MIRA
INFORM REPORT
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Report Date : |
23.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SYNERGIES CASTINGS LIMITED |
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Registered Office : |
Flat No.4/A, Sampathji Apartment, 6-3-855/10/A, Saadat Manzil, Ameerpet,
Hyderabad – 500016, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Year of Establishment: |
24.01.2005 |
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Com. Reg. No.: |
01-45171 |
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CIN No.: [Company
Identification No.] |
U27310AP2005PLC045171 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNS04027C |
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PAN No.: [Permanent
Account No.] |
AAICS7410H |
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Legal Form : |
A Closely Held
Public Limited Liability Company |
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Line of Business : |
Manufacturer of
Aluminium Alloy Wheels and Auto Parts. |
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 1104000 |
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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.
Payments are usually correct and as per commitments. The company can be
considered normal for business dealings at usual trade terms and condition. |
LOCATIONS
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Registered Office : |
Flat No.4/A, Sampathji Apartment, 6-3-855/10/A, Saadat Manzil,
Ameerpet, Hyderabad – 500016, Andhra Pradesh |
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Email: |
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Corporate Office : |
6-3-609/189, Anand
Nagar, Khairtabad, Hyderabad – 530004, Andhra Pradesh, India |
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Tel. No.: |
91-891-2587181 |
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Fax No.: |
91-891-2587481 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No. 3 and 4, Visakhapatnam Special Economic Zone Duvvada, Visakhapatnam – 530 046, Andhra
Pradesh, India |
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Tel. No.: |
91-891-2587181 |
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Fax No.: |
91-891-2587481 |
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E-Mail : |
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Factory : |
Plot No.53, Dasapalla Hills, Visakhapatnam – 500003, Karnataka, India |
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Head Office : |
9 -19-4, CBM
Compound, Visakhapatnam, Andhra Pradesh |
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Branch: |
USA Address: 41148 Williamsburg BLvd, Canton, MI 48187 Tel No.: 1-3302245371 Fax NO: 1-8067347517 Email: info-usa@synergies-india.com
Europe: Address: Dieplaan, 15 bus 15 B- 3600, Genk, Belgium Tel No: 32 89 247 649 Mobile : 32 486 333 970 |
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Plants : |
Alloy wheel
plant
Plot 3 / 4,
Visakhapatnam Export Processing Zone, Duvvada – 533 046, Andhra Pradesh,
India Tel. No.
91-891-2587181 Fax No.
91-891-2587481 E-Mail: synergies_dooray@yahoo.com Website: http://www.synergies-india.com Chrome
plant
Plot No. E1 and E2
VSP Export Processing Zone, Duvvada, Visakhapatnam – 530046, India |
DIRECTORS
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Name : |
Mr. Kieran
Francis O Connnor |
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Designation : |
Chairman |
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Name : |
Mr. Chandra
Shekhar Movva |
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Designation : |
Managing Director |
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Name : |
Dr. S. Vijay
Kumar |
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Designation : |
Director |
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Name : |
Dr. Prasad Rao
Ravella |
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Designation : |
Director |
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Name : |
Mr. S. V.
Jagannath |
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Designation : |
Nominee of ICICI Bank |
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Name : |
Mr. R. M. Gantra |
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Designation : |
Nominee of IDBI Bank |
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Name : |
Mr. R.
Venkateswaran |
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Designation : |
Nominee of Exim Bank |
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Name : |
Mr. Manoj Khaitan |
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Designation : |
Executive Director |
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Name : |
Mr. A. V. R.
