MIRA
INFORM REPORT
|
Report Date : |
15.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ENKEI CASTALLOY
LIMITED |
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Registered Office : |
Gate No.1426,
Village Shikrapuri, Pune-412208, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
19.12.1990 |
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Com. Reg. No.: |
11-59487 |
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CIN No.: [Company
Identification No.] |
L99999MH1990PLC059487 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEE01509E |
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PAN No.: [Permanent
Account No.] |
AABCP0252B |
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Legal Form : |
A Public Limited
Liability Company. The Company’s shares are listed on Stock Exchanges. |
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Line of Business : |
Manufacturing
aluminium alloy die casting, by Gravity and Low Pressure Techniques, mainly
catering to automobile industry |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 3000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having fine track. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company is
doing well. It can be
considered good for any normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered Office : |
GateNo.1426,
Village Shikrapuri, Pune-412208, Maharashtra, India |
|
Tel. No.: |
91-2137-677100 |
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Fax No.: |
91-2137-677130 /
72643 |
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E-Mail : |
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Website : |
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Factory : |
57-58Km Stone,
Delhi, Jaipur, NH-8, Industrial Area, Village Binola, Haryana, India |
DIRECTORS
|
Name : |
Mr. S. Rai |
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Designation : |
Managing Director |
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Name : |
Mr. Junichi
Suzuki |
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Designation : |
Director |
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Name : |
Mr. Tetsuro Masui |
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Designation : |
Director |
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Name : |
Mr. Asis Roy |
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Designation : |
Director |
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Name : |
Mr. A. D.
Harolikar |
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Designation : |
Director |
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|
Name : |
Mr. S. C. Khanna |
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Designation : |
Director |
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Name : |
Mr. Vinay Panjabi |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajeev Sikand |
|
Designation : |
Group CEO |
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Date of
Birth/Age : |
46 years |
|
Qualification
: |
MBA |
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Experience : |
24 years |
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Date of
Appointment : |
03.12.2005 |
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Previous
Employment : |
Motherson Sumi
Systems Limited, Head-International Business |
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Name : |
Mr. K.K. Jha |
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Designation : |
CEO |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B. Sc.
(Engineering) |
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Experience : |
21 years |
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Date of
Appointment : |
15.06.1994 |
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Previous
Employment : |
Maruti Udyog
Limited, Engineer |
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|
|
|
Name : |
Mr. Naishad J.
Purohit |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 30.06.2008]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian |
200160 |
1.82 |
|
Individuals / Hindu Undivided Family |
3599840 |
32.73 |
|
Bodies Corporate |
|
|
|
Institutions |
|
|
|
Mutual Funds / Axis Bank |
906102 |
8.24 |
|
Foreign Institutional Investors |
445512 |
4.05 |
|
Non-Institutions |
|
|
|
Bodies Corporate |
622824 |
5.66 |
|
Individuals |
|
|
|
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million |
999190 |
9.08 |
|
Individual shareholders holding nominal
share capital in excess of Rs. 0.100 Million |
281031 |
2.55 |
|
Clearing Members |
10160 |
0.09 |
|
Directors & their Relatives &
Friends |
2924 |
0.03 |
|
Foreign Collaborators |
3800000 |
34.55 |
|
NRIs/OCBs |
132257 |
1.20 |
|
Total
|
11000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
