MIRA
INFORM REPORT
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Report Date : |
02.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUDAL INDUSTRIES LIMITED |
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Registered Office : |
A 5,MID Cambad Industrial Estate, Mumbai Nashik Highway,Nashik-422010, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
08.08.1979 |
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Com. Reg. No.: |
021541 |
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CIN No.: [Company
Identification No.] |
L21541MH1979PLC021541 |
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Legal Form : |
Public Limited Liability Company. The Company Shares are Listed on
Stock Exchange. |
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Line of Business : |
Manufacturer of Aluminium Extrusions and Aluminium Alloys. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Poor |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Exist |
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Comments : |
The company is a sick unit and trying to come out of it due to some
positive results. Its payments are slow and delayed. Financial position is moderate
having substantial accumulated losses. The company can be regarded for any business dealings on safe and
secured trade terms and conditions only. |
LOCATIONS
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Registered Office : |
A 5,MID Ambad Industrial Estate, Mumbai Nashik Highway,Nashik-422010, Maharashtra, India |
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Tel. No.: |
91-253-2382396 2382397/2382297 |
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Fax No: |
91-253- 2382197 |
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Email: |
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Website : |
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Head Office: |
26, Nariman Bhavan, 227, Nariman Point, Mumbai-400021. |
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Tel. No.: |
91-22-22023845 / 22024053 / 22022745/ 22026293 |
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Fax No: |
91-22-22022893 |
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Email: |
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Website : |
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SALES OFFICES: |
PUNE Email : pune@sudal.co.in BANGALORE No. 68, Industrial
Area, Yeshwantpur, Bangalore 560 022. Tel : (91-80)
3371121 Email :
bangalore@sudal.co.in |
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Works: |
VADODARA 502, Centre Point,
R.C. Dutt Road, Alkapuri, Vadodara 390 005. Tel : (91-265)
337462/330407 Email :
baroda@sudal.co.in |
DIRECTORS
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Name : |
Mr.C.M.Maniar |
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Designation : |
Director |
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Name : |
Mr.M.O.Shah |
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Designation : |
Director |
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Name : |
Mr.Deokinandan Ajitsaria |
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Designation : |
Director |
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Name : |
Mr.Sudarshan S.Chokhani |
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Designation : |
Joint Managing Director |
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Name : |
Mr.Shriram C.Chokhani |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr.K.G.Inamdar |
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Designation : |
Director |
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Name : |
Mr.E.R.Sheshadri-Nom Syn Ba |
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Designation : |
Director |
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Name : |
Mr.Rajendra Somani |
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Designation : |
Director |
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Name : |
Mr.S.Kamal Surya-Nom ICICI |
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Designation : |
Director |
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Name : |
Mr.Satyanarayan Saraf |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.K.G.Inamdar |
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Designation : |
Company Secretary |
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Name : |
Mr.S.Malhotra |
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Designation : |
Nominee (Syndicate Bank) |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Aluminium Extrusions and Aluminium Alloys |
GENERAL
INFORMATION
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Bankers: |
Not Available |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- Each |
Rs.60.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4415700 |
Equity Shares |
Rs. 10/- Each |
Rs.44.157 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
44.200 |
44.200 |
44.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
57.300 |
29.500 |
20.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
101.500 |
73.700 |
64.200 |
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LOAN FUNDS |
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1] Secured Loans |
95.300 |
79.200 |
98.200 |
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2] Unsecured Loans |
07.500 |
07.700 |
06.200 |
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TOTAL BORROWING |
102.800 |
86.900 |
104.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
204.300 |
160.600 |
168.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
134.800 |
142.300 |
142.900 |
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Capital work-in-progress |
13.400 |
00.100 |
00.000 |
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INVESTMENT |
00.100 |
00.100 |
00.100 |
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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 |
82.900
|
101.900 |
104.600 |
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Sundry Debtors |
105.700
|
106.300 |
113.000 |
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Cash & Bank Balances |
00.900
|
01.800 |
02.700 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
12.400
|
15.600 |
16.500 |
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Total
Current Assets |
201.900
|
225.600 |
236.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
138.000
|
202.600 |
206.600 |
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Provisions |
07.900
|
04.900 |
04.600 |
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Total
Current Liabilities |
145.900
|
207.500 |
211.200 |
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Net Current Assets |
56.000
|
18.100 |
25.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
204.300 |
160.600 |
168.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
782.800 |
791.400 |
516.600 |
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Other Income |
00.200 |
00.100 |
10.900 |
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Total Income |
783.000 |
791.500 |
527.500 |
