MIRA
INFORM REPORT
|
Report Date : |
14.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RED LINE INDUSTRIES LIMITED |
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Registered Office : |
E-10, Bhatia Compound, Marve Link Road, Charkop, Kandivali (West), Mumbai
– 400 067, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.03.1996 |
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Com. Reg. No.: |
11-97894 |
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CIN No.: [Company
Identification No.] |
U30000MH1996PLC097894 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR08068E |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers of
Electrostatic Powder Coating Equipment |
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 6000 |
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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 company having steady business. Trade relations
are fair. Payments are reported as slow but correct. However the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
E-10, Bhatia Compound, Marve Link Road, Charkop, Kandivali (West),
Mumbai – 400 067, Maharashtra, India |
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Tel. No.: |
91-22-28066210 |
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Fax No.: |
91-22-28628515 |
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E-Mail : |
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Website : |
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Sales and Marketing Office : |
232, Kalinadas Udyog Bhavan, Behind Century Bazar, Prabhadevi, Mumbai
– 400 025, Maharashtra, India |
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Tel. No.: |
91-22-24324737 / 24324787 / 329 |
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Fax No.: |
91-22-66466936 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Himanshu Bhogilal Shah |
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Designation : |
Director |
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Address : |
2, Walkeshwar House, 38, Walkeshwar Road, Mumbai – 400 006,
Maharashtra, India |
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Date of Birth/Age : |
08.11.1952 |
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Date of Appointment : |
06.03.1996 |
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Election Commission Identity Card No.: |
MT-04-024-066106 |
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Name : |
Mrs. Sonia Himanshu Shah |
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Designation : |
Director |
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Address : |
2, Walkeshwar House, 38, Walkeshwar Road, Mumbai – 400 006,
Maharashtra, India |
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Date of Birth/Age : |
21.06.1957 |
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Date of Appointment : |
06.03.1996 |
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Election Commission Identity Card No.: |
MT-04-024-066107 |
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Name : |
Mr. Mahendra Pravinlal Shah |
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Designation : |
Director |
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Address : |
2, Walkeshwar House, 38, Walkeshwar Road, Mumbai – 400 006,
Maharashtra, India |
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Date of Birth/Age : |
06.12.1936 |
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Date of Appointment : |
06.03.1996 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2005)
|
Names of Shareholders |
No. of Shares |
|
Himanshu Shah |
35706 |
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Sonia Shah |
32600 |
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Mahendra Shah |
100 |
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Rahul Vohra |
100 |
|
Rashmi Choksi |
100 |
|
Deepak Wadia |
100 |
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Surekha Wadia |
100 |
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Total |
68806 |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Electrostatic Powder Coating Equipment |
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Products : |
·
Powder Coating Equipments ·
Powder Coating Machines ·
Powder Recovery
Booths o
DS Filter cartridge type o
HC Cyclone type o
Walk-in Cabin booths ·
Powder Curing
Ovens o
Electric Ovens o
Fuel-fired Ovens ·
Accessories and
Ancillaries o
Sieving Systems o
Powder Recycling Systems o Reciprocators ·
Systems
and Plants |
GENERAL
INFORMATION
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No. of Employees : |
Around 10 |
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Bankers : |
Union Bank of
India Opera House Branch,
YMCA Building, 412, Lamington Road, Mumbai – 400 004, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Jasmit H Gandhi Chartered Accountants |
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Address : |
210, Rajgor Chambers, 99, Surat Street, Masjid, Mumbai – 400 009,
Maharashtra, India |
CAPITAL STRUCTURE
(As on 30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
68806 |
Equity Shares |
Rs.10/- each |
Rs.0.688
million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
0.688 |
0.688 |
0.688 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.468 |
0.401 |
0.426 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1.156 |
1.089 |
1.114 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
1.012 |
1.005 |
0.536 |
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TOTAL BORROWING |
1.012 |
1.005 |
0.536 |
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DEFERRED TAX LIABILITIES |
0.032 |
0.043 |
0.052 |
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TOTAL |
2.200 |
2.137 |
1.702 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.948 |
0.959 |
1.168 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
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 |
1.377
|
1.245 |
0.872 |
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Sundry Debtors |
1.698
|
1.908 |
1.425 |
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Cash & Bank Balances |
