MIRA
INFORM REPORT
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Report Date : |
19.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHETRON LIMITED |
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Formerly Known As : |
SHETRON METALS
LIMITED |
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Registered Office : |
Plot No. 1, Bommasandra
Industrial Area, Hosur Road, Bangalore – 560099, Karnataka, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.06.1980 |
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Com. Reg. No.: |
08-3842 |
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CIN No.: [Company
Identification No.] |
L21014KA1980PLC003842 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRSO1805G/BLRS02308F |
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Legal Form : |
Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
printed tin/metal/containers, dry battery cells,
jackets and components, printed, varnished and lacquered tin/metal sheet from
tinplate prime/waste/water black plates, tinfree steel and CRC sheets, MS, defectives
and MS cuttings Aluminium Sheets. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2220000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair.
The company’s sales turnover and profit margin has improved substantially.
Financial position is satisfactory. Payments are usually correct and as per
commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office/ Factory 1: |
Plot No. 1,
Bommasandra Industrial Area, Hosur Road, Bangalore – 560099, Karnataka, India |
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Tel. No.: |
91-80-2226 8920 /
2226 8921 / 7832290 / 1 / 2 / 46 |
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Fax No.: |
91-80-2225 8285 /
7832293 |
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E-Mail : |
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Website : |
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Corporate Office |
A/6, M.I.D.C.
Road 5, Ramakrishna Mandir Road, Chakala,
Andheri [East], Mumbai – 400093,
Maharashtra, India |
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Tel. No.: |
91-22-2832 6228 /
2832 8609 |
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Fax No.: |
91-22- 2837 2145 |
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E-Mail : |
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Head Office : |
26/3A, Sankey Road, Bangalore - 560 052, Karnataka, India |
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Tel. No.: |
91-80-226 8920 / 21 |
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Fax No.: |
91-80-225 8285 |
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E-Mail : |
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Factory 2 : |
Mumbai-Nasik
Highway, Post Vasind, Taluk Shahapur, Dist Thane - 421604, Maharashtra, India
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Tel. No.: |
91-952527-220097/220521 |
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Fax No.: |
91-952527-220520 |
DIRECTORS
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Name : |
Mr. Divakar S. Shetty |
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Designation : |
Chairman & Managing Director |
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Qualification : |
B.Com. |
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Date of Appointment : |
01.09.1983 |
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Previous
Employment |
Fibre Foils Limited – Managing Director |
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Name : |
Mr. Kartik Nayak |
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Designation : |
Executive Director |
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Name : |
Mr. A. T. Picardo |
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Designation : |
Director |
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Name : |
Mr. B. S. Patil |
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Designation : |
Nominee Director [KSFC] |
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Name : |
Mr. M. Kumar |
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Designation : |
Nominee Director [IDBI] |
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Name : |
Mr. C. R.
Seetharam |
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Designation : |
Director |
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Name : |
Mr. A. P. Rao |
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Designation : |
Director |
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Name : |
Mr Uday Shankar R M |
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Designation : |
Director |
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Name : |
Dr. M Mahadeviah |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. T. K.
Gopalakrishnan |
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Designation : |
Company Secretary |
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Audit Committee |
Shri M.Kumar – Chairman Shri C.R.Seetharam – Member Shri A.P.Rao – Member Mr Uday Shankar R M |
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SHARE TRANSFER AND GRIEVANCES COMMITTEE |
Shri Diwakar S. Shetty Chairman Shri Kartik Nayak Member Mr Uday Shankar R M Member Mr. Kartik Nayak Member |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on 31.03.2007) :- |
No. of Shares |
Percentage of
Holding |
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Promoter's
holding |
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Indian Promoters |
5316094 |
59.05 |
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Foreign Promoters |
81633 |
0.91 |
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Non-Promoters
Holding |
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Institutional
Investors : |
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Mutual Funds and UTI |
100 |
0.00 |
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Flls |
286288 |
3.18 |
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Others : |
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Private Corporate Bodies |
2052695 |
22.80 |
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Indian Public |
1097286 |
12.18 |
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NRIs/ OCBs |
169204 |
1.88 |
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Total |
9003300 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
printed tin/metal/containers, dry battery cells, jackets
and components, printed, varnished and lacquered tin/metal sheet from
tinplate prime/waste/water black plates, tinfree steel and CRC sheets, MS,
defectives and MS cuttings Aluminium Sheets. |
