MIRA
INFORM REPORT
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Report Date : |
24.08.2007 |
IDENTIFICATION DETAILS
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Name : |
RATAN ENGINEERING COMPANY PRIVATE LIMITED |
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Registered Office : |
R-7, Nehru Enclave, Kalkaji, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.06.1985 |
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Com. Reg. No.: |
55-21146 |
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CIN No.: [Company
Identification No.] |
U74899DL1985PTC021146 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR08819G |
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PAN No.: [Permanent
Account No.] |
AAACR4259F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Steel Castings. |
RATING & COMMENTS
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MIRAs Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 24000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
R-7, Nehru Enclave, Kalkaji, |
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Tel. No.: |
91-11- 2643 0284 / 2643 5220 |
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Mobile No.: |
91-9810015770 |
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Fax No.: |
91-11-2646 6496 / 2643 5220 |
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E-Mail : |
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Website : |
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Area : |
8000 sq. ft. [Owned] |
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Factory 1 : |
F 454, RIICO Industrial Area, Bhiwadi |
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Tel. No.: |
91-1493-220546 |
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Fax No.: |
91-1493-220857 |
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Area : |
40000 sq. ft. [Owmed] |
DIRECTORS
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Name : |
Mr. Ram Prakash |
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Designation : |
Director |
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Address : |
R 7, Nehru Enclave, Kalkaji, |
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Date of Birth/Age : |
07.12.1950 |
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Qualification : |
B. tech [Mech] |
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Experience : |
35 Years |
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Date of Appointment : |
05.06.1985 |
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Name : |
Mr. Naresh Garg |
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Designation : |
Director |
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Address : |
R 7, Nehru Enclave, Kalkaji, |
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Date of Birth/Age : |
28.02.1958 |
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Qualification : |
Eco Hom, LLB |
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Experience : |
28 Years |
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Date of Appointment : |
05.06.1985 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Vikram Garg |
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1132 |
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Vivek Garg |
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1171 |
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Ram Prakash |
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2189 |
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Naresh Garg |
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2139 |
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Madhu Garg |
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198 |
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Veena Garg |
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181 |
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R L Garg HUF |
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196 |
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Varun Garg |
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190 |
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Percentage of
Holding |
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Equity Share
Breakup |
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Category |
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Bodies corporate |
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58.51 |
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Directors or relatives of directors |
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41.48 |
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Other top fifty shareholders |
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0.01 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Steel Castings. |
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Products : |
Bodies and Bonnets for Industrial Valves |
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Exports : |
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Products : |
Steel Castings and Excavator Spares |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Valves, Steel Castings |
MT |
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1000 Per Annum |
GENERAL INFORMATION
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Customers : |
Wholesalers, End users and
OEMs
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No. of Employees : |
100 |
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Bankers : |
Ψ
State
Bank of Ψ
HDFC Bank
Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Garg Manoj and Associates Chartered Accountants |
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Address : |
G 61, F. F., Eats of Kailash, |
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Tel. No.: |
91-11-26840363 / 41802100 |
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Mobile No.: |
91-9312259136 |
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E-Mail : |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
As on 30.09.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25,000 |
Equity Shares |
Rs. 100/- each |
Rs. 2.500 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25,000 |
Equity Shares |
Rs. 100/- each |
Rs. 2.500 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.880 |
0.780 |
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2] Share Application Money |
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0.000 |
0.600 |
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3] Reserves & Surplus |
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4.125 |
1.704 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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6.005 |
3.084 |
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LOAN FUNDS |
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1] Secured Loans |
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4.840 |
1.951 |
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2] Unsecured Loans |
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1.830 |
3.517 |
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TOTAL BORROWING |
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6.670 |
5.468 |
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DEFERRED TAX LIABILITIES |
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0.011 |
0.053 |
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TOTAL |
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12.686 |
8.605 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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3.250 |
