MIRA INFORM REPORT

 

 

Report Date :

26.02.2013

 

IDENTIFICATION DETAILS

 

Name :

IRAN KHODRO INDUSTRIAL GROUP COMPANY PLC

 

 

Registered Office :

Next To Townships Telephone, Ekbatan St, Tehran, Iran

 

 

Country :

Iran

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

01.08.1962

 

 

Com. Reg. No.:

8352

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

Manufacture and distribution of passenger cars and spare parts; assembly and distribution of trucks, buses and utility vehicles; provides repair, maintenance and rental services; consultancy services; automotive test and research services

 

 

No. of Employees :

Not available 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No  Complaints

 

 

Litigation :

Clear 

 

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 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Iran

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Iran - ECONOMIC OVERVIEW

 

Iran's economy is marked by statist policies and an inefficient state sector, which create major distortions throughout the system, and reliance on oil, which provides the majority of government revenues. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity is typically limited to small-scale workshops, farming, and services. Significant informal market activity flourishes and corruption is widespread. Tehran since the early 1990s has recognized the need to reduce these inefficiencies, and in December 2010 the legislature passed President Mahmud AHMADI-NEJAD's Targeted Subsidies Law (TSL) to reduce state subsidies on food and energy. This was the most extensive economic reform since the government implemented gasoline rationing in 2007. Over a five-year period the bill will phase out subsidies that previously cost Tehran $60-$100 billion annually and mostly benefited Iran's upper and middle classes. Cash payouts of $45 per person to more than 90% of Iranian households mitigated initial widespread resistance to the TSL program, though popular acceptance remains vulnerable to rising inflation. A rise in world oil prices in 2011 increased Iran's oil export revenue by roughly $28 billion over 2010, easing some of the financial impact of international sanctions. However, expansionary fiscal and monetary policies, government mismanagement, the sanctions, and a depreciating currency are fueling inflation, and GDP growth remains stagnant. Iran also continues to suffer from double-digit unemployment and underemployment. Underemployment among Iran''s educated youth has convinced many to seek jobs overseas, resulting in a significant "brain drain.

 

Source : CIA

 


Company details

 

Company Name:                      IRAN KHODRO INDUSTRIAL GROUP COMPANY PLC

 

Also Known as:                        KHODRO

                                                IKCO

                                                IKC

                                                Iran KHODRO Industrial Group

                                                شرکت ایران خودرو سهامی عام

 

Address:                                   KM 14 Karaj MAKHSOOS Road, Tehran, Iran

 

Postal Address:                       P O Box 13895-111

 

Telephone:                                +98 21 48901

                                                +98 21 4822-8486

 

Fax:                                            +98 21 44907202-3

                                               +98 21 48228499

 

E-mail:                                       irankhodro@ikco.com

                                               info@ikco.com

 

Website:                                 www.ikco.com

 

 

Company was originally started on 01/08/1962

 

 

Registration & Legal Details

 

Current Legal Form                Public Joint Stock Company

Registration Address:           Next to townships telephone Office (KHAYAMI Brothers),

                                                   EKBATAN St, Tehran, Iran

 

 

Registration Number:            8352

 

Established Date:                   01/08/1962

Registration Date:                  01/08/1962

Registration Town:                Tehran

National NO:                           10100360794

Capital:                                     8,820,000,000,000 Iranian Riyals

 

 

 

 

 

Shareholders

 

Major Shareholders Information

Name

Type

Country

Holding

Public

 

-

80.00%

Industrial Development and Renovation Organization

Government

Iran

20.00%

 

 

Principals

 

Name:                                             Mr. JAVAD NAJMEDDIN

Position within the company:    Managing Director

 Country of Birth:                          Iran

 Nationality:                                   Iranian

Can fluently speak:                       Persian, English

 

 

Name:                                             Mr. MOHSEN SALEHI NIA

Position within the company:   Vice Chairman 

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. Mohammad Ali VAFAYI

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. BEHZAD ZAHIRI

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                            Mr. SEYED HOSEIN AMIRI