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Products : |
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PRODUCTION STATUS( As on 31.03.2007) :-
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
Sales
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Metal Container including Food Cars Cans and
Dry Cells – Jackets & Components
including printed/ lacquered sheets |
MT |
14350 |
9170 |
9155 |
GENERAL
INFORMATION
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No. of Employees : |
700 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Pal &
Shanbhogue Chartered
Accountants, |
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Address : |
24, 4th
Main, Malleswaram, Bangalore – 560003, Karnataka |
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Associates/Subsidiaries : |
Fibre Foil
Limited, Mumbai Line of Business
- Engaged in manufacturing of printed tin/metal/containers, dry battery cells,
jackets & components, printed, varnished and lacquered tin/metal sheet
from tinplate prime/waste/water black plates, tinfree steel and CRC sheets,
MS, defectives, MS cuttings Aluminium Sheets. Ø Sansha Systems Limited, Bangalore,
Karnataka Ø Shetron Enterprises Private Limited Ø Fibre Shells Limited Ø Shetron Metro Pak Private Limited Ø Bunts Property Private Limited |
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CAPITAL STRUCTURE
(As on
31.03.2007);-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
Issued,:
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No. of Shares |
Type |
Value |
Amount |
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9003300 |
Equity Shares |
Rs.10/- each |
Rs. 90.033 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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9003300 |
Equity Shares |
Rs.10/- each |
Rs. 89.988 millions |
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Less : |
Calls in Arrears |
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Rs. 0.013 million |
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Add : |
Forfeited Equity Shares 4500 |
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Rs. 0.023 millions |
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GRAND TOTAL |
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Rs. 89.998millions |
NOTES:-
(Of the above 1517300
shares were allotted as fully paid up by way of Bonus shares through
capitalization of reserves).
Share Application Money
2600000 Non
Transferable share Warants of Rs. 10/- each at a Premium of Rs.40/- (Amount
paid on Application Rs.5/-)
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
89.998 |
63.998 |
63.998 |
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2] Share Application |
0.000 |
13.000 |
0.000 |
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3] Reserves & Surplus |
353.917 |
226.060 |
143.687 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
443.915 |
303.058 |
207.685 |
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LOAN FUNDS |
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1] Secured Loans |
511.226 |
505.264 |
532.877 |
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2] Unsecured Loans |
13.219 |
53.337 |
58.872 |
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TOTAL BORROWING
|
524.445 |
558.601 |
591.749 |
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DEFERRED TAX LIABILITIES |
90.908 |
84.692 |
5.974 |
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TOTAL
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1059.268 |
946.351 |
805.408 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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486.029 |
401.297 |
409.255 |
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Capital work-in-progress
|
102.034 |
43.951 |
18.807 |
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INVESTMENT
|
9.950 |
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
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272.184
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289.567
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199.205
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Sundry Debtors
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176.196
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205.829
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179.057
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Cash & Bank Balances
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19.894
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27.955
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30.492
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Other Current Assets
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13.759
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11.412
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12.648
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Loans & Advances
|
90.627
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87.440
|
102.396
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Total Current Assets
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572.660
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622.203
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523.798
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
113.751
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148.292
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137.330
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Provisions
|
38.904
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20.308
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9.122
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Total Current Liabilities
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152.655
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168.600
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146.452
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Net Current Assets
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420.005
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453.603
|
377.346
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MISCELLANEOUS EXPENSES
|
41.250 |
47.500 |
0.000 |
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TOTAL
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1059.268 |
946.351 |
805.408 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
831.075 |
803.614 |
693.669 |
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Other Income |
37.868 |
28.388 |
31.129 |
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Total Income |
868.943 |
832.002 |
724.799 |
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Profit/(Loss) Before Tax |
64.342 |
182.648 |
