MIRA
INFORM REPORT
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Report Date : |
17.01.2011 |
IDENTIFICATION DETAILS
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Name : |
RAJASTHAN MECHANICAL WORKS LIMITED |
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Registered Office : |
A-188 (B), Road No.6-D, V.K.I Area, Jaipur – 302013, Rajasthan |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
20.07.1995 |
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Com. Reg. No.: |
17-10428 |
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CIN No.: [Company
Identification No.] |
U34300RJ1995PLC010428 |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Agricultural Implements in Various Size
and Designs. |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 28000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However trade relations are reported as
fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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
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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 |
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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
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Name : |
Mr. Dinesh Gupta |
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Designation : |
Director |
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Contact No.: |
91-9829015492 |
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Date : |
15.01.2011 |
LOCATIONS
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Registered Office/Factory : |
A-188 (B), Road No.6-D, V.K.I Area, Jaipur – 302013, Rajasthan |
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Tel. No.: |
91-141-2331549/2332239/5107430/2231654 |
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Mobile No.: |
91-9829015492 (Mr. Dinesh Gupta) |
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Fax No.: |
91-141-2332631 |
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E-Mail : |
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Website: |
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Area : |
3000 sq.ft |
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Location : |
Owned |
DIRECTORS
As on 30.09.2010
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Name : |
Mr. Surendra Kumar Gupta |
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Designation : |
Director |
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Address : |
6/380, Vidhyadhar Nagar, Jaipur-302023, |
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Date of Birth/Age : |
50 Years |
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Qualification : |
Graduate |
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Date of appointment: |
20.07.1995 |
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DIN No. : |
00327330 |
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Name : |
Mr. Mahendra Kumar Gupta |
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Designation : |
Whole Time Director |
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Address : |
6/380, Vidhyadhar Nagar, Jaipur-302023, |
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Date of Birth/Age : |
54 Years |
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Qualification : |
Graduate |
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Date of appointment: |
20.07.1995 |
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DIN No. : |
01570197 |
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Name : |
Mr. Dinesh Kumar Gupta |
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Designation : |
Whole Time Director |
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Address : |
F-301-302, |
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Date of Birth/Age : |
46 Years |
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Qualification : |
Graduate |
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Date of appointment: |
20.07.1995 |
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DIN No. : |
00327306 |
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Name : |
Mr. Hemant Gupta |
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Designation : |
Whole Time Director |
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Address : |
T-5, Safair Anand, Plot No.101, Meera Marg, |
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Date of Birth/Age : |
38 Years |
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Qualification : |
Graduate |
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Date of appointment: |
20.07.1995 |
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DIN No. : |
01885735 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
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Names of Shareholders |
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No. of Shares |
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Mahendra Kumar Gupta |
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28000 |
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Surendra Kumar Gupta |
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65000 |
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Dinesh Kumar Gupta |
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81000 |
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Hemant Gupta |
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13500 |
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Shashi Gupta |
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120000 |
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Manju Gupta |
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20000 |
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Gomti Devi |
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92500 |
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Brahampuri Steels Limited – |
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100 |
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Kalpna Gupta |
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100 |
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Jagan Nath Gupta |
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100 |
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Gomti Stampings Private Limited – |
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100 |
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Seema Gupta |
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300 |
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Mahendra Kumar Gupta (HUF) |
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100 |
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Surendra Kumar Gupta |
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100 |
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Santosh Gupta |
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2800 |
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Parul Alloys (Private) Ltd – |
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20000 |
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Total
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443700 |
As on 10.12.2010
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List of Allottees |
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No. of Shares |
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Shashi Gupta |
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1200 |
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Manju Gupta |
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1290 |
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Gomti Devi |
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920 |
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Kapana Gupta |
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130 |
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Seema Gupta |
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650 |
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Total |
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4190 |
As on 30.09.2010
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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 : |
Manufacturer and Exporter of Agricultural Implements in Various Size
and Designs. |
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Products : |
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Brand Names: |
Brahmpuri |
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Exports : |
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Product : |
· Agriculture Implements |
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Countries : |
·
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Srilanka ·
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Terms : |
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Selling : |
Cash, Credit: 30 Days |
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Purchasing : |
Cash, Credit |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
50 [20 – In Office + 30 –
In
Factory] |
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Bankers : |
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Facilities : |
Cash Credit: Rs. 25.000 Millions (State Bank of
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Gupta Rajiv and Associates Chartered Accountants |
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Address : |
5, Neelkanth Nathmal JI KA Katla, Opposite Sanganeri Gate, Telephone
Exchange, Jaipur-302003, |
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Tel. No.: |
91-141-2609277 (15 Lines) |