0.040
|
0.042 |
0.000 |
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Other Current Assets |
0.000
|
0.000 |
0.153 |
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Loans & Advances |
0.457
|
0.153 |
0.000 |
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Total
Current Assets |
3.572
|
3.348 |
2.450 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2.154
|
2.042 |
1.923 |
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Provisions |
0.166
|
0.128 |
0.000 |
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Total
Current Liabilities |
2.320
|
2.170 |
1.923 |
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Net Current Assets |
1.252
|
1.178 |
0.527 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.007 |
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TOTAL |
2.200 |
2.137 |
1.702 |
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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 |
10.557 |
8.877 |
10.446 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
10.557 |
8.877 |
10.446 |
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Profit/(Loss) Before Tax |
0.092 |
0.029 |
0.248 |
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Provision for Taxation |
0.025 |
0.054 |
0.089 |
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Profit/(Loss) After Tax |
0.067 |
(0.025) |
0.159 |
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FOB Value |
5.402 |
4.900 |
0.000 |
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Expenditures : |
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Depreciation & Amortization |
0.237 |
0.244 |
0.141 |
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Other Expenditure |
10.228 |
8.604 |
10.057 |
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Total Expenditure |
10.465 |
8.848 |
10.198 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.63
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(0.28) |
1.52 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.87
|
0.33 |
2.37 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.04
|
0.67 |
6.85 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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0.03 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.88
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2.92 |
2.21 |
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Current Ratio (Current Asset/Current Liability) |
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1.54
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1.54 |
1.27 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Name of the company |
RED LINE INDUSTRIES LIMITED |
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Presented By |
Union Bank of
India, Opera House Branch, Mumbai |
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1) Date and description of instrument creating the change |
Packing Credit
Agreement dated : 16th June, 2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.750 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 |
The Borrower hereby
hypothecates and creates in favour of the Bank by way of first charge of all
the movable properties of the Borrower meant or intended / for export of
goods such as powder dust-copllector, powder coating machine, powder coating
booth, assembling and spares filter cartridges etc including raw materials,
semi finished goods and finished goods and or any other goods meant intended
or being manufactured for export lying in the factory or stored at the
Borrower’s factory or in sheds whether situate in the main factory shed or
godown at Silvassa or at shed / godowns hired by the Borrower for storage
wherever situate and / or on transit belonging to or that may at any time
during the continuance od this security belong to the Borrower and meant or
intended or being manufactured for export or that may be held by any party to
the order and disposition of the Borrower (all of which said properties,
goods and assets both present and future hereinafter referred to as
“Hypothecated Goods”) |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of 6.50% per annum for Packing Credit (Under L/C DP/DA) facility of
Rs.1.750 millions granted by the Bank to the Company. Margin : 25% |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank of
India Opera House
Branch, YMCA Building, 412, Lamington Road, Mumbai – 400 004, Maharashtra,
India |
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6) Date and brief description of instrument modifying the charge |
Not Available |
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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. |
Not Available |
Web Details
Subject is a Mumbai, India-based Company dedicated to the field of
powder coating application equipments and systems. Subject today has
established for itself an enviable reputation in the powder coating industry
for high standards in the quality and technology of the equipments made as well
as superior performance levels of all systems designed and supplied. Subject
has, through sheer commitment to the powder coater, set benchmark standards in
providing technical support after sales of the equipments and systems.
Subject has an adequate product development facility that effectively responds
to the ever-changing needs of the powder coater. Developments in the equipments
– the new generation NC201 or the PC201 100 kV electrostatic powder coating
machines or the InstaFeed direct box feeder or the high powder-flow ALPHA
Portable 100 kV machine – bear testimony to this.
Subject powder coating systems are today meeting the requirement of powder
coaters – small and large – from single equipments to small batch systems to
conveyorised installations spread in many parts of the world - from USA in N
America to Australia and many countries in-between.
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 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.48.14 |
|
UK Pound |
1 |
Rs.82.73 |
|
Euro |
1 |
Rs.65.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
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