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Profit/(Loss) Before Tax |
34.600 |
16.400 |
15.400 |
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Provision for Taxation |
0.400 |
0.400 |
0.400 |
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Profit/(Loss) After Tax |
34.200 |
16.000 |
15.000 |
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Expenditures : |
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Manufacturing Expenses |
16.700 |
17.300 |
17.200 |
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Administrative Expenses |
23.700 |
16.700 |
17.300 |
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Raw Material Consumed |
495.700 |
535.600 |
350.400 |
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Increase/(Decrease) in Finished Goods |
(09.300) |
(03.200) |
(16.100) |
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Interest |
28.200 |
26.300 |
23.500 |
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Power & Fuel |
41.400 |
41.800 |
29.200 |
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Depreciation & Amortization |
04.000 |
03.600 |
02.900 |
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Other Expenditure |
129.400 |
130.600 |
87.700 |
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Total Expenditure |
748.400 |
775.100 |
512.100 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
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|
30.06.2008 |
|
Type |
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|
1st
Quarter |
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Sales Turnover |
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|
182.600 |
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Other Income |
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|
0.000 |
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Total Income |
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|
182.600 |
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Total Expenditure |
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|
162.600 |
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Operating Profit |
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|
20.000 |
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Interest |
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|
08.700 |
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Gross Profit |
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|
11.300 |
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Depreciation |
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|
01.100 |
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Tax |
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|
01.300 |
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Reported PAT |
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|
08.900 |
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
0.00 |
0.00 |
0.00 |
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Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current
Ratio |
0.83 |
0.81 |
0.77 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.70 |
2.86 |
1.96 |
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Inventory |
8.47 |
7.66 |
5.82 |
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Debtors |
7.38 |
7.22 |
5.18 |
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Interest
Cover Ratio |
2.23 |
1.62 |
1.24 |
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Operating
Profit Margin(%) |
8.53 |
5.85 |
6.21 |
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Profit
Before Interest And Tax Margin(%) |
8.02 |
5.40 |
5.65 |
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Cash
Profit Margin(%) |
4.88 |
2.48 |
1.59 |
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Adjusted
Net Profit Margin(%) |
4.37 |
2.02 |
1.03 |
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Return
On Capital Employed(%) |
44.73 |
29.95 |
21.19 |
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Return
On Net Worth(%) |
75.08 |
34.12 |
11.30 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated in the year 1979 for the
manufacture of aluminium extrusions and aluminium alloys. The company, formerly
known as Sudarshan Aluminium Industries, was promoted by S C Chokani in
association agreement with Hindustan Aluminium Corporation for providing
technical assistance. The Company has already awarded a Licence for the Quality
Systems Certification in accordance with IS 14002/ISO 9002 by the BIS.
The company's products are aluminium extrusions and alloys.
The company's commercial production started in the year 1981. During 1985-86,
the performance of the company was unsatisfactory due to under-utilisation of
capacity, shortage of raw material and labour strike, etc. The situation
slightly improved during the next two years but again ran into rough weather
during 1988-89 due to the increase in the cost of raw materials and inputs,
drastic reduction in selling prices and increase in excise duty. The
intermittent and inadequate supply of aluminium ingots also added to the
problems. Consequently the company incurred loss continuously.
The company's products find extensive usage in agricultural, transportation, electrical,
electronics, consumer durables, defence, tubing, irrigation tubing, pump body
extrusions, airways, shipping, etc. The company's client list consists of
companies like BHEL, TELCO, L and T, Philips, Siemens, Mahindra and Mahindra,
Godrej, Bajaj Auto, Crompton Greaves, ABB and Kirloskar Electrodyne, etc. The
company has technical collaboration with Reynolds (Europe). The Reynolds group
is the world's largest producers of Aluminium and its varied products. Their
technical assistance is to enable the company to reduce costs, increase its
production and productivity.
During 1990-91, the company diversified into downstream products. The company
started manufacturing irrigation and sprinkler systems. It also manufactures
drip irrigation systems and value added products like heat exchanger tubing,
truck body kits, etc.
The company has developed Extruded Sections for sophisticated end users like
BARC,HAL,etc and also in down stream activities by manufacturing fabricated
components, Truck Body Kits etc which gives more value for its extruded
product. The company is progressing in implementing quality systems as per QS
9000 and new IS 9001.
DIRECTOR’S
REPORT
MANAGEMENT DISCUSSION and
ANALYSIS:
During the year , though the company has shown better performance but it has
affected during the year from power cuts/load shedding, irregular raw material
supplies and its frequent price changes by primary producers apart from non
re-reimbursement of the interest by the customers though agreed to by
them.
However, with customer profile coupled with better product - mix and with
better price realisation the company could sell and earn more in a most
competitive market.
Had the workers achieved the production and productivity as per the terms and
norms specified in the agreement (though re-assured for co-operation for
increasing production and productivity), the company would have achieved better
operational performance.
EXPANSION:
The Company has plans to go into various activities and add more Extrusion Presses
with a view to meet with the growing range of market and products.
Accordingly,
the Company is expanding its casting facilities,adding certain equipments and
has already placed the order for 3rd extrusion press and project is in
progress.
OUTLOOK AND OPPORTUNITIES:
The strengths of the Company are varied and sound base of the customers,
complete attention for customers' delight and locational advantage whereby the
company can have an edge to get better and higher realisation.
The growth in End-User Industries i.e. Automobiles, Electrical Equipments,
Architectural, Consumer Goods and Infrastructure is going to give a further
boost to the prospects of more opportunities to the company to open up its
operating capacities and horizons which are already coupled with built up
goodwill and continued support of reputed and multinational customers.
The ongoing change in global scenario,economic and industrial outlook would
keep pace in demand for company's products which would facilitate the Company
to streamline the pricing strategy.
Presently the Company is only in one segment i.e. Aluminium Extrusions and its
Down Stream Value Added Products.
BIFR SCHEME AND OUT OF PURVIEW:
At Bench review hearing of BIFR held in Mumbai on 22.11.2007, the Syndicate
Bank was directed to submit a Draft Modified Revised Scheme by taking into
consideration,among other things, the issue of shares on preferential basis to
the promoters of the company whereby the company's net worth would become
positive by 31.03.2008 based on profit projections for 2007-2008, instead of
2008-2009. Accordingly, the Company had submitted revised DMRS, in consultation
with SB which was submitted by Syndicate Bank by the end of March, 2008 to BIFR
for its onward consideration. However, eventually, the Company's net
worth(exceed the accumulated losses) has become positive from its profits
earned in the year ended 31/03/2008 itself and hence it is not required to the
company to wait for the Scheme getting sanctioned by BIFR and to operate upon
it.
Therefore, the Company is applying to BIFR and shall request the Board to issue
an order that their company has ceased to be a Sick Industrial company within
the meaning of section 3(1)(o) of the Sick Industrial Companies (special
provisions) Act and no longer requires to be dealt with the Board and hence to
close their case.
AS
PER WEB SITE DETAILS:
An ISO 9001 Company, incorporated in 1979 with a project to
manufacture sophisticated Aluminium Extrusions for a wide range of Industrial
End Uses with an installed capacity of 8900 Tons Per Annum, the companys plant
located at A-5, M.I.D.C., Ambad Industrial Area, Mumbai-Nashik Highway, Nasik,
which is easily accessible from all the major cities of the country.
Sudal's more than 26 years of dedicated service to the
customers has enabled it to earn the trust as a reliable extruder of Quality
Extrusions, timely supply at economical price.
The Plant is equipped with complete sophisticated Aluminium Extrusion production facilities with Schloemann Siemag Extrusion Press of 1650 Tons of U.S.A and a 900 Tons Extrusion Press with all the other allied equipments. It also has its own Billet casting Shop, Die and tool shop and Quality Assurance Lab with Spectrometer of Jarrel Ash, U.S.A. and other testing equipments.
Already have more than 6000 dies of various extrusion/profiles for different leading industrial users and is regularly adding more dies and alloys according to customers designs and specifications.
Sudal has a team of qualified and experienced engineers and many of them have been trained abroad at Reynolds (Europe) Limited, a world renowned Aluminium Company, as also they are exposed to latest extrusion technology by attending Extrusion Technology Seminars organised by Aluminium Extrusion Council, U.S.A.
Dedicated to exceed customers expectation and devoted to customers delight, SUDAL' s business strategy is SERVICE, QUALITY and CUSTOMER RELATIONSHIP MANAGEMENT (CRM).
The group has experience of 3 decades and is recognised to be a preferred supplier of quality extrusions.
SUDALS' SALIENT FEATURES:
·
ISO 9001 accredited manufacturing unit
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Customised Aluminium Profile Developer
·
Strong Partnership Commitment
·
26 Years of enduring presence
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Latest Technology
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Engineering Assistance
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Customers faithful, continued and green channel extruder
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Quick response and shortest delivery time
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Consistent On-Time Delivery
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Manufacturing capacity over 8900 tons per annum
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Exports to all major countries
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Manufacturing area over 20,000 Sq.Mts.
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Highly professionalised work environment
Research and Development Achievements:
Plant is recognised as R and D Unit by
Department of Science and Industrial Research, Government Of India.
New Intricate sections are developed for
automobile sector and for various other end users
Developed import substitute 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 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.46.96 |
|
UK Pound |
1 |
Rs.83.91 |
|
Euro |
1 |
Rs.66.36 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
14 |
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 |
|