MIRA
INFORM REPORT
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Report Date : |
06.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RAJOO ENGINEERS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.12.1986 |
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Com. Reg. No.: |
009212 |
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CIN No.: [Company
Identification No.] |
U27100GJ1986PLC009212 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTR00664G |
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PAN No.: [Permanent
Account No.] |
AABCR3204M |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturers of moulding boxes for metal foundry. |
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 290000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by above 30 days |
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Litigation : |
Clear |
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Comments : |
Subject is an executed company having mediocre performance and track records.
General financial position is satisfactory. Trade relations are fair.
Payments are reported as slow by above 30 days. However the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory 1: |
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Tel. No.: |
91-2874-221175, 221176 |
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Fax No.: |
91-2874-221326 |
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E-Mail: |
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Website : |
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Head Office/ Factory 2 : |
Survey No. 210, Plot
No.1, Industrial Area, Veraval (Shapar), |
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Tel. No.: |
91-2827-252701, 2, 3 |
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Fax No.: |
91-2827-252700 |
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E-Mail : |
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Marketing
Network: |
North India Phone : +91-11-42471342
Fax : +91-11-42471343 West India Phone : +91-79-26403289 Fax : +91-79-26403954 South India Phone : +91-80-26619689
/ 26675802 |
DIRECTORS
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Name : |
Mr. Chandrakant N. Doshi |
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Designation : |
Chairman and Managing Director |
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Address : |
“Vatsalya” Behind Sardar Nagar, Manavadar – 362 630, Junagadh, |
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Date of Birth/Age : |
28.08.1953 |
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Date of Appointment : |
09.12.1986 |
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Name : |
Mr. Rajesh N. Doshi |
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Designation : |
Joint Managing Director |
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Address : |
“Vatsalya” Behind Sardar Nagar, Manavadar – 362 630, Junagadh, |
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Date of Birth/Age : |
07.03.1961 |
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Date of Appointment : |
09.12.1986 |
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Name : |
Mr. Jayantilal P. Aghera |
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Designation : |
Whole Time Director |
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Address : |
Sardar Nagar, Manavadar – 362 630, Junagadh, |
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Date of Birth/Age : |
29.07.1952 |
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Date of Appointment : |
17.12.1986 |
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Name : |
Mr. Gopaliah Harish |
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Designation : |
Director |
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Address : |
121, 8th “A” Main, IV Phase, J P Nagar, |
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Date of Birth/Age : |
09.07.1962 |
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Date of Appointment : |
01.01.1993 |
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Name : |
Mr. Khimjibhai P. Aghera |
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Designation : |
Whole Time Director |
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Address : |
SBS Colony, Manavadar – 362 630, Junagadh, |
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Date of Birth/Age : |
01.12.1951 |
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Date of Appointment : |
15.08.1995 |
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Name : |
Mr. Sunil B. Jain |
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Designation : |
Director |
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Address : |
39/10, Shakti Nagar, |
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Date of Birth/Age : |
25.12.1955 |
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Date of Appointment : |
30.06.2002 |
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Name : |
Mr. Ramesh A. Shah |
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Designation : |
Director |
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Address : |
Flat No. A-104, Mangal Darshan, |
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Date of Birth/Age : |
30.01.1951 |
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Date of Appointment : |
31.01.2003 |
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Name : |
Mr. Mahasukh S. Mehta |
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Designation : |
Director |
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Address : |
Jail road, Manavadar. Junagadh, |
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Date of Birth/Age : |
12.11.1941 |
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Date of Appointment : |
31.01.2003 |
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Name : |
Mr. Kishor R. Doshi |
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Designation : |
Director |
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Address : |
4, Mahavir Kunj, Ambadi Road, Opposite Sheilsbury, Vasai Road, Thane,
Maharashtra, India |
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Date of Birth/Age : |
25.08.1965 |
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Date of Appointment : |
31.01.2003 |
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Name : |
Mr. Manharlal v. Kamdar |
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Designation : |
Director |
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Address : |
Lat No. 4, Block No. C/16, BRC Colony, |
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Date of Birth/Age : |
26.11.1934 |
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Date of Appointment : |
31.01.2003 |
KEY EXECUTIVES
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Name : |
Mr. V. Kaithwas |
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Designation : |
General Manager (Production) |
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Qualification: |
B.E. Mechanical |
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Experience : |
20 years |
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Name : |
Mr. V M Rajpura |
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Designation : |
DGM (Design) |
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Qualification: |
B.E. Mechanical |
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Experience : |
12 years |
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Name : |
Mr. J T Zalavadia |
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Designation : |
Senior Manager (Finance) |
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Qualification: |
B.Sc. (Chem) C A L L B |
SHAREHOLDING PATTERN
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Category |
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Percentage of
Holding |
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Foreign holdings (Foreign institutional investor(s), Foreign
companie(s), Foreign financial Institutions(s), Non-resident Indian(s) or
Overseas corporate bodies or Others |
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1.16 |
