MIRA
INFORM REPORT
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Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
RATNAMANI METALS AND TUBES LIMITED |
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Registered Office : |
17 Rajmugat Society, Naranpura Char Rasta, Ahmedabad-380 013, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.09.1983 |
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Com. Reg. No.: |
04-6460 |
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CIN No.: [Company
Identification No.] |
L70109GJ1983PLC006460 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMR01519A |
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Legal Form : |
Public
Limited Liability company. The company’s shares are listed on the Stock
Exchange. |
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Line of Business : |
The
company is engaged in manufacturing and marketing of Stainless Steel Tubes
& Pipes, Saw Pipes and Carbon Steel Tubes & Pipes. |
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 5600000 |
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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 company having satisfactory track. Financial position is good.
Trade relations are fair. Payments are
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 : |
17, Rajmugat
Society, Naranpura Char Rasta, Ahmedabad – 380 013, Gujarat, India |
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Tel. No.: |
91-79-27415501/4 |
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Fax No.: |
91-79-748
0999 |
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E-Mail : |
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Website : |
www.ratnamani.com |
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Factory 1: |
STAINLESS
STEEL TUBES AND PIPES DIVISION Ahmedabad
Mehsana Highway, Village – Indrad, Near Chhatral GIDC, Taluka – Kadi,
District. – Mehsana, Gujarat, India |
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Factory 2: |
SAW PIPE
DIVISION Plot
No. 3306, 3308 & 3309, GIDC–Chhatral,Taluka – Kalol, District.– Mehsana,
Gujarat, India |
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Factory 3: |
KUTCH
DIVISION Survey No. 474,
Village – Bhimasar, Taluka – Anjar, District.–Kutch, Gujarat, India |
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Branches : |
44,
C. P. Tank Road, Mumbai – 400 004, Maharashtra, India |
DIRECTORS
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Name : |
Mr.
Prakash M. Sanghvi |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
49 years |
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Qualification : |
Matriculation |
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Experience : |
28 years |
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Date of Appointment : |
12th June, 1989 |
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Name : |
Mr.
Jayantilal M. Sanghvi |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
47
years |
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Qualification : |
1st
B.Com. |
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Experience : |
25
years |
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Date of Appointment : |
12th
June, 1989 |
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Name : |
Mrs.
Shantilal M. Sanghvi |
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Designation : |
Director |
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Date of Birth/Age : |
43 years |
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Qualification : |
Under graduate |
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Experience : |
23 years |
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Date of Appointment : |
01.11.1998 |
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Name : |
Mr.
D. C. Anjaria |
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Designation : |
Director |
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Name : |
Dr.
Vinodkumar M. Agarwal |
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Designation : |
Director |
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Name : |
Mr. P. M. Merita |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian
Promoters and Group |
5289897 |
58.78 |
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Mutual
Fund and UTI |
6942 |
0.08 |
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Banks,
Financial Institutions |
66 |
0.00 |
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Corporate
Bodies |
251530 |
2.79 |
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Flls |
824224 |
9.16 |
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NRI |
101171 |
1.12 |
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Indian Republic |
2526170 |
28.07 |
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Grand
Total |
9000000 |
100.00 |
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BUSINESS DETAILS
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Line of Business : |
The
company is engaged in Manufacturing and Marketing of Stainless Steel Tubes
& Pipes, Saw Pipes and Carbon Steel Tubes & Pipes. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Stainless Steel Tubes & Pipes (Own) |
MT |
NA |
18900 |
7430 |
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Carbon
Steel Pipes |
MT |
NA |
300000 |
61423 |
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Generation of Power using
Windmills (other than for captive consumption) |
‘000 Units |
10.50 |
27300 |
6 |
GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
Ř
Dena Bank Ř
Punjab
National Bank Ř
State Bank
of India Ř
IDBI Limited Ř
ICICI Bank
Limited |
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Facilities : |
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Note No. 1 (a) Term Loans
from ICICI Bank UK Limited, Syndicate Bank, Bank of Maharashtra and Axis Bank
Limited (Rs. 200 millions) are secured by first charge on the Company's
entire immovable and movable properties situated at Survey Nos. 769, 780 and
787, Village Indrad, Chhatral, Taluka, Kadi, District Mehsana and Survey No.
