1. Summary Information
|
|
|
Country |
|
||
|
Company Name |
SPEL SEMICONDUCTOR LIMITED |
Principal Name 1 |
Dr. A.C.
Muthiah |
||
|
Status |
Moderate |
Principal Name 2 |
Mr. Ar
Rm Arun |
||
|
|
|
Registration # |
18-011434 |
||
|
Street Address |
5, CMDA Industrial Estate, Maraimalai Nagar, Chennai – 603209,
Tamilnadu |
||||
|
Established Date |
26.12.1984 |
SIC Code |
-- |
||
|
Telephone# |
91-44-47405490 |
Business Style 1 |
Manufacturing |
||
|
Fax # |
91-44-47405303 |
Business Style 2 |
Marketing |
||
|
Homepage |
Product Name 1 |
Integrated Circuits |
|||
|
# of employees |
437 Regular Employees besides 180 Apprentices
and Trainees. [Approximately] |
Product Name 2 |
- |
||
|
Paid up capital |
Rs.461,325,000/- |
Product Name 3 |
- |
||
|
Shareholders |
Promoters and Promoter Group-55.97% / Public Shareholding – 44.03% |
Banking |
State Bank of Canara Bank |
||
|
Public Limited Corp. |
NO |
Business Period |
27 Years |
||
|
IPO |
NO |
International Ins. |
- |
||
|
Public |
NO |
Rating |
B [30] |
||
|
Related
Company |
|||||
|
Relation
|
Country
|
Company
Name |
CEO |
||
|
Holding
Company |
- |
Southern Petrochemical Industries
Corporation Limited (SPIC) |
- |
||
|
Note |
- |
||||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
138,514,000 |
Current Liabilities |
144,173,000 |
|
Inventories |
157,633,000 |
Long-term Liabilities |
352,894,000 |
|
Fixed Assets |
1,040,613,000 |
Other Liabilities |
143,526,000 |
|
Deferred Assets |
0 |
Total Liabilities |
640,593,000 |
|
Invest& other Assets |
217,636,000 |
Retained Earnings |
452,478,000 |
|
|
|
Net Worth |
913,803,000 |
|
Total Assets |
1,554,396,000 |
Total Liab. & Equity |
1,554,396,000 |
|
Total Assets (Previous Year) |
1,433,085,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
913,301,000 |
Net Profit |
45,298,000 |
|
Sales(Previous yr) |
871,600,000 |
Net Profit(Prev.yr) |
61,084,000 |
MIRA
INFORM REPORT
|
Report Date : |
10.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
SPEL SEMICONDUCTOR LIMITED |
|
|
|
|
Registered
Office : |
5, CMDA Industrial Estate, Maraimalai Nagar, Chennai – 603209,
Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
26.12.1984 |
|
|
|
|
Com. Reg. No.: |
18-011434 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.461.325 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L32201TN1984PLC011434 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES02438C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS8519B |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Integrated Circuits. |
|
|
|
|
No. of Employees
: |
437 Regular Employees besides 180 Apprentices and Trainees.
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
B [30] |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
USD 3650000 |
|
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. The company can be considered for business dealings with some
cautions. |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office /Factory : |
5, CMDA Industrial Estate, Maraimalai Nagar, Chennai – 603209, |
|
Tel. No.: |
91-44-47405490 / 47405473 |
|
Fax No.: |
91-44-47405303 / 47405404 |
|
E-Mail : |
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|
Website : |
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Overseas Office 1 : |
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|
|
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Overseas Office 2 : |
Alfonsstrasse 12, D-85551 |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. A.C.
Muthiah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ar
Rm Arun |
|
Designation : |
Vice
Chairman |
|
|
|
|
Name : |
Mr. S.R.
Vijayakar |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. T.S.
Vijayaraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. A.
Besant C Raj |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Ashwin C Muthiah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.
