MIRA
INFORM REPORT
|
Report Date : |
07.05.2013 |
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 – 400 021, |
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Country : |
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Financials (as
on) : |
30.06.2012 |
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Date of
Incorporation : |
17.02.1942 |
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Com. Reg. No.: |
11-003554 |
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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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PAN No.: [Permanent Account No.] |
AAACT1344F |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares 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
: |
Information declined by the Management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
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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 25660000 |
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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 having a fine
track record. The financial position of the company is sound and healthy. Directors are
well-experienced and knowledgeable businessmen. The performance capability of
the company is good. Trade relations are reported as trustworthy. Business is active.
Payment terms are regular and as per commitment. The company can be considered good 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA- (Long term
rating) |
|
Rating Explanation |
High degree of
safety and very low credit risk. |
|
Date |
March, 2013 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (Short term
rating) |
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Rating Explanation |
Very strong
degree of safety and lowest credit risk. |
|
Date |
March, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. P.V. Prabhu |
|
Designation : |
Finance Manager |
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Contact No.: |
91-22-22851656 |
|
Date : |
06.05.2013 |
LOCATIONS
|
Registered Office : |
612, Raheja Chambers, Nariman Point, Mumbai – 400 021, |
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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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Area : |
3000 sq ft |
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Location : |
Owned |
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Corporate Office : |
1161 and 1162, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri
Ghatkopar Link Road, Andheri (East), Mumbai - 400 093, Maharashtra, India |
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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: v
Derabassi ( v
v
Gadegaon ( v
Guwahati ( v
Halol ( v Hosur (Tamilnadu) v
Jalgaon - Unit I ( v
Jalgaon - Unit II ( v
Kanhe ( v
v
Khopoli ( v Khushkheda (Rajasthan) v Malanpur 1 (Madhya Pradesh) v Malanpur 2 (Madhya Pradesh) v Noida, Gautam Buddh Nagar (Uttar Pradesh) v
Puducherry ( v
Silvassa ( v Sriperumbudur (Tamilnadu) v
Urse ( |
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Branch Office : |
Located at: v Ahmedabad v
v Chennai v
v
v
v
v Kolkata v Mumbai v
v Pune |
DIRECTORS
As on 30.06.2012
|
Name : |
Mr. B.L. Taparia |
|
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 |
|
Chairman / Director of other companies : |
v
Supreme Petrochem Limited v
Supreme Capital Management Limited v
Varali Investment and Trading Company Private
Limited v
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 : |
v
Supreme Petrochem Limited v
Supreme Capital Management Limited v
Rama Newsprit and Paper Limited v
SPL Industrial Park Limited v
SPL Industrial Support Services Limited v
Kabra Extrusion Technik Limited v
Multilayer Films Private Limited v
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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Expertise
in specific functional area : |
Overall guidance in forming Business
Policies |
|
Date of Appointment : |
25.09.1996 |
|
Chairman
/ Director of other companies : |
v CRISIL Limited v Excel Crop Care
Limited v Grasim Industries
Limited v J. K. Lakshmi
Cement Limited v L & T
Infrastructure Finance Company Limited v Grasim Bhiwani
Textiles Limited v L & T Finance
Holding Limited |
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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. (Hons.), L.L.B. |
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Expertise
in specific functional area : |
Overall guidance in forming Business
Policies and Corporate Social Responsibility Work |
|
Date of Appointment : |
10.09.1966 |
|
Chairman / Director of other companies : |
v Permanent Magnets
Limited v 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 : |
O.P. Roongta |
|
Designation : |
Senior Vice-President (Finance) and
Secretary |
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|
Name : |
Mr. P.V. Prabhu |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
|
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|
3290590 |
2.59 |
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|
59746755 |
47.03 |
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|
63037345 |
49.63 |
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Total shareholding of Promoter and Promoter Group (A) |
63037345 |
49.63 |
|
(B) Public Shareholding |
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|
8975860 |
7.07 |
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|
127345 |
0.10 |
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|
18208102 |
14.33 |
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|
27311307 |
21.50 |
|
|
|
|
|
|
9386718 |
7.39 |
|
|
|
|
|
|
20420819 |
16.08 |
|
|
6116050 |
4.81 |
|
|
754631 |
0.59 |
|
|
25641 |
0.02 |
|
|
663960 |
0.52 |
|
|
39370 |
0.03 |
|
|
25660 |
0.02 |
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|
36678218 |
28.87 |
|
Total Public shareholding (B) |
63989525 |
50.37 |
|
Total (A)+(B) |
127026870 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
127026870 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name
of the Shareholder |
No. of Shares held |
As a % of |
|
1 |
Venktesh Investmemt and Trading Co
(Private) Limited |
19693081 |
15.50 |
|
2 |
Jovial Investment and Trading Co (Private)
Limited |
19847082 |
15.62 |
|
3 |
Boon Investment and Trading Co (Private)
Limited |
20206592 |
15.91 |
|
4 |
Shivratan Jeetmal Taparia |
703816 |
0.55 |
|
5 |
Mahaveerprasad S. Taparia |
814186 |
0.64 |
|
6 |
Vijaykumar Bajranglal Taparia |
344890 |
0.27 |
|
7 |
Bajranglal Surajmal Taparia |
367398 |
0.29 |
|
8 |
Vivek Kumar Taparia |
272230 |
0.21 |
|
9 |
Kamleshdevi M Taparia |
347830 |
0.27 |
|
10 |
Kusumdevi S Taparia |
98690 |
0.08 |
|
11 |
Priyankadevi Taparia |
141500 |
0.11 |
|
12 |
Viren Vivek Taparia |
200050 |
0.16 |
|
|
Total |
63037345 |
49.63 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
|
|
|
|
1 |
Nalanda India Fund Limited |
8176502 |
6.44 |
|
2 |
Mayank Jashwantlal Shah |
1969061 |
1.55 |
|
3 |
Matthews India Fund |
2100000 |
1.65 |
|
4 |
HDFC Trustee Company Limited A/c HDFC Mid Capopportunities Fund |
3577514 |
2.82 |
|
5 |
Amrit Petroleums Private Limited |
1925000 |
1.52 |
|
6 |
HSBC Bank (Mauritius) Limited A/c Jwalamukhi Investments Holdinds |
4895172 |
3.85 |
|
|
Total |
22643249 |
17.83 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public”
and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
1 |
Nalanda India Fund Limited |
8176502 |
6.44 |
|
|
Total |
8176502 |
6.44 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in production of plastic products. |
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Products : |
v Moulded Furniture v Material Handling Products v Petrochemicals v XF Films and Products (SILPAULIN) v Performance Films v Industrial Moulded Products v Protective Packaging Products v Plastic Piping System |
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.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the Management |
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Bankers : |
v Central Bank of India, Fort, Mumbai – 400 023, Maharashtra, India v
State Bank of v BNP Paribas v ICICI Bank Limited v
Bank of v IDBI Bank Limited v Axis Bank Limited v Vijaya Bank v Standard Chartered Bank |
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Facilities : |
Notes: LONG
TERM BORROWINGS Term
Loans from banks and financial institutions are secured on first pari passu
charge basis as under: Immovable
properties of the company, situated at certain locations of the company. Movable
properties of the company viz. plant, machineries and moulds, both present
and future, situated at all the locations of the company. SHORT
TERM BORROWINGS Working
Capital Loans from Banks mentioned as above are secured against: First
pari passu charge by way of hypothecation of stocks and Book Debts, both
present and future Second
/ subservient charge on all movable properties of the company viz. plant,
machineries and moulds, both present and future, situated at all the
locations of the company. Second
/ subservient charge on all immovable properties of the company, situated at
certain locations of the company. |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Chhogmal and Company Chartered Accountants |
|
Address : |
Mumbai, |
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|
|
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Subsidiary Company : |
v
The
Supreme Industries Overseas FZE |
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|
|
|
Associates : |
v
Supreme
Petrochem Limited v
Supreme
Capital Management Limited v
Platinum
Plastics and Industries Private Limited v
Suraj
Packaging Private Limited v
Venkatesh
Investment and Trading Company Private Limited v
Jovial
Investment and Trading Company Private Limited v
Boon
Investment and Trading Company Private Limited |
CAPITAL STRUCTURE
As on 30.06.2012
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 |
Rs.2/- each |
Rs.254.054
millions |
|
|
|
|
|
The company bought back and extinguished
2211300 numbers of Equity Shares of Rs.10 each during the year 2008-09
The
details of Shareholders holding more than 5% shares:
|
Name
of the Shareholders |
As at 30.06.2012 |
|
|
No.