Narayana Rao |
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Designation : |
Executive Director |
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Name : |
Mr. Christian Kumar |
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Designation : |
Director |
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Name : |
Mr. Anand Bodapatty |
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Designation : |
Director |
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Name : |
Mr. P Panduranga Rao |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacture of
Aluminium Alloy Wheels and Auto Parts. |
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Products : |
·
Aluminium
Alloy Wheels ·
Auto Parts |
GENERAL
INFORMATION
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Customers : |
·
Ford ·
Mahindra ·
Tata ·
GM |
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No. of Employees : |
200 |
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Bankers : |
· ICICI Bank · State Bank of India · Andhra Bank · Indian Overseas Bank · IDBI Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Water House
Chartered
Accountants |
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Address : |
6-3-550, II
Floor, LB Bhavan, Somajiguda,
Hyderabad – 400082, Andhra Pradesh |
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Memberships: |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
· USA Synergies America Inc, 12257, Florence Avenue, Santa Fe Springs CA 90670, USA. · Europe Synergies Europa Gmbh, Johann Klein Strasse 22, 67227 Frankenthal Germany · India Stellar Wheels Limited, 6-3-609/189 Anand Nagar, Khairtabad, Hyderabad, Andhra Pradesh |
CAPITAL STRUCTURE
Authorised
Capital :
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No. of Shares |
Type |
Value |
Amount |
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70000000 |
Equity Shares |
Rs.10/-each |
Rs.700.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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16440000 |
Equity Shares |
Rs.10/-each |
Rs.164.400 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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164.400 |
0.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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111.600 |
0.100 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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276.000 |
0.600 |
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LOAN FUNDS |
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1] Secured Loans |
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136.300 |
0.000 |
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2] Unsecured Loans |
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42.200 |
0.000 |
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TOTAL BORROWING |
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178.500 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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454.500 |
0.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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14.700 |
0.000 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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50.100 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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262.400 |
0.000 |
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Sundry Debtors |
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147.500 |
0.200 |
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Cash & Bank Balances |
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8.500 |
0.300 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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39.400 |
2.500 |
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Total
Current Assets |
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457.800 |
3.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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103.100 |
2.800 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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103.100 |
2.800 |
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Net Current Assets |
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354.700 |
0.200 |
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MISCELLANEOUS EXPENSES |
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35.000 |
0.400 |
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TOTAL |
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454.500 |
0.600 |
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PROFIT &
LOSS ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales Turnover
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541.800 |
0.200 |
Other Income
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0.000 |
0.000 |
Total Income
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541.800 |
0.200 |
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Profit/(Loss) Before Tax
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22.400 |
0.200 |
Provision for Taxation
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0.700 |
0.100 |
Profit/(Loss) After Tax
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21.700 |
0.100 |
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Export Value
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N.A. |
N.A. |
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Import Value
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N.A. |
N.A. |
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Total Expenditure
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512.500 |
NA |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
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0.65 |
0.00 |
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Long Term Debt Equity Ratio |
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0.65 |
0.00 |
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Current Ratio |
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4.35 |
1.07 |
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TURNOVER RATIOS |
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Fixed Assets |
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53.52 |
0.00 |
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Inventory |
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3.00 |
0.00 |
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Debtors |
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5.33 |
0.00 |
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Interest Cover Ratio |
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4.25 |
0.00 |
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Operating Profit Margin (%) |
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7.45 |
0.00 |
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Profit Before Interest and Tax Margin (%) |
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7.45 |
0.00 |
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Cash Profit Margin (%) |
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5.52 |
0.00 |
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Adjusted Net Profit Margin (%) |
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5.52 |
0.00 |
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Return on Capital Employed (%) |
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13.96 |
100.00 |
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Return on Net Worth (%) |
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15.40 |
16.67 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
The company has set
up an Export Oriented Unit in collaboration with Dooray Corporation, Seoul (13.20
millions Equity) for the manufacture of Aluminium Alloy Wheels and Auto Parts
with an installed capacity of 670,000 wheels.
Generic Names of
the Principal Products of the company are:
· Aluminium Alloy Steel
Operations
The global macroeconomic
changes significantly impact the company since it is oriented towards a
protection free international market. In addition the automobile industry is
always significantly impacted in times of sever recession as in the case of US
markets during the past six quarters. The events of September 11 only
exacerbated an already poor retail sentiment for durables such as motorcars.
The fierce price was between major automakers and various cost intensive
promotional ideas only aggravated the situation. The company too has been
impacted by this phenomenon. This resulted in lower sales in the US market and
consequently sub optimal capacity.
WEBSITES DETAILS:
Innovative in design, uncompromising in quality, and a firm commitment to on-time delivery, SYNERGIES embodies the zeitgeist of the automotive industry.
SYNERGIES is India’s FIRST global scale, 100% Export Oriented world-class Aluminium Alloy Wheel manufacturing Company established in Visakhapatnam, India. Harnessing the power of cutting edge Low Pressure Die Casting (LPDC) and customized Copper-Nickel-Chrome electroplating technology, they manufacture and finish Aluminium alloy wheels and other Aluminium cast components.