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                            Mr. Mohammad NIKFAR 

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

Name:                                             Mr. FATHOLLAH PARTOVI

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. ABOLFAZL ESMAEIL ZADEH 

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. Mir JAVAD SOLEIMANI

Position within the company:   Deputy Chief Executive Officer,

Quality and Product Development

Country of Birth:                          Iran

Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. HOSEIN NAJARI

Position within the company:   Manager

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. SEYED MAJID HEDAYAT  

Position within the company:   Chairman 

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

Name:                                             Mr. HOSEIN JAVAD NIA  

Position within the company:   Member of the Board  

Country of Birth:                          Iran

 Nationality:                                  Iranian

Can fluently speak:                      Persian, English

 

 

 

                   

 

 

 

 

 

Company Activities

 

Manufacture and distribution of passenger cars and spare parts; assembly and distribution of trucks, buses and utility vehicles; provides repair, maintenance and rental services; consultancy services; automotive test and research services. Produces wagon, rail bus and light rail.

 

 

Financial Information

 

Financial Results

31-Dec-09

31-Dec-10

Yr On Yr

 

IRR'000

IRR'000

Change

otal revenues

83,610,826,000

97,173,318,000

16.22

Net profit

2,478,009,000

3,202,120,000

29.22

Total assets

83,741,583,000

80,306,752,000

(4.10)

 

 

Operations

 

 Company Employs:                             22,066 

 

 Sales:                                                     %50 National

 Sales to:                                                group companies, Importers, Exporters

 

 Sales Term:                                           Cash, Letter of Credit

   

 Vehicles:                                                300

 

 

HQ Premises

 

Operates Form:                           Owned: Office, Warehouse, and Factory

Location:                                      Central Business Area, Side Road

        

Branches

 

1-Azerbaijan

2-Egypt

3-Syria

4-Venezuela

5-Belarus

6-14th Km Karaj Special Rd. P.O Box: 13145/1185, Tehran, Iran

 


Brands

 

1.                                                  BARDO

2.                                                                          MINIATOR

3.                                                                          RUNNA

4.                                                                          SAMAND

5.                                                                          SARIR

6.                                                                          CHERY

7.                                                                          Dena

8.                                                                          SOREN

 

 

Licensors

 

CHERY

Hyundai

Mercedes-Benz

 

Peugeot

Renault

 

 

Total Production Capacity

680042 vehicles in 2009

755555 vehicles in 2010

 

 

Principals and Agencies

JINHUA Youngman

 

 

Imports

 

Imports From:                                 France, Germany 

Importing Terms:                            Letters of credit

Import % and type of product:       50% Finished Goods

Additional Information:                   Balance of %50 purchased via local market.

 

 

Export

 

Export To:                                      Germany, Russian Federation, Turkey, Ukraine, Senegal,

                                                         Bulgaria, Egypt, Algeria

Exporting Terms:                            Letters of credit

Export % and type of product:      50% Finished Goods

 

 

Related Companies

 

Subsidiaries/Associates/Affiliates

Name

Country

Holding

Iran KHODRO Investment Development Company

UAE

-

Syrian-Iranian Automobile Manufacturing Company

Syria

40.00%

Iran Services Engineering Iran KHODRO Company [ISEIKCO]

Iran

100.00%

SAMAND Investment

Iran

100.00%

IRANFAVA GOSTARESH

Iran

100.00%

The Engineering and Consulting Company [TAM]

Iran

100.00%

Supplying Automotive Parts Company [SAPCO]

Iran

100.00%

Iran KHODRO Diesel Company

Iran

100.00%

IKCO Spare Parts and After Sales Services Company [ISACO]

Iran

100.00%

Iran KHODRO Power Train Company [IPCO]

