MIRA INFORM REPORT
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Report
Date : |
26th
October, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
SYNERGIES CASTINGS LIMITED |
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Formerly
Known As : |
SYNERGIES DOORAY AUTOMOTIVE LIMITED |
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Registered
Office : |
6-3-609/189, Anand Nagar, Khairtabad, Hyderabad – 530004, Andhra
Pradesh, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
14.06.1995 |
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Com.
Reg. No.: |
01-45171 |
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CIN
No.: [Company Identification No.] |
U27310AP2005PLC045171 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
VPNS04027C |
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PAN
No.: [Permanent
Account No.] |
AAICS7410H |
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Legal
Form : |
Closely Held Public Limited Liability Company |
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Line
of Business : |
Manufacture of Aluminium Alloy Wheels and Auto Parts. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
1000000 |
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Status
: |
Satisfactory |
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a newly established company having satisfactory track. Trade relations are
fair. Payments are usually correct and as per commitments. The company can be
considered normal for business dealings at usual trade terms and condition. |
LOCATIONS
|
Registered
Office : |
6-3-609/189, Anand Nagar, Khairtabad, Hyderabad – 530004,
Andhra Pradesh, India |
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Tel.
No.: |
91-891-2587181 |
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Fax
No.: |
91-891-2587481 |
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E-Mail
: |
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Website
: |
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Head
Office : |
9-19-4,
CBM Compound, Vishakhapatnam, Andhra Pradesh. |
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Corporate
Office : |
Plot 3
& 4, Vishakhapatnam Export Processing Zone, Duvvada – 533 046, Andhra
Pradesh, India |
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Tel.
No.: |
91-891-2587181 |
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Fax
No.: |
91-891-2587481 |
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Plants
: |
Alloy wheel plant
Plot 3
& 4, Vishakhapatnam Export Processing Zone, Duvvada – 533 046, Andhra
Pradesh, India Tel. No.
91-891-2587181 Fax No.
91-891-2587481 E-Mail: synergies_dooray@yahoo.com Website: http://www.synergies-india.com
Chrome plant
Plot No.
E1 and E2 VSP Export Processing Zone, Duvvada, Visakhapatnam – 530046, India |
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Branches
: |
6-3-609-189,
Anand Nagar, Khairatabad, Hyderabad, Andhra Pradesh |
DIRECTORS
|
Name : |
Mr.
Kieran Francis O Connnor |
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Designation
: |
Chairman |
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Name : |
Mr.
Chandra Shekhar Movva |
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Designation
: |
Managing Director |
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Name : |
Dr. S. Vijay Kumar |
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Designation
: |
Director |
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Name : |
Dr. Prasad Rao Ravella |
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Designation
: |
Director |
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Name : |
Mr. S.V.Jagannath |
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Designation
: |
Nominee of ICICI Bank |
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Name : |
Mr. R.M.Gantra |
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Designation
: |
Nominee of IDBI Bank |
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Name : |
Mr. R. Venkateswaran |
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Designation
: |
Nominee of Exim Bank |
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Name : |
Mr. Manoj Khaitan |
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Designation
: |
Executive Director |
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Name : |
Mr. A.V.R.Narayana Rao |
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Designation
: |
Executive Director |
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Name : |
Mr. Christian Kumar |
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Designation
: |
Director |
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Name : |
Mr. Anand Bodapatty |
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Designation
: |
Director |
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Name : |
Mr. P Panduranga Rao |
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Designation
: |
Director |
BUSINESS DETAILS
|
Line of
Business : |
Manufacture of Aluminium Alloy Wheels and Auto Parts. |
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Products
: |
¯ Aluminium Alloy Wheels ¯ Auto Parts |
GENERAL INFORMATION
|
No. of
Employees : |
200 |
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Bankers
: |
v
ICICI
Bank v
State
Bank of India v
Andhra
Bank v
Indian
Overseas Bank v
IDBI
Bank |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Price
Water House Chartered
Accountants |
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Address
: |
6-3-550,
II Floor, LB Bhavan, Somajiguda,
Hyderabad – 400082 Andhra
Pradesh |
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Associates/Subsidiaries
: |
v
USA
Synergies America Inc 12257, Florence Avenue, Santa Fe Springs CA 90670 USA. v
Europe
Synergies Europa Gmbh, Johann Klein Strasse 22, 67227 Frankenthal Germany v
India
Stellar Wheels Limited, 6-3-609/189 Anand Nagar, Khairtabad, Hyderabad,
Andhra Pradesh |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
7,00,00,000 |
Equity Shares |
Rs.
