MIRA INFORM REPORT
|
Report Date : |
10.02.2007 |
IDENTIFICATION DETAILS
|
Name : |
CONTINENTAL
CONTROLS LIMITED |
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Registered Office : |
Sidharth
Industrial Estate, No.2, Gala No. 1, Shailesh Udhyaog Nagar, Sativali Road,
Valiv, Vasai (E), Thane – 401208, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.03.1995 |
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Com. Reg. No.: |
11-86040 |
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CIN No.: [Company Identification No.] |
L31909MH1995PLC086040 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMC05650B |
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PAN No.: [Permanent Account No.] |
AAACC2007J |
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Legal Form : |
Public
Limited Liability Company. The company's shares are listed on the stock
exchanges. |
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Line of Business : |
Manufacturing of thermal
overload protectors. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Unknown |
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Comments : |
The company is a listed
company on the stock exchange. Its track of performance and financial status
is moderate. Payments are reported as slow and delayed. The company can be
considered for any business dealings on safe and secured trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Sidharth
Industrial Estate, No.2, Gala No. 1, Shailesh Udhyaog Nagar, Sativali Road,
Valiv, Vasai (E), Thane – 401208, Maharashtra, India. |
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E-Mail : |
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Website |
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Factory 1 : |
5,
Government Industrial Estate, Masat, Silvassa - 396 230, Dadra & Nagar
Haveli, (U.T), India |
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Branch : |
B-10,
Tirupati Udyog Nagar, Sativali Road, Waliv, Vasai (East), Thene-401208,
Maharashtra, India |
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Tel. No.: |
91-250-2454952/53/
2452261/62/63 |
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Fax No.: |
91-250-2454956 |
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E-Mail : |
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Website |
DIRECTORS
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Name : |
Mr. Navin G. Thakkar |
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Designation : |
Chairman
& Managing Director |
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Name : |
Mr.
Samir N. Thakkar |
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Designation : |
Director |
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Name : |
Mr.
Amit N. Thakkar |
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Designation : |
Director |
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Name : |
Mr. Pradeep C. Gaglani |
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Designation : |
Director |
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Name : |
Mr.
Harish S. Thakkar |
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Designation : |
Director |
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Name : |
Mr.
Kanaiyalal S. Thakkar |
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Designation : |
Director |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Resident Individual |
5812320 |
96.82 |
|
Nationalised
banks |
27852 |
0.02 |
|
Bodies
Corporate |
1446654 |
2.61 |
|
Independent
Directors |
200 |
0.02 |
|
Directors |
1038807 |
0.08 |
|
Director’s
Relatives |
480805 |
0.03 |
|
N.R.I.
(Non Repat) |
21005 |
0.30 |
|
N.R.I.
(Repat) |
14869 |
0.12 |
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Total |
8842512 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of thermal
overload protectors. |
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Products : |
v
OLP Single Phase v
OLP Three Phase v
OLP Refrigeration v
Thermal Overload
Protector v
Water Level
Controller, Thermal Fuse and Bimetal Thermostat v
Software Development v
5-DN Series v
1-Shot Thermal Cut
Offs v
1-DN Single Phase
Thermal Overload Protectors v
Electronic Water Level
Controller v
6-DN Series v
7-DN Series v
8-DN Series |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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OLP Single Phase |
Nos. |
6000000.00 |
3293471.00 |
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OLP Three Phase |
Nos. |
3600000.00 |
0.00 |
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OLP Refrigeration |
Nos. |
600000.00 |
0.00 |
GENERAL INFORMATION
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No. of Employees : |
180 |
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Bankers : |
Ř
Bank of India Ř
Co-operative Bank of
Ahmedabad Limited Ř
HDFC Bank Limited |
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Facilities : |
[figures are in Rupees Millions]
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Banking Relations : |
-- |
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Auditors : |
D. Kothary & Company Chartered Accountants,
Mumbai |
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Associates : |
v
Continental Softech
Limited v
DMS Graphics &
Components v
Navira Finance &
Investments Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
9150000 |
Equity Shares |
Rs. 10/- |
Rs.91.500 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
8842512 |
Equity Shares |
Rs. 10/- |
Rs.88.425 |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
88.425 |
88.425 |
88.425 |
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2] Reserves &
Surplus/(Accumulated Losses) |
11.874 |
11.242 |
12.092 |
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NETWORTH
|
100.299 |
99.667 |
100.517 |
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LOAN FUNDS |
|
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|
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|
1] Secured Loans |
5.152 |
3.114 |
0.122 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
5.152 |
3.114 |
0.122 |
|
|
DEFERRED TAX LIABILITIES |
2.164 |
1.984 |
1.838 |
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TOTAL
|
107.615 |
104.765 |
102.477 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
50.447 |
50.151 |
49.391 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
1.593 |
1.592 |
1.592 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
21.934 |
19.470 |
10.776 |
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Sundry Debtors
|
10.728 |
8.673 |
10.846 |
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Cash & Bank Balances
|
1.120 |
0.950 |
2.652 |
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Loans & Advances
|
30.812 |
29.387 |
31.502 |
Total Current Assets
|
64.594
|
58.480 |
55.776
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
9.157 |
6.129 |
6.138 |
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Provisions
|
2.041 |
1.716 |
0.796 |
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Total
Current Liabilities
|
11.198 |
7.845 |
6.934 |
Net Current Assets
|
53.396
|
50.635 |
48.842
|
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MISCELLANEOUS EXPENSES
|
2.179 |
2.387 |
2.652 |
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TOTAL
|
107.615 |
104.765 |
102.477 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
31.440 |
25.370 |
35.934 |
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Profit/(Loss) Before Tax
|
1.204 |
0.308 |
0.464 |
Provision for Taxation
|
0.504 |
0.285 |
0.166 |
Profit/(Loss) After Tax
|
0.700 |
0.023 |
0.298 |
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Export Value
|
13.648 |
10.412 |
10.432 |
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Import Value
|
4.156 |
6.161 |
5.267 |
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Total Expenditure
|
30.236 |
25.062 |
35.469 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
30.12.2006 |
|
Sales
Turnover |
6.900 |
5.300 |
7.800 |
|
Other
Income |
0.200 |
0.200 |
0.200 |
|
Total
Income |
7.100 |
5.500 |
8.000 |
|
Total
Expenditure |
5.300 |
4.200 |
6.600 |
|
Operating
Profit |
1.800 |
1.300 |
1.400 |
|
Interest |
0.200 |
0.200 |
0.300 |
|
Gross
Profit |
1.600 |
1.100 |
1.100 |
|
Depreciation |
1.200 |
1.200 |
1.800 |
|
Tax |
0.100 |
0.100 |
0.100 |
|
Reported
PAT |
0.300 |
(0.200) |
(0.800) |
200606 Quarter 1
Notes
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs 0.975 million Consumption of Raw Materials Rs 1.943 million Staff Cost Rs
0.548 million Other Expenditure Rs 1.910 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter Nil Complaints disposed off during the quarter Nil Complaints
unresolved at the end of the quarter Nil 1. The results for the quarter ended
June 30, 2006 which have been subjected to the audit by the Auditors of the
Company were reviewed by the Audit Committee and taken on records by the Board
of Directors at the meeting held on July 27, 2006. 2. The figures of the
previous year have been regrouped / rearranged wherever considered necessary.
3. The business of the Company has been divided into three Segments: a)
Electrical Division - I (Manufacturing Unit) i.e. Thermal Overload Protector.
b) Electrical Division - II (Manufacturing Unit) i.e. Thermal Fuse &
Bi-metal Thermostat Water Level controller. c) Software Division - Dealing in
software development. 4. Electrical Division II is yet to commence the
commercial production.
200609 Quarter 2
Notes
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs 0.716 million Consumption of Raw Materials Rs 1.249 million Staff Cost Rs
0.727 million Other Expenditure Rs 1.598 million Tax indicates Fringe Benefit
Tax EPS is Basic and Diluted Status f Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter Nil Complaints disposed off during the
quarter Nil Complaints unresolved at the end of the quarter Nil 1. The results
for the quarter ended September 30, 2006 which have been subjected to the audit
by the Auditors of the Company were reviewed by the Audit Committee and taken
on records by the Board of Directors at the meeting held on October 31, 2006.
2. The figures of the previous year have been regrouped / rearranged wherever
considered necessary. 3. The business of the Company has been divided into
three Segments: a) Electrical Division - I (Manufacturing Unit) i.e. Thermal
Overload Protector. b) Electrical Division - II (Manufacturing Unit) i.e.
Thermal Fuse & Bi-metal Thermostat Water Level controller. c) Software
Division - Dealing in software development. 4. Electrical Division II is yet to
commence the commercial production.
200612 Quarter 3
Notes
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs 0.403 million Consumption of Raw Materials Rs 3.943 million Staff Cost Rs
0.834 million Other Expenditure Rs 1.451 million Tax indicates Fringe Benefit
Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter
ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter Nil Complaints disposed off during the
quarter Nil Complaints unresolved at the end of the quarter Nil 1. The results
for the quarter ended December 31, 2006 which have been subjected to the audit
by the Auditors of the Company were reviewed by the Audit Committee and taken
on records by the Board of Directors at the meeting held on January 31, 2007.
2. The figures of the previous year have been regrouped / rearranged wherever
considered necessary. 3. The business of the Company has been divided into
three Segments: a) Electrical Division - I (Manufacturing Unit) i.e. Thermal
Overload Protector. b) Electrical Division - II (Manufacturing Unit) i.e.