aluminium alloy die casting, by Gravity and Low Pressure Techniques, mainly catering
to automobile industry |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
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Semi-finished Casting made from aluminium alloys |
Nos. |
|
|
83603 |
|
Wheels (Traded) |
Nos. |
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|
0 |
GENERAL
INFORMATION
|
Bankers : |
Ø Bank of Maharashtra, Industrial Finance
Branch, Pune Ø ING Vysya Bank Limited, F. C. Road, Pune Ø Kotak Mahindra Bank Limited, Pune Ø State Bank of India, IFB Branch, Pune Ø Export Import Bank Of India, Shankarsheth
Road, Pune Ø Axis Bank Limited, J. M. Road, Pune Ø Mizuho Corporate Bank Limited, Mumbai |
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Facilities : |
SECURED LOANS : 31.03.2007
Secured By:
UNSECURED LOANS :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Engineer &
Mehta Chartered
Accountants |
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Associates/Subsidiaries : |
Ø
Enkei
Corporation, Japan Ø
EnkeiThai
Company Limited Ø
Enkei
Thai Moulding Company Limited Ø
Enkei
Asian Trading Company Limited Ø
Enkei
Logistics Limited Ø
Enkei
Audit and Computer Limited Ø
Atlas
Automotive Components Private Limited Ø
Pamela
Trading and Finance Company Private Limited Ø
Silicon
Meadows Designs Limited Ø
Nastic
Trading Private Limited Ø
Chemetall
Rai India Limited Ø
PT
Enkei Indonesia Ø
Enkei
Alluminium Product(China) Company Limited Ø
Enkei
Moulding( Kushan) Company Limited Ø
Enkei
Wheel Corporation, Japan |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000 |
Equity Shares |
Rs.5/- each |
Rs.55.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000 |
Equity Shares |
Rs.5/- each |
Rs.55.000 Millions |
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|
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
55.000 |
55.000 |
50.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
542.300 |
486.877 |
181.860 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
597.300 |
541.877 |
231.860 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1058.200 |
852.584 |
473.851 |
|
|
2] Unsecured Loans |
631.300 |
415.949 |
272.509 |
|
|
TOTAL BORROWING |
1689.500 |
1268.533 |
746.360 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
27.061 |
31.217 |
|
|
|
|
|
|
|
|
TOTAL |
2286.800 |
1837.471 |
1009.437 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2047.700 |
1190.841 |
712.960 |
|
|
Capital work-in-progress |
158.200 |
469.341 |
110.458 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.100 |
0.070 |
0.070 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
350.100 |
274.510 |
116.930 |
|
|
Sundry Debtors |
544.700 |
462.995 |
269.820 |
|
|
Cash & Bank Balances |
63.500 |
13.326 |
7.803 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
197.500 |
152.432 |
96.952 |
|
Total Current Assets |
1155.800 |
903.263 |
491.505 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1004.200 |
640.526 |
236.203 |
|
|
Provisions |
79.100 |
95.364 |
69.589 |
|
Total Current Liabilities |
1083.300 |
735.890 |
305.792 |
|
|
Net Current Assets |
72.500 |
167.373 |
185.713 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
8.300 |
9.846 |
0.236 |
|
|
|
|
|
|
|
|
TOTAL |
2286.800 |
1837.471 |
1009.437 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
3761.400 |
2296.881 |
1223.925 |
|
|
Other Income |
65.300 |
16.312 |
10.434 |
|
|
Total Income |
3826.700 |
2313.193 |
1234.359 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
64.400 |
139.755 |
116.435 |
|
|
Provision for Taxation |
0.900 |
21.695 |
41.030 |
|
|
Profit/(Loss) After Tax |
63.500 |
118.060 |
75.405 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
NA |
225.492 |
54.450 |
|
|
|
|
|
|
|
|
Total Imports |
NA |
568.333 |
102.279 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Materials and Finished Goods |
2265.700 |
1073.305 |
494.181 |
|
|
Personal Expenses |
242.600 |
167.804 |
93.715 |
|
|
Manufacturing Expenses |
665.000 |
612.072 |
340.949 |
|
|
Administrative Expenses |
267.200 |
121.505 |
71.317 |
|
|
Financial Expenses |
13.900 |
77.273 |
49.975 |
|
|
Royalty |
18.900 |
13.262 |
9.369 |
|
|
Depreciation & Amortization |
160.000 |
105.608 |
57.088 |
|
|
Prior Year Adjustment |
0.000 |
2.609 |
1.330 |
|
|
Other Expenditure |
129.000 |
0.000 |
0.000 |
|
Total Expenditure |
3762.300 |
2173.438 |
1117.924 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st Quarter |
|
Sales Turnover |
|
|
818.600 |
|
Other Income |
|
|
9.000 |
|
Total Income |
|
|
827.600 |
|
Total Expenditure |
|
|
711.800 |
|
Operating Profit |
|
|
115.800 |
|
Interest |
|
|
36.700 |
|
Gross Profit |
|
|
79.100 |
|
Depreciation |
|
|
63.100 |
|
Tax |
|
|
2.000 |
|
Reported PAT |
|
|
