MIRA INFORM REPORT
|
Report No. : |
313861 |
|
Report Date : |
25.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUMITOMO CORPORATION INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
4th Floor, DLF Centre, Sansad Marg, New Delhi – 110001 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
15.01.1997 |
|
|
|
|
Com. Reg. No.: |
55-084471 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.376.560 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U51909DL1997PTC084471 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELS11089B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS1887M |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
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|
|
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Line of Business
: |
Manufacturer, exporter, importer and dealer of steel engineering
fuels, metals, machinery, plant, food, chemicals, textiles,
telecommunications, software, power and electronic components. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
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|
|
|
Litigation : |
Exist |
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|
|
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Comments : |
Subject is a subsidiary of “SUMITOMO CORPORATION ASIA PTE LIMITED, SINGAPORE”.
It is an established company having satisfactory track record. As per registrar of companies the date of balance sheet (i.e.
financial file) is shown as 31.03.2014 but the document related to the
financial for the 2014 are available from any source. As per previous financial record of 2013, the rating takes into
consideration company’s sound financial risk profile and decent liquidity
position of the company. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The company can be considered 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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
Not Available
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
31-03-2014.
LOCATIONS
|
Registered Office : |
4th Floor, DLF Centre, Sansad Marg, New Delhi – 110001,
India |
|
Tel. No. : |
91-11-23737181 |
|
Fax No. : |
91-11-23737111 |
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E-Mail : |
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|
Website : |
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Mumbai Office : |
RNA Corporate Park, 2nd Floor, Sant Gyaneshwar Marg, Bandra
East, Mumbai – 400051, India |
|
Tel. No. : |
91-22-26561700 |
|
Fax No. : |
91-22-26561999 |
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|
|
|
Chennai Office : |
1st Floor, Gee Gee Universal, No. 2, Mc Nichols Road,
Chetpet, Chennai – 600031, Tamilnadu, India |
|
Tel. No. : |
91-44-42849837 |
|
Fax No. : |
91-44-42849248 |
|
|
|
|
Warehouse : |
Plot No. 129/C/2, G.I.D.C. Estate, Ankleshwar, District Bharuch –
393002, Gujarat, India |
|
Location : |
Rented |
DIRECTORS
AS ON 08.09.2014
|
Name : |
Katsuya Okihiro |
|
Designation : |
Managing director |
|
Address : |
H. No. 21, First Floor, Rajdoot Marg, Chanakyapuri, New Delhi –
110021, India |
|
Date of Birth/Age : |
28.09.1959 |
|
Date of Appointment : |
19.10.2011 |
|
PAN No.: |
ABCPO5873G |
|
DIN No. : |
05115075 |
|
|
|
|
Name : |
Pankaj Bajaj |
|
Designation : |
Whole-time Director |
|
Address : |
AB-45, Mianwali Nagar, Paschim Vihar, Rohtak Road, New Delhi – 110087,
India |
|
Date of Birth/Age : |
07.12.1971 |
|
Date of Appointment : |
06.09.2010 |
|
PAN No.: |
ADEPB6052E |
|
DIN No. : |
00337925 |
|
|
|
|
Name : |
Tsutomu Hashimoto |
|
Designation : |
Whole-time Director |
|
Address : |
No. 64, 2nd Floor,, Poes Garden, Chennai – 600086, Tamilnadu, India |
|
Date of Birth/Age : |
10.02.1959 |
|
Date of Appointment : |
22.08.2014 |
|
DIN No.: |
00795276 |
|
|
|
|
Name : |
Shinobu Nakada |
|
Designation : |
Whole-time Director |
|
Address : |
B-2/15, Vasant Vihar, New Delhi – 110057, India |
|
Date of Birth/Age : |
01.10.1967 |
|
Date of Appointment : |
22.01.2014 |
|
DIN No.: |
06788516 |
|
|
|
|
Name : |
Iwao Wakabayashi |
|
Designation : |
Whole-time Director |
|
Address : |
Flat No.2701, Tower A, Beau Monde, Appasaheb Marathe Marg, Prabhadevi,
Mumbai – 400025, Maharashtra, India |
|
Date of Birth/Age : |
