MIRA
INFORM REPORT
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Report Date : |
26.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
CENLUB INDUSTRIES LIMITED |
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Registered Office : |
35, DLF Industrial Estate – 1, Faridabad – 121003, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.03.1992 |
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Com. Reg. No.: |
035087 |
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CIN No.: [Company
Identification No.] |
L67120HR1992PLC035087 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKC01240B |
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PAN No.: [Permanent
Account No.] |
AAACC0257G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer and Supply of Centralised Lubrication System for Various
Machines, Plants and Equipments. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 253260 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having
satisfactory track. Trade relations are fair. Business is active. 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. |
LOCATIONS
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Registered Office/ Factory : |
35, DLF Industrial Estate – 1, Faridabad – 121003, Haryana, India |
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Tel. No.: |
91-129-4113701/2/3/4/ 2275483 |
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Fax No.: |
91-129-2275484/2260524 |
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Email : |
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Website : |
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Regional Office/ Factory : |
Plant I 45 –B, Phase – II, Peenya Industrial Area, Bangalore – 560058,
Karnataka, India Tel No.: 91-80-23723679/ 23723680 Fax No.: 91-80-28374704 Email : cenlub@cenlub.in Plant II A-12, Industrial Area, Faridabad – 121003, Haryana, India Tel No.: 91-129-4113705 Fax No.: 91-129-227548 Email : cenlub@cenlub.in |
DIRECTORS
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Name : |
Mr. V K Mittal |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Aman Mittal |
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Designation : |
Whole Time Director |
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Name : |
Mrs. Madhu Mittal |
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Designation : |
Whole Time Director |
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Name : |
Mr. V K Gupta |
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Designation : |
Whole Time Director |
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Name : |
Mr. Ansh Mittal |
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Designation : |
Whole Time Director |
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Name : |
Mr. Ankur Garg |
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Designation : |
Director |
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Name : |
Mr. Hakikat Singh |
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Designation : |
Director |
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Name : |
Mr. O P Verma |
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Designation : |
Director |
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Name : |
Mr. Dinesh Kaushal |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar Agarwal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Pawan Kumar Agarwal |
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Designation : |
Company Secretary |
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Name : |
Mr. Sachin Varma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter’s Holding and Persons Acting in Concert |
1133303 |
27.51 |
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Mutual Funds Bank of India A/C. BOI Mutual fund - 3000 Stock holding corporation of India - 200 |
3200 |
0.08 |
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Banking Financial Institution/ Insurance Companies (
Central / State Govt. Institutions ) Non-Government Institutions |
- |
- |
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FII Advantage Advisor India Fund Inc. |
600 |
0.07 |
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Private Corporate Bodies |
365018 |
8.80 |
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Indian Public |
2571677 |
62.42 |
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NRI's / OCB's |
46202 |
1.12 |
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Total |
4120000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Supply of Centralised Lubrication System for Various
Machines, Plants and Equipments. |
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Products : |
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Exports: |
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Countries : |
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PRODUCTION STATUS
Information regarding capacity, production, sales and
closing stocks:
- Licensed Capacity
The Central Government has not prescribed the Licensed
Capacity of the Company
- Installed Capacity
This depends on product mix and in view of varied nature of
products the installed capacity cannot be specified.