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Bodies Corporate (not mentioned above) |
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1.69 |
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Directors or relatives of directors |
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45.44 |
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Other top fifty (50) shareholders (other than listed above) |
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12.17 |
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Others |
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39.54 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of moulding boxes for metal foundry. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
About 210 |
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Bankers : |
State Bank of Saurashtra Gandhi Chowk, Manavadar – 362 630, E-mail: mnvd.brn@sbs.co.in |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M N Manvar and Company Chartered Accountants |
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Address : |
504, |
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Group Companies: |
v
Essen Polymers Private Limited v
Essen Multipack Limited v
Essen Speciality Films Private Limited v
Shruti Engineers Private Limited v
Vishwakarma Fabricators Private Limited v
Hitesh Engineers Private Limited v
Tanmay Engineers private Limited v
Kankai Packaging Private Limited v
Aim Machintechnik Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3500000 |
Equity shares |
Rs. 10.00 each |
Rs. 35.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3081000 |
Equity shares |
Rs. 10.00 each |
Rs. 30.810 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 |
30.810 |
30.810 |
30.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
44.174 |
34.690 |
27.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
74.984 |
65.500 |
58.600 |
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LOAN FUNDS |
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1] Secured Loans |
16.668 |
11.626 |
8.100 |
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2] Unsecured Loans |
24.138 |
14.983 |
38.000 |
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TOTAL BORROWING |
40.806 |
26.609 |
46.100 |
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DEFERRED TAX LIABILITIES |
8.724 |
9.006 |
0.000 |
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Liabilities for Deferred Payment of Sales Tax |
13.648 |
17.121 |
0.000 |
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TOTAL |
138.161 |
118.246 |
104.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
58.284 |
49.464 |
52.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
4.115 |
4.115 |
4.100 |
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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 |
48.786
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13.114 |
19.500 |
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Sundry Debtors |
42.991
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56.579 |
42.800 |
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Cash & Bank Balances |
5.865
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20.812 |
13.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
93.908
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48.712 |
47.100 |
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Total
Current Assets |
191.550
|
139.217 |
122.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
96.146
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56.599 |
60.800 |
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Provisions |
19.642
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17.951 |
14.000 |
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Total
Current Liabilities |
115.788
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74.550 |
74.800 |
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Net Current Assets |
75.762
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64.667 |
48.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
138.161 |
118.246 |
104.700 |
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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 |
323.138 |
305.647 |
285.400 |
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Other Income |
6.666 |
8.679 |
10.900 |
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Stock Adjustments |
0.000 |
0.000 |
(27.300) |
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Total Income |
329.804 |
314.326 |
269.000 |
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Profit/(Loss) Before Tax |
25.625 |
20.590 |
14.800 |
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Provision for Taxation |
9.817 |
8.120 |
4.900 |
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Profit/(Loss) After Tax |
15.808 |
12.470 |
9.900 |
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Expenditures : |
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Raw material Consumed |
243.216 |
191.823 |
176.200 |
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Increase or decrease in finished goods |
(22.962) |
7.133 |
0.000 |
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Salaries, wages and bonus |
19.007 |
18.396 |
12.700 |
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Managerial Remuneration |
3.651 |
1.793 |
0.000 |
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Payment of auditors |
0.098 |
0.105 |
0.000 |
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Interest |
1.484 |
2.772 |
2.900 |
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Insurance Expenses |
0.350 |
1.326 |
0.000 |
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Power and Fuel |
3.182 |
2.843 |
3.000 |
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Depreciation and amortization |
6.123 |
5.288 |
5.000 |
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Other Expenditure |
50.031 |
62.255 |
54.400 |
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Total Expenditure |
304.178 |
293.735 |
254.200 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
4.79
|
3.97 |
3.68 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.93
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6.74 |
5.19 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.26
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10.91 |
8.44 |
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Return on Investment (ROI) (PBT/Networth) |
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0.34
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0.31 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.09
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1.54 |
2.06 |
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Current Ratio (Current Asset/Current Liability) |
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1.65
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1.87 |
1.64 |
STOCK PRICES
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Face Value |
Rs. 10.00 |
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High |
Rs. 58.35 |
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Low |
Rs. 51.40 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated in December 1986 as a private limited
company, and it was converted into a public limited company in May 1992. The
company is promoted by C N Doshi. Its works is situated in Manavadar and in
Shapar - Veraval in
Subject manufactures plastic processing machinery, used for the extrusion
processing of various thermoplastic raw materials into compounds such as
profiles, pipes, blown films, cables and wire insulation sheathings, flat cast
films, sheet extrusion, raffia tapes, monofilaments, co-extruded films,
calendaring, thermoforming and strapping. It has two units, at Manavadar and
Subject went public in August 1994 with its maiden issue to expand its capacity
from 65 pa to 156 pa. Subject has entered into a technical collaboration with
Wiffery machinery,
Rajoo Engineers Limited, having made a modest beginning in 1986, is
emerged as an undisputed global player in blown film and sheet extrusion lines.
