MIRA
INFORM REPORT
|
Report Date : |
29.09.2011 |
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 : |
Manufacturers of PVC Pipes and Fittings, Material Handling Crates and
Plastic Moulded Chairs. |
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No. of Employees
: |
2500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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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 experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are reported to be regular ands 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 – 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 |
INFORMATION DECLINED BY
Management Non Co-operative (Name not disclosed)
LOCATIONS
|
Registered Office : |
612,
Raheja Chambers, Nariman Point, Mumbai - 400021, |
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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 (E), Mumbai - 400 093, Maharashtra |
|
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 : |
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Branch Office: |
Located at:
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Regional Offices
: |
518, 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, Tel.: 91-33-24858840(Dir.),24858837,
24858839 (Board) / 24858846 Fax.: 91-33-
24858838 / 91-40-27616940 |
DIRECTORS
AS ON 30.06.2011
|
Name : |
Mr.
B L Taparia |
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Designation : |
Chairman |
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Date of Birth/Age : |
25.11.1934 |
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Qualification : |
B.Com |
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Date of Appointment : |
15.06.1977 |
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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 |
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Name : |
Mr.
M P Taparia |
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Designation : |
Managing Director |
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Date of Birth/Age : |
22.10.1937 |
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Qualification : |
B.A. |
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Date of Appointment : |
02.08.1966 |
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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 |
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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. E B Desai |
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Designation : |
Director |
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Date of Birth/Age : |
01-04-1931 |
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Qualification : |
B A., L.L B. (Hons) |
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Date of Appointment : |
30.08.2003 |
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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 |
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Qualification : |
B A. |
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Date of Appointment : |
10.09.1966 |
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Chairman /
Director of other companies
: |
1. Permanent Magnets Limited 2. Venu Plantations Limited |
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Name : |
Mr.
Y P Trivedi |
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Designation : |
Director |
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Date of Birth/Age : |
06.01.1929 |
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Qualification : |
B
Com L. L. B. |
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Date of Appointment : |
30.08.2003 |
KEY EXECUTIVES
|
Name : |
Mr.
O P Roongta |
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Designation : |
Senior Vice - President (Finance) and Secretary |
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Name : |
Mr.
J M Totla |
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Designation : |
Senior Vice - President (Operations) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding
of Promoter and Promoter Group |
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3,948,100 |
3.11 |
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59,079,245 |
46.51 |
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63,027,345 |
49.62 |
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Total shareholding
of Promoter and Promoter Group (A) |
63,027,345 |
49.62 |
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(B) Public
Shareholding |
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5,165,238 |
4.07 |
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|
28,875 |
0.02 |
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9,086,731 |
7.15 |
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14,280,844 |
11.24 |
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14,931,147 |
11.75 |
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23,844,462 |
18.77 |
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9,455,006 |
7.44 |
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1,488,066 |
1.17 |
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95,317 |
0.08 |
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1,353,379 |
1.07 |
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39,370 |
0.03 |
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49,718,681 |
39.14 |
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Total Public
shareholding (B) |
63,999,525 |
50.38 |
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Total (A)+(B) |
127,026,870 |
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) |
127,026,870 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers of PVC Pipes and Fittings, Material Handling Crates and
Plastic Moulded Chairs. |
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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 |
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Exports : |
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Countries : |
v
v
v
v
v
v
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Imports : |
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Countries : |
v
v
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Terms : |
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Selling : |
Advance Payment or Credit (60 days) |
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Purchasing : |
Credit (30/60 days) or Cash |
PRODUCTION STATUS (AS ON 30.06.2011)
|
Particulars |
Unit |
Installed
Capacity * |
Actual
Production |
|
Injection Moulded Products |
MT |
102050 |
69284.619 |
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Extruded Products |
MT |
228107 |
152858.733 |
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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
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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 |
|
|
|
|
|
|
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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 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4641.648 |
3527.857 |
2626.703 |
|
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4] Accumulated Losses |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4895.702 |
3781.911 |
2880.757 |
|
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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 |
|
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DEFERRED TAX LIABILITIES |
795.381 |
698.439 |
642.809 |
|
|
|
|
|
|
|
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TOTAL |
10803.457 |
8353.991 |
6010.973 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7416.493 |
5626.038 |
5430.035 |
|
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Capital work-in-progress |
261.706 |
130.836 |
895.236 |
|
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Assets held for disposal |
0.000 |
29.006 |
11.938 |
|
|
|
|
|
|
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INVESTMENT |
336.449 |
336.163 |
336.163 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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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)
|
|
|
|
|
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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 |
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
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|
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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 |
|
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. 425.0 millions vis-ŕ-vis Rs. 330.3 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
Press Releases
THE SUPREME INDUSTRIES LIMITED (SIL) ANNOUNCES UNAUDITED FINANCIAL
RESULTS FOR THE FIRST QUARTER ENDED 30TH SEPTEMBER, 2010.