of Equity Shares |
%
of Holding |
|
|
Boon Investment and Trading Company
Private Limited |
20206592 |
15.91% |
|
Jovial Investment and Trading Company
Private Limited |
19847082 |
15.62% |
|
Venkatesh Investment and Trading Company
Private Limited |
19693081 |
15.50% |
|
HDFC Mutual Fund |
9589848 |
7.55% |
|
Nalanda India Fund Limited |
8176502 |
6.44% |
The
reconciliation of the number of equity shares outstanding is set out below:
|
|
As at 30.06.2012 |
|
|
Numbers |
Amount (Rs.
in millions) |
|
|
Equity Shares at the beginning of the
year |
127026870 |
254.054 |
|
Equity Shares at the end of the year |
127026870 |
254.054 |
Terms/rights attached
to Equity shares:
The company has only one class of issued Equity Shares having a par value of Rs.2 per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
254.054 |
254.054 |
254.054 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6160.559 |
4641.648 |
3527.857 |
|
|
4] Accumulated Losses |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6414.613 |
4895.702 |
3781.911 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1580.415 |
2972.051 |
2691.288 |
|
|
2] Unsecured Loans |
956.809 |
1500.454 |
1182.353 |
|
|
TOTAL BORROWING |
2537.224 |
4472.505 |
3873.641 |
|
|
DEFERRED TAX LIABILITIES |
832.584 |
795.382 |
698.439 |
|
|
|
|
|
|
|
|
TOTAL |
9784.421 |
10163.589 |
8353.991 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7393.796 |
7416.493 |
5626.038 |
|
|
Capital work-in-progress |
338.096 |
261.706 |
130.836 |
|
|
Assets held for disposal |
0.000 |
0.000 |
29.006 |
|
|
|
|
|
|
|
|
INVESTMENT |
336.412 |
336.449 |
336.163 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3140.128
|
3454.050
|
2906.428
|
|
|
Sundry Debtors |
1716.794
|
1530.123
|
1314.425
|
|
|
Cash & Bank Balances |
138.651
|
139.533
|
182.522
|
|
|
Other Current Assets |
30.332
|
25.027
|
0.000
|
|
|
Loans & Advances |
1671.958
|
1509.537
|
977.431
|
|
Total
Current Assets |
6697.863
|
6658.270
|
5380.806
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2060.612
|
1606.656
|
1273.142
|
|
|
Other Current Liabilities |
2012.525
|
2187.495
|
1263.065
|
|
|
Provisions |
908.609
|
715.178
|
612.651
|
|
Total
Current Liabilities |
4981.746
|
4509.329
|
3148.858
|
|
|
Net Current Assets |
1716.117
|
2148.941
|
2231.948
|
|
|
|
|
|
|
|
|
MISCELLNEOUS EXPENDITURE |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9784.421 |
10163.589 |
8353.991 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from
operations |
29653.047 |
24689.825 |
20057.376 |
|
|
|
Other Income |
109.151 |
96.981 |
162.155 |
|
|
|
TOTAL (A) |
29762.198 |
24786.806 |
20219.531 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials
consumed |
18448.649 |
|
17162.854 |
|
|
|
Purchases of
Traded Goods |
1034.112 |
858.211 |
|
|
|
|
Changes in
inventories of finished goods, work-in-progress and traded goods |
131.674 |
(197.009) |
|
|
|
|
Employee benefits
expenses |
1120.520 |
964.288 |
|
|
|
|
Other expenses |
4199.089 |
3730.211 |
|
|
|
|
TOTAL (B) |
24934.044 |
21115.883 |
17162.854 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4828.154 |
3670.923 |
3056.677 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
547.967 |
425.019 |
330.271 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4280.187 |
3245.904 |
2726.406 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
724.628 |
618.862 |
529.204 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3555.559 |
2627.042 |
2197.202 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1150.400 |
877.342 |
748.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
2405.159 |
1749.700 |
1448.302 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
190.540 |
165.135 |
127.027 |
|
|
|
Proposed Dividend on Equity Shares |
571.621 |
381.080 |
330.270 |
|
|
|
Corporate Dividend Tax Paid |
|
27.427 |
21.588 |
|
|
|
Provision for Corporate Dividend Tax |
|
61.821 |
54.854 |
|
|
|
Transferred to General Reserve |
1519.357 |
1114.237 |
914.563 |
|
|
BALANCE CARRIED
TO THE B/S |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export (On FOB Basis) |
680.284 |
617.125 |
587.403 |
|
|
TOTAL EARNINGS |
680.284 |
617.125 |
587.403 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials & Components |
4930.099 |
5135.708 |
5433.978 |
|
|
|
Stores & Spares |
20.594 |
4.951 |
4.419 |
|
|
|
Capital Goods |
460.403 |
639.779 |
242.634 |
|
|
TOTAL IMPORTS |
5411.096 |
5780.438 |
5681.031 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.93 |
13.77 |
57.01 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2012 (1st
Quarter) |
31.12.2012 (2nd
Quarter) |
31.03.2013 (3rd
Quarter) |
|
Net Sales |
6176.300 |
8148.200 |
9176.600 |
|
Total Expenditure |
5327.200 |
6956.200 |
7833.700 |
|
PBIDT (Excl OI) |
849.200 |
1192.000 |
1342.900 |
|
Other Income |
0.500 |
40.500 |
0.700 |
|
Operating Profit |
849.700 |
1232.500 |
1343.600 |
|
Interest |
114.600 |
138.300 |
137.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
735.100 |
1094.200 |
1206.100 |
|
Depreciation |
185.800 |
190.000 |
197.000 |
|
Profit Before Tax |
549.400 |
904.200 |
1009.100 |
|
Tax |
177.500 |
282.500 |
330.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
371.900 |
621.700 |
679.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
371.900 |
621.700 |
679.100 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
PAT / Total
Income |
(%) |
8.08
|
7.06
|
7.16
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.99
|
10.64
|
10.95
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.23
|
18.66
|
19.96
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.55
|
0.54
|
0.58
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.40
|
0.91
|
1.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.34
|
1.48
|
1.71
|
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.06.2012 (Rs. in millions) |
30.06.2011 (Rs. in millions) |
30.06.2010 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
- Micro, Small and Medium Enterprises |
55.989 |
40.031 |
1273.142 |
|
- Others |
2004.623 |
1566.625 |
|
|
Total |
2060.612 |
1606.656 |
1273.142 |
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
|
Unsecured Loans |
30.06.2012 (Rs.
