MIRA
INFORM REPORT
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Report Date : |
07.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
RISHI LASER LIMITED |
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Formerly Known As : |
RISHI LASER CUTTING LIMITED |
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Registered Office : |
611, Veera Killedar Industrial Estate, 10/14, Pais Street, Byculla
(West), Mumbai – 400 011, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.04.1992 |
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Com. Reg. No.: |
11-66412. |
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CIN No.: [Company
Identification No.] |
L99999MH1992PLC066412 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKR04470E |
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PAN No.: [Permanent
Account No.] |
AAACR2715C |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the stock exchange. |
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Line of Business : |
Manufacturer of components used by Automobiles, General Machinery, Textile, Food Processing and Heavy Industries. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1023364 |
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Status : |
Good |
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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 fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. General financial position is satisfactory.
Fundamentals are strong and healthy. Payments are reported as usually correct
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. It can be regarded as a promising business partner in a medium to long
run. |
LOCATIONS
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Registered Office : |
611, Veera Killedar Industrial Estate, 10/14, Pais Street, Byculla
(West), Mumbai – 400 011, Maharashtra, India |
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Tel. No.: |
91-22-23075677 / 23084886 / 23060572 |
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Fax No.: |
91-22-2308022 |
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E-Mail : |
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Website : |
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Factory : |
· 110-L, 8th Cross, Bommasandra Industrial Area, Bangalore-562158, Karnataka, India · Plot No. A/2-620, GIDC Estate, Makapura, Vadodara-390010, Gujarat, India · Gat No.229, Alandi Markal Road, Village Markal, Tal: Khed, Pune, Maharashtra - 412 105, India Mob. No.: 9881135626 · Gat No.218/219, Alandi Markal Road, Village Markal, Tal: Khed Pune, Maharashtra-412 105 , India Tel: (02135) 308396 ·
Gat No. 1236/1+2+3 Alandi Markal Road, Village - Markal, Taluka – Khed, India Tel.:
(02135) 308071 / 308072 Area: 11000 Sq.mtrs ·
145-146, 4th Phase, Bommasandra Ind. Area, Tal.- Anekal, Bangalore – 560 099,
Karnataka. Area: 2400 Sq.mtrs ·
Survey No.54/3, Next to Silver Spark, Majara Hossahalli Village, Kasaba Hobli, Dodballapur Taluka, Bangalore Rural Dist. ·
A/2-620, G.I.D.C., Makarpura Ind. Est.,
Makarpura, Vadodara - 390 010. Area: 700 Sq.mtrs ·
J - 266, MIDC Indl. Area, Bhosari , Dist:- Pune-411 026 Area: 2495 Sq.mtrs ·
Plot No. D/43, MIDC, Nasik – 422 010. Area: 2000 Sq.mtrs ·
428, E.P.I.P. HSIDC Industrial Estate, Kundli, Dist-
Sonepat – 131001. State Haryana Area: 1600 Sq.mtrs ·
Plot No.- 661,662,663 Sector – 3 Near Indorama Ram
Mandir Pithampur, District - Dhar
(M.P.) Area: 1260 Sq.mtrs |
DIRECTORS
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Name : |
Mr. D C Mehta |
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Designation : |
Director |
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Name : |
Mr. A C Mody |
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Designation : |
Director |
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Name : |
Mr. J K Sheth |
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Designation : |
Director |
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Name : |
Mr. V S Shah |
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Designation : |
Director |
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Name : |
Mr. V D Goray |
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Designation : |
Director |
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Name : |
Mr. U. G. Mahajan |
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Designation : |
Director |
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Name : |
Mr. A. V. Paranjape |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. H B Patel |
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Designation : |
Chairman |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(As on 31.03.2007) |
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Promoters |
1640450 |
27.53% |
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Bodies Corporate |
625962 |
10.51% |
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Non Resident Indians |
532854 |
8.94% |
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Public |
3159334 |
53.02% |
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Total |
5958600 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of components used by Automobiles, General Machinery, Textile, Food Processing and Heavy Industries. |
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Products : |
Ř Sheet Metal Components Ř Machines, Accessories and Spares Ř Processing Charges |
PRODUCTION STATUS (as on 31.03.2007);-
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Sheet Metal Components |
Tons |
27430 |
23390 |
17183 |
GENERAL
INFORMATION
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No. of Employees : |
Around 50 |
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Bankers : |
· State Bank of India Industrial Finance Branch, Malad (West),
Mumbai – 400 064, Maharashtra, India · Canara Bank Address: Tamarind Lane Branch, Mumbai,
Maharashtra, India ·
Cosmos Co-operative Bank Limited, Gokhale Nagar
Branch, Pune, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Alladi Krishnan and Kumar Chartered Accountants |
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Address 1 : |
31, “Mangalya”, 93, Balgovindas Road, Mahim, Mumbai-400016, Maharashtra, India |
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Address 2 : |
503-504 VIP Plaza, B -7, Veera Industrial Estate, Off Link Road, Andheri
(West), Mumbai 400 053, Maharashtra, India |
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Associates/Subsidiaries : |
Rishi Packers Limited |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5958600 |
Equity Shares |
Rs. 10/- each |
Rs.59.586
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
59.586 |
56.086 |
44.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
196.255 |
138.512 |
43.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
255.841 |
194.598 |
87.600 |
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LOAN FUNDS |
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1] Secured Loans |
368.905 |
171.638 |
105.200 |
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2] Unsecured Loans |
72.643 |
45.036 |
36.800 |
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TOTAL BORROWING |
441.548 |
216.674 |
142.000 |
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DEFERRED TAX LIABILITIES |
28.347 |
22.596 |
0.000 |
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TOTAL |
725.736 |
433.868 |
229.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
439.006 |
237.052 |
140.200 |
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Capital work-in-progress |
88.257 |
52.075 |
0.000 |
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INVESTMENT |
7.696 |
8.368 |
8.400 |
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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 |
77.555
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51.250 |
32.000 |
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Sundry Debtors |
131.275
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80.457 |
52.900 |
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Cash & Bank Balances |
23.655
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9.007 |
7.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
79.010
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73.504 |
56.000 |
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Total
Current Assets |
311.495
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214.218 |
148.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
95.698
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46.258 |
50.900 |
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Provisions |
26.519
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32.318 |
16.300 |
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Total
Current Liabilities |
122.217
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78.576 |
67.200 |
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Net Current Assets |
189.278
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135.642 |
80.900 |
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MISCELLANEOUS EXPENSES |
1.499 |
0.731 |
0.100 |
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TOTAL |
725.736 |
433.868 |
229.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
506.804 |
339.891 |
267.300 |
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Other Income |
2.289 |
1.990 |
1.600 |
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Total Income |
509.093 |
341.881 |
268.900 |
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Profit/(Loss) Before Tax |
42.275 |
43.628 |
21.400 |
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Provision for Taxation |
14.650 |
15.179 |
7.900 |
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Profit/(Loss) After Tax |
27.625 |
28.449 |
13.500 |
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Import Value |
123.684 |
50.264 |
NA |
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Expenditures : |
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Manufacturing Expenses |
330.401 |
225.500 |
0.000 |
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Administrative Expenses |
20.275 |
14.108 |
17.100 |
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Raw Material Consumed |
0.000 |
0.000 |
140.000 |
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Excise Duty |
0.000 |
0.000 |
30.800 |
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Increase/(Decrease) in Finished Goods |
[13.006] |
[11.134] |
[7.000] |
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Salaries, Wages, Bonus, etc. |
63.438 |
31.485 |