07.10.1959 |
|
Date of Appointment : |
22.08.2014 |
|
DIN No.: |
06870023 |
|
|
|
|
Name : |
Mitsutaka Yasuda |
|
Designation : |
Whole-time Director |
|
Address : |
E 6/3, First Floor, Vasant Vihar, Delhi – 110057, India |
|
Date of Birth/Age : |
25.09.1971 |
|
Date of Appointment : |
22.08.2014 |
|
DIN No.: |
06954896 |
|
|
|
|
Name : |
Masahiro Maruyama |
|
Designation : |
Whole-time director |
|
Address : |
E-6/3, 1st Floor, Vasant Vihar, New Delhi – 110057, India |
|
Date of Birth/Age : |
02.03.1976 |
|
Date of Appointment : |
06.09.2010 |
|
PAN No.: |
BGRPM4383G |
|
DIN No. : |
03229925 |
KEY EXECUTIVES
|
Name : |
Pankaj Bajaj |
|
Designation : |
Secretary |
|
Address : |
AB-45, Mianwali Nagar, Paschim Vihar, Rohtak Road, New Delhi – 110087,
India |
|
Date of Birth/Age : |
07.12.1971 |
|
Date of Appointment : |
06.05.1997 |
|
PAN No.: |
ADEPB6052E |
MAJOR SHAREHOLDERS
AS ON 08.09.2014
|
Names of Shareholders |
|
No. of Shares |
|
Sumitomo Corporation Asia Pte Limited, Singapore |
|
37655996 |
|
Summit Global Management II BV, Netherland |
|
2 |
|
|
|
|
|
Total |
|
37655998 |
Equity Share Break up (Percentage of Total Equity)
AS ON 08.09.2014
|
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 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, exporter, importer and dealer of steel engineering fuels,
metals, machinery, plant, food, chemicals, textiles, telecommunications,
software, power and electronic components. |
|
|
|
|
Products : |
·
Steel Engineering Fuels ·
Metals ·
Machinery ·
Plant, Food ·
Chemicals ·
Textiles ·
Telecommunications ·
Software ·
Power Components ·
Electronic Components |
|
|
|
|
Brand Names : |
Not Available |
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|
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|
Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
B S R and Company Chartered Accountants |
|
Address : |
Building No. 10, 8th Floor, Tower-B, DLF Cyber City, Phase - II, Gurgaon – 122002, Haryana, India |
|
PAN
No. : |
AAIFB0630K |
|
|
|
|
Membership : |
-- |
|
|
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Ultimate holding
company : |
· Sumitomo Corporation, Japan |
|
|
|
|
Holding company : |
· Sumitomo Corporation Asia Pte Limited., Singapore |
|
|
|
|
Fellow Subsidiaries
: |
· Sumitomo Shoji Chemicals Company Limited · SC Global Tubular Solutions, LLC · Interacid S.A. · Tortoise Company Limited · Asian Steel Company Limited · SC Foods Company Limited · SC Machinery and Services Company Limited · Sumitomo Corporation Kyushu Company Limited · Sumitomo Corporation Thailand Limited · Sumitomo Corporation Taiwan Limited · Sumitomo Shoji Machinex Company Limited · Sumisho Machinery Trade Corporation Limited · Sumisho Metalex Corporation · Summit Agro International Limited · Sumitomo Corporation Do Brasil S.A. · Sumitomo Corporation of America · Sumitex International Company Limited · Summit Pharma Europe S.P.A. · Summit Pharmaceuticals Europe Limited. Spain · Summit Pharmaceuticals Europe Limited., London · Summit Pharmaceuticals Europe, Limited, Barcelona · Summit Pharmaceuticals Europe, Limited, Milan · Summit Pharmaceuticals International Corporation · Sumitomo Corporation (Shanghai) Limited · SC Cement Company Limited · Summit D and V Limited · Summit CRM Limited · Sumitomo Corporation Guangzhou Limited · Sumitomo Corporation Korea Company Limited · Sumur Chaya Sdn. Bhd. · India Steel Summit Private Limited |
|
|
|
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Joint Ventures : |
· J. J. Impex (Delhi) Private Limited · Munjal Kiriu Industries Private Limited |
CAPITAL STRUCTURE
AS ON 08.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43000000 |
Equity Shares |
Rs.10/- each |
Rs.430.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
37655998 |
Equity Shares |
Rs.10/- each |
Rs.376.560 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
376.560 |
316.560 |
316.560 |
|
(b) Reserves & Surplus |
1031.480 |
653.202 |
555.158 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
1408.040 |
969.762 |
871.718 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
4.791 |
4.791 |
|
(d) long-term
provisions |
35.603 |
25.052 |
16.457 |
|
Total Non-current
