MIRA
INFORM REPORT
|
Report Date : |
17.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
PRECISION GEARS LIMITED |
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Registered Office : |
G-1, Everest Apartments,
156, Tardeo Road, Mumbai – 400 034, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
23.03.1961 |
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Com. Reg. No.: |
11-11958 |
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CIN No.: [Company
Identification No.] |
U27100MH1961PLC011958 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP15667B |
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PAN No.: [Permanent
Account No.] |
AACP6442Q |
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Legal Form : |
A
closely held public limited liability company. The
company is a subsidiary of IMA SPA; Italy.
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Line of Business : |
Manufacturing and Marketing of
Helical Sour, Worm, Reduction and Precision Gears and Gears of any other kind
of descriptions. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
950000 |
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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 company having fine track. Financial position is good.
Trade relations are fair. Payments are correct and as per commitments. The
company is doing well. It can
be considered good for any normal business dealing. It can be regarded as a
promising business partner in a medium to long run. |
LOCATIONS
|
Registered Office : |
G-1,
Everest Apartments, 156, Tardeo Road, Mumbai – 400 034, Maharashtra, India |
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Tel. No.: |
91-22-2769
0975 / 5590 1365 / 5590 1366 / 2352 2103 / 2351 2196 |
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Fax No.: |
91-22-2760
0888 / 2760 0889 / 2352 0592 |
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E-Mail : |
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Website : |
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Factory
and Administrative office : |
Plot
No. R – 677, MIDC Industrial Area, off Thane Belapur Road, Rabale, New Bombay
– 400701, India |
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Tel.
No.: |
91-22-27690974-75
/ 55901365 / 55901366 |
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Fax
No.: |
91-22-27600888
/ 27600889 |
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E-Mail : |
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Branches
: |
8, Laxhmibai
Nagar, Fort Industrial Estate, Indore – 452006, Madhya Pradesh, India Tel No.:
91-731-2612201 / 2612202 / 2612203 Fax No.:
91-731-2612203 Plot No. 57/6, 6th
Cross Kaverappa Road, B. T. M. Layout II Stage, Bangalore – 560076 Tel No.:
91-80-26687779 / 26689229 Fax No.:
91-80-26686047 |
DIRECTORS
|
Name : |
Mr. Rudolfo Gaudenzi (Foreign) |
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Designation : |
Director |
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Address : |
Via Rubbiani, 2, Bologna, Italy |
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Date of Birth/Age : |
05.07.1995 |
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Date of Appointment : |
12.11.1942 |
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Name : |
Mr.
Anil Gopal Rao |
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Designation : |
Whole
Time Director |
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Address : |
1-C,
Cosmopolis,21, L. D. Rupanel Marg, Malabar Hill, Mumbai – 400 006 |
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Date of Birth/Age : |
23.04.1953 |
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Date of Appointment : |
01.03.2004 |
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Name : |
Mr.
Satish Gopal Rao |
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Designation : |
Whole Time Director |
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Address : |
101, LC Papeyon, 9, Mount Mary Road,
Bandra (West), Mumbai – 400 050 |
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Date of Birth/Age : |
26.08.1945 |
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Date of Appointment : |
03.10.1997 |
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Name : |
Mr. Marco Vacchi (Foreign) |
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Designation : |
Director |
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Address : |
Via Dante, 7/2 40125, Bologna, Italy |
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Date of Appointment : |
19.01.1999 |
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Name : |
Mr.
Gaetano Castiglione |
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Designation : |
Director
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Address : |
Via
Contidella, Bordella No. 11, Imola [Bo], Italy |
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Date of Birth/Age : |
28.09.1962 |
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Date of Appointment : |
01.01.1962 |
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Name : |
Mr.
