MIRA INFORM REPORT
|
Report
Date : |
24th
January, 2007 |
DENTIFICATION
DETAILS
|
Name : |
ROYAL CUSHION VINYL PRODUCTS LIMITED |
|
|
|
|
Registered
Office : |
Shree Kamdhenu Estate, 4th
Floor, Near Tangent Furniture Showroom, Off Link Road, Chincholi Bunder,
Malad (East), Mumbai – 400 064, Maharashtra, India |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
21.11.1983 |
|
|
|
|
Com.
Reg. No.: |
11-31395 |
|
|
|
|
CIN No.: [Company Identification No.] |
U24110MH1983PTC031395 |
|
|
|
|
Legal
Form : |
Public limited liability company. The company’s shares are listed on the
Stock Exchanges |
|
|
|
|
Line
of Business : |
Manufacturing and selling of floor coverings and other Poly Vinyl Chloride and/or polyurethane products. |
RATING & COMMENTS
|
MIRA’s
Rating : |
C |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |
|
Maximum
Credit Limit : |
-- |
|
|
|
|
Status
: |
Poor |
|
|
|
|
Payment
Behaviour : |
Delayed /
Defaulter |
|
|
|
|
Litigation
: |
Exist |
|
|
|
|
Comments
: |
The
company in particular and the group in general faces acute liquidity problem The
entire net worth of the company has been eroded. The company can be
considered for any business dealings on fully safe and secured trade terms
and conditions, only. The company has been referred to the Board for
Industrial and Financial Reconstruction
(BIFR) under Sec. 15(1) of the Sick Industrial companies (Special
Provisions) Act 1985 and BIFR vide their letter dated 14.06.2000 has
registered the said reference. |
LOCATIONS
|
Registered
Office : |
Shree kamdhenu Estate, 4th
Floor, Near Tangent Furniture Showroom, Off Link Road, Chincholi Bunder,
Malad (East), Mumbai – 400 064, Maharashtra, India |
|
Tel.
No. : |
91-22-40039110/40039111 |
|
Fax
No. : |
91-22-28773591 |
|
|
|
|
Factory
: |
Plot No.
319, Baska Village, Taluka Halol, Dist. Panchmahal, Gujarat, India |
DIRECTORS
|
Name : |
Mr. M. K.
Shah |
|
Designation
: |
Chairman
& Managing Director |
|
Qualification
: |
M.Sc. |
|
|
|
|
Name : |
Mr. V. K.
Shah |
|
Designation
: |
Executive
Director |
|
|
|
|
Name : |
Mr. A. V.
Motasha |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. D. A.
Motasha |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. M. A.
Motasha |
|
Designation
: |
Executive
Director |
|
|
|
|
Name : |
Mr. J. A.
Motasha |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. V. M.
Dahake |
|
Designation
: |
Nominee
I.D.B.I, (till 23.12.2004) |
|
|
|
|
|
|
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
(Including Foreign Promoters) |
7161313 |
59.34 |
|
Mutual
Fund & UTI |
6000 |
0.05 |
|
Banks,
Financial Institutions, etc. |
1576730 |
13.07 |
|
Private
Corporate Bodies |
477986 |
3.96 |
|
NRIs |
45916 |
0.38 |
|
Indian
Public |
2799267 |
23.20 |
|
Grand Total |
12067212 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and selling of floor coverings and other Poly Vinyl Chloride and/or polyurethane products. |
|
|
|
|
Products
: |
Item Code No. (ITC Code) Product Description 39181000 Cushion Vinyl Flooring 39204100 PVC Rigid Films 59031000 PVC Leathercloth |
|
|
|
|
Brand
Names : |
"Royal House". |
|
|
|
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Floor
Covering |
|
Lac. Sqm. |
220.00 |
0.00 |
|
PVC
Flooring |
|
Lac. Sqm. |
109.00 |
140.60 |
|
PVC Regid
Film |
|
MT |
10,000 |
201.25 |
|
Leather
Cloth |
|
Lac. LM |
30.00 |
0.61 |
|
|
|
|
|
|
GENERAL INFORMATION
|
No. of
Employees : |
1100 |
||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Bankers
: |
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
SECURED LOANS (Rs. In millions)
|
|
|
|
|
Banking Relations : |
Poor |
|
|
|
|
Auditors
: |
Ø
Chandrakant
and Sevantilal Chartered Accountants Ø
J.
