MIRA
INFORM REPORT
|
Report Date : |
18.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
RISHI LASER LIMITED |
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Formerly Known As : |
RISHI LASER CUTTING LIMITED |
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Registered Office : |
612, Veena Killedar Industrial Estate, 10-14, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
20.04.1992 |
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Com. Reg. No.: |
11-66412 |
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CIN No.: [Company
Identification No.] |
L99999MH1992PLC066412 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKR04470E |
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PAN No.: [Permanent
Account No.] |
AAACR2715C |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturer of sheet metal components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
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 1800000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. There
appears some losses incurred by the company in the current year i.e. 2008-09 however
the networth appears to be satisfactory. 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Dakshish |
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Designation : |
Accounts Department |
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Date : |
17.02.2011 |
LOCATIONS
|
Registered Office : |
612, Veera Killedar Industrial Estate, 10/14, |
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Tel. No.: |
91-22-23075677 / 23084886 / 23060572 |
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Fax No.: |
91-22-2308022 |
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E-Mail : |
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Website : |
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Head Office : |
611, Veera Killedar Industrial Estate, 10/14, |
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Tel. No. : |
91-22-23075677/23084886 |
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Mobile No. : |
91-9821845074 (Mr. Sunu Reji) |
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Fax No. : |
91-22-23080022 |
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E-mail : |
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Factory : |
110-L, 8th Cross, Bommasandra Industrial Area,
Bangalore-562 158, Plot No. A/2-620, GIDC Estate, Makapura, Vadodara-390010,
Pune Unit EOU (EEW) Gat No.229, Alandi Markal Road, Village Markal, Tal:
Khed, Pune – 412 105, Mob. No.: 98811511884 (Mr. Ashok Kurtkoti) Tel: 91-9881135626 Fax: 91-2135-305074 E-mail: ashok.kurtkoti@rishilaser.com Pune Unit II (MEW) Gat No.218/219, Alandi Markal Road, Village Markal, Tal:
Khed Pune-412105, Tel: (02135) 308396 Mob. No: 91-9881151884 (Mr. Ashok Kurtkoti) Fax No.: 91-2135-308074 E-mail: ashok.kurtkoti@rishilaser.com
Pune Unit II (MHEW) Gat No. 1236/1+2+3 Alandi Markal Road, Village - Markal, Taluka –Khed, India Dist.:
Pune 412 105, Maharashtra, Tel.:
91-2135- 308071 / 308072 E-mail: ashok.kurtkoti@rishilaser.com Area: 11000 Sq.mtrs Pune Unit IV (BHLW) Plot No. 303, Sector PCNTD
Area, Bhosari, Pune – 411 026, Fax: 91-20-66307715 E-mail: rlcl.bhosari@rishilaser.com 145-146, 4th Phase, Tel.: 91-080-27836319/27836366, Fax: 91-80-27836367 Mob. No.:91-9880988099 (Mr. Abhay Thosar) E-mail: rlcl.blr@rishilaser.com Area: 2400 Sq.mtrs Survey No.54/3, Next to Silver Spark, Tel.:91-080-27630591, Fax:91-80-27630592 Mob.No.:91-9880988099 (Mr. Abhay Thosar) E-mail: rlcl.blr2@rishilaser.com Area: 3300 Sq.mtrs A/2-620, G.I.D.C., Tel.: 91-0265-263 8011 / 265 6128 Fax: 91-0265- 2638011 Mob. No.: 91-9825505379 E-mail:
rlcl.baroda@rishilaser.com Area: 700 Sq.mtrs J - 266, MIDC Indl. Area,
Bhosari , Dist:- Pune-411 026, Tel.: 91-20-27474283/27442027/30963782 Mob. No.: 91-9822289379 E-mail: rlcl.bhosari@rishilaser.com Area: 2495 Sq.mtrs Plot No. D/43, MIDC, Phone No.: (91-253) 2380751/2383163 Mob. No.: 91-9881135631 (Mr. Kaushik N. Joshi) Fax: 91-253-2383163 Area: 2000 Sq.mtrs 428, E.P.I.P. HSIDC Industrial Estate, Kundli, Dist- Sonepat – 131001. State Haryana Tel: 91-130-6450159/6450428 Mob.No.: 91-9215640935 Email: vinod.sharma@rishilaser.com Area: 1600 Sq.mtrs Plot
No.- 661,662,663 Sector – 3 Near Indorama Ram Mandir Pithampur, District - Dhar (M.P.) Area: 1260 Sq.mtrs Vadodara
Unit-II (SEW) Plot No. 578 - 587, Savli - GIDC, Savli- 391770, Phone: 91-9228004555
Email: rlcl.savli@rishilaser.com Ahmedabad Unit (AEW) Plot No.4,Naroda Industrial
Estate, Naroda, Ahmedabad, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Harshad B. Patel |
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Designation : |
Chairman |
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Qualification : |
Chartered and Cost Accountant |
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Date of Appointment: |
01.04.2008 |
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Name : |
Mr. Dinesh C Mehta |
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Designation : |
Director |
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Qualification : |
Commerce Graduate with a degree in Law |
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Date of Appointment: |
