MIRA
INFORM REPORT
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Report Date : |
22.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
RATHI UDYOG LIMITED |
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Registered Office : |
1/3, Khirki Village, Malviya
Nagar, New Delhi-110017 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.12.1971 |
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Com. Reg. No.: |
5905 |
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CIN No.: [Company
Identification No.] |
L27109DL1971PLC005905 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR08287G |
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PAN No.: [Permanent
Account No.] |
AAACR1435K |
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Legal Form : |
A public limited liability
company. The company’s shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturer of Rebars and Wire Rods |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 5100000 |
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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.
Directors are reported as experienced, respectable and having satisfactory
means of their own. Trade relations are fair. Business is active.
Fundamentals are strong and healthy. Payments are reported as usually correct
and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
1/3,
Khirki Village, Malviya Nagar, New Delhi-110017 |
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Tel. No.: |
91-11-32461949 |
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Fax No.: |
91-11-29541214 |
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E-Mail : |
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Website : |
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Head Office : |
24/1A Mohan Cooperative Industrial Estate,
Mathura Road, New Delhi-110044 |
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Tel. No.: |
11-32461949, 26991060 |
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Fax No.: |
91-11-26991063 |
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Corporate Office / Factory 1 : |
A-3, South of G.T. Road
Industrial Area, Ghaziabad-201009 (U.P.) |
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Tel. No.: |
91-120-2840346–50 |
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Fax No.: |
91-120-2840351/52/53 |
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E-Mail : |
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Factory 2 : |
Village Potapali-Sikirdi,
District Sambalpur (Orissa) |
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Tel. No.: |
91-663-2541170,
2701001 |
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Fax No.: |
91-663-2541170 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Pradeep Rathi |
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Designation : |
Managing Director |
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Date of Birth/Age : |
49 Years |
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Qualification : |
B. Com. |
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Experience : |
26 years |
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Date of Appointment : |
27.08.1994 |
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Name : |
Mr. Punam Chand Rathi |
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Designation : |
Chairman and Executive Director |
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Date of Birth/Age : |
71 years |
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Experience : |
50 years |
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Date of Appointment : |
17.12.1971 |
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Name : |
Mr. Shree Kumar Daga |
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Designation : |
Non Executive and Independent Director |
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Date of Birth/Age : |
52 years |
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Qualification : |
Masters Degree in Mechanical Engineering |
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Experience : |
26 years |
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Date of Appointment : |
March 2003 |
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Name : |
Mr. Prem Narayan Varshney |
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Designation : |
Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
Post graduation degree in Economics from Agra University. |
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Experience : |
31 years |
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Name : |
Mr. Dwarka Das Lakhotia |
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Designation : |
Non Executive and Independent Director |
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Date of Birth/Age : |
32 years |
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Qualification : |
Master’s degree in Commerce from CCS University |
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Experience : |
12 years |
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Date of Appointment : |
March 2003 |
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Name : |
Mr. Ranjit Khattar |
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Designation : |
Non Executive and Independent Director |
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Date of Birth/Age : |
45 years |
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Qualification : |
Chartered Accountant |
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Experience : |
20 years |
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Date of Appointment : |
February 2005 |
KEY EXECUTIVES
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Name : |
Mr. Ashok K Agarwal |
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Designation : |
CFO and Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
10034921 |
41.28 |
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Mutual Funds |
751245 |
3.09 |
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Financial
Institutions/Bank |
4540774 |
18.68 |
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Foreign
Institutional Invest. |
391000 |
1.61 |
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Bodies Corporate |
2097559 |
8.63 |
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Individuals |
6395429 |
26.31 |
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NRI |
45737 |
0.19 |
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Clearing Members |
51446 |
0.21 |
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Total |
24308111 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Rebars and Wire Rods |
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Brand Name : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Steel Bars / TMT |
MT |
125000 |
125000 |
-- |
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Steel Ingot / Billet |
MT |
42500 |
42500 |
-- |