18.300 |
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Selling and Distribution Expenses |
6.435 |
7.046 |
0.000 |
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Interest |
25.901 |
11.274 |
8.000 |
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Power & Fuel |
0.000 |
0.000 |
8.000 |
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Miscellaneous Expenses |
0.000 |
0.000 |
0.200 |
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Depreciation & Amortization |
33.374 |
19.852 |
14.100 |
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Other Expenditure |
0.000 |
0.000 |
18.000 |
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Total Expenditure |
466.818 |
298.131 |
247.500 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type
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1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
164.800 |
233.800 |
291.600 |
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Other Income |
0.600 |
0.500 |
1.600 |
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Total Income |
165.400 |
234.300 |
293.200 |
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Total Expenditure |
130.800 |
188.100 |
236.200 |
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Operating Profit |
34.600 |
46.200 |
57.000 |
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Interest |
11.000 |
16.100 |
18.500 |
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Gross Profit |
23.600 |
30.100 |
38.500 |
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Depreciation |
11.300 |
13.600 |
13.700 |
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Tax |
4.300 |
5.600 |
8.500 |
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Reported PAT |
8.000 |
10.900 |
16.300 |
KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.46 |
1.27 |
1.35 |
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Long Term Debt-Equity Ratio |
1.01 |
0.91 |
0.96 |
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Current Ratio |
1.15 |
1.35 |
1.41 |
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TURNOVER RATIOS |
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Fixed Assets |
1.33 |
1.45 |
1.47 |
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Inventory |
9.15 |
9.36 |
11.21 |
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Debtors |
5.56 |
5.84 |
6.59 |
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Interest Cover Ratio |
2.53 |
4.66 |
3.68 |
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Operating Profit Margin(%) |
17.54 |
19.37 |
16.27 |
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Profit Before Interest And Tax Margin(%) |
11.87 |
14.26 |
11.00 |
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Cash Profit Margin(%) |
10.35 |
12.41 |
10.33 |
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Adjusted Net Profit Margin(%) |
4.69 |
7.30 |
5.05 |
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Return On Capital Employed(%) |
12.64 |
17.34 |
14.64 |
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Return On Net Worth(%) |
12.25 |
20.13 |
15.78 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
OPERATING RESULTS
:
The total income of the Company was 51% higher at Rs.589.100 millions as compared to Rs.389.200 millions in the previous year. The EBID as a % of net sales has gone down to 20% in 2006-07 as compared to 22% in the previous year.
The return on average capital employed has decreased from 12.78% in 2005-06 to
7.29% in 2006-07.
The results are disappointing in view of the capacities created and the
buoyancy in the market. Major shortfall in sales were from the Pune and Nasik
units and were on account of poor order execution. The EOU unit also could not
generate much sales due to lack of orders.
FINANCE
During the year the Company converted 350000 convertible warrants into
Equity Shares @ Rs.101/- per warrant. Consequent upon the issue of Equity shares,
the Share Capital stands increased to Rs.59.586 millions. The money so raised
has been fully utilized for implementation of the Company's expansion plans.
EXPANSION :
Unit II at Pune went on stream during the year. With the commissioning of this unit the Company now has complete fabrication facilities at Pune including machining, welding and painting. Company's plant at Sonepat, Haryana went into production in November 06. The plant reached full capacity utilization by Jan'07 and the Company has taken steps to substantially expand the capacity.
During the year the company entered into a MOU with L and T Komatsu Limited. (L
and T K) to set up a plant at Bangalore, to manufacture components for L and T
K's Excavators. This plant was originally scheduled for commissioning by
March'07. However due to some delay in supplies of major imported equipments
this plant went on stream in June 2007. This plant has state of the art Robotic
Welding facilities from Germany and machining equipment from Spain.
Company has acquired additional land at Baroda and Savli in Gujarat, Pithampur
in M.P. and Doddabalapur, Bangalore for further expansion plans.
Some of the expansions will be commissioned in the year 2007-08.
CURRENT YEAR
Sales during first two months of the Current Year are at Rs.108.700 millions as compared to Rs.71.500 millions during the first two months of the previous year.
