MIRA
INFORM REPORT
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Report Date : |
01.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RANEKA INDUSTRIES LIMITED |
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Formerly Known As : |
CM METALS PRIVATE LIMITED |
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Registered Office : |
Plot No. 16A, 17 & 18A, Sector -3, (Sagore), Pithampur- 454774, District Dhar, Madhya Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.11.1983 |
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Com. Reg. No.: |
10-7121 |
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CIN No.: [Company
Identification No.] |
L27320MP1983PLC007121 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLR01648D |
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PAN No.: [Permanent
Account No.] |
AAACR7834C |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Cast Steel Components |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 160000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
Plot No. 16A, 17 & 18A, Sector -3, (Sagore), Pithampur- 454774, District Dhar, Madhya Pradesh, India |
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Tel. No.: |
91-7292-256128
/ 256874 / 329906 /329907 / 400209 / 407802 |
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Fax No.: |
91-7292 – 256410 / 407802 |
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E-Mail : |
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Website : |
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Administrative/Corporate Office : |
303, |
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Tel. No.: |
91-731-2563986 / 256091 / 3018490 |
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Fax No.: |
91-731-4070039 / 3018491 |
DIRECTORS
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Name : |
Mr. Shashikant Jain |
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Designation : |
Managing Director |
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Address : |
Godhan 38-39, Utkarsh Vihar, |
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Date of Birth/Age : |
13.03.1961 |
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Date of Appointment : |
01.04.2003 |
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Name : |
Mr. Kapil Jain |
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Designation : |
Whole Time Director |
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Address : |
Arihant 31-32 Utkarsh Vihar, |
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Date of Birth/Age : |
08.01.1978 |
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Date of Appointment : |
18.04.2006 |
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Other Directorship : |
Anik Trading Private Limited U51909MH2005PTC152480 Mukhar Trade Private Limited U51909MH2005PTC152500 |
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Name : |
Mr. Rahul Jain |
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Designation : |
Whole Time Director |
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Address : |
Arihant 31-32 Utkarsh Vihar, |
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Date of Birth/Age : |
22.11.1976 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Rajendra Kumar Jain |
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Designation : |
Chairman cum Managing Director |
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Address : |
Arihant 31-32 Utkarsh Vihar, |
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Date of Birth/Age : |
21.07.1947 |
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Date of Appointment : |
03.11.1989 |
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Name : |
Mr. Sunil Kumar Jain |
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Designation : |
Additional Director |
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Name : |
Mr. Gajendra Jain |
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Designation : |
Additional Director |
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Name : |
Mr. Rahul Kasliwal |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Ms. Priya Nagmoti |
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Designation : |
Company Secretary |
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Address : |
CM II – 32, Sector 4, Sukhliya, |
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Tel No. : |
91-731-6523965 |
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Mobile No. : |
91-9329216952 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Equity Shareholders |
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No. of Shares |
|
Rajendra Kumar Jain |
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106020 |
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Maina R Jain |
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56740 |
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Vijayant Jain |
|
700 |
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Rajendra Kumar Jain – HUF |
|
143400 |
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Shashikant Jain – HUF |
|
114980 |
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Neha Jain |
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22600 |
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Nidhi Jain |
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26560 |
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Shashikant Jain |
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40000 |
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Total |
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511000 |
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Names of Preference Shareholders |
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No. of Shares |
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Realworth Civil Work Private Limited |
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90000 |
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Mukhar Trade Private Limited |
|
40000 |
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Rajena Trade Private Limited |
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40000 |
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Anik Trading Private Limited |
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30000 |
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Cineplaza Trading Company Private Limited |
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33333 |
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Truegold Exports Private Limited |
|
33334 |
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Total |
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266667 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cast Steel Components |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M Munishi and Company Chartered Accountants |
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Address : |
305, |
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Tel. No.: |
91-731-2561023 / 2563452 / 2563463 |
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Fax No.: |
91-731-2564019 |
