MIRA
INFORM REPORT
|
Report Date : |
19.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HONDA CARS INDIA LIMITED (w.e.f 06.09.2012) |
|
|
|
|
Formerly Known
As : |
HONDA SIEL CARS INDIA LIMITED |
|
|
|
|
Registered
Office : |
Crowne Plaza Today New Delhi Okhla, Plot no. 1, Community Centre,
Okhla Phase – I, New Delhi- 110020 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
05.12.1995 |
|
|
|
|
Com. Reg. No.: |
55- 203983 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 5699.700 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U15114DL1995PLC203983 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH1765Q |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Motors Cars. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 52000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Honda Motor Company Limited, There appears some dip in the sales turnover of the company during 2012
and it has incurred loss from its operation. However, financial position of the company appears to be sound and
healthy. Directors are well- experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payment
terms are regular and as per commitment. In view of strong holding, the company can be considered good for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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 |
|
Rating |
LAA + |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
July 2010 |
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 : |
Crowne Plaza Today New Delhi Okhla, Plot no. 1, Community Centre,
Okhla Phase – I, New Delhi- 110020, India |
|
Tel. No.: |
91-11-41680694 |
|
Fax No.: |
91-11-41680696 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Plot No. A-1, Sector 40/ 41, |
|
Tel. No.: |
91-120 - 234 1313/ 1321/ 1327/ 1801/ 1806/ 1802 |
|
Fax No.: |
91-120 – 2341261/ 300 |
|
|
|
|
Zonal Mumbai Office : |
D-126, TTC Industrial Area, MIDC Shiravane, Nerul, Thane-Belapur Road,
Navi Mumbai- 400706, Maharashtra, India |
|
Tel. No.: |
91-22-67895000/ 5001/ 5002/ 5003 |
|
|
|
|
Zonal Chennai Office : |
Old No. 26/New No. 46, Opp. ICICI Bank, Ambattur Industrial Estate,
Ambattur – 600058, Tamilnadu, India |
|
Tel. No.: |
91-44-42083774/75/76/78 |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
As on 31.08.2012
|
Name : |
Hironori Kanayama |
|
Designation : |
Nominee director |
|
Address : |
House No. C- 586, First Floor, Defence Colony, |
|
Date of Birth/Age : |
07.12.1953 |
|
Date of Appointment : |
31.08.2012 |
|
DIN No.: |
05235686 |
|
|
|
|
Name : |
Haruhito Murai |
|
Designation : |
Nominee director |
|
Address : |
House No. E- 123, The Icon, DLF City Phase- V, Gurgaon- 122009,
Haryana, India |
|
Date of Birth/Age : |
06.07.1955 |
|
Date of Appointment : |
19.08.2010 |
|
DIN No.: |
03022453 |
|
|
|
|
Name : |
Raman Kumar Sharma |
|
Designation : |
Nominee director |
|
Address : |
House No. 70, Sector- 9, |
|
Date of Birth/Age : |
12.01.1956 |
|
Date of Appointment : |
08.09.2007 |
|
DIN No.: |
01381382 |
|
|
|
|
Name : |
Shigeru Yamazaki |
|
Designation : |
Nominee director |
|
Address : |
House No. D- 30, First Floor, Pamposh Enclave, Greater Kailash- I, New
Delhi- 110048, India |
|
Date of Birth/Age : |
07.01.1958 |
|
Date of Appointment : |
31.08.2012 |
|
DIN No.: |
05237170 |
|
|
|
|
Name : |
Jiro Morisawa |
|
Designation : |
Additional director |
|
Address : |
House No. R-143, Ground Floor, Pamposh Enclave, Greater Kailash- I,
New Delhi- 110048, India |
|
Date of Birth/Age : |
24.02.1967 |
|
Date of Appointment : |
10.08.2011 |
|
DIN No.: |
03493736 |
|
|
|
|
Name : |
Toshio Sugiyama |
|
Designation : |
Additional director |
|
Address : |
House No. S-358, First Floor, Pamposh Enclave, Greater Kailash- I, New
Delhi- 110048, India |
|
Date of Birth/Age : |
12.03.1955 |
|
Date of Appointment : |
10.08.2011 |
|
DIN No.: |
03504548 |
|
|
|
|
Name : |
Koichiro Kageta |
|
Designation : |
Additional director |
|
Address : |
House No. S-545, First Floor, Pamposh Enclave, Greater Kailash- I, New
Delhi- 110048, India |
|
Date of Birth/Age : |
05.08.1963 |
|
Date of Appointment : |
10.08.2011 |
|
DIN No.: |
03493628 |
KEY EXECUTIVES
|
Name : |
Arun Pratap Singh |
|
Designation : |
Secretary |
|
Address : |
614, Mahagun Maple, Sector- 50, Noida- 201301, Uttar Pradesh, India |
|
Date of Birth/Age : |
01.02.1972 |
|
Date of Appointment : |
20.08.2007 |
|
PAN No.: |
ANNPS4540D |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.08.2012
|
Names of Shareholders |
|
No. of Shares |
|
Honda Motors Company Limited, |
|
569973747 |
|
Honda Motor Company Limited, |
|
01 |
|
Honda Motor Company Limited, |
|
01 |
|
Honda Motor Company Limited, |
|
01 |
|
Honda Motor Company Limited, |
|
01 |
|
Honda Motor Company Limited, |
|
01 |
|
Honda Motor Company Limited, |
|
01 |
