MIRA
INFORM REPORT
|
Report Date : |
29.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE SUPREME INDUSTRIES LIMITED |
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Formerly Known As : |
SUPREME INDUSTRIES LIMITED |
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Registered Office : |
612, Raheja Chambers, Nariman Point, Mumbai – 400021, |
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Country : |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
17.02.1942 |
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Com. Reg. No.: |
11-3554 |
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Capital
Investment / Paid-up Capital : |
Rs.254.054 Millions |
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CIN No.: [Company Identification
No.] |
L35920MH1942PLC003554 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT01228D |
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Legal Form : |
Public Limited Liability Company. The shares of the company are listed on the Stock Exchanges. |
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Line of Business : |
Subject is engaged in production of plastic products |
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No. of Employees
: |
2500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 19582800 |
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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 a reputed company of Supreme Group
controlled and managed by Taparia’s. Financial position of the company
appears to be sound. Directors are reported to be an experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitment. The company can be considered normal for 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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
|
Registered Office : |
612,
Raheja Chambers, Nariman Point, Mumbai - 400021, |
|
Tel. No.: |
91-22-22851656/
22820072/ 22851159-60 |
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Fax No.: |
91-22-22851657 |
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E-Mail : |
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Website : |
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Corporate Office : |
1161,1162, 6th Floor, Solitaire Corporate Park, 167, Guru
Hargovindji Marg, Andheri Ghatkopar Link Road, Andheri (East), Mumbai - 400
093, Maharashtra, India |
|
Tel. No.: |
91-22-40430000/
67710000/ 30840000 |
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Fax No.: |
91-22-40430099/
67710099 |
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E-Mail : |
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Factory : |
Located at : ·
Derabassi (Punjab) ·
Durgapur (West Bengal) ·
Gadegaon (Maharashtra) ·
Guwahati (Assam) ·
Halol (Gujarat) ·
Hosur (Tamil Nadu) ·
Jalgaon - Unit I (Maharashtra) ·
Jalgaon - Unit II (Maharashtra) ·
Kanhe (Maharashtra) ·
Kanpur (Uttar Pradesh) ·
Khopoli (Maharashtra) ·
Khushkheda (Rajasthan) ·
Malanpur 1 (Madhya Pradesh) ·
Malanpur 2 (Madhya Pradesh) ·
Noida (Uttar Pradesh) ·
Puducherry (Union Territory) ·
Silvassa (Union Territory) ·
Sriperumbudur (Tamil Nadu) ·
Urse (Maharashtra) |
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Branch Office: |
Located at:
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Regional Offices
: |
Delhi 518, Osian
Building, 12, Nehru Place, New Delhi- 110019, Delhi, India Tel.: 91-11-51618008,
26468445, 26423162,26423163 Chennai New No. 15, Old
No. 9, Urmila House, 3rd Floor, Ark Colony, Eldams Road, Alwarpet,
Chennai-600018, Tamilnadu, India Tel.:
91-44-42030971 / 42180522 Fax.:
91-44-52132809 Kolkata 601, Central Plaza, 2 / 6. Sarat Bose
Road, Kolkata-700020, West Bengal, India Tel.: 91-33-24858840(Dir.),24858837,
24858839 (Board) / 24858846 Fax.: 91-33- 24858838 |
DIRECTORS
As on 30.06.2011
|
Name : |
Mr.
B L Taparia |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
25.11.1934 |
|
Qualification : |
B.Com |
|
Date of Appointment : |
15.06.1977 |
|
Chairman /
Director of other companies
: |
1. Supreme Petrochem Limited 2. Supreme Capital Management Limited 3. Varali Investment and Trading Company Private Limited 4. Multilayer Films Private Limited |
|
|
|
|
Name : |
Mr.
