MIRA
INFORM REPORT
|
Report Date : |
02.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
SUPRAJIT ENGINEERING LIMITED |
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Registered
Office : |
100 Bommasandra Industrial Area, Anekal TAluka, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.05.1985 |
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Com. Reg. No.: |
006934 |
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Capital
Investment / Paid-up Capital : |
Rs. 120.020 millions |
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CIN No.: [Company Identification
No.] |
L29199KA1985PLC006934 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRS01725D |
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Legal Form : |
Public Limited Liability Company, Company's Shares are Listed on Stock
Exchange |
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Line of Business
: |
Manufacturer of High Quality Liner Cables and Automotive Cables |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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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 2939600 |
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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 an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
100 Bommasandra Industrial Area, Anekal TAluka, |
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Tel. No.: |
91-80-27833827 – 29 / 43421100 |
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Fax No.: |
91-80-27833279 |
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E-Mail : |
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Factories : |
·
Plot No 100, Bommasandra Industrial Area, ·
Plot No. 132, Bommasandra Industrial Area, ·
No. 26 and 27A (Part), Doddaballapur
Industrial Area, ·
No 164 – 165, Sector 3, IMT Manesar, Gurgaon
122001, ·
Plot No. B 13, MIDC, Chakan Industrial Area,
Pune 410501, ·
A-1/5411, IV Phase, GIDC, Vapi 396195, ·
Plot No. 14 Sector 10, IEE SIDCUL Pantnagar,
Rudrapur, Udhamsingh Nagar, Uttarakhand 263153, ·
Plot No. 101, Bommassandra Industrial Area, · Plot No. 04, Industrial Park IV, Begumpur Village, Roorkee, Haridwar 249403, Uttarakhand, India |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. M R B Punj |
|
Designation : |
Chiarman |
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Name : |
Mr. K Ajith Kumar Rai |
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Designation : |
Vice Chairman and MAnageing Director |
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Name : |
Mr. Surendra Kumar N Shah |
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Designation : |
Director |
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Name : |
Mr. M J Shetty |
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Designation : |
Director |
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Name : |
Mr. B S Patil |
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Designation : |
Director |
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Name : |
Mr. Diwakar S Shetty |
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Designation : |
Director |
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Name : |
Mr. Ian Williamson |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Medappa Gowda J |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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61,439,344 |
51.19 |
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61,439,344 |
51.19 |
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Total shareholding of Promoter and Promoter Group (A) |
61,439,344 |
51.19 |
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(B) Public Shareholding |
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4,145,438 |
3.45 |
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4,145,438 |
3.45 |
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13,096,651 |
10.91 |
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18,237,326 |
15.20 |
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19,940,406 |
16.61 |
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3,160,835 |
2.63 |
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2,993,077 |
2.49 |
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3,000 |
- |
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164,758 |
0.14 |
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54,435,218 |
45.36 |
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Total Public shareholding (B) |
58,580,656 |
48.81 |
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Total (A)+(B) |
120,020,000 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
120,020,000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of High Quality Liner Cables and Automotive Cables |
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Products : |
Automotive Cables Non - Automotive Cables
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GENERAL INFORMATION
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Customers : |
·
TVS Motor Company ·
Hero Honda Motors ·
Bajaj Auto ·
Telco ·
Yamaha Motor ·
Hyundai Motors (Tier-II) ·
Ford (Tier-II) ·
Honda Motorcycles and Scooters ·
L M L ·
Lear Corporation ·
Eicher Motors General
Motors (Tier-II) ·
Mahindra and Mahindra ·
Swaraj Mazda ·
Piaggio ·
JCB ·
CLASS ·
Kinetic Engineering ·
Kinetic Motor Company ·
TAFE ·
Whirlpool Washing Machines ·
New |
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of ·
Syndicate Bank ·
Citi Bank NA ·
HSBC Bank |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Varma and Varma Chartered Accountant |
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Internal Auditors : |
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Name : |
K S Aiyar and Company Chartered Accountant |
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Subsidiaries: |
·
Suprajit Automotive Private Limited ·
Gills Cables Limited, |
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Associates: |
Suprajit Chemical Private Limited
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
125000000 |
Equity Shares |
Rs. 1 each |
Rs.125.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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120020000 |
Equity Shares |
Rs. 1 each |
Rs. 120.020 millions |
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Out of the above 90015000 equity shares of Rs.