27.09.2006 |
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Name : |
Mr. A C Mody |
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Designation : |
Director |
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Name : |
Mr. Jayesh K Sheth |
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Designation : |
Director |
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Qualification : |
Commerce Graduate |
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Year of Appointment: |
1995 |
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Name : |
Mr. Vandan S Shah |
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Designation : |
Director |
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Qualification : |
Engineering Graduate |
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Date of Appointment: |
27.09.2006 |
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Name : |
Mr. Vasant D Goray |
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Designation : |
Director |
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Qualification : |
Post Graduate |
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Date of Appointment: |
27.09.2006 |
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Name : |
Mr. U. G. Mahajan |
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Designation : |
Director |
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Name : |
Mr. A. V. Paranjape |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Harshad B. Patel |
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Designation : |
Chairman |
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Qualification : |
Chartered and Cost Accountant |
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Date of Appointment: |
01.04.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
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|
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|
468,200 |
5.42 |
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|
1,316,719 |
15.24 |
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|
1,316,719 |
15.24 |
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|
1,784,919 |
20.66 |
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Total shareholding of Promoter and Promoter Group (A) |
1,784,919 |
20.66 |
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(B) Public Shareholding |
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916,997 |
10.61 |
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3,026,948 |
35.04 |
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1,765,966 |
20.44 |
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1,144,470 |
13.25 |
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|
14,816 |
0.17 |
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|
400,844 |
4.64 |
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|
670,000 |
7.76 |
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57,810 |
0.67 |
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|
1,000 |
0.01 |
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6,854,381 |
79.34 |
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Total Public shareholding (B) |
6,854,381 |
79.34 |
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Total (A)+(B) |
8,639,300 |
100.00 |
(1) Indian
Bodies Corporate
Directors/Promoters & their Relatives
& Friends
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of components used by Automobiles, General Machinery, Textile, Food Processing and Heavy Industries. |
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Products : |
Ř Sheet Metal Components Ř Machines, Accessories and Spares Ř Processing Charges |
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Exports : |
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Products : |
Sheet Metal Components |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C / Cash / Credit |
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Purchasing : |
L/C / Cash / Credit |
PRODUCTION STATUS (as on 31.03.2010);-
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sheet Metal Components |
Tons |
48430 |
45430 |
19050 |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
1000 (Approximately)
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Bankers : |
·
State Bank of ·
Canara Bank, Tamarind Lane Branch, Mumbai,
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Alladi Krishnan and Kumar Chartered Accountants |
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Address : |
4, Marshal, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8547500 |
Equity Shares |
Rs. 10/- each |
Rs.85.475
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 |
|
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1] Share Capital |
85.475 |
79.497 |
79.497 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
374.452 |
345.183 |
362.178 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
459.927 |
424.680 |
441.675 |
|
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LOAN FUNDS |
|
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|
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1] Secured Loans |
504.137 |
