MIRA
INFORM REPORT
|
Report Date : |
06.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
R.N. GUPTA AND COMPANY LIMITED |
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Registered Office : |
C – 55, Focal Point, Ludhiana – 141 010, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.11.2001 |
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Com. Reg. No.: |
024790 |
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CIN No.: [Company
Identification No.] |
U28910PB2001PLC024790 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDR00021A |
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Legal Form : |
A Closely Held Public Limited Liability
Company |
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Line of Business : |
Manufacturer and Exporter of Forging's both
Raw and Fully Finished Made of Various Grade of Steel Including Stainless
Steel. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 812000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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. Financial position is satisfactory. Payments
are reported as slow but correct. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
C -
55, Focal Point, Ludhiana – 141 010, Punjab, India. |
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Tel. No.: |
91 - 161 - 5099241,
5099242 |
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Fax No.: |
91 - 161 - 2674276, 5011747 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Roshan Lal Gupta |
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Designation : |
Director |
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Address : |
682, Church Road, Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Date of Birth/Age : |
25.01.1925 |
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Date of Appointment : |
16.11.2001 |
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Name : |
Mr. Avinash Gupta |
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Designation : |
Whole Time Director |
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Address : |
682, Church Road, Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Date of Birth/Age : |
04.08.1946 |
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Date of Appointment : |
01.04.2007 |
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Name : |
Mr. Anil Gupta |
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Designation : |
Director |
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Address : |
B – 33, BRS Nagar, Ludhiana – 141 004, Punjab, India. |
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Date of Birth/Age : |
14.07.1949 |
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Date of Appointment : |
16.11.2001 |
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Date of Resignation : |
01.12.2007 |
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Name : |
Mr. Arun Gupta |
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Designation : |
Director |
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Address : |
682, Church Road, Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Date of Birth/Age : |
19.11.1951 |
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Date of Appointment : |
16.11.2001 |
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Date of Resignation : |
01.12.2007 |
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Name : |
Mr. Ajay Gupta |
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Designation : |
Director |
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Address : |
682, Church Road, Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Date of Birth/Age : |
27.05.1954 |
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Date of Appointment : |
16.11.2001 |
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Date of Resignation : |
01.12.2007 |
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Name : |
Mr. Gaurav Gupta |
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Designation : |
Whole Time Director |
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Address : |
682, Church Road, Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Date of Birth/Age : |
12.01.1972 |
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Date of Appointment : |
01.04.2007 |
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Name : |
Mr. Ram Prakash Sehgal |
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Designation : |
Director |
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Address : |
622, Sector – 16 D, Chandigarh – 160 015, Punjab, India. |
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Date of Birth/Age : |
12.05.1945 |
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Date of Appointment : |
15.03.2004 |
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Date of Resignation : |
01.12.2007 |
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Name : |
Mr. Deepak Sood |
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Designation : |
Director |
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Address : |
3, Argyle House, The Mall, Shimla – 171 001. |
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Date of Birth/Age : |
09.02.1952 |
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Date of Appointment : |
15.03.2004 |
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Date of Resignation : |
01.12.2007 |
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Name : |
Mr. Naresh Kumar Sethi |
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Designation : |
Director |
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Address : |
B-9/ 11, DLF City Phase-1, Gugaon – 122 002, Haryana, India. |
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Date of Birth/Age : |
28.10.1947 |
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Date of Appointment : |
15.03.2004 |
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Date of Resignation : |
01.12.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
|
Names of Shareholders |
No. of Shares |
|
Mr. Roshan Lal Gupta |
1110820 |
|
R.N. Gupta Well Equipment Private Limited |
1746450 |
|
Mr. Avinash Gupta Karta Mr. Avinash Gupta HUF |
262970 |
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Mr. Anil Gupta Karta Mr. Anil Gupta HUF |
258970 |
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Mr. Arun Gupta Karta Mr. Arun Gupta HUF |
258940 |
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Mr. Ajay Gupta Karta Mr. Ajay Gupta HUF |
258460 |
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Mr. Avinash Gupta |
645250 |
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Mr. Anil Gupta |
645250 |
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Mr. Arun Gupta |
645250 |
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Mr. Ajay Gupta |
645250 |
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Mr. Gaurav Gupta |
100 |
|
Mr. Rahul Gupta |
50 |
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Mr. Pankaj Gupta |
50 |
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Mr. Amit Gupta |
100 |
|
Mr. Nitin Gupta |
50 |
|
Mr. Arjun Gupta |
50 |
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Total |
6478010 |
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As on 15.09.2007
Equity share breakup (percentage of total equity)
|
Category |
Percentage |
|
Bodies Corporate |
26.96 |
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Directors or relatives of directors |
73.04 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Forging's
both Raw and Fully Finished Made of Various Grade of Steel Including
Stainless Steel. |
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Products : |
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GENERAL
INFORMATION
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Customers : |
OEM's and Distributor for Pipeline Equipment |
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No. of Employees : |
About 150 |
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Bankers : |
Clock Tower, Ludhiana – 141 008, Punjab, India. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gupta Sharma and Associates Chartered Accountants |
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Address : |
Opposite Old D.M.C., Civil Lines, Ludhiana – 141 001, Punjab, India. |
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Associates/Subsidiaries : |
NIL |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6500000 |
Equity Shares |
Rs.10/- Each |
Rs.65.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6478010 |
Equity Shares |
Rs.10/- Each |
Rs.64.780
Millions |
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|
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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 |
|
|
|
|
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1] Share Capital |
64.780 |
64.780 |
64.780 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
97.595 |
73.664 |
54.596 |
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|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
162.375 |
138.444 |
119.376 |
|
|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
113.808 |
102.450 |
88.790 |
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2] Unsecured Loans |
13.828 |
12.394 |
12.643 |
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TOTAL BORROWING |
127.636 |
114.844 |
101.433 |
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DEFERRED TAX LIABILITIES |
20.061 |
14.944 |
11.418 |
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TOTAL |
310.072 |
268.232 |
232.227 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
203.729 |
186.024 |
151.036 |
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Capital work-in-progress |
4.969 |
0.596 |
8.582 |
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INVESTMENT |
3.500 |
0.000 |
0.000 |
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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 |
85.839
|
75.510 |
73.900 |
|
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Sundry Debtors |
47.177
|
27.415 |
11.231 |
|
|
Cash & Bank Balances |
9.454
|
3.469 |
6.280 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
47.710
|
27.692 |
27.079 |
|
Total
Current Assets |
190.180
|
134.086 |
118.490 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
92.322
|
52.579 |
46.075 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
92.322
|
52.579 |
46.075 |
|
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Net Current Assets |
97.858
|
81.507 |
72.415 |
|
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MISCELLANEOUS EXPENSES |
0.016 |
0.105 |
0.194 |
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|
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|
|
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TOTAL |
310.072 |
268.232 |
232.227 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
616.527 |
484.251 |
434.333 |
|
|
Other Income |
19.100 |
14.231 |
24.700 |
|
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Total Income |
635.627 |
498.482 |
459.033 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
38.999 |
27.799 |
34.843 |
|
|
Provision for Taxation |
15.068 |
8.731 |
10.102 |
|
|
Profit/(Loss) After Tax |
23.931 |
19.068 |
24.741 |
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|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