in Millions) |
30.06.2011 (Rs.
in Millions) |
|
LONG
TERM BORROWINGS |
|
|
|
Fixed Deposits |
37.769 |
152.560 |
|
Deferred payment liabilities (Under Sales
Tax Deferral Scheme) |
23.627 |
25.959 |
|
Long term maturities of finance lease
obligations |
0.904 |
0.000 |
|
SHORT
TERM BORROWINGS |
|
|
|
Foreign Currency Loans - Buyer's Credit |
894.509 |
1321.935 |
|
Total
|
956.809 |
1500.454 |
SUPREME PETROCHEM LIMITED (SPL):
The Board of Directors of Supreme Petrochem
Limited (SPL) – promoted jointly by the Company and the R Raheja Group has
recommended a dividend of Rs.1.40 per equity share of Rs.10 each for the year
ended June 30, 2012. Net revenues and net profit for the year were Rs.2276.700
millions and Rs.313.700 millions respectively.
The new plants for Expandable
Polystyrene (including Cup Grade EPS) commenced commercial production from
February, 2012. SPL’s total installed capacity for EPS thus stands at 72,100
TPA considering its plant sites in
The debottlenecking of the existing Polystyrene lines to increase the
production capacity of premium value added grades by 50000 TPA within the
overall capacity of 272000 TPA is progressing as per schedule and is likely to
be completed by the quarter ended December 31, 2012.
The environment clearance for the 4000 KVA Captive Gas Engine Power
plant has been received. Consent to operate is awaited from Maharashtra
Pollution Control Board. The plant is expected to start by September 2012.
SUBSIDIARY
COMPANY:
The Supreme Industries Overseas
(FZE), a wholly owned subsidiary of the Company incorporated in SAIF Zone, UAE
is continue to support company’s plans to increases exports in Gulf and Middle East
countries. In spite of negative sentiments and slowdown in construction
activity globally, it has managed to secure growth during the year, though
marginally, in exports of piping system. It has presence in more than 17
countries in the region and customers are being well serviced by the company.
This company has made a loss of AED 29,579 during the year.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW:
The World economy is moving into a
slower growth phase principally due to the problems faced by the European
economy and bleak prospects of
From the low level reached in the
market, fluctuations in the prices of Commodity plastics was between USD 50 to
100 per ton in the last 2-3 weeks. Indian economy is further adversely affected
due to non-decisiveness by Centre and various State Governments on various
pending issues which may lead the GDP growth to a lower level of around 6.5%
during the year 2012-13.
INDUSTRY STRUCTURE AND DEVELOPMENT:
The consumption of Plastics in the
Country increased by only 6% in the year 2011-12 which shows significant
slowdown in the consumption of Plastics in their country. It rarely happened
that the growth of consumption of Plastics is lower than the GDP growth.
Normally, it used to be around 1.5 plus times of GDP growth in their country.
This low growth may be due to high
cost of raw material exacerbated by Rupee depreciation which might have led to
increased use of reprocessed plastics material. Lower consumption of Plastics
may also be due to increase in imports of plastics products from surrounding
countries viz
In this situation, Company is encouraged by the building up of local
plants for the manufacturing of various polymers in
Gas prices have become quite low in
Non-implementation of Goods and
Service Tax (GST) could not integrate the country’s economy fully. The same has
been inordinately delayed. It is still unclear whether GST can be in place even
in 2013-14. However, the Central and State Governments continue to allocate
larger sums of monies to boost Agricultural productivity and to improve the
facilities for potable water supply and sanitation.
These moves of the Government’s
have given additional opportunity to the Company to boost its business in
Agriculture, potable water supply and sanitation.
Company is coming out with cost efficient alternatives to cater to these
segments compared to the products made from conventional materials.
PRODUCT GROUPS
The product groups of the Company
have been recast as follows:
|
Group
|
Products
|
|
Plastics Piping System |
uPVC Pipes, Injection Moulded fittings and
handmade fittings, Polypropylene Random Co-polymer pipes and fittings, HDPE
Pipe Systems, CPVC Pipes Systems, LLDPE Tube and Inspection Chambers and
manholes. |
|
Consumer products |
Furniture |
|
Industrial Products |
Industrial products, Material handling
System and Pallets |
|
Packaging Products |
Flexible packaging film products,
Protective Packaging Products, Cross Laminated Film products |
|
Composite Products |
LPG Gas Cylinders, Composite Pipes |
The net turnover (including other income) of the Company was
Rs.29762.200 millions (including
Rs.880.300 millions by way of trading
in other related products and Rs.691.600 millions from sale of
premises) as against Rs.24786.800 millions (including
Rs.629.400 millions by way of trading
in other related products and Rs.397.500 millions from sales of
premises) of the previous year.
The Company has processed (excluding discontinued business of PP Mats)
245700 tons of Polymers as against 223751 tons of Polymers in the previous
year, reflecting a growth of 9.81% in Polymer consumption.
The Company exported (excluding discontinued business of PP Mats) goods
worth US$ 13.49 million as against US$ 11.21 million in the previous year
registering a growth of 20.34%.
Profit before interest, depreciation and exceptional items and taxes
during the year have gone up by 31.52% from Rs.3670.900 millions to Rs.4828.200 millions during the year.
COMPANY’S STRENGTH AND GROWTH DRIVERS
MANUFACTURING SITES
The Company had a plant to manufacture rigid PVC film at Malanpur. Its
operations were discontinued long back. Land and Building were mostly lying
idle. A small area was being used for Poly Foam Products.
With increase in demand of Plastics pipe products, the company has
decided to utilize this facility to put up a large facility to manufacture
Plastics Pipe System. Accordingly, Protective Packaging Products manufacturing
which were produced there in small way were shifted to another unit and same
land and building are being used to put up plastics pipe system plant at an
investment of around Rs.1500.000 millions over a period of
two years. Part of the capacity may be operational by October 2012.
Apart from activating this unit in a big way, the Company has plans to
commence production of Composite Cylinders at Halol, Protective Packaging
Products at Hosur and also the start up of production of Cross Laminated film
products at another site at Halol. These plants are scheduled to go into
production- one after another-starting from September 2012 onwards.
Beginning January 2013, the Company will have 22 plants manufacturing
varieties of products spread across the country to meet the requirements of its
customers of varied quality plastics products in cost effective manner.
The Company is quite encouraged by diversifying to production of
Composite Products. The Company is looking into additional product segments
which may add into this composite product portfolio, apart from making LPG
Cylinders. The Company’s plans for taking up additional products in this
product group may crystalise in the current year.
The Company continues to remain focused to manufacture plastics
products. The product portfolio is selected in such a manner that neither it
has to compete against imported plastics products nor it can be affected by the
products made by the un-organized sector in the country in an adverse manner.