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Steel Bars [TOR/TMT] |
MT |
-- |
-- |
98702 |
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SS Flate / Wire Rod |
MT |
-- |
-- |
9347 |
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MS Billet |
MT |
-- |
-- |
6392 |
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SS Billet |
MT |
-- |
-- |
32117 |
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SS Flat Rolled from others |
MT |
-- |
-- |
19179 |
GENERAL
INFORMATION
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Customers : |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. Lai and Company Chartered Accountants |
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Address : |
III-A.49 Nehru Nagar, Ghaziabad- 201001 (U.P.), India |
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Associates/Subsidiaries : |
Rathi Iron and Steel Industries Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4708111 |
Equity Shares |
Rs. 10/- each |
Rs. 47.081
Millions |
|
19600000 |
Equity Shares |
Rs. 10/- each |
Rs. 196.000
Millions |
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Rs. 243.081 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 |
243.081 |
47.081 |
47.100 |
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2] Share Application Money |
0.000 |
400.000 |
0.000 |
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3] Reserves & Surplus |
1044.295 |
238.283 |
171.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1287.376 |
685.364 |
218.800 |
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LOAN FUNDS |
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1] Secured Loans |
1351.181 |
610.025 |
169.300 |
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2] Unsecured Loans |
6.407 |
13.664 |
114.200 |
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TOTAL BORROWING |
1357.588 |
623.689 |
283.500 |
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DEFERRED TAX LIABILITIES |
106.207 |
50.513 |
0.000 |
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TOTAL |
2751.171 |
1359.566 |
502.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
634.767 |
549.303 |
281.700 |
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Capital work-in-progress |
1494.610 |
299.890 |
21.000 |
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INVESTMENT |
9.471 |
9.471 |
1.900 |
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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 |
408.613
|
345.786 |
114.600 |
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Sundry Debtors |
276.509
|
177.570 |
92.300 |
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Cash & Bank Balances |
37.130
|
33.996 |
11.000 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
296.768
|
303.502 |
60.400 |
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Total
Current Assets |
1019.020
|
860.854 |
278.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
392.430
|
355.392 |
64.600 |
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Provisions |
14.267
|
4.560 |
16.000 |
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Total
Current Liabilities |
406.697
|
359.952 |
80.600 |
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Net Current Assets |
612.323
|
500.902 |
197.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2751.171 |
1359.566 |
502.300 |
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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 |
3994.811 |
2997.861 |
2821.400 |
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Other Income |
4.058 |
1.103 |
2.100 |
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Total Income |
3998.869 |
2998.964 |
2823.500 |
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Profit/(Loss) Before Tax |
107.570 |
120.128 |
46.100 |
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Provision for Taxation |
36.541 |
44.176 |
16.600 |
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Profit/(Loss) After Tax |
71.029 |
75.952 |
29.500 |
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Expenditures : |
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Manufacturing Expenses |
3766.846 |
2912.505 |
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Administrative Expenses |
20.604 |
17.769 |
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Selling Expenses |
61.375 |
19.907 |
2777.400 |
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Interest and Finance Charges |
41.917 |
27.024 |
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Depreciation & Amortization |
32.899 |
22.466 |
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Total Expenditure |
3923.641 |
2999.671 |
2777.400 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1068.600
|
929.800
|
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Other Income |
|
0.900
|
2.200
|
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Total Income |
|
1069.500
|
932.000
|
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Total Expenditure |
|
1008.100
|
878.100
|
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Operating Profit |
|
61.400
|
53.900
|
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Interest |
|
14.800
|
15.900
|
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Gross Profit |
|
46.600
|
38.000
|
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Depreciation |
|
9.100
|
11.200
|
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Tax |
|
4.300
|
3.700
|
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Reported PAT |
|
33.200
|
23.100
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.78
|
2.53 |
1.04 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.69
|
4.01 |
1.63 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.50
|
8.52 |
8.23 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.18 |
0.21 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.37
|
1.44 |
1.66 |
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Current Ratio (Current Asset/Current Liability) |
|
2.51
|
2.39 |
3.45 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Incorporated on 17th December 1971, subject was
promoted by late Shri G D Rathi and his sons, belonging to Delhi-based Rathi
Group of Industries. The promoters are well known in the Steel Industry, their
major product of the company are marketed under the brand name "RU
TOR". The company is engaged in the rolling of TOR steel, alloy steel and
stainless steel flats
The other companies of the P C Rathi group of industries are Rathi Ispat
Limited (RIL) and Rathi Grapic Technologies Limited (RGTL). RIL manufactures
alloy steel, stainless steel, concasts, billets, gothic ingots, carbon and
alloy steel castings upto 35 tonnes a piece, with an installed capacity of 1.50
lakh tpa. RGTL has been promoted in technical collaboration and financial
participation with Raven Industries Inc of the US and the Rajasthan State
Industrial Development and Investment Corporation Limited (RIICO) at an outlay
of Rs. 143 Millions.