|
Total |
|
569973753 |
As on 31.08.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Motors Cars |
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Cars |
Nos |
100,000 |
65,550 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· Bank of Tokyo Mitsubishi UFJ Limited, 3, Jeevan Vihar Building, Parliament Street, New Delhi- 110001, India · Citi Bank N.A., 5th Floor, DLF Centre, Parliament Street, New Delhi- 110001, Delhi, India |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A. F. Ferguson and Company Chartered Accountants |
|
Address : |
9, Scindia House, Kasturba Gandhi Marg, |
|
PAN.: |
AABFA5846M |
|
|
|
|
Holding Company: |
Honda Motor Company Limited, |
|
|
|
|
Joint Venture
Company : |
· Global Auto Parts Alliance India Private Limited (also a fellow subsidiary) · Rajasthan Prime Steel Processing Center Private Limited (also a fellow subsidiary) ·
Bestex MM India Private Limited |
|
|
|
|
Fellow Subsidiaries
: |
· American Honda Motor Company, Inc · Asian Honda Motor Company Limited · Honda Access Asia and Oceania Company Limited · Honda Auto parts Manufacturing (M) Sdn.Bhd. · Honda Automobile ( Thailand ) Company Limited · Honda Cars Philippines, Inc. · Yutaka Autoparts India Private Limited · Honda Express Logistics India Private Limited · Honda Kaihatsu Company Limited · Honda Malaysia Sdn. Bhd. · Honda Motor China Company Limited · Honda Motor India Private Limited · Honda Motorcycle and Scooter India Private Limited · Honda Parts Manufacturing Corporation · Honda R and D Asia Pacific Company Limited · Honda Trading Philippines Ecozone Corp · Honda RandD Company Limited · Honda RandD ( India ) Private Limited · Honda Siel Power Products Limited · Honda Trading (Asia) Company Limited {formerly known as Honda Trading ( Thailand ) Company Limited } · Honda Trading China Company Limited · Honda Trading Corporation India Private Limited · Honda Trading Corporation · Honda Trading Europe Limited · Honda Access Corporation Limited · Honda Trading South China Company Limited · PT. Honda Prospect Motor · PT. Honda Precision Parts Manufacturing · Wuhan Honda Trading Company Limited · Yachiyo India Manufacturing Private Limited ·
Honda Engineering Asian Company Limited |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
569973753 |
Equity Shares |
Rs.10/- each |
Rs.5699.738
Millions |
|
|
|
|
|
Disclosure of
shareholding more than five per cent in company
|
Name of shareholder |
Number of shares held in company |
Percentage of shareholding in company |
|
Honda Motor Company Limited, Japan |
55,19,73,753 |
96.84% |
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 |
5699.700 |
3600.000 |
3600.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7308.300 |
3452.761 |
5581.149 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13008.000 |
7052.761 |
9181.149 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
354.100 |
5132.930 |
3346.027 |
|
|
2] Unsecured Loans |
6032.100 |
6772.728 |
2742.212 |
|
|
TOTAL BORROWING |
6386.200 |
11905.658 |
6088.239 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19394.200 |
18958.419 |
15269.388 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16639.600 |
9665.159 |
12198.948 |
|
|
Capital work-in-progress |
602.300 |
5632.840 |
1611.623 |
|
|
|
|
|
|
|
|
INVESTMENT |
117.900 |
230.599 |
256.437 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
1332.970 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5249.300
|
6948.365 |
5167.701 |
|
|
Sundry Debtors |
657.800
|
2935.144 |
540.620 |
|
|
Cash & Bank Balances |
3279.900
|
204.311 |
387.651 |
|
|
Other Current Assets |
240.600
|
0.000 |
0.000 |
|
|
Loans & Advances |
3143.500
|
2851.055 |
2922.772 |
|
Total
Current Assets |
12571.100
|
12938.875 |
9018.744 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8514.100
|
9303.381 |
8991.419 |
|
|
Other Current Liabilities |
1906.300
|
46.279 |
18.773 |
|
|
Provisions |
116.300
|
159.394 |
139.142 |
|
Total
Current Liabilities |
10536.700
|
9509.054 |
9149.334 |
|
|
Net Current Assets |
2034.400
|
3429.821 |
(130.590) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19394.200 |
18958.419 |
15269.388 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
32484.600 |
|
|
|
Other Income |
|
|
617.300 |
|
|
|
TOTAL (A) |
|
|
33101.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
|
|
26255.000 |
|
|
|
Purchases of stock-in-trade |
|
|
579.800 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
|
|
3119.100 |
|
|
|
Employee benefit expense |
|
|
2009.500 |
|
|
|
Other expenses |
|
|
6535.600 |
|
|
|
Exceptional items |
|
|
(2422.000) |
|
|
|
TOTAL (B) |
|
|
36077.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
(2975.100) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
