MIRA
INFORM REPORT
|
Report Date : |
21.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RAJA FORGING AND GEARS LIMITED |
|
|
|
|
Registered Office : |
SCO 860, Shivalik Enclave, NAC Manimajra, Chandigarh – 160 101, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
02.04.1979 |
|
|
|
|
Com. Reg. No.: |
003957 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U28910CH1979PLC003957 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PTLR11740B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACR9398D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s Shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of transmission gears, axles, shafts, crown wheel pinions. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 1010500 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Financial
position is moderate. Payments are reported as slow and delayed. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
SCO 860, Shivalik Enclave, NAC Manimajra, Chandigarh – 160 101,
Punjab, India |
|
Tel. No.: |
91-172-4640861 |
|
Mobile No.: |
91-9915270007/ 9216220000 |
|
Fax No.: |
91-172-5074860 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Gear Division : |
Sai Road, Baddi, Distt. Solan – 173205, Himachal Pradesh, India |
|
Tel. No.: |
91-1795-245381/ 245382 |
|
Fax No.: |
91-1795-245383 |
|
E-Mail : |
|
|
|
|
|
Forging Division : |
HMT Industrial Estate, Plot 225-228, Industrial Area, Phase – I,
Panchkula, Haryana, India |
|
Tel. No.: |
91-172-2587843 |
|
Fax No.: |
91-172-5066145/ 5074860 |
DIRECTORS
|
Name : |
Mr. S P Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sudesh Goyal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. D K Chakraborty |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S M Devgan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sundeep Goyal |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. V K Bansal |
|
Designation : |
Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of transmission gears, axles, shafts, crown wheel pinions. |
GENERAL
INFORMATION
|
Customers : |
v Tata Motors Limited v Mahindra and Mahindra Limited v New Holland Tractor India Private Limited v International Tractors Limited.- Sonalika v Escorts Limited v Class India Limited v Same Deutz Fahr v HMT Limited - Pinjore v Bharat Gears Limited - Faridabad, Mumbra' v Gajra bevel Gears Limited- Dewas v S & H Gears Limited Ropar v International Auto Limited - Pune v Punjab Bevel Gears Limited-Ghaziabad v Amtek Auto, Gurgaon v Defence (Vehicle Factory, Jabalpur) v Railways (Northern Railway, DCW,DLW, Rail Coach Factory) v State Road Transport Undertaking - Through Rate contract. |
|
|
|
|
No. of Employees : |
200 |
|
|
|
|
Bankers : |
Syndicate Bank |
|
|
|
|
Banking Relations
: |
Unknown |
|
|
|
|
Auditors : |
|
|
Name : |
Not Available |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70,10,400 |
Equity Shares |
Rs. 10/- each |
Rs. 70.104
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
70.100 |
70.100 |
69.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
132.000 |
130.500 |
124.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
202.100 |
200.600 |
194.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
465.300 |
312.700 |
272.700 |
|
|
2] Unsecured Loans |
27.300 |
29.700 |
26.100 |
|
|
TOTAL BORROWING |
492.600 |
342.400 |
298.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
694.700 |
543.000 |
492.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
217.400 |
237.200 |
234.700 |
|
|
Capital work-in-progress |
47.400 |
5.700 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
1.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
311.700
|
284.800 |
207.400 |
|
|
Sundry Debtors |
164.300
|
129.600 |
143.600 |
|
|
Cash & Bank Balances |
4.500
|
3.400 |
7.200 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
44.200
|
27.000 |
18.900 |
|
Total
Current Assets |
524.700
|
444.800 |
377.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
93.400
|
148.900 |
117.100 |
|
|
Provisions |
1.400
|
1.300 |
8.300 |
|
Total
Current Liabilities |
94.800
|
150.200 |
125.400 |
|
|
Net Current Assets |
429.900
|
294.600 |
251.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
5.500 |
5.500 |
|
|
|
|
|
|
|
|
TOTAL |
694.700 |
543.000 |
492.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
534.100 |
401.700 |
402.500 |
|
|
Other Income |
20.500 |
0.800 |
0.600 |
|
|
Total Income |
554.600 |
402.500 |
403.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
7.400 |
5.300 |
14.100 |
|
|
Provision for Taxation |
4.200 |
3.000 |
6.100 |
|
|
Profit/(Loss) After Tax |
3.200 |
2.300 |
8.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Excise Duty |
79.300 |
55.400 |
56.300 |