M P Taparia |
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Designation : |
Managing Director |
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Date of Birth/Age : |
22.10.1937 |
|
Qualification : |
B.A. |
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Date of Appointment : |
02.08.1966 |
|
Chairman /
Director of other companies
: |
1. Supreme
Petrochem Limited 2. Supreme
Capital Management Limited 3. Rama Newsprit
and Paper Limited 4. SPL
Industrial Park Limited 5. SPL
Industrial Support Services Limited 6. Kabra Extrusion
Technik Limited 7. Multilayer
Films Private Limited 8. Jagatguru
Investment and Trading Company Private Limited |
|
|
|
|
Name : |
Mr. S.J. Taparia |
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Designation : |
Executive Director |
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Name : |
Mr.
V K Taparia, |
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Designation : |
Executive Director |
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Name : |
Mr. B V Bhargava |
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Designation : |
Director |
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Date of Birth/Age : |
16.04.1936 |
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Qualification : |
M. Com., L.L.B |
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Date of Appointment : |
25.09.1996 |
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Name : |
Mr. H S Parikh |
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Designation : |
Director |
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Name : |
Mr. N N Khandwala |
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Designation : |
Director |
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Name : |
Mr. S R Taparia |
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Designation : |
Director |
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Date of Birth/Age : |
24.10.1928 |
|
Qualification : |
B A. |
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Date of Appointment : |
10.09.1966 |
|
Chairman / Director
of other companies
: |
1. Permanent Magnets Limited 2. Venu Plantations Limited |
|
|
|
|
Name : |
Mr.
Y P Trivedi |
|
Designation : |
Director |
|
Date of Birth/Age : |
06.01.1929 |
|
Qualification : |
B
Com L. L. B. |
|
Date of Appointment : |
30.08.2003 |
KEY EXECUTIVES
|
Name : |
Mr.
O P Roongta |
|
Designation : |
Senior Vice - President (Finance) and Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
3,280,590 |
2.58 |
|
|
59,746,755 |
47.03 |
|
Sub Total |
63,027,345 |
49.62 |
|
(2) Foreign |
|
|
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Total
shareholding of Promoter and Promoter Group (A) |
63,027,345 |
49.62 |
|
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(1) Institutions |
|
|
|
Mutual Funds / UTI |
12,052,452 |
9.49 |
|
Financial Institutions / Banks |
29,425 |
0.02 |
|
|
9,378,314 |
7.38 |
|
Sub Total |
21,460,191 |
16.89 |
|
(2)
Non-Institutions |
|
|
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Bodies Corporate |
11,413,519 |
8.99 |
|
|
|
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Individual shareholders holding nominal
share capital up to Rs. 0.100 million |
22,567,619 |
17.77 |
|
Individual shareholders holding nominal
share capital in excess of Rs. 0.100 million |
7,315,227 |
5.76 |
|
Any Others
(Specify) |
1,242,978 |
0.98 |
|
|
97,441 |
0.08 |
|
Non Resident Indians |
1,106,167 |
0.87 |
|
Overseas Corporate Bodies |
39,370 |
0.03 |
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Sub Total |
42,539,343 |
33.49 |
|
Total Public
shareholding (B) |
63,999,534 |
50.38 |
|
Total (A)+(B) |
127,026,879 |
100.00 |
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|
- |
- |
|
(1) Promoter and Promoter Group |
- |
- |
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|
- |
- |
|
Sub Total |
- |
- |
|
Total
(A)+(B)+(C) |
127,026,879 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in production of plastic products. |
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Products : |
v
Moulded Furniture v
Moulds v
Storage and Material Handling Crates v
Petrochemicals v
Cross Laminated Films and Products v
Food Service ware v
Packaging Films v
Industrial and engineering Moulded Products v
Calendered Rigid PVC Films v
Protective Packaging Products v
Plastics Piping Systems |
PRODUCTION STATUS (AS ON 30.06.2011)
|
Particulars |
Unit |
Installed
Capacity * |
Actual
Production |
|
Injection Moulded Products |
MT |
102050 |
69284.619 |
|
Extruded Products |
MT |
228107 |
152858.733 |
|
Machinery and Moulds |
Nos |
NA |
28 |
Notes:-
(1) * As certified
by the Management and accepted by the auditors being a technical matter.