- Production and Purchases (As on 31.03.2007)
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Items |
Qty. Nos. |
Value Millions |
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MANUFACTURED GOODS Lubrication Equipment / Hand Pump |
10414 |
70.671 |
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Accessories and
Other Goods |
- |
13.461 |
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TRADED GOODS Scrips |
9655 |
0.885 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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No of Employees : |
Around 170 |
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Bankers : |
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Facilities : |
Secured
by
Secured by Hypothecation of Vehicles.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Satish Singla and Company Chartered Accountant |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4120000 |
Equity Shares |
Rs.10/- each |
Rs.41.200
Millions |
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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 |
41.200 |
41.200 |
41.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
22.115 |
13.098 |
6.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
63.315 |
54.298 |
47.400 |
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LOAN FUNDS |
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1] Secured Loans |
3.557 |
4.905 |
1.200 |
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2] Unsecured Loans |
0.693 |
0.978 |
0.000 |
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TOTAL BORROWING |
4.250 |
5.883 |
1.200 |
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DEFERRED TAX LIABILITIES |
1.780 |
1.788 |
0.000 |
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TOTAL |
69.345 |
61.969 |
48.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
19.372 |
14.828 |
12.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
11.260 |
6.112 |
1.700 |
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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 |
21.316
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14.395 |
16.400 |
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Sundry Debtors |
32.446
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26.955 |
24.900 |
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Cash & Bank Balances |
5.032
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11.355 |
5.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
4.284
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5.114 |
3.800 |
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Total
Current Assets |
63.078
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57.819 |
50.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.365
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16.792 |
14.800 |
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Provisions |
0.000
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0.000 |
1.300 |
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Total
Current Liabilities |
24.365
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16.792 |
16.100 |
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Net Current Assets |
38.713
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41.027 |
34.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
69.345 |
61.969 |
48.600 |
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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 |
116.490 |
101.855 |
82.100 |
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Other Income |
1.775 |
1.823 |
0.600 |
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Total Income |
118.265 |
103.678 |
82.700 |
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Profit/(Loss) Before Tax |
14.046 |
10.807 |
9.200 |
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Provision for Taxation |
5.030 |
3.935 |
3.800 |
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Profit/(Loss) After Tax |
9.016 |
6.872 |
5.400 |
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Export Value |
2.462 |
2.116 |
NA |
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Import Value |
4.040 |
3.522 |
NA |
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Expenditures : |
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Manufacturing Expenses |
77.609 |
64.821 |
46.600 |
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Administrative Expenses |
24.829 |
25.235 |
4.500 |
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Finance Charge |
0.896 |
0.598 |
7.100 |
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Purchases
Traded Goods |
0.885 |
0.000 |
9.200 |
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Depreciation |
0.000 |
0.000 |
4.900 |
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Other Expenditure |
0.000 |
2.217 |
1.200 |
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Total Expenditure |
104.219 |
92.871 |
73.500 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 (1st
Quarter) |
30.09.2007 (2nd
Quarter) |
31.12.2007 (3rd
Quarter) |
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Sales Turnover |
40.200 |
31.500 |
33.700 |
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Other Income |
0.400 |
0.800 |
0.300 |
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Total Income |
40.600 |
32.300 |
34.000 |
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Total Expenditure |
35.400 |
28.600 |
28.800 |
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Operating Profit |
5.200 |
3.700 |
5.200 |
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Interests |
0.100 |
0.100 |
0.200 |
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Gross Profit |
5.100 |
3.600 |
5.000 |
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Depreciation |
0.300 |
0.400 |
0.500 |
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Tax |
1.600 |
1.000 |
1.000 |
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Reported PAT |
3.200 |
2.200 |
3.500 |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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0.09
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0.07 |
0.08 |
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Long Term Debt-Equity Ratio |
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0.03
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0.03 |
0.02 |
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Current Ratio |
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2.29
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2.74 |
2.95 |
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TURNOVER RATIOS |
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Fixed Assets |
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3.90
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4.04 |
3.55 |
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Inventory |
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6.53
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6.62 |
4.92 |
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Debtors |
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3.92
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3.93 |
3.44 |
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Interests Cover Ratio |
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16.67
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19.00 |
12.50 |
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Operating Profit Margin (%) |
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14.16
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12.46 |
13.64 |
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Profit Before Interests and Tax Margin (%) |
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12.88
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11.19 |
12.18 |
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Cash Profit Margin (%) |
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9.01
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8.05 |
8.04 |
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Adjusted Net Profit Margin (%) |
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7.73
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6.77 |
6.58 |
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Return On Capital Employed (%) |
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23.47
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20.96 |
20.83 |
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Return On Net Worth (%) |
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15.31
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13.57 |
12.08 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
AND FUTURE PROSPECTS:
The company has achieved a turn over of Rs.118.265 Millions against the last
year turn over of Rs.103.678 Millions showing an impressive growth of 14%. This
year company has been able to achieve a profit before tax of Rs.14.046 Millions
in the current financial year against the last year profit of Rs.10.807
Millions.
