MIRA
INFORM REPORT
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Report Date : |
19.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SUPREME INDUSTRIES LIMITED |
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Registered Office : |
612, Raheja Chambers Nariman point, Mumbai;400021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
17.02.1942 |
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Com. Reg. No.: |
11-003554 |
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CIN No.: [Company
Identification No.] |
L35920MH1942PLC003554 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT01228D |
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Legal Form : |
Public Limited Liability Company. The shares of the company are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of PVC Pipes & Fittings, Material Handling Crates and Plastic Moulded Chairs. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
RATING
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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 8000000 |
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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 of Supreme Group, controlled and managed by Taparia’s. The company’s shares are listed on the Stock Exchanges. Available information indicates high financial responsibility of the company. Financial position of the company is good. 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 : |
612, Raheja Chambers, Nariman Point, Mumbai 400 021. |
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Tel. No.: |
91-22-2285 1656 |
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Fax No.: |
91-22-2285 1657 |
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E-Mail : |
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Website : |
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Corporate Office : |
1101, 1161 & 1162, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri Ghatkopar Link Road, Andheri (E), Mumbai 400 093 |
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Tel. No.: |
91-22-4043 0000 |
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Fax No.: |
91-22-4043 0099 |
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E-Mail : |
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Factory 1 : |
1. Daman ( Union Territory ) 2. Derabassi ( Punjab ) 3. Durgapur ( West Bengal ) 4. Guwahati ( Assam ) 5. Halol ( Gujarat) 6. Hosur ( Tamil Nadu ) 7. Jalgaon ( Maharashtra ) 8. Kanhe ( Maharashtra ) 9. Kanpur ( Uttar Pradesh ) 10. Khopoli ( Maharashtra ) 11. Khushkheda ( Rajasthan ) 12. Malanpur 1 ( Madhya Pradesh ) 13. Malanpur 2 ( Madhya Pradesh ) 14. Nandesari ( Gujarat) 15. Noida ( Uttar Pradesh ) 16. Pondicherry ( Union Territory ) 17. Silvassa ( Union Territory ) |
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Office: |
Ahmedabad Bangalore Chennai Cochin Hyderabad Indore Kolkata Mumbai New Delhi |
DIRECTORS
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Name : |
B L Taparia |
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Designation : |
Chairman |
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Name : |
M P Taparia |
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Designation : |
Managing Director |
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Name : |
S. Taparia, |
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Designation : |
Executive Director |
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Name : |
V K Taparia, |
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Designation : |
Executive Director |
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Name : |
B V Bhargava |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
16-04-1936 |
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Qualification : |
M. Com., L.L.B |
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Experience : |
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Date of Appointment : |
25-09-1996 |
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Name : |
E B Desai |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
01-04-1931 |
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Qualification : |
B A., L.L B. (Hons) |
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Experience : |
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Date of Appointment : |
30-08-2003 |
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Name : |
H S Parikh |
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Designation : |
Director |
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Name : |
N N Khandwala |
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Designation : |
Director |
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Name : |
5 R Taparia |
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Designation : |
Director |
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Name : |
Y P Trivedi |
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Designation : |
Director |
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Date of Birth/Age : |
06-01-1929 |
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Qualification : |
B Com L. L. B. |
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Date of Appointment : |
30-08-2003 |
KEY EXECUTIVES
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Name : |
O P Roongta |
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Designation : |
Sr. Vice - President (Finance)and Secretary |
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Name : |
J M Totla |
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Designation : |
Sr. VICE - PRESIDENT (OPERATIONS) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Promoters |
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6212639 |
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Non Residents Individuals / OCB |
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579960 |
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Companies |
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1 864646 |
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Fll's / Fl's / Mutual Fund / Bank |
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11514 |