Sivashanmugam |
|
Designation : |
Whole-time
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. S. Arunachalam |
|
Designation : |
Head Corporate Affairs and Company Secretary |
|
|
|
|
Name : |
Mr. D. Balakrishnan |
|
Designation : |
Chief Executive
Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Bodies Corporate |
25811207 |
55.97 |
|
Sub Total (A)
(1) |
25811207 |
55.97 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
8600 |
0.02 |
|
Financial Institutions / Banks |
100 |
- |
|
Foreign Institutional Investors |
9000 |
0.02 |
|
Sub Total (B)
(1) |
17700 |
0.04 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
1575173 |
3.42 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
11843093 |
25.68 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
5785487 |
12.55 |
|
|
|
|
|
Any other
specify |
1084783 |
2.35 |
|
Clearing Members |
14584 |
0.03 |
|
Hindu Undivided families |
822270 |
1.78 |
|
Non Resident indians |
244379 |
0.53 |
|
Trusts |
3550 |
0.01 |
|
Sub Total (B)
(2) |
20288536 |
43.99 |
|
(B) = (B) (1) +
(B) (2) |
20306236 |
44.03 |
|
Total (A) + (B) |
46117443 |
100.00 |
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
- |
- |
|
Total (A) + (B) +(C) |
46117443 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Integrated Circuits. |
||||||||
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|
|
||||||||
|
Products : |
|
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Integrated Circuits |
Million Nos. |
473 |
473 |
317.06 |
|
|
|
|
|
|
GENERAL INFORMATION
|
Customers : |
·
Quality Semiconductor Inc. (QSI), · Integrated Devices Technology (IDT) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
No. of Employees : |
437 Regular Employees besides 180 Apprentices and Trainees.
[Approximately] |
||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Natarajan and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
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Associates/Subsidiaries : |
|
|
|
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|
Holding Company : |
|
|
|
|
|
Other Related Parties : |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60,000,000 |
Equity Shares |
Rs. 10/- each |
Rs.600.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
46,147,613 |
Equity Shares |
Rs.10/- each |
Rs.461.476 Millions |
|
|
Subscribed & Paid-up Capital |
|
|
|
46,117,443 |
Equity Shares |
Rs.10/- each |
Rs.461.174 Millions |
|
30,170 |
Add : Forfeited Shares |
Rs. 5/- each |
Rs. 0.151 Millions |
|
|
Total |
|
Rs.461.325 Millions |
Paid-up Capital includes 1,52,59,213 Equity Shares at a premium of Rs.15/- to Promoters as per the order of Madras High Court for the approval of the scheme of Financial Restructuring of the Company in 2004-05.
Holding Company held 2,58,11,207 Equity Shares as on Mar 31,
2011.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
461.325 |
461.325 |
461.325 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
452.478 |
407.180 |
346.095 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
913.803 |
868.505 |
807.420 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
258.394 |
225.788 |
339.692 |
|
|
2] Unsecured Loans |
94.500 |
68.227 |
103.289 |
|
|
TOTAL BORROWING |
352.894 |
294.015 |
442.981 |
|
|
DEFERRED TAX LIABILITIES |
118.594 |
107.729 |
86.865 |
|
|
|
|
|
|
|
|
TOTAL |
1385.291 |
1270.249 |
1337.266 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1040.613 |
1120.866 |
1164.581 |
|
|
Capital work-in-progress |
217.632 |
3.391 |
3.150 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.004 |
0.004 |
0.004 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
157.633
|
165.320 |
144.580 |
|
|
Sundry Debtors |
45.736
|
78.732 |
40.816 |
|
|
Cash & Bank Balances |
45.733
|
15.807 |
50.023 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
47.045
|
48.965 |
70.727 |
|
Total
Current Assets |
296.147
|
308.824 |
306.146 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
126.185
|
106.483 |
76.010 |
|
|
Other Current Liabilities |
17.988
|
23.976 |
60.605 |
|
|
Provisions |
24.932
|
32.377 |
0.000 |
|
Total
Current Liabilities |
169.105
|
162.836 |
136.615 |
|
|
Net Current Assets |
127.042
|
145.988 |
169.531 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1385.291 |
1270.249 |
1337.266 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
913.301 |
871.600 |
810.026 |
|
|
|
Other Income |
17.374 |
14.917 |
22.228 |
|
|
|
TOTAL (A) |
930.675 |
886.517 |
832.254 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and other Expenses |
747.846 |
690.261 |
620.726 |
|
|
|
TOTAL (B) |
747.846 |
690.261 |
620.726 |
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
182.829 |
196.256 |
211.528 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
17.325 |
21.457 |
32.398 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
165.504 |
174.799 |
179.130 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
88.135 |
81.846 |
83.045 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
BEFORE TAX (E-F) (G) |
77.369 |
92.953 |