The growth achieved by the company had been due to the better economic
conditions, improved cordial industrial relationships in the company. The
Directors are hopeful that in the current financial year, company will achieve
higher growth accompanied with better results.
MANAGEMENT DISCUSSIONS
AND ANALYSIS REPORT
Industry Structure and Developments: Since in the modern
times machines are becoming more and more sophisticated and efficient, to
achieve the projected goals, efficient lubrication system plays a crucial role.
Centralized lubrication system is automatic in nature and as far as our country
is concerned there are few players to feed the Indian machine manufactures
there need of quality lubrication systems. Lubrication systems in India are not
imported separately; however machines imported are coming attached with the
lubrication systems. This has effected the growth of indigenous manufacturing
of the lubrication systems in India.
Opportunities and threats:
With the liberalisation of the economy and consequently
opening of world economy, the machines Imported in India are now coming with
attached lubrication systems. This had created massive awareness among the
machine tool manufactures, vehicles manufactures in India. And a new and wide
era of requirement from the India Industry /machines manufactures for
lubrication systems is being generated. Previously what was considered by the
industry as an avoidable expense is now considered as an essential part of the
machines and the systems being developed in India, to compete with the
challenge thrown by foreign manufactures. This has opened up new opportunities
to be graped by the company to achieve new level of growth.
As far as the threats are concerned, the products and
services provided by the unorganized sector consisting of untrained, unskilled
people not having adequate knowledge are providing inferior quality of
Lubrication system which results into breakage of Machinery, loss of man hours
and production hours in the industries. This results into drainage of valuable
national resources and undermines the reputation of the goods produced in
India. The products supplied by this unorganized sector had also under mine the
quality of the products made by their company in the mind set of original
equipment manufacturer of their country. Though the market share enjoyed by
their company in supply of Lubrication System is around 70% but still 30% of
the market is controlled by unorganized sector which is creating havoc in the
market and shaking the confidence of Indian machine manufacturers.
However, there is a whole new horizon from the future
waiting in its wing for manufacturing of vehicle lubrication system. Wheel
Flange Lubrication System for locomotives, (which is still to be installed by
Indian railways). Further the imported vehicles duly fitted with lubrication
systems now available in India are changing the mind set of Indian commercial
vehicles like trucks and buses to equip themselves with the Lubrication
Systems. This opens the new era of opportunities for the company for which all
the necessary infrastructure are being placed and necessary research and
development work is being taken presently.
Initiatives taken by the Company:
Research and Development work taken by the company is now
yielding results whereby company is equipped to provide lubrication systems for
heavy commercial vehicles, buses and wind turbine as soon as the requirements
are raised by the concerned department. Test being carried at TELCO for last
two years and are at the verge of finalization.
Outlook:
The year under review the company had been able to generate
a net profit of Rs.9.016 Millions against a net profit of Rs.6.872 Millions of last
year. The Directors are please to report that taking into consideration the
present economic /government policies, accelerated activities in the core and
infrastructure sectors like paper, power, steel and sugar, The company was able
to produce better financial results and is expected the trend set in the last
financial year is also continuing in the present financial year
Financial
Performance:
The year under review the company had achieved a turn over
of Rs.118.200 Millions against the last year turnover of Rs.103.600 Millions.
The year under review company had shown profit before tax of Rs.14.046 Millions
as against profits before tax of Rs.10.807 Millions of last year. The directors
are glad to report that in current year better financial results are being
achieved.
Note on Accountants
Contingent liability not provided for:-
In respect of Bank Guarantees given by Bank for Rs.1.785
Millions
(Previous year Rs.0.726 Millions).