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Individuals |
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5142078 |
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Total |
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13810837 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of PVC Pipes & Fittings, Material Handling Crates and Plastic Moulded Chairs. |
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Products : |
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Exports : |
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Countries : |
Middle East, Sri Lanka, UK, Australia, USA and Singapore. |
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Imports : |
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Countries : |
Singapore and Kuwait |
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Terms : |
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Selling : |
Advance Payment or Credit (60 days) |
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Purchasing : |
Credit (30/60 days) or Cash |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Injection Moulded Products |
MT |
-- |
54900 |
35146.307 |
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Extruded Products |
MT |
-- |
100172 |
80433.294 |
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Machinery & Moulds |
Nos |
-- |
N.A |
35 |
GENERAL
INFORMATION
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No. of Employees : |
2500 |
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Bankers : |
Central Bank of India State Bank of India Bank of India ING Vysya Bank BMP Paribas ICICI Bank Ltd. Bank of Baroda IDBI Bank Ltd. DTI Bank Ltd. Vijaya Bank |
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Facilities : |
1. Working Capital Loans from Banks (A) are secured against hypothecation
and/or pledge of stocks and Book Debts, second subservient charge on certain fixed assets of the Company and
personally guaranteed by three Directors, which is counter guaranteed by the Company. 2. Term Loans are secured / to be secured on par! passu basis by
mortgage of: (a) Immovable properties of the company, situated at various
locations, both present & future, subject to the exclsuion of properties at Andheri, Jalgaon, Malanpur & Kolkata:
(b) movable properties such as plant, machineries & moulds of the Company,
both present and future, (excluding current assets charged to bankers for working capital) and second /
subservient charge on current assets of the Company. (c) These loans are personally guaranteed by three Directors which is
counter guaranteed by the Company.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
M/s. Chhogmal & Co., Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
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1,12,00,000 |
Preference Shares |
Rs.10/- each |
Rs.112.000 Millions |
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3,38,00,000 |
Unclassified Shares |
Rs.10/- each |
Rs.338.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,33,90,837 |
Equity Shares |
Rs.10/- each |
Rs.133.908 |
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4,20,000 |
Equity Shares |
Rs.10/- each |
Rs.4.200 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 |
30.05.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
138.108 |
133.908 |
133.908 |
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2] Share Application Money |
0.000 |
8.400 |
8.400 |
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3] Reserves & Surplus |
1866.200 |
1977.222 |
1882.140 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2004.308 |
2119.530 |
2024.448 |
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LOAN FUNDS |
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1] Secured Loans |
1687.926 |
2008.970 |
1640.311 |
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2] Unsecured Loans |
686.942 |
456.384 |
404.290 |
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TOTAL BORROWING |
2374.868 |
2465.354 |
2044.601 |
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DEFERRED TAX LIABILITIES |
428.320 |
0.000 |
0.000 |
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TOTAL |
4807.496 |
4584.884 |
4069.049 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3592.550 |
3012.209 |
2853.950 |
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Capital work-in-progress |
0.000 |
25.597 |
65.577 |
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INVESTMENT |
339.723 |
347.834 |
347.834 |
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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 |
982.692
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746.235
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561.005 |
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Sundry Debtors |
1118.291
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899.605
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801.850 |
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Cash & Bank Balances |
77.079
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75.162
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95.680 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
423.463
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579.180
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485.428 |
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Total
Current Assets |
2601.525
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2300.182
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1943.963 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1512.398
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1075.363
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1120.652 |
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Provisions |
213.904
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25.575
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21.623 |
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Total
Current Liabilities |
1726.302
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1100.938
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1142.275 |
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Net Current Assets |