360.671 |
302.795 |
291.468 |
|
|
Purchases made for re-sale |
1.498 |
5.750 |
8.199 |
|
|
Consumption of stores and spares parts |
21.954 |
14.860 |
12.824 |
|
|
Increase/(Decrease) in Finished Goods |
15.252 |
14.779 |
(12.096) |
|
|
Salaries, Wages, Bonus, etc. |
45.492 |
34.603 |
27.125 |
|
|
Managerial Remuneration |
3.341 |
2.761 |
2.384 |
|
|
Payment to Auditors |
0.135 |
0.125 |
0.120 |
|
|
Interest |
11.953 |
10.308 |
8.473 |
|
|
Insurance Expenses |
0.567 |
0.517 |
0.704 |
|
|
Power & Fuel |
61.860 |
55.390 |
40.366 |
|
|
Depreciation & Amortization |
10.078 |
7.960 |
6.348 |
|
|
Other Expenditure |
63.827 |
50.393 |
38.275 |
|
Total Expenditure |
596.628 |
470.683 |
424.190 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
3.76
|
3.83 |
5.39 |
|
|
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|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.33
|
5.74 |
8.02 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.69
|
8.67 |
12.53 |
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|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.20 |
0.29 |
|
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|
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|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.35
|
1.21 |
1.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.06
|
2.55 |
2.57 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8
|
Name of the company |
R.N. GUPTA AND COMPANY LIMITED |
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Presented By |
Mr. Avinash
Gupta, Director |
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1) Date and description of instrument creating the change |
Letter dated
17.01.2006 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.2.500 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Stock of Raw Material,
Work in Process and Finished Goods, Goods in Transit, Book Debts, Existing
and Future Machinery, Factory Land and Building situated at C-55/ 56, Focal
Point, Ludhiana, Stamped LC Application. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
1. Extent and
operation of charge 100% 2. Margin 25% |
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5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda,
Clock Tower, Ludhiana |
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U28910PB2001PLC024790 |
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Name of the
company |
R.N. GUPTA AND COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
C – 55, Focal Point, Ludhiana – 141 010, Punjab, India. |
|
Type of charge |
|
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Particular of
charge holder |
Bank of Baroda, Clock Tower, Ludhiana – 141 008, Punjab, India. E-Mail: ludhia@bankofbaroda.com |
|
Nature of
description of the instrument creating or modifying the charge |
Composite Hypothecation
Agreement Supplemental
Memorandum of Entry for Land and Building situated at C-55/ 56, Focal Point,
Ludhiana Memorandum of
Entry for Land situated at Village Doraha, District Ludhiana to secure Term
Loan of Rs.250.000 Millions. |
|
Date of instrument
Creating the charge |
27.06.2008 |
|
Amount secured by
the charge |
Rs.250.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
0.50% below BPLR. Effective Rate 12.25% p.a. at present with monthly rests. Terms of
Repayment: Repayable in 84 monthly installments consisting of 83 installments
of Rs.2.975 Millions each commencing from 01.04.2010 with installment of
Rs.3.075 Millions. Margin: 28.28% Extent and
Operation of the charge: 100% Others: As per
Bank’s sanction Letter dated 20.06.2008 and Terms and Conditions modified
vide subsequent letter dated 25.07.2008. |
|
Short particulars
of the property charged |
Primary: Land, Building, Machinery, Equipment and Other Misc. Fixed Assets in
respect of Unit No.2 of the Company at Doraha (District Ludhiana) Collateral: Hypothecation of Stocks, Book Debts and Other Current Assets of Unit
No. 2 at Doraha District Ludhiana. Hypothecation of Stocks, Book Debts and Other Current Assets of Unit
No.1 at C-55/ 56, Focal Point, Ludhiana Extension of charge of Equitable Mortgage over Land and Building of
Unit No. 1 at C-55/ 56, Focal Point, Ludhiana and all Plant and Machinery of Unit
No.1. |
As per Website:
Profile:
The company was establish in 1948 and maintain its benign presence in
the engineering industries ever since. The company's current activities are manufacturing
and export of forging's, both raw and fully finished made of various grade of
steel including stainless steel. Their customers are OEM's and distributor for
pipeline equipment. Their Plant is situated over an area of 1,18000 sq. feet
with 70000 sq. feet built - up area with an installed capacity of
20000 MT/ANNUM.
The company is manufacturing forging's made
of various grades of steel including stainless steel which are used for
applications Pipe Fittings ' Construction Equipments ' Industrial Forgings,
Conveyer Components, Automobile Parts etc. The Company is backed by a
Competent, Dedicated and Dynamic team of Professionals who are responsible for
its impressive growth. Stringent quality control and assurance systems are
maintained as per specified standards beginning from procurement of raw
material through all operations upto final packaging and shipment. Their
mission is to be a leading company in their field of activity service and
excellence through total customer satisfaction. The company is certified ISO
9001-2000 by DNV of the Netherlands.
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.46.88 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.64.99 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|