DISTRIBUTION NETWORK
The Company considers its
distributors as a valuable asset. They are spread throughout the country. With
the strong retail net work serviced by the distributors, it enables the Company
to distribute its products in a cost effective manner to its customers. The
Company’s products command respect in the segments they operate due to its
superior quality, range and service, and continuous introduction of newer
products in that product group.
GROWTH DRIVERS
The Company’s focus remains to supply quality functional plastics
products along with innovation in each product segment where the Company is operating.
The growth impetus of each product is fully taken care of by the Company to
invest adequate sums of monies year after year. During the financial year
2012-13, the Company intends to commit fresh investment of around Rs.2000.000
millions to augment the products produced at existing units and to initiate
action to support green field projects – i.e. Two units at Halol, Gujrat and
one unit at Hosur in Tamil Nadu along with large investments at its existing
site at Malanpur in M.P.
The Company may be investing monies out of this investment plan to add
new products in composite segment in the current year. The Company is also
investing large sums of money for automation of its production process at
different plants to improve the production efficiency.
The Company is seeing increasing potential to participate in export
markets. The company is taking steps to boost the export of plastics pipe
system, Cross Laminated film products and Performance Packaging film, during
the current year. Company may add other products also in this year to boost
export quantum growth in the current year.
OPERATIONAL PERFORMANCE
PLASTICS PIPING SYSTEMS
The growth of PVC Pipes and Fittings business is becoming more dependent
on availability of adequate quantities of raw material.
There has been no addition to the capacity of local PVC resin producers.
It clearly indicates that growth in this business may depend largely on the
Imports. The quantum of Imports may soon reach the level of local PVC resin
production. Local production is currently around 1.2 million tons annually.
The Company is managing imports of PVC resin at affordable prices. The
Company’s growth has been around 17% in volume terms.
There was a lull in the infrastructure sector. The farming community was
quite active because of adequate water availability, good yield and support
from Government side enhancing minimum support prices for various agricultural
products. The demand from Housing segments was also encouraging.
The Company is encouraged by demand pull from Housing and Agricultural
sector. The Company has, therefore, taken a decision to expand the capacity for
both PVC Pipes and Fittings and CPVC Pipe System in the current year. The
Company will have fresh installed capacity of 50,000 MT p.a. available from its
new location of Malanpur in Madhya Pradesh in two phases. The new capacity of
first phase will become operational from October’2012 in part and
full capacity of first phase will be in place by March’2013. This capacity enhancement will enable the Company to meet the
growing demand of various sectors. Moreover the Malanpur location will enable
the Company to put more focus on the unrepresented areas of MP, Rajasthan and
other North Indian states in a cost efficient manner.
The Knowledge Centre activities at Gadegaon were largely appreciated by
all the visitors from various architects, consultants, farmers and plumbing
fraternity. The Company had more than 5000 visitors at Knowledge Centre during
the year. The Company expects more number of visitors during the coming years.
The Company has entered into the Memorandum of Understanding with IAPMO
(International Association of Plumbing and Mechanical Officials). Through IAPMO
the Company’s people will have more knowledge and exposure to “Uniform Plumbing
Codes” adopted all over the world. Similarly, they will gain knowledge about
recent developments in various plumbing sectors including new products
installation techniques and training. This knowledge will be subsequently
utilized for training all the plumbers and visitors coming to Knowledge Centre.
Through training at Knowledge Centre, the Company would like to give a message
– “Better Plumbing for Better Life”.
Most of the Company’s channel partners, dealers and sub-dealers have
also visited Knowledge Centre. They all acknowledged that this has provided
them enough knowledge and education about Company’s various products,
applications and they are benefited in increasing their volume of business in Plastic
Piping System.
The Company is also benefited
indirectly by attracting potential International from building material segment
to take the distributorship of Company’s Plastic Piping Division.
The Government of India has put a
renewed focus on Sanitation Sector across all the Urban and Rural areas. The
Company expects that its products may move well in the Sanitation Sectors in
coming years.
The Inspection Chambers and
Eco-Drain Pipes have gained acceptance in the market. As a result the business
of NU-Drain System may increase multifold in near future.
Manhole with 1.2 mtr dia meter is
getting ready. The Company may launch this product immediately after the
monsoon is over. This Manhole may create increased demand for Pipes and
Fittings in various applications like storm water projects and sewage
transportation projects. Once it is established and accepted by Government and
Semi Government bodies including Municipal Corporation, this business may see
good growth potential. The Company expects to obtain all approvals and
technical clearances during the following months for this system.
During the year, the Company sold
137.60 million meters of Pipes and sold 168.37 million pcs of Fittings
registering a growth of 22.82%.
The Company’s product portfolio
increased to 5577 numbers against earlier 5311 numbers, thus adding 266 new
products during the year.
The Company’s Value Added Product
sale reached 24.24% to total sale against 21.87% in this system of the previous
year. Company’s focus continues to remain to increase the percentage of Value
Added Products in this system.
To meet the growing demand of
Hi-Tech SWR System for use in Hi-rise Apartments, the Company has planned to
introduce the new series of Hi-Tech SWR System around November/December’2012.
On demand of its channel partners,
the Company has planned to extend the range of its plumbing products to include
varieties of Bath Room Fittings. These Fittings will be made from engineering
plastics. They will supplement the CP Fittings in terms of aesthetics,
performance and user friendly product design.
The Company expects to launch
these Fittings by January’ 2013. This will enable Company’s channel partners to
improve on their product portfolio and business volume.
Due to slowing down of economy in U K and Australian market, the
Company’s exports in this segment could not reach the anticipated growth
target. It registered a meager growth of 3% during the year by value.
The Kanpur Unit operations are running satisfactorily. The Company’s
plan to expand it’s capacity to 20000 T. P.A. may be in place by January /March
2013. The Company had plans to expand the capacity in a big way at that site.
The same has been put on hold due to erratic power supply.
The Company’s CPVC product business grew nearly 60% on year on year
basis in value terms. The Company expects to achieve the similar growth during
the current year. The Company has taken adequate steps to expand the capacity
of CPVC production to meet the growing demand of CPVC System. The Company is
able to source adequate quantity of raw material required to meet the expected
growth in demand.
The PPRC Plastics System has grown only 8% by value. The Company has
plans to enter new areas of application to improve the sale of PPRC products in
International markets. The Company anticipates a decent growth in this segment
during coming years.
The Company has an effective annual production capacity based on product
mix of around 5000 T of HDPE Pipes. The Company sold last year 2679 T of HDPE
Pipes. Based on quality feedback from its various customers the Company expects
a better utilization of the capacity from Trade and Industrial projects in the
current year.
CONSUMER PRODUCTS
FURNITURE
The Company has its furniture manufacturing activity at 5 locations viz:
Pondicherry (UT),
Turnover of Furniture Business has gone up from Rs.2790.000 millions to Rs.2920.000 millions, thereby registering a growth of 5% in
value terms. The Company’s strategy of participating selectively in commodity
furniture products pulled down the overall business volume by 10% as some of
the furniture products were contributing negative margin.
The company has re-casted its investment plan to increase the range of
value added products in the current year itself. Thus, it will broaden the
range of value added furniture products. This will further build the superior
brand image of Company’s products for its
aesthetics and durability.