875.223
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1199.244
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801.688 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4807.496 |
4584.884 |
4069.049 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Sales Turnover |
9820.639 |
8241.301 |
7986.933 |
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Other Income |
46.662 |
0.000 |
0.000 |
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Total Income |
9867.301 |
8241.301 |
7986.933 |
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Profit/(Loss) Before Tax |
336.311 |
257.034 |
220.898 |
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Provision for Taxation |
(103.700) |
20.500 |
11.009 |
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Profit/(Loss) After Tax |
399.582 |
236.534 |
209.889 |
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Earnings in Foreign Currency : |
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Other Earnings |
841.992 |
654.218 |
738.871 |
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Total Earnings |
841.992 |
654.218 |
738.871 |
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Imports : |
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Raw Material and Consumed |
1778.573 |
991.409 |
0.000 |
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2.714 |
10.813 |
0.000 |
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190.925 |
107.663 |
0.000 |
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Others |
0.000 |
0.000 |
1016.651 |
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Total Imports |
1972.212 |
1109.885 |
1016.651 |
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Expenditures : |
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Cost of Materials |
6518.495 |
0.000 |
0.000 |
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Manufacturing Expenses |
2329.481 |
0.000 |
0.000 |
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Interest |
269.604 |
0.000 |
0.000 |
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Depreciation & Amortization |
413.410 |
0.000 |
0.000 |
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Other Expenditure |
0.000 |
7984.267 |
7766.035 |
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Total Expenditure |
9530.99 |
7984.267 |
7766.035 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
31.12.2006 |
31.03.2007 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
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Sales
Turnover |
2284.800 |
2668.200 |
3025.100 |
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Other
Income |
9.900 |
34.700 |
30.100 |
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Total
Income |
2374.700 |
2702.900 |
3055.200 |
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Total
Expenditure |
2071.500 |
239.2.900 |
2706.300 |
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Operating
Profit |
303.200 |
310.000 |
348.900 |
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Interest |
63.900 |
78.600 |
90.200 |
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Gross
Profit |
239.300 |
231.400 |
258.700 |
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Depreciation |
101.500 |
105.200 |
79.300 |
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Tax |
39.500 |
30.500 |
56.000 |
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Reported
PAT |
98.300 |
95.700 |
123.400 |
200609 Gross Sales Includes Plastic Products Rs 2503.333
million Others Rs 127.191 million Expenditure Includes Raw Material Consumed Rs
1751.820 million (Increase) / Decrease in Stock in Trade Rs (245.809) million
Employee's Cost Rs 89.166 million Other Expenditure Rs 476.306 million Tax
Includes Corporate Tax Rs 37.50 million Fringe Benefit Tax Rs 2.00 million EPS
is Basic Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 08 Complaints disposed off during the quarter 08 Complaints
unresolved at the end of the quarter Nil 1. The Company processed 28,677 MT of
polymers during the first quarter of the current year a compared to 25,830 MT
in the previous year recording a growth of 11.02%. 2. Exceptional Income of Rs
82.474 million is profit on transfer of leasehold rights in a plot of land
situated at IT Park, Salt Lake (Kolkata), subject to long term tax liability of
Rs 21 million which have been included under Corporate Tax provision. 3. (a)
Shareholders of the Company in the Annual General Meeting held on October 05,
2006 have approved issuance of fully paid equity shares of Rs 10 each as bonus
share in the ratio of 1(One) equity share for every 1(One) existing equity
shares of Rs 10 each held by capitalising Capital Redemption reserve &
Securities premium Account. (b) The Diluted EPS has been calculated
accordingly. 4. The Company is engaged mainly in processing of polymers and as
such is the only reportable segment, as per Accounting Standard on Segment
Reporting (AS-17) issued by ICAI. The geographical segmentation is not relevant
as export turnover is not significant in respect to total turnover. 5.
Provision for Deferred Tax will be ascertained and accounted for at the end of
the year. 6. The figures for the previous quarter / year have been regrouped /
rearranged wherever necessary. 7. The above financial results, which have been
subjected to Limited Review by the Auditors, have been reviewed by the Audit
Committee and approved by the Board of Directors at their meetings held on
October 26, 2006
200612 Gross Sales Includes Plastic Products Rs 2965.983
million Others Rs 94.108 million Expenditure Includes Raw Material Consumed Rs
1848.280 million (Increase) / Decrease in Stock in Trade Rs (19.762) million
Employee's Cost Rs 93.269 million Other Expenditure Rs 471.183 million Tax
Includes Corporate Tax Rs 27.50 million Fringe Benefit Tax Rs 3.00 million EPS
is Basic Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 15 Complaints disposed off during the quarter 15 Complaints
unresolved at the end of the quarter Nil 1. The Company processed 59,526 MT of
polymers during the first half of the current year a compared to 52,511 MT in
the corresponding period of the previous year recording a growth of 13.36%. 2.
