MIRA INFORM REPORT

 

 

Report Date :

07.05.2013

 

IDENTIFICATION DETAILS

 

Name :

BHARAT SEATS LIMITED

 

 

Registered Office :

D – 188, Okhla Industrial Area, Phase – 1, New Delhi – 110020

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

06.03.1986

 

 

Com. Reg. No.:

55-023540

 

 

Capital Investment / Paid-up Capital :

Rs.62.800 Millions

 

 

CIN No.:

[Company Identification No.]

L34300DL1986PLC023540

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and dealer of different seating systems, carpet etc.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1400000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between Indian Promoters (Relan Group), Maruti Udyog Limited (NOW MSIL) and Suzuki Corporation (SMC).

 

It is an established company having good track record. There appears some dip in the turnover and profitability of the company, It is due to heavy investment for capacity expansion at BSL’S plant at Gurgaon and set up of new plant at Bhorakalan and Manesar however, trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Term Loan = BBB+ (Downgraded from A-)

Rating Explanation

Moderate degree of safety it carry moderate credit risk.

Date

March 2012

 

Rating Agency Name

ICRA

Rating

A2+ = Non fund Based Limits

Rating Explanation

Strong degree of safety it carry low credit risk.

Date

March 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 :

D – 188, Okhla Industrial Area, Phase – 1, New Delhi – 110020, India

Tel. No.:

91-11-26811958 / 26811968

Fax No.:

Not Available

E-Mail :

seats@vsnl.net

Website :

http://www.bharatseats.com

 

 

Factory 1 :

Joint Venture Plot No. 1, Maruti Udyog Limited Complex, Palam – Gurgaon Road, Gurgaon – 122015, Haryana, India

Tel. No.:

91-124-2341258/2341087

Fax No.:

91-124-2341188

E-Mail :

seats@vsnl.net

investor_relation@vsnl.net

 

 

Factory 2 :

Plot No. Musttil No. 226, Kila No. 7/1, Village Bhorakalan, Tehsil - Farukhnagar, Gurgaon (Haryana)

 

 

DIRECTORS

 

As on: 31.03.2012

 

Name :

Mr. N. D. Relan

Designation :

Chairman

 

 

Name :

Mr. Toshiaki Tashiro

Designation :

Director [Nominee – Suzuki Motor Corporation]

 

 

Name :

Mr. I. V. Rao

Designation :

Director [Nominee – Maruti  Suzuki  Limited]

 

 

Name :

Mr. Rohit Relan

Designation :

Managing Director

 

 

Name :

Mr. Ajay Relan

Designation :

Director

 

 

Name :

Mr. P. K. Lahiri

Designation :

Director

 

 

Name :

Mr. G. N. Mehra

Designation :

Director

 

 

Name :

Mr. Gautam Khaitan

Designation :

Director

 

 

Name :

Mr. Kishan N. Parikh

Designation :

Director

 

 

Name :

Mr. Ravindra Gupta

Designation :

Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY EXECUTIVES

 

Name :

Ms. Ritu Bakshi

Designation :

Company Secretary and Compliance Officer

 

 

SHAREHOLDING PATTERN

 

As on: 31.03.2013

 

Category of shareholder

Total Number of shares

Total shareholding as a percentage of total number of shares %

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

4958000

15.79

http://www.bseindia.com/include/images/clear.gifBodies Corporate

13693000

43.61

http://www.bseindia.com/include/images/clear.gifSub Total

18651000

59.40

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4650000

14.81

http://www.bseindia.com/include/images/clear.gifSub Total

4650000

14.81

Total shareholding of Promoter and Promoter Group (A)

23301000

74.21

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

1600

0.01

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

34000

0.11

http://www.bseindia.com/include/images/clear.gifSub Total

35600

0.11

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

670674

2.14

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

6611338

21.06

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

781388

2.49

http://www.bseindia.com/include/images/clear.gifSub Total

8063400

25.68

Total Public shareholding (B)

8099000

25.79

Total (A)+(B)

31400000

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

31400000

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and dealer of different seating systems, carpet etc.