The launch of Designer Chair, DIVA is well received
by the market for its uniqueness of having inbuilt metal legs for stability, gas
molded plastic seat for strength and transparent back for aesthetic beauty. The
launches of Gas Moulded Chairs for the first time in the country have been very
well appreciated by the channel partners and consumers. There is still no
chair, as of now in
Company now plans to introduce few
more models in painted upholstered Plastics Chair to enhance the volume further
of this range. A new Paint shop is being planned at
The Company had good success with
its strategic initiative that has paved the way for its future business. The
Company’s milestone of 1/3rd business with Premium Products sales
was further excelled by more than 5% in the previous year. It has reached to a
level of 38% of overall sales. The company intends to further increase share of
Premium Products sales by another 8% plus in value during next twelve months
which will help the business to grow profitably.
There has been a delay in getting
the plot registered in the Company’s name at Andhra Pradesh even after
allotment and making full payment to APIIC at Ongole Growth centre. This was
due to their internal technical reasons with court. The Company has, therefore,
abandoned the Andhra Project for Furniture manufacturing as of now.
The Company has 253 Exclusive
Franchise Show Rooms on All-India basis displaying entire range of Supreme
Furniture to the customer in a nice ambience.
The company’s furniture products
enjoy good acceptance in the market for its quality, design, color and range.
“Supreme” brand is perceived as a premium brand in the country in plastics
Furniture and enjoys a reputation of bringing many products and concepts first
time in the country.
MATS
As reported last year, the mat
division was closed down by November 2011. Most of the equipments have been
sold. Only machines which were to be scrapped are left out. They may be sold by
August 2012. There have been a few enquiries for the Company’s land and
building also which Company shall evaluate and decide appropriately in due
course of time.
INDUSTRIAL PRODUCTS
INDUSTRIAL COMPONENTS
On the backdrop of encouraging
business trend observed during second half of FY 10 -11 and highest ever Capex
executed during the same year, the Division planned ambitious growth of 27% for
2011-12. However, due to general slowdown in the demand of high ticket products
and delays in start up of customers’ new projects, division achieved overall
11% growth in its revenue.
There has been degrowth of 7% in
value in consumer durable sector. This was mainly due to a major reduction in
off take from one their important customer. However, Company could grow healthy
26% in value in Auto sector.
Layout improvements in old units
at Noida and Talegaon have significantly improved working environment which has
started yielding results in terms of Quality, Safety and productivity, The
development of interior parts including Cockpit Assembly, undertaken at
Talegaon plant, during last year for one of the prestigious commercial vehicle
project of Tata Motors is nearing completion and supplies are expected to start
during later part of this year after various ongoing vehicle testing stages by
the customer. Development of parts for recently launched Two Wheeler Vespa’ by
Piaggio, completed and supplies started. Both these projects are expected to
improve revenue of Talegaon plant significantly in future.
A focused drive undertaken at
Noida plant to widen customer and product portfolio to counter vulnerability of
dependence on limited customer/product base, started yielding results. The
plant has bagged order from two major Japanese companies in Consumer Durable
Sector and few other customers in the same and Auto sector. Company expects
good growth during the year because of these initiatives.
Khushkhera plant capacity
augmentation resulted in to doubling of plant capacity. During the year, the
plant had 46% revenue growth. Company expects robust growth during the current
year also. Several actions have been initiated to consolidate the operations
for future growth sustenance at that Unit.
New facility at Chennai which was
operational during FY 10-11, is getting stabilized in terms of production and
operations. Although, initially plant was catering only to Consumer Durable
sector for one of the company’s major customers, Company has developed now few
customers in Auto Sector, to smoothen demand volatility.
Company has been selected for
plastic parts required for Washing Machines being launched in
All these initiatives should
generate significant growth at Chennai plant during this year and in future
years. Due to severe power shortage in Tamilnadu during significant period of
the year, there was adverse effect on smooth running of operations. However,
Company ensured trouble free supplies to customers, even running the plant by
using expensive captive power. Although the power situation has improved to
some extent, it is still far from satisfactory.
At Puducherry plant, all plastic
parts for the next model of Radiance, i.e. „All plastic body Washing Machine’,
were fully established as per the requirement of productivity, Quality and
Delivery norms specified by the customer. Company expects that this should
result in to continuous and sustained growth at Puducherry plant. This plant,
which also caters to company’s other Divisions, i.e. Furniture and Material
Handling, bagged „TPM Excellence Award‟ from Japan Institute of Plant Maintenance (JIPM)
The new machines and equipments
which are being added are with energy efficient technologies and will ensure
better Quality, Productivity, Safety and lower cost. To negate the impact of
lowering margins due to various cost increases and to remain competitive,
Company makes continuous efforts to remain a lean manufacturer. Company is also
in discussion with its various customers for price corrections for the old
continuing businesses.
Company is continuously putting
efforts to establish and improve Energy Management System at all the locations.
This initiative of the company, apart from cost reduction, will support
Environment and Green initiatives.
As a part of up-gradation and
implementation of Quality Management Systems, all plants are re-certified for
ISO/TS 16949,
Puducherry plant was certified by
latest Integrated Management System (IMS) during the year and currently Chennai
plant is working on the same. There has been continuous thrust on Safety,
Health, Hygiene and Environment.
Overall rating of the company by
all its customers is good. The Company is considered a highly dependable and
valuable supplier. Company receives various Awards and Recognitions from time
to time from its customers for its support in Quality, Cost, Delivery and new
product development etc.
The journey towards excellence is
being cultivated as a culture and will be continuous. Efforts are being
accelerated to increase customer and product base, bring in new technology,
automation, effective cost management to ensure sustained growth with profits.
MATERIAL HANDLING PRODUCTS
The Company achieved a value
growth of approx. 17% and a volume growth of approximate 10% during last year.
The division is recording continuous growth in the business. The Company
continues to service its client with least lead-time at economical cost by
manufacturing at six own manufacturing sites spread across the country.
Anticipating the customer’s future
needs, the Company has now moved to giving heavy duty Industrial crates by
developing several models with superior product design to cater to quality
conscious customers in automobile, appliance and logistics industry. Supplies
of these products have started. The Company’s products for a heavy-duty
requirement in Fishery Industry have also been well accepted. The Company
expects to have good growth in this segment.
The Company’s business to soft
drink customers fared well. Business prospects for this year are also
promising, as per indication from the customers.
Company has fabrication facilities
at locations other then manufacturing, as well, to develop tailor made crates
to meet specific requirement of applications at customers end. This is helping
in a big way to replace conventional material usage while handling products at
customers end. These are value added products for the Company. The company has
upgraded its fabrication facilities with automation and usage of newer
materials.
The Roto Moulding facility of
Company at Gadegaon is functioning well. It has also been strengthened with PU facility
to meet specific heavy-duty requirement with supply of PU filled Roto Moulded
items. The Company has a range of Roto Moulded Pallets.
The Company expects a good growth
for its Pallet business during next year. Company also plans to launch very heavy
duty Plastic Pallets without Steel reinforcement in the Indian market for the
first time. The Company continues to be a leader in the Injection Moulded
Pallet business in
PACKAGING PRODUCTS
PACKAGING FILMS
The Performance films business had
a tough year. Growth was lower at 6.8% v/s expected growth of 20%.
The government’s policy to buy
five layer films for distribution of oil continued to be sluggish against an
expected revival. Also, all competitors expanded capacity. At the same time,
several new players entered this field, rendering the business to be extremely
competitive, capacity far outstripping demand. However, with an overall growth
in business this year, business for the Company may be better in this year.