They are amongst the few companies in the world that can manufacture and chrome plate large wheels up to 24” to OEM standards.
Their network of design,
engineering, sourcing, warehousing, logistics and sales and service offices
spanning three continents enables them to deliver the benefits of global
sourcing and next-door service to their customers.
Synergies is constantly evolving to meet customers' varying requirements. From base alloy wheels to polished and chrome plated wheels, they are an integrated supplier who can deliver all finishes and associated accessories. Their innovative design and engineering team develops and launches more than 10 - 15 new designs every year for a wide range of vehicles, from cars to jeeps and light trucks to SUVs.
They manufacture wheels of various diameters 12? to 24?, widths, offsets, designs and finishes to suit all vehicles.
They are amongst the select few who can manufacture special OEM grade chrome wheels up to 24?.
Building on their current manufacturing skills and engineering strengths, they have recently forayed into precision castings for other automotive and engineering companies. They offer high-end Chrome plating on Aluminium and Plastics. They also provide engineering services such as design, engineering analysis, development, prototyping and testing.
Synergies doesn't just manufacture products, it delivers complete product solutions.
They customize and optimize designs for strength, aesthetics and road
conditions as per the customers' needs.
This effort is spearheaded by their specialized DEA team that comprises sketchers, draftsmen, designers and engineers located worldwide. The team develops concepts in tandem with the vehicle's positioning in the market.
These concepts are developed into full-scale designs, which are further engineered and optimized to meet customer-specific technical requirements. Synergies has more than 120 designs in its collection and 10 - 15 new designs are added annually.
Their engineering services division provides end-to-end solutions that cater to the automotive and engineering industries.
Their product design services include concept design, engineering analysis, tooling, prototyping, product manufacturing, testing and supply. They understand the entire APQP process and deploy cutting edge concepts such as DFMEA, DFM, PPAP, FEA and VE to ensure stability and reliability in their development processes, as well as ensuring an optimal design for manufacturability.
Milestones :
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November 2005 |
Ford Q1 Certification |
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August 2005 |
ISO/TS 16949 Certification |
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September 2004 |
General Motors, USA Cadillac Escalade 22?Wheel |
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July 2004 |
First global Chrome wheel contract with General Motors USA for Hummer H2 Project. |
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November 2003 |
24?LPDC wheel successful cast and plated |
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April 2003 |
First tyre –wheel franchise pilot outlet? TRAXXZONE? Opened |
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December 2002 |
ISO 14001
environmental certification from RW-TUV, German |
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June 2002 |
First full service supplier
global contract from Ford Werke AG |
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December 2001 |
QS 9000 certification |
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November 2001 |
22? LPDC wheel successfully cast and Plated |
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March 2001 |
First global OEM contract with Ford Werke AG |
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October 2000 |
Chrome plant commissioned |
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March 2000 |
VIA - Japan Certification |
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December 1999 |
Amongst world's first 20? wheel using LPDC |
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April – May 1999 |
Domestic OEM supply commences |
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March 1999 |
ISO 9002 from RW-TUV , Germany |
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February 1999 |
SFI / TUV certification |
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January 1999 |
Production commences |
Manufacturing Alloy
Wheels
Synergies is constantly evolving
to meet customers' varying requirements. From base alloy wheels to polished and
chrome plated wheels, they are an integrated supplier who can deliver all
finishes and associated accessories. Their innovative design and engineering
team develops and launches more than 10 - 15 new designs every year for a wide
range of vehicles, from cars to jeeps and light trucks to SUVs.
The manufacture wheels of various
diameters 12? to 24?, widths, offsets, designs and finishes to suit all
vehicles. They are amongst the select few who can manufacture special OEM grade
chrome wheels up to 24?.
Building on their current
manufacturing skills and engineering strengths, they have recently forayed into
precision castings for other automotive and engineering companies. They offer
high-end Chrome plating on Aluminium and Plastics. They also provide
engineering services such as design, engineering analysis, development,
prototyping and testing.
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.43.15 |
|
UK Pound |
1 |
Rs.85.08 |
|
Euro |
1 |
Rs.68.10 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
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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 |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
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 |
|