MIRA
INFORM REPORT
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Report Date : |
25.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SHRIRAM PISTONS AND RINGS LIMITED |
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Registered Office : |
Himalaya House, 23, Kasturba Gandhi Marg, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.12.1963 |
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Com. Reg. No.: |
4084 |
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CIN No.: [Company
Identification No.] |
L29112DL1963PLC004084 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS22096E |
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PAN No.: [Permanent
Account No.] |
AAACS0229G |
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Legal Form : |
Subject is a Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturing of Pistons, Pins, Piston Rings, Cylinder Liners and
Engine Valves. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 8200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Himalaya House, 23, Kasturba Gandhi Marg, |
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Tel. No.: |
91-11-23315941 |
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Fax No.: |
91-11-23311203 / 23725356 |
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E-Mail : |
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Website : |
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Factory 1 : |
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DIRECTORS
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Name : |
Dr. Charat Ram |
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Designation : |
Chairman |
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Name : |
Mr. Deepak Shriram |
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Designation : |
Vice Chairman and Managing Director |
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Qualification : |
PGDM & SM |
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Date of Appointment : |
January – 1972 |
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Previous
Employment : |
DCM Limited, |
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Name : |
Mr. Prem Pandhi |
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Designation : |
Deputy Chairman |
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Name : |
Mr. Sanjeev Dass |
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Designation : |
Director |
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Name : |
Mr. Pradeep Dinodia |
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Designation : |
Director |
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Name : |
Mr. L. P. Gupta |
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Designation : |
Director |
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Name : |
Mr. O. P. Khaitan |
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Designation : |
Director |
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Name : |
Mr. E. S. Kumar |
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Designation : |
Director |
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Name : |
Mr. C. Y. Pal |
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Designation : |
Director |
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Name : |
Mr. R. L. Saigal |
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Designation : |
Director |
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Name : |
Mr. M. Sekimoto |
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Designation : |
Director |
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Name : |
Mr. A. K. Taneja |
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Designation : |
Whole Time Director |
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Qualification : |
B.Tech |
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Date of Joining
: |
April - 1978 |
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Previous
Employment : |
Usha Sales Private Limited, (Deputy
Marketing Manager) |
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Name : |
Mr. R. Srinivasan |
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Designation : |
Whole-time Director and Company Secretary |
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Qualification : |
B.Com (H). LLB, AICWA.FCS |
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Date of Joining
: |
February- 1974 |
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Previous
Employment : |
Usha Sales Private. Limited, |
SHAREHOLDING PATTERN
As on 31.03.2006
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
10688612 |
47.77 |
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Banks, Financial Institutions, Insurance |
2318758 |
10.36 |
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Resident Individuals |
200511 |
0.90 |
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Non Resident Companies |
9167031 |
40.97 |
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TOTAL |
22374912 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Pistons, Pins, Piston Rings, Cylinder Liners and
Engine Valves. |
GENERAL INFORMATION
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Customers : |
· Ford · Ashok Leyland · Eicher
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No. of Employees : |
2000 |
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Bankers : |
·
UCO Bank, ·
State Bank of ·
Corporation Bank, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
J. C. Bhalla & Company Chartered Accountants |
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Memberships : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs. 10 each |
Rs. 500.000 millions |
|
3,000,000 |
Preference Shares |
Rs. 100 each |
Rs. 300.000
millions |
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Total |
|
Rs.
