MIRA
INFORM REPORT
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Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
REXNORD ELECTRONICS AND CONTROLS LIMITED |
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Registered Office : |
92-D, Government,
Industrial Estate, Sahyadrinagar, Charkop,
Kandivli (West), Mumbai-400067, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.07.1988 |
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Com. Reg. No.: |
47946 |
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CIN No.: [Company
Identification No.] |
L31200MH1988PLC047946 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR14046E |
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PAN No.: [Permanent
Account No.] |
AAACR2920H |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
Manufacturer and exporter of a wide variety of Electronic
products |
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 250000 |
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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 experience 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 / Head Office : |
92-D, Government,
Industrial Estate, Sahyadrinagar, Charkop,
Kandivli (West), Mumbai-400067, |
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Tel. No.: |
91-22-28686275 / 28684715 / 28683087 / 2868 6088 |
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Mobile No. : |
91-9820715300
/ 9867337689 |
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Fax No.: |
91-22-28687784 |
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E-Mail : |
domestic@rexnordindia.com (Local Sales) exports@rexnordindia.com (Export
Sales) |
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Website : |
DIRECTORS
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Name : |
Mr. Kishore Chand Talwar |
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Designation : |
Chairman & Managing Director |
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E-Mail : |
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Name : |
Ms. Sharda K Talwar |
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Designation : |
Whole-time Director |
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Name : |
Ms. Nainy K Talwar |
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Designation : |
Whole-time Director |
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E-Mail : |
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Name : |
Mr. Ram Bahadur Roka |
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Designation : |
Whole-time Director |
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Name : |
Mr. V Shivaswamy Iyer |
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Designation : |
Director |
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Name : |
Mr. Pankaj Sanehi |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and exporter of a wide variety of Electronic
products |
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Products : |
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Export to : |
Europe, |
GENERAL INFORMATION
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No. of Employees : |
29 |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
R Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6,480,300 |
Equity Shares |
Rs. 10/- each |
Rs. 64.803
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 |
64.800 |
64.800 |
64.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
[2.400] |
[3.600] |
[3.800] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
62.400 |
61.200 |
61.000 |
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LOAN FUNDS |
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1] Secured Loans |
24.600 |
24.500 |
21.300 |
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2] Unsecured Loans |
0.600 |
0.000 |
0.000 |
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TOTAL BORROWING |
25.200 |
24.500 |
21.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
87.600 |
85.700 |
82.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
42.000 |
45.100 |
41.500 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.000 |
0.800 |
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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 |
36.900
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29.900 |
25.600 |
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Sundry Debtors |
27.000
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25.100 |
28.200 |
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Cash & Bank Balances |
9.100
|
3.500 |
3.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
15.000
|
18.700 |
12.600 |
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Total
Current Assets |
88.000
|
77.200 |
69.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
41.900
|
36.300 |
29.700 |
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Provisions |
0.600
|
0.300 |
0.200 |
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Total
Current Liabilities |
42.500
|
36.600 |
29.900 |
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Net Current Assets |
45.500
|
40.600 |
39.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.300 |
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TOTAL |
87.600 |
85.700 |
82.300 |
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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 |
104.400
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71.800
|
86.600
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Other Income |
0.200
|
0.900
|
1.000
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Stock Adjustments |
10.900
|
3.700
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[3.700
] |
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Total
Income |
115.500 |
76.400 |
83.900 |
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Profit/(Loss) Before Tax |
2.700
|
0.800
|
2.000
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Provision for Taxation |
1.500
|
0.600
|
0.900
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Profit/(Loss) After Tax |
1.200
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0.200
|
1.100
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Expenditures : |
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Raw Materials |
56.000
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32.900
|
28.300
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Excise Duty |
13.900
|
10.000
|
11.500
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Power & Fuel Cost |
2.500
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2.100
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1.000
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Other Manufacturing Expenses |
17.500
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10.000
|
17.700
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Employee Cost |
3.300
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2.600
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2.400
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Selling and Administration Expenses |
8.200
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6.600
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9.500
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Miscellaneous Expenses |
1.500
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2.200
|
2.500
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Interest & Financial Charges |
3.400
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3.200
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3.400
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Depreciation |
6.500
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6.000
|
5.600
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Total Expenditure |
112.800 |
75.600 |
81.900 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 [1st
Quarter] |
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Sales Turnover |
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45.600
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Other Income |
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0.000
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Total Income |
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45.600
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Total Expediture |
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40.300
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Operating Profit |
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5.300
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Interest |
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1.600
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Gross Profit |
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3.700
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Depreciation |
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2.000
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Tax |
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0.500
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Reported PAT |
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1.200
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.40 |
0.37 |
0.37 |
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Long Term Debt-Equity Ratio |
0.07 |
0.03 |
0.02 |
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Current Ratio |
1.37 |
1.35 |
1.35 |
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TURNOVER RATIOS |
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Fixed Assets |
1.06 |
0.78 |
1.03 |
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Inventory |
3.13 |
2.59 |
3.24 |
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Debtors |
4.01 |
2.69 |
3.16 |
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Interest Cover Ratio |
1.79 |
1.25 |
1.59 |
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Operating Profit Margin(%) |
12.07 |
13.93 |
12.70 |
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Profit Before Interest And Tax Margin(%) |
5.84 |
5.57 |
6.24 |
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Cash Profit Margin(%) |
7.38 |
8.64 |
7.74 |
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Adjusted Net Profit Margin(%) |
1.15 |
0.28 |
1.27 |
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Return On Capital Employed(%) |
6.80 |
4.57 |
6.27 |
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Return On Net Worth(%) |
1.85 |
0.31 |
1.70 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The year under review remained quite better than previous year inspite of heavy
competition with low cost import of electronic goods from neighboring countries
and steep increase in cost of raw materials. The company has been able to
achieve 46% growth in sales. The sales and other income of the company, during
the year under review, remained at Rs.90.718 Millions as against sales and
other income of Rs.62.711 Millions in the previous year.
