MIRA
INFORM REPORT
|
Report Date : |
01.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
GUNNEBO
INDIA LIMITED |
|
|
|
|
Formerly Known As : |
STEELAGE
INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
156, Dr. Mascarenhas Road, Opp. Post Office
Mazagaon, Mumbai – 400 010, Maharashtra, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.12.2004 |
|
|
|
|
Date of Incorporation : |
01.09.1932 |
|
|
|
|
Com. Reg. No.: |
11-1874 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27106MH1932PTC001874 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS42086C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACS72360 |
|
|
|
|
Legal Form : |
A
Public Limited Liability company. The Company is no more listed on the Stock
Exchanges due to the acquition by Genneho AB Swden |
|
|
|
|
Line of Business : |
Manufacture
and Sale of Structural Items, Steel Furniture including Security Equipments,
Fire, burglary, Jewellery and Toos Resistant Safes, Safe Deposits lockers and
Fire Resisting Protection Equipments etc. |
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 : |
USD
1000000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well – established company and now a subsidiary of Gennebo AB, Sweden.
Financial position is satisfactory. Trade relations are fair. Payments are
correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
156, Dr. Mascarenhas Road, Opp. Post Office
Mazagaon, Mumbai – 400 010, Maharashtra, India |
|
Tel. No.: |
91-22-23738961 / 23748109/23707000/25704602 /
23738964 / 23705123 / 23705127 / 23738965 / 23744553 / 23784355 / 23705117 /
23771737 / 23743989 |
|
Fax No.: |
91-22-23739305/23743989 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory
1 : |
Mazagaon,
Mumbai; Ambattur Plant I & II, Chennai, Tamil Nadu Halol,
Gujarat. |
DIRECTORS
|
Name : |
Mr. D. D. Khetrapal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Naresh Hosangady |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Bjarne Holmqvist |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
William M. Mouat |
|
Designation : |
Director
|
|
|
|
|
Name : |
Ms.
Alka Bharucha |
|
Designation : |
Director
|
|
|
|
|
Name : |
Paul Extance |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name
: |
Mr. Gopal Jogani |
|
Designation
: |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacture
and Sale of Structural Items, Steel Furniture including Security Equipments,
Fire, burglary, Jewellery and Toos Resistant Safes, Safe Deposits lockers and
Fire Resisting Records Protection Equipments etc. |
|
|
|
|
Products : |
Fire
Extinguisher – 84241000 Safes
Safe Deposit Lockers – 83030000 Locks
& Keys – 83011000 |
PRODUCTION
STATUS
|
Particulars |
Unit
|
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Physical Security: |
|
|
|
|
|
Structural items |
Nos. |
1 ,200 |
2,000 |
1,150 |
|
Steel Furniture including Security Equipments |
Nos. |
10,000 |
6,000 |
2,578 |
|
Fire, Burglary, Jewellery and Tool Resistant Safes, Safe deposit lockers, and Fire Resisting Record Protection equipments
etc. |
Nos. |
10,000 |
15,000 |
5,321 |
|
Fire Security: |
|
|
|
|
|
Fire Extinguishers and Equipments |
Nos. |
-- |
-- |
78,252 |
|
Refills |
Nos. |
-- |
-- |
34,927 |
|
Hoses |
Mtrs. |
-- |
-- |
12,089 |
|
Foam Compounds |
Litres |
-- |
-- |
5,000 |
|
Fire Engines and Fire Alarm Components |
Nos. |
-- |
-- |
67,292 |
|
Dry chemical Powder |
Kgs. |
-- |
-- |
21,745 |
|
Trailer Pumps, Portable pumps, Fire Engines
and Water fittings |
Nos. |
-- |
-- |
4,502 |
GENERAL
INFORMATION
|
No. of Employees : |
1200 |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
v
Central
Bank of India v
Indian
Bank v
Hongkong
Bank v
Andhra
Bank. v
BNP
Paribas v
ING
Vysya |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors : |
Price Waterhouse & Company Chartered Accountants Internal Auditors Ernst & Young Private Limited Chartered Accountants Jain Chowdhary & Company Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
Security
Equipment Manufacturers Limited |
|
|
|
|
Holding Company |
Gannebo
AB, Swden |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
7500000 |
Equity Shares |
Rs.10/- Each |
Rs. 75.000 Millions |
|
17500000 |
Cumulative Preferences Shares |
Rs. 10/- Each |
Rs. 175.000 Millions |
|
|
Total |
|
Rs. 250.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3121875 |
Equity Shares |
Rs.10/- Each |
Rs. 31.218 Millions |
|
8000000 |
14% Cumulative Preferences Shares |
Rs. 10/- Each |
Rs. 80.000 Millions |
|
9000000 |
13% Cumulative Preferences Shares |
Rs. 10/- Each |
Rs. 90.000 Millions |
|
|
Total |
|
Rs. 201.218 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2004 |
31.12.2003 |
31.12.2002 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
201.218 |
201.218 |
111.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
171.880 |
173.324 |
86.700 |
|
|
4] (Accumulated Losses) |
(107.227) |
(119.060) |
0.000 |
|
|
NETWORTH |
265.871 |
255.482 |
197.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