(2) Production
includes production achieved on labour job basis from outsiders.
(3) The turnover
does not include sale of premises for Rs.397.521 Millions, cost of which was
Rs.145.245 Millions
(4) Job work
charges from outsiders Rs.42.529 Millions not included herein
(5) The Turnover
does not include Sale of Scrap for Rs.52.905 Millions
(6) The above
Turnover does not include Excise Duty on sales Rs.2297.968 Millions.
(7) Production
Quantities shown herein are after adjustment of departmental consumption.
(8) Turnover
includes 20 nos. of Machinery and Parts Rs.11.327 Millions and Packing Material
and Components Rs.31.942 Millions transferred to other divisions for captive
use.
GENERAL INFORMATION
|
No. of Employees : |
2500 (Approximately) |
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Bankers : |
·
Central Bank of ·
State Bank of ·
BNP Paribas ·
ICICI Bank Limited ·
Bank of ·
IDBI Bank Limited ·
Axis Bank Limited ·
Vijaya Bank ·
Standard Chartered Bank |
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Facilities : |
Notes: 1. Working Capital Loans from Banks (A) above are secured / to be
secured against: (a) hypothecation of stocks and Book Debts (b) second / subservient charge on all movable plant, machineries and
moulds (except plant, machineries and moulds at PVC Film Unit at Malanpur)
and (c) Immovable properties of the Company situated at various locations
(except properties at Andheri, Jalgaon and PVC Film Unit at Malanpur), both
present and future. 2. Term Loans from financial institutions and banks [B(a) to B(k)] are
secured / to be secured on first pari passu charge basis as under: (a) Immovable properties of the company, situated at various
locations, both present and future, subject to the exclusion of properties,
as mentioned in Clause 1(c) above. (b) Movable plant, machineries and moulds of the Company, both present
and future, subject to exclusions as mentioned in Clause 1(b) above and
second / subservient charge on current assets viz. stocks and book debts of
the Company.
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Banking Relations : |
-- |
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Auditors : |
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Name : |
Chhogmal and Company Chartered Accountants |
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Associates : |
Ř
Supreme Petrochem Limited Ř
Supreme Capital Management Limited Ř
Multiplayer Films Private Limited Ř
Varali Investment and Trading Company Private
Limited Ř
Jagatguru Investment and Trading Company Private
Limited Ř
Balabheem Investment and Trading Company Private
Limited Ř
Platinum Plastics and Industries Private Limited Ř
Suraj Packaging Private Limited Ř
Venkatesh Investment and Trading Company Private
Limited Ř
Jovial Investment and Trading Company Private
Limited Ř
Boon Investment and Trading Company Private
Limited |
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Subsidiaries |
Ř
The Supreme Industries Overseas FZE |
CAPITAL STRUCTURE
As on 30.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 Millions |
|
11200000 |
Preference Shares |
Rs.10/- each |
Rs.112.000 Millions |
|
33800000 |
Unclassified Shares |
Rs.10/- each |
Rs.338.000 Millions |
|
|
Total |
|
Rs.750.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
127026870 |
Equity Shares (including 9,44,36,045 Nos. Equity Shares of Rs. 2 each issued as fully paid Bonus Shares
out of Reserves) |
Rs.2/- each |
Rs.254.054 millions |
|
|
|
|
|
|
|
Total |
|
Rs. 254.054 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
254.054 |
254.054 |
254.054 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4641.648 |
3527.857 |
2626.703 |
|
|
4] Accumulated Losses |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4895.702 |
3781.911 |
2880.757 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3532.207 |
2691.288 |
2151.797 |
|
|
2] Unsecured Loans |
1580.167 |
1182.353 |
335.610 |
|
|
TOTAL BORROWING |
5112.374 |
3873.641 |
2487.407 |
|
|
DEFERRED TAX LIABILITIES |
795.381 |
698.439 |
642.809 |
|
|
|
|
|
|
|
|
TOTAL |
10803.457 |
8353.991 |
6010.973 |
|
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|