800.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22,374,900 |
Equity Shares |
Rs. 10/- each |
Rs. 223.749
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
223.700 |
223.700 |
223.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1838.300 |
1494.500 |
1192.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2062.000 |
1718.200 |
1416.100 |
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LOAN FUNDS |
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1] Secured Loans |
1885.800 |
1350.600 |
876.900 |
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2] Unsecured Loans |
93.000 |
110.500 |
133.900 |
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TOTAL BORROWING |
1978.800 |
1461.100 |
1010.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4040.800 |
3179.300 |
2426.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3073.700 |
2509.300 |
1915.200 |
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Capital work-in-progress |
146.000 |
157.500 |
45.900 |
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INVESTMENT |
0.500 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
588.200
|
461.600 |
376.000 |
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Sundry Debtors |
945.600
|
749.000 |
562.800 |
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Cash & Bank Balances |
146.400
|
28.100 |
101.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
234.800
|
194.600 |
214.300 |
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Total
Current Assets |
1915.000
|
1433.300 |
1254.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
953.700
|
809.600 |
684.200 |
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Provisions |
140.700
|
111.200 |
104.500 |
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Total
Current Liabilities |
1094.400
|
920.800 |
788.700 |
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Net Current Assets |
820.600
|
512.500 |
465.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4040.800 |
3179.300 |
2426.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
5429.700
|
4470.400
|
3854.500
|
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Other Income |
30.900
|
56.500
|
32.500
|
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Stock Adjustments |
72.300
|
61.900
|
35.400
|
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Total Income |
5532.900
|
4588.800
|
3922.400
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Profit/(Loss) Before Tax |
606.200
|
560.500
|
528.200
|
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Provision for Taxation |
197.400
|
194.600
|
181.500
|
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Profit/(Loss) After Tax |
408.800
|
365.900
|
346.700
|
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Expenditures : |
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Raw Materials |
1398.500
|
1147.000
|
930.700
|
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Excise Duty |
652.800
|
534.000
|
454.600
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Power & Fuel Cost |
293.000
|
223.000
|
187.500
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Other Manufacturing Expenses |
806.500
|
665.200
|
535.400
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Employee Cost |
636.500
|
531.300
|
440.000
|
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Selling and Administration
Expenses |
590.000
|
513.100
|
492.800
|
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Miscellaneous Expenses |
72.700
|
77.800
|
68.500
|
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Interest & Financial Charges
|
117.900
|
83.800
|
64.700
|
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Depreciation |
358.800
|
253.100
|
220.000
|
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Total Expenditure |
4926.700 |
4028.300 |
3394.200 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.05 |
0.94 |
0.83 |
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Long Term Debt-Equity Ratio |
1.05 |
0.94 |
0.83 |
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Current Ratio |
1.66 |
1.57 |
1.44 |
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TURNOVER RATIOS |
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Fixed Assets |
1.24 |
1.28 |
1.39 |
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Inventory |
10.34 |
10.67 |
11.74 |
|
Debtors |
6.41 |
6.82 |
7.41 |
|
Interest Cover Ratio |
6.14 |
7.69 |
9.16 |
|
Operating Profit Margin(%) |
19.94 |
20.07 |
21.09 |
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Profit Before Interest And Tax
Margin(%) |
13.34 |
14.41 |
15.38 |
|
Cash Profit Margin(%) |
14.14 |
13.85 |
14.70 |
|
Adjusted Net Profit Margin(%) |
7.53 |
8.18 |
8.99 |
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Return On Capital Employed(%) |
21.60 |
25.32 |
32.05 |
|
Return On Net Worth(%) |
25.05 |
27.96 |
34.23 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.31.55/- |
|
Low |
Rs.28.70/- |
LOCAL AGENCY FURTHER INFORMATION
It is in trade terms with :-
·
Asepack Private Limited
·
Chaudhary Forging
·
Chawla Engineering Corporation
·
G.I. Industries
·
Hindon Engineering
·
Shriram Industrade Company
·
Singh Engineering Works
·
Sunny Scientific
·
Supreme Engineering Company
·
Saurabh Udyog
·
Sunder Foundary & Engineering
·
Unico
·
Wishwanath Tools
·
Narula Metals Private Limited
·
Standard Ring Company
·
Standard Ring Private Limited
The company has technical collaborations with :
q Kolbenschmidt
Pierburg AG,
q Riken Corporation,
q Honda Foundry
Company Limited,
q Fuji Oozx Inc.,
Fixed Assets
Land
Building
plant & machinery
furniture
fixtures & equipment
vehicles
AS PER
WEBSITE
Creativity, imagination, innovation and the freedom to dream, combined
with a strong determination to succeed, this has fuelled the phenomenal growth and
dramatic progress of Shriram Pistons and Rings Ltd. (SPR).
Hence in a short span of time, the company has taken giant strides to zoom to
the forefront of the automotive ancillary field. And, all through its
action-packed years of growth, Shriram Pistons and Rings Ltd. (SPR) has
been driven by a powerful motivation, a commitment to serve auto industry in
From a modest beginning in 1972, as a factory in Ghaziabad (near Delhi), the
organization has evolved into a center of excellence, employing over 2500
employees and achieving an annual turnover of approximately Rs.3855.78
million as on 31st march 2006. Today, Shriram Pistons and Rings Ltd.
(SPR) has emerged as one of the country's largest integrated
manufacturers of Pistons, Piston Rings and Engine Valves. The
company's products are marketed under the brand names USHA and SPR, names that
are synonymous with quality and reliability.