MARKETS :
The market for the Company's products and services continues to be very good. Rishi Laser's major customers have an increasing order book and are constantly looking towards sub-contractors for increasing supplies. Large numbers of the Company's customers are suppliers to the infrastructure sector like
Construction, Mining, Power Plant, Railways etc. With increased investment in
the infrastructure sector, their customers are flush with orders. This augers
well for their Company. To cater to this sector the company is taking various
steps including purchase of specialized equipment catering to this sector, acquiring
technical expertise in heavy fabrication involving high quality welding,
designing and fabrication of special toolings and fixturing. Company is also
working towards having tie-ups with large MNC's for large continuous supplies
as also to set up exclusive plants for them.
Business
Overview
The Company is moving from a flat steel part supplier towards becoming a fabrication subcontractor. Substantial portion of the fabrications and assemblies are for the Construction Equipment industry and the Electricals and Power sector equipment manufacturers. This sector is growing at 40% annually. With infrastructure spending expected at Rs.1.500 millions in the 11th Plan (April 2007 – March 2012) the order books of every major infrastructure equipment supplier is growing massively. They are targeting a miniscule part of this business. Large steel processing capacities have been set up by Subject to supply the basic components which go into the fabrications. However the conversion of these components into assemblies is a skilled-labour intensive process. Also the heavier fabrication business requires very good infrastructure by way of large fabrication bays, cranes and material handling facilities.
Towards this the Company has invested in large fabrication shops with cranes.
The Company currently has a combined total of 20,000 m2 of factory covered
area.
The Company has secured two major project based orders from European Companies,
which are global leaders in their business. One order is for the supply of material
handling system in a cement plant and another is for a paint shop in a new
Automotive plant. This project based business also has good potential and will
add to the capabilities of the Company.
Industry Structure and Development
The steel fabrication and heavy machining sector in India is
still very small by international standards. This narrow production base is
proving to be a big hindrance in the scaling up of Engineering majors, as they
are not able to outsource fabrications to the degree required. The order
backlogs of Engineering major L and T is Rs. 36,882 crores and BHEL is Rs.
500000.000 millions as on 31/03/07. This is not necessarily a good thing,
because longer delivery period forces customers to look elsewhere for supplies.
Today, because of global boom in infrastructure spending, the order books of
all equipment majors are full. Should there be a slackening in the overseas
markets, the goods will get diverted to India and will create huge competitive
pressures on the Indian Engineering Companies.
The classic example is of Suzlon India. This windmill manufacturing giant is
one of the few Indian Companies of global size and is moving towards global
leadership position. However, because of lack of capacities with vendors and
their abilities to scale up, Suzlon is itself putting up large capacities for
fabrication, machining etc. to take care of its increasing requirements.
The point here is, that to scale up production capacities rapidly, will require
massive investments. This will either have to be done to a great extent by the
Engineering giants or by its vendors. The vendors have limitations of finance,
technology, managerial strengths etc. Unless the large company supports the
vendor strongly with finance, technology, skill development it will not be
possible for the vendor to scale up to the extent required.
In their opinion the structure of the Industry will have to change and there
will have to be closer collaboration between the large engineering Companies
and its suppliers. Unless this is done the suppliers cannot scale up and
fulfill the large needs of the customers. The alternate of course, is for the
Engineering majors to invest and do lot more things in-house.
This does not seem to be the trend. Keeping this in mind, subject is working to establish closer relationship with some of the large Engineering Companies in the targeted sectors.
To some extent the general engineering industry is at a stage like the
automotive industry was in the 1990's. It's only through investment in vendor
companies, having tie-ups etc. that the vendors scaled up and in turn helped
their customers scale up.
Subject has eight plants spread over Haryana, Gujarat, Maharashtra and
Karnataka.
The Company has 11 Laser Cutting Machine (LCM), 13 Press Brakes and 2 Turret Punch Press (TPP). This is likely to go up by 50% in 2007-08. The Company's first Robotic Welding System (RWS) has gone into production in early 2007-08 and they plan to add another four RWS in 2007-08. A few other companies are also investing in these kind of facilities but in their opinion it is not enough, compared to the demand.
The increasing focus on supply to the Construction Equipment (CE) sector has
helped in increasing sales to this sector. In 2006-07 the Company signed a MOU
with L and T Komatsu Limited. for supply of components for their entire range
of excavators. This plant has gone on stream in early 2007-08.