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E-Mail : |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
733,333 |
Equity Shares |
Rs. 10/- each |
Rs. 7.333 Millions |
|
266,667 |
Preference Shares |
Rs. 10/- each |
Rs. 2.667 Millions |
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Total |
|
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
511,000 |
Equity Shares |
Rs. 10/- each |
Rs. 5.110
Millions |
|
266,667 |
Preference Shares |
Rs. 10/- each |
Rs. 2.667
Millions |
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Total |
|
Rs. 7.777 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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1] Share Capital |
7.777 |
5.110 |
5.110 |
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2] Share Application Money |
2.950 |
14.225 |
0.000 |
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3] Reserves & Surplus |
30.053 |
19.848 |
17.094 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
40.780 |
39.183 |
22.204 |
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LOAN FUNDS |
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1] Secured Loans |
75.080 |
42.185 |
17.456 |
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2] Unsecured Loans |
2.178 |
0.000 |
18.056 |
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TOTAL BORROWING |
77.258 |
42.185 |
35.512 |
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DEFERRED TAX LIABILITIES |
3.316 |
3.453 |
3.348 |
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TOTAL |
121.354 |
84.821 |
61.064 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
40.848 |
33.875 |
28.774 |
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Capital work-in-progress |
0.571 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.187 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
48.010
|
44.494 |
9.180 |
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Sundry Debtors |
44.379
|
27.681 |
34.416 |
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Cash & Bank Balances |
1.610
|
2.781 |
2.499 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
14.276
|
10.392 |
4.707 |
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Total
Current Assets |
108.275
|
85.348 |
50.802 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
21.680
|
28.419 |
13.240 |
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Provisions |
6.660
|
5.983 |
5.459 |
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Total
Current Liabilities |
28.340
|
34.402 |
18.699 |
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Net Current Assets |
79.935
|
50.946 |
32.103 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
121.354 |
84.821 |
61.064 |
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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 |
467.337 |
374.635 |
233.429 |
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Other Income |
1.286 |
1.462 |
3.654 |
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Total Income |
468.623 |
376.097 |
237.083 |
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Profit/(Loss) Before Tax |
7.759 |
4.654 |
2.919 |
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Provision for Taxation |
3.177 |
1.893 |
1.165 |
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Profit/(Loss) After Tax |
4.582 |
2.761 |
1.754 |
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Earnings in Foreign Currency : |
AUS $ 567464 |
US $ 137700 |
NA |
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Imports : |
US $ 436,400 |
US $ 128,000 |
NA |
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Expenditures : |
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Raw Material Consumed |
211.374 |
179.528 |
138.570 |
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Manufacturing Expenses |
0.000 |
0.000 |
73.419 |
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Administrative and Selling Expenses |
0.000 |
0.000 |
16.472 |
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Purchase made of re-sale |
69.417 |
53.136 |
0.000 |
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Salaries, Wages, Bonus, etc. |
4.606 |
3.268 |
0.000 |
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Managerial Remuneration |
5.960 |
5.910 |
0.000 |
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Payment to Auditors |
0.034 |
0.033 |
0.000 |
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Interest |
4.015 |
2.447 |
2.136 |
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Insurance Expenses |
3.168 |
1.262 |
0.000 |
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Power & Fuel |
46.228 |
37.485 |
0.000 |
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Other Expenditure |
116.063 |
88.374 |
0.000 |
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Total Expenditure |
460.865 |
371.443 |
230.597 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.98
|
0.73 |
0.74 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.66
|
1.24 |
1.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.20
|
3.90 |
3.67 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.12 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.59
|
1.95 |
2.44 |
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Current Ratio (Current Asset/Current Liability) |
|
3.82
|
2.48 |
2.72 |
LOCAL AGENCY FURTHER INFORMATION
The Registered
office of the company has been shifted from 303, Navneet Plaza, 5/2, Old
Palasia,
Fixed Assets
- Land
- Plant and machinery
- Electrical Installation
- Lab Equipments
- Pollution Control Equipment
- Pattern
- Office Equipments
- Furniture and Equipments
- Vehicles
- Computer and hardware equipments
- Materials Handling Equipments
Bankers Charges
Report as per Registry
|
Name of the company |
RANEKA
INDUSTRIES LIMITED |
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Presented By |
S. K. Jain,
Director |
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Date and description of instrument creating the change |
Equitable
mortgage created on 06.11.2004 06.11.2004
general agreement for Hypothecation of Movable book debts and other current
assets. |
|
Amount secured by the charge/amount owing on the securities of charge |
Rs. 50.000
Millions |
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Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All present and
future goods, book debts, other assets, receivable, invoices, factory land
and building, plant and machinery and other fixed assets / current assets of
the company. Equitable
mortgage of factory land and building of the company. |
|
Name and Address and description of the person entitled to the charge. |
ING Vysya bank 9/1/3 M.G. Road |
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Date and brief description of instrument modifying the charge |
23.06.2005 Term Loan
Agreement 23.06.2005 General
Hypothecation Agreement |
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Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Te amount of the
loan has been modified by way of increase up to the limit as follows : Invoice financing
: Rs. 40.000 Millions Import letter of
credit Rs. 40.000 Millions Sub limit of Cash credit Rs.