 

 

GENERAL INFORMATION

 

Customers :
  • Maruti Udyog Limited
  • Suzuki Motorcycles Limited
  • Indian Railways
  • Hyundai Motor Industries Limited
  • Mahindra and Mahindra Limited
  • Mahindra Renault Limited
  • Mahindra International
  • Tata Motor Limited
  • General Motors
  • Samsung India Limited
  • Fleetguard Inc
  • John Deere
  • Crrier Airconditioning and Refrigeration Limited

 

 

No. of Employees :

Not Available

 

 

Bankers :
  • State Bank of Travancore
  • The Bank of Tokyo-Mitsubishi UFJ Limited
  • Yes Bank Limited
  • IDBI Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

 

 

Term loans -from banks

260.485

64.832

SHORT TERM BORROWINGS

 

 

Loan repayable on demand from banks

5.254

86.389

Buyers Credit from Bank

22.996

0.000

Total

288.735

151.221

Unsecured Loan

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

 

 

Term loans -from banks

92.330

55.694

Loan repayable on demand from related parties

60.000

0.000

Total

152.330

55.694

The requisite particulars in respect of secured borrowings are as under:

 

Particulars

As at 31 March 2012

Particulars of security / guarantees / terms of repayment / default

Term loans -from banks

 

 

- Loan from State Bank of Travancore

Balance outstanding

Current Maturity

Non - current amount

 

 

--

--

--

Particulars of Security:

Primary Security-Exclusive first charge on specific machineries / equipments, Collateral security-Extension of first charge on the entire fixed assets of the company.

 

 

Terms of Repayment:

The   loan   taken   is   a   bridge loan converted  into  FCNR(B) Term  Loan of Rs. 250,000,000 and repayable on 19.05.2011.

Rate of Interest is 12.75%

- FCNR(B) Loan from State Bank of Travancore

 

 

Loan - 1 Balance outstanding Current Maturity Non - current amount

--

--

--

Particulars of Security:

Primary Security-Hypothecation of tools and dyes with all accessories for manufacture of Carpets and seats for the Model N Car of the Maruti Suzuki India Ltd. with a projected value of Rs. 39,600,000 Collateral security-Extension of first charge on the entire fixed assets of the company.

 

 

Terms of Repayment:

The period of loan is 36 months, sanctioned on 31.07.2007, Repayable in 36 monthly installments  commencing  from the next month of the first disbursement as per the following schedule: Rs. 770000* 35 months Rs. 750000* 01 months Rate of Interest- 450 BPS above 6 months USD LIBOR. Spread and Libor to be reset at the end of every 6 months payable with monthly rests.

Loan - 2 Balance outstanding Current Maturity Non - current amount

74.280

22.509

-------------------

51.771

Particulars of Security:

Primary   Security-Exclusive   first charge on    specific    machineries    valued at Rs.    151,500,000/-    collateral security-Extension of first charge on the entire fixed assets of the company.

 

 

Terms of Repayment:

The period of loan is 5 years, sanctioned on 31.05.2010, Repayable in 60 equal monthly installments of USD 36,667.00 per month. Rate of Interest- 650 BPS above 6 months LIBOR with interest reset after 6 months from

Loan - 3

 

Particulars of Security:

 

Balance outstanding Current Maturity

Non - current amount

165.274

36.060

129.214

Primary Security-Exclusive first charge on specific machineries/ equipments valued Rs. 393,100,000/-.

Collateral security-extension of first charge on the entire fixed assets of the Company. Equitable   mortgage   on  the Company's property has been created for the balance due.

 

 

 

Terms of Repayment:

The period of loan is 5 years, sanctioned on 28.03.2011, repayable in 60 monthly installments commencing 6 months after the date of  disbursement as per following schedule:

Rs. 4167797 * 59 months

Rs. 4100000 *1 month

Concessional rate of interest at 3.75% above the base rate presently 12.75% p.a. (floating) with reset after every two years

 

Loan - 4

Balance outstanding Current Maturity

Non - current amount

 

90.000

10.500

79.500

Particulars of Security:

Primary Security- First charge on Building. Machinery, tools and dyes, purchased out of bank finance, Collateral security- extension of first charge on entire fixed assets of the company except machineries which are exclusively charged to Bank of Tokyo, second charge on machineries which are financed by Bank of Tokyo, Second charge on entire current assets of the Company, extension of EM of 4.325 acres of land with factory building at Bhorakalan registered in the name of the Company

 

Total

260.485

Terms of repayment:

Period of loan is 60 months(20 quarters) with

first installement falling due for payment in

Deecmber, 2012 as given below:

Rs. 6100000 *3 quarters

Rs. 11500000 *4 quarters

Rs. 13500000 *12 quarters

Rs. 3700000 *01 quarter

Rate of interest is 3.75% above SBT base

rate, present effective rate 14.25% p.a.

 

 

The requisite particulars in respect of unsecured borrowings are as under:

 

Particulars

As at 31 March 2012

Guarantees /

terms of repayment / default

Term loans -from banks

- Loan from Bank of Tokyo (External Commercial Borrowing)

 

 

Loan - 1

Balance outstanding Current Maturity

Non - current amount

 

63.912

18.208

45,704,508

The period of loan is 6 years, sanctioned on 15 sep. 2009, Repayable in 24 equal quarterly installments commencing from 15 Dec 2009 upto 15 Sep. 2015 amounting to Rs 73,20,833.00 each. Rate of Interest- 400 BPS p.a over 3 months JPY LIBOR.

Loan - 2

Balance outstanding Current Maturity

Non - current amount

 

45.523

8.897

36.625

The period of loan is 3.3 years (approx.), sanctioned on 19.08.2011, repayable in 24 equal quarterly installments, starting from Sept. 15 2012 upto June 15, 2018. Rate of interest-LIBOR+250 BPS

Loan from Yes Bank

Loan - 1 Balance outstanding Current Maturity Non - current amount

-

The Loan was sanctioned on 1st Sep. 2009 for 2 year period and if no event of default occurred and/ or no notice of termination has been issued by the bank and subject to Bank's discretion, the borrower shall be entitled to rollover all or any part of the principal repayable on repayment date of

Sep. 2011.

Rate of interest -13%

Loan - 2

Balance outstanding Current Maturity

Non - current amount

 

100.000

90.000

10.000

The Period of loan is 15 months, sanctioned on 24th August, 2011, repayable in 3 equal quarterly installments after a moratorium period of 06 months from the date of first disbursement.

Rate of interest is 13.60% p.a.

Loans and advances from related parties (Refer note no. 44)

 

 

- Loan From Directors

Balance outstanding Current Maturity

Non - current amount

 

60.000

---

60.000

Rate of interest is 12% p.a.

| Total

152.330

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. S. Kothari Mehta and Company

Chartered Accountant

Address :

New Delhi , India

 

 

Parties in respect of which Bharat Seats Ltd. is an Associate :
  • Maruti Suzuki India Limited
  • Suzuki Motor Corporation, Japan.
  • Sharda Motor Industries Limited

 

 

Other enterprises over which person(s) referred to in (iii) above is able to exercise significant influence :

Sharda Enterprises

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35000000

Equity Shares

Rs.2/- each

Rs.70.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

31400000

Equity Shares

Rs.10/- each

Rs.62.800 Millions

 

 

 

 

 

 

The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of payment are as under:

 

The company has only one class of equity shares having a par value of Rs. 2 per share. Each shareholder 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, except in case of interim dividend. During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to Equity Shareholders was Re. 0.80/- (31 March 2011 : Rs. 0.80). The total dividend appropriation for the year ended March 31, 2012 amounted to Rs. 29.195 Millions including corporate dividend tax of Rs 4.075 Millions.

 

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

The following hold more than 5% shares:

 

 

As at 31 March 2012

Name of Shareholder

No. of Shares held

% of Holding

Maruti Suzuki India Limited

4650000

14.81

Suzuki Motor Corporation, Japan

4650000

14.81

Sharda Motor Industries Limited

9000000

28.66

Total

18300000

58.28

 

The aforesaid Shares include 1,57,00,000 Equity shares alloted as fully paid bonus shares in the ratio of 1:1 by capitalization of General Reserve during the year ended 31st March 2008.