The Company is also supplying to JCB, L and T Case Limited, Caterpillar India, Ingersoll Rand and BEML all of whom are manufacturers of Earthmoving machinery.
Large investments are expected to be made in the railways and metros. Subject
is gearing up to supply the steel fabrications for this sector. This business
is very small at the moment but is expected to grow substantially in the coming
years. Similarly, the Power Generation equipment business is expecting to see
order execution of Rs.3840000.000 millions in the next five years. This will
require large amount of steel fabrications. Their Company is gearing up to
increase supplies to this sector by setting up facilities exclusively catering
to this sector.
The market for steel assemblies and fabrications is growing at very fast pace
due to two reasons.
a) Robust growth in engineering industry.
b) Increasing trend of outsourcing by large Companies due to
their need to concentrate on their core activities.
Subject is continuing its investments in equipments and infrastructure suitable
to cater to their customers' requirements. From the current level of 28 CNC
machine installations the company hopes to cross 100 CNC machine installations
by 2009-10.
Opportunities and
Threats
Opportunities :
Spending on infrastructure to the tune of Rs.15000000.000 millions in the 11th five year plan, will create huge opportunities for equipment majors catering to this sector. This in turn will increase their purchases of parts and assemblies from their suppliers. This presents the company with a huge opportunity.
Exports :
The Company could not realise export potential in 2006-07. The number of enquiries received is very large but order conversion was very poor.
Company has made a break through with one global engineering
giant in the mining equipment sector.
The year 2007-08 should see a substantial jump in exports. With steel
processing costs increasing substantially in Europe, many companies are looking
to source these items from India.
Threats :
Rupee appreciation against major international currencies. Continued growth in the I.T. sector is a threat, as they suck up most of the available Engineering talent.
Operational Performance
The Company could not realise its full potential as well as
take advantage of the booming conditions in its markets. This was mainly due to
poor project execution as well as slow conversion of enquiries into
business.
Turnover, net of excise duties, increased by 49% to Rs.506.800 millions from
Rs.339.900 millions in 2005-06. The growth in sales was 20% lower than budgeted
and was on account of lower sales at Pune as well as exports.
Employee cost increased by 115% from Rs.28.000 millions to Rs.60.200 millions.
This increased the employee cost as a % of sales from 8.2% in 2005-06 to 11.8%
in 2006-07. Substantial efforts are needed to improve productivity to manage
this cost at a reasonable level. This cost has shot up substantially in the
past two years on account of three reasons. The organization is being scaled up
for substantially larger operations. Large salary hikes have been made to keep
the scales in line with the market. The cost has also shot up due to lower than
expected sales at some plants, as also the ramping up time of the new plants.
They expect this cost to stabilize as a %, at the current levels.
Profit before interest and depreciation increased by 36% to Rs.101.500 millions
from Rs.74.800 millions in 2005-06. The EBIDTA margin decreased by 200 basis
points. The earnings did not increase proportionately with sales, and went down
by 2%, due to the disproportionate increase in employee costs. The net profit
was also lower due to the increased provisioning of Interest and Depreciation
by Rs.28.100 millions in the year 2006-07. At the current cost structure levels
the sales have to grow substantially for the profit to go up. With large
capacity creation and robust demand they do expect that will happen
Balance sheet size of the Company increased to Rs.725.700 millions in 2006-07
from Rs. 433.900 millions in 2005-06.
This increase was due to significant Capital Expenditure of Rs.238.100 millions
to set up new facilities at Sonepat and Bangalore, as well as expansion at
Pune.
The gross fixed assets have gone up from Rs.326.000 millions in 2005-06 to
Rs.561.300 millions in 2006-07. The fixed assets turnover ratio has dropped
from 1.18 times in 2005-06 to 0.96 in 2006-07. This is much lower than the
ratio of 1.69 achieved in 2004-05. Substantial capital expenditure has been
incurred in each of the last two years and the projects have not contributed to
sales fully. This situation is expected to be corrected in 2007-08 with
substantially better utilization of the Fixed Assets added in the last two
years. The Share Capital of the Company increased by Rs.3.500 millions
consequent to the conversion of 3.5 lac warrants at a cost of Rs.101/- The
reserves of the Company increased to Rs.196.300 millions as at 31.03.07 from
Rs.138.500 millions as on 31.03.06.
Ratios :
The Gross Income of the Company has increased from Rs.114.600 millions in 2002-03 to Rs.589.100 millions in 2006-07 at a CAGR of 50%.
The ROCE has decreased from 12.78% in 2005-06 to 7.29% in 2006-07. The Operating profit margin as % to net income has decreased from 22.02% in 2005-06 to 20.03% in 2006-07.
Fixed Assets:
· Land
· Factory Building
· Plant and Machinery
· Electrical Installations
· Tools and Dyes
· Furniture
· Fixtures
· Office Equipments
· Vehicles
OTHER INFORMATION:
Contingent
Liabilities:
31.03.2007 31.03.2006
1) Contingent Liabilities (Rs.
in millions)
a) Corporate
Guarantee given .to IDBI Rs.
0.000 32.000
on behalf of Rishi
Packers Limited.
b) (i) For Unit II
Pune Land
The Company
received letter dated 04/01/2006 from Sales Tax Authority regarding outstanding
sales tax liability
amounting to Rs.13.319
millions on the property located at Gat No.229, Alandi-Markal road,
village-Markal, Tal. Khed, Distt:Pune. The said property was acquired by the
company from Cosmos Bank Co-operative Limited, Pune vide Memorandum of
Understanding dated 18/11/2005 and reconfirmed by deed of confirmation dated
24/02/2007.
As per the
agreement, Cosmos Bank being the absolute owner of the property under SARFESI
Act, 2002, transferred the same to the company for a total consideration of
Rs.14.200 millions free of all encumbrances and further agrees to discharge all
encumbrances on the said property if any, to make it free from all
encumbrances.
In the light of
the above, management of the company is of the opinion that no liability arises
on the company on
account of above
outstanding sales tax
b) (ii) For Unit
III Pune Land
The Company has
acquired immovable property located at Gat No. 215, 216 at Village Markal ,
Aland! Markal Road, Tal- Khed, Dist - Pune vide purchase deed executed on 28th
October 2005 between the Company and Mr. Dashrat DagduGodse, Mr Subash Dagdu
Godse , Mr Ramdas Dagdu Godse, Mr Ramesh Dagdu Godse, Smt. Dopadiai Rangnath
Godse and Smt. Laxmi Bai Dagdu Godse ("Transferors") for total
consideration of Rs. 0.450 millions. This plot is an approach road for
Company's 100% EOU plant at Gat No, 218, 219 at Village Markal , Aland! Markal
Road, Tal-Khed , Dist - Pune.
One of the
relative of the transferors had filed case in the Civil and Criminal Court,
Rajgurunagar, Dist.- Pune claiming ownership on the above property at Gat No.
215, 216 used as an approach road . The honourable court has issued the order
on 28.02.06 in the favour of the Company and has rejected claim of ownership of
the said relative The said relative has preferred an appeal in District Civil
Court, Pune against the order of Civil and Criminal Court, Rajgurunagar
Dist-Pune claiming stay against construction and use of land at Gat No.
215-216. In
response to the
said appeal the Company has replied to the court on 05.06.06 that road work has
already been
completed and the
company is already utilising the above plot.
WEBSITE DETAILS:
Subject, an ISO 9001:2000 company, manufactures fully-integrated sheet
metal and heavy metal components and assemblies using German-made Trumpf CNC
laser-cutting machines, CNC Bending machines and CNC Plasma / Flame Cutting
machines.
The availability of facilities for Welding, Powder-Coating, Painting, Plating
and Assembly under one roof enables them to deliver finished products at short
notice.
They have a skilled work force of over 150 employees with over 20 Engineers.
Delivering custom-made products in time has been their tradition.
They cater to a wide range of industries including Automobile,
Electrical Switchgear, Chemical and Food Processing, Telecommunication and
Instrumentation, Textile and General Engineering.
The Company was established in 1995 and now has state-of -the-art steel
processing facilities at Pune, Bangalore, Vadodara and Nashik.
From programming and designing to supply of complete painted fabrication, they
can provide TOTAL Solutions.
Rishi is the largest Laser job shop in India having FIVE LASER CUTTING MACHINES
CODE OF CONDUCT:
Preamble
All
Directors and Employees must act within the bounds of the authority conferred upon
them and with a duty to make and enact informed decisions and policies in the
best interest of the Company and its shareholders / stakeholders.
With a view to maintain the high standards that the Company requires,
the following rules/code of conduct should be observed in all activities of the
board and the employees for the purpose of the Code. The company appoints the
company secretary as a compliance officer, who will be available to directors
and senior management to answer questions and to help them comply with the
code.
Honesty and Integrity
All Directors and Employees shall conduct their activities, on behalf of
the company and on their personal behalf, with honesty, integrity, and
fairness. All directors will act in good faith, responsibly, with due care,
competence and diligence, without allowing their independent judgment to be
subordinated. Directors will act in the best interest of the Company and
fulfill their fiduciary obligations.
Conflict of Interest
Employees (including Whole Time Directors)of the Company shall not
engage in any business, relationship or activity, which may be in conflict of
interest of the Company. They should not engage in any activity/employment that
interferes with the performance or responsibility to the company or is
otherwise in conflict with or prejudicial to the company.
Directors and their immediate families should not invest in a company,
customer, supplier, developer or competitor and generally refrain from
investments that compromise their responsibility to the company.
Directors should avoid conducting company business with a relative or with a
firm/company in which a relative/related party is associated in any significant
role.
If such related party transaction is unavoidable, it must be fully
disclosed to the Board or to the Managing Director of the company.
Compliance
Every
Employee is required to comply with all applicable laws, rules and regulations,
both in letter and in spirit. In order to assist the company in promoting
lawful and ethical behavior, directors must report any possible violation of
law, rules, regulation or the code of conduct to the company Secretary.
Other Directorships
The company feels that serving on the boards of directors of other
companies may raise substantial concern about potential conflict of interest.
And therefore al Directors must report/disclose such relationships to the Board
on an annual basis. It is felt that service on the board of a direct competitor
is not in the interest of the Company.
Confidentiality of information
Any information concerning the company’s business. its customers,
suppliers etc., which in not in the public domain and to which the director has
access or possesses such information, must be considered confidential and held
in confidence, unless authorized to do so and when disclosure is required as a
matter of law. No director shall provide any information either formally or
informally, to the press or any other publicity media, unless specially
authorized.
Prevention of Insider Trading
No director of the company shall drive benefit or assist others to
derive benefit by giving investment advice from the access to and possession of
information about the company, not in public domain and therefore constituting
insider information. All directors will comply with the prevention of insider
trading guidelines as issued by SEBI.
Gifts and Donations
No director of the Company shall receive or offer, directly or
indirectly, any gifts, donations, remuneration, hospitality, illegal payments
and comparable benefits which are intended (or perceived to be intended) to
obtain business (or uncompetitive) favours or decisions for the conduct of
business. Nominal gifts of commemorative nature, for special events may be
accepted and reported to the Board.
Protection of Assets.
Directors must protect the company’s assets and information and may not
use these for personal use, unless approved by the Board.
Accounting Standards
Company shall prepare and maintain its accounts fairly and accurately in
accordance with the accounting and financial reporting standards which
represent the generally accepted guidelines, principles, standards, laws and
regulations of the country in which the company conducts its business affairs.
Internal accounting and audit procedures shall fairly and accurately
reflect all of the company's business transactions and disposition of assets.
All required information shall be accessible to company auditors and other
authorised parties and government agencies. There shall be no willful omissions
of any company transactions from the books and records.