The existing unit of the company is located in a complex at Ghaziabad in Uttar
Pradesh. The land admeasuring 56,124 square meters was alloted to the company
by UPSIDC. The existing plant and machinery consists of two rolling mills, a
semi-automatic 16 stand continuous bar re-rolling mill operating at a finishing
speed of 18 meters per second for rolling of wire rods and TOR steel and a
cross country merchant mill TOR rolling stainless alloy steel flats.
The company had set up a new 6 stand re-rolling unit for rolling of stainless
steel and chrome steel rounds. squares and angles for the export market. The
capacity of the mill is 40,000 mtpa. The company is also planning to set up a
ferro alloys manufacturing complex of 30,000 tpa capacity to basically meet its
captive consumption requirements of ferro chrome, ferro silicon and ferro
manganese.
The company has been awarded the prestigious ISO 9002 Certification of
international repute for its quality management system and in 2001 the company
obtained ISO 14001 for Environmental Management System.
The company is planning to go for diversification by manufacturing TMT under
technical collaboration of Henningsdorfer Stahl Engineering Germany. The
project is expected to be implemented in the fag end of 2002. As TMT is
substituting for Tor Steel resulting demand for Tor Steel, the company has
focused on diversification. This project has been financed by way of Term Loan
from Bank of Baroda and balance by Internal accruals.
OPERATIONAL
REVIEW:
During the year under review, the company produced 98702 MT of Steel Bars
(TOR/TMT), 9347 MT of SS Flats/SS Wire Rod and 38509 MT of SS Billets/MS
Billets as against production of 80165 MT of Steel Bars (TOR/TMT) 1137 MT of SS
Flats/SS Wire Rod and 9893 MT of SS Billets/MS Billets, during the
corresponding period of last year.
FUTURE OUTLOOK:
In order to obtain more efficient operations, the company will be focusing on
the Orissa project in the future and will always be looking at the possibility
of expanding the capacity in both steel and power along with vertical and
horizontal integration by using the most advanced technology and the most
cost-effective route. The Company shall strive to maintain its leadership in
the longer segment of steel products and will explore the possibility of
enhancing the rolling capacity by setting up a rolling mill at Sambalpur to
cater to the growing demand from infrastructure sector in Central and Eastern
India. The Company believes that there is tremendous potential in Orissa
project as both the basic raw materials i.e. iron ore and coal are available in
abundance in the vicinity to the project site at Sambalpur.
A chain of value addition from iron ore, sponge iron, power, mild and
value-added steel will lead to tremendous synergy and will enable us to service
our customers better by providing high quality products at competitive
prices.
Besides Orissa project the company's endeavour to increase the production /
productivity and add value added products to its existing operation at
Ghaziabad shall be continued. The company in the process commissioned
re-heating furnace balancing equipments which has increased the production at
Ghaziabad operations. The company is further looking for modernization of its
existing rolling mill, upgradation of steel melting shop along with improvement
in industrial infrastructure facility including material storage and handling
facility to cater to produce high quality spiral steel wire rods. The demand
and margin for this product is lucrative. The funding for these
projects/expansion shall be mixed out of internal accruals/equity & debt. The
equity contribution can be in combination of preferential allotment of equity
shares/convertible warrants or any other suitable instruments to strategic
investors/shareholders including promoters.
STATUS
OF IMPLEMENTATION OF ORISSA PROJECT:
The progress of implementation of its green field integrated steel complex at
Orissa comprising of manufacturing of Sponge Iron, M.S. Billets and Captive
Power Generation based on Waste Heat recovery and residual coal fines is
delayed in spite of initial speedy took off. The delay is mainly on account of
delay in supply of critical equipments, heavy rainfall in Orissa and scarcity
of skilled and unskilled contractual labour. The project is expected now to be
completed within the IIIrd quarter of the current financial year.
MANAGEMENT
DISCUSSION AND ANALYSIS:
BUSINESS REVIEW:
This year also there was a strong demand for products of the company from the
construction, infrastructure, engineering and auto sectors. With the current
growth in the economy, the company expect the same trend to continue, as the
company is primarily focusing on the long segment of steel products which have
application in the construction, engineering industry.
The commissioning of integrated steel complex at Orissa will further strengthen
the position of the company in term of integration from sponge iron, power and
steel.