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|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7416.493 |
5626.038 |
5430.035 |
|
|
Capital work-in-progress |
261.706 |
130.836 |
895.236 |
|
|
Assets held for disposal |
0.000 |
29.006 |
11.938 |
|
|
|
|
|
|
|
|
INVESTMENT |
336.449 |
336.163 |
336.163 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3454.050
|
2906.428
|
1682.911
|
|
|
Sundry Debtors |
1530.123
|
1314.425
|
1156.380
|
|
|
Cash & Bank Balances |
139.533
|
182.522
|
104.142
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1510.235
|
977.431
|
720.583
|
|
Total
Current Assets |
6633.941
|
5380.806
|
3664.016
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1830.064
|
1273.142
|
875.716
|
|
|
Other Current Liabilities |
1473.571
|
1263.065
|
2889.893
|
|
|
Provisions |
541.497
|
612.651
|
560.806
|
|
Total
Current Liabilities |
3845.132
|
3148.858
|
4326.415
|
|
|
Net Current Assets |
2788.809
|
2231.948
|
(662.399)
|
|
|
|
|
|
|
|
|
MISCELLNEOUS EXPENDITURE |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10803.457 |
8353.991 |
6010.973 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
24357.340 |
20057.376 |
16519.287 |
|
|
|
Other Income |
429.466 |
162.155 |
90.453 |
|
|
|
TOTAL (A) |
24786.806 |
20219.531 |
16609.740 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
15912.178 |
13157.825 |
10513.353 |
|
|
|
Manufacturing Expenses |
5203.705 |
4006.077 |
3626.490 |
|
|
|
TOTAL (B) |
21115.883 |
17163.902 |
14139.843 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3670.923 |
3055.629 |
2469.897 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
425.019 |
330.271 |
545.603 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3245.904 |
2725.358 |
1924.294 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
628.452 |
529.204 |
525.174 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2617.452 |
2196.154 |
1399.120 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
867.752 |
747.852 |
425.259 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1749.700 |
1448.302 |
973.861 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1114.237 |
914.563 |
617.185 |
|
|
|
Interim Dividend on Equity Shares |
165.135 |
127.027 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
381.080 |
330.270 |
304.864 |
|
|
|
Corporate Dividend Tax Paid |
27.427 |
21.588 |
0.000 |
|
|
|
Provision for Corporate Dividend Tax |
61.821 |
54.854 |
51.812 |
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
617.125 |
587.403 |
686.349 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5135.708 |
5433.978 |
4564.941 |
|
|
|
Stores & Spares |
4.951 |
4.419 |
3.852 |
|
|
|
Capital Goods |
639.779 |
242.634 |
313.183 |
|
|
TOTAL IMPORTS |
5780.438 |
5681.031 |
4881.976 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.77 |
57.01 |
34.30 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2011 |
|
|
1st
Quarter |
|
Net Sales |
5011.700 |
|
Total Expenditure |
4300.150 |
|
PBIDT (Excl OI) |
711.550 |
|
Other Income |
90.480 |
|
Operating Profit |
802.030 |
|
Interest |
133.210 |
|
Exceptional Items |
0.000 |
|
PBDT |
668.820 |
|
Depreciation |
171.500 |
|
Profit Before Tax |
497.330 |
|
Tax |
137.500 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
359.830 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
359.830 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
PAT / Total Income |
(%) |
7.05
|
7.16
|
5.86 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.74
|
10.94
|
8.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.62
|
19.95
|
15.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
53.46
|
0.58
|
0.48 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
1.85
|
2.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.72
|
1.13
|
0.84 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The world economy continues
to remain quite volatile. Commodity prices especially have become more
volatile. In a stable political regime, the resilience and enterprise of the
Indian entrepreneurs continues to drive the economy through a growth path which
may grow in excess of 8% GDP year after year in spite of this volatility.