Thermal Fuse & Bi-metal Thermostat Water Level controller. c) Software
Division - Dealing in software development. 4. Electrical Division II is yet to
commence the commercial production.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.04 |
0.02 |
0.00 |
|
Long
Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
3.97 |
5.24 |
5.70 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.45 |
0.31 |
0.65 |
|
Inventory
|
1.59 |
1.41 |
4.00 |
|
Debtors |
3.40 |
2.19 |
3.22 |
|
Interest
Cover Ratio |
2.20 |
3.00 |
1.57 |
|
Operating
Profit Margin (%) |
20.61 |
23.83 |
13.21 |
|
Profit
Before Interest and Tax Margin (%) |
6.67 |
4.21 |
2.85 |
|
Cash
Profit Margin (%) |
16.06 |
19.63 |
11.14 |
|
Adjusted
Net Profit Margin (%) |
2.12 |
0.00 |
0.78 |
|
Return
on Capital Employed (%) |
2.16 |
0.91 |
1.15 |
|
Return
on Net Worth (%) |
0.70 |
0.00 |
0.31 |
STOCK PRICES
|
Face Value |
Rs.
10/- |
|
High |
Rs.
3.54/- |
|
Low |
Rs.
3.45/- |
LOCAL AGENCY FURTHER INFORMATION
Subject
is a flagship company of the Krishna Group and they are leading manufacturers
of Electrical Protection and Control devices.
Subjects fixed assets of important value includes Air Conditioner, Computer, Card Punching Machine, Elec. Installation, Factory Premises, Furniture and Fixtures, Land Factory, Land Quarters, Mobile Phones, Pager, Plant and Machinery, Office Equipments, Intercom Service, Water Cooler, Motor Car and Vehicles.
Operational Review:
The fiscal 2005-06 was the satisfying year in comparison to
last year performance, apart from recording 52.50 % increase in sales,
Operating profit before interest, depreciation and taxes also shows an upward
trend, standing to Rs.6.341 Millions as compared to Rs. 4.832 Millions
in the last financial year, reporting growth of 31.23 %. Total Sales and other
operating income has been Rs. 31.440 Millions as compared to Rs. 25.370
Millions in the last financial year.
Despite stiff competition the company has been able to
maintain its export earning at Rs. 13.648 Millions as compared to Rs. 8.863
Millions last year.
Management Analysis
and Review Report
Subject one amongst the few companies into the manufacturing
of Thermal Overload Protectors have carried out a niche for themselves in this
particular of the engineering industry. The management of the company vests in
the Board comprising of personnel with more than over a decade of hands-on
industry experience. The day to day affairs are being managed by a team of
experienced and qualified professionals.
The company always strives to achieve optimum performance at
all levels by adhering to corporate governance practices which rests upon the
four pillars of: transparency, disclosure, independent monitoring and fairness
to all.
Subject always strived to promote good governance practices,
which ensures that : A Competent management team is at the helm of affairs.
The Board is strong with an optimum combination of Executive
and Non-Executive directors, who represent the interest of all stakeholders.
The Board effectively takes all key corporate decisions and is effectively in
control of the company affairs.
The management and employees have a stable environment. The
Indian economy has been gathering pace and is now one of the fastest growing
economies in the world. Performance of the corporate sector has improved.
Despite the sharp price erosion and stiff competition the company has been able
to increase its total revenue Rs. 31.51 million as against the corresponding
figure of Rs. 25.37 million in earlier year showing an increase of almost 24.2
%.
The Company also maintained its export sales to Rs. 13.65
million as compared to the last year figures of Rs. 8.87 million and the profit
after tax has increased from Rs. 0.2 million to Rs. 0.63 million. The sales of
the software has shown an downward trend and the same has fallen to Rs. 1.84
million as against last year figure of Rs. 2.94 million.
With the positive economic environment, the company is
positioning itself to reach greater heights with increase in production of all
its product groups. Continuous R & D initiatives have shown improvement in
quality and in the introduction of new products. However, with the unorganized
players in the Indian Market, more particularly in the small-scale sector,
prices have been under constant pressure resulting in lower realization. This
threat is being effectively met by constant product up gradation, cost reduction,
avoidance of waste and going for high value component.
General Body Meetings
There were no special resolutions passed by the company
through postal ballot during the year ended 31.03.2006. At the ensuring Annual
General Meeting, there are no resolutions proposed to be passed through postal
ballot.
No Extra ordinary General Meeting were held during the
Financial Year 2005-06
Website Details :
Subject, the flagship company of Krishna Group,
is a Joint Stock Company incorporated on 02.03.1995 under the Companies Act of
1956. The shares of the companies are listed at Bombay and Ahmedabad Stock
Exchanges.
Today, the Company is the leading manufacturer of Electrical Protection and
Control devices in Asia. Their products are designed to protect equipments and
appliances against fire and damage and also to provide safety to the user.
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.44.18 |
|
UK Pound |
1 |
Rs.86.36 |
|
Euro |
1 |
Rs.57.54 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
20 |
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 |