Rudolfo Gaudenzi |
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Designation : |
Director
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Address : |
Via Rubbiani – 2, Bologna, Italy |
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Date of Birth/Age : |
12.11.1942 |
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Date of Appointment : |
14.02.1999 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
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No. of Shares |
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Mr. Anil Gopal Rao |
|
20301 |
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Mr. Anil Gopal Rao (HUF) |
|
3189 |
|
Expo Colorpacks Private Limited |
|
1248 |
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Mr. Hamsa A. Rao |
|
4383 |
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Mr. Hosemane V. Konde |
|
2763 |
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Mrs. Latha S. Rao |
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5358 |
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Mrs. Prema G. Rao |
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24864 |
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Mr. Satish G. Rao |
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19782 |
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Mr. Satish G. Rao (HUF) |
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4005 |
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Mr. Ajay S. Rao |
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1113 |
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IMA SPA Italy |
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91050 |
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Mr. Hosmane Vittal Konde |
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147 |
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Mr. Harish Vittal Konde |
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159 |
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Mr. Sathya Vittal Konde |
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159 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of
Helical Sour, Worm, Reduction and Precision Gears and Gears of any other kind
of descriptions. |
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Products : |
·
Blister Packing Machine and
Cartoning Machine ·
Capsule Filling Machine · Rivets |
GENERAL
INFORMATION
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Bankers : |
v
The Shamrao Vithal Co-operative Bank
Limited, Ghatkopar (East), Mumbai, Maharashtra v The Hong Kong and Shanghai Banking Corporation Limited 52/60, Mahatma Gandhi Road, Mumbai –
400001 |
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Banking Relations : |
Good |
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Auditors : |
Price Waterhouse Chartered Accountants 252 Weer Savarkar Marg, Shivaji Park,
Dadar [West], Mumbai – 400028, Maharashtra, India |
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Tel No.: |
91-22-66691000 |
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Fax No.: |
91-22-66547800 / 66547801 |
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Parent Company : |
Ř
IMA SpA, Italy |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
200,000 |
Equity
Shares |
Rs.100/-
each |
Rs. 20.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
178521 |
Equity
Shares |
Rs.100/-
each |
Rs. 17.852 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
17.852 |
17.852 |
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2] Reserves & Surplus |
|
223.638 |
201.352 |
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NETWORTH |
|
241.490 |
219.204 |
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LOAN FUNDS |
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1] Secured Loans |
|
31.581 |
0.752 |
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2] Unsecured Loans |
|
0.000 |
11.991 |
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TOTAL BORROWING |
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31.581 |
12.743 |
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TOTAL |
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273.071 |
231.947 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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89.053 |
60.163 |
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Capital work-in-progress |
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0.000 |
13.269 |
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INVESTMENT |
|
0.050 |
0.050 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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110.733 |
117.869 |
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Sundry Debtors |
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256.817 |
174.201 |
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Cash & Bank Balances |
|
38.854 |
49.852 |
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Other Current Assets |
|
0.560 |
0.000 |
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Loans & Advances |
|
18.818 |
9.257 |
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Total Current Assets |
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425.782 |
351.179 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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218.265 |
175.790 |
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Provisions |
|
23.549 |
16.924 |
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Total Current Liabilities |
|
241.814 |
192.714 |
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Net Current Assets |
|
183.968 |
158.465 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
273.071 |
231.947 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.12.2005 |
31.12.2004 |
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Sales Turnover [including other income] |
|
594.288 |
538.661 |
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Profit/(Loss)
Before Tax |
|
80.159 |
59.745 |
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Provision
for Taxation |
|
27.747 |
22.335 |
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Profit/(Loss)
After Tax |
|
52.412 |
37.410 |
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Export
Value |
|
298.679 |
NA |
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Total
Expenditure |
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514.128 |
478.916 |
KEY
RATIOS
|
PARTICULARS |
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|
31.12.2005 |
31.12.2004 |
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PAT / Total Income |
(%) |
|
8.82 |
6.94 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
13.49 |
11.09 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
15.57 |
14.52 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
0.33 |
0.27 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.13 |
0.94 |
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Current
Ratio (Current
Asset/Current Liability) |
|
|
1.76 |
1.82 |
LOCAL AGENCY
FURTHER INFORMATION
Business
Manufacturers of blister packing machines and cartoning machines for pharmaceuticals, cosmetics, and medical devices. Our main blister machines are the Clinipack, TR100L, and TR102, which are capable of packaging tablets, capsules, ampoules, vials, syringes, and medical devices, forming depths up to 25 mm.
Dividend
This year the Interim dividend @ 148 % have been paid to the Shareholder whose name appeared in the Register of members as on 03.03.2006. The total amount of interim dividend outflow including tax was Rs. 30.127 millions. There will be no final dividend.
Production And Sales
During the year
under report it had produced 187 Nos. of Machines and Sold 184 Nos. of
Machines. This year its Sales had gone up from 529.410 millions to 583.020
millions.
The company has amalgamated with
Precision Gears (Indore) Private Limited.
It is in trade terms with:
q
Advance Control Data
q
Afrin Fabrication
q
Bhagyesh Enterprises
q
Dinesh Fabricators
q
M. K. Timber
q
P. G. Engineers Private Limited
q
Sai Fabricators
q
Santosh Engineering
q
Theta Controls
q
Vijay Refrigerations
The company’s fixed asset of
important value include Lease Hold Land, Factory Building, Plant &
Machinery, Office Equipment, Motor Car and Furniture and Expenditures
Precision Gears Limited, India, commenced the manufacturing
of Rotary Motion, Vacuum Forming, Blister Packing Machines for the
Pharmaceutical Industry in 1978 under Technical Collaboration of Hassia
Verpackung Maschinen GmBH of West Germany.
Now with over 25 years experience, the Company has made significant
developments in the field of Thermoforming with special emphasis on catering to
the demands and needs of the Pharmaceutical Industry.
Since then with major emphasis on it's own research and development &
continuos interaction with the end user has led to many value added products
being launched from time to time .
Precision Gears is zealously committed towards providing
simple solution to the complex requirements which is reflected in solutions
that have worked for realizing novel packaging for innovative products ,which
at times is critical for product stability and it's success in the market .
In June 1995 Precision Gears Limited became a subsidiary of IMA, Italy, a
turning point in the history of Precision Gears.
Collaboration with IMA SpA , recognized as the world's leading company in the
field of the pharmaceutical processing and packaging equipment suppliers today.
has further led to the launch of versatile products and addition of cartoning
machines in the existing product portfolio.
|
Name of the company |
PRECISION GEARS LIMITED |
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Presented By |
The Hong Kong and Shanghai Banking Corporation Limited 52/60, Mahatma Gandhi Road, Mumbai – 400001 |
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1) Date and description of instrument creating the change |
Deed of Hypothecation dated 27.01.2005 executed between precision Gears Limited and The Hong Kong and Shanghai Banking Corporation Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 45.000 Millions Funded Rs. 15.000 Millions Non – Funded |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All the company’s present and future plant and machinery now purchased and to be purchased by the company lying being installed or to be installed at the company’s premises or elsewhere and All the company’s present and future stocks of raw materials, stock in process, stores, semi finished and finished goods and tools whether installed or not and whether now lying loose or in cases or be stored in the company’s premises and godowns whosesoever situate and in transit whether now belonging to or that may at any time during the continuance of this security belong to the company and All the present and future book debts, outstanding, monies receivable, claims due to contracts, engagements, security bills due and owing or which may at any time hereafter during the continuance of this security become due or owing to the company in the course of its business by any person, firm, company or by any Government or any authority. The goods and the receivables are hereinafter collectively referred to as the assets. Provided that the goods and receivables shall at all times stand hypothecated in favour of the bank upto a maximum value of Rs. 40.000 Millions |
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4) Gist of the terms and conditions and extent and operation of the charge. |
At the request of the company the bank has sanctioned to the company working capital sanctioned to the company capital facility of Rs. 60.000 millions i.e. Rs. 45 millions Funded and Rs. 15 Millions Non Funded As security for repayment of the said facility and all the amounts due and outstanding under the said facility account the company has created a first and exclusive charge in favour of the bank over the plant and machinery the goods and receivable described in item 3 above. The hypothecated assets has been charged as and by way of a first charge in favour the bank as security for repayment of all the amounts outstanding under the said facility account. The company to pay interest to the Bank on the terms agreed between the bank and the company. |
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5) Name and Address and description of the person entitled to the charge. |
The Hong Kong and Shanghai Banking Corporation Limited 52/60, Mahatma Gandhi Road, Mumbai – 400001 |
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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Name of the company |
PRECISION GEARS LIMITED |
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Presented By |
The Hong Kong and Shanghai Banking Corporation Limited 52/60, Mahatma Gandhi Road, Mumbai – 400001 |
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1) Date and description of instrument creating the change |
Memorandum of Entry recording Past Transaction of Equitable Mortgage dated 16.08.2005 executed between Precision Gears Limited and The Hong Kong and Shanghai Banking Corporation Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 60.000 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
MIDC plot of land bearing Plot Ni R – 677 in the Trans thane Creek Industrial Area within the village limits of tetavali, and within the limits of new Bombay Municipal Corporation Taluka and registration district Thane containing by adm 4816 sq. mt. or thereabout together with the building and structures thereon. MIDC plot of land bearing Plot Ni R – 696 in the Trans thane Creek Industrial Area within the village limits of tetavali, and within the limits of new Bombay Municipal Corporation Taluka and registration district Thane containing by adm 2125.00 sq. mt. or thereabout together with the building and structures thereon. Indore plot of land |
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4) Gist of the terms and conditions and extent and operation of the charge. |
At the request of the company the bank has sanctioned to the company working capital sanctioned to the company capital facility of Rs. 60.000 millions i.e. Working Caital facility : Rs. 60 millions Term Loan Facility Rs. 60 Millions As security for repayment of the said facility and all the amounts due and outstanding under the said facility account the company has created a first and exclusive charge in favour of the bank over the plant and machinery the goods and receivable described in item 3 above. Accordingly the bank has a first charge by way of equitable mortgage over the immovable property described in item 3 above as security for repayment of all the amounts due an outstanding under the facility account of the company with the bank upto an aggregate limit of Rs. 60.000 millions together with all interest fees, charges, costs and expenses incurred by the bank in relation to the said facilities and realisation of the security. |
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5) Name and Address and description of the person entitled to the charge. |
The Hong Kong and Shanghai Banking Corporation Limited 52/60, Mahatma Gandhi Road, Mumbai – 400001 |
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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.44.75 |
|
UK
Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.57.55 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|