750.211 |
625.296 |
|
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2] Unsecured Loans |
73.514 |
51.505 |
55.035 |
|
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TOTAL BORROWING |
577.651 |
801.716 |
680.331 |
|
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DEFERRED TAX LIABILITIES |
42.635 |
39.690 |
42.855 |
|
|
|
|
|
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TOTAL |
1080.213 |
1266.086 |
1164.861 |
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APPLICATION OF FUNDS |
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|
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|
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|
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FIXED ASSETS [Net Block] |
719.064 |
850.021 |
720.220 |
|
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Capital work-in-progress |
1.653 |
68.344 |
87.660 |
|
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|
|
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INVESTMENT |
85.755 |
8.895 |
8.746 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
183.279
|
156.646
|
153.146 |
|
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Sundry Debtors |
244.400
|
225.811
|
244.354 |
|
|
Cash & Bank Balances |
16.176
|
14.762
|
37.194 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
91.884
|
112.069
|
122.937 |
|
Total
Current Assets |
535.739
|
509.288
|
557.631 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
228.595
|
150.933
|
191.077 |
|
|
Other Current Liabilities |
31.770
|
21.247
|
0.000 |
|
|
Provisions |
1.976
|
(1.418)
|
19.583 |
|
Total
Current Liabilities |
262.341
|
170.762
|
210.660 |
|
|
Net Current Assets |
273.398
|
338.526
|
346.971 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.343 |
0.300 |
1.264 |
|
|
|
|
|
|
|
|
TOTAL |
1080.213 |
1266.086 |
1164.861 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1129.921 |
1143.979 |
1047.340 |
|
|
|
Other Income |
22.499 |
8.553 |
3.450 |
|
|
|
TOTAL (A) |
1152.420 |
1152.532 |
1050.790 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
140.883 |
109.190 |
110.213 |
|
|
|
Administrative and other Expenses |
49.774 |
46.833 |
36.907 |
|
|
|
Raw Material Consumed |
622.689 |
704.123 |
623.919 |
|
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
|
|
|
Selling and Distribution Expenses |
14.153 |
12.990 |
14.382 |
|
|
|
Personnel Cost |
153.215 |
144.840 |
117.207 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.002 |
(19.613) |
(44.633) |
|
|
|
Extra ordinary item |
(2.000) |
0.000 |
0.000 |
|
|
|
Prior period items |
0.172 |
0.348 |
0.000 |
|
|
|
Tax on extra ordinary and prior period items |
0.674 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
979.562 |
998.711 |
857.995 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
172.858 |
153.821 |
192.795 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
90.990 |
104.762 |
66.369 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
81.868 |
49.059 |
126.426 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
60.963 |
67.510 |
54.945 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
20.905 |
(18.451) |
71.481 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
7.269 |
(2.573)) |
56.974 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
13.636 |
(15.878) |
14.507 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
23.180 |
39.058 |
|
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
36.816 |
23.180 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
6.874 |
104.03 |
|
|
|
|
Capital Goods |
7.439 |
307.34 |
|
|
|
TOTAL IMPORTS |
14.313 |
411.37 |
165.730 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.60 |
2.00 |
6.60 |
|
Expected Sales (2010-2011) : Rs.1800.000 Millions
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
376.900 |
360.260 |
328.780 |
|
Total Expenditure |
320.150 |
300.800 |
278.170 |
|
PBIDT (Excl OI) |
56.750 |
59.460 |
50.610 |
|
Other Income |
1.750 |
0.000 |
0.510 |
|
Operating Profit |
58.500 |
59.460 |
51.120 |
|
Interest |
18.140 |
20.530 |
20.990 |
|
Exceptional Items |
(0.010) |
0.000 |
0.190 |
|
PBDT |
40.350 |
38.930 |
30.320 |
|
Depreciation |
19.650 |
19.770 |
19.570 |
|
Profit Before Tax |
20.700 |
19.160 |
10.750 |
|
Tax |
4.950 |
0.050 |
0.690 |
|
Profit After Tax |
15.750 |
19.210 |
10.050 |
|
Net Profit |
15.750 |
19.210 |
10.050 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.18
|
(1.38)
|
1.38 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.85
|
(1.61)
|
6.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.67
|
(1.36)
|
9.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
(0.04)
|
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.83
|
2.29
|
2.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.04
|
2.98
|
2.65 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
Sundry Creditors - Capital Goods |
16.956 |
7.871 |
|
|
Sundry Creditors - Others |
211.639 |
143.062 |
|
|
Total |
228.595 |
150.933 |
191.077 |
Note: The
registered office of the company has been shifted from 611, Veena Killedar Industrial Estate,
10-14, Pais Street, Byculla (West), Mumbai – 400 011, Maharashtra, India to the
present address w.e.f 09.06.2010.