Increase
in cost of raw materials has also put pressure on the margins of the company
however the company has earned the net profit before tax of Rs. 2.738 Millions
for the year as against the net profit before tax of Rs 0.793 Millions in the
previous year. The board expects better results for the current year.
ISO
CERTIFICATION:
The company's products were awarded as ISO 9001:2000 Certification.
MANAGEMENT
DISCUSSION AND ANALYSIS'
INDUSTRY STRUCTURE & DEVELOPMENT:
The main business of the company is manufacturing and sale of instrument
cooling fans, exhaust fans and motors used in industrial and domestic purposes.
The industry is directly related to the growth of the user industry in which
the products find applications. The instrument cooling fans/motors are mainly
used in the computer hardware equipments, power supply equipment, textile
machines, refrigeration industry, injection moulding machines, photocopying
machines etc.
OPPORTUNITIES, THREATS, OUTLOOK, RISKS
AND CONCERNS:
Inspite of tough competition with low cost import from the neighboring countries
and steep increase in cost of raw materials, the company could be able to
achieve 46% growth in the sales of the company as compared to the sales of last
year.
The general outlook with respect to this industry in
The top & bottom lines will be under some pressures from international
competitors. However the company is confident of adequately protecting its
plans, from the competition.
The company's operations are predominantly comprises of only one business
segment - Instrument Cooling Fans/Motors.
EXPORTS:
The company is holding ISO 9001: 2000 Certificate by Underwriters Laboratory
Inc., Chicago (USA) for its quality systems which reflects the company's
continuous commitment towards quality & standards. During the year under
review the company could be able to achieve export turnover of around 5% of
total sales. The company is Jutting its best efforts to increase the export.
The company is consolidating its resources to build a market presence in the
international arena.
FINANCIAL
AND OPERATIONAL PERFORMANCE:
During the year under review, the company has achieved the sales and other
income of Rs.90.718 Millions as against the sales and other income of Rs.62.711
Millions in the previous year. The company has earned net profit before tax of
Rs.2.738 Millions during the year as against the net profit before tax of
Rs.0.793 Millions in the previous year.
The challenges described above could not affect the company much and the
company could be able to register net profit of Rs.1.267 Millions as against net profit of Rs. 0.240
Millions last year due to improved productivity and cost management measures.
During the current financial year, the company is working towards further
improvement in its profitability.
AS PER
WEBSITE
Quality
Subject have been certified by ISO 9001-2000
that speaks volume about the quality and reliability of the products that pass
through stringent quality checks before they finally arrive in the market. Due
to the excellent quality and functioning of the products, subject have achieved
great recognition in the national as well international market. The credit for
such an esteemed position goes to the innovative views of the technicians,
world-class production processes, state of the art machinery and quality
ingredients.
Marketing Network
Their company has a wide sales network that strengthen them
for efficient marketing of goods throughout the country and globe. We have
established themselves as a brand in the market solely on the strength of their
infrastructure, excellent service and their commitment to provide value to
their customers.
Infrastructure
At Rexnord, we have the latest techniques and machineries to
meet up with any production quantity combined with a team of highly qualified
and enthusiastic professionals who are constantly striving for high quality
product profile and high quality service. We also have an in-house research and
development department to understand the latest needs of their consumers
and develop new techniques and methods for the development of new variety of
products.
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.39.82 |
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|
1 |
Rs.80.85 |
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Euro |
1 |
Rs.56.22 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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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 |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
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