2.499 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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3.498 |
3.182 |
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Sundry Debtors |
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10.827 |
6.421 |
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Cash & Bank Balances |
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0.579 |
1.136 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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2.112 |
2.389 |
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Total
Current Assets |
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17.016 |
13.128 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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6.765 |
6.867 |
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Provisions |
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0.815 |
0.155 |
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Total
Current Liabilities |
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7.580 |
7.022 |
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Net Current Assets |
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9.436 |
6.106 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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12.686 |
8.605 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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62.977 |
40.779 |
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Total Income |
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62.977 |
40.779 |
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Profit/(Loss) Before Tax |
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2.094 |
2.504 |
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Provision for Taxation |
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0.773 |
0.208 |
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Profit/(Loss) After Tax |
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1.321 |
2.296 |
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Expenditures : |
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Depreciation & Amortization |
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0.468 |
0.218 |
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Other Expenditure |
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60.415 |
38.057 |
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Total Expenditure |
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60.883 |
38.275 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.10 |
5.63 |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.33 |
6.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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10.33 |
16.02 |
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Return on Investment (ROI) (PBT/Networth) |
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0.35 |
0.81 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.37 |
4.05 |
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Current Ratio (Current Asset/Current Liability) |
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2.24 |
1.87 |
LOCAL AGENCY FURTHER INFORMATION
Trade Reference
- Bharat Heavy Electricals Limited
- Bharat Earth Movers Limited
Bankers Charges
Report as per Registry
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Name of the company |
RATAN
ENGINEERING COMPANY PRIVATE LIMITED |
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Presented By |
Ram Prakash
Director |
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1) Date and description of instrument creating the change |
Agreement of Loan
for over all limit dated 19.10.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan Rs.
0.550 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 |
Hypothecation of
all Current and Fixed Assets E M of Land and
Buildign at F 454 Riico Industrial Area, Bhiwadi int the Name of the
company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest : @
10.25 % p.a. as applicable to SBBJ 2 rating Changeable from time to time. Repayment : Repayment
in 60 monthly installment of Rs. 0.009 Million w.e.f. April 2006 |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Industrial
Estate, Bhiwadi |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
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As Per Website
The obsession for Total Reliability of an I.I.T. Delhi graduate
has been christened as subject established in the year 1987. Its fixation on
TOTAL RELIABILITY, though initially, sparkled its growth but as time went by,
it became its OBSESSION - an addiction that has become its corporate hallmark.
Subject has established itself as one of the leading manufacturers
of Quality Steel Castings. Their Castings especially of Industrial Valves are
well known in the country and they are one of the major suppliers of such
castings to leading Industrial Valve Manufacturers in
Encouraged by the appreciation of their products in the home
market, they approached overseas buyers for their castings. Negotiations their
materialized and they established their credentials in the face of
international competition. Today they are exporting a substantial % of their
total production of castings to Europe and
They manufacture a large range of castings to suit their
customers. Weight wise they produce castings from 5 kg to 950 kg single piece
casting in Carbon Steel, Alloy and Stainless Steel.
The REC family has only one obsession - TOTAL RELIABILITY - be it
deliveries or quality. Their workforce of about 70 specialists working on
modern production facilities is dedicated to achieving quality products for
Total customer satisfaction.
They have a well knit Quality Assurance department which acts as
'ears & eyes' of their Discerning customers and ensures TOTAL RELIABILITY.
The reason for their growing popularity in the field of Steel
Castings for special applications lies primarily in:
their dedicated workforce,
modern production their processes and
their stringent quality control measures
They are confident that once a customer gets used to the REC concept
of 'TOTAL RELIABILITY' he will settle for nothing less. In the manufacture of
castings at REC, attention is paid to:
Carefully developed Systems and Procedures
In process quality checks
Modern Production facilities
Special purpose equipment and machines designed and built in
house
The checking and testing of finished castings is scrupulously
carried out on each piece in order to guarantee Total customer satisfaction.
The Subject Production Plant is based at Bhiwadi
a rapidly developing area in Rajasthan, some 70 kms away from
Excavator spares for:
HM,
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 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 Intl
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 companys 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
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Indian Rupees |
|
US Dollar |
1 |
Rs.41.12 |
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|
1 |
Rs.82.43 |
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Euro |
1 |
Rs.56.03 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
This score serves as a reference to assess SCs 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 |
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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 |
|
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. |
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 |
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