Liabilities (3) |
35.603 |
29.843 |
21.248 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
430.202 |
244.794 |
113.710 |
|
(c) Other
current liabilities |
48.354 |
26.793 |
32.982 |
|
(d) Short-term
provisions |
17.921 |
10.357 |
19.752 |
|
Total Current
Liabilities (4) |
496.477 |
281.944 |
166.444 |
|
|
|
|
|
|
TOTAL |
1940.120 |
1281.549 |
1059.410 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
54.666 |
61.211 |
52.742 |
|
(ii)
Intangible Assets |
5.068 |
11.018 |
17.017 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
121.895 |
112.968 |
100.892 |
|
(c) Deferred tax assets (net) |
29.778 |
23.333 |
15.014 |
|
(d) Long-term Loan and Advances |
243.196 |
118.648 |
121.877 |
|
(e) Other
Non-current assets |
0.014 |
0.013 |
2.590 |
|
Total Non-Current
Assets |
454.617 |
327.191 |
310.132 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
141.569 |
48.415 |
31.153 |
|
(c) Trade
receivables |
476.874 |
339.056 |
208.412 |
|
(d) Cash
and cash equivalents |
808.640 |
517.914 |
465.708 |
|
(e)
Short-term loans and advances |
49.791 |
33.198 |
26.766 |
|
(f) Other
current assets |
8.629 |
15.775 |
17.239 |
|
Total
Current Assets |
1485.503 |
954.358 |
749.278 |
|
|
|
|
|
|
TOTAL |
1940.120 |
1281.549 |
1059.410 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
|
|
269.161 |
|
|
|
Commission Income |
|
|
582.398 |
|
|
|
Other Income |
|
|
28.243 |
|
|
|
TOTAL |
2320.000 |
1440.000 |
879.802 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
2090.810 |
1252.716 |
752.154 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
229.190 |
187.284 |
127.648 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
22.457 |
32.840 |
35.051 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
206.733 |
154.444 |
92.597 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
68.455 |
56.400 |
36.957 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
138.278 |
98.044 |
55.640 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.67 |
2.60 |
1.48 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Return on Total Assets (PBT/Total Assets) |
(%) |
11.56 |
13.49 |
9.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.16 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.99 |
3.38 |
4.50 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
316.560 |
316.560 |
376.560 |
|
Reserves & Surplus |
555.158 |
653.202 |
1031.480 |
|
Net
worth |
871.718 |
969.762 |
1408.040 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Total
Income |
879.802 |
1440.000 |
2320.000 |
|
|
|
63.673 |
61.111 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Total
Income |
879.802 |
1440.000 |
2320.000 |
|
Profit |
55.640 |
98.044 |
138.278 |
|
|
6.32% |
6.81% |
5.96% |
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 |
Yes |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
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 |
No |
|
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 |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
LITIGATION DETAILS:
|
IN THE HIGH
COURT OF DELHI AT NEW DELHI
|
NO CHARGES EXIST FOR COMPANY
FINANCIAL
REVIEW
The total revenue
of the Company increased by around 61% in the financial year ended 31 March
2013 to Rs. 2320.000 Million as against Rs.1440.000 Million in the previous financial
year. This is primarily on account on increase in chemicals and metal products
business. Commission income has increased by around 28% in the financial year
ended 31 March 2013 to Rs. 660.000 Million as against to Rs. 540.000 Million in
the previous year. Other income has decreased by around 10.3% in year ended 31
March 2013 to Rs. 41.700 Million as against Rs. 46.500 Million in the previous
financial year. Other income includes interest on deposits which for the
financial year ended 31 March 2013 was Rs. 40.200 Million as against Rs. 40.300
Million in the previous financial year. There was exchange loss of Rs. 23.420
Million during the current financial year ended 31 March 2013 as against
exchange gain of Rs. 4.340 Million during the previous year. On an overall, the
net profit of the Company has increased by around 41% in the year ended 31
March 2013 to Rs 138.000 Million as compared to Rs. 98.000 Million in the
previous year.
