MIRA INFORM REPORT

 

 

Report Date :

05.04.2011

 

IDENTIFICATION DETAILS

 

Name :

REYNOLDS PENS INDIA PRIVATE LIMITED

 

 

Registered Office :

Plot C-21, Sipcot Industrial Park, Irrungattykottai, Pennavur Post, Sriperumbudur Taluk, Kanchipouram 602105, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

03.08.1998

 

 

Com. Reg. No.:

18-040913

 

 

CIN No.:

[Company Identification No.]

U36991TN1998PTC040913

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHER02376D

 

 

PAN No.:

[Permanent Account No.]

AABCR4412R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of High Technology Metallic Tips for Ball Pens

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1409000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Reynolds Pens International, France. It is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions. 

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

LOCATIONS

 

Registered Office :

Plot C-21, Sipcot Industrial Park, Irrungattykottai, Pennavur Post, Sriperumbudur Taluk, Kanchipouram 602105, Tamilnadu

Tel. No.:

91-44-27156490 / 27156488

Fax No.:

91-44-27156491

E-Mail :

rajasekhar.venkata@newellco.com

 

 

Factory :

Located at 

Sriperumbudur, Near Chennai, Tamilnadu, India

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. John Kenneth Stipancich

Designation :

Director

Address :

19232 Wilcat trl, Davidson, north Carolina, 28036, United States of America

Date of Appointment :

31.12.2009

DIN :

02852575

 

 

Name :

Mr. Michael Richard Peterson

Designation :

Director

Address :

10445 tuxford drive, Alpharetta Georgia, 30022, united states of America

Date of Appointment :

03.03.2008

DIN :

01963742

 

 

Name :

Mrs. Maduri Venkata Rajasekhar

Designation :

Managing Director

Address :

C/O P V Nagaraja Roa, Plot No. 502, 13 A Cross, 29th Main J P Nagar, 1st Phase, Bangalore – 560078, Karnataka

Date of Appointment :

24.12.2007

DIN :

01974166

 

 

Name :

Mr. Metz Dale Lynn

Designation :

Director

Address :

15927 Manor Club Dr Alpharetta ga 30004 8819, ga O United States of America

Date of Appointment :

01.05.2008

DIN :

02143983

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

No. of Shares

Reynolds Pen International SAS, France

20999999

Waterman SAS, France

1

Total

21000000

 

 

As on 30.09.2010

 

Category

Percentage of Holding

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of High Technology Metallic Tips for Ball Pens

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Actual Production

 

Tips

802804410

 

 

GENERAL INFORMATION

 

Bankers :

Not Available

 

 

Facilities :

--

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S V Ghatalia and Associates

Chartered Accountant

Address :

TPL House, Second Floor, 3rd Cenotaph Street, Teynampet, Chennai 600018, Tamilnadu, India

Tel. No.:

91-44-66328400

Fax No.:

91-44-24311450

PAN No. :

AABFS3421N

 

 

Holding Company :

Reynolds Pens International S.A.S, France

 

 

Fellow Subsidiaries :
  • Sanford North America, United States of America
  • Newell Rubbermaid Mexicali, S de RL. de CV, Mexico
  • Newell Australia Pty Limited, Australia
  • Newell Hongkong Limited, Hongkong
  • Newell Rubbermaid (M) Sdn Bhd, Malayasia
  • Newell Rubbermaid (Thailand) Company Limited,Thailand
  • Thailand Company Limited,Thailand
  • Sanford Japan Limited, Japan
  • Lenox India Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

21,000,000

Equity Shares

Rs. 10/- each

Rs.210.000 millions 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

21,000,000

Equity Shares

Rs. 10/- each

Rs.210.000 millions 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

210.000

210.000

210.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

142.455

145.105

59.736

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

352.455

355.105

269.736

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

20.000

TOTAL BORROWING

0.000

0.000

20.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

352.455

355.105

289.736

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

87.222

111.492

144.630

Capital work-in-progress

0.000

0.103

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

19.233

18.921

14.682

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
47.725
81.846

76.326

 