86.902 |
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Provision for Taxation |
22.612 |
83.255 |
5.149 |
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Profit/(Loss) After Tax |
41.730 |
99.393 |
81.753 |
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Earnings in Foreign Currency : |
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Export Earnings |
106.125 |
150.148 |
127.167 |
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Commission Earnings |
0.333 |
1.632 |
1.516 |
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Total Earnings |
106.458 |
151.780 |
128.683 |
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Imports : |
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Raw Materials |
389.920 |
421.159 |
222.937 |
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Stores & Spares |
5.029 |
11.256 |
7.484 |
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Capital Goods |
14.670 |
13.626 |
1.757 |
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Total Imports |
409.619 |
446.041 |
232.178 |
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Expenditures : |
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Manufacturing Expenses |
703.057 |
564.847 |
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Interest |
60.500 |
44.420 |
637.897 |
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Depreciation & Amortization |
41.044 |
40.085 |
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Other Expenditure |
NA |
NA |
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Total Expenditure |
804.601 |
649.352 |
637.897 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st
Quarter) |
30.09.2007 (2nd
Quarter) |
31.12.2007 (3rd
Quarter) |
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Sales Turnover |
203.000 |
250.400 |
285.000 |
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Other Income |
7.300 |
8.600 |
5.300 |
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Total Income |
210.300 |
259.000 |
290.300 |
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Total Expenditure |
169.200 |
200.000 |
245.300 |
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Operating Profit |
41.100 |
59.000 |
45.000 |
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Interest |
16.200 |
16.000 |
16.100 |
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Gross Profit |
24.900 |
43.000 |
28.900 |
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Depreciation |
12.300 |
12.300 |
12.200 |
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Tax |
0.800 |
6.900 |
3.100 |
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Reported PAT |
12.400 |
24.400 |
14.200 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
1.48 |
2.31 |
3.65 |
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Long
Term Debt-Equity Ratio |
1.09 |
1.85 |
2.97 |
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Current
Ratio |
1.49 |
1.66 |
1.70 |
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TURNOVER RATIOS |
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Fixed
Assets |
1.11 |
1.20 |
1.07 |
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Inventory |
3.24 |
3.64 |
4.61 |
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Debtors |
4.76 |
4.63 |
4.31 |
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Interest
Cover Ratio |
1.91 |
2.17 |
1.27 |
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Operating
Profit Margin(%) |
19.02 |
17.27 |
16.85 |
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Profit
Before Interest And Tax Margin(%) |
14.51 |
12.76 |
11.79 |
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Cash Profit
Margin(%) |
8.95 |
8.16 |
7.50 |
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Adjusted
Net Profit Margin(%) |
4.44 |
3.66 |
2.44 |
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Return
On Capital Employed(%) |
15.26 |
14.21 |
11.19 |
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Return
On Net Worth(%) |
11.01 |
13.10 |
9.83 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY :
The company was
incorporated on 9th June, 1980 at Bangalore in Karnataka having
Company Registration Number 3842 under the name and style of Shetron Metals
Limited, as a public company and obtained the Certificate of Commencement of
Business on July 4, 1980. The name was subsequently changed to present and
fresh certificate of incorporation has been obtained on December 4, 1989.
It was promoted by
Divakar S Shetty and his associates jointly with the Karnataka State Industrial
and Investment Development Corporation, under the name Shetron Metals.
It manufactures
battery cell jackets and components, printed metal sheets, cans and can
components. In August, 1993, the
company came out with a public issue at a premium of Rs. 30 aggregating Rs.
92.200 millions. The issue was to
part-finance the setting up of manufacturing facilities for open top sanitary
cans at Bangalore, Karnataka with an installed capacity of 4800 tpa. The project cost was appraised by IDBI was
Rs. 204.800 millions. In 1993-94, the
company executed a contract to import advanced technology for the manufacture
of dry battery cell jackets and components.
The company also
focus on international market for Battery Division and hope that no
apprehension in playing a major role in the world market over the years. The company continues to be the market
leaders in the segment of processed food and vegetable. The company also entered into the Mushroom
Sector in a large way and anticipate to be a major supplier and market leader
in this segment. Food Can Division also
shows a significant growth an increased by 21%.
The company’s list
of clients include companies like Union Carbide, Indo National, Lakhanpal
National, as also companies in Europe, West Asia and East Asia.
The company shifted
its registered office from Sankey Road, 26/3A, Bangalore – 560052, Karnataka to
the present address.
OPERATIONAL REVIEW:
The Company has
achieved a turnover of Rs 868.900 millions as against the previous year
turnover of Rs 832.000 millions showing an increase of about 4.43% increase in
sales over previous year.
The sharp increase in the global prices of all materials, specially Zinc ,
which is the critical raw material for the battery industry, one of their key
segment has affected in the overall off-take of battery jackets. In the food
can segment, the prices of key raw materials viz., steel and tin plate have
hardened in the last three years and there has been an average price increase
of about 8%to 10%. Further they have to bring down the prices in the battery
segment to support battery industries between 5% to 10% and in line with the
market conditions.