Pursuant to the approval by shareholders of the Company at the annual general meeting
held on October 05, 2006, the Bonus Shares Allotment committee of the Directors
of the Company has allotted 1,38,10,837 equity shares of Rs 10 each at bonus
shares in the ratio of 1(One) equity share for every 1(One) existing equity
share of Rs 10 each held by the shareholders on the Record Date viz November
14, 2006. 3. Board of Directors has considered the payment of Interim dividend
for the financial year 2006-07 @25% i.e. Rs 2.50 per share of Rs 10/- each and
will be paid to the shareholders on the shares held as on the record date i.e.
29th Jan 2007. 4. The Company is engaged mainly in processing of plastic
polymers and as such is the only reportable segment as per Accounting Standard
on Segment Reporting (AS-17) issued by ICAI. The geographical segmentation is
not relevant as export turnover is not significant in respect to total
turnover. 5. Provision for Deferred Tax will be ascertained and accounted for
at the end of the year. 6. The figures for the previous quarter / year have
been regrouped / rearranged wherever necessary. 7. The above financial results,
which have been subjected to Limited Review by the Auditors, have been reviewed
by the Audit Committee and approved by the Board of Directors at their meetings
held on January 12, 2007.
200703 Gross Sales Includes Plastic Products Rs 2848.793
million Others Rs 176.266 million Expenditure Includes Raw Material Consumed Rs
2060.270 million (Increase) / Decrease in Stock in Trade Rs (48.204) million
Employee's Cost Rs 96.732 million Other Expenditure Rs 597.431 million Tax
Includes Corporate Tax Rs 52.50 million Fringe Benefit Tax Rs 3.50 million EPS
is Basic Status of Investor Complaints for the quarter ended March 31, 2007
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 18 Complaints disposed off during the quarter 18 Complaints
unresolved at the end of the quarter Nil 1. The Company processed 93647 MT of
polymers during the first nine months of the current year a compared to 83618
MT in the corresponding period of the previous year recording a growth of 12%.
2. Exceptional income of Rs 21.30 million is additional consideration received
on transfer of leasehold rights in a plot of land situated at IT Park salt Lake
(Kolkata), subject to long term tax facility of Rs 4.80 million which have been
included under Corporate Tax provision. 3. Pursuant to the plans of the Company
to eventually exit form the product segments where the Company is neither a
market leader nor differentiator, Board of Directors of the Company in its
meeting held on April 05, 2007 has approved subject to all required approvals
if any. Toll Manufacturing Agreement entered with M/s Kloeckner Pentaplast of
Germany to operate the existing manufacturing facilities of rigid PVC & PVC
/ PVDC film for Kloeckner Pentaplast India w.e.f. May 01, 2007 till the
eventual sale of plant & machinery. The Board has also approved sale of
substantial assets of Daman plant manufacturing Food Service Ware products. 4.
The Company is engaged mainly in processing of plastic polymers and as such is
the only reportable segment as per Accounting Standard on Segment Reporting
(AS-17) issued by ICAI. The geographical segmentation is not relevant as export
turnover is not significant in respect to total turnover. 5. Provision for
Deferred Tax will be ascertained and accounted for at the end of the accounting
year. 6. The figures for the previous quarter / year have been regrouped /
rearranged wherever necessary. 7. The above financial results, which have been
subjected to Limited Review by the Auditors, have been reviewed by the Audit
Committee and approved by the Board of Directors at their meetings held on
April 17, 2007.
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity
Ratio |
1.19 |
1.11 |
1.17 |
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Long
Term Debt-Equity Ratio |
0.90 |
1.02 |
1.10 |
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Current
Ratio |
1.11 |
1.61 |
1.53 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.76 |
1.58 |
1.59 |
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Inventory |
13.08 |
14.25 |
17.92 |
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Debtors |
11.21 |
10.95 |
11.18 |
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Interest
Cover Ratio |
2.19 |
1.98 |
1.84 |
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Operating
Profit Margin(%) |
9.03 |
9.79 |
10.03 |
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Profit
Before Interest And Tax Margin(%) |
5.36 |
5.57 |
5.48 |
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Cash
Profit Margin(%) |
5.96 |
6.76 |
6.86 |
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Adjusted
Net Profit Margin(%) |
2.28 |
2.54 |
2.31 |
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Return
On Capital Employed(%) |
13.62 |
12.06 |
12.01 |
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Return
On Net Worth(%) |
12.76 |
11.67 |
11.09 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.208.00 |
|
Low |
Rs.204.05 |
LOCAL AGENCY
FURTHER INFORMATION
Exceptional income of Rs. 169.308 Millions stated above in financial results consists of profit on sale of 6,10,137 equity shares of the company in the market held by the trusts of which the company is the sole beneficiary.