843.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
(3818.200) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
2226.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
|
|
(6044.800) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
|
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
|
|
(6044.800) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
3452.800 |
|
|
|
|
|
|
|
|
|
|
BALANCE / (LOSS)
CARRIED TO THE B/S |
|
|
(2592.000) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
(16.40) |
|
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
39368.514 |
40811.068 |
|
|
|
Other Income |
|
872.753 |
1233.271 |
|
|
|
TOTAL (A) |
|
40241.267 |
42044.339 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption material changes inventories |
|
31063.317 |
33225.929 |
|
|
|
Administrative selling other expenses |
|
7028.101 |
6155.079 |
|
|
|
TOTAL (B) |
|
38091.418 |
39381.008 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
2149.849 |
2663.331 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
216.678 |
181.045 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
1933.171 |
2482.286 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
2728.589 |
2904.670 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
|
(795.418) |
(422.384) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
(1332.970) |
(69.226) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I) (J) |
|
(2128.388) |
(353.158) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
5581.149 |
5934.307 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
|
3452.761 |
5581.149 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
|
NA |
265.625 |
|
|
TOTAL EARNINGS |
|
NA |
265.625 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
|
13055.053 |
|
|
|
Stores & Spares |
|
NA |
508.590 |
|
|
|
Capital Goods |
|
|
63.664 |
|
|
TOTAL IMPORTS |
|
NA |
13627.307 |
|
|
|
|
|
|
|
|
|
|
Earnings/
(LOSS) Per Share (Rs.) |
|
(5.91) |
(0.98) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(18.26)
|
(5.28)
|
(0.83) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(18.61)
|
(2.02)
|
(1.03) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(20.69)
|
(6.14)
|
(4.68) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.46)
|
(0.11)
|
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.49
|
1.69
|
0.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19
|
1.36
|
0.98 |
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 |
Yes |
Note:
The registered office of the company has been shifted from 3 and 4/48, Enkay
House, 2ND Floor, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi-
110021, India to present address w.e.f. 09.08.2012
COMPANY’S OPERATIONS
The Company’s operations during the year 2011-12 were severely impacted due to unfortunate natural calamities in Japan and Thailand in the year 2011, leading to non-availability of critical components/parts and also due to rising fuel prices and expanding gap between prices of diesel and petrol. As a result, the launch of ‘BRIO’, the new small car, was adversely affected and when the Company would have embarked on high growth, the year closed with sales of 54,526 units in comparison to 59,552 units during the year 2010-11 witnessing a 8.5% drop in sales. The Company has a market share of 2.08% in the overall passenger vehicle segment. In the meantime, in the current year, price gap between diesel and petrol has further widened in the month of May, 2012, immediately impacting the sale of petrol cars resulting into build up of stocks and necessitating suitable changes in the Business Plan. The situation has been further compounded with the Rupee continuing to weaken against all the major currencies, putting pressure on the cost structure and Company’s margins.
Accordingly, the Company has continued its focus on strengthening the in-house cost constitution, endeavouring for increased localization levels, developing local suppliers and building capacity for critical components at its Plant at Tapukara, so as to optimize its product line-up to address diverse market requirements, minimize the risk of foreign exchange fluctuations and dependence on imports.
As production resumed to full capacity from February, 2012, the Company is now ready to give more joys to its customers. With the introduction of ‘Brio’ and launch of updated ‘Jazz’ and ‘City’ models, the Company has a refreshed line-up of cars, which are competitively priced.
Inspite of adversities on account of diesel – petrol fuel price difference, the year 2012-13 is an “opportunity” year for the Company when it has to strengthen the foundation of its business operations. The Company’s main focus is on the ‘Brio’ and ‘City’ models, which are the two pillars of its business now, and stepped up localization efforts.