Inspired by a unique blend of spiritual professionalism and technological
prowess, the company has become major supplier of world class machines at
affordable prices.
The Company entered into development of various extrusion systems and delivered
its first PPTQ film plant in 1988. And since then, never looked back,
continuing to add one after the extrusion line into its product range
consistently.
The Company made an Initial
Public Offering in 1994 and received an
overwhelming response from the capital market culminating in over-subscription
by about 24 times, which by itself is a record in the Asian Plastic Machinery
Manufacturing Industry.
It is a fact that none of our customers have ever gone sick. It is also a fact that
all the customers when expanding or diversifying, have repeatedly ordered for
our machines which is an ample proof of customer satisfaction. Repeat orders
contribute to more than 60% of Company's sales.
The Company enjoys the largest market share of blown film lines, sheet lines
and thermoformers on the Indian sub-continent. Leadership amongst the Asian
manufacturers of such equipments is undisputedly established.
Fixed Assets
Land
Buildings
Administration
Office
Plant and
Machinery
Tools, Jigs and
Moulds
Furniture and
Fixtures
Office Equipments
Computers
Vehicles
FORM 8
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Corporate
identity number (CIN) Foreign company registration number |
U27100GJ1986PLC009212 |
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Name of the
Company |
RAJOO ENGINEERS LIMITED |
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Address |
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This form is for |
Modification of
charge |
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Type of Charge |
A charge on: v
Book
Debts v
Movable
property (not being pledge) v
Floating
charge v
Raw Materials,
SIP, finished goods, spares, stores |
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Particulars of
the charge holder |
State Bank of Saurashtra Gandhi Chowk, Manavadar – 362 630, E-mail: mnvd.brn@sbs.co.in |
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Nature or
description of the instrument(s) creating or modifying the charge |
Letter of
Hypothecation to secure Demand Cash Credit and other limits |
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Date of the
instrument creating or modifying the charge |
16.11.2006 |
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Amount secured by
the charge |
Rs. 87.500
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: 1.5% over PLR
subject to minimum of 12.50% per annum (b) Terms of
Repayment: CC Account
repayable on demand BG as and when
invoked (c) margin: 10 to 50% on
goods hypothecated (1) 10% for EPC (2) 30% for CC (3) 50% for ODBD (d) Extent and
operation of the charge The charge by way
of hypothecation extends as security to secure the revised credit facilities
of Rs. 87.500 millions comprising fund based limit of Rs. 67.500 millions and
non fund based limit of Rs. 20.000 millions (e) Others: As per principal
documents executed as modified from time to time and as per sanction letter
dated 31.03.2006 |
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Short particulars
of the property charged (including location of the property) |
All tangible
movable property such as products, stock in trade, goods of the borrower
which now or hereafter from time to time during this security shall be brought
in or stored or be in or about the premises or godowns of the borrower at
Manavadar and/or Rajkot or any where else more particularly goods comprising
of all sorts of alloy steel, steel, section, electric motors, drivers, gear
boxes, etc. |
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Particular of the
present modification |
Limit of Credit
facility has been revised from Rs. 73.000 millions to Rs. 87.500 millions and
accordingly the charge on tangible movable property now extended to secure
the enhanced limit of Rs. 87.500 as under:
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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. 82.26 |
|
Euro |
1 |
Rs. 55.66 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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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 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
42 |
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 |
|