During the year, the interest cost has increased to Rs 60.500 millions compared
to Rs 44.400 millions in the previous year. The main reason for the increase
was that in the previous year by virtue of interest relief granted on account
of the one time settlement agreement entered with Stressed Assets Stabilisation
Fund the company had not made provision in the books for the interest for
second half year of the company. Further during the year, the company received
additional working capital limits from the Bankers to bridge the working
capital gap as assessed by the banks which resulted in increase in interest
cost.
In spite of the pressure on margins, the profitability has been maintained
mainly due to the cost effective measures taken by the company by improving the
machine efficiency, material utilization and productivity.
With the growing thrust given by the Government of India for the processed food
industry, the Company expects to capitalize on the growth opportunities for
food cans business. The changing life styles of consumers and rising disposable
income of the growing middle class have contributed to expanding market for
branded food, health food and convenient food. With entry of large corporate
giants in retail sector, tremendous growth opportunities for food packaging
sector appears likely.
The Company has participated in various International / National exhibitions in
order to promote its products globally.
The Company expects an improved performance in the current year as the
prospects of food cans and export business seem to be comparatively
favourable.
With the
continuous focus on quality improvement, raising operational efficiencies and
cost reduction measures across the business, the company expects an improved
growth during the current year. The highlights of the industry trend and the
opportunities ahead for the company is discussed in detail in the Management
Discussion and Analysis Report attached as Annexure - D to this report.
EXPORTS:
Presently, the exports are mainly in battery segment and with the increase
of zinc prices there was a drop in export market also .The company is of the
view that the situation would improve in the coming months and is confident of
increasing its exports in the coming financial year.
CHANGES IN CAPITAL STRUCTURE:
During the year
under review, with the exercise of the conversion option in respect of 2600000 warrants
issued by the company to three investors on preferential basis at a premium of
Rs 40/- per warrant, the company allotted 2600000 equity shares of Rs 10/- each
to the warrant holders on 28th December 2006. Consequent upon the allotment of
these shares, the paid up capital of the Company stands increased to Rs 89.998
millions.
JOINT VENTURE:
The Joint Venture
Company formed between Shetron Ltd and Metropak A/s. Denmark for the
manufacture of SAF KAPS on a 50:50 basis has started its commercial operations
in the month of April 07. During the year, Glud and Marstrand A/S, Denmark, a
Scandinavia's largest producer of metal packaging has acquired Metropak A/S.
The Company is confident that the JV would benefit from the synergies of the
partners, especially in the technical and global best practices brought in by
Glud and Marstrand and the established capabilities of Shetron in the domestic
market as well as export markets.
AWARDS AND LAURELS:
The company has
bagged the 'Award of Excellence' for the fourth consecutive year in 2006 issued
by IMDA, USA (International Metal Decorators Association) in recognition of the
excellence in quality for printing . Each year the IMDA conducts a Quality
Contest to recognize the skillful achievements of the metal decorating
industry. Entries from around the globe are judged in eight categories with the
best entry given the Grand Award.
The Company is one among the selected 400 Small-Cap companies by Dalal Street
Investment Journal (DSIJ), the largest circulated fortnightly investment and
personal finance magazine of 21 years repute in its first edition of their
SMALL CAP-400 annual compendium, a specialised and informative resource guide
for investors, broking houses, portfolio managers, academics and financial institutions.
This compendium will RANK these 400 companies based on four time tested
parameters of Sales/market Cap/Net Profit and Dividend (adjusted for FV)
MANAGEMENT DISCUSSION AND ANALYSIS
REPORT:
OVERVIEW:
The financial statements
have been prepared in compliance with the requirements under Companies Act 1956
and Generally Accepted Accounting Principles (GAAP) in India,. There are no
material departures from prescribed accounting standards in the adoption of the
accounting standards. The management of SHETRON Limited accepts responsibility
for the integrity and objectivity of these financial statements, as well as for
various estimates and judgments used therein. These estimates and judgements
relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect in a true and fair
manner, the form and substance of transactions and the state of affairs and
profits for the year.
ECONOMY, INDUSTRY STRUCTURE AND
DEVELOPMENTS IN FOOD CANS AND BATTERY SEGMENTS:
India's economy recorded a significant growth during the Tenth Plan period- GDP
grew 8.5% CAGR against a target of 8% due to booming manufacturing and service
sectors and a reasonable growth in the agricultural sector.
The GDP growth triggered an increase in the country's per capita income, while
low interest rates fuelled increased demand. A combination of economic growth
and the Government's initiatives in the area of Food Processing not only
translated into significant growth in food packaging industry but also inspired
structural changes in the metal packaging sector.