 

 

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

62.800

62.800

62.800

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

292.053

264.403

211.257

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

354.853

327.203

274.057

LOAN FUNDS

 

 

 

1] Secured Loans

288.735

151.221

88.995

2] Unsecured Loans

152.330

55.694

128.359

TOTAL BORROWING

441.065

206.915

217.354

DEFERRED TAX LIABILITIES

63.922

51.629

36.721

 

 

 

 

TOTAL

859.840

585.747

528.132

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

896.575

614.874

479.920

Capital work-in-progress

241.512

42.949

30.441

30.441

 

 

 

INVESTMENT

0.421

0.492

41.938

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
133.134

103.866

80.459

 

Sundry Debtors
248.699

117.534

128.888

 

Cash & Bank Balances
41.079

107.192

52.007

 

Other Current Assets
0.245

0.101

0.000

 

Loans & Advances
135.121

103.180

40.332

Total Current Assets
558.278

431.873

301.686

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
531.066

272.548

298.460

 

Other Current Liabilities
268.226

194.015

0.000

 

Provisions
37.654

37.878

27.393

Total Current Liabilities
836.946

504.441

325.853

Net Current Assets
(278.668)

(72.568)

(24.167)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

859.840

585.747

528.132

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

4320.501

4415.858

3360.628

 

 

Other Income

5.612

8.521

12.392

 

 

TOTAL                                     (A)

4326.113

4424.379

3373.020

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

3761.610

3863.121

3282.951

 

 

Purchases of Stock-in-Trade

3.989

5.429

 

 

 

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

-5.239

-3.481

 

 

 

Employee benefits expense

96.134

85.310

 

 

 

Other expenses

296.602

288.822

 

 

 

TOTAL                                     (B)

4153.096

4239.201

3282.951

 

 

 

 

 

Less

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

173.017

185.178

90.069

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

33.483

22.705

11.273

 

 

 

 

 

 

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

139.534

162.473

78.796

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

67.119

48.098

26.802

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

72.415

114.375

51.994

 

 

 

 

 

Less

TAX                                                                  (H)

15.570

32.034

13.597

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

56.845

82.341

38.397

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5.000

5.000

5.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

27.650

53.146

16.428

 

 

Dividend

25.120

25.120

18.840

 

 

Tax on Dividend

4.075

4.075

3.129

 

BALANCE CARRIED TO THE B/S

5.000

5.000

5.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

206.079

215.680

265.538

 

 

Capital Goods

65.338

13.103

96.054

 

TOTAL IMPORTS

271.417

228.783

361.592

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.81

2.62

1.22

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

31.03.2013

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

1357.300

1478.500

1616.200

15697.600

Total Expenditure

1313.400

1440.400

153.4.100

1498.300

PBIDT (Excl OI)

43.900

38.200

82.100

71.300

Other Income

00.200

03.200

00.200

09.200

Operating Profit

44.100

41.400

82.300

80.500

Interest

11.900

20.200

19.100

13.600

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

32.200

21.200

63.300

66.900

Depreciation

23.400

29.500

30.000

30.400

Profit Before Tax

08.800

(08.300)

33.300

36.400

Tax

1.500

10.200

(06.700)

11.700

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

7.300

(18.500)

40.000

24.700

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

7.300

(18.500)

40.000

243.700

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.31

1.86

1.14

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.68

2.59

1.55

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.98

10.93

6.65

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.20

0.35

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.24

0.63

0.79

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.67

0.86

0.93

 

 

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

No

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

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

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

 

 

PERFORMANCE REVIEW:

 

During the year the sale of 4 wheeler seat sets declined to 466887 seat sets, as compared to 524068 seat sets in the year ended 31st March, 2011, i.e. a decline by 11%.

 

The gross revenue from operations and other income for the financial year was Rs. 4798.263 Millions as against Rs. 4903.758 Millions for the previous financial year, i.e. a decline by 2.15%. The profit before finance costs, depreciation and taxation is Rs.139.534 Millions for the financial year as against Rs. 162.474 Millions for the previous financial year, showing decline by 14%. The profit after tax squeezed by 31%, to Rs. 56.845 Millions as compared to Rs. 82.341 Millions, last year. Besides decline in production, this decrease is due to heavy investment for capacity expansion at BSL's plant at Gurgaon and set up of new plants at Bhorakalan and Manesar, which has led to increase in bank borrowings and consequently, increase in interest cost and depreciation.