96.085 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
32.071 |
31.869 |
33.731 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
AFTER TAX (G-H) (I) |
45.298 |
61.084 |
62.354 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
197.742 |
136.658 |
96.798 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
243.040 |
197.742 |
159.152 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
912.350 |
870.865 |
809.007 |
|
|
|
Scrap Sales |
0.000 |
0.000 |
0.660 |
|
|
TOTAL EARNINGS |
912.350 |
870.865 |
809.667 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Consumables |
379.867 |
409.119 |
310.014 |
|
|
|
Capital Goods & Spares |
141.077 |
84.194 |
48.769 |
|
|
TOTAL IMPORTS |
520.944 |
493.313 |
358.783 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.98 |
1.32 |
1.35 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2011 |
|
Type |
|
|
|
1st Quarter |
|
Sales Turnover |
|
|
|
191.470 |
|
Total Expenditure |
|
|
|
159.380 |
|
PBIDT (Excl
OI) |
|
|
|
32.090 |
|
Other Income |
|
|
|
6.350 |
|
Operating
Profit |
|
|
|
38.440 |
|
Interest |
|
|
|
4.720 |
|
Exceptional
Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
33.720 |
|
Depreciation |
|
|
|
22.650 |
|
Profit
Before Tax |
|
|
|
11.060 |
|
Tax |
|
|
|
3.670 |
|
Reported PAT |
|
|
|
7.390 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
7.390 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.87
|
6.89 |
7.49 |
|
|
|
|
|
|
|
(PBT/Sales) |
(%) |
8.47
|
10.66 |
11.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.79
|
6.50 |
6.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.11 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.53 |
0.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.75
|
1.90 |
2.24 |
LOCAL AGENCY FURTHER INFORMATION
Global and Indian
Industry scenario
The global “Great Recession” during the year 2009 shook up the global
Semiconductor industry in a major way but the year 2010 has brought in a lot of
confidence to the Semiconductor industry and to the global economy as a whole.
The Semiconductor industry has risen by 31.8% in the year 2010. The
outlook for the year 2011 looks promising with a 9% growth predicted; global
Semiconductor revenues are expected to reach US$ 325 Billion up from US$ 298
Billion in 2010.
Of the total revenues forecasted for the year 2011, about 40 percent can
be attributed to the computing industry, which accounted for sales of $113
Billion. The rapidly growing smart phone segment accounted for about $80
Billion in sales in 2010 and is expected to grow although there is pressure on
price points to remain low.
There are huge growth opportunities for the electronic industry in
SPEL performance
during the year
The Company still continues to be First and only Semiconductor IC
Assembly and Test production facility. It is continuously maintaining this
position despite the market fluctuations and other external factors. SPEL
continues to be a trusted and strategic contract manufacturing partner for many
of the world’s leading Semiconductor companies.
The Company had invested around Rs.60.000 millions during the 1st
Quarter, to address (a) Production bottlenecks to improve productivity (b)
Modernization of equipment for enhanced product mix and (c) equipping itself
for future expansions. This would enable SPEL to address increased outsourcing
from present and potential Customers during FY 2011-12.
Various cost and energy saving measures initiated during FY 2009-10 have
started producing positive results. Due to these proactive approaches and
manpower rationalization SPEL effectively handled the pricing pressures that
resulted from the recession and emerged with reduced impact.
The Computing segment reported a sliding trend in the
Rise of gold prices has propelled the Company towards investment in
copper-process tools. SPEL will place most of its above expansion on
leading-edge process and cooper-interconnect process capacities, both of which
are estimated to boost the Company`s revenue and earnings during FY 2011-12.
Towards the beginning 2011 SPEL started investing Rs. 220.000 millions
in production equipment which will increase its capacity. Funded by a term loan
from nationalized banks, this expansion is primarily on leading-edge process
and copper-interconnect capacities. The additional capacity will be available
from 1st quarter of FY 2011-12, fetching increased sales and enabling SPEL to
further diversify package and market base.
The Management with its strong commitment and extensive support from its
Employees, Suppliers and Customers, has continued to maintain its position as
Profit Making Company, despite the Global Slowdown and Economic Crisis.
Financial
Performance
Sales of the Company for current year have increased by 4.78% over the
previous year. Increased expenditure on manpower, power, marketing expenses,
other overheads, which were necessitated due to operational growth, had an
impact on contribution. All the package lines of the Company are in good demand
and are expected to increase the contribution in future years.