With increasing
competition between products and brands world over, the differentiation between
products and brands in the same market segment has become minimal. In such a
scenario, packaging has become a significant differentiator for the consumers
world over. All the product manufacturers and brand promoters are focusing on
packaging for recognition and recall for realizing higher sales apart from
ullering convenience and safety of the product. Every Company is focusing on
enhancing their packaging in terms of aesthetics, designs, shape, ideas,
logistics in terms of manufacturing to consumer user friendly dispensation.
Packaging has become a significant strategic tool for creating perceived brand
value that would lead to value-selling. Today, the global packaging industry is
estimated to be US $ 580 billion, growing at around 5% per annum.
India's processed food is fast becoming the flavour of the season worldwide.
With increasing sophisticated consumers and working women demand for processed
food and increase in disposable income, the consumers are prepared to pay more
for convenience. Further key indicators such as changing demographics, rise in
income levels, increasing credit card uptake and the consumer retail boom will
also contribute to the growth. In such a scenario, the metallic packaging is
ideally positioned because of its unique properties like high shelf life,
tamper proof, resistant to ultra-violet rays, barrier properties, stackability,
eco-friendliness and product durability.
The Ministry of Food Processing Industries, Government of India has envisioned
a 3- fold growth of the processed foods industry by 2015, complimented through
many encouraging policies to catalyse growth. The Food and Safety Standards
Bill was passed by Parliament in 2006. The Union Budget 2007 and the Foreign
Trade Policy announced in April 2007 have made numerous policy changes to
encourage the agro sector to facilitate India's move towards becoming a Food
Factory.
The key addressable categories for metal cans are mango-pulp, mushrooms,
cucumbers/gherkins, marine products and cashews. These segments are growing at
a CAGR of around 6% CAGR and comprise only 27% of the total agri-exports
market.
India's coffee exports are also expected to grow at 3% CAGR. Instant coffee's
hygroscopic nature and long life requirement will necessitate its continued
packaging in metal cans and hence coffee tins are expected to grow at the same
rate. The major customers of instant coffee are Russia, CIS Countries, UK and
Australia. The remarkable advantage of using tin packaging for instant coffee
is with respect to the conservation of volatile aromatics, heat-sensitive
ingredients,colour,taste,original shape,texture and the preservation of the
nutritional value, as well as fast rehydration before use.
The Battery industry is presently dominated by the Dry Cell Industry and in
India, Zinc Carbon batteries comprise nearly 99% of the total dry cell
market.
The Zinc Carbon batteries that have grown at a CAGR of 7.4% over the last 5
year has grown only by 5% in FY 2006 over, the previous year and is expected to
grow at the same rate in the short to medium term. The metal jackets constitute
approximately 33% of the total Zinc Carbon battery jacket market in India with
the remaining comprising of paper jackets. This share is expected to remain
constant. The total market size of metal jackets and battery ends are estimated
at INR 950 Million. This market is expected to grow at a CAGR of 50 in volume
terms for the next two years.
The demand for Zinc Carbon batteries is dependent on the user industries with a
majority of batteries are being used in flashlights. However, this is expected
to change with the increasing sale of other electronic items such as FM Radios,
TVs and DVD players which are the encouraging signs for battery sales.
Currently the Battery Industry is facing recession due to high input cost and
is expected to show signs of improvement in the coming months.
The critical challenges facing company are to increase the scale of operations,
improve efficiencies, establish a very strong development focus and be able to
deliver value added products to its customers.
SEGMENT WISE PERFORMANCE:
The Company
products constitute metal packaging and hence there is no separate disclosure
on segment reporting.
The performance of the Company is marginally better compared to the previous
year, due to slight decline in the battery jackets business owing to the rising
input costs of battery manufacturers both domestically and overseas. However,
marginal growth was witnessed in Can business and the growth would have been
better but for the temporary decline faced in general by Indian coffee and
dairy producers coupled with stagnancy in sales to gherkin producers.
OPPORTUNITIES, THREATS AND
CONCERNS:
Subject had a
humble beginning, but with clear focus to become a true value partner of the
global metal packaging sector by addressing its industry requirements with
unique quality standards.
With this commitment and a well managed blend of knowledge, human assets and
continuous quality improvement initiatives the company is on its way to become
a leading metal packaging company in India.