INDUSTRY STRUCTURE
AND DEVELOPMENT
Plastics
consumption has reached a land mark figure of 8 million tons in the year i.e. April
2010 to March 2011. Expecting such growth, several expansion initiatives have
been undertaken by various makers to set up plastics raw material manufacturing
facilities in India. Plants are coming up at Dahej, Gujarat State, Bhatinda
(Punjab), Assam and Jamnagar (Gujarat) to make increasing volume of plastics
raw material. These plants are under advanced stages of construction. It can be
safely presumed that all these plants will go into production by the year 2014
thus augmenting supply of raw materials. Existing Polymer makers are also
increasing their capacities selectively. Several polymer making plants have
been announced for construction in Middle East and China. As such, large
volumes of raw material will be available at competitive rates which in any way
will remain at an elevated level due to high cost of their feed stock i.e.
derivatives of crude oil.
Introduction of
Goods and Service Tax (GST) from 1.4.2011 has been inordinately delayed. The
Company does not foresee any possibility of introduction of the same in the
near future. This was a great reform measure in indirect tax structure
announced by the successive Central Government. However, for one reason or
another, the same could not be enacted. This reform could have further
accelerated the growth of India’s economy. However, this still has to wait.
Central Government continues its focus to improve the infrastructure of several
cities and towns under JNRRUM Scheme. Central and States Governments have
earmarked large sums of monies to boost investment in Agriculture. The Company
has various systems to cater to the requirements of agriculture and also to
offer superior products compared to products made from conventional material
for infrastructure improvement. In this environment, the consumption of
plastics in the country is expected to grow at around 12% every year in this
decade. The Company has taken and will take newer initiatives in providing
superior solutions out of plastics to enable the Company to have volume growth
of around 20% annually during the same period.
COMPANY'S STRENGTH
AND GROWTH DRIVERS
Manufacturing
sites
During the year
the Company was operating at 19 manufacturing sites all over India. The Company
is currently putting plants at two new locations. i.e in Halol (Gujarat) for
composite cylinders and Hosur for Protective Packaging Products. It is expected
that both these plants will be ready for commencement of production in December
2011 – March 2012 period. Geographical locations of the Company’s plants to
make a very large range of plastics products with several manufacturing
facilities for similar products at different sites and non-dependence on any
single plastics raw material to meet its requirement gives superior strength to
the Company to deliver around 20% turnover growth for several years. The
Company has selected its product portfolio in such a manner that it does not
have to compete against imported plastics products. Products made by the
Company are either to meet just in time customers’ requirements or freight
intensive products or patented products enjoying exclusive right to produce in
this part of the world. The Company also avoids to remain in a line where it
has to compete against unorganized sector. In certain products where the
Company is making such products, the effort remains to have lower percentage of
such business, within the overall turnover of that products, just to supply
complete range to its distributors.
Distribution
network
The Company’s
distributors are spread all over the Country. The Company plans to reach its
products to every nook and corner of the country. The Company’s products
command great respect in the segments they operate due to its superior quality,
range and service.
Growth drivers
The Company’s
focus remains to supply quality functional plastics products. The Company
continues to invest monies to achieve this objective. The year 2010-11 was a
watershed year when the Company invested a sum of Rs.2580 Millions in a single
year to augment capacities of varieties of products at existing sites and to
start a new unit at Sriperumbudur in Tamilnadu. The Company has plans to invest
a sum of Rs.2000 Millions in the current year. This will facilitate to put up a
plant at a new site in Gujarat to manufacture cross laminated film products.
Monies will also be invested to further augment the capacities of value added
products in different product groups and also to automate several production
processes at different plants to overcome the paucity of labour prevalent in
several parts of the country.
OVERALL GROWTH
PROSPECTS
The Company is in
Plastics product manufacturing business. Due to its properties such as, higher
yield, aesthetics, durability, easy to shape with less energy requirements and
inertness among others over conventional materials, plastics always score over
them to offer better product to its customers. Plastics continue to take over
newer and newer applications which are being currently supplied out of
conventional materials. It is forecasted that the current consumption of
plastics in India which was around 8 million tons in the financial year 2011
will reach to 20 million tons by the financial year 2020. The Indian economy
GDP may cross $ 5 trillion annually by 2020 from the current level of $ 1.5
trillion. Consequently, per capita GDP will also grow. The increased per capita
income augments discretionary spending capacity of Indians. This will be
translated into increased consumption of Plastics in the country. There are
foreign companies putting up plants in India to manufacture goods not only for
supplying to Indian market but also using the country as their export
manufacturing hub. This will also facilitate larger consumption of
Plastics. The Company thus will be able
to participate in newer growth impulses. Thus it will continue to enjoy around
20% turnover growth in plastics for several years with decent return on capital
employed.
FINANCE
The Reserve Bank
of India continued tightening monetary cycle by increasing the policy rates
(including repo rate,
reverse repo rate
and cash reserve ratio) aggressively during the last 15 months, which
necessitated the Banks to increase their Base rate (i.e. minimum lending
rates), from time to time, in the financial year 2010-11. The Company’s Rupee
Term Loans are linked to either Benchmark Prime Lending Rate (BPLR) or
Commercial Paper (CP) rate or G-sec rate and the rate of Interest on these Term
loans increased correspondingly in tandem with the increase in the rate of
Interest by the lenders. The Interest rate on Short term borrowings of the
Company also increased, simultaneously during the year. The average rate of
Interest has gone up to 9.72% as on 30th June, 2011 from 7.93% as on 30th June,
2010. The Company has chalked out Capital Expenditure (Capex) of Rs.10000
Millions over a period of five years from 2010-11 to 2014-15 across all the
products to tap the growth opportunities and to keep the pace of growth
momentum so as to achieve desired CAGR of around 20% on y-o-y basis. During the
year it has incurred Capex of Rs.2580 Millions for augmenting the capacities in
the following segments:-
(a) To enchance
capacities at existing locations in Plastic Piping System, Furniture and
Material Handling System.
(b) To put up new
manufacturing unit at Sriperumbudur (Tamil Nadu) and also to augment capacities
at all the
existing locations
for industrial components.
(c) To put up
additional 7 layer extrusion line with ancillary equipment at Performance
Packaging Division at Khopoli.
(d) For increasing
the capacities of Protective Packaging Products at all locations
(e) For acquiring
moulds for manufacture of new products in furniture and material handling
products.
The internal
accruals of the Company were utilized for funding aforesaid Capex and to meet
increased working capital requirements, besides re-payment of Term Loan
installments aggregating Rs.514 Millions. The balance amount of Capex was
funded through availment of net fresh Term Loans aggregating to Rs.1117.1
Millions. Due to rise in crude oil prices and consequent increase in the
polymer prices necessitated higher Working Capital Requirements during the
year. As a result, at the year end, Interest bearing liabilities have increased
from Rs.3873.6 Millions as on 30th June, 2010 to Rs.5112.4 Millions as on 30th
June, 2011. During the year Interest and Financial Charges in absolute value
have also increased to Rs.425.000 Millions vis-a-vis Rs.330.300 Millions during
the year 2009-2010 due to increase in the overall borrowings together with
continuous hardening of Interest Rates in Short Term/Long Term borrowings
availed by the Company. The Company continues to raise funds through Commercial
Papers to meet its Working Capital needs, at lower rates of Interest. The
Company also continues to avail Buyer’s Credit for financing its import of raw
materials and capital goods by way of fully hedged foreign exchange exposure at
competitive rates. In the prevailing circumstances, the Company has managed the
Interest
cost reasonably
well. The Company closely monitors its Working capital cycle and it has been
able to lower its Debtors days, despite adding new products in its portfolio.