Mumbai, 19th October, 2010 – The Supreme Industries Limited (SIL),
India’s leading processors of Plastics, announced its Un-audited financial
results for the first quarter ended 30th September, 2010, at its Board Meeting
held today.
The financial performance highlights for the 1st Quarter
ended 30th September, 2010, are as follows –
- The Company
processed 45,531 MT Polymers during the 1st Quarter of the Current Year
against 38,611 MT in the corresponding quarter of the previous year
achieving volume growth of 18%.
- SIL’s, Total Income and Operating
Profit for the 1st quarter of the current year amounted to Rs. 4733.600
millions and Rs. 782.200 millions (including Rs. 356.000 millions and Rs.
214.900 millions, respectively from sale of premises in Commercial
Complex), as compared to Rs. 3433.800 millions and Rs. 512.900 millions,
for the corresponding quarter of the previous year, recording an increase
of 37.85% and 52.50% respectively.
- The Profit before
Tax and Profit after Tax, for the 1st quarter of the current year amounted
to Rs. 603.100 millions and Rs. 403.100 millions (including Rs. 214.900
millions and Rs. 146.400 millions, respectively, from sale of premises in
Commercial Complex), as compared to Rs. 298.600 millions and Rs. 198.600
millions, for the corresponding quarter of the previous year, recording an
increase of 101.98% and 102.97% respectively.
THE FINANCIAL PERFORMANCE IS
SUMMARIZED BELOW – (RS. IN MILLIONS)
|
Particulars |
Financial Results
for the 1st Quarter year ended 30th September |
Financial Results
for the year ended 30th June 2010 |
||
|
|
2010 |
2009 |
Change (%) |
|
|
Total Income |
4733.600 |
3433.800 |
37.85 |
20148.800 |
|
Operating Profit (PBDIT) |
782.200 |
512.900 |
52.50 |
2984.800 |
|
Cash Profit (PAT + D) |
545.900 |
323.300 |
68.85 |
1977.500 |
|
Profit Before Tax |
603.100 |
298.600 |
101.98 |
2196.200 |
|
Net Profit |
403.100 |
198.600 |
102.97 |
1448.300 |
Commercial Complex viz. “Supreme Chambers” consisting of 10 floors,
comprised of saleable area of 2,75,000 sq. ft., with most modern state of the
art amenities/facilities, at Company's site at Andheri (West), Mumbai, is ready
for occupation. During the quarter Company has realised Rs.356.000 millions
from sale of 23,081 sq. ft. of the premises and shown separately under
"Net Sales (Construction business)". Proportionate cost thereof
including interest on funds employed has been shown as "Cost of premises
Sold". Other overheads pertaining to sale of premises amounting to
Rs.14.105 millions have been shown under respective head of expenditure.
Provision for Corporate Tax includes Rs.68.500 millions towards profit accrued
from construction business.
MR. M. P. TAPARIA, MANAGING DIRECTOR, THE SUPREME INDUSTRIES LIMITED,
SAID:
“Seeing the good growth potential in all the product segments, where the
Company operates, and due to the increased demand coming from automotive,
agriculture, industrial and consumer sectors, the Company has committed to
invest sum of Rs. 3250.000 millions in the current year, which also includes
sum of Rs. 500.000 millions allocated for the manufacture of domestic LPG
composite Cylinders. The share of value added products are growing resulting
into improved operating profit margin. The company expects to achieve a volume
growth of 20% plus in the current year.”
ABOUT SUPREME INDUSTRIES LIMITED
Supreme Industries Limited is
Supreme Industries has 19 technologically advanced manufacturing facilities
located at various places spread across the country. The company has built up
excellent relationship with its distributors and is also providing orientation
to them, in order to ensure proper service to ultimate customers.
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. 48.91 |
|
|
1 |
Rs. 76.53 |
|
Euro |
1 |
Rs. 66.43 |
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.