Supreme Engineering Limited is an Indian specialized metallurgical manufacturer focused on high-technical applications for strategic sectors. The company operates through two distinct divisions in Maharashtra, producing critical alloys and import substitutes that serve as the backbone for high-entry-barrier industries. --- ### **I. Operational Infrastructure & Specialized Divisions** The company’s operations are concentrated in **India**, functioning through two specialized manufacturing units with distinct technical capabilities: | Division | Location | Established | Core Activities & Capabilities | | :--- | :--- | :--- | :--- | | **Special Steels Division** | **Khopoli** | **2008** | Focuses on critical alloys and import substitutes. Facilities include Vacuum Induction Melting (**VIM**), Electro-slag refining (**ESR**), Radial Forging, and a Bright Bar plant. | | **Wire Division** | **Navi Mumbai (Rabale)** | **1987** | Focuses on wires, profiles, and bright bars for general engineering. Facilities include wire drawing, coil-to-coil peeling, grinding, and a profile shop. | --- ### **II. Product Portfolio & Strategic Market Positioning** Supreme Engineering targets sectors characterized by high technical complexity and stringent certification requirements. * **Core Product Categories:** * **Super Alloys:** Nickel-based, Iron-based, Cobalt-based, and **PH** (Precipitation Hardening) alloys. * **Stainless Steels:** Austenitic, Martensitic, Ferritic, and **PH** grades. * **Alloy Steels:** Low alloy, Ultra-high strength, **ESR** re-melted, and Ball-bearing steel. * **Tool Steels:** High-speed steels, Cold working, and Hot working steels. * **Strategic Sector Focus:** The company serves **Defence, Space, Atomic Energy, Aerospace, Power, and Oil & Gas**. Key applications include components for **Aircraft, Battle Tanks, Rockets, Missiles, and Nuclear Reactors**. * **Growth Drivers:** Business from strategic sectors has grown by **41%** over the last two years. The company is leveraging the **"Make in India"** initiative and **Import Substitution** trends. * **Certifications:** Holds **AS9100 D** certification and is actively pursuing **Civil Aviation** approvals to benefit from government offset policies. --- ### **III. Financial Performance & Capital Restructuring** The company is currently undergoing a transition to stabilize its balance sheet following a period of significant volatility and net losses. **Three-Year Financial Summary:** | Metric (INR in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **1,742.30** | **2,543.41** | **1,884.87** | | **Loss Before Tax** | **(949.69)** | **(824.31)** | **(10,198.85)** | | **Net Profit / (Loss)** | **(1,180.99)** | **(1,101.52)** | **9,833.73*** | | **Retained Earnings** | **Not Disclosed** | **(11,243)** | **(10,158)** | *\*Note: FY 2022-23 profit was driven by tax adjustments/discontinued operations despite operational losses.* **Capital Infusion Strategy:** To address liquidity constraints, the company has initiated a major fund-raising exercise: * **Equity Issuance:** **19,02,95,000** shares at **₹2.48** (Aggregate: **₹47.19 Crore**) to non-promoters. * **Convertible Warrants:** **4,00,00,000** units at **₹2.60** (Aggregate: **₹10.40 Crore**) to the Promoter Group. * **Debt-to-Equity Conversion:** Conversion of **₹8.17 Crore** in unsecured promoter loans into equity. * **Authorized Capital:** Increased from **₹25.10 Crore** to **₹51.50 Crore** to facilitate these moves. --- ### **IV. Asset Management & Liability Mitigation** Management is actively rationalizing assets to improve cash flow and reduce the interest burden. * **Asset Monetization:** As of **February 2025**, the company proposed the sale of its **Rabale, Navi Mumbai** premises (R222 and R223) via an MOU. * **Inventory Rationalization:** An exceptional item of **₹424.54 Lakhs** was recognized for inventory devaluation to **Net Realisable Value (NRV)** due to depleted product quality and market demand shifts. * **Gearing Policy:** The company targets a gearing ratio (Net Debt / Total Capital + Net Debt) between **60% and 80%**. * **Equity Position:** As of March 31, 2024, the company reported a negative **Total Other Equity** of **₹(10,207) Lakhs**. --- ### **V. Critical Risk Factors & Going Concern Status** The company faces substantial headwinds that pose a threat to its status as a **going concern**. * **Solvency & Debt:** Current liabilities exceed total assets, with a negative net worth of **-₹70.15 crore** (Sept 2024). Secured loan accounts have been classified as **Non-Performing Assets (NPA)** since **August 19, 2021**. * **Operational Impairment:** Pandemic-related delays led to the cancellation of high-value government orders. These "made-to-order" products were revalued as scrap, resulting in a stock value diminution of **₹88.84 crore**. * **Regulatory & Compliance Lapses:** * **Taxation:** Income Tax returns for **FY 2019-20/2020-21** and GST returns for the last **3-4 years** are outstanding. * **Governance:** No **Company Secretary** is currently appointed; **Internal Audits** and **Cost Audits** (since FY 2020-21) are pending. * **Statutory Dues:** Failure to deposit **TDS, PF, ESIC, and Professional Tax**. * **Material Litigations:** * **Income Tax (AY 2018-19):** **₹9.09 crore** dispute. * **GST Dept (FY 2018-19):** **₹5.71 crore** writ petition in Bombay High Court. * **Forensic Audit:** A forensic audit covering **June 2018 to September 2021** has been completed, though its full impact is still being integrated into disclosures. --- ### **VI. Corporate Structure & Governance** * **Leadership:** **Sanjay Chowdhri** (Chairman & Managing Director) and **Pranav Chowdhri** (CEO). * **Subsidiaries:** The company has **no subsidiaries, joint ventures, or associates**. * **Related Parties:** Transactions are conducted at **arm’s length**, unsecured, and interest-free. * **Listing:** Traded on the **NSE** under the symbol **SUPREMEENG**.