TECHNOLOGY:
The Company is adopting latest technologies available and made applicable in
rolling mills world-wide and, therefore, diversified into manufacture of TMT
steel bars by adopting THERMEX(R) technology under technical collaboration with
Hennigsdorfer Stahl Engineering GmbH, Germany. The technology is proven and
well tested worldwide. The TMT process does not require twisting of bars
without losing strength and properties. The TMT bars are recommended for use in
earthquake prone areas. The Company is also successfully operating the NO TWIST
BLOCK MILL to roll value added steel wire rods. The state of the art facilities
to manufacture stainless steel has also been successfully operating at
Ghaziabad.
For Orissa project the Company has tied up with Orissa Sponge Iron Limited for
supplying technical know how for the sponge iron process. Further the Company
has procured equipments and machinery from the most renowned manufacturers for
the power plant and the steel melting shop.
FIXED
ASSETS
- Land Leasehold
- Boundry Wall
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Vehicles
- Computers
AS PER
WEBSITE
Profile
The Group owes its presence in the steel industry to the
farsightedness of late Seth Gordhan Das Rathi. He setup a small re-rolling mill
in Delhi in the early 40’s. Since then the Group has grown continuously. Shri
Gordhan Das Rathi’s commitment to quality, integrity, honesty, and growth is
being followed till date.
Their Company is headed by Shri Punam Chand Rathi who is well known in the
Steel Industry with experience of over five decades in Steel Melting and
Rolling/Re-Rolling. Their Company is a profit making, dividend paying and
listed company. They are engaged in manufacturing of Rebars and Wire Rods which
are broadly categorized as the Long Products in the Steel Industry. The main
application of their products currently being manufactured, is in the
Construction Industry. Wire rods, another product being currently manufactured
by them are further drawn into wires, which has various industrial
applications.
The Rathi Group was amongst the first to adopt the technology of Tor-Steel in
the country from Tor Istag Steel Corporation, Luxemberg, through the Tor-Steel
Research Foundation in India. The Company’s latest product Thermo-Mechanically
Treated (TMT) Steel has gained popularity in short span of time in the
construction Industry. The state-of-the-art patented “Thermex” water quenching
process makes the Steel earthquake resistant. They are one of the exclusive
licencees for the use of “Thermex” technology in Northern India.
Their Company is an ISO 9001 certified company. They have a very strong and
committed network of dealers, consisting of nearly 800 retail outlets spread
all over Northern India. Such a broad dealer network enables them to ensure
quantitative as well as qualitative up-gradation.
They are constantly making every possible effort to upgrade their technology
and improve their product quality to retain and enhance their market share.
Their Company is conscious of the interest of their stakeholders i.e.
shareholders, the Government, employees and of their customers.
The Company’s group Company viz. Rathi Iron And Steel Industries Limited has
also commissioned a Steel Rolling Mill plant at Pithampur, Distt. Dhar (M.P.).
Their installed capacity together with that of their Group company is about
175000 TPA of rolled products and 40,000 TPA of melting facilities. Their
Company is also setting up facilities for manufacturing value added Alloy Steel
products.
They are also in the process of setting up a backward integration project at
Orissa (Orissa Project) to manufacture Steel Billets through DRI-captive
power-CCM route.
MANAGEMENT
Board of Directors comprises of the following:
Mr. Pradeep Rathi, aged 49 years, Managing
Director, has a career spanning about 26 years in the fields of production planning,
procurement, finance, etc in the Iron and Steel Industry. He holds a degree in
Commerce from Delhi University. He monitors the day to day affairs of the
Company. His expertise lies in the personnel department. He has been on their
Board of Directors since August 27,1994.
Mr. Punam Chand Rathi, aged 71 years, Chairman and
Executive Director, has a career spanning almost 50 years in the Iron &
Steel sector. He is highly recognized in the steel industry for his technical
expertise and administrative capability. He has been on their Board of
Directors since incorporation of the Company.
Mr. Shree Kumar Daga, aged 52 years, holds a Masters
Degree in Mechanical Engineering and has more than 26 years of experience in
various industries. He has been on their Board of Directors since March 2003 as
a Non Executive and Independent Director
Mr. Prem Narayan Varshney, aged 53 years, holds a post
graduation degree in Economics from Agra University. He has more than 31 years of
experience in the field of Human Resource Development. He has been on their
Board of Directors since 1997 and was appointed as an Executive and Independent
Director since April 2005.