30.000 Millions Bank Guarantee
Rs. 1.000 Millions Term Loan Rs.
11.250 Millions For the above
loan facilities, the following property has been given as security : Continuing
Equitable mortgage of the factory land and building First charge on
the entire fixed assets of the company including machineries and equipments. All kinds of
stocks viz, raw materials, WIP, finished goods etc, stored and to be stored
in the factory premises or in any other places / godown from time to time,
book debts / receivables, all kinds of plant and machineries and other tools
and equipments. |
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
90201992 |
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Corporate
identity number of the company |
L27320MP1983PLC007121 |
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Name of the
company |
RANEKA INDUSTRIES LIMITED |
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Address of the
registered office or of the principal place of business in |
Plot No. 16A, 17 & 18A, Sector -3, (Sagore), Pithampur- 454774, Diss: Dhar, Madhya Pradesh, India |
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Type of charge |
|
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Particular of
charge holder |
ING Vysya Bank Limited, 7/1, R S Bhandari Marg, Near Narayan Kothi,
Savarkar Circle, Indore – 452001, Madhya Pradesh, India |
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Nature of
description of the instrument creating or modifying the charge |
|
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Date of
instrument Creating the charge |
19.03.2007 |
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Amount secured by
the charge |
Rs. 106.750
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
Terms of
repayment The fresh term
loan II of Rs. 5.500 Millions shall be repayable in 36 monthly installments. Margin
Extent operation
of the charge
Primary security :
|
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Short particulars
of the property charged |
Enhanced co. facilities together with interest, charges and costs are
secured against : Primary security :
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Date of latest
modification prior to the present modification |
3.06.2005 |
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Particulars of
the present modification |
|
AS PER WEBSITE
Raneka Industries is a diversified manufacturer of Cast
Steel Components. Raneka has major presence in railroad, power and other heavy
industries. The company has a monthly capacity of manufacture around 1000
MT Castings of varied material componsition, sizes and weights. The
company has an integrated quality system, which is approved under ISO:9001:2000 quality standard and
is also approved as an “A: Class Foundry by Indian Railways as per
IS-12117-96 specification.
Raneka Industries Limited was set them in the year 1990. The
manufacturing unit is located in the
The Company started its operations with a small capacity of 50 MT per month and
major focus in small Railway components. The dedication & hard work of the
members of company has seen the company grow by almost 20 times since then. The
company is only one of its kind in whole of
The Capacity to manufacture 12000 MT of casting, coupled
with an in-house Machine Shop and Testing Laboratory make it a one stop shop
for varied cast steel requirements.
They at Raneka Industries Limited believe in
increasing their product and customer base rather than replacing them. At
present they are having widest range of Cast Steel components amongst all
casting manufacturing in the country.
They catch to the requirement of following
sector:
Rail Road
Castings for Railway Industry is the company’s forte. They have got the widest
range of cast steel components in this sector in
Power and Oil Sector
Company is making some fast strides in this sector too. They are already
approved by major heavy industries such BHEL, NTPC, BWEL and are in the process
of developing various castings such as Impellers, Bearing Housing, Pump Covers,
Brake Drums, Magnet Frames..
Automobile and Defense
The recent expansion of melting capacity by the company coupled with the
introduction of fully automatic molding lines and better machining capabilities
is aimed to make company capable of meeting highly sophisticated casting
requirement of Automobile and Defense sector.
Mining / Steel Industry
Many top players of Mining and Steel industry have also approached them for
their casting needs. They are in process of developing various castings for
this sector also. Some of the products include Impellers, Wear Rings, Pallet
Assembly, Gear Housing etc.
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.40.96 |
|
|
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.55.96 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--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 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. |
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 |
|