MIRA INFORM REPORT
|
Report
Date : |
09.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
RATHI GRAPHIC TECHNOLOGIES LIMITED |
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Registered
Office : |
A-3, Industrial Area, Ispat
Nagar, South of G. T. Road, Ghaziabad 201 009, Uttar Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
02.12.1991 |
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Com.
Reg. No.: |
20-13770 |
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CIN
No.: [Company
Identification No.] |
L26960UP1991PLC013770 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MRTR00280A |
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PAN
No.: [Permanent
Account No.] |
AAACR3276L |
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Legal
Form : |
A public limited liability company. The company’s shares are listed on the Stock Exchange. |
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Line
of Business : |
Manufacturer of Toner and Developer for Photocopier |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum
Credit Limit : |
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Status
: |
Moderate |
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Payment
Behaviour : |
Slow and
Delayed |
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Litigation
: |
Clear |
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Comments
: |
Subject has improved it’s performance and wiped out
previous losses. The company is no more a sick unit. Trade relations are
fair. Payments are slow and delayed. The company can be considered for small to mediocre
business dealing at usual trade terms and conditions, only. |
LOCATIONS
|
Registered
Office : |
A-3, Industrial Area, Ispat
Nagar, South of G. T. Road, Ghaziabad- 201 009, Uttar Pradesh,
India |
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Tel
No.: |
91-120-2840346-51 |
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Fax
No.: |
91-120-2840352/2840353 |
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Corporate
Office / Marketing office : |
1/3,
Khirki Village, Malviya Nagar, New Delhi-110 017 |
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Tel.
No.: |
91-11-29541733 / 29542734 |
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Email
: |
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Website
: |
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Factory
1 : |
SP-921, RIICO Industrial Area, Phase - III, Bhiwadi,
Distt. Alwar, Rajasthan, India |
DIRECTORS
|
Name : |
Mr. Raj Kumar Rathi |
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Designation
: |
Managing Director |
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Name : |
Mr. Ken
White |
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Designation
: |
Director |
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Name : |
Dr. R. K. Gulati |
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Designation
: |
Director |
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Name : |
Mr. Vinod Somarti |
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Designation
: |
Director |
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Name : |
Mr. Sandesh Jain |
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Designation
: |
Director |
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Name : |
Mr. Adarsh Kumar Aggarwal |
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Designation
: |
Director |
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Name : |
Mr. Anurag Yadav |
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Designation
: |
Director |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters & Group Companies |
6699455 |
53.198 |
|
Collaborator / NRI / OCBs / Flls,
Financial Institution / banks |
2795101 |
22.195 |
|
Public |
2768741 |
33.846 |
|
Body Corporate |
329903 |
2.620 |
|
Total |
12593200 |
100.000 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Toner and Developer for Photocopier |
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|
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Product
: |
Toner
for Photocopier Developer
for Photocopier |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Toners |
Kg. |
330000 |
330000 |
213625.203 |
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Developers |
Kg. |
100000 |
100000 |
3206.60 |
GENERAL INFORMATION
|
No. of
Employees : |
70 |
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Bankers
: |
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Facilities : |
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Banking Relations : |
Unknown |
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Auditors
: |
A. K.
Maheshwari & Associates Chartered
Accountants |
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Address
: |
1207, Rohit House, Connaught
Place, New Delhi-110 001 |
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Associates/Subsidiaries
: |
·
Rathi
Udyog Limited ·
Rathi
Ispat Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
14000000 |
Equity Shares |
Rs. 10/- each |
Rs. 140.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12593200 |
Equity Shares |
Rs. 10/- each |
Rs. 125.932 millions |
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 |
125.932 |
88.176 |
88.176 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4]
(Accumulated Losses) |
[42.135] |
[46.410] |
(50.162) |
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NETWORTH
|
83.797 |
41.766 |
38.014 |
|
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LOAN
FUNDS |
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|
|
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1]
Secured Loans |
51.574 |
39.084 |
63.663 |
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2]
Unsecured Loans |
4.745 |
65.425 |
48.300 |
|
TOTAL
BORROWING
|
56.319 |
104.509 |
111.963 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
140.116 |
146.275 |
149.977 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
58.648 |
63.047 |
66.933 |
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Capital work-in-progress
|
0.123 |
0.000 |
0.000 |
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INVESTMENT
|
0.000 |
0.000 |
0.668 |
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DEFERREX TAX ASSETS
|
20.274 |
23.352 |
25.874 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
32.364
|
33.234 |
26.916 |
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Sundry Debtors
|
34.044
|
30.396 |
31.398 |
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Cash & Bank Balances
|
3.184
|
2.212 |
6.189 |
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Other Current Assets
|
0.000
|
0.000 |
0.000 |
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Loans & Advances
|
5.956
|
4.693 |
5.226 |
Total Current Assets
|
75.548
|
70.535 |
69.729 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
14.113
|
10.223 |
14.065 |
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Provisions
|
0.518
|
0.611 |
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Total Current Liabilities
|
14.631
|
10.834 |
14.065 |
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Net
Current Assets
|
60.917
|
59.701 |
55.664 |
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MISCELLANEOUS EXPENSES
|
0.154 |
0.175 |
0.838 |
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TOTAL
|
140.116 |
146.275 |
149.977 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
120.818 |
110.830 |
111.357 |
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Profit/(Loss) Before Tax
|
7.352 |
6.275 |
5.719 |
Provision for Taxation
|
3.078 |
2.522 |
0.597 |
Profit/(Loss) After Tax
|
4.274 |
3.753 |
5.122 |
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Import Value
|
39.606 |
36.116 |
24.226 |
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Total Expenditure
|
113.466 |
104.555 |
105.638 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
26.500 |
38.900 |
|
Other Income |
|
0.500 |
0.200 |
|
Total Income |
|
27.000 |
39.100 |
|
Total Expenditure |
|
22.500 |
31.300 |
|
Operating Profit |
|
4.500 |
7.800 |
|
Interest |
|
1.300 |
1.400 |
|
Gross Profit |
|
3.200 |
6.400 |
|
Depreciation |
|
1.200 |
1.200 |
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Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
2.000 |
5.200 |
200606
Quarter 1 –
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 company's operation comprises of only one segment i.e.
Toner & Developer and therefore Accounting Standard-17 relating to Segment
Reporting does not apply 2.The previous period figures have been regrouped /
rearranged wherever considered necessary. 3. The above results have been
reviewed by the Audit Committee and taken on record in the meeting of the Board
of Directors of the company held on July 29, 2006.
200609
Quarter 2 –
1. The Company's operations comprises of two
segments i. e Toner & Developer segment and steel trading segment. The
turnover of steel trading segment is less then 10% of total turnover hence no
segment report has been made, risk and returns of the Companies business is
primarily affected by toner and developers business segment only. 2. Investor
complaints during the 2nd quarter ended 30.09.2006 were Nil no of complaints
received and there were no investor complaints pending at the beginning as well
as at the end of the quarter. 3. The previous period figures have been
regrouped / rearranged wherever considered necessary. 4. The above results have
been reviewed by the Audit Committee and taken on record in meeting of the
Board of Directors of the Company held on 30.10.2006
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.28 |
2.71 |
3.15 |
|
Long Term
Debt Equity Ratio |
0.82 |
1.96 |
2.45 |
|
Current
Ratio |
2.08 |
1.90 |
2.20 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.11 |
0.99 |
1.02 |
|
Inventory
|
3.70 |
3.57 |
4.30 |
|
Debtors |
3.76 |
3.47 |
4.54 |
|
Interest
Cover Ratio |
2.88 |
2.43 |
1.65 |
|
Operating
Profit Margin (%) |
13.86 |
14.26 |
17.38 |
|
Profit
Before Interest and Tax Margin (%) |
9.98 |
9.97 |
13.19 |
|
Cash
Profit Margin (%) |
7.43 |
7.83 |
8.83 |
|
Adjusted
Net Profit Margin (%) |
3.55 |
3.54 |
4.64 |
|
Return on
Capital Employed (%) |
6.46 |
5.46 |
8.49 |
|
Return on
Net Worth (%) |
4.02 |
4.31 |
8.42 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 11.26/- |
|
Low |
Rs. 11.25/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated
in December, 1991 and obtained Certificate of Commencement of Business in July,
1992. Promoted by Rathi Ispat Limited and Rathii Udyog Limited headed by P.C.
Rathi and Associates.
The Company has an agreement with Raven Industries Inc. USA for grant of
technical know-how.
A project for the manufacture of toners and developers for reprographic purpose
with an installed capacity of 330 TPA and 160 TPA respectively. Toners and
developers are photo sensitive organic chemicals used in plane papers copiers
to get imprints. The total cost of the project estimated at Rs.143
Millions was to be met by equity
capital of Rs.115.6 Millions, Rs.70.0
Millions on rupee term loan from IDBI and Rs.1.5 Millions as State
subsidy. The plant started its commercial production in July, 1995.
During the year 1999-2000, the company has been awarded the prestigious ISO
9002 Certification of international repute for its quality management systems.
However in view of total erosion of its net worth, the company has been
declared sick by the BIFR and has appointed IDBI as its operating agency.
With the introduction of Laser Toner and improved quality of other toners, the
company would improve upon its performance in the coming years.
Financial Result
The directors are pleased to inform
you that the company has come out from the purview of SICA after successful
implementation of the Scheme formed by Hon'ble BIFR.
PERFORMANCE OF THE COMPANY
During
the year under review, the Company has achieved a turnover of Rs. 122.283
Millions against Rs. 107.457 Millions during the previous year, registering an
up ward growth by 14%. The Company has earned a profit of Rs. 7.352 Millions
during the year under review as against the profit of Rs. 6.275 Millions during
the previous period. This has been possible with our continuous efforts and
aggressive marketing strategy. The unorganised sector and cheap imports has
continuously been a threat to toner industry. Now the "Rathi Toner"
is a established and well known brand for users of Toner and Developers
throughout India. However there were pressures on margins.
FUTURE PROSPECTS
The
Company has introduced many new products during the year under review. Now the
demand of toner for digital copiers and laser printers is increasing day-by-day
The Company's thrust for quality improvement and introduction of new recipes
has come up in positive shape. Now the Rathi Toner brand is good in demand. The
future seems promising and the Company hopes to achieve better sales &
profit in current year.
FIXED ASSETS
The company’s fixed
assets of important value includes Lease Hold Land, Building, Plant and
Machinery, Electric Installation, Vehicle, Tubewell, Furniture and Fixtures,
Office Equipment, Computers and Tools and Dies.
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
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. 44.53 |
|
UK Pound |
1 |
Rs. 86.24 |
|
Euro |
1 |
Rs. 57.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT
LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
33 |
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 |