1 each were allotted as fully paid up bonus by way of capitalization of
securities premium and general reserve
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
120.020 |
60.010 |
60.010 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
614.902 |
516.393 |
430.030 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
734.922 |
576.403 |
490.040 |
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LOAN FUNDS |
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1] Secured Loans |
501.223 |
452.758 |
606.033 |
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2] Unsecured Loans |
4.803 |
41.441 |
51.755 |
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TOTAL BORROWING |
506.026 |
494.199 |
657.788 |
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DEFERRED TAX LIABILITIES |
36.442 |
33.509 |
26.692 |
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TOTAL |
1277.390 |
1104.111 |
1174.520 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
561.334 |
535.490 |
472.697 |
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Capital work-in-progress |
19.145 |
4.003 |
39.358 |
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Expenditure during construction period pending allocation |
0.000 |
0.339 |
1.815 |
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INVESTMENT |
292.461 |
235.937 |
149.408 |
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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 |
156.330
|
115.836 |
104.998 |
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Sundry Debtors |
430.339
|
326.921 |
354.377 |
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Cash & Bank Balances |
10.350
|
8.972 |
13.978 |
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Other Current Assets |
11.181
|
8.094 |
8.728 |
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Loans & Advances |
51.031
|
101.606 |
197.436 |
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Total
Current Assets |
659.231
|
561.429 |
679.517 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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Sundry Creditors |
157.949
|
176.633 |
136.240 |
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Other Current Liabilities |
55.389
|
14.709 |
13.652 |
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Provisions |
41.443
|
41.745 |
18.383 |
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Total
Current Liabilities |
254.781
|
233.087 |
168.275 |
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Net Current Assets |
404.450
|
328.342 |
511.242 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1277.390 |
1104.111 |
1174.520 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
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Sales |
2086.787 |
1634.649 |
1376.789 |
|
|
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Other Income |
14.218 |
18.843 |
8.394 |
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TOTAL (A) |
2101.005 |
1653.492 |
1385.183 |
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Less |
EXPENSES |
|
|
|
|
|
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Cost of Materials |
1325.247 |
1084.323 |
973.327 |
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Employees Remuneration |
214.814 |
156.399 |
140.556 |
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Administrative Expenses |
138.091 |
131.342 |
88.047 |
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TOTAL (B) |
1678.152 |
1372.064 |
1201.930 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
422.853 |
281.428 |
183.253 |
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Less |
FINANCIAL
EXPENSES (D) |
57.350 |
58.008 |
44.224 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
365.503 |
223.420 |
139.029 |
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Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
44.867 |
42.584 |
37.515 |
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PROFIT BEFORE
TAX (E-F) (G) |
320.636 |
180.836 |
101.514 |
|
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|
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Less |
TAX (H) |
102.532 |
64.571 |
52.685 |
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PROFIT AFTER TAX
(G-H) (I) |
218.104 |
116.265 |
48.829 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
170.193 |
95.457 |
94.711 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
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|
Transfer to General Reserve |
120.000 |
11.626 |
20.000 |
|
|
|
Interim Dividend |
27.004 |
12.002 |
12.002 |
|
|
|
Dividend |
24.004 |
15.002 |
12.002 |
|
|
|
Tax on Dividend |
8.576 |
2.898 |
4.079 |
|
|
BALANCE CARRIED
TO THE B/S |
208.713 |
170.193 |
95.457 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
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|
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Export Earnings |
79.380 |
70.196 |
NA |
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IMPORTS |
|
|
|
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Raw Materials |
106.710 |
104.800 |
NA |
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|
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Earnings Per
Share (Rs.) |
1.82 |
0.97 |
4.07 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
615.000 |
768.530 |
799.560 |
|
Total Expenditure |
509.080 |
631.500 |
661.600 |
|
PBIDT (Excl OI) |
105.920 |
137.030 |
137.960 |
|
Other Income |
1.670 |
8.330 |
5.510 |
|
Operating Profit |
107.590 |
145.360 |
143.480 |
|
Interest |
11.620 |
15.920 |
18.940 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
95.970 |
129.440 |
124.540 |
|
Depreciation |
10.980 |
11.290 |
12.630 |
|
Profit Before Tax |
84.990 |
118.150 |
111.910 |
|
Tax |
25.000 |
40.000 |
30.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
59.990 |
78.160 |
81.910 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
10.38
|
7.03 |
3.52 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
15.36
|
11.06 |
7.37 |
|
|
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
26.26
|
16.48 |
8.81 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.31 |
0.20 |
|
|
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
1.08
|
1.31 |
1.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.58
|
2.40 |
4.03 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The year under review had a slow start, but gathered good momentum as the
year progressed, globally, first half of the year continued to reel under
recession and financial restructuring. However, as the year progressed, world
economy started to stabilize and selectively grew. The concerns on domestic
economy turned from pessimism to optimism and growth exceeded expectations of
many. The pent up demand in
Indian automotive sector grew by 25.26% for the year against this
background, the company recorded a net income of RS. 2101.000 millions during
the year 2009-10 as against Rs. 1653.500 millions during the year 2008-09,
recording a growth of 27.06% during the year 2009-10 the priofit after tax was
Rs. 218.100 millions against RS. 116.200 millions during the year 2008-09,
recording a growth of 87.69%. the consolidated sales grew from RS. 2270.000
millions for the year 2008-2009 to Rs. 2663.500 millions for the year
2009-2010, recording a growth of 17.33%.