474, Village Bhimasar, Taluka Anjar, District Kutch. The said loans are
further secured by second charge on Inventories and Book debts and personal
guarantee of some of the Directors of the Company. (b) Term Loan
from Axis Bank Limited (Rs. 100 millions) is secured by first charge on the
Company's entire immovable and movable properties situated at Plot Nos. 3306
to 3309 GIDC, Chhatral, Taluka Kalol, District Gandhinagar. The said loan is
further secured by second charge on Inventories and Book debts and personal
guarantee of some of the Directors of the Company. (c) Term Loan from ICICI Bank Limited,
Hong Kong is to be secured by an exclusive charge over all the 8 windmills
alongwith related equipments/ machinery situated at (Moti Sindholi) Kutch,
Gujarat and personal guarantee of some of the Directors of the Company. Note No. 2 Working Capital
Facilities from State Bank of India, Punjab National Bank, Dena Bank and IDBI
Limited are secured by hypothecation of Inventories, Book debts and by second
charge on Fixed Assets of the Company and personal guarantee of some of the
Directors of the Company. Working Capital Facilities are further secured by
joint equitable mortgage of all immovable properties held as free-hold and
lease-hold lands of the Company.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mehta
Lodha and Company (Chartered
Accountants) |
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Address : |
63 Hirabhai
Market, Diwan Ballubhai Road, Ahmedabad – 380 022, Gujarat, India |
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Associates/Subsidiaries : |
v
Ratnamani
Food Products Private Limited v Ratnamani Marketing Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,000,000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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90,00,000 |
Equity Shares |
Rs.10/- each |
Rs.
90.000millions |
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Out of the
above shares 3070200 (3070200) Equity Shares were allotted as fully paid up
by way of bonus shares. Out of the above shares, 2460133 (2460133) Equity
Shares were allotted as fully paid up for consideration other than cash, on
amalgamation. |
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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 |
90.000 |
90.000 |
90.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1315.666 |
726.533 |
416.762 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1405.666 |
816.533 |
506.762 |
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LOAN FUNDS |
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1] Secured Loans |
1293.733 |
766.200 |
425.896 |
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2] Unsecured Loans |
549.587 |
294.480 |
78.454 |
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TOTAL BORROWING |
1843.320 |
1060.680 |
504.350 |
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DEFERRED TAX LIABILITIES |
319.636 |
202.815 |
143.558 |
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TOTAL |
3568.622 |
2080.028 |
1154.670 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2504.871 |
1605.931 |
819.915 |
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Capital work-in-progress |
83.691 |
1.792 |
247.613 |
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INVESTMENT |
0.066 |
0.064 |
0.384 |
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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 |
1648.719
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587.977 |
234.935
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Sundry Debtors |
607.535
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346.667 |
215.968
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Cash & Bank
Balances |
113.030
|
101.389 |
79.572
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Other Current
Assets |
0.000
|
0.000 |
0.000
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Loans &
Advances |
198.086
|
89.816 |
68.148
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Total
Current Assets |
2567.370
|
1125.849 |
598.623
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current
Liabilities |
1468.125
|
611.263 |
491.340
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Provisions |
119.251
|
42.345 |
20.525
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Total
Current Liabilities |
1587.376
|
653.608 |
511.865
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Net Current Assets |