K. Shah and Company Chartered Accountants 301, Lalita Tower, Near Hotel Rajpath,
Station-Akota Road, Vadodara – 390007, Gujarat, India |
|
Tel.
No.: |
91-265- 235 3043 / 235 3470 |
|
|
|
|
Associates
: |
- Akruli, Kandivli (East) Mumbai -
400 101, Maharashtra - Manufacturers of ‘Royal Touch’ brand synthetic Leathers Ø
Royal
Knitting Private Limited Ø
Vinyroyal
Plasticoats Limited Ø
Auto
Interiors India Private Limited Ø
Vijayjyot
Seats Limited Ø
Royal
Spinwell Private Limited Ø
Royal
Jerfeb Private Limited Ø
Bharat
Motor Accessories Ø
Nityanand
Overseas Trading Ø
Royal
Wellknit Private Limited Ø
Shreedha
Trading Consultancy Private Limited Ø
Trilokesh
Trading Private Limited Ø
Shreeshah
Trading Company Private Limited Ø
Vishwamurthy
Trading Company Private Limited Ø
Sumukh
Trading and Consultancy Services Private Limited Ø
M V
Trust Properties |
|
|
|
|
Subsidiaries
: |
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
30,000,000 |
Equity
Shares |
Rs. 10/- |
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12,067,212 |
Equity
Shares |
Rs. 10/- |
Rs. 120.672 millions |
|
|
Share
Application Money |
|
Rs. 62.315 millions |
|
|
Total |
|
Rs. 182.987 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
182.987 |
146.437 |
120.672 |
|
|
2]
Reserves & Surplus |
728.408 |
728.408 |
728.408 |
|
|
3]
(Accumulated Losses) |
(3157.202) |
(2850.388) |
(2457.418) |
|
NETWORTH
|
(2245.807) |
(1975.543) |
(1608.338) |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
1692.124 |
1653.829 |
1508.551 |
|
|
2] Unsecured
Loans |
433.236 |
363.159 |
363.031 |
|
TOTAL
BORROWING
|
2125.360 |
2016.988 |
1871.582 |
|
|
|
|
|
|
|
TOTAL
|
(120.447) |
41.445 |
263.244 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
927.984 |
1007.017 |
1079.515 |
|
Capital work-in-progress
|
33.921 |
11.881 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
2.070 |
3.309 |
2.220 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
185.244
|
102.222
|
96.212 |
|
|
Sundry Debtors
|
57.927
|
91.040
|
66.134 |
|
|
Cash & Bank Balances
|
8.634
|
13.914
|
12.946 |
|
|
Other Current Assets
|
32.854
|
8.603
|
8.797 |
|
|
Loans & Advances
|
50.206
|
56.551
|
36.239 |
Total Current Assets
|
334.865
|
272.330
|
220.328 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
954.257
|
836.936
|
645.133 |
|
|
Provisions
|
471.064
|
432.871
|
393.686 |
Total Current Liabilities
|
1425.321
|
1269.807
|
1038.819 |
|
Net
Current Assets
|
(1090.456)
|
(997.471)
|
(818.491) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
6.034 |
16.709 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
(120.447) |
41.445 |
263.243 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
952.214 |
817.270 |
638.713 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
(303.546) |
(388.310) |
[369.525] |
Provision for Taxation
|
1.100 |
0.095 |
0.019 |
Profit/(Loss) After Tax
|
(304.646) |
(388.405) |
[369.544] |
|
|
|
|
|
Import Value
|
431.302 |
320.628 |
161.150 |
|
|
|
|
|
Total Expenditure
|
1255.761 |
1205.580 |
1008.234 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.09.2006 |
30.06.2006 |
|
Type |
|
2nd Qtr |
1st Qtr |
|
Sales Turnover |
|
139.000 |
164.100 |
|
Other Income |
|
24.100 |
0.000 |
|
Total Income |
|
163.100 |
164.100 |
|
Total Expenditure |
|
171.900 |
185.100 |
|
Operating Profit |
|
(8.800) |
(21.000) |
|
Interest |
|
94.300 |
71.900 |
|
Gross Profit |
|
(103.100) |
(92.900) |
|
Depreciation |
|
12.600 |
26.500 |
|
Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
(115.700) |
(119.400) |
200606 Quarter 1 :-- Expenditure includes (Increase)/ Decrease in stock in Trade Rs
(29.600) million Consumption of Raw Material Rs 136.720 million Staff Cost Rs
12.035 million Manufacturing Cost Rs 30.768 million Selling and Administration
Cost Rs 11.124 million.
200609 Quarter 2 :-- Expenditure includes
(Increase)/Decrease in stock in Trade Rs (19.333)million Consumption of Raw
Material Rs 138.660 million Staff Cost Rs 10.660 million Manufacturing Cost Rs
31.232 million Selling & Administration Cost Rs 9.950 million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.16 |
0.15 |
0.14 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.42 |
0.49 |
0.41 |
|
Inventory |
5.01 |
8.59 |
7.75 |
|
Debtors |
9.66 |
10.85 |
11.48 |
|
Interest Cover Ratio |
0.16 |
-0.17 |
-0.19 |
|
Operating Profit Margin(%) |
19.21 |
2.83 |
2.75 |
|
Profit Before Interest And Tax Margin(%) |
8.16 |
-6.47 |
-8.41 |
|
Cash Profit Margin(%) |
(31.29) |
-36.28 |
-40.98 |
|
Adjusted Net Profit Margin(%) |
(42.33) |
-45.58 |
-52.14 |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. (0.01) |
|
Low |
Rs. (0.01) |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 21st November, 1983 at Mumbai in
Maharashtra as a private limited liability company
having Company Registration Number 31395. It became a Deemed Public
Limited
company with effect from 1/7/1988.
It was
promoted by the Shah and Motasha families.
The company’s factory at Baska [Halol], Gujarat, manufactures and
markets cushion vinyl floorings with emphasis on multi-colour combinations,
contemporary designs and additional properties like sound insulation and
varying thickness for temperature differentiation.
The
company’s expansion of production capacity from 4.4 million sq. mtr to 8.8
million sq. mtr. Pa [cost: Rs. 80 million] commenced operations from September,
1995. Its diversification into the
manufacture of PVC calender products [cost : Rs. 540 million] has started
operations. It comprises 2 calender
lines, both with different configurations, to produce versatile quality PVC
calender products with a capacity of 10000 tpa for each line.
The company
made a rights issue of zero-interest FCDs for cash at par in May, 1995 to
augment the long-term working capital for the calender line at Savli and the
printing line at the Halol project. The
company obtained ISO-9002 certification in 1997 for its plant for manufacturing
2 metre width Cushion Vinyl Flooring [CVF].
Company installed and commissioned new machineries, which was imported
from Germany for producing 3-4 mtr. Cushion vinyl flooring at Garadhia.
In view of
the accumulated losses the company made a reference of the BIFR for determining
the measures to be adopted for revival of the company. The Board has appointed IDBI as the
operating agency and the appraisal is in progress. The company is planning to double the production for export
market.
Subject was promoted by the Shah and Motasha
families. The company's factory at Baska (Halol), Gujarat, manufactures and
markets cushion vinyl floorings with emphasis on multi-colour combinations,
contemporary designs and additional properties like sound insulation, and
varying thicknesses for temperature differentiation.
The company's expansion of production capacity from 44 lac sq mtr to 88
lac sq mtr pa (cost: 8 cr) commenced operations from Sep'95. Its
diversification into the manufacture of PVC calender products (cost: Rs 54 cr)
has started operations. It comprises 2 calender lines, both with different
configurations, to produce versatile quality PVC calender products with a
capacity of 10,000 tpa for each line.
The company made a rights issue of zero-interest FCDs for cash at par in
May '95 to augment the long-term working capital for the calender line at Savli
and the printing line at the Halol project. The company obtained ISO-9002
certification in 1997 for its plant for manufacturing 2 metre width Cushion
Vinyl Flooring (CVF). Company installed & Commissioned new machineries,
which was imported from Germany for producing 3-4 Mtr. Cushion Vinyl Flooring
(CVF) at Garadhia.
In view of the accumulated losses the company made a reference to the
BIFR for determining the measures to be adopted for revival of the company. The
Board has appointed IDBI as the operating agency and the appraisal in in
progress. Since the future for this very bright the company is planning to
double the production for export market.
PERFORMANCE:
The company has achieved turnover of Rs. 691.910 millions as against Rs.
802.184 millions in previous year. The turnover was affected mainly due to
lower sales price realization per meter in local market. The pressure on sale
price was on account of introduction of VAT and stiff competition. The
production was affected due to the trial run taken during the year to develop
new products. Further, the high raw material cost due to increase in crude has
also affected profit margins.
During the year company entered into a One Time Settlement (OTS) with
Union Bank of India (UBI) where all liabilities were settled at Rs. 100.000
millions. The last installments pursuant to above OTS was made in the month of
July 2006 and excess provision to the extent of Rs. 254.000 millions was written
back during the year under review and included in other income. Further, due to
finalization of Arbitration petition filed against Herbert Olbrich, GmbH and
Co., KG (Germany) in ICC International Court of Arbitration , Paris, the
deferred revenue expenditure of Rs. 85.900 millions has been accounted during
the year under review.
INDUSTRY
STRUCTURE AND DEVELOPMENTS :
The Company
is primarily engaged in manufacturing of Vinyl floorings, which are used in
households and commercial offices, showromms and transport sector. The Industry
is characterized by a few domestic manufacturers of PVC floor tiles, and off
late importers. The demand for the floor tiles is expected to grow 15 to 20%
per annum, on account of the growth in the housing sector and as a substitute
to hard flooring.
OPPORTUNITIES
AND THREATS :
The Company
is a market leader in Vinyl Flooring segment. The consumption of high end Vinyl
Flooring has significantly improved due to shopping malls and growth in IT and
Health Care Sector. demand in transport flooring will also increase due to
improved road infrastructure. The threat at present as envisaged is mainly from
import of flooring products. The volatility of PVC supply and prices is also a
threat to managing cost of production.
SEGMENT
WISE OR PRODUCT WISE PERFORMANCE :
The
Company's prime business is manufacture of PVC floorings and therefore, there
are no separate segments.
OUTLOOK :
The Company
regularly introduces new commercial product in market. The Company has recently
introduce Transport Flooring used in buses and railways and high performance
flooring for heavy traffic areas and has received positive response.
The Company is working on flooring requirements, specific to hospitals, BPO,
IT, and Corporate Office which has tremendous growth. With growing
opportunities your company hopes to increase the turnover and improve the
performance in future.
STATUS WITH
BIFR :
As reported
in the earlier Annual Reports, the Company has been registered with BIFR in
September, 2002. The IDBI and some other Banks have transferred their debt to
ARGIL. As reported in the earlier Annual Reports, the
Company has been registered with BIFR since September, 2002. The IDBI and some
other Banks have transferred their debt to ARCIL. Restructuring package for the
company is in final stage of consideration with ARCIL. The company has already
settled debt of UBI in one time settlement and has initiated negotiation with
rest of banks for One Time Settlement. On finalization of above, a Draft
Rehabilitation Scheme (DRS) for the company will be recommended for approval to
the Hon'ble BIFR.
CHANGE IN REGISTERED OFFICE :
During the year Registered office of the Company was changed to:
Shree Kamdhenu Estate, 4th floor, Near Tangent Furniture Showroom, Off. Link
Road, Chincholi Bunder, Malad (West), Mumbai - 400 064, Maharashtra, India
Fixed Assets
®
Land (Freehold)
®
Buildings
®
Factory/Office/Canteen
®
Guest House
®
Internal Roads & Tube Well
®
Plant and Machinery
®
Vehicles
®
Furniture and Fixtures
®
Office
®
Guest House
®
Office & Other Equipments
AS PER WEBSITE
Royal
Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at
Garadia, Halol, Gujarat, which was commissioned from 1996-97 onwards for the
manufacture of Vinyl Floorings of different types for various end-users and
Rigid Films. It sells to customers in over 40 countries.
It
is an ISO 9002 company with a RWTUV, which is a German certification
body.
Exports
RCVP
exports 50% of its production to developing countries with its major markets in
Sudan, Ethiopia, Kenya, Tanzania, Saudi Arabia, Mombasa, Nigeria, etc.
Our Product Differentiators can be defined as:
·
Design
Innovation / Attractive Colours
·
Quality
Consistency
·
Brand
Image
·
Gloss
Level
On testing our product
along with other international manufacturers’ products on the glossmeter, the
results have shown that RCVP’s products can be produced at a gloss level of 7%
to 30% higher than that of any other International brand in the world.
In other words our U.S.P is :
Innovative Designs with Highest Gloss Levels compared to any other product
available in the world.
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.44.246 |
|
UK Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
SCORE & 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 |