Clearly-defined corporate beliefs and values have strengthened the
foundations of Shriram Pistons and Rings Ltd. (SPR) and given a strong thrust
to its growth. Shriram Pistons and Rings Ltd. (SPR)'s ideology comprises
a Core Purpose and Core Values.
PRODUCT
Pistons
Special Features
High Silicon Alloy Piston
Slipper Design
Double Ovality
Machined Recess
Pin Bore Bombing
Special
Facilities
Quality Automat
Centralized Coolant Chilling
On Line SPC
Single Tool Grooving
Ultrasonic Cleaning
Millipore Testing
Wiser
Surface
Treatment
Tin Coating
Graphitising
Bonderising
Hard Anodizing (Also in Ring Grooves)
Plastic Skirt Coating
40
mm to 120 mm
Piston Material
High /
Piston Rings
Ring
Material
Cast Iron
SG Iron
Steel Top Ring
(upto 5.7 sq. cm for Cr. Plated and
7.2 sq. cm for gas nitrided ring)
DVM Oil Ring (Steel) (3, 4, 5 mm Width)
Future
Technologies
(For Rings)
Moly Coating
Plasma Coating
New Material (RIK 25) for very high hardness
Special
Facilities
Dimaco Double
Discuss Grinder
Kotaoka Profile Turning M/C
Reineker Keystone Grinding M/C
40
mm to 120 mm
Special Features
Bottom Sharp Edge (Upto 0.15 mm)
Differential Keystone Angle
Asymmetrically Barrel Ground
Double
Measuring
Instruments
OD Profile Measurement
Barrel Height and Taper Angle
Sharp Edge
Contourograph
Surface Roughness Tester
Micro Hardness Tester
Keystone Height Measurement
Spectrometer
Surface
Treatment
Chrome Plating
GN Treatment (For Steel and DVM Rings)
Parkerising (Zinc and Manganese)
Engine Valves
Types
Single Metal
Bi-Metallic
Seat Hard Faced
Tip Hardfaced
Chip Hardfaced
Chip (Wafer) Welded
Tip Hardened
Seat Hardened
Special
Facilities
Upset Forging
Plasma Powder Welding
Friction Welding for Bimetallic Valves
Heat Treatment Fluidized Bed Heat
Treatment Process
CNC Line and special purpose turning lathes
Groove Turning and Grinding Both Possible
Tip Seat Hardening by Induction Welding
Chip Welding by Fully Automated Projection
Welder
Circular Chrome Plating
Tufftriding
Surface
Treatment
Chrome Flashed
Thick Chrome Plated
Tufftrided
Largest Valve
Head Dia - 70.0 mm
Stem Dia - 12.0 mm
Smallest Valve
Head Dia – 19.0 mm
Stem Dia - 5.0 mm
Exports
Another testimony of their quality is that Shriram
Pistons and Rings Ltd. (SPR)'s
products are exported to over
40 countries across
the world. Their achievements include growth in exports
by
400% in the last five years, and maintaining an Export
House Status for the last four years.
Once again, the
Government of
Aftermarket
Reaching out to
the end customer is fast becoming a foundation of the business and the real test
of a product's and brand's acceptance lies in repeat demand
from the actual consumers and end-customers.
Subject has successfully met
this challenge of creating brand
awareness and brand loyalty through a
clearly-defined and well-structured marketing and sales set-up. A strong
network of sales offices, distributors and dealers across the length and
breadth of the country form a powerful
infrastructure that is geared to sell the
products as replacement parts to automotive workshops, repair shops and service
stations.
The Shriram Pistons and Rings Ltd. (SPR) setup comprises
of:
Head Office (HO) -
Regional Sales Offices (RSO) -
Company
Warehouses / Godowns - 15
Main
Distributors -
23
Town
Distributors -
500 (approx)
Town Distris - 500
Authorised Dealers - 5000 (approx)
Sales force based at all RSO towns, State capitals, Major
towns (covering each and every territory all over India/Nepal) catering to after Market, State Transport Undertakings (STUs),
OEMs in:
Heavy Commercial Vehicle (HCV)
Light / Multi Utility Vehicle (LCV/MUV)
Tractors (TR)
Cars
Motor Cycles, Scooters, 3-wheelers
Generators, Compressors
Stationary Diesel/Agricultural Engines and
Marine Applications
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 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.40.27 |
|
|
1 |
Rs.82.53 |
|
Euro |
1 |
Rs.55.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
TOTAL |
|
67 |
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 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|