Iran

100.00%

Iran KHODRO Personnel Cooperative Company

Iran

100.00%

Iran KHODRO KHORASAN

Iran

100.00%

SETAREH Iran

Iran

66.70%

CHARKHESHGAR [via Iran KHODRO Diesel Company]

Iran

61.33%

Iran Parts Supply and Engineering [via Iran KHODRO Diesel Company]

Iran

-

Iran Test and Research Auto Company [via Supplying Automotive Parts Company]

Iran

-

ISHCO Kish Company [via IKCO Spare Parts and After Sales Services Company]

Iran

-

KHAVAR Parts Products Company [via Iran KHODRO Diesel Company]

Iran

-

MONIRAFRAZ Electrical Parts Production [via Supplying Automotive Parts Company]

Iran

-

RAHAVARD GOSTARESH SHARGH Company [via Supplying Automotive Parts Company]

Iran

-

SAMAND Rail [via Iran Services Engineering Iran KHODRO Company]

Iran

-

SANAYEH Machine ABZAR Iran KAVOSH [via The Engineering and Consulting Company]

Iran

-

Tehran Scientific And Industrial Services Company [via Supplying Automotive Parts Company]

Iran

-

Iran KHODRO Sport Club

Iran

-

Iran KHODRO SAZEH

Iran

-

Iran KHODRO Industrial Die Company [via The Engineering and Consulting Company]

Iran

-

Iran KHODRO Ashgabat [via Iran KHODRO Diesel Company]

Iran

-

Iran Diesel Motors Production [via Iran KHODRO Diesel Company]

Iran

-

Integrated Auto Parts [via IKCO Spare Parts and After Sales Services Company]

Iran

-

Heavy Vehicle Development Company [via Iran KHODRO Diesel Company]

Iran

-

HAMGAM KHODRO Trading and Services Company [via IKCO Spare Parts and After Sales Services Company]

Iran

-

GOVAH [via Iran KHODRO Diesel Company]

Iran

-

GHALEBHAYE PISHRAFTE Iran [via The Engineering and Consulting Company]

Iran

-

GHADIR Vehicle Leasing Company [via Iran KHODRO Diesel Company]

Iran

-

EMDAD KHODRO Company [via IKCO Spare Parts and After Sales Services Company]

Iran

-

ACT General Trading [via Supplying Automotive Parts Company]

Iran

-

Baku Iran KHODRO Diesel [via Iran KHODRO Diesel Company]

Iran

-

Vehicle Axel Manufacturing [via Iran KHODRO Diesel Company]

Iran

-

Top KHODRO [via Iran KHODRO Diesel Company]

Iran

-

IKCO Trading

Germany

100.00%

SAMAND Belarus Company

Belarus

-

 

Developments and Projects

Name

Country

Holding

VENIR auto Car Plant

Venezuela

-

Iran KHODRO Diesel Factory

Syria

-

SAMAND Manufacturing Plant

Senegal

-

 

Agents and Distributors

Name

Country

First Good Idea

UAE

ALSULTAN Trading Company

Syria

Al MIRABI Group for Trading and Industry

Saudi Arabia

CENTRADIS

Lebanon

ZAMZAM Spring General Trading Company

Iraq

Centre of Development and Commerce

Egypt

Massa Company

Egypt

FAMOVAL

Algeria

 

Related Organizations

Name

Country

SOCIETE ANONYME IRANIENE de Production Automobile

Iran

PSA Peugeot Citroën

France

 

 

Interview & Reporter Comments

 

In the interview conducted with Mr. HOSEIN NAJARI, Manager, he confirmed the details provided in this report.

 

 

Conclusions

 

Local Reputation:

The company being investigated is believed by local reporters to be a MEDIUM Trade Risk.

Informants advise that transaction is to be fair.

 

Owner/Shareholders Comments: All or most of the owners / shareholders have an active participation in the running of the business.

 

Age of Business: Old Business

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.04

UK Pound

1

Rs.81.80

Euro

1

Rs.71.41

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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 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%)

 

 

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

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