Recliners to China, Thailand, and Malaysia. New facility at Oragadam, Chennai has been completed and fully operational for Vertical Integration initiative including Metals and Cut and Sew operations.
During the year, Company was also certified for ISO/TS 16949:2009 for its Chakan and Bhosari operations and received ISO 14000 certification for its Chakan Metal operations.
Company ensured 100% on time deliveries to its customers. Company continued to face challenges from ever increasing customer expectations and performance level of the suppliers. Company continued to focus on consolidation of operations at Chakan and Chennai region and new facility construction at both the locations is as per plans.
The engineering centers at Thane and Pune continued to support the engineering and design related activities of the Company and Company’s affiliates worldwide and some non-affiliated companies as well. The Company continued to expand its state-of-the-art seat testing facility at Bhosari, Pune to augment various testing requirements for the new seating programs.
The Company’s turnover i.e. Revenue from sale of goods and services increased by about 45% over the previous year and the Company earned net profit of Rs. 458.330 million after tax and prior period items. As per notification by Ministry of Corporate Affairs, the revised Schedule VI is applicable to Balance Sheet and Profit and Loss account to be prepared for the financial year commencing on or from April 1, 2011. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this years classification. Further, previous periods/years figures have been regrouped/rearranged wherever necessary.
The Director General of Central Excise Intelligence (DGCEI) for the year 2003-04, caused the Company to pay an amount of Rs. 25 million on certain aspects which includes, valuation of finished goods for the purpose of excise duty with reference to the (a) the free inputs and engineering costs received from customer, (b) tooling advances received from customers, and (c) difference due to inventory cycle count during normal business for certain period. The Company had deposited the above amount under protest in the earlier years. Further during past years, the Company, based on legal opinion, had provided for a sum of Rs.6.850 million regarding undisputed liabilities. Decision from the Tribunal were not in favor of the Company and now the matter is being contested before the High Court at Mumbai, however the Company paid Rs. 4 million towards interest based of Tribunals decision. In addition, the Tax Authorities had issued notices against the Company under Customs, Central Excise, VAT and Service Tax Acts for which the Company has filed necessary replies and responses with the respective authorities. The appeals are pending with Central Excise and Service Tax Appellate Tribunal (CESTAT) and various Commissioners. The aggregate amount under dispute is about Rs.78.000 million.
During the period of 2002-2007, Companys Gonde Nasik unit had availed Sales Tax Deferral benefit under the Package Scheme of Incentives - (PSI 1993) of Government of Maharashtra. The plant was authorized to defer the Sales Tax liability beginning April 1, 2002 to March 31, 2013. The Company has opted for early repayment of Sales Tax under the PSI scheme. The entire amount of deferred Sales Tax has been repaid in the month of January, 2012, according to the repayment rules of PSI scheme based on NPV.
During the year the Company has received intimation from the High Court at New Delhi that the income tax authorities have filed an appeal against the order of the Income Tax Appellate Tribunal (ITAT) for assessment year 2004-05. The appeal is yet to be admitted by the High
Court.
During the year the Dispute Resolution Panel (DRP) has confirmed the disallowances made by assessing officer for assessment year 2007-08.
The Company has received the final order for assessment year 2007-08 pursuant to the instructions of DRP wherein a sum of Rs. 57.6 million was disallowed by the assessing officer. The disallowances are arising out of the transfer pricing adjustments made for transactions with the associated enterprises. The Company has filed an appeal before the ITAT against the final order. Based on the legal opinion obtained by the Company and further discussions with the advisors, the Company believes that there is a fair chance of decision in its favor in respect of the matters listed above and accordingly no provision has been considered necessary.
The Company had received a notice from tax authorities for assessment year 2007-08 raising a demand of Rs.300.000 million arising due to the final order passed by the assessing officer. The Company has made a partial payment of Rs.4.000 million against the demand and filed a petition before the ITAT to stay the collection of balance demand till the disposal of appeals on merits.
The Company has also received draft assessment order for assessment year 2008-09 wherein the assessing officer has disallowed a sum of Rs.70.000 million, which primarily consists of transfer pricing adjustments for the transactions with associated enterprises. The Company has filed its grounds of objections before the DRP, which are presently pending for hearing. Based on the legal opinion obtained by the Company and further discussions with the advisors, the Company believes that there is a fair chance of decision in its favor in respect of the matters listed above and accordingly no provision has been considered necessary.
The Company has also re-hired Pricewaterhouse Coopers for conducting a Transfer Pricing Study to determine the arms length pricing of the international transactions that the Company had entered into in the financial year ending March 31, 2012.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
(Rs. In Millions)
|
Particulars |
|
31.03.2011 |
|
Claims by the excise authorities |
|
24.173 |
|
Claims by Sales tax authorities |
|
33.693 |
|
Income tax cases for Transfer Pricing |
|
25.248 |
|
Income tax case pending before ITAT, CIT (Appeals) and Dispute Resolution Panel |
|
38.864 |
|
Labour Industrial dispute cases |
|
0.411 |
|
Total |
|
122.389 |
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
·
·
Leasehold Improvement
·
Furniture and Fixture
·
Computers (Hardware and Software)
·
Plant and Machinery
·
Equipment and Fittings
·
Office Equipments
·
Vehicles
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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
|
1 |
Rs.84.23 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.