MIRA
INFORM REPORT
|
Report Date : |
23rd
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
MUTUAL INDUSTRIES LIMITED |
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|
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Formerly Known As : |
Mutual
Mecaplast Limited |
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Registered Office : |
86,
Peerage, M V Road, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra,
India. |
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Country : |
India |
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|
Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
28.09.1990 |
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Com. Reg. No.: |
11-58368 |
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CIN No.: [Company
Identification No.] |
U25209MH1990PTC058368 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM19469C |
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|
|
PAN No.: [Permanent
Account No.] |
AAACM3522G |
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|
Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
The
company is engaged in the Business of Plastic Moulded Industrial Components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
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|
Status : |
Good |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a now a 100% Gundai family controlled company. Directors are reported as
experienced, respectable and resourceful industrialist. Their trade relations
are fair. Financial positions is good. Payments are Usually correct and as
per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. It can
be regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered Office : |
86,
Peerage, M V Road, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra,
India. |
|
Tel. No.: |
91-22-26827595 |
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Fax No.: |
91-22-26839763 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr.
Jayantilal Manekchand Gandhi |
|
Designation : |
Chairman |
|
Address : |
G – 2,
Ground Floor, Ruby Apartment, A, Plot No. 51, 7th Road, JVPD
Scheme, Vile Parle (West), Mumbai – 400 056, India. |
|
Date of Birth/Age : |
16.10.1934 |
|
Date of Appointment : |
28.09.1990 |
|
PAN No. |
ADFPG1035R |
|
|
|
|
Name : |
Mr.
Dharmendra Kantilal Gandhi |
|
Designation : |
Managing
Director |
|
Address : |
Ekdanti,
1st Floor, 19 – A, Vallabh Nagar, CHSL, North South Road No. 4,
JVPD Scheme, Vile Parle (West), Mumbai – 400 056, India. |
|
Date of Birth/Age : |
18.05.1957 |
|
Date of Appointment : |
28.09.1990 |
|
PAN No. |
AABPG4861G |
|
|
|
|
Name : |
Mr.
Jaysinh .V. Mariwala |
|
Designation : |
Director |
|
Address : |
Auto
Hangar (I) Private Limited, Rajan House, Appasaheb, Marathe Marg, Prabhadevi,
Mumbai – 400 025. |
|
Date of Birth/Age : |
09.07.1933 |
|
Date of Appointment : |
25.03.2002 |
|
PAN No. |
AACPM9944R |
|
|
|
|
Name : |
Mr.
Prakash C. Kapoor |
|
Designation : |
Director |
|
Address : |
Pallonji
Mansion, Block – D, Ground Floor, 43, CUFFE Parade, Colaba, Mumbai – 400 005,
India. |
|
Date of Birth/Age : |
05.04.1945 |
|
Date of Appointment : |
29.03.2005 |
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PAN No. |
APAPK6775D |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Jayantilal
Gandhi |
372820 |
|
Kanchan
Gandhi |
372820 |
|
Dhrumil
Gandhi |
372820 |
|
Dharmendra
Gandhi |
559230 |
|
Mala
Gandhi |
559230 |
|
Uchit
Gandhi |
186410 |
|
Hemit
Gandhi |
186410 |
|
Dhirajbala
Gandhi |
372820 |
|
Harin
Gandhi |
372820 |
|
Apurva
Gandhi |
372820 |
|
Gandhi
Sons Private Limited |
6271800 |
|
TOTAL: |
10000000 |
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in the Business of Plastic Moulded Industrial Components. |
GENERAL
INFORMATION
|
No. of Employees : |
800 |
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Bankers : |
v
Citi
Bank v
BNP
Paribas |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Kamdar
Desai & Patel |
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Qualification: |
Charted
Accountant |
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Address: |
Neelkanth
Niwas, 196/C, Dr. Ambedkar Road, Dadar, Mumbai – 400 014, India. |
|
Tel. No.: |
91-22-24125897/
24164785/ 24113693 |
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Fax No.: |
91-22-24166944 |
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E-Mail : |
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Website: |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
100.000 |
100.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
541.007 |
381.479 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
641.007 |
481.479 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
1.919 |
0.933 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
1.919 |
0.933 |
|
|
DEFERRED TAX LIABILITIES |
|
34.777 |
37.677 |
|
|
|
|
|
|
|
|
TOTAL |
|
677.703 |
520.089 |
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|
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|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
295.914 |
287.588 |
|
|
Capital work-in-progress |
|
0.663 |
0.598 |
|
|
Pune Project |
|
0.528 |
0.489 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
163.790 |
11.582 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
98.580 |
133.755 |
|
|
Sundry Debtors |
|
172.624 |
182.292 |
|
|
Cash & Bank Balances |
|
(11.493) |
18.880 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
105.314 |
64.578 |
|
Total Current Assets |
|
365.025 |
399.505 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
100.552 |
147.079 |
|
|
Provisions |
|
48.000 |
34.000 |
|
Total Current Liabilities |
|
148.552 |
181.079 |
|
|
Net Current Assets |
|
216.473 |
218.426 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.335 |
1.406 |
|
|
|
|
|
|
|
|
TOTAL |
|
677.703 |
520.089 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
843.749 |
702.703 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
218.005 |
110.697 |
|
Provision
for Taxation |
|
45.100 |
27.177 |
|
Profit/(Loss)
After Tax |
|
172.905 |
83.520 |
|
|
|
|
|
|
Export
Value |
|
46.081 |
5.021 |
|
|
|
|
|
|
Import
Value |
|
51.749 |
15.886 |
|
|
|
|
|
|
Total
Expenditure |
|
625.744 |
592.005 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
20.49 |
11.89 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
25.84 |
15.75 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
26.380 |
15.82 |
|
|
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|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.34 |
0.23 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.23 |
0.38 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
2.46 |
2.21 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets:
Land,
Building, Renovation to Building, Flat Premises, Plant & machinery,
Electrical Installation, Fire Hydrane System, Msi Moulds, Material Handling
Crates, Computer Installation, Office Equipment, Furniture & Fixture, Motor
Car etc.