Exports were 672 tons against 571
tons last year. As per the projections received from the Company’s existing
customers, the Company expects exports to grow to 800 tons this year. The
Company is giving special drive to boost export of this product. The Company
expects the business to grow around 15% by volume this year.
PROTECTIVE PACKAGING PRODUCTS
The year was challenging for the
division, to retain the growth rate. The growth rate for the first three
Quarters of the year was 16% in Value and 9% Volume against same period last
year. This has improved, in the last Quarter with a Value growth of 23% and
Volume growth of 19%. The overall year on year growth was 17% in Value and 13%
in Volume against last year. The division is expecting 15% volume growth of the
coming year.
Urse plant has been fully
stabilized and some of the products lines are running close to full capacity.
The second unit at Hosur may start
by Sept 2012. In the first phase the plant will be started with cross link
block foam and directly extruded cross link PE foam. The existing production
capacity of cross link block foam will be enhanced from 1640 MTPA to 2400 MTPA
during the year. The division is planning to enter into manufacturing of
Gaskets, especially for the Automobile sector. This new conversion facility
will start in Hosur unit – II, in the second half of the year.
PACKAGING
APPLICATION
Non-Cross Linked Foam capacity was
enhanced from 9400 MTPA to 10300 MTPA during last year and is expected to
increase 11900 MTPA during the current year. While competition in this product
category has increased, the division expects to continue growing in the
segment. The product enjoys a good brand image in the market.
New products and new applications
are being developed in the cross linked foam product category. This will ensure
higher utilization of all cross linked product manufacturing facilities.
CONSTRUCTION SECTOR
Growth achieved 33% in value and
39% in volume against last year. Though the construction industry is still struggling,
the Company expects to have reasonable growth in the coming year as well. A
large number of architects are now approving the Company’s products for various
upcoming Projects. This is a result of constant efforts by the marketing team.
The division had problems in
disposing off the cross-linked PE foam wastages. Several initiatives have been
taken to reduce the selling of these wastages. The division is that a new
application has been developed using one type of product wastage which has
found good acceptance in the market.
INSULATION APPLICATION
The growth recorded during last
year was 39% in value and 35% in volume. Considering the acceptability of
Company’s extruded cross-linked PE foam in the insulation sector by several
consultants and growing demand, a new manufacturing facility is being set up at
Hosur (Unit – II). The existing capacity of 1100 MTPA will be enhanced to 1650
MTPA during the year. This will be the 3rd Plant for this product
category and will reduce the cost and logistic challenges that are being faced
to service the South Indian market from the existing plants located at Malanpur
and Urse. “INSUreflector”, the other range of insulation product, is also well
accepted by the market and consultants. The division expects to launch several
new variants of INSUreflector in the current year. This product has established
its advantage in the industrial roofing shed under-deck insulation against
other products being offered by many other companies.
The NBR PVC hose launched last
year has not successfully picked up as the prices for imported products is
quite low. However, efforts are being taken by the division to reduce density
of its products, thereby making it cost competitive. Besides efforts are on to
introduce class “O” BS 476, part 6 and 7 category products. This is specified
for many projects. Business for the same is expected to start from the second
quarter of the current financial year. Both these initiatives should set this
business in the right track.
TECHNOLOGICAL DEVELOPMENT
To retain the business growth,
especially for the standard product, extensive Research and Development work
has been carried out during the year to reduce the compounding cost and to
improve the productivity and quality.
For the first time in
CROSS LAMINATED FILM
Business for Cross Laminated Film
and Products grew by 13% in volume terms and by 24% in value terms. The company
sold 16999 tons of Products against 15050 tons during the previous year.
Exports grew by 30% to 1836 tons from 1412 tons. There was strong demand for
company’s products in domestic and international markets during the year which
outpaced the product availability.
The company foresees a strong
demand for its products in local market during the current year as well.
Despite anaemic growth of world economy the company has done well on the export
front. The company is eyeing to scale a new peak of 3300 tons in exports during
the current year by entering new markets of Africa,
The spurt in demand both in local
as well as international markets has prompted company to advance its expansion plans.
The company has already purchased land at Halol in
Besides, the capacity at the
existing two units which is of 18000 tons will be enhanced to 19000 tons by
debottlenecking. The new fabrication site at Puducherry has been put into
operation which together with the induction of new contractors at new unit in
Halol will enhance the fabrication capacity commensurate with the expanded film
production capacity. However the impetus will be on automation of some of the
activities involved in fabrication to overcome the constraint of labour availability.
The company’s collaborator has already taken steps in these directions.
The company has entered into an
agreement with it’s collaborator whereby the exclusive rights to manufacture
and sell XF products in entire South Asia and whole of Africa have been
extended to include entire East Asia(except Mongolia).
The exclusive rights to
manufacture and sell products (developed from New Technologies which includes
Cross Line Bonded Film and Cross Plastic Film) in
The Company sold 244 tons of Cross
Line Bonded Film products, a next generation XF film during the year. The
Company has installed balancing equipments for manufacturing this film on one
other machine. With the increase in production the company expects to sell
around 1000 tons of this film product in the current year.
Two of the licensees of the
company’s collaborator, one in
CONSTRUCTION BUSINESS
Due to awareness of climate change
and increasing focus on other pressing environmental issues, the concept of
In this backdrop, the Company is
delighted to inform that the
The prestigious magazine
“Construction Week” in its edition of June, 2012, has handpicked 10 of India’s
very best Commercial Green Buildings, out of Top 200 Green Buildings spread
across the cities of India to illustrate the Country’s green drive in which
“Supreme Chambers” ranked 2nd to get such esteemed status. The
It was the endeavor of the Company
to make eco-friendly, green featured corporate park that would promote the
Company’s image of manufacturing green products and which projects it as a
Brand Ambassador.
The Company has incurred
Rs.1405.700 millions towards Cost of Construction as on 30th June,
2012, which together with the estimated Outstanding Expenses/ Liabilities may
reach to Rs.1550.000 millions. The Company has realized Rs.1270.700 millions
net from the sale of six of its Office Blocks comprising about 81,682 sq. ft.,
out of Total Saleable Area of around 2.79 Lacs sq. ft. which includes realization
of Rs.691.600 millions from sale of
41,678 sq.ft during the year.
Real Estate Market is reeling under the burden of high interest rate,
inflation and slower economic growth domestically and weak economy globally and
therefore the demand for real estate property particularly commercial premises
has remained sluggish in all prime business centers in
Under the circumstances, the Company has adopted wait and watch policy
and is waiting for the appropriate time for improvement in the sentiments in
the real estate sector which shall lead to the growth in demand for commercial
property market. The Company is hopeful that with slowing down of new
construction of commercial premises in Greater Mumbai, the Company may have
good demand for its ready to use premises, with occupation certificate in
place, in near future.
NEW INITIATIVES:
The company has chosen to foray
into Composites having excellent growth potential. Consumption of Fiber Glass
Products in
With excellent properties of Fibre
Glass and varied application opportunities available, It is expected that there
will be healthy growth in composite products business.
LPG CYLINDER:
It is a known fact that steel
cylinders are in use at most of the household for LPG. Presently over 18 Crores
steel cylinders re in use in their country and three oil marketing companies
buy over 1 core cylinders per year.