The company’s new plant at Haridwar was operationalised during the last
quarter of the year and has started supplies to one major customer. Capacities
at most other plants were stretched to the limit during the yaer with
automotive sector growing robustly surpassing internal budgets. Non automotive
and aftermarket business, the new thrust area of the company, consolidated and
grew, equally well.
BUSINESS OVERVIEW
Indian automotive industries had a slow start for the year however, the
momentum gathered significantly through the year with a growth of 25.26% for
the year. All sectors of the automotive industries grew robustly in the
domestic market.
Automotive sector continue to go through turmoil globally. The recession
that started in 2007 continued in 2009 with most automotive giants cloaking
lower sales. Added to this, few major global car manufacturers had significant
recalls for various defects. The financial crisis that hit the global markets
had its own effects on automotive industries. Few auto giants had to go through
a major process of financial restructuring.
Fortunately major financial crisis has now subsided excepting sovereign
debt situation in certain European counties. it appears the worst is over in
the financial as well as automotive industries.
FIXED
ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Dies and Moulds
·
Electrical Installations
·
Furniture and Fixtures
·
Office Equipments
·
Motor Car
·
Cycles
·
Container
MILESTONES
1985 - Incorporated as Pvt. Ltd. Company.
1987 - Commercial Production started – Unit I.
1994 - Commercial Production started - Unit II.
1995 - Outstanding
1996 - Public issue of equity shares.
1998 - Speedometer plant commissioned.
2002 - Cable plant at
Manesar near
2002 - Acquisition of Shah Concabs P. Limited.
2002 -
2003 - Cable plant at Chakan, near Pune.
2003 - TS-16949, ISO 14000 and 18000 certifications.
2003 - Equity Shares listed at BSE.
2004 - Equity shares listed at NSE.
2004 - 50:50 JV with Carclo plc for export of Cables to EU.
2005 - Sales grew from Rs.5.000 millions in 1988 to Rs.1098.900 millions in 2004-05, CAGR of 35%.
2005 - Launch of Oracle ERP Implementation.
2005 - Global scale – 50.000 millions cables per year.
2006 – Successfully implemented Oracle ERP across all the units.
2006 – Acquisition of the balance 50% stake held by Carclo Plc., U K in
the joint venture CTP Suprajit Automotive
Private Limited. (100% EOU)
2006- Twin Awards by CNBC / ICICI Bank / CRISIL: 1. SME of the Year. 2.
Auto Ancillatu of the year.
2007 – Group Turnover crosses Rs. 2.0 billions
2007 – Commercial production at Pantnagar plant – Unit – 7
2007 – Commercial production at the second plant in manesar – Unit 4.
2007 – Best IT User Award 2006 in Automotive Sector by Nasscom.
2008 – Civil works commenced for 100% EOU in
2009 – Commercial Production at 100% Eou in
2010 – Award by Ksfc as an Outstanding
2010 – Commercial Production at Haridwar Plant – Unit 10.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.89 |
|
|
1 |
Rs.73.85 |
|
Euro |
1 |
Rs.64.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
62 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.