Emphasis on Value
system
The Company has adopted the following as its Core Values. Management is
highly committed to put in practice all these to make sure that they understand
the values that they are into. Training sessions are conducted every month to make all the Employees aware of the
Core Values. All the Employees attend this program at least once in six months
and put it to practice
a. Business Ethics : defines us as a Company
b. Professionalism : defines us as individuals
c. Citizenship : defines their contribution to society
Socio Economic
Concept (SEC)
Understanding human behavior and tuning it towards self-disciplined
citizen underlines the concept of the SEC being implemented in the Company.
Employees were given to apprehend their roles as an individual and his/her
responsibility to bring up fellow citizen so as to make the Country proud. SPEL
appreciates its Employees commitment and complements them by assisting their growth
to become future leaders. In spite of all the recessionary trends Stakeholders
may appreciate the fact that SPEL stood up to the times and posted positive in
PAT.
Directors
Dr. A. Ramakrishna resigned from the Board and his resignation was
accepted at the Board Meeting held on Apr 29, 2011. The Board placed on record
its appreciation for the commendable services rendered by Dr. A. Ramakrishna.
Mr. S. R. Vijayakar and Dr. A. Besant C. Raj are the directors retiring
at the ensuing Annual General Meeting. As both are being eligible, offering
themselves for reappointment. A brief profile of both directors is provided as
follows :
Mr. S. R.
Vijayakar
Mr. S. R. Vijayakar holds an Honours Degree in Electrical and Mechanical
Engineering. After two years experience in the
Dr. A. Besant C
Raj
Dr. A. Besant C Raj is an MBA from the Indian Institute of Management,
Ahmedabad (First Batch). He also holds a Doctoral degree in Business
Administration from the
Management
Discussion and Analysis
Business
Environment
The Global Semiconductor sales for the year 2010 were US$ 298.3 Billion,
an increase of 31.8% compared to 2009 sales of US$ 226.3 Billion. However,
sales declined by 3 percent in Dec 2010 compared with a month earlier. This is
due to the inventory correction.
Overall, Asia-Pacific region represented 54 percent of global
Semiconductor sales, while the
Impact of the Japan Earthquake and Tsunami on the Semiconductor market
in 2011
In the longer term, they believe the impact is not likely to be
significant in terms of the worldwide Semiconductor market. Since the industry is not running at
full capacity (93.1% IC capacity utilization in 4Q of CY 2010 according to
SICAS), most short term Semiconductor capacity loss in Japan can be made up
elsewhere – although likely by competing companies. Many Japanese companies are
still major suppliers of electronics, but much of their manufacturing has been
moved to other parts of Asia (especially
Although the situation in
Global Trend for
SPEL’s package lines
Global volume and revenue forecast for Integrated Circuits are as below.
The outlook for the year 2011 looks promising with a 9% growth
predicted; global Semiconductor revenues are expected to reach US$ 325 Billion
up from US$ 298 Billion in 2010. Digitimes Research, also forecast that the
market for outsourced IC backend services will continue growing in 2011 to
account for more than 50% of the total market, while the IDM segment is
expected to carry on its slide.
As the Company’s share in the global volumes and revenues is small,
there is a good potential for increasing the volumes and revenues by widening
the Product Portfolio, Customer base and further enhancing the QCDS (Quality,
Cost, Delivery and Service) factors
PC Market
Consumption has been below expectations, and the enterprise PC
replacement cycle has weakened. In 2011, Semiconductor revenue from PCs is
projected to decline 3.25% to $62 Billion. The decline is the result of reduced
DRAM prices in 2011. Revenue for other PC Semiconductor components, including
CPUs, will increase.
Mobile Phones
The outlook for mobile phone production has improved. Overall
Semiconductor revenue from mobile phones is on pace to total $48.7 Billion in
2010, a 23.2% increase from 2009. In 2011, worldwide Semiconductor revenue from
mobile phones is projected to reach $55.4 Billion,a 13.6% increase from 2010.
Smart Phones
However, some of this slowdown is being made up for by
stronger-than-expected sales of media tablets. From an application perspective,
smart phones, mobile PCs and media tablets will fuel Semiconductor growth
through 2014. Media tablets are seeing rapid growth due to the success of the
Apple iPad, market will continue to see strong growth with greater competition
in this space. Gartner estimates that Semiconductor revenue from media tablets
will grow from $2.4 Billion in 2010 to $17.8 Billion in 2014.
SPEL Volume and
Revenue Growth
Volume and Revenue for FY 2010-11 saw an increase of 19.24 percent and
6.12 percent respectively.