Mr. Dwarka Das Lakhotia, aged 32 years, holds a
Master’s degree in Commerce from CCS University and has more than 12 years of
experience in the field of accounting and marketing. He has been on their Board
of Directors as a Non Executive and Independent Director since March 2003.
Mr. Ranjit Khattar, aged 45 years, is a qualified
Chartered Accountant with more than 20 years of experience. He has worked with
various organizations in the capacity of chief financial officer and as a
financial consultant. He has been on their Board of Directors as a Non
Executive and Independent Director since February 2005.
TECHNICAL COMMITTEE FOR THE PROJECTS
The Company has formed a technical committee to implement
the Orissa Project and an on going expansion at Ghaziabad, comprising of senior
technocrats in their respective fields. Dr. P.K. Mohanty chairs the above named
committee.
The Committee includes the following personnel-
Dr. P.K. Mohanty (Chairman) - Dr. P.K. Mohanty is a reputed man in Steel
Industry and holds Doctorate from the University of Utah of USA. He possesses
vast experience and knowledge of Steel industry. Dr Mohanty is also the Trustee
of Tor Steel Research Foundation in India, the supplier of ribbed bar
technology through twisted steel bar known as TOR® Steel.
Mr. M.A. Khan Mr. Mansur Ali Khan holds a Bachelor Degree in Electrical
Engineering. Mr Khan has served OSIL in various capacities, in the production
and maintenance process and was associated in development of the sponge iron
technology i.e. OSIL PROCESS. He is presently heading the Project &
Engineering division of OSIL and was responsible for engineering and erection
of the Billet Plant and Waste Heat Recovery based Power Plant of OSIL.
Mr. R.K. Agrawal – Mr. R. K. Agrawal, holds a degree in B.E. from Thapar
College of Engineering, with about 28 years experience in the field of
Power/Steel/Cement. He has provided his services to the concerns like
Harduaganj Thermal Power Plant of UPSEB, Modi Cement Limited, Bihar Sponge Iron
Limited, Jindal Strips Limited, Bhushan Limited, Prakash Industries Limited
etc. He is responsible for almost all technical aspects of the Orissa Project.
Mr. Rajiv Bhattarya - Mr. Rajiv Bhattarya , a senior
Chartered Engineer, has been associated with the Company for the last 15 years,
and has vast experience in the field of erection, commissioning and managing
Steel Rolling Mills and Melting Furnace plants. He is responsible for
production and renovation/ upgradation of the Plant. The Company’s Ghaziabad
Unit has undertaken several expansion/ diversification schemes under his
supervision and guidance.
PLANTS/ PROJECTS
GHAZIABAD PLANT
The Ghaziabad Plant consists of Steel Rolling Mills having an
installed capacity of 1,25,000 TPA, a high speed No Twist Block Wire Rod Mill
and Steel Melting Shop with 40,000 TPA installed capacity comprising of
Induction Furnace, AOD Converter, Continuous Casting machine and other
facilities for manufacturing high end value- added stainless steel and alloy
steel products. They intend to further add value to the products being
manufactured by them by converting them into bright bars, wires, flanges etc.
ORISSA PROJECT
Considering the Orissa Government’s aggressive efforts for rapid
industrialization of the State and future industrial growth of the Country, the
Company has planned to setup an integrated Steel Project at village
Potapali-Sikirdi, district Sambalpur (Orissa). The Company has already entered
into an MOU with the Orissa Government for setting up the project. The project
comprises of facilities for manufacture of 300,000 TPA Sponge Iron, a Steel
Melting Shop of 5,00,000 TPA, Pig Iron of 200,000 TPA and captive Power Plant
of 50 MW, to be implemented in phases, as per detailed Techno-Economic
Feasibility Report submitted to the Orissa Government. The progress on the
first phase of the project at a project outlay of Rs.2205 Millions, is going on
at full swing and is expected to be completed by September 2006
INDORE PLANT
They intend to make the Orissa plant a primary source of raw material for the
existing rolling mills of the Punam Chand Rathi Group and also for the future
rolling mill plants that they intend to setup all across the country. A chain
of value addition from iron ore, sponge iron, captive power, steel making at
the Orissa plant, to various rolling mills across the country will lead to
tremendous synergy and will enable them to service their customers better by
providing high quality products at competitive prices.