Due to availability of huge
market, the Company has decided to venture into composite LPG cylinder for
household use. Although, these cylinders are expensive compared to steel
cylinders but they are safe, as in case of accident. They do not explode like
steel cylinders. This will save precious human lives.
The cylinder being translucent,
the level of gas can also be seen which will be added advantage to the
consumers. Empty cylinders will weigh half of the weight of present steel
cylinders so they are easy to carry and also aesthetically much better looking.
In order to supply very safe
cylinders, Company has ordered a very modern plant with complete automation so that
quality of cylinders is fully assured.
Company has committed to invest
Rs.700.000 millions for production capacity of 5 lac cylinders per annum.
Equipments are expected to reach the plant site at Halol (
Company is happy to inform that
cylinders made on their equipment has passed all the requisite tests based on
EN and ISO Standards. Company expects to get the formal acceptance certificate
from testing authorities by September’ 2012.
COMPOSITE PIPES:
NBL Corporation of
Company has taken effective steps
to produce these pipes and ordered for first small size plant to produce 15,000
pipes per annum. Presently the plant is under manufacturing at
OVERALL GROWTH PROSPECTS:
The Indian economy with its
demographic advantage, entrepreneurial drive and innovative attitude is
destined to cross USD 5 Trillion GDP per annum from the current level of 1.5
Trillion GDP per annum even before the year 2020. The company is seeing
adequate opportunities to go on growing in its business. The company’s focus is
thus to give further impetus to its growth plan by giving additional drive to
grow.
In the current year 2012-13,
Company sees volume growth of Plastics in the country between 10-12%. However,
the Company is aiming to grow it’s business by 25% in value term in the current
year. Company expects to grow by around 16% growth in volume. The increased
percentage of turnover growth compared to volume will be due to increased share
of value added products and normal inflation prevalent in the country’s
economy.
FINANCE:
The Total Borrowing levels as on
30.06.2012 was Rs.3511.000 millions as compared to Rs.5142.800 millions as on
30.06.2011.This is despite the increase in the crude oil prices and consequent
increase in the polymer prices coupled with abrupt depreciation of Indian Rupee
vis a vis Dollar during the year which necessitated higher Working Capital
requirements. The Company has repaid Term Loan installments and fixed deposits
aggregating Rs.724.100 millions including pre-payment of outstanding amount of
Term Loan Rs.125.000 millions bearing higher rate of interest. The Company has
not taken any fresh Secured Term Loan during the year.
The Interest and Financial Cost in absolute terms have gone up to
Rs.548.000 millions during financial
year 2011-12 from Rs.425.000 millions during financial
year 2010-11, principally, due to (i) increase in the cost of Short term/ Long
term borrowings in view of prevalence of higher interest rate regime (ii)
increase in the hedging cost on Foreign Currency Loans and (iii) deployment of
larger funds for working capital requirements during most part of the year. The
outstanding Interest bearing liabilities as on 30-06-2012 bears average
Interest rate of 9.50% p.a. I 9.72% p.a. as on 30-06-2011. It is expected that
interest rates may soften during the year.
The Company has judiciously managed its Working Capital requirements by
availing Buyer’s Credit for importing Raw Materials/ Capital Goods, by way of
fully hedged foreign exchange exposure and raising short term resources through
placement of Commercial Papers, at competitive rates. Company’s focus shall
remain to closely monitor and reduce its borrowing level and also to bring down
total interest cost below 1% of the total turnover in the coming year/s.
During the year company had committed investment of around Rs.2800.000 millions out of which around Rs.734.000 millions only have been put to ground during the
year mainly to augment certain capacities, new moulds and balancing equipments
at its several existing sites. Work at Halol for Cross laminated Film products,
at Hosur for Protective Packaging Products and at Halol for Composite Cylinders
project is in full swing and shall be in operation during the current year.
Company has made total outflow towards capital investment during the year to
the tune of Rs.1690.000 millions including
outstanding Capex payments of previous year. The same has been funded through
the internal accruals of the Company.
During the year 2012-13, the Company envisages total Capex including
commitments for 2013-14 of about Rs.4000.000 millions including
existing commitments, mainly on the following segments.
To set up new Manufacturing Unit to produce Cross Laminated Film
Products at Halol (Gujarat) To set up production of Plastic Piping system
facility at erstwhile closed down Unit of PVC Film Business at Malanpur (M.P.)
and utilize existing Land, Building and other infrastructure already in place.
To set up new manufacturing facility of Protective packaging Products at
Hosur (Tamilnadu)
To put up the unit to manufacture Composite LPG Cylinders at Halol (
To acquire requisite Land in West Bengal to set up new unit for Plastic
Piping System, Protective Packaging Products and Industrial components in
Eastern India.
To create additional capacities and
The Company envisages a total capital investment outlay in excess of
about Rs.11000.000 millions over a period of
five years from 2011-12 to 2015-16 in addition to Capex for new products in
Composites. In view of Company’s potential to generate healthy cash flows from
its operations together with better management of Working Capital, the Company
is reasonably confident to fund its future expansions from Internal Accruals
and Suppliers’ Credit. Moreover the sale proceeds from “Supreme
Chambers” will provide additional funds to meet its future Capex requirements.
CRISIL has assigned the Rating on the Bank facilities to “AA-/ Stable”
and reaffirmed Short Term Debt programme Rating as A1+ , 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.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST MARCH, 2013 (STANDALONE
RESULTS)
(Rs.