The equity share capital and securities premium account of the company during the year has increased by Rs.4.200 Millions and Rs.79.800 Millions respectively consequent upon exercise of the option attached to warrants allotted to promoters in the earlier year.
In accordance with Accounting Standard 22 issued by The Institute of Chartered Accountants of India, the Company has for the first time recognized the deferred tax assets / liabilities in the books of the accounts. The accumulated deferred tax liability as at the beginning of the year amounting to Rs.427.520 Millions has been charged off against the balance in General Reserve and the liability for the current year has been charged to the profit before tax for the year as stated in the financial results.
SUPREME PETROCHEM LIMITED (SPL)
Supreme Petrochem Ltd., a company jointly promoted by the Company and R Raheja Group has drawn up a plan to enhance its compounding capacities, to set up a new unit for manufacture of EPS, a project for minor port and a SEZ earmarked facility to promote export of plastic processed goods. All these projects are under implementation. SPL has taken a majority stake in Shin ho Petrochemical (India) Ltd. having a running EPS plant at Chennai of 6000 MT per annum. SPL is also moving towards developing a sector specific SEZ for plastics processed goods.
SUBSIDIARY COMPANY
With a view to expand its business in gulf countries, the Company has promoted The Supreme Industries Overseas (FZE), a wholly owned subsidiary of the Company, incorporated in SAIF Free Zone, UAE by investing a sum of AED 150,000 (equivalent to Rs1.888 Millions). Statement required pursuant to provisions of section 212 of the Companies Act, 1956 is provided in the Annual Report.
The company has initiated plans for development of its properties at Andheri in Mumbai and evaluating proposals
for Salt lake in Kolkatta To pursue these projects, the company has incurred a capital expenditure of Rs. 1 76.300
Millions during the year.
As part of its strategy to focus on changing needs of market segments, the Company has plans for capital expenditure of over Rs. 1 200.000 Millions during 2006-07. These investments are expected to further improve the financial performance of the Company in the coming years. The requirement of additional funds for financing its capital projects will be met by internal resources and borrowings.
The gross working capital comprising of receivables and inventories as at 30th June 2006 is 21 .39.% of net sales as compared to 20.2% of net sales as at 30th June 2005. The Company has adequate facilities granted by the consortium of bankers for its working capital requirement. The short term debt rating of P1 has been re-affirmed by CRISIL.
The increasing credit demand from the industry and increase in administrative rate by Reserve Bank of India at
regular intervals has put the interest rate under pressure.
The Company has restructured its debt profile to reduce the incidence of interest on operational performance. In
spite of increasing rate of interest on borrowed funds, close monitoring of working capital has resulted into reduction of interest and financing charges in terms of percent to total income at 2.73% for the year as compared to previous financial year at 3.04%.
2. INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in processing and manufacturing of plastic products, components and other end-user
industry products, and is market leader in various products.
The Company is preferred partner to user industries with commitment to supply high quality customised products
and integrated services. India is one of the countries with very low per capita consumption of plastics. The consumption of plastics in India during the financial year 2005-06 was around 4.6 Million tons indicating a growth of around 12% compared to previous year. After several years of low consumption, the industry appears to have come back to a growth path.
They expect that the pace of growth may continue and per capita consumption of plastics will improve. India is far behind in export of plastics products due to various factors. The export of plastics goods from China was around 15 billion Dollars in the year 2005 against 1 billion Dollar from India in 2005-06. Considering the inherent strength of the plastics processing industry in the country, to adopt to fast changing requirement and its capabilities to deliver customized products, the exports of value added products are expected to grow once the concept of SEZ is fully operationalised. They envisage good growth potential for exports of plastics products from India.
Government of India is taking initiatives to boost the manufacturing activities in India. Creation of SEZ is one
such initiatives. Introduction of Value Added Tax (VAT) by most of the states is expected to not only boost State
revenues but will also have positive impact on manufacturing activities. It is expected that the remaining
states will also follow VAT system very soon. Central Sales Tax (CST), which is a big hindrance in integrating the tax system in the country, is expected to be abolished in phases over a period of 2 to 3 years. Government has de-reserved 180 items from Small Scale reservation list and has expressed it's intention to de-reserve the list of remaining 326 items in near future. Plastics products still constitute major chunk of residual items in the reserved category.
De-reservation thereof is expected to boost consumption of plastics and trigger export growth of plastics products.
This will create further growth opportunities for the company's business.
The company has taken initiatives to boost its export. Expansion of capacity of cross laminated products, plastics
piping system, flexible packaging film and opening up
Fixed assets:
Freehold Land
Leasehold Land
Buildings
Plant, Machinery and Electrical Installations
Moulds and Dies
Furniture, Fixture and Office Equipments
Vehicles
Sundry Equipments
As per Web site:
Founded in 1942, Supreme is an acknowledged leader of India's plastics industry.
Handling volumes of over 100,000 tonnes of polymers annually, effectively makes them the country's largest plastics processors.
Not surprisingly, they also offer the widest and most comprehensive range of plastic products in India.
Their 20 advanced plants are powered by technology from world leaders, and complement their extensive facilities for R & D and new product development.
In fact, Supreme is credited with pioneering several products in India. These include Cross- Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats and more.
They are seeking to perform strongly internationally as well. Exports remain a focal area of their operations, even as they add newer markets to their list worldwide.
2005 will see The Supreme Group turnover touch a projected Rs. 23,000 million (USD 500 million).
Products:
Moulded Furniture
Moulds
Storage and Material Handling Crates
Petrochemicals
Cross Laminated Films and Products
Food Service ware
Packaging Films
Industrial and engineering Moulded Products
Calendered Rigid PVC Films
Protective Packaging Products
Plastics Piping Systems
From Strength to
Strength
From modest beginnings, as a small single product company in the 1950s, to a Rs. 2,0000.000 Millions multi-unit conglomerate with India's largest plastic products portfolio today, the Supreme Group has certainly come a long way.
This unrelenting growth has come through diverse efforts: consolidation and expansion, enhancement of capacities, addition of fresh products and variants, establishment of newer plants, and occasionally, even acquisition of under-performing but high potential units and brands.
Understandably, the integration route has been successfully explored by the Group.
For instance, in a major backward integration move, Supreme Petrochem Ltd.-- and with it, one of India's largest world class styrenics complexes-- came into being.
Similarly, diversification and horizontal integration have been fuelled by strategic collaborations with technology leaders. Two prime examples of this are introduction of multi-layer films and calendered film products in the country .
The Group has made substantial complementary investments in R & D. This has not only helped in a thorough and superior assimilation of cutting edge technologies, but also contributed to a collateral development of newer and improved products on a continuing basis.
So, while Supreme SWR systems were India's first viable alternative to conventional GI pipes and fittings, the unflagging creation of newer fittings keeps an unmatched range growing ever further .
A client-friendly approach, a readiness to customize and an eagerness to provide all technical support have played no mean role in propelling Supreme to leadership.
An open mind and receptivity to new ideas and needs remain hallmarks of the Group's interface with all customers-- in India and across the globe .
|
Particulars: |
Half Year ended 31.12.2006 |
|
Sales : |
|
|
a) Plastics Products |
5469.316 |
|
(b) Others |
221.299 |
|
|
5690.615 |
|
Less : Excise Duty: |
737.554 |
|
Net Sales |
4953.061 |
|
2 Other Income |
42.133 |
|
Total Income |
4995.194 |
|
3 Goods Consumption |
|
|
a Raw Material Consumed |
3600.100 |
|
b ( Increase ) / Decrease in stock in trade |
(265.571) |
|
4 Employees' Cost |
184.435 |
|
5 Other Expenditure |
947.489 |
|
6 Total Expenditure before Interest ( 3+4+5 ) |
4464.453 |
|
7 Operating Profit (1+2-6) |
530.741 |
|
8 Interest |
142.500 |
|
9 Profit before Depreciation & Tax ( 7-8 ) |
388.241 |
|
10 Depreciation |
206.657 |
|
11 Profit Before Tax (9-10) |
181.584 |
|
12 Exceptional Income |
82.474 |
|
13 Provision for Taxation |
|
|
Corporate Tax |
65.000 |
|
Deferred Tax |
0.000 |
|
Fringe Benefit Tax |
5.000 |
|
14 Net Profit ( 11+12-13 ) |
194.058 |
|
15 Paid Up Equity Share Capital Face Value
Rs. 10/- ) |
276.217 |
|
16 Reserves Excluding Revaluation Reserve |
|
|
17 Earning per Share - Basic (Rs.) Diluted (Rs.) |
0.703 0.703 |
|
18. Cash earning per Share: -Basic(Rs.) -Diluted (Rs.) |
1.451 1.451 |
|
19 Aggregate of Non-Promoters Shareholding - No. of Shares - % of Shareholding |
15196796 55.20% |
The Company processed 59,526 MT of polymers during the first nine months
of the current year as compared to 52,511 MT in the corrosponding period of the
previous year recording a growth of 13.36%
Pursuant to the approval by share holders of the Company at the annual
general meeting held on 5th October, 2006 the Bonous shares
Allotment Commitments of the Direcctors of the Company has allotted 1,38,10,837
equity shares of Rs. 10/- each as bonous shares in the ratio of 1 (one) equity
Shares for Every 1(One) existing shares of rs. 10 each held by the shareholders
on the Dare viz. 14.11.2006.
Board of Director has considered the payment of interim dividend for the
financial year 2006-07@25%i.e;Rs.2.50
per shares of Rs.10/- each and will be paid to the shareholders on the records
date i.e; 29th January 2007
The Company is engaged mainly in processing of plastic polymers and as
such is the only reportable segment as per Accounting Standard on Segment
Reporting (AS-17) issued by ICAI.The geographical segmentation is not relevant
as export turnover is not significant in respect to total turnover.
Provision for Dffered Tax will be ascertained and accounted for at all
the end of the year.
Investor complaints during the quarter; Opening balance: NIL, Received
during the quarter : 15, Pending as on 31st March 2006: NIL.
The figures for the previous quarter/year have been regrouped/rearranged
wherever necessary.
Press Release
The
Supreme Industries Limited has reported gross turnover and other income of Rs.
4071.300 Millions including Rs. 167.100 Millions of polymer trading) in the
first 6 months ended 31 st December 2004 of the current year as against Rs.
4297.300 Millions (including Rs. 352.900 Millions of polymer trading) during
the corresponding period of last year.
Operating profit
for the first half of current year is lower at Rs. 256.300 Millions as against
Rs. 325.200 Millions in last year and the Net Profit is Rs. 51.200 Millions as
against Rs. 113.600 Millions in the corresponding period of previous year .
The first half of
the current year has witnessed steep volatility in polymer prices. The whole of
the plastic processing industry has passed through a bad phase due to such
volatility, which has led to degrowth in consumption of plastics in the Indian
economy inspite of GDP growth in excess of 7%. The overall consumption of
majority of commodity plastics in the last 9 months (April 2004 to December
2004) was either negative or flat. The prices have since then stabilized and
outlook remains positive for the first half of the calendar year .
Supreme is
increasing its capacities in more value added products and to increase its
export capabilities which would minimize the effects of such volatility in
polymer prices. The Company has planned capex of Rs. 650.000 Millions during
the current year, Major capex has been committed for such value added products
and to augment the capacity for export markets .
The second half of
the current year looks promising and the Company expects to achieve it's
financials in line with the previous year .
Mumbai,
For
The Supreme Industries Limited
Dated, 31 st
January, 2005
Sr.
Vice-President (Finance) & Secretary
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.41.29 |
|
UK Pound |
1 |
Rs.82.30 |
|
Euro |
1 |
Rs.56.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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 |
|