There has been a
slow growth in the economy during financial year 2012-13 and future outlook
continues to remain a bit pessimistic due to slowdown in domestic growth,
prevailing inflation and current account deficit situation and continued
negative growth in the euro area.
The Company along
with Sumitomo group companies is exploring opportunities for investment and
proposes to co-invest along with other Sumitomo group companies if a suitable
and good opportunity is available in India. In order to meet the funding
requirement for such prospective downstream investments, the Board decided to
raise funds by offering, on preferential basis, 60 lakh equity shares of Rs.
10/- each at a premium of Rs. 40/- per equity share for a total amount of Rs.
300.000 Million to Sumitomo Corporation Asia Pte Limited (i.e. its existing
principal shareholder) and the offer was fully subscribed and shares were
issued thereof.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
GLOBAL BUSINESS
ENVIRONMENT AND ECONOMIC OVERVIEW:
The World Bank,
Credit Analysis and Research Limited and Dun and Bradstreet have presented a
broadly similar outlook for 2013.
Global economic
prospects for 2013 continue to remain downbeat as uncertainty and
vulnerabilities of economies towards financial stress, real economy constraints
and uneven recovery continue to persist with a global economic recovery proving
harder to come by than originally anticipated.
The global economy
is transitioning into what is likely to be a smoother and less volatile period.
For high-income countries, growth in 2013 is projected to be a modest 1.2%. However,
for high-income countries, broadly, conditions have improved. Financial market
risk indicators have all improved significantly. However, fiscal consolidation,
high unemployment and still weak consumer and business confidence will continue
to dampen growth this year. Whilst such challenges faced by high-income
countries shall continue to persist, the likelihood that these challenges will
provoke a major crisis has declined markedly.
Despite this
modest growth in high income countries, real-side activity remains sluggish in
Europe, where it is being held back by weak confidence and continued banking
sector and fiscal restructuring. The Euro Area is now estimated to contract by
0.6% in 2013. The European Central Bank introduced a thus far unused sovereign
bond buying scheme to buy debt from countries that request bailout funds. Also,
25 countries joined a fiscal pact giving Brussels the power to review national
budgets, expand the European Financial Stability Facility (effectively a
firewall for indebted sovereign governments) and European Stability Mechanism
(to help recapitalize private sector banks) and begin discussions on a possible
European banking union. While these moves have sustained the Euro zone in the
short term, more needs to be done to stop a Greek exit. Meanwhile, national
governments introduced austerity measures to reduce burgeoning fiscal deficits
and public sector debt levels, a development that has additionally impacted
short-term growth prospects.
The recovery is on
more solid ground in the United States, where a fairly robust private sector
recovery is being held back, but not extinguished by fiscal tightening. The
corporate sector is now in its strongest financial health in years, balance
sheets have been rebuilt owing to the completion of deleveraging programs,
payment performance is improving, and bankruptcies are declining. Meanwhile, in
Japan, a dramatic relaxation of macroeconomic policy appears to have sparked an
uptick in activity, at least over the short-term.
The story for developing
countries is, for the most part, rosier. Developing economies have more or less
completely recovered from the 2008 crisis and less volatile external conditions
are expected to yield a gradual acceleration of activity in developing regions.
Developing country gross domestic product is now projected to be around 5.1% in
2013. Looking at broader region-wide trends, East Asia is expected to grow by
7.3% this year; developing Europe and Central Asia by 2.8%; Latin America by
3.3%; Middle East and North Africa by 2.5%; South Asia by 5.2% and Sub-Saharan
Africa by 4.9%. However, developing countries are not a homogenous group, and
policy prescriptions may need to be tailored accordingly.
The economic challenges
thrown up in the past few years have been more prolonged and challenging than
any such previous challenges in the last century. A unique set of challenges
and opportunities await economies in future, some of which include:
a) Fiscal
challenges being faced in European Union and United States;
b) Deregulation
and rebalancing in key sectors of developing economies;
c) The uncertain
longer term effects of new monetary policies being employed to meet current
economic challenges;
d) Commodity price
uncertainty (including oil prices); and
e) Food inflation.