in millions)
|
|
|
3rd Qtr. Ended |
2nd Qtr. Ended |
9 months ended |
|
|
Particulars |
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
|
(Reviewed) |
(Reviewed) |
(Reviewed) |
|
1 |
Net Sales |
|
|
|
|
a |
Plastic Business |
9037.327 |
8058.138 |
23200.810 |
|
b |
Construction
Business |
0.000 |
0.000 |
0.000 |
|
|
|
9037.327 |
8058.138 |
23200.810 |
|
2 |
Other Operating
Income |
139.275 |
90.061 |
300.306 |
|
|
Total Income |
9176.602 |
8148.199 |
23501.116 |
|
3 |
Goods Consumption |
|
|
|
|
a |
Raw Material Consumed |
5692.513 |
4791.969 |
15353.454 |
|
b |
Cost of goods
traded |
330.660 |
196.693 |
693.539 |
|
c |
Cost of Premises
Sold |
0.000 |
0.000 |
0.000 |
|
d |
(Increase)/
Decrease in stock in trade |
(18.624) |
387.579 |
(742.885) |
|
|
|
6004.549 |
5376.241 |
15304.108 |
|
4 |
Employees' Cost
Benefit Expenses |
307.200 |
285.727 |
871.923 |
|
5 |
Power & Fuel
Expenses |
363.418 |
338.035 |
1034.073 |
|
6 |
Other Expenditure |
1158.539 |
956.187 |
2906.942 |
|
7 |
Total Expenditure
before Finance (3+4+5+6) |
7833.706 |
6956.190 |
20117.046 |
|
8 |
Operating Profit
(1+2-7) |
1342.896 |
1192.009 |
3384.070 |
|
9 |
Other Income |
0.652 |
40.511 |
41.703 |
|
10 |
Profit before
Interest, Depreciation & Tax (8+9) |
1343.548 |
1232.520 |
3425.773 |
|
11 |
Finance Costs |
137.457 |
138.272 |
390.298 |
|
12 |
Profit before
Depreciation & Tax (10-11) |
1206.091 |
1094.248 |
3035.475 |
|
13 |
Depreciation,
Amortisation & Impairment |
197.039 |
190.004 |
572.810 |
|
14 |
Profit Before Tax
(12-13) |
1009.052 |
904.244 |
2462.665 |
|
15 |
Provision for
Taxation |
|
|
|
|
|
Corporate Tax |
330.000 |
282.500 |
790.000 |
|
|
Deferred Tax |
0.000 |
0.000 |
0.000 |
|
16 |
Net Profit after
Tax (14-15) |
679.052 |
621.744 |
1672.665 |
|
17 |
Share of Profit/
(Loss) in Associate |
-- |
-- |
-- |
|
18 |
Consolidated Net
Profit after Tax (16+17) |
-- |
-- |
-- |
|
19 |
Paid Up Equity
Share Capital (Face Value
Rs.2/-) |
254.054 |
254.054 |
254.054 |
|
20 |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
21 |
Earning per
Share-Basic & Diluted (Rs.) |
5.35 |
4.89 |
13.17 |
|
22 |
Cash earning per
Share-Basic & Diluted (Rs.) |
6.90 |
6.39 |
17.68 |
PART II
A. Particulars of
Shareholding
|
1 |
Public
Shareholding |
|
|
|
|
|
- No. of
Shares |
63989525 |
63999525 |
63989525 |
|
|
-% of
Shareholding |
50.37% |
50.38% |
50.37% |
|
2 |
Promoters
and Promoter group Shareholding |
|
|
|
|
a |
Pledged
/ Encumbered |
|
|
|
|
|
-Number
of Shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the total Share capital of the Company) |
Nil |
Nil |
Nil |
|
b |
Non-encumbered |
|
|
|
|
|
-
Number of Shares |
63037345 |
63027345 |
63037345 |
|
|
-
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
100.00% |
100.00% |
|
|
-
Percentage of Shares (as a % of the total Share capital of the Company) |
49.63% |
49.62% |
49.63% |
|
B. INVESTORS
COMPLAINTS |
|
|
Pending
at the beginning of the quarter |
Nil |
|
Received
during the quarter |
Nil |
|
Disposed
off during the quarter |
Nil |
|
Remaining
unsolved at the end of the quarter |
Nil |
CONTINGENT LIABILITIES:
|
Particulars |
30.06.2012 (Rs.
in millions) |
|
Bills/Cheques
discounted |
140.791 |
|
Bank Guarantees
issued by Bankers |
118.260 |
|
Claim against the
company including Show-cause-cum-demand Notices in relation to Central Excise
and Service Tax not acknowledged as Debts |
100.629 |
|
Disputed Income
Tax Demands |
192.513 |
|
Disputed Sales
Tax / Entry Tax Demands |
58.151 |
|
Other claims against
the company not acknowledged as debts |
15.290 |
|
Future
obligation of exports towards imported capital goods at concessional rate of
duty under EPCG Scheme. |
677.941 |
Fixed assets:
Tangible Assets
v
v
v Buildings
v Plant, Machinery and Electrical Installations
v Moulds and Dies
v Furniture, Fixture and Office Equipments
v Vehicles (Owned and Under Finance Lease)
v Sundry Equipments
Intangible Assets
v Computer Software
WEBSITE DETAILS:
PROFILE:
Founded in 1942, Supreme is an acknowledged leader of
Handling volumes of over 200,000 tonnes of polymers annually, effectively makes
them the country’s largest plastics processors.
They also offer the widest and most comprehensive range of plastic products in
Their 19 advanced plants are powered by technology from world leaders,
and complement their extensive facilities for R and D and new product
development.
In fact, Supreme is credited with pioneering several products in India like
Cross- Laminated Films, HMHD Films, Multilayer Films and SWR Piping Systems to
name a few.
2014-15 will see The Supreme Group turnover touch a projected Rs. 50,000
million (USD 1100 million).
THEIR GROUP:
By the year 2014 – 15, The Suprme group will cross the Rs.100,000
million mark. Strategic technological alliances with world leaders reflect
their commitment to producing with unmatched uncompromising quality.
Their Products have been received very well even nternationally from the most
demanding customers in
AWARDS:
Export Award to fittings
for pipes and hoses (of Plastics) from The Plastic Export Promotion Council,
Mumbai for the year 2006 – 2007
Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2007 – 2008
Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2008 – 2009
Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2009 – 2010
Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2010 – 2011
Export Award to Plastic Pipes – Conduit Fittings and Accessories from The Plastic Export Promotion Council, Mumbai for the year 2002 – 2003
Export Award for Tarapulin from The Plastic Export Promotion Council, Mumbai for the year 2009 - 2010
Export Award to PVC Rigid Sheet / Films from The Plastic Export Promotion Council, Mumbai for the year 2001 – 2002
Export Award for Tarapulin from The Plastic Export Promotion Council, Mumbai for the year 2010 - 2011
Khushkhera unit bagged "The ACMA Award" for "Excellence in Quality and Productivity" in Silver category
Industrial Products
Division signed a Technical Collaboration Agreement with Kumi Kasai Company
Limited of
Khushkhera plant participated in the competition jointly conducted by CII and Maruti for Kaizen and got 1st Prize.
Talegaon plant has been honored with a Trophy towards 'Excellence in Quality' for the year 2010-11
Kheshkhera unit won Overall Manufacturing Excellence Award from Maruti Suzuki I Limited. During 2010-11
Khushkhera unit won Quality System Rating Award for 2010-11 From Maruti Suzuki I Limited.
Khushkhera unit won first prize in 7th Quality Circle Competition held by ACMA. Also won Gold Award from Quality Circle Forum of India.
Best Kaizen Award for Sept 2010 From Whirlpool Cluster for Pondy Unit.
Obtained recognition for
‘Manufacturing Excellence’ from Maruti Suzuki I. Limited. This award was
received by their Executive Director Shri SJ Taparia at MSIL conference held in
Khushkhera plant Obtained Vendor Performance Award for 2009-10, for Manufacturing Excellence from Maruti Suzuki I. Limited.
Talegaon Unit won Piaggio Quality Merit Award - Nov.10
Noida Plant became the
first Plant in Plastic Category and IIIrd Plant in the country to get certified
for EN 16001-2009 (Energy Management System) It got this honor on 7th
Jan 2010 after clearing certification audit by BSI.
Energy Conservation Award and certificate from Govt. of India in Plastic Category won by Noida plant
Added TCL Business which is
one more NANO theme of Tata Group – Tata Chemical Limited. Talegaon Unit and
got Special Mention Award
Khushkhera plant got certification for BSEn 16001-2009 – Energy Management system. It became Second Plant in Plastic Category and IV Plant in the country to have this honor.
Khushkhera plant Won Award for incoming Quality Improvement from Maruti During Vendor Conference for 2008-09
Quality Circle Competition
held at
Khushkhera unit won Bronze award for Excellence in Quality and Productivity in Plastic Category for 2009-20 from ACMA
Pondy Unit won Best Delivery Performance Award 2008, from Whirlpool of India Limited.
Pondy Unit won Best Delivery Performance Award 2008, from Whirlpool of India Limited.
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 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.53.95 |
|
|
1 |
Rs.84.03 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
SMN |
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 |
NO |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.