Dividend:
The
company had declared an interim dividend of 10% for the year, with a view to
conserve the resources for possible investments for expansion at various
locations. The Directors have decided not to recommend any further dividend.
Operation:
The
period under review has shown improvement in performance in relation to the previous
year. Sales of Plastic parts have registered a growth of over 10%. While mould
related income has shown a phenomenal increase – an increase of almost four
fold an account of large WIP and comfortable demand position throughout the
year and the resultant improvement in production efficiency. This has enabled
the company in registered significant improvement in margins. Profit before tax
has consequently increased over two fields due to strict control over costs.
Business
in the cubic division has slowed down in the year under consideration but the
directors expect a further significant improvement during the current financial
year 2005-06.
The
company has purchased a plot adjacent to their vasai unit for purchase of
expansion of their tool room capacity. Project is likely to be completed by
June 2006.
Mutual
Mecaplast Pune Limited which is a 100% subsidiary of the company has registered
growth of over 50% in revenues but the profits are under constant pressure due
to reduced margins. The company has also purchased a factory building of
Approximately 7500 sq. ft. adjacent to the present unit of the company. Thereby
mitigating space constraint to some extant.
The
Indian original promoters Gandhi’s have managed to purchase the 50% stake in
the company belonging to their erstwhile partners lccaplast International B.V.
by virtue of which Gandhi family now wholly owns 100% shareholding of the
company. The company has managed its name from Mutual Mecaplast Limited to its
original name of Mutual Industries Limited. The company is in now involved in a
major expansion expanding its toolroom capacity as also increasing its capacity
at Pune, which has become. Hub for Automobile industry.
The
company has decided to merge its 100% subsidiary Mutual Mecaplast Pune Limited
with itself and it is hopeful of completing the same by the end of the current
financial year 2005-06 on March 31st , 2006.
Finance:
The
company is banking with BNP Paribas and with Citi Bank for its subsidiary. The
company has given an inter Corporate Deposit of Rs. 32.000 Millions to Tapi
Energy Private Limited.
Related
Parties:
v
Mutual
Mecaplast Pune Limited
v
Manek
Plastics Private Limited
v
Paradise
Plastics Enterprises Limited.
AS
PER WEBSITE:
Mutual
Industries Limited is an engineering plastics, one point source for the
Automotive, Electronics, Household Appliances Industries.
Established
in 1979 by J.M.Gandhi and D.K.Gandhi : Mutual has absorbed and developed
technologies, based on Indian cost levels.
The In-house Design Centre, Tool Room, Injection Moulding facilities,
Decoration and system assemblies has capabilities to build moulds, develop and
supply parts of clamping tonnage up to 3000 tons.
The Cubic decoration facility has a license for Automotive application in India.
Personnel with vast experiences in plastics and automotive fields team up to deliver and service leading customers in India and abroad.
Company Profile:
- Mutual Industries Limited is an
engineering plastics, one point source for the Automotive, Electronics,
Household Appliances Industries.
- Established in 1979 by J.M.Gandhi and
D.K.Gandhi : Mutual has absorbed and developed technologies, based on
Indian cost levels.
- The In-house Design Centre, Tool Room,
Injection Moulding facilities, Decoration and system assemblies has
capabilities to build moulds, develop and supply parts of clamping tonnage
up to 3000 tons.
- The Cubic decoration facility has a
license for Automotive application in India.
- Personnel with vast experiences in
plastics and automotive fields team up to deliver and service leading
customers in India and abroad.
Manufacturing:
Mutual
Industries Ltd. is having state of the art manufacturing facilities using
cutting edge technologies and modern manufacturing methods to deliver quality
products.
Internationally
competitive products require world class quality. The manufacturing process
incorporates inspection & quality checks in itself as part of the
manufacturing process. Thus ensuring world class quality if each of the
component manufactured.
THEIR MARKET SEGMENTS
Automotive 48%
Audio
& Video 13%
Comfort
Systems 14%
Others 2%
Automotive 48 % of turnover
Customers Behr, Fiat, GM, Mahindra,
Telco,
Parts : Dashboard Assembly, Bumper
painted, Consoles, Expansion tanks, HVAC, Interior Trims, Side Trims
Automotive 13 % of turnover
Customers Onida, Crown, AIWA, Sharp
Parts : Facia-Painted & Cubic Decorated Back
Covers, Speaker Grills & Domes.
Comfort Systems 14 % of turnover
Customers Symphony, Voltas, Godrej
Parts & Models : Kaizan Complete System, Sumo Complete Systems, Front Grills &
Fans
Household Appliances 23 % of turnover
Customers Elgi, Symphony, Bajaj Ventures Ltd.
Parts Housing for Grinders, Base Covers, Transparent Covers
Others 2 % of turnover
Customers CMS, ECIL, Voltas & others
Parts Traffic Light Housings, Hand Tool Housing,
Transparent Enclosures.
Quality Control:
CUSTOMER
SATISFACTION is their first and foremost priority which they should achieve
through TRANSPARENCY in pricing and EXCELLENCE in performance, in respect of
QUALITY, DELIVERY & SERVICE. They will continuously strive to achieve
higher and higher levels of Customer Satisfaction by effective deployment of
all their resources.
They highly value or responsibility to be ENVIRONMENT FRIENDLY in all their
activities.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
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.46.20 |
|
UK
Pound |
1 |
Rs.84.57 |
|
Euro |
1 |
Rs.58.12 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |