MIRA
INFORM REPORT
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Report Date : |
22.06.2007 |
IDENTIFICATION DETAILS
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Name : |
RAPICUT CARBIDES LIMITED |
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Registered Office : |
119, GIDC Industrial Area, Ankleshwar
- 393 002, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.04.1977 |
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Com. Reg. No.: |
2998 |
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CIN No.: [Company
Identification No.] |
U28910GJ1977PLC002998 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDR00891C |
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PAN No.: [Permanent
Account No.] |
AAACR8753N |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of Tungsten Carbide Tips, Inserts and other Carbide
products from ore stage |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
USD 210000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under server pressure. It has some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office/Factory : |
119, GIDC Industrial Area, Ankleshwar
- 393 002, |
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Tel. No.: |
91-2646-251118, 221071 |
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Fax No.: |
91-2646-251019 |
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E-Mail : |
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Website : |
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Area Sales Offices: |
Kolkata Mumbai
Pune |
DIRECTORS
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Name : |
Mr. S.S. Kumar |
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Designation : |
Chairman |
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Name : |
Mr. J.C. Bhatia |
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Designation : |
Managing Director |
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Name : |
Mr. L.M. Bijlani |
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Designation : |
Director |
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Name : |
Mr. K.S. Joshi |
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Designation : |
Director |
KEY EXECUTIVES
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Management Team |
Mr. C.J. Bhatia Vice-President (Operations) Mr. A.R. Master Manager (Accounts & Commercial) Mr. R.V. Krishnan Marketing Manager Technical Consultant Mr. PA Kale |
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Name : |
Mr. H. Kamdar |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Tungsten Carbide Tips, Inserts and other Carbide
products from ore stage |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Tungsten & Tungsten Carbide Products |
Kgs. |
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90,000 |
52,572 |
GENERAL INFORMATION
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Customers : |
v
PRP Granites. v
Lupin Limited. v
Hind
Associates. v
B.R.Machine
Tools. v
P.S.K.S &
Company. v
Bundy India
Limited. v
Forbes Gokak
Limited. v
Greaves
Cotton Limited. v
Godrej
Industries Limited. v
Tata Iron
& Steel Co. Limited. v
Electro Steel
Castings Limited. v
Steel
Authority of India Limited. v
Choksi
Heraeus Private Limited. v
Bharat Heavy
Electricals Limited. v
Shiballoy
Multiflex Private Limited. v
Sugan
Engineering Private Limited. v
Neyveli
Lignite Corporation Limited. v
Hindustan
Platinum Private Limited. v
Birla NGK
Insulators Private Limited. v
Mineral
Exploration Corporation Limited. v
Sanghavi Shoe
Accessories Pvt. Limited. v
v
Weatherford
Drilling & Production Services ( |
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No. of Employees : |
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Bankers : |
v
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
D N Shukla & Company Chartered Accountants Legal Advisors Kumar & Associates Advocates & Consultants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 40.000
Millions |
Issued, Subscribed & Called Up :
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No. of Shares |
Type |
Value |
Amount |
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26,70,568 |
Equity Shares |
Rs. 10/- Each |
Rs. 26.705
Millions |
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Paid-up |
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2148400 |
Equity Shares |
Rs. 10/- Each |
Rs. 21.484 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
21.484 |
21.484 |
21.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
49.691 |
49.691 |
30.200 |
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4] (Accumulated Losses) |
(16.249) |
(18.820) |
0.000 |
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NETWORTH |
54.926 |
52.355 |
51.700 |
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LOAN FUNDS |
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1] Secured Loans |
21.508 |
32.545 |
40.200 |
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2] Unsecured Loans |
36.582 |
35.565 |
33.300 |
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TOTAL BORROWING |
58.090 |
68.110 |
73.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
113.016 |
120.465 |
125.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
12.195 |
15.065 |
19.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.211 |
0.210 |
0.200 |
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DEFERREX TAX ASSETS |
0.021 |
4.452 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
46.265
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66.690 |
76.700 |
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Sundry Debtors |
28.714
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24.891 |
28.500 |
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Cash & Bank Balances |
24.397
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12.667 |
4.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
6.448
|
4.057 |
9.900 |
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Total
Current Assets |
105.824
|
108.305 |
119.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4.931
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8.121 |
14.800 |
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Provisions |
0.304
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0.000 |
0.000 |
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Total
Current Liabilities |
5.235
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8.121 |
14.800 |
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Net Current Assets |
100.589
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100.184 |
104.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.554 |
1.200 |
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TOTAL |
113.016 |
120.465 |
125.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
153.995 |
150.912 |
113.300 |
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Other Income |
0.184 |
0.439 |
0.400 |
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Total Income |
154.179 |
151.351 |
113.700 |
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Profit/(Loss) Before Tax |
7.589 |
3.947 |
1.800 |
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Provision for Taxation |
4.736 |
1.865 |
(6.300) |
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Profit/(Loss) After Tax |
2.853 |
2.082 |
8.100 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.057 |
NA |
NA |
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Total Earnings |
0.057 |
NA |
NA |
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Expenditures : |
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Cost of Goods Sold |
88.063 |
80.292 |
0.000 |
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Manufacturing Expenses |
17.042 |
20.559 |
9.200 |
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Administrative Expenses |
7.300 |
7.100 |
6.300 |
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Raw Material Consumed |
20.100 |
20.400 |
47.800 |
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Purchases made for re-sale |
0.000 |
0.000 |
15.300 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
14.300 |
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Power & Fuel |
0.000 |
0.000 |
6.700 |
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Depreciation & Amortization |
0.000 |
2.247 |
0.000 |
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Total Expenditure |
132.505 |
130.598 |
99.600 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 (Full
Year) |
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Sales Turnover |
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173.300 |
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Other Income |
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1.600 |
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Total Income |
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174.900 |
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Total Expenditure |
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158.600 |
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Operating Profit |
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16.300 |
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Interest |
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2.100 |
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Gross Profit |
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14.200 |
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Depreciation |
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1.900 |
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Tax |
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3.900 |
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Reported PAT |
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8.500 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
1.17 |
1.36 |
1.54 |
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Long Term Debt-Equity Ratio |
0.68 |
0.67 |
0.66 |
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Current Ratio |
3.24 |
2.43 |
2.01 |
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TURNOVER RATIOS |
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Fixed Assets |
2.27 |
2.07 |
1.49 |
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Inventory |
2.73 |
2.10 |
1.52 |
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Debtors |
5.75 |
5.65 |
3.79 |
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Interest Cover Ratio |
3.02 |
2.05 |
1.27 |
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Operating Profit Margin(%) |
9.87 |
10.01 |
10.50 |
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Profit Before Interest And Tax Margin(%) |
8.64 |
8.55 |
8.30 |
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Cash Profit Margin(%) |
3.44 |
3.78 |
9.53 |
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Adjusted Net Profit Margin(%) |
2.21 |
2.32 |
7.33 |
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Return On Capital Employed(%) |
9.93 |
9.14 |
7.23 |
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Return On Net Worth(%) |
4.78 |
4.92 |
14.37 |
STOCK PRICES
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Face Value |
Rs.10/- |
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High |
Rs.(0.01) |
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Low |
Rs.(0.01) |
LOCAL AGENCY FURTHER INFORMATION
History
Rapicut Carbides (RCL), incorporated in April '77 and
promoted by a group of experienced technocrats has commenced production of tungsten
carbide products in Oct. '79. Its manufacturing process ranges from ore
extraction to making the finished product (inst. cap.: 90 tpa).
Its products include metal cutting tips, special and formed tips, wire drawing
dies and wear parts. For the mining sector, it manufactures tungsten carbide
drill steel inserts, coal auger and integrated drill steel rods. Its products
find application in the automobile, mining, rock drilling, oil exploration and
general engineering industries.
RCL is diversifying its product-mix by adding other powder metallurgical
products, like indexable inserts and more value added products. It will also
manufacture extrusion rods, coupling sleeves, adaptors and cross bits mainly
used in underground tunneling work. For the ball bearing and fastener industry,
it will manufacture cold heading dies. The company has received ISO 9002
Certificate in June 99.
OPERATIONS:
Year 2005-06 witnessed a very volatile situation in the fluctuating raw
material price scenario. The Company as also other cemented carbide
manufacturers had to effect upward price revision in their products on multiple
occasions. The direct impact of this was very cautious response and consequent
uncertainty in the flow of customer orders. Hence the increase in sales
turnover during the year under review was marginal.
However, the drive for economy in expenses, wherever possible, continued
unabated. In the result operating profit was significantly higher (Rs.7.589
Millions) as compared to previous year (Rs.3.947 Millions).
OUTLOOK FOR 2006-2007:
The order book has been quite healthy since the beginning of the current year.
The Directors are confident that improvement in the performance will be
sustained through the year, despite the continuing volatility in raw material
prices.
Fixed Assets
v
v Building
v Plant & Machinery
v Electrical Fitting
v Data Process Equipment
v Furniture & Fixture
v Office Equipment
v Vehicles
As per website details
Profile
Rapicut Carbides Limited
(RCL) was incorporated as a Public Limited Company, in April 1977, and an
integrated unit was set up at Ankleshwar,
RCL today manufactures a wide range of Tungsten Carbide (T.C.) Products viz., Tungsten Carbide Tips, Tungsten Carbide Inserts, Wire Drawing Nibs, Bar and Tube drawing Pellets, Tungsten Carbide Rings, Flats, Bushes, Jute Eyelets, Solid Carbide Cutters and a wide range of Tool Room Products.
Total customer
satisfaction shall be their prime corporate objective.
They shall achieve
this through inculcating team spirit in every member of the company.
The spirit of
excellence is the corner stone of all they do
Quality with us is
a way of life.
Value for money to
the customer, continuous improvement and moving towards zero defect is their
consistent endeavor.
Manufacturing
quality products means setting standards. To adhere to these standards, all the
processes have to be under the purview of trained eyes. To Constantly upgrade the
efficiency and quality of its products, RCL taps the potential of its in-house
Research & Development facility. RCL's Centralized Research &
Development department is equipped with advanced data processing equipment to
facilitate material composition analysis and various other tests.
It is to be noted
that the most important factor in obtaining quality Tips and Inserts is
controlling the physical and chemical properties at every stage of operation.
The chemical lab has facilities to analyze the impurity levels present in
Tungsten Tri Oxide, Tungsten Metal and Tungsten Carbide. The physical
laboratory has facilities to check the micro-structure, hardness, specific
gravity, coercive force, transverse rupture strength, porosity etc., of the
sintered products, The rigid quality control at RCL has enabled it to meet the
exact requirements of Engineering Industry.RCL is an ISO 9001 : 2000 Certified
Company (by RWTUV)
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 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.40.71 |
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|
1 |
Rs.81.24 |
|
Euro |
1 |
Rs.54.63 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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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 |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
37 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|