The increased volume and revenue is due to increased demand for the Semiconductor
products after the recession in 2009. With the increased demand the quarterly
revenue increased by 10% Q-O-Q steadily. The increased gap between the volume
and the revenue is due to the reduced ASP.
Outlook
The global Semiconductor sales declined by around 9% in 2009. However,
the market has seen an improved scenario in 2010 on account of trailing crisis
from later 2009. The Semiconductor industry has risen by 31.8% in the year 2010
and expected to grow at 9% for the year 2011 with revenue of $ 325 Billion. Of
the total revenues forecasted for the year 2011, about 40 percent can be
attributed to the computing industry, which accounted for sales of $113
Billion. The rapidly growing smart phone segment accounted for about $80
Billion in sales in 2010 and is expected grow although there is pressure on
price points to remain low, especially on cellular base band and connectivity
chipsets.
Semiconductor sales in growth areas such as media tablets, e-readers and
LED/LCD TVs is offsetting flat or decreased revenue from more traditional
devices such as DVD players and game consoles. Overall, it is expected that the
consumer industry will grow by another 10 percent in 2011.
Growth in automotive and industrial segments is expected to top 10
percent in 2011. Sectors comprising this segment include high growth areas such
as infotainment, safety and diagnostic systems, engine control, energy/battery
management, M2M communications, smart grid, LED lighting, and factory
automation.
At the regional level Asia-Pacific will account for more than half of
the Semiconductor market by the end of forecast period. Countries such as
Contingent
Liabilities :
Rs.in millions
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
|
i. Letters of Credit for import purchases |
41.906 |
53.876 |
|
ii. Bank Guarantee given for Job work |
0.010 |
0.010 |
|
iii. Guarantees given to Central Excise / banks on behalf of
other companies with corresponding counter guarantees from them |
52.000 |
52.000 |
|
iv. Claims against the Company not acknowledged as debts |
4.591 |
4.591 |
FIXED ASSETS :
§
Land
§
Building
§
Plant and Machinery
§
Furniture and Fixtures
§
Computer
§
Office Equipments
§
Motor Vehicles
As per Website :
Profile
Subject is
Established in 1988 and listed on the Bombay Stock Exchange ever
since, SPEL initially supplied to the domestic market. SPEL soon acquired the
expertise to serve the global market. SPEL’s Customers are some of the biggest
Integrated Device Manufacturers (IDMs) and Fabless Companies in the
SPEL provides full turnkey solutions that include Wafer sort, Assembly, Test and Drop-shipment services which help Customers accelerate time-to-revenue for their new products. SPEL also offers value added services such as Package Design, Failure Analysis and Full Reliability Test, Test Program Development and Product Characterization.
With its manufacturing facilities near Chennai, SPEL has 600
employees and offers more than 100K square feet of manufacturing space. SPEL is
certified for the ISO 9001:2008, ISO 14001:2004, and TS 16949:2009
News
SPEL’s Q1 FY 2011-12
Results
Jul 27, 2011
Announcing its results
for Q1 FY 2011-12, SPEL reported sales of 
191.400 millions ( 227.000 millions for Q4 FY 2010-11), with a
PAT of 7.814 millions ( 10.800 millions for Q4 FY 2010-11). Although
sales were lower in comparison to the previous quarter, SPEL retained
profitability considering higher Deprecation and Interest costs, Customer and
Vendor pricing pressures. Declining demand due to a steep drop in the Computing
segment also contributed to lower sales during the quarter.
SPEL is exploring
various avenues for maximizing sales ; these include growing with existing
Customers and securing new Customers. Progress is also being made towards
increasing sales within non-US markets.
SPEL has also
been driving several cost reduction initiatives. These include going after low
cost financing and importantly alternate low-cost sources of power. These
efforts would contribute a substantial role in improving performance.
According to market
research, overall Semiconductor revenue for Q2 FY 2011-12 is expected to
increase by over 5% Q-o-Q. Historically, Q2 is the strongest quarter for the
Semiconductor industry which will boost demand across the entire Semiconductor
supply chain. This is expected to continue going forward as well.
SPEL was encouraged
to note about the Government of India’s initiatives to boost Semiconductor
Manufacturing within the country. This is considering the increasing
electronics demand within
Having completed 26
years of business success, SPEL steadily continues its journey while remaining
the sole Semiconductor Assembly and Test Company in
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.49.13 |
|
|
1 |
Rs.75.97 |
|
Euro |
1 |
Rs.65.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
30 |
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.