979.994
|
472.241 |
86.758
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3568.622 |
2080.028 |
1154.670 |
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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 |
5654.928 |
3160.293 |
1089.952 |
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Other Income |
633.272 |
216.009 |
0.000 |
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Total Income |
6288.200 |
3376.302 |
1089.952 |
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Profit/(Loss) Before Tax |
1007.113 |
471.030 |
210.293 |
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Provision for Taxation |
365.332 |
135.876 |
77.772 |
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Profit/(Loss) After Tax |
641.781 |
335.427 |
132.521 |
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Earnings in Foreign Currency : |
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Export Earnings |
721.356 |
544.093 |
239.806 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
721.356 |
544.093 |
239.806 |
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Imports : |
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Raw Materials |
1848.868 |
493.442 |
389.107 |
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Stores & Spares |
8.602 |
3.300 |
0.000 |
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Capital Goods |
174.962 |
118.246 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
2032.432 |
614.988 |
389.107 |
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Expenditures : |
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Raw Material Consumed |
4142.166 |
2143.469 |
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Salaries, Wages, Bonus, etc. |
158.750 |
96.017 |
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Financial Expenses |
164.384 |
89.019 |
1599.659 |
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Depreciation & Amortization |
155.894 |
73.896 |
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Other Expenditure |
659.893 |
502.871 |
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Total Expenditure |
5281.087 |
2905.272 |
1599.659 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales
Turnover |
1900.100 |
2091.300 |
2144.100 |
2315.400 |
|
Other
Income |
31.200 |
59.700 |
33.330 |
19.200 |
|
Total
Income |
1931.300 |
2151.000 |
2177.400 |
2334.600 |
|
Total
Expenditure |
1476.900 |
1642.500 |
1662.700 |
1995.900 |
|
Operating
Profit |
454.400 |
508.500 |
514.700 |
338.700 |
|
Interest |
51.600 |
54.100 |
44.400 |
33.900 |
|
Gross
Profit |
402.800 |
454.400 |
470.300 |
304.800 |
|
Depreciation |
53.200 |
59.500 |
61.500 |
64.200 |
|
Tax |
123.700 |
107.600 |
136.200 |
107.100 |
|
Reported
PAT |
225.900 |
268.200 |
272.600 |
133.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity
Ratio |
1.31 |
1.18 |
0.70 |
|
Long
Term Debt Equity Ratio |
1.15 |
1.04 |
0.55 |
|
Current
Ratio |
1.17 |
1.01 |
0.91 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.47 |
2.27 |
2.32 |
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Inventory
|
5.50 |
8.50 |
8.39 |
|
Debtors |
12.88 |
12.44 |
11.13 |
|
Interest
Cover Ratio |
6.84 |
5.81 |
5.79 |
|
Operating
Profit Margin (%) |
21.72 |
18.37 |
14.40 |
|
Profit
Before Interest and Tax Margin (%) |
19.19 |
16.26 |
12.29 |
|
Cash
Profit Margin (%) |
12.98 |
11.70 |
8.52 |
|
Adjusted
Net Profit Margin (%) |
10.44 |
9.59 |
6.41 |
|
Return
on Capital Employed (%) |
46.02 |
39.40 |
33.09 |
|
Return on Net Worth (%) |
57.76 |
50.69 |
29.39 |
LOCAL AGENCY
FURTHER INFORMATION
FIXED
ASSETS
Ř
Goodwill
Ř
Lease Hold
Land
Ř
Freehold Land
Ř
Buildings
Ř
Plant & Machinery
Ř
Furniture
& Fixtures
Ř
Vehicles
Ř
Equipments
HISTORY
Ratnamani
Metals & Tubes (RMTL), incorporated in Sep.'83 as a small scale industrial
undertaking as Ratnamani Metals & Tubes Pvt Ltd, became a deemed public
limited company in Jul.'89. Another small-scale unit, Ratnamani Tube Industries
Pvt Ltd was set up by the same promoters in 1985, which too became a public
limited company in Jul.'90. Both the companies were converted into medium-scale
units through expansion within 2-3 years of establishment. Ratnamani Tube
Industries was amalgamated with Ratnamani Metals & Tubes in Apr.'91.
RMTL manufactures stainless steel seamless and welded pipes and tubes of
various diameters upto 16" (cap.: 3000 tpa). In addition, it undertakes
job-work for drawing of pipes.