Fixed Assets:
- Land
- Goodwill
- Factory Building
- Office Building
- Plant and Machinery
- Tools and Equipment
- Electric Installation
- Office Equipment
- Furniture and Fittings
- Vehicles
Website Details
Profile:
Subject is a listed company at Mumbai Stock Exchange incorporated
under the Companies Act, 1956 by Registrar of Companies, Delhi and Haryana in
the year 1992.
The company has been promoted mainly by Mr. V.K. Mittal,
Managing Director – a Mechanical Engineer with M. Sc. (Physics), M. Sc. Mech.
Engg. Specialization in Machine Tools from Moscow. He has worked at senior
position in TELCO for more than a decade. He started working on the
import-substitution of the lubrication systems of machine tools in 1977 and had
been instrumental in making the company a profitable concern in this field.
In recognition of his capabilities, Haryana Government
bestowed “Prize for Enterpreneurship” on him for 1987 – 88. He has widely
traveled overseas and is fully aware of the latest trends in this field.
Besides the Founder Promoter Mr. V.K. Mittal, the following
are the Board of Directors of the company.
Mrs. Madhu Mittal
Whole
Time Director –
A woman entrepreneur is an M.A. and was the proprietor of
Cenlub Engineers prior to promoting the present company. Thereafter, she joined
as Promoter of the company. She had successfully guided a team of highly
qualified professionals to make subject. a leader in the field of Lubrication
Systems. She has been entrusted with the responsibilities of Developing new
Export Markets and Complete Administration of the company.
Mr.
Aman Mittal,
Whole
Time Director –
A B.E. (Electronics) looking the total day to day activities
of Bangalore unit.
Mr.
V.K. Gupta,
Whole
Time Director –
A Diploma Holder in Mechanical Engineering having 21 years Post
Qualification Experience, looks after finance and administration matters of the
company for the last 14 years. He has been entrusted with the responsibilities
of Finance, Accounts and Legal matters of the company.
Mr.
Ansh Mittal,
Whole
Time Director –
A B.E. (Computer Sc.) looks after the IT needs of the
company. He has been entrusted with the responsibilities of Export Division of
the company, exploring new international markets for the company. He has also
been involved with the designing processes of our new products.
Mr.
Dinesh Kaushal,
Director
–
A Chartered Accountant and Company Secretary with 11 years
Post Qualification experience in handling Finance and Accounts matters of various
organizations. He has been entrusted with the responsibilities of Audit
Committee of the company.
Mr.
Ankur Garg,
Director
–
A Graduate in ECO and had completed his M.B.A. for the last
20 years, he is engaged in his own business. He is having vast experience in
the field of Financial, Commercial and administrative matters while handling
different steams of business.
Mr.
Omprakash Verma,
Director
–
A B.A. (L.L.B) served as a Dy. General Manager with Indian
Oil Corporation and is having vast experience in the field of administration,
marketing and legal departments. He has been entrusted with the
responsibilities of Audit Committee of the company.
Mr.
Hakikat Singh,
Director
–
A Mechanical Engineer by profession. He had served as a
Chief General Manger with Escorts for 30 years. Mr. Singh is having wide
experience in technical area which is very relevant for the growth of the
company. He has been entrusted with the responsibilities of Audit Committee of
the company.
The company is having 10 offices all over India to take care
of Sales and Service i.e.
- Chandigarh
- Chennai
- Coimbatore
- Hyderabad
- Kolkata
- Ludhiana
- Mumbai
- Panchkula
- Pune
- Visakhapatnam.
AWARDS:
The company has bagged the following prestigious awards:-
- “FIE foundation” award for
import substitution activity at IMTEX’86
exhibition.
- Transworld Trade Fair “Gold
Medal” selection award in the year 1987.
- “Entrepreneurship” award by Government of Haryana in the year
1987-88.
- “Best display” award in the
9th Indian Engineering Trade Fair in the year 1991.
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.40.12 |
|
UK Pound |
1 |
Rs.79.95 |
|
Euro |
1 |
Rs.62.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|