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MIRA INFORM REPORT
|
Report
Date : |
22.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
RALSON (INDIA) LIMITED |
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Registered
Office : |
J 38 Udyog Nagar, Rohtak Road, Delhi-110041 |
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Country
: |
India |
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Financial
(as on) : |
31-03-2005 |
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Date
of Incorporation : |
01-01-1996 |
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Com.
Reg. No.: |
55-42836 |
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CIN
No.: [Company Identification No.] |
U51909DL1974PLC042836 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
DELR05554D |
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Legal
Form : |
A closely held public limited liability company. |
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Line
of Business : |
Manufacturers and Exporters of Tyres and Tubes |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD 2250000 |
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Status
: |
Good |
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Payment
Behaviour : |
Usually
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established company having fine track.
Directors are reported as experienced, respectable and resourceful
industrialists. Their trade relations are fair. A financial position is good.
Payments are usually correct and as per commitments. The company can be considered good for normal business
dealings. It can be considered as a promising business partner in a medium to
long run. |
LOCATIONS
|
Registered
Office : |
J 38 Udyog Nagar, Rohtak Road, Delhi-110041 |
|
Tel.
No.: |
91-11-25473917/25473918 |
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Fax
No.: |
91-11-25473918/25473735 |
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E-Mail
: |
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Area : |
10 acres |
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Factory
1 : |
Ralson
Nagar, GT Road, Ludhiana-141003, Punjab, India |
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Tel.
No.: |
91-161-2511501 to 2511510 |
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Fax
No.: |
91-161-2511511, 2511512 upto 510 |
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E-Mail
: |
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|
Website
: |
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Area : |
10 acres |
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Factory
2 : |
J 38 Udyog Nagar, Rohtak Road, Delhi-110041 |
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Tel.
No.: |
91-11-25473917 |
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Fax
No.: |
91-11-25473735 |
DIRECTORS
|
Name : |
Mr. Sanjeev Pahwa |
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Designation
: |
Director |
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|
Name : |
Mr. Krishna Rani |
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Designation
: |
Director |
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Name : |
Dr. M.A. Zahir |
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Designation
: |
Director |
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Name : |
Mrs. Priyanka Arora |
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Designation
: |
Director |
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Name : |
Mrs. Rachna Pahwa |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. Deepak Jain |
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Designation
: |
Company Secretary |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers and Exporters of Tyres and Tubes |
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|
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Products
: |
Tyres and Tubes |
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|
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Brand
Names : |
‘RALCO’ |
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Exports
to : |
Tyres and Tubes for cycle and rickshaw to UAE, Saudi
Arabia, Bangladesh, Srilanka and Europe |
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Imports
from : |
Raw Chemicals and Materials from Japan, Germany, Korea and
china |
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Terms
: |
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Selling : |
L/C, Cash and Credit at sight |
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Purchasing : |
L/C and Credit (30 days) |
PRODUCTION STATUS
|
Particulars |
|
|
Licensed Capacity |
Installed Capacity |
|
Tyres and
Tubes and Hub and Acc, (Cycle) |
|
|
NA |
NA |
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Auto
Tyres |
|
|
NA |
1500 per day |
GENERAL INFORMATION
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No. of
Employees : |
800 |
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|
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Bankers
: |
Ø State Bank of India, Miller Ganj,
Ludhiana-141003 Ø State Bank of Patiala, Miller
Ganj, Ludhiana-141003 Ø Corporation Bank, SCO-34, Feroze
Gandhi Market, Pakhowal Road, Ludhiana-141003 Ø Punjab National Bank, Dhandari
Kalan, Ludhiana-141003 |
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|
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Banking Relations : |
Satisfactory |