40.740 |
0.000 |
36.100 |
|
|
2] Unsecured Loans |
379.244 |
347.552 |
300.800 |
|
|
TOTAL BORROWING |
419.984 |
347.552 |
336.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
685.855 |
603.034 |
534.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
243.628 |
182.836 |
190.000 |
|
|
Capital work-in-progress |
0.788 |
53.560 |
13.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.748 |
0.748 |
0.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
123.790
|
90.770 |
94.400 |
|
|
Sundry Debtors |
418.404
|
338.148 |
354.300 |
|
|
Cash & Bank Balances |
9.722
|
33.914 |
23.200 |
|
|
Other Current Assets |
0.00
|
0.000 |
0.000 |
|
|
Loans & Advances |
173.545
|
148.147 |
129.300 |
|
Total Current Assets |
725.461
|
610.979 |
601.200 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
266.493
|
228.910 |
233.200 |
|
|
Provisions |
18.355
|
16.322 |
37.800 |
|
Total Current Liabilities |
284.848
|
245.232 |
271.000 |
|
|
Net Current Assets |
440.613
|
365.747 |
330.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.078 |
0.143 |
0.200 |
|
|
|
|
|
|
|
|
TOTAL |
685.855 |
603.034 |
534.800 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.12.2004 |
31.12.2003 |
31.12.2002 |
|
Sales Turnover [including other income] |
897.448 |
622.538 |
688.200 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
12.227 |
(30.846) |
(22.300) |
|
Provision
for Taxation |
0.395 |
0.000 |
|
|
Profit/(Loss)
After Tax |
11.832 |
(30.846) |
(22.300) |
|
|
|
|
|
|
Export
Value |
0.645 |
3.557 |
NA |
|
|
|
|
|
|
Import
Value |
41.717 |
26.245 |
NA |
|
|
|
|
|
|
Total
Expenditure |
860.376 |
653.385 |
675.800 |
KEY
RATIOS
|
PARTICULARS |
31.12.2004 |
31.12.2003 |
31.12.2002 |
|
Debt
Equity Ratio |
2.73 |
3.26 |
7.24 |
|
Long
Term Debt Equity Ratio |
0.00 |
0.00 |
0.21 |
|
Current
Ratio |
1.03 |
1.01 |
0.96 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.39 |
4.12 |
4.13 |
|
Inventory
|
8.62 |
7.58 |
7.19 |
|
Debtors |
2.44 |
2.03 |
2.26 |
|
Interest
Cover Ratio |
1.91 |
0.15 |
0.54 |
|
Operating
Profit Margin (%) |
9.22 |
2.14 |
5.38 |
|
Profit
Before Interest and Tax Margin (%) |
7.69 |
0.77 |
3.86 |
|
Cash
Profit Margin (%) |
5.10 |
(3.05) |
(1.75) |
|
Adjusted
Net Profit Margin (%) |
3.57 |
(4.42) |
(3.27) |
|
Return
on Capital Employed (%) |
12.31 |
0.00 |
0.00 |
|
Return on Net Worth (%) |
137.79 |
0.00 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.245.00/- |
|
Low |
Rs.245.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Steelage Industries (SIL) was incorporated in September 1932 and it became a public limited company in April 1967. The company has two divisions physical security division and minimax division. The physical security division which has been operating since 1932 manufactures and sells security equipment such as safe deposit vaults, vault doors, safe deposit lockers, safes, etc, and steel furniture includng sophisticated fire resistant cabinets and filing cabinets. It is one of the largest units of its kind in the country and has a network of about 100 dealers and distributors throughout the country.
The minimax division was established in 1972 by taking over the business
of the Indian branch of Minimax, UK, which has been operating since 1903. In
1975-1976, a well-equipped factory for manufacture of fire extinguishers and
allied products was set up at Ambattur, Madras. Another new and modern
industrial plant for manufacture of fire engines, trailer pumps and portable
pumps has been commissioned in July 1986 at Ambattur. The company made its
maiden public issue in November 1986.
During 1998-1999, Chubb International Holdings Limited, UK, has increased
its stake in the company by acquiring 30% share of the company from Indian
promotors viz., Turner Morrison Group, there by taking its stake to
53.84%.
The company is planning to prepare itself for new initiative in the area of new
products and also higher quality standards and to increase their market share.
Review of Operations
During the year under review the Company has performed well resulting in a
profit before taxes of Rs.12.200 Millions, for the first time in the last few
years.
The overall sales amounted to Rs. 836.900 Millions, an increase of 31.25% over
the preceding year. Net profit before tax for the year under report is higher
at 12.200 Millions as against the losses of Rs. 30.800 Millions in the
preceding year. This has been made possible through a series of measures
implemented by the management.
The modernization-cum-expansion program at Halol has been completed leading to
higher capacity and productivity. Newer technologies, designs, and cost
reduction will enable the Company to show the improved results in future.
With a buoyant outlook for the economy, the Company expects to grow in the
coming years.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.45 |
|
UK
Pound |
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.57.12 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|