11.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
Debt-Equity Ratio |
|
2.60
|
2.60 |
2.94
|
|
Long Term Debt-Equity Shares |
|
2.02
|
2.23 |
2.56
|
|
Current Ratio |
|
0.82
|
1.00 |
1.09
|
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
1.90
|
2.27 |
1.99
|
|
Inventory |
|
12.04
|
13.76 |
16.09
|
|
Debtors |
|
7.47
|
7.35 |
6.56
|
|
Interests Cover Ratio |
|
1.50
|
2.81 |
3.33
|
|
Operating Profit Margin (%) |
|
9.40
|
11.98 |
15.53
|
|
Profit Before Interests and Tax Margin (%) |
|
5.14
|
8.06 |
11.56
|
|
Cash Profit Margin (%) |
|
5.94
|
8.31 |
9.21
|
|
Adjusted Net Profit Margin (%) |
|
1.69
|
4.39 |
5.24
|
|
Return On Capital Employed (%) |
|
9.48
|
15.62 |
21.31
|
|
Return On Net Worth (%) |
|
11.15
|
30.52 |
38.06
|
LOCAL AGENCY
FURTHER INFORMATION
CONTINGENT LIABILITIES
|
Particulars |
As on 31.03.2007 [ Rs. In
Millions] |
|
Estimated
amount of contracts remaining to be executed on capital accounts |
28.247 |
|
Guarantees
issued by Bank |
20.758 |
|
L /
C issued by the bank for the import of Machinery & Goods |
101.082 |
|
Total |
150.087 |
Fixed Assets
- Land
- Building
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Computers/ Softwares
- Office Equipments
- Quality Control Equipments
- Motor Vehicles
- Dies
- Patterns
AS PER WEBSITE DETAILS:
PROFILE
Subject is a joint venture between
Rai and Associates of India and Enkei Corporation, Japan, a US$ 2 Bn Group,
which is the second largest manufacturer of alloy wheels in the world with a
sale of more than a million wheels per month from its plants across the globe.
With technical expertise
from Enkei Japan, it has developed leadership in establishing one of the most
advanced manufacturing systems in India for aluminum die cast products. Subject
currently leads the Indian market in manufacturing cylinder heads for two
wheelers and alloy wheels for 2 wheelers as well as 4 wheelers. Company has the
distinction of being a single source supplier of many critical engine parts to
some of India’s largest OEMs.
Establishing strong
mechanisms to control quality, cost and delivery, company not only supplies its
products to India but also is foraying into international markets. Company
currently supplies its products to various Tier I / Tier II suppliers of global
OEMs in Europe and USA. Enkei’s customers include Maruti Udyog Limited, Honda
Siel Cars Limited, Tata Motors, Hyundai Motors, Mahindra & Mahindra, Bajaj
Auto Limited, Hero Honda Motor Industries, Honda Scooter and Motorcycle
Company, Suzuki Motors India Limited, Yamaha India and many more. International
customers include Trelleborg, Behr Group, ZF Group, and GWK Group.
Aggressively tapping on the
opportunities in the Indian and International markets, company is growing
rapidly at almost 100% each year for the last 3 years. In continuation of its
growth pursuit, company is aggressively targeting international customers and
has a vision to achieve sales of Rs.10,000 Mn by 2009-10. The main plant is
located at Shikrapur, Pune with 1500 employees while the second plant has
recently come up at Gurgaon in North. Plans for the third plant are under
finalization which is expected to come up at Pantnagar, Uttaranchal.
About Enkei
Worldwide
Enkei corporation was
founded on 5th October 1950, in Hamamatsu, Japan as a manufacturer of die cast
aluminum engine parts for motorcycles. Over a period of time, Enkei’s line of
business diversified continuing with their core strength of manufacturing
aluminum wheels for automobiles, motorcycles and other products using aluminum
casting and forging technology.
Enkei’s
business in the aluminum wheel industry ranges from very sophisticated racing
wheels for Formula 1 Rally and others to the OEM market supplying to all the
large auto manufacturers in Japan and USA. Enkei group is the world leader in
this field and has the distinction of supplying magnesium alloy wheels to the
prestigious McLaren Mercedes Formula 1 team.
Enkei currently
sells more than a million wheels a month from its plants across the globe and
is the second largest manufacturer of alloy wheels in the world. It has plants
located in Japan, USA, China, Thailand, Malaysia, Indonesia, Philippines and
India.
Company has informed the Exchange that the Board of Directors of the
Company in their meeting held on June 30, 2008: (1) has recommended a dividend
of 12.5% for the financial year 2007-2008; (2) has decided to call Annual
General Meeting of the members of the Company on September 27, 2008.
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.48.14 |
|
UK Pound |
1 |
Rs.82.73 |
|
Euro |
1 |
Rs.65.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--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 |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|