It has also managed to maintain its Supplier days within a range through
constant vendor management. Considering the excellent performance and strong
financial parameters, CRISIL has upgraded the Rating on the Bank facilities and
Short Term Debt programme to “AAR - / Stable” from “A+ / Positive” and to “P1+”
from “P1” respectively, which reflects the sustained improvement in Company’s
business risk profile backed by increase in contribution from value added
products, improved profitability and prudent Working Capital management. During
the year 2011-12, the Company envisages to invest Rs. 2000 millions mainly on
following segments:-
(1) To put up new
facility to manufacture (i) cross laminated film products, (ii) composite
cylinders, (iii) foam products, (iv) Industrial Components and (2) To augment
the existing capacities and to increase the range of products in respective
product divisions at various locations. The Cash Flow position of the Company
is sturdy. In
view of the likely
accruals of healthy Cash Flow from its operations coupled with the better
Working capital management, the Company is confident to fund its future
expansion from internal accruals and Supplier’s credit. Moreover in the near
future, the Company is expecting to generate robust Cash flow from the sale of
remaining blocks of its Commercial Complex at Andheri, which will provide
additional comfort to fund its on-going Capex plan, besides reducing the
overall borrowings to a substantially lower level. This will reduce the overall
Interest cost considerably. The Company’s focus shall remain to bring the
interest cost below 1% of Total Turnover by the end of next year. The Company expects
the raw material prices to remain range bound at current level, which will also
enable the Company to reduce its Working Capital requirements and borrowings
during 2011-12.
Fixed assets:
·
·
· Buildings
· Plant, Machinery and Electrical Installations
· Moulds and Dies
· Furniture, Fixture and Office Equipments
· Vehicles
· Sundry Equipments
WEB SITE DETAILS
BUSINESS
DESCRIPTION
Subject is engaged in production of plastic products. The Company’s products
include plastics piping system, consumer products, industrial products and
packaging products. Its plastics piping system include polyvinyl chloride
pipes, injection moulded fittings and handmade fittings, polypropylene random
co-polymer pipes and fittings, high density polyethylene pipe systems,
chlorinated polyvinyl chloride pipes systems, linear low density polyethylene
tube and inspection chambers. Its consumer products include furniture and mats.
Its industrial products include industrial products, material handling system
and pallets. Its packaging products include flexible packaging film, protective
packaging products and cross laminated film. During the year ended June 30,
2011, it produced 69, 284.619 and 15, 2858.733 million tons of injection
moulded products and extruded products, respectively. The Supreme Industries
Overseas, is a wholly owned subsidiary of the Company. For the fiscal year
ended 30 June 2010, The Supreme Industries Limited's revenues increased 22% to
RS20.2B. Net income increased 72% to RS1.56B. Revenues reflect an increase in
sales of Plastic Products and a rise in income from other products. Net income
also reflects a decrease in interest expense. The Supreme Industries Limited is
an India-based company engaged in plastics piping system, consumer products and
packaging products.
MANAGEMENT
B. L. TAPARIA -
NON-EXECUTIVE CHAIRMAN OF THE BOARD
Shri. B. L. Taparia is Non-Executive Chairman of the Board ofSubject. He
has Overall guidance in framing Business policies and social work. He holds B.
Com. He is Director of B. Com., Supreme Capital Management Limited, Venktesh
Investment and Trading Company Private Limited.
BHUPENDRANATH
VIDYANATH BHARGAVA - INDEPENDENT NON-EXECUTIVE DIRECTOR
Education
·
Commerce, Mumbai University
·
Law, Mumbai University
H. S. PARIKH -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. H. S. Parikh is an Independent Non-Executive Director ofSubject. He
is Practicing Chartered Accountant. He is qualified has Chartered Accountant. He
is Director of Elecon Engineering Company Limited, Simplex Castings Limited,
Eimco Elecon (India) Limited.
S. R. TAPARIA -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. S. R. Taparia is an Independent Non-Executive Director of Subject.
He holds Bachelor of Arts degree. He serves as Director of Permanent Magnets
Limited., Venu Plantations Limited.
M. P. TAPARIA -
MANAGING DIRECTOR, EXECUTIVE DIRECTOR
Shri. M. P. Taparia is Managing Director, Executive Director ofSubject.
He holds Bachelor of Arts degree. He serves as Director of Supreme Petrochem
Limited, Supreme Capital Management Limited, Rama Newsprit and Paper Limited,
SPL Industrial Park Limited, SPL Industrial Support Services Limited, Kabra
Extrusion Technik Limited, Multilayer Films Private Limited, Jagatguw
Investment and Trading Company FM. Limited.
Y. P. TRIVEDI -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. Y.P. Trivedi is an Independent Non-Executive Director of Subject.
He holds B. Com., LLB degrees. He holds Directorships on Reliance Industries
Limited, Zodiac Clothing Company Limited, Birla Power Solution Limited, Birla
Cotsyn (India ) Limited, Emami Limited, Sai Service Station Limited, Zandu
Realty Limited, Seksaria Biswan Sugar Factory Limited, New Consolidated Constn.
Company Limited, Metro Exporters Private Limited, Monica Travels Private
Limited and Trivedi Consultants Private Limited.
Press Releases
SUPREME IND Q3 NET UP 12.26 PC AT RS 48.27
MILLIONS
22 April 2011
New Delhi, April. 22 -- The Supreme Industries
Limited (SIL) today announced that its net profit for the third quarter ended
March 31, 2011 increased by 12.26 per cent to Rs 482.700 Millions as compared
to Rs.430.000 Millions for the corresponding quarter of the previous year. The
total income and operating profit for the third quarter ended March 31, 2011
amounted to Rs.6625.100 Millions and Rs.836.800 Millions, as compared to
Rs.5123.200 Millions and Rs.739.100 Millions, for the corresponding quarter of
the previous year, recording an increase of 29.32 per cent and 13.22 per cent
respectively, the company said in a statement. The profit before tax (excluding
other income) has increased by 2.62 per cent to Rs.543.900 Millions in this
quarter as compared to Rs.530.000 Millions for the corresponding quarter of the
previous year. The company said it has processed 1,67,680 MT Polymers during
the nine months of the current year against 1,35,392 MT in the corresponding
period of the previous year achieving volume growth of 23.85 per cent. The company
envisages annual volume growth during the current year in excess of 20 per cent
over the previous year. Total income and operating profit for the nine months
of the current year amounted to Rs.17212.300 Millions and Rs.2434.500 Millions
as compared to Rs.13446.100 Millions and Rs.1978.500 Millions, for
corresponding period of the previous year, recording an increase of 28 per cent
and 23.05 per cent respectively, it said. The net profit has increased by 30.29
per cent to Rs.1355.900 Millions as compared to Rs.1040.700 Millions for the
corresponding period of the previous year. The company said it had planned
capital expenditure of Rs.2750.000 Millions for the current year, which is
progressing well. The company envisages annual volume growth during the current
year in excess of 20 per cent over the previous year. Its project to
manufacture Composite Gas Cylinders will be set-up in Gujarat and the
commercial production of the same is likely to start in the last quarter of
this calendar year, it added. During the next year, the company plans to incur
about Rs.2000.000 Millions of Capex and expects volume growth of more than 20
per cent, it said.
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 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.51.98 |
|
|
1 |
Rs.80.59 |
|
Euro |
1 |
Rs.69.12 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
67 |
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.