10/- |
Rs.
700.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
16440000 |
Equity Shares |
Rs.
10/- |
Rs.
164.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS
FUNDS |
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1] Share
Capital |
|
164.400 |
0.500 |
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2]
Reserves & Surplus |
|
111.600 |
0.100 |
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NETWORTH
|
|
276.000 |
0.600 |
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LOAN
FUNDS |
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1]
Secured Loans |
|
136.300 |
0.000 |
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2]
Unsecured Loans |
|
42.200 |
0.000 |
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TOTAL
BORROWING
|
|
178.500 |
0.000 |
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TOTAL
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454.500 |
0.600 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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14.700 |
0.000 |
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Capital work-in-progress
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|
0.000 |
0.000 |
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INVESTMENT
|
|
50.100 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
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262.400 |
0.000 |
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Sundry Debtors
|
|
147.500 |
0.200 |
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Cash & Bank Balances
|
|
8.500 |
0.300 |
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Loans & Advances
|
|
39.400 |
2.500 |
Total Current Assets
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|
457.800 |
3.000 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities & Provisions
|
|
103.100 |
2.800 |
Total Current Liabilities
|
|
103.100 |
2.800 |
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Net
Current Assets
|
|
354.700 |
0.200 |
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MISCELLANEOUS EXPENSES
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|
35.000 |
0.400 |
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TOTAL
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454.500 |
0.600 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
|
541.800 |
0.200 |
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Profit/(Loss) Before Tax
|
|
22.400 |
0.200 |
Provision for Taxation
|
|
0.700 |
0.100 |
Profit/(Loss) After Tax
|
|
21.700 |
0.100 |
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Total Expenditure
|
|
512.500 |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
|
0.65 |
0.00 |
|
Long Term Debt Equity Ratio |
|
0.65 |
0.00 |
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Current Ratio |
|
4.35 |
1.07 |
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TURNOVER RATIOS |
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Fixed Assets |
|
53.52 |
0.00 |
|
Inventory |
|
3.00 |
0.00 |
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Debtors |
|
5.33 |
0.00 |
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Interest Cover Ratio |
|
4.25 |
0.00 |
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Operating Profit Margin (%) |
|
7.45 |
0.00 |
|
Profit Before Interest and Tax Margin (%) |
|
7.45 |
0.00 |
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Cash Profit Margin (%) |
|
5.52 |
0.00 |
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Adjusted Net Profit Margin (%) |
|
5.52 |
0.00 |
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Return on Capital Employed (%) |
|
13.96 |
100.00 |
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Return on Net Worth (%) |
|
15.40 |
16.67 |
LOCAL AGENCY FURTHER INFORMATION
The
company’s production started on 17.04.1998.
BUSINESS
Subject is
engaged in the business as manufacturers of Aluminium Alloy Wheels and Auto
Parts.
The company
has set up an Export Oriented Unit in collaboration with Dooray Corporation,
Seoul (13.20 millions Equity) for the manufacture of Aluminium Alloy Wheels and
Auto Parts with an installed capacity of 670,000 wheels.
Generic
Names of the Principal Products of the company are:
v
Aluminium
Alloy Steel
Operations
The global
macroeconomic changes significantly impact the company since it is oriented
towards a protection free international market. In addition the automobile
industry is always significantly impacted in times of sever recession as in the
case of US markets during the past six quarters. The events of September 11
only exacerbated an already poor retail sentiment for durables such as
motorcars. The fierce price was between major automakers and various cost
intensive promotional ideas only aggravated the situation. The company too has
been impacted by this phenomenon. This resulted in lower sales in the US market
and consequently sub optimal capacity.
MEMBERSHIPS
v
Confederation
of Indian Industry
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
records 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 records 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. 45.02 |
|
UK Pound |
1 |
Rs. 85.56 |
|
Euro |
1 |
Rs. 57.24 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
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 |
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 |
|
45 |
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 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |