MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
ENKEI CASTALLOY
LIMITED |
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Registered Office : |
Gate No.1426,
Shikrapuri, Pune-412208, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.12.1990 |
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Com. Reg. No.: |
11-59487 |
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CIN No.: [Company
Identification No.] |
U99999MH1990PLC059487 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEE01509E |
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PAN No.: [Permanent
Account No.] |
AABCP0252B |
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Legal Form : |
A Public Limited
Liability Company. The Company’s shares are listed on Stock Exchanges. |
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Line of Business : |
Manufacturing aluminium
alloy die casting, by Gravity and Low Pressure Techniques, mainly catering to
automobile industry |
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 925000 |
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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 fine track. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The company is
doing well. It can be
considered good for any normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
GateNo.1426,
Shikrapuri, Pune-412208, |
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Tel. No.: |
91-2137-677100 |
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Fax No.: |
91-2137-677130 |
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E-Mail : |
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Website : |
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Factory 1 : |
57-58Km Stone, |
DIRECTORS
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Name : |
Mr. S. Rai |
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Designation : |
Managing Director |
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Name : |
Mr. Junichi
Suzuki |
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Designation : |
Director |
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Name : |
Mr. Tetsuro Masui |
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Designation : |
Director |
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Name : |
Mr. Asis Roy |
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Designation : |
Director |
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Name : |
Mr. A. D.
Harolikar |
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Designation : |
Director |
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Name : |
Mr. S. C. Khanna |
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Designation : |
Director |
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Name : |
Mr. Vinay Panjabi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajeev Sikand |
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Designation : |
Group CEO |
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Date of
Birth/Age : |
46 years |
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Qualification
: |
MBA |
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Experience : |
24 years |
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Date of
Appointment : |
03.12.2005 |
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Previous
Employment : |
Motherson Sumi
Systems Limited, Head-International Business |
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Name : |
Mr. K.K. Jha |
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Designation : |
CEO |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B. Sc.
(Engineering) |
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Experience : |
21 years |
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Date of Appointment
: |
15.06.1994 |
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Previous
Employment : |
Maruti Udyog
Limited, Engineer |
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Name : |
Mr. Naishad J.
Purohit |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
1900000 |
38.00 |
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Foreign
Collaborators |
1900000 |
38.00 |
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Private Corporate
Bodies |
416071 |
8.32 |
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Indian Public |
661057 |
13.22 |
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Other than
Promoter Directors |
1462 |
0.03 |
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Any other than
Promoter Directors |
5350 |
0.11 |
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NRIs |
43875 |
0.88 |
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FIIs |
72185 |
1.44 |
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Total |
5000000 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing aluminium
alloy die casting, by Gravity and Low Pressure Techniques, mainly catering to
automobile industry |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Semi-finished Casting made from aluminium alloys |
Nos. |
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83603 |
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Wheels (Traded) |
Nos. |
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0 |
GENERAL INFORMATION
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Bankers : |
Ø
Bank
of Ø
ING Vysya
Bank Limited, Ø
Kotak
Mahindra Bank Limited, Pune Ø
State
Bank of Ø
Export
Import Bank Of |
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Facilities : |
Secured Loans :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Engineer &
Mehta Chartered
Accountants |
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Associates/Subsidiaries : |
Ø
Enkei
Corporation, Ø
Enkei
Thai Company Limited Ø
Enkei
thai Moulding company Limited Ø
Asian
Enkei Company Limited Ø
Enkei
Logistics Limited Ø
Enkei
Audit And Computer Limited Ø
Atlas
Automotive Components Private Limited Ø
Pamela
Finance Private Limited Ø
Silicon
Meadows Designs Private Limited Ø
Nastic
Trading Private Limited Ø
Chemetall
Rai India Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.000 |
50.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
181.860 |
114.293 |
62.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
231.860 |
164.293 |
112.200 |
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LOAN FUNDS |
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1] Secured Loans |
473.851 |
247.351 |
154.300 |
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2] Unsecured Loans |
272.509 |
172.931 |
28.200 |
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TOTAL BORROWING |
746.360 |
420.282 |
182.500 |
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DEFERRED TAX LIABILITIES |
31.217 |
25.494 |
0.000 |
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TOTAL |
1009.437 |
610.069 |
294.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
712.960 |
427.347 |
197.800 |
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Capital work-in-progress |
110.458 |
95.183 |
31.100 |
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INVESTMENT |
0.070 |
0.070 |
0.100 |
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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 |
116.930 |
62.043 |
33.600 |
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Sundry Debtors |
269.820 |
168.783 |
88.900 |
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Cash & Bank Balances |
7.803 |
7.308 |
7.600 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
96.952 |
43.182 |
37.200 |
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Total Current Assets |
491.505 |
281.316 |
167.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
236.203 |
160.877 |
88.100 |
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Provisions |
69.589 |
33.568 |
14.000 |
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Total Current Liabilities |
305.792 |
194.445 |
102.100 |
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Net Current Assets |
185.713 |
86.871 |
65.200 |
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MISCELLANEOUS EXPENSES |
0.236 |
0.598 |
0.500 |
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TOTAL |
1009.437 |
610.069 |
294.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1234.360 |
658.078 |
354.800 |
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Profit/(Loss)
Before Tax |
116.436 |
87.545 |
33.700 |
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Provision for
Taxation |
41.030 |
28.516 |
11.600 |
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Profit/(Loss)
After Tax |
75.406 |
59.029 |
22.100 |
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Export Value |
54.450 |
50.952 |
NA |
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Import Value |
102.279 |
98.337 |
NA |
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Total Expenditure |
1117.924 |
570.533 |
321.100 |
SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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|
Full
Year |
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Sales
Turnover |
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|
2296.900 |
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Other
Income |
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|
16.300 |
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Total
Income |
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|
2313.200 |
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Total
Expenditure |
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|
1990.600 |
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Operating
Profit |
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|
322.600 |
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Interest |
|
|
77.300 |
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Gross
Profit |
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|
245.300 |
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Depreciation |
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|
105.600 |
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Tax |
|
|
25.800 |
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Reported
PAT |
|
|
118.100 |
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Dividend
(%) |
|
|
0.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
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|
1st
Quarter |
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Sales Turnover |
|
|
760.800
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Other Income |
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|
3.700
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Total Income |
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|
764.500
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Total Expenditure |
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678.600
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Operating Profit |
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|
85.900
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Interest |
|
|
31.700
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|
Gross Profit |
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|
54.200
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Depreciation |
|
|
39.800
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Tax |
|
|
2.700
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Reported PAT |
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|
11.700
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KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.94 |
2.18 |
1.26 |
|
Long Term Debt-Equity Ratio |
2.56 |
1.86 |
0.93 |
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Current Ratio |
1.09 |
1.09 |
1.21 |
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TURNOVER RATIOS |
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Fixed Assets |
1.99 |
1.78 |
1.51 |
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Inventory |
16.09 |
15.73 |
11.74 |
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Debtors |
6.56 |
5.84 |
4.61 |
|
Interest Cover Ratio |
3.33 |
3.18 |
3.04 |
|
Operating Profit Margin(%) |
15.53 |
21.85 |
21.11 |
|
Profit Before Interest And Tax Margin(%) |
11.56 |
16.97 |
14.38 |
|
Cash Profit Margin(%) |
9.21 |
12.73 |
13.06 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Computers/ Softwares
- Office Equipments
- Quality Control Equipments
- Motor Vehicles
- Dies
- Patterns
DIVIDEND
Inspite of
remarkable increase in profit and desire of the Directors to reward the
Shareholders with maximum return, considering the on going expansion of
manufacturing capacities involving large capital expenditure programme of the
Company, the Board of Directors proposes to maintain the dividend and
accordingly, have recommended a dividend of 12.50% (Rs.1.25 per share of
Rs.10/- each) for the financial year 2005-06.
There will be no
tax deduction at source on dividend payment and the Company will pay dividend
distribution tax on the dividend along with surcharge thereon and education
cess. The dividend received at shareholders end will be free of tax. The total
outgo on this score shall be Rs. 7.84 millions.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry Structure and Development:
The Company is
manufacturing aluminium alloy die castings, by Gravity and Low Pressure
techniques, mainly catering to automobile industry. The Company is offering comprehensive
range of castings with precision machining used as engine parts to various Auto
OEM's. The Company is also manufacturing aluminium alloy wheels, required for
two and four wheelers.
The automotive
industry in
The Indian auto
ancillary has the added advantage of low cost of production and better quality
compared toemerging markets like
Review of Operations:
Their Company
operates into only one business segment viz. manufacturing of aluminium alloy
castings
mainly used in auto
industry.
Their Company has
.recorded yet another year of impressive performance with highest ever top and
bottom lines. During the year under review, sales turnover amounted to an all
time high of Rs.1439.22 million as against Rs.751.95 million last year, a jump
of 91.40%. Pre-tax profit was also higher at Rs.116.44 million as against
Rs.87.54 million in previous year. Cash profit after Tax of Rs.132.49 million
shows a very healthy growth of about 38.10% on year to year basis. Earning per
share (EPS) for the year was Rs.15.08 compared to Rs.11.81 in the earlier year.
The Company
recorded an export turnover of Rs.141.91 million for the year under review
compared to an export of Rs.50.95 million in last year.
Opportunities / Outlook for the Company
Buoyant economy,
higher industrial growth, emphasis on infrastructure developments, etc. are
expected to bring momentum in the demand for two and four wheeler automobiles.
Also, international auto giants are looking
Their Directors are
glad to report that the production of aluminium alloy wheels, which began last
year, has been stabilized. The wheels produced are of international quality.
The Company is supplying aluminium alloy wheels to Honda Siel Cars India
Limited for their Honda Accord, Honda Civic Models and Bajaj Auto Limited for
their Pulser Model. The Company is also negotiating with other two/four wheeler
manufacturers for the supply of aluminium alloy wheels.
The first phase of
the Company's new plant at Gurgaon, Haryana, for manufacturing aluminium alloy
castings commenced production in the month July 2006. Second phase will be
operational in the month
November 2006.
Their Directors are
pleased to report that enthused with the up surging demand, the management has
decided to set up one more plant at the total cost of Rs.100 million for
manufacturing aluminium castings at Pantnagar, Uttaranachal. Necessary site has
been finalized and statutory approvals are being obtained.
PREFERENTIAL ISSUE
As approved by the
members in their Extra-Ordinary General Meeting held on 21st June, 2006,
5,00,000 Equity Shares of Rs.10/- each were allotted to Prudential ICICI Trust Limited
- Prudential ICICI Fusion Fund and Minivet Limited of
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.39.79 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.56.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--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 |
|
63 |
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. |
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 |
|