UNSECURED
LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Long-term
Borrowings |
|
|
|
Rupee term loans from banks |
1045.200 |
|
|
Foreign currency term loans from banks |
471.200 |
6772.728 |
|
Other external commercial borrowings |
1017.400 |
|
|
Short-term
Borrowings |
|
|
|
Other external commercial borrowings |
3498.300 |
|
|
Total |
6032.100 |
6772.728 |
Contingent
liabilities :
(a) Claims against
the Company not acknowledged as debts:-
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
- excise duty |
48.100 |
66.800 |
|
- customs duty [refer (d) below] |
281.500 |
281.500 |
|
- service tax |
222.900 |
220.500 |
|
- income tax |
4030.000 |
2081.200 |
|
- sales/trade tax |
450.100 |
449.900 |
|
- entry tax |
21.000 |
32.700 |
|
- others |
202.200 |
200.700 |
(b) During the previous year, the Company had received orders under section 201 of the Income tax Act,1961 demanding tax of Rs. 34259.300 millions and interest thereon of Rs. 13131.300 millions in aggregate from the Income-tax authorities for the financial years 2004-05 to 2009-10 alleging non-deduction of withholding tax on imports/ reimbursements of expenses from / to its associated enterprises.
The Company had also received show cause notices, aggregating to Rs. 34259.300 millions, as to why penalty for non-deduction of withholding tax be not levied under section 271C of the Income- tax Act,1961 on the above matter.
The Hon'ble Allahabad High Court, while disposing the Company's writ petitions, vide its order dated May 30, 2011, has set aside the above orders and the penalty notices on ground of natural justice. However, the tax authorities have been given the liberty to examine the issue afresh and pass orders in accordance with law.
The Company has not received any further notice in the aforesaid matter upto March 31, 2012.
Liability arising in the above matters in future, if any, is not ascertainable
(c) The Company has received various show cause notices for sales / trade tax matters asking for explanations as to why certain amounts (which in view of the management can not be reliably estimated) should not be paid. As these notices are in the nature of explanations required, the Company does not consider these to constitute a liability of any kind.
(d) The Customs and Central Excise Settlement Commission (CCESC) had accepted the Company's contention and settled the customs duty liabilities on import of drawings under its Technical Collaboration Agreement with Honda Motor Company Limited., Japan at Rs. 11.700 millions, (previous year Rs. 11.700 millions), (and provided for in the accounts in previous years) and granted immunity from penalty as against the demands by customs authorities of Rs. 281.500 millions (including penalty of Rs. 140.700 millions) [ Previous year Rs. 281.500 millions ( including penalty of Rs. 140.700 millions)]. The customs authorities had preferred writ petitions in the High Court, challenging the order of CCESC. During the current year, the Hon'ble High Court of Delhi vide its order dated December 23, 2011, has remanded the matter back to the CCESC to re-examine the issue of valuation of drawings and certain other aspects. The Company has filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India against the said order which is pending disposal.
FIXED ASSETS
- Land
- Building
- Plant and
Machinery
- Furniture,
Fixture and Office Equipments
- Computers and
data processing machines
- Vehicles
- Computer
Software
WEBSITE DETAILS
PRESS RELEASES
HONDA TO HIKE CAR
PRICES BY UP TO 2% FROM APRIL
New Delhi March
13, 2013
Honda Cars India Limited (HCIL) will increase prices of its vehicles across models by up to 2% from April to offset cost of OBD (on-board diagnostics) compliance and freight increase.
"We are increasing car prices from April 1, 2013 by an amount of up to 2%.
The details are still being worked out," a company official said.
The increase in prices will be primarily on account of OBD compliance effective
from April 1, 2013 and freight increase, the official added.
At present the company sells hatchbacks Brio and Jazz, sedans - City, Civic and
Accord - and sports utility vehicle CR-V, with prices ranging from Rs 0.410
Million to Rs 2.738 Millions (ex-showroom Delhi) across the models.
The price hike comes at a time when the company is witnessing a decline in
sales in a tough market. HCIL had reported 26.49% decrease in its domestic
sales for February 2013 at 6,510 units as against 8,856 units in the same month
last year.
HCIL is slated to introduce its much-awaited entry-level sedan Amaze in April, which will be the company's first diesel offering in India.
HCIL REPORTS 46%
INCREASE IN CUMULATIVE SALES DURING APRIL’12 – FEBRUARY’13
New Delhi, March 1, 2013: Honda Cars India Limited (HCIL), leading manufacturer of premium cars in India, cumulatively sold 63,439 units during April 2012 – February 2013 as compared to 43,411 units in the corresponding period last year recording a growth of 46%
HCIL also exported a total volume of 510 units during February 2013. The company
sold 6510 units during February 2013 as against 8856 units sold during the same
period last year.
Model wise sales
break-up of Domestic sales:
|
Brio |
2916 |
|
Jazz |
185 |
|
City |
3271 |
|
Civic |
21 |
|
Accord |
62 |
|
CR-V |
55 |
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.54.29 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.70.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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.