INDIAN BUSINESS ENVIRONMENT AND ECONOMIC OVERVIEW:
The Economic
Advisory Council to the Prime Minister of India and the World Bank have
presented a broadly similar outlook for 2013 in relation to India.
Growth and, more
particularly, industrial growth has slowed. Overall economic growth is expected
to rise to 6.4% in 2013-14 and India is likely to remain one of the faster
growing nations in the world, although the expected pace takes a step back from
the very high growth rates achieved in the late 2000s.
Investment and
savings rates have come down but economic growth has declined more steeply than
what is warranted by the decline in investment. The main reason for this is
that while capital assets have been formed, counterpart output has not flowed
into the economy. Capital accumulated in projects is not yielding commensurate
output, as the implementation of projects has slowed. Policy and administrative
actions such as the recently constituted cabinet committee on investment may
help to overcome obstacles in the speedy execution of projects but more needs
to be done in the coming months so that new investment can be facilitated. In
the current context, achieving the production and capacity creation targets in
the key infrastructure sectors such as coal, power, roads, railways and ports,
which are largely in the public sector or public private partnership model,
will act as a great stimulus to private investment and faster growth.
Weak exports, elevated
imports, and a significant depreciation of the rupee in the first half of 2013
have widened the current account deficit to a record high, although recent data
points to some narrowing of the trade gap. Current Account Deficit is estimated
to be USD 94 billion (5.1% of gross domestic product) in 2012-13 and is
projected to be USD 100 billion (4.7% of gross domestic product) in 2013-14.
Specific mention needs to be made of the close link between India’s dependence
on imports of oil and natural gas and its current account deficit. Hence, steps
should be taken to improve the energy economy in all aspects i.e. production,
transformation and final use. Facilitating an increase in domestic coal
production will make a substantial difference. The conditions for exploration
and production of hydrocarbons must be improved to increase domestic supply.
While in the short run, actions that are necessary to encourage capital flows
need to be taken, over the medium term, India must bring down the current
account deficit to moderate levels.
Inflation
continues to remain high, but there are definite signs that headline WPI
inflation is coming down. The provisional figure for inflation at the end of
2012-13 is 5.96%. In 2013-14, the headline WPI inflation is expected to be
around 6.0 %, with primary food inflation around 8%, fuel at about 11% and
manufactured goods at around 4%. Non-food manufacturing inflation remains
around the comfort zone. Further, owing to such inflationary conditions
prevailing in the Indian economy, the Reserve Bank of India has had to strike a
tough balance between providing some monetary stimulus and restraining further
price growth.
The fiscal deficit
of India for 2012-13 is estimated to be 5.2% of gross domestic product. Fiscal
performance by the states has largely followed the adjustment path recommended
by the 13th Finance Commission and, although the India’s deficit
remains elevated, policy actions to reduce fuel subsidies and the recently
presented in FY2014 Union Budget have reaffirmed the Indian government’s
commitment to fiscal consolidation. The next decade will be a crucial decade
for India. If India grows at 8 to 9% per annum, it is projected to graduate to
the level of a middle income country by 2025.
BUSINESS SEGMENT REVIEW:
TRANSPORTATION AND
CONSTRUCTION SYSTEMS:
AUTOMOTIVE:
In 2012, the
Indian automobiles industry witnessed a moderation in demand after the
double-digit growth in sales recorded in the preceding three years. Weak macroeconomic
sentiment coupled with subdued consumer confidence pulled down sales,
particularly in the latter half of the year. Domestic automobile sales grew by
6.6% in 2012 (Jan-Nov), as compared to growth of 14-31% during 2009-2011.
Whilst typically India is seen as an emerging export hub for sports utility
vehicles and compact cars to Europe, South Africa and Southeast Asia due to its
cost competitive manufacturing practices, in view of the current macro
environment, both domestically and globally, vehicle exports are witnessing a
downhill drive since mid-2012. As a result, achieving high growth rates and
vehicle exports is likely to be a major challenge for the industry in 2013.