Contingent Liabilities
(i) Guarantees given by banks on behalf of company Rs. 2.506 millions.
(ii) Letter of Credit Rs. 0.322 millions.
OPERATINAL
RESULTS:
The first quarter
of 2009-10 started on a very low note similar to the last two quarters of
2008-09. Thereafter Company had growth in the next three consecutive quarters.
In the fourth quarter Company achieved an all time high turnover. This was
despite poor off take from some of there major customers in the Earthmoving and
Power Industries.
The Company
returned to profitability in third quarter of 2009-10. There focus on improving
productivity and addition of more value to the jobs resulted in improvement of
there operating parameters. The EBIDT margin has marginally improved by 172
basis points to 15.20%. ROCE has marginally improved by 150 basis points to
6.23% but is still well below that of 9.67% achieved in 2008. There Balance
Sheet has improved with Debt Equity ratio coming down to 1.26 from 1.89 in the
previous year.
With improvement
in sales and reduction in debt the profitability ratios should significantly
improve going forward.
EXPANSION:
Company will have
to expand capacities at its Ahmedabad and Pune plants to take care of the
increased requirements of customers. This will mainly involve installation of
equipments to balance capacity. They expect to utilise there capacities fully,
at most plants, only in 2011-12 and hence capital expenditures will mainly be
to de-bottleneck or to add to technical capabilities in welding and forming.
Wear Plate
Division: The Company has decided to set a plant to manufacture "Wear
Plates" at Savli,
FINANCE:
During the year the Company allotted 47840 equity shares of Rs. 10/- each at a premium of Rs. 10/- per share under ESOP to employees of the Company. The total amount received from the employees amounted to Rs. 0.957 millions. The Company raised Rs. 20.900 millions by way of issue of 5,50,000 equity shares of Rs. 10/- each at a premium of Rs. 28 per share to the promoters and others on preferential basis.
CURRENT YEAR:
Current year has begun on an optimistic note. Sales during the first two months of the current year are Rs. 224.600 millions as compared to Rs. 163.500 millions in the same period in the previous year
MARKETS:
There has been a significant shift in the percentage of sales to different markets in 2009-10 as compared to 2008-09. The sale to Construction Equipment (CE) sector has gone down from 34% of total sales in 2008-09 to 24% of total sales in 2009-10.
As against this sale to Rail Transportation (RT) has gone up from 4% to 11%, sale to Power Generation and Distribution (PGD) from 13% to 18% and sale to Automotive from 7% to 23%. Ideally they would prefer sales to CE, RT, PGD and Automotive to each range between 20% to 25% of total sales.
Of the four major segments served only the Automotive Sector has bounced back strongly after the downturn. Business from PGD and CE is still very sluggish and far below peak levels seen in 2007-08.
INSURANCE:
All the properties of the Company have been adequately insured against fire, riot, earthquake, and various other risks.
Management Discussion
and Analysis
Rishi Laser derives most of its income from four main verticals - Construction Equipment, Power, Automotive and Rail Transportation. These four segments together contribute almost 80% of there total income. The Construction Equipment and Power verticals should see substantial growth in the coming years as a large part of infrastructure spending is being targeted there. They also have prestigious customers like Ingersoll Rand who have allowed us to set up a plant-in-plant at their Ahmedabad facility which is another testimony of the reliance key customers lay on there quality engineering execution capabilities.
Automotive
In FY 2009-10, the Indian automotive sector witnessed strong growth led by increasing disposable income and lower interest rates. High growth was observed in the two-wheeler segment while the commercial vehicle segment remained sluggish. Going ahead, industry estimates peg the growth of this sector (comprising of two wheelers, passenger cars, utility vehicles and commercial vehicles) in the range of 16-20% in FY 2010-11. Growth in the commercial vehicles segment (including buses) is likely to be stronger given infrastructure building programme under JNNURM.
There automotive business contributes approximately Rs. 240.000 millions to there total income. Apart from precision engineering and fabrication for commercial vehicles, they also supply paint booths and conveyors for automotive paint shops. There automobile engineering division in Pune caters to the demands of customers like TACO Hendrickson and Asian Motor Works. They are a dedicated vendor for large manufacturers who rely on there resourceful and reliable engineering execution skills. Increased business confidence in the commercial vehicles space coupled with higher requirements of freight carrying capacities is likely to fuel demand in this segment. They have a concentrated presence in the commercial vehicles segment and an improvement in macro scenario sweetens the current year's prospects for us.
Power
The Power sector in
There power business contributes about Rs. 190.000 millions to there total income. They are present in both the power generation as well as the transmission and distribution ends of the value chain. There principal customers are in the private sector. There Power vertical has witnessed a steady growth in the past couple of years and they have added significant delivery capabilities in this sector. There major customers are Areva T and D, ABB, CG Lucy and Schneider in the power transmission and distribution space and Alstom in the power generation space. Major products that they contribute to in this sector are SS Tanks, switch gear parts and hydro turbine components.
They are pleased with the progress made by the power generation equipments sector where they tried to add to there capabilities in the heavy fabrications space meant for the hydro-power sector. The increased opportunities for all the players in infrastructure development will increase dependence on reliable engineering companies like Rishi Laser. The growth expected in this sector is likely to increase opportunities for businesses like us which have the resourcefulness and ability to deliver high-end precision engineering products.
Rail Transportation
Rishi Laser has begun contributing to the growth in Indian metro rail infrastructure. All the building blocks necessary for the company to be cognizable players in this segment are in place, viz. ability, infrastructure and opportunities. They expect the delivery in the rail segment to drive ahead and make this an important contributor for the company. Currently, this division contributes about Rs. 110.000 millions of the total revenue of the company.
Railways will garner a significant chunk of the infrastructure investment planned in the country. As per initial estimates almost Rs. 4700000.000 millions is likely to be spent on railway infrastructure in the 12th Plan from 2012 to 2017. According to Crisil Research, a total investment of Rs. 619 billion in the Mass rapid transit system (MRTS) segment is expected. Of this monorail will account for 25% of the total upcoming MRTS projects while remaining will be metro rail. Foreign companies which will be delivering the rolling stock are anticipated to utilise the high-end expertise offered by Rishi Laser in this arena.
Construction
Equipment
McKinsey and Co. has predicted that
In 2009-10 the Construction Equipment segment contributed Rs. 250.000 millions to there top-line as against Rs. 340.000 millions in the previous year. However, they are seeing some recovery in this segment after 2 years of slowdown. There is a distinct step-up in investment over the next several years in infrastructure (ports, airports, roads etc.). These investments have the potential to sustain the growing demand for construction equipments. A substantial part of the infrastructure plans envisaged in the 11th Plan is expected to occur by 2012. Customer confidence in there capabilities as manufacturers of quality precision engineering has been reinforced with increased responsibilities heading there way. They have cemented a relationship with L and T Capital, which picked up a 26% stake in there subsidiary Rishi Consfab. Through this venture, they will provide cutting-edge precision engineering products to L and T Komatsu. There other customers in this segment include JCB, Volvo, Caterpillar, and Terex.
Financial performance
(on a standalone basis)
The global economic recovery during the year 2009 - 10 continued to be difficult. Focused efforts on four main verticals the company caters to i.e., Construction Equipments, Automotives, Power and Rail Transportation, yielded positive results as revenue from these verticals put together aggregated Rs. 789.200 millions or 76% of the top line in FY 10 compared to Rs. 571.900 millions or 58% of the top line in FY09.
Net revenues of the Company aggregated Rs. 1129.900 millions
in FY10 as against Rs. 1144.000 millions in FY09. One of the Company's plants
at
Revenues:
Turnover net of excise duty aggregated Rs. 1129.900 millions in FY 10 registering a moderate growth of 6.07% over FY09. Automotives saw demand revival particularly in the second half of FY 10 and revenues from this vertical recorded a remarkable growth of 255.47% to Rs. 244.800 millions in FY10 from Rs. 68.900 millions in FY09. Revenues from Rail Transportation and Power verticals registered growth of 171.55% and 50.42% respectively, in FY 10. Weak demand in the Construction Equipment sector resulted in decrease in revenue by 26.81% in FY 10 to Rs. 247.400 millions from Rs. 338.100 millions in FY 09. The Company recorded all time high Job work receipts of Rs. 141.200 millions in FY 10 constituting 12.50% of the net revenues compared to Rs. 84.700 millions constituting 7.40% of net revenue in FY 09. Growth of 66.70% in Job work receipts in FY 10 over FY 09 was on account of the stainless steel fabrication work undertaken for the Metro Rail coaches.
Expenditure:
Raw material and manufacturing expenses amounted to Rs. 763.600 millions, translating to 67.58% of the net revenue, which was Rs. 1129.900 millions. As compared to the previous year, the costs reduced by 180 basis points which could be attributed to improved sales mix, favorable input prices and improved productivity. Personnel Cost increased by 5.78% to Rs. 153.200 millions from Rs. 144.800 millions in FY09. The increase was mainly due to annual increments. Financial Expenses decreased from Rs. 104.800 millions in FY 09 to Rs. 91.000 millions in FY 10. No additional borrowings were mobilized during FY 10. Term borrowing related to the subsidiary amounting to Rs. 115.000 millions was transferred to the subsidiary Company. With sizable term debt due for repayment in FY 11, financial expenses are expected to take a sharp decline in FY 11.
Opportunities
Large Infrastructure spending: Large spending on infrastructure provides for good growth opportunities particularly in the construction equipment and Power verticals as a substantial part of spending is targeted on these verticals. Growth in the commercial vehicles segment (Including buses) is likely to be stronger, given infrastructure building programme under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Railways will garner a significant chunk of the infrastructure investment planned in the country. As per initial estimates almost Rs. 4700000.000 millions is likely to be spent on railway infrastructure in the 12th plan from 2012 to 2017 providing good growth opportunities to companies like there’s. Exports: Global economic recovery continued to be difficult for most western economies during FY 10.
However, there were some signs of revival in the second half
of FY 10. The revival process would pose challenges for small family-owned and
medium business houses in the western world. Due to the cost competitive
structure there could be substantial export opportunities of fabricated
components for Indian Companies to
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30.06.2010
Rs. In Millions
|
Particulars |
|
Quarter ended 30.06.2010 (Unaudited) |
|
a) Net Sales / Income from Operations |
|
376.896 |
|
b) Other Operating Income |
|
-- |
|
Total |
|
376.896 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
|
(22.447) |
|
(b) Consumption of Raw Materials |
|
228.629 |
|
(c) Employees Cost |
|
43.171 |
|
(d) Depreciation |
|
19.652 |
|
(e) Other Expenditure |
|
70.787 |
|
Total |
|
339.792 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
37.104 |
|
Other Income |
|
1.747 |
|
Profit/(Loss) before Interest and Exceptional items |
|
38.851 |
|
Interest |
|
18.137 |
|
Profit / (Loss) after interest before Exceptional items |
|
20.714 |
|
Exceptional Items |
|
(0.011) |
|
Profit / (Loss) From
Ordinary activities before Tax and Minority Interest |
|
20.703 |
|
Tax expense |
|
4.953 |
|
Net Profit/(Loss) From Ordinary activities after Tax before Minority Interest |
|
15.750 |
|
Minority Interest |
|
-- |
|
Profit / (Loss) after
Minority Interest |
|
15.750 |
|
Extraordinary items net of tax expenses |
|
-- |
|
Net Profit/(Loss) for the period |
|
15.750 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
85.475 |
|
Reserves (Excluding Revaluation Reserves) |
|
-- |
|
Public Share
Holding |
|
|
|
Before
Extraordinary Items |
|
1.84 |
|
-Basic |
|
1.84 |
|
-Diluted |
|
|
|
After Extraordinary Items |
|
|
|
-Basic |
|
1.84 |
|
-Diluted |
|
1.84 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
|
6762981 |
|
- Percentage of shareholding |
|
79.12 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
865800 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
48.52 |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
10.13 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
918719 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
51.48 |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
10.75 |
Notes:
- Rishi Laser is
engaged in lire sore segment of precision metal fabrication.
- The above
Unaudited financial results were considered and taken on record by the
Board of Directors at their meeting held on 29.07.2010.
- The above
results are in accordance with the Accounting Standards issued by the
ICAI.
- The above
Unaudited financial results (or the quarter ended 30.06.2010 were reviewed
by statutory auditors of the Company.