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Auditors
: |
Dass Khanna and Company Chartered Accountants B-XX-711, 1st Floor, Gurdev Nagar, Pakhowal
Road, Ludhiana-141001 |
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Associates/Subsidiaries
: |
Ø Ralco Enterprises Ralcon Exports Trading and Expor |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
21000000 |
Equity Shares |
Rs. 10/- each |
Rs. 210.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
4106100 |
Equity Shares |
Rs. 10/- each |
Rs. 41.061 millions |
|
|
|
|
|
|
428630 |
Equity Shares |
Rs. 10/- each |
Rs. 4.286 Millions |
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Total |
|
Rs. 45.347 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
45.347 |
41.061 |
|
|
2] Share
Application Money |
|
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
|
548.567 |
397.469 |
|
|
4]
(Accumulated Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
593.914 |
438.530 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
286.858 |
238.041 |
|
|
2]
Unsecured Loans |
|
81.476 |
66.368 |
|
TOTAL
BORROWING
|
|
368.334 |
304.409 |
|
|
DEFERRED
TAX LIABILITIES |
|
21.390 |
2.972 |
|
|
|
|
|
|
|
TOTAL
|
|
983.638 |
745.909 |
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|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
|
359.452 |
200.037 |
|
Capital work-in-progress
|
|
20.065 |
14.406 |
|
|
|
|
|
|
|
INVESTMENT
|
|
1.687 |
17.787 |
|
DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
340.676 |
274.965 |
|
|
Sundry Debtors
|
|
509.706 |
400.462 |
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|
Cash & Bank Balances
|
|
8.689 |
18.042 |
|
|
Other Current Assets
|
|
0.000 |
0.000 |
|
|
Loans & Advances
|
|
96.726 |
118.150 |
Total Current Assets
|
|
955.797 |
811.619 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
353.659 |
297.942 |
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|
Provisions
|
|
|
|
Total Current Liabilities
|
|
353.659 |
297.942 |
|
Net
Current Assets
|
|
602.138 |
513.677 |
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES
|
|
0.296 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
983.638 |
745.907 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
|
2453.511 |
250.552 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
124.575 |
244.485 |
Provision for Taxation
|
|
47.501 |
228.050 |
Profit/(Loss) After Tax
|
|
77.074 |
16.435 |
|
|
|
|
|
Export Value
|
|
40.277 |
55.714 |
|
|
|
|
|
Import Value
|
|
217.775 |
45.118 |
|
|
|
|
|
Total Expenditure
|
|
2628.935 |
2481.076 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
3.14 |
6.56 |
|
|
|
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|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
5.08 |
97.58 |
|
|
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|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
9.47 |
24.17 |
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|
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|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.21 |
0.56 |
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|
|
|
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|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
1.22 |
1.37 |
|
|
|
|
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|
Current Ratio
(Current
Asset/Current Liability) |
|
|
2.70 |
2.72 |
LOCAL AGENCY FURTHER INFORMATION
TRADE REFERENCES
Ø Atlas Cycle Industries Limited,
Sonepat
Ø Hero Cycle Limited, Ludhiana
Ø A one Cycle Limited, Ludhiana
Ø Nahar Exports Limited, Ludhiana
SCHEME OF AMALGAMATION OF RAM LUBHYA AND SONS LIMITED WITH
RALSON India LIMITED
During the year a scheme
of amalgamation of Ram Lubhaya and Sons Limited (RLSL) with Ralson (India)
Limited (RIL) was formulated. The scheme was approved by Creditors and members
of the respective companies and the same was got sanctioned by the Honble High
Court of Delhi and Honble high Court of Punjab and Haryana at Chandigarah vide
their orders dated 28/10/2005 and 10/11/2005 respectively. As per the scheme
Ram, Lubhaya and sons Limited stands
vested with the company w.e.f. 01-01-2005. This is expected to enhance the
shareholders values and will improve the competitiveness of amalgamated entity.
PERFORMANCE REVIEWE
Cycle Division
During the financial year ended March 31, 2005 company’s
Cycle Division achieved salsas of Rs. 2696.179 millions against Rs. 2508.052
millions during the previous year, registering a growth of 7.50 %. Sales of
auto division during three months ended March 31, 2005 was Rs. 24.166 millions.
Operating profit before interest and depreciations amounted to Rs. 202.390
millions as against Rs. 104.737 millions during the previous year, Net profit
after providing for interest depreciation and current and deferred tax amounted
to Rs. 77.075 millions as against Rs. 16.436 millions during the previous
years.
AS PER WEBSITE
With professional expertise and thoroughness in every operation, Ralson today stands tall as India's largest company in the field of bicycle & Automobile tyres, tubes and bicycle components. Ralson is the first and only Bicycle Tyre manufacturer in India to be accredited with an ISO 9001 Certification. Led from the front by Mr. Sanjeev Pahwa, Chairman-Cum-Director, Ralson is taping the full potential of booming global market and the promising domestic scenario. Company's turnover has shot up from US $ 65.27 m in 2004 surpassing the industry's annual growth rate.
Nothing But the Best Ralson's Quality
They aim to achieve not
just customer satisfaction but customer delight. The customer's joy in its products
is the ultimate measure of success. Total quality is its overriding concern. It
is both a goal and a path, as they strive for continuous quality improvement.
Sophisticated controls are used to ensure that the end products meet the
highest quality standards.
Rich Variety : Ralson's Range
Expect nothing but the widest
possible range of tyres (Nylon & Cotton, Coloured, Gumwall, White wall
& Black), tubes (Natural & Butyl rubber) and components from us. The
consistent quality and rich variety of their product range ensures that they
always meet customer aspirations. Their proactive R & D department fuels
momentum for growth by continuously developing newer sizes and designs.
Modernization and Expansion : Ralson Vision
Inherent dynamism,
spirit of enterprise and an all encompassing vision has helped us to initiate
many new high growth activities. The company has set up a separate plant for
automobile tyre.
A major expansion activity is afoot in
company's tyre plant also to enhance the production capacity.
World to conquer : Ralson Exports
They have taken up the
challenge of delivering quality tyres, tubes and components to demanding
markets abroad. They are all set to repeat in the international market the
success they have enjoyed in the domestic market. Already they have made their
presence felt in Europe, South & Central America, South East Asia, Gulf,
Middle East & Africa.
Ralson has rather been successful in creating a brand image of
quality, innovation and workmanship.
Ralson Auto Tyres, being introduced recently in the market, are being
manufactured at Doraha near Ludhiana in a state-of-the-art plant. The Company
is presently concentrating on manufacturing of Moped, Scooter, Motorcycle,
Three wheeler & LCV tyres. Rubber compounds of Ralson auto tyres have
been developed keeping durability, grip & ruggedness in mind. So the
riders can race or ride on Ralson Tyres confidently both on & off-road.
Ralson Auto Tyres have successfully cleared the quality test at Central
Institute of Road Transport, Pune. During actual use, they will last as long as
the best brands available in tyre market in India. Ralson Tyres are being
supplied as original equipment in coveted scooter, moped & motorcycle
brands.
Ralson will strive forward into the future with confidence to
accomplish it's goal of providing range of tyres at affordable price &
continue to expand it's production facility & thereby in winning confidence
of the users.
Ralson
has taken up the challenge in delivering quality tyres, tubes and components to
demanding markets abroad. They have already made their presence felt in the
various countries of Africa, Gulf, Latin America and South Asia. Ralson's
outstanding performance in export has also been lauded by Government of INDIA
by way of the CAPEXIL TOP EXPORTS AWARDS.
Ralson products are not sought after by overseas buyers for their price, rather
Ralson has been successful in creating a brand image of quality,
innovation and workmanship. Ralson has an unmatched capability to custom
make tyres, tubes and components for its overseas buyers.
Quality Control
Largest Product Range
Ralson offers the widest range
of MTB, ATB & BMX tyres in Nylon or cotton cord, in black, colored,
white-wall, skin wall or gum wall. Similarly, it offers tubes made of Butyl or
Natural Rubber in as many sizes as goes the range of its tyres with various
types of Valves.
Market Leader In
India
Ralson accounts for the
highest share of bicycle tyre/tube replacement market in India. It is also most
favoured tyre brand of Hero, Avon, TI & Atlas - all prominent bicycle
manufacturers of India.
Globally
Accepted Quality
Ralson tyres and tubes are exported to countries of Europe,
South and Central America, Africa, Middle-East, Gulf and Far-East. Ralson's
outstanding performance in exports has won it Government of India, CAPEXIL Top
Export Awards.
Most
Sophisticated R & D
Ralson has the most
sophisticated and best equipped R&D set-up in cycle tyre industry in India
to develop new materials, sizes & designs of company's product. This
R&D set-up enjoys the recognition of Department of Science &
Technology, Govt. of India.
Diversification
Plan
Ralson is now vigorously
implementing a diversification plan to manufacture Automobile tyres for Two
Wheelers. It has set-up a separate plant to manufacture Moped, Scooter and
Motor- Cycle tyres. These products have been launched recently.
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. 44.28 |
|
UK Pound |
1 |
Rs. 86.64 |
|
Euro |
1 |
Rs. 58.10 |
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 |
NO |
|
--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 |
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 |