The promoters have also promoted a new company viz. Rathi Iron And Steel
Industries Limited who has installed a Steel Rolling Mill project having
capacity of 50,000 TPA at Pithampur Industrial Area, Distt. Dhar (M.P.). The
production facilities are similar to that of Ghaziabad project and are well
equipped with the latest technologies for producing quality CTD and TMT bars.
The commercial production has already taken place and the products are being
well accepted in the market.
MARKETING
They market their product Steel bars under the brand “RATHI”, which is a
popular brand and preferred choice of consumers in Northern India for its
quality and reliability. However, the “RATHI” Trademark belongs to the Rathi
Foundation, a syndicate of the Rathi Group, which includes all members of the
erstwhile Rathi family. The brand enjoys high goodwill and premium in the
market.
They manufacture TMT bars using the “THERMEX” technology, which is patent of
the German collaborator M/s Hennigsdorfer Stahl Engineering GmbH, and the
Company is licenced to use the same. They are one of exclusive licencees to use
the “Thermex” technology to manufacture TMT bars in Northern India.
The Company has a very strong and committed network of dealers who spare no
efforts to keep maintain the image of the Company and provide value-added
service to the customers. This network of dealers consists of nearly 800 retail
outlets spread all over Northern India.
The main features of their marketing strategy are as following:
Effective Brand Extension : The “RATHI” name is a well
established and reputed brand in the Northern India.
Retail
Marketing : Their
retail network includes nearly 800 outlets spread all over Northern India.
Direct Sales : They
have a highly experienced and committed team of sales executives
who cater directly to the needs of their Corporate and Government clients.
They have a vast profile of customers. Customers of the Company range from to
reputed contractors to the retail users, from the private sector organizations
to public sector undertakings and foreign embassies. The customers of the
Company can be classified into three major groups i.e. Government customers,
retail users and private sector customers.
BUSINESS STRATEGY
Since inception of their Company, they have made efforts to place themselves in
a competitive position in the industry by proactively responding to their
customers needs. As a result of these initiatives, they started to manufacture
CTD Reinforcement Bars under the brand “RATHI TOR” in collaboration with Tor
Isteg Steel Corporation, Luxemburg through their Indian representative Tor
Steel Research Foundation in India, ensuring substantial saving in steel
consumption and giving the Indian Construction Industry a much needed impetus.
During the late nineties, the Indian construction industry expressed their
inclination towards quenched rebars known as TMT rebars. Keeping pace with the
change they installed the TMT manufacturing facilities under the patented
“THERMEX” technology obtained from Hennigsdorfer Stahl Engineering GmbH,
Germany through their Indian representative M/s H&K Rolling Mill Engineers
Private Limited
In the years ahead their focus would be on the following:
At their Ghaziabad plant, they shall focus on manufacturing
of quality construction steel. The “RATHI” name enjoys goodwill in the
construction industry. The steel manufactured by them is known for quality and
their future endeavors shall further consolidate the same. They are planning to
broad-base their product mix by including value added steel items like
Stainless Steel and Alloy Steel Wire Rods, RCS, Flats etc. They also intend to
further add value to these products by converting them into bright bars, wires
etc., to cater the growing demand of export market.
In order to obtain more efficient operations, they will be focusing on the
Orissa Project in the future and will always be looking at the possibility of
expansion of the capacity by using the most advanced technology and the most
cost-effective route of steel making. They believe that there is tremendous
potential in the Orissa project as both the basic raw materials i.e. iron ore
and coal are available in abundance in the vicinity to the project site at
Sambalpur.
They intend to make the Orissa plant a primary source of raw
material for the existing rolling mills of the Punam Chand Rathi Group and also
for the future rolling mill plants that they intend to setup all across the
country. A chain of value addition from iron ore, sponge iron, captive power,
steel making at the Orissa plant, to the rolling mills across the country will
lead to tremendous synergy and will enable thems to service their customers
better by providing high quality products at competitive prices.
CAREER WITH RATHI UDYOG LIMITED
At Rathi Udyog, they believe in creating value and providing better quality of
life for people across the humanity. Their mission is to create
performance-driven culture characterized by competence, pride and commitment.
They also look sincerely at young people with fire in their bellies and who are
full of energy and dynamism with a vision to grow.
CMT REPORT
(Corruption, Money Laundering & 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.77.01 |
|
Euro |
1 |
Rs.57.34 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|