Quality of products and services
Company shall be committed to supply goods and services of the highest
quality standards backed by efficient after-sales service consistent with the
requirements of the customers to ensure their total satisfaction. The quality
standards of the company's goods and services should meet the required national
standards and the company should endeavor to achieve international standards.
Shareholders
Company
shall be committed to enhance shareholder value and comply with all regulations
and laws that govern shareholders' rights. The board of directors shall duly
and fairly inform its shareholders about all relevant aspects of the company's
business and disclose such information in accordance with the respective
regulations and agreements
Periodic Review
Once every year or upon revision of this code, every director must
acknowledge and execute an understanding of the code and an agreement to
comply. New directors will sign such a deed at the time when their directorship
begins
Services:
CNC Laser Cutting Machines
are used to cut material such as Mild steel, Stainless steel and Aluminium in a
very economical and fast way. It provides accuracy and at the same time it
gives freedom to designers to design any intricate shape, since the cutting
will not lead to distortion. Inputs of any CAD file via e-mail is possible.
Their
CNC Laser cutting machines, CNC Bending machines, CNC Plasma / Flame Cutting
machine, diverse welding and comprehensive surface coating capacities make sure
that they execute the most critical jobs with precision and in time. Always.
Their machines are
state of-the art machines from Trumpf [Germany] and Bystronic [Switzerland] the
two leading manufacturers of such machines globally. Various machines catering
to different sheet sizes and thickness are available with us.
Laser cutting machines capacities are:
MS 25mm, SS 16mm, Alu. 6mm
Bed size upto - 2000 mm X 4000 mm.
A total of EIGHT CNC laser cutting machines gives them enormous capacity and
flexibility to deliver diverse jobs rapidly.
CNC machine
bending is a highly automated bending process. It allows high dimensional
accuracy and design flexibility. The process provides excellent repeatability.
CNC Machines
capacities are from 110 T to 350 T and bed size upto 4000 mm.
This CNC machine having
both Plasma and Flame cutting heads to give greater flexibility, wide range of
cutting capacity and large processing area.
The machine
provides high accuracy, less distortion and higher quality cutting.
- Plasma technology from Hypertherm, USA.
- Gas cutting technology from Messer, Germany.
CNC Plasma / Flame Cutting Machine Capacity:
10mm to 100mm in MS and 25mm in SS
Bed Size: 3000mm x 6500 mm.
Various types of
welding facilities enable them to serve industry very well. The availability of
such varied equipments ensures that they meet all the welding needs.
· MIG Welding
· TIG Welding
· Projection Welding
· Welding
· CO2 Welding
· Arc Welding
Modern
surface-coating facility makes sure that their products look the best and last
long. From powder coating, liquid painting, zinc coating, plating you get the
best deal in the shortest possible time.
Sand Blasting
Sand
Blasting process helps them to remove oil and rust layers on the surface of the
product which ensures quality in surface coating.
Pre Treatment
In
line 7 tank cleaning is a chemical process. Pre treatment ensures the rust free
surface to improve quality and better paint adhesion.
Zinc Coating
This
process makes the surface of the product corrosion resistant. The undercoating
layer is produced by this process which helps in better adhesion of paints.
This is a mechanical process and is more environment friendly.
Power Coating
Power
coating having conveyerised system is the additional feature.
Major
Industries and Clients catered to...
Automotive
Sector
·
Mahindra and Mahindra
Limited.
·
Tata Motors.
Acoustic Enclosures
·
Kirloskar Oil Engines
·
Atlas Copco
Chemical and Food Processing
Machinery
·
Schneider Electric
·
Siemens
·
C.G. Lucy
Earth Moving Machinery
·
Caterpillar India
·
Ingersoll Rand
·
L and T Komatsu
·
LandT Case
·
JCB
Electronics and Business Machines
General Engineering
·
Sulzer India Limited
·
Thermax Limited
·
Cummins India Limited.
·
ACC Cement
Pollution Control Equipments
Material Handling
CMT REPORT
(Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.39.73 |
|
UK Pound |
1 |
Rs.77.34 |
|
Euro |
1 |
Rs.57.80 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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 and 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 and 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 |
|