|
|
Manufacturing Expenses |
51.300 |
46.200 |
46.900 |
|
|
Administrative Expenses |
35.200 |
21.800 |
10.000 |
|
|
Raw Material Consumed |
249.600 |
193.600 |
221.000 |
|
|
Increase/(Decrease) in Finished Goods |
(48.700) |
(60.300) |
(53.400) |
|
|
Salaries, Wages, Bonus, etc. |
37.600 |
33.900 |
30.600 |
|
|
Interest |
41.900 |
38.100 |
23.100 |
|
|
Power & Fuel |
62.400 |
45.900 |
31.700 |
|
|
Depreciation & Amortization |
27.500 |
15.300 |
14.200 |
|
|
Other Expenditure |
11.100 |
7.300 |
8.600 |
|
Total Expenditure |
547.200 |
397.200 |
389.000 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
3.21
|
2.58
|
2.77 |
|
Long Term Debt Equity Ratio |
0.98
|
1.43
|
2.77 |
|
Current Ratio |
1.17
|
1.46
|
3.12 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.72
|
1.37
|
1.44 |
|
Inventory |
1.79
|
1.63
|
2.30
|
|
Debtors |
3.63
|
2.94
|
2.87
|
|
Interest Cover Ratio |
1.21
|
1.17
|
1.61
|
|
Operating Profit Margin (%) |
14.66
|
14.89
|
12.77
|
|
Profit Before Interest and Tax Margin(%) |
9.51
|
11.08
|
9.24
|
|
Cash Profit Margin(%) |
5.88
|
4.53
|
5.52
|
|
Adjusted Net Profit Margin(%) |
0.73
|
0.72
|
1.99
|
|
Return on Capital Employed(%) |
9.32
|
10.13
|
9.41
|
|
Return On Net Worth(%) |
3.00
|
2.33
|
7.53
|
LOCAL AGENCY
FURTHER INFORMATION
Profile
Subject is a renowned company, which is into the manufacture of automotive forged components, precision automobile components.
Established in 1979, by Shri S.P. Goyal, the company, now, is manufacturing
more than 600 different items, which include transmission gears, shafts,
wheels, and pinions for automotive industry. The company's focus on quality
before profit has led to its success and recognition and is ranked as one of
the best quality manufacturer of gears, shafts, axles & crowns.
The company is recognised as one of the prime suppliers of forgings, shafts,
axles, crowns and pinions for OEM's manufacturing tractor,trucks and others
such as Railways and Defence in addition to export to many countries.
Raja Forgings has been classified as "zero defect" supplier and has
received ISO 9001:2000 certification alongwith TS 16949:2002 certification. A
large contingent of experienced engineers, technicians and workmen take up the
task of supplying quality products to the esteemed customers with the sole
motto"Quality in Time".
The company is equipped with most modern and sophisticated machines where gears
upto capacity of 400mm dia and shafts upto 1500mm length can be manufactured to
Class "7-8" accuracy. The company's concept of quality before profit
has earned the name in the country and is rated as one of the best quality
manufacturer of gears, shafts, axles & crowns. The forging unit has its own
Tool Room where all types of dies are made in-house. At present the company is
manufacturing about 900 dies of various types of items of different sizes of
various OEMs and export.
Inhouse Heat Treatment.
The company has its own Gas Carburising Heat Treatment Plant where hardening
operations are done to achieve required hardness.
The organization boasts of:
·
All manufacturing facilities
in house.
·
Better Employee-Employer
relations.
·
Continuous improvements in the
field of production and rejection.
Operations and Future Outlook
The company has written of Rs. 9.497 millions
on account of bad debts mostly Panchkula unit because the party M/s. Gajra
Bevel Gears Limited has been referred to BIFR. They have filed a recovery suit
against the company but it is not possible to recover this amount and
litigation goes for years and years. They were not writing off bad debts of
Panchkula unit much in the past.
Further, the automobile industry is in boom.
They were not able to take full advantage of the same last year as most of the
orders were in pipeline and negotiations are going on with the customers. The
capacity expansion which has been done to get excise and income tax exemption
was not in place as on 31.03.2007. However, they have put most of the machines
in order and sale has started picking up and order position is improving and
they expect to do better incoming years.
Tata Motors Pune has also started buying
material from us and Tata Motors, Jamshedpur has invited us to put up a small
set up in Jamshedpur to supply the material to them on regular basis. The
company is planning to have set up in Pune and Jamshedpur to take care of the
demand of Tata Motors Pune and Jamshedpur.
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 :
The 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.
The 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. 42.97 |
|
UK Pound |
1 |
Rs. 84.75 |
|
Euro |
1 |
Rs. 66.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|