- Since the
subsidiary has not commenced operations in the corresponding quarter in
the previous year, consolidated figures for the said quarter ended
30.06.2009 are not provided separately.
- There was no
investor compliant pending at the beginning of the quarter. The’ Company
daring the quarter received no investor complaint.
- The previous
year’s figures have been regrouped wherever necessary.
- Visit us on
www.dshilaser.com
FIXED ASSTES:
- Free
- Plant and
Machinery
- Electrical
Installations
- Tools and
Dyes
- Furniture
- Fixtures
- Office
Equipments
- Computers
- Vehicles
Trade References:
- Bambadia Transportation (I) Limited
WEBSITE DETAILS:
The company's sales has increased form Rs.144.0 million in 2003-04 to Rs.1047.30 million in 2007-08 at a compounded annual growth rate (CAGR) of 64% over a period of last 5 years.
With increased focus on supply to infrastructure equipment (IE) sector, they are not only likely to sustain the growth rate but also to better it in years to come. This augurs well for them, in view of the Government of India's recognition of infrastructure development as a key driver for the economy as a whole and its massive spending on this sector. They have maintained operating and net profit margin of around 20% and 5% respectively. Volatility in steel prices poses a challenge for the company to maintain same operating profit margin as its not always possible to pass on the increased burden entirely to customer. However, with better sale mix and materials management, they hope to maintain the same operating margin in future.
Turnkey fabrication projects offer better margins compared to that of contract manufacturing. With this view, company plans to increase focus on project work, which will enhance the profitability in the time to come. RLL has been rewarding its stakeholders since 2004 and the dividend pay out has increased from 12.5% in 2004 to 20% in 2008
1. MR. HARSHAD PATEL
Mr Harshad Patel has been on the Board of the company from the inception. At present he is the only Managerial Person looking after the operations of the Company. Mr Harshad Patel is a qualified Chartered and Cost Accountant. He is 52 years old. He has over 22 years experience in Business and Industry. The responsibility of Mr.Harshad Patel has gone up manifold and will increase further in future, as the Company is planning further expansion at its various units. The Board has decided to appoint him as Managing Director for a period of three years from 01.04.2008.
2. MR. VASANT GORAY
Mr.Vasant Goray was appointed as Director in the Annual General Meeting held on 27.09.2006. He is a post graduate in Commerce and a Member of Institute of company Secretaries of India. He is 59 years old. He has over 22 years experience in Company Law and legal matters. He is an independent Director.
3. MR. VANDAN SHAH
Mr. Vandan Shah was appointed as Director in the Annual General Meeting held on 27.09.2006. Mr.Vandan Shah is aged 49 years is an engineering Graduate and currently Managing Director in Sipra Engineers Private Limited. Mr Vandan Shah has over 23 years experience in Industry mostly in engineering sector. He is an Independent Director.
4. MR. JAYESH SHETH
Mr. Jayesh Sheth, aged 52 years is a Director of the Company since 1995. He is a Commerce Graduate and a Director in a leading stock broking firm, Kantilal Chhaganlal Securities Private Limited. He has over 25 years experience in business.
5. MR. DINESH MEHTA
Mr. Dinesh Mehta was appointed as Director in the Annual General Meeting held on 27.09.2006. He is a commerce graduate with a degree in Law. He has over 29 years experience in accounts, audit and finance. He is an independent Director.
With 13 manufacturing units across 5 states of India, they
have one of the largest enterprise-wide infrastructure for Sheet steel
fabrication with 27000 M˛ manufacturing area and sheet steel processing
capacity of 46000 MT p.a.
They believe that modern facilities with sate-of-the-art machinery, material
handling facilities and supporting infrastructure are the key for continuity of
leadership position in the industry in which they operate. Their Infrastructure
includes, state of the art CNC Laser cutting machines, CNC Press Brakes, CNC
Turret Punch presses, various types of Welding machines and Surface treatment
plants. They have out of the box fabrication facilities like 5-Axis 3D laser
cutting machine, welding robots and modular jigs and fixtures. They have crane capacities upto 20 MT.
They also have fabrication supporting facilities like Horizontal boring
machine, Moving column milling centre, Lathe Machines and Drilling machines.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.38 |
|
|
1 |
Rs.73.08 |
|
Euro |
1 |
Rs.61.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.