The Company sees an exciting opportunity on the back of continuing strong
demand for food processing products, supported by robust economic growth
outlook. In this changed environment newer challenges have become a rule rather
than an exception. Be it critical issues like compliance, market share, product
stability, longer product shelf life for the products it produce.
The fluctuations in the prices of tin plate in the international market and the
shrinking margins, foreign currency fluctuations - all pose a constant threat
to metal packaging.
Significant contribution made by the company to the metal packaging sector
through innovative solutions has helped the company to overcome the challenges
thrown up by a rather competitive environment. Leading brands in food
processing sector in India have benefited from the packaging solutions provided
by SHETRON.
While India has potential to become 'Food Factory to the World' and packaging
industry is poised for growth based on the processed food industry growth, the
company is currently focused its efforts to increase its existing capacity
utilization, enhance capacities with main thrust in food can business, both
organically and in-organically, and various strategies to expand its operations
are under way,
FINANCIAL
AND OPERATIONAL PERFORMANCE:
Higher productivity, aggressive cost control together with
debt restructuring have been the key areas for improving the operational
performance. The financial performance has been dealt with in the Directors' Report.
FIXED
ASSETS:-
·
Leasehold Land
and Development Buildings
·
Plant and
Machinery
·
Furnitures,
Fixture and Equipments.
·
Vehicles
OTHER INFORMATION:-
|
Contingent Liabilities |
31.03.2007 (Rs. In
millions) |
|
|
|
|
Letters of Credit
established |
183.878 |
|
Inland
Bills/LC's Discounting outstanding and guarantees given by bank on behalf of
the company |
7.855 |
|
Guarantees given
by the Company in favour of Collector of Customs |
45.000 |
|
Future lease
rentals payable |
2.426 |
|
Estimated amount
of contracts remaining to be executed on capital account net of advance and
not provided for. |
102.058 |
The company has
imported certain Plant and Machinery during the year under EPCG Scheme. The licensing
authority has fixed the export obligation of Rs. 69.052 millions to be
completed over a period of 8 years.
WEBSITE DETAILS
ATTACHED :
GROUP PROFILE :
The Company was incorporated in
1980 and commenced production in 1984 for the manufacturing of Metal Cans for
Food and Dry Cell Battery Jackets / Components.
Shetron Technology focuses on two
vital sectors - FOOD and ENERGY. And manufacturers of Metal Packaging,
Printed Metal Sheets and Dry-cell Battery Jackets and components, subject is
rightly 'The Name Behind The Names'.
With world class manufacturing facilities, Subject offers
products of international standards. The Company is
the largest integrated Producer of Dry Cell Battery Jackets in the South East
Asian region and a single source supplier for many Multinational Industries.
During the last over 2 decades,
the Company has attained the number one position as the most preferred supplier
to a large number of leading organizations.
PRODUCTS :
Subject is an organisation
dedicated to excellence in packaging … packaging that protects, preserves and
promotes products … packaging that attracts… packaging that offers convenience
… packaging that offers value.
An ISO 9001:2000 company, Subject has facilities that match
some of the world’s best can-making units. The growing list of their satisfied
clients, which includes leading names in food and food processing industry,
reiterates their claim that subject is “The Name Behind The Names”.
Ø
Dry Cell Battery Jackets :
Subject is India’s leading name in the field
of Dry Cell Battery Jackets. An ISO 9001:2000 company, with facilities that
match some of the best units in the world, Subject has made a name for itself
as the best source for dry cell battery jackets. Making of battery
jackets at the company starts with the selection of quality sheets. Printing on
metal sheets with clarity and precision is an art that finds expression at the
company. The printing line at The company has a range of machines designed to
bring out best on metal printing.
Ø
Metal Food Cans :
As a leading name in Metal Packaging, the
company offers a wide range of well-designed Food Cans for packing a variety of
products.
Fibre Foils Technology encompasses "The
Power of Packaging" comprising Fibre Drums, Paper Cores, Textile Tubes,
Film Cores, Composite Cans and Paper Sleeves.
With world class manufacturing
facilities, at Khopoli in Maharashtra State and Bangalore in Karnataka State,
Fibre Foils offers products of international standards, in a wide range of
sizes and types to meet the requirements of various industries.
Major users of these products
include manufacturers of Snack Foods, Spices, Agricultural Seeds, Bulk Drugs,
Chemicals, Paper, Plastic Films, Textile Yarns and other products.
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.42.90 |
|
UK Pound |
1 |
Rs.83.74 |
|
Euro |
1 |
Rs.66.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|