Sundry Debtors
93.425
125.410

135.170

 

Cash & Bank Balances
174.014
69.260

37.506

 

Other Current Assets
3.946
4.324

6.658

 

Loans & Advances
38.509
43.552

8.584

Total Current Assets
357.619
324.392

264.244

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
48.785
95.421

115.168

 

Other Current Liabilities
2.742
0.520

2.773

 

Provisions
60.092
3.862

15.879

Total Current Liabilities
111.619
99.803

133.820

Net Current Assets
246.000
224.589

130.424

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

352.455

355.105

289.736

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

285.117

324.055

424.414

 

 

Other Income

28.620

34.840

41.056

 

 

TOTAL                                     (A)

313.737

358.895

465.470

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing  and Other Expenses

156.539

164.410

298.398

 

 

Personnel Expenses

34.836

34.748

29.538

 

 

Other operating Expenses

31.866

34.067

32.921

 

 

TOTAL                                     (B)

223.241

233.225

360.857

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

90.496

125.670

104.613

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1.547

1.150

2.948

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

88.949

124.520

101.665

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

24.679

33.483

45.832

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

64.270

91.037

55.833

 

 

 

 

 

Less

TAX                                                                  (H)

10.702

5.668

12.340

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

53.568

85.369

43.493

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

143.606

58.237

14.744

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

(5.357)

0.000

0.000

 

Dividend

(48.211)

0.000

0.000

 

Tax on Dividend

(8.007)

0.000

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

135.599

143.606

58.237

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

194.081

240.224

320.964

 

TOTAL EARNINGS

194.081

240.224

320.964

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Components

70.810

124.295

192.754

 

 

Stores & Spares

7.979

23.512

15.763

 

 

Capital Goods

0.000

0.000

6.446

 

TOTAL IMPORTS

78.789

147.807

214.963

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.55

4.07

2.07

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
17.07
23.78

9.34

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
22.54
28.09

13.16

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
14.45
20.89

13.66

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.18
0.26

0.21

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.32
0.28

0.57

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.20
3.25

1.97

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Background : Reynolds Pen India Private Limited was incorporated on August 3,1998 as a private company with limited liability. The company is a subsidiary of Reynolds Pens International, France and has been established to assemble, manufacture and market all kinds of writing instruments and stationery articles and their components, including high technology metallic tips. The manufacturing facility of the company is located at Sriperumbudur, Near Chennai, in the estate of Tamilnadu. The company was converted into an exported oriented unit effective May 1, 2008

 

FIXED ASSETS:

 

  • Leasehold Land
  • Buildings
  • Plant and Machinery
  • Office Equipment
  • Electrical equipment
  • Computer and Peripherals
  • Furniture and Fittings
  • Vehicles

 

AS PER WEBSITE

 

PROFILE :

 

The history of Reynolds dates back to 1927 when it was established by Edmond Regnault. In 1945, the Company shifted base to Valence in southern France and took over the Reynolds brand from Milton Reynolds with the name, manufacturing and selling rights. The Regnault family then sold the unit in 1993 to a group of investors who christened themselves as Reynolds in 1995 under the same management. Reynolds France belonged to the Marine Wendel Group who were the majority shareholders in Reynolds France before being acquired by the Newell Rubbermaid Group in late 1999.

 

In India, Reynolds Pens India Private Limited has been promoted as a wholly owned subsidiary of Reynolds France, which is part of the office equipments division of Newell Rubbermaid Group of the US. The factory has been commissioned at Sipcot Industrial Park at Irungattukottai near Chennai for the manufacture of high technology metallic tips. They are used in the manufacture of ball pens to ensure smooth writing pleasure throughout its life. Commercial production began in Mar-2000. Investments upto USD 10 million has envisaged in the Indian factory. The staff strength of 250 persons handles the production of tips in the state of the art factory.

 

 

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.44.65

UK Pound

1

Rs.71.92

Euro

1

Rs.63.24

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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

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

-

NB

                                       New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.