 

 

OPERATIONS:

 

The Company has been awarded business of Seat sets for first 3 row seat LUV(Life Utility Vehicle) Ertiga, launched by Maruti Suzuki India Ltd. (MSIL). For this purpose, a new Assembly line, based on Japanese model, was indigenously designed by the Company.

 

The company was also awarded business of Moulded Carpet for new model of 'Swift DZire' launched by MSIL during the year.

 

The company was awarded the business for manufacture of complete frames of the new model of two Wheeler for Suzuki Motorcycle India Private Limited (SMIPL). The Robotic technology used in welding lines has resulted in very high accuracy and good efficiency in the manufacturing of these frames.

 

The company's production of Scooter seats, the highest selling model of SMIPL, has almost doubled in the current fiscal, resulting in overall increase in sales turnover.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY REVIEW AND MACRO ECONOMY

 

The Indian economy is set to being the fastest growing major economy in the world in 2012. This is expected to result from continued high demand in India. The economy has benefited from robust domestic demand and a revival in investor and consumer sentiment although higher interest rates are expected to shave off a few basic points from the overall growth rate.

 

Indian economy stands today as one of the influential and attractive economy. India has maintained growth rate of above 5% even in times of global recession.

 

The slowdown in 2011-12 is attributable to the global factors like the slowdown in the world economy, eurozone crisis, hardening of crude oil prices in the international market and domestic factors such as decision to battle inflation by tightening monetary policy and cutting back fiscal stimulus. Headline inflation continues to remain a matter of concern.

 

The Indian automobiles industry was adversely impacted by the general economic conditions in the country and across the globe in 2012. However, healthy growth prospects and strong fundamentals of the Indian economy would drive the auto industry's growth in the year ahead.

 

The expected moderation in interest rates would also give the much needed boost to sales in the year ahead. The industry as a whole is expected to gain significantly from the various initiatives on infrastructure development and the improved road infrastructure. The automobile industry will stay stable alongwith competition-led pricing pressure.

 

The Indian auto components sector in 2013 is expected to perform well on the back of demand from OEMs(Original Equipment Manufacturers).

 

Though the sales for the whole year went down as compared to last year, still Bharat Seats Limited (BSL) was able to close the year with good sales recovery in the last quarter of the financial year: 2011-2012.

 

 

FUTURE OUTLOOK:

 

The automobiles sales is expected to increase in 2013 over 2012.

 

MSIL sold 11,33,695 vehicles in fiscal 2011-2012. The total sales in March 2012 are the highest monthly sales in the Company's history.

 

BSL is well positioned to exploit the growth opportunity. The company has acquired Land in the Vendor Park of Maruti Suzuki India Ltd, Manesar and has started construction of the building to house a complete Seat manufacturing plant. This has enabled the presence of the Company in the Vendor parks of Maruti Suzuki India Ltd in the Gurgaon unit as well as the Manesar Unit.

 

The Company has entered into another area of manufacture of extruded components for Maruti range of vehicles and is setting up its production facility at Bhorakalan in Haryana.

 

 

CONTINGENT LIABILITIES

(Rs. in Millions)

Particulars

As at 31 March 2012

(i)

Contingent Liabilities

 

(a)

Claims against the company not acknowledged as

Debt

 

 

-    Disputed Excise Matters 1

346.256

 

-    Disputed Custom Duty Matters 2

1.166

 

-    Disputed ESI Demands

--

 

-    Disputed Service Tax Demands

1.147

 

-    Disputed Income Tax Demands

3.523

 

 

352.094

 

 

 

FIXED ASSETS:

 

  • Land
  • Buildings (on leased land)
  • Plant and Equipment
  • Furniture and Fixtures
  • Vehicles
  • Office equipment
  • Electrical Fittings_

 

CMT REPORT [Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.53.95

UK Pound

1

Rs.84.03

Euro

1

Rs.70.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

RAJ

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

--DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

53

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

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

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