In Mar.'93, the company came out with a public issue to part-finance its Rs
6.57-cr project to upgrade its manufacturing facilities and augment its working
capital. Under this project, in 1993-94, it installed four pilger machines
imported from Intertec, Germany.
It is having a separate divisions for S S Instrumentation Tubes and S S Heat
Exchanger Tubes with additional capacity of 10 MT and 100 MT per month
respectively. It has also undertaken modernisation of Weilded Tubes
manufacturing facilities which was successfully developed in the year
1999-2000.
During 1997-98, it installed the Saw Pipes and Carbon Steel Tubes & Pipes
with a capacity of 10,000 MT and 1,200 MT.
During 1998-99, As per the scheme of amalgamation Ratnamani Engineering Ltd was
amalgamated with Ratnamani Metals & Tubes Limited.
The company is planning to develop capability of tape coating and cement mortar
gunniting on pipes.The company has also been issued license for using the API
monogram for API 2B products.
ISO 9002:1994
The
company has already been awarded BSEN ISO 9002:1994, a prestigious
certification. This puts The Company
at par with other International Companies in respect of globally accepted
Quality Management Systems.
AD 2000 – Merkblatt W 0
The
company had received AD 2000 – Merkblatt W 0 Certificate issued by TUV Germany,
whereby the marketability of S. S. Tubular products is expected to increase,
particularly for exports to Germany and other European countries.
REVIEW
OF OPERATIONS:
The year 2006-07
ended much better than expected. The Board of Directors is very much delighted
to affirm that the year 2006-07 has been the best year so far in Company's
history. Since 2001-02, turnover and profitability have grown consistently,
year on year, each year proving to be historical for the
Company.
During the year under review, the Net Income increased by 79% to reach the
level of Rs. 5712.500 million from Rs. 3191.900 million in 2005-06, where as
the Net Profit after tax stood at Rs. 641.800 million which represents a 91 %
growth over the previous year figures. Company has achieved export sales of Rs.
3030 million that amounts to 54 % of Net Sales.
STATUS OF EXPORT HOUSE
The Board of Directors is pleased to inform that the Company has been awarded
Trading House Status for a period of two years by the Joint Director General of
Foreign Trade, Ahmedabad for having export turnover in excess of Rs. 5000
million.
FUTURE
PROSPECT:
In the last three years,
there has been a shift in the mindset of India's entrepreneurs. The change in
thinking has been because of a confidence that India is making its presence
felt firmly in World Economy. The word 'multinational' no longer means a
foreign company. There are a sizable number of 'Indian Multinationals' now and
the number seem to be growing.
The globally
competitive assertion of India is visible as even larger amounts are being
invested in ventures located worldwide.
The pipes and tubes industry is no exception to this change. There is a huge
potential demand for pipes and tubes manufactured in India, or manufactured by
Indian entrepreneurs in plants located outside India. There would be ample
opportunities and the key to unlock those would be the competitiveness and
servicing of the customers'requirements.
The two major Industry segments in which the Company has strong presence are
Oil & Gas and Power.
Oil & Gas Industry uses the pipes for a variety of applications in:
PRESS RELEASE:
JUNE 24, 2008
Ratnamani Metals 2007-08 turnover up by 47.94% YoY
Gujarat based Ratnamani Metals and Tubes
Limited has posted a record turnover growth of 47.94% YoY for 2007-08 fiscal at
INR 8450.000 millions as against INR 5712.500 millions in 2006-07 fiscal.
2007-08 fiscal also saw it posting record
export turnover including supplies to special economic zones for a total value
of INR 3868.000 millions which is about 45.75% of gross turnover. Net profit
after tax at INR 900.300 millions is higher by 40.27% YoY as against INR 64.18.
It has also declared a dividend of 70% to its shareholders.
The order books position of Ratnamani Metals
is INR 6000.000 millions including export order of INR 1500.000 millions. The
main product categories of Ratnamani are carbon steel and stainless steel.
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.43.16 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.95 |
SCORE & 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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|