AUTOMOTIVE COMPONENTS:
As is the case
with automotive sector, the automotive components sector in India is currently
facing its most formidable challenge i.e. slowing demand and that too across
the board.
Till 2011-12, the
automotive components manufacturers were grappling with a rising cost structure
arising from volatile currency movements, firm interest rates and inflation in
other overheads including employee costs and power costs. However, since raw
material cost environment was relatively benign, it allowed automotive
components manufacturers to have one less worrisome variable to contend with.
While there has been no significant change in character of any of the above
forces during 2012-13, the biggest trepidation for automotive components makers
currently springs from tepid automobile demand, dreaded to remain weak even in
the near term. Decline in revenues (on YoY basis) has significantly hurt both
profits as well as margins of automotive components manufacturers.
On the exports
front, automotive components supplies to Europe had already been witnessing
sluggish growth over the last few years, but steady expansion in demand for
light vehicles and commercial vehicles in North America was adequately
offsetting the overall exports weakness. However, starting Q2 2012-13,
automotive components exports to USA also have declined significantly,
particularly related to parts meant for commercial vehicles applications due to
sharp contraction in demand. Automotive components suppliers to the domestic
replacement market have also been experiencing moderation in growth, but this segment,
typically, has been relatively more resilient if not fully immune.
CONSTRUCTION EQUIPMENT:
The Construction
equipment sector in India is expected to witness dynamic growth in the near
future owing to government investments in infrastructure coupled with growing
real estate sector.
Robust economic
development coupled with growth in infrastructure stimulates the demand for
more construction equipment’s across the country.
Expansion in
mining sector is one the major factors influencing the growth of the
construction equipment market. Growing presence of original equipment
manufacturers in India provides a major opportunity for market growth. Foreign
direct investment inflow in construction has also facilitated the market to
grow further.
Further initiatives
to promote infrastructure construction and manufacturing sector policies will
have a favorable impact on the market for construction equipment’s.
In view of the
increasing focus of automotive and automotive components manufacturers towards
India, the Company is making enhanced efforts to promote and develop this
segment further. The Company realizing long term benefits that can be realized
from this segment, has been supporting SC group in managing an automotive
component manufacturing company named Munjal Kiriu Industries, a joint venture
company between Hero Group, Kiriu Corporation Japan, SC, Japan and SC India. In
addition, the Company has been strongly supporting investment initiatives of SC
Japan in its joint venture with Kubota Japan to promote sales of Kubota
tractors and farm equipment’s in India. The Company has also supported SC
Japan’s initiatives in relation to its light commercial vehicles manufacturer -
SML Isuzu and has managed important issues related thereto. The Company also continues
to support J J Impex (Delhi) a joint venture company between Maruti Suzuki
India, SC Japan and SC India. Finally, the Company is exploring trading and
investment opportunities in this sector and company is hopeful that it would be
able to enhance its presence in this sector.
FUTURE OUTLOOK:
The Company is looking forward and seeking opportunities to grow business and volumes. Regional business reorganization and more coordination between subsidiaries of Sumitomo Corporation Asia Pte Ltd is anticipated to increase intra-regional business activity amongst SC subsidiaries. In addition there is an increasing interest of Sumitomo Corporation, Japan to promote business in India and in this regard India has been identified as a focused area. The Company is making effort to increase spectrum of its business operations and has been able to create new opportunities.
The Company believes that it would be able to grow its operations on account of increasing interest of global as well as other Japanese corporations in India. Further, the company has invested certain amounts of money in downstream ventures and is contemplating some more (subject to viability) and exploring opportunities for expanding trading transactions on principal basis.
The company is looking forward to promoting business relationship amongst South Asian region countries and expansion of business relationship between group companies located in this region. The company is also contemplating to undertake a wider perspective of services, which would allow it to be more economic and efficient and also provide for value addition to its services.
The company believes that it would be able to play a major role in supporting Sumitomo Corporation and its business associates in expanding their business horizon within India and in the process would be able to enrich its business portfolio with more value added functions and a stronger bottom line.
FIXED ASSETS
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Computer Equipments
· Leasehold Improvements
· Refrigerators
· Mobile Phones
· Air Conditioners
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.62.20 |
|
|
1 |
Rs.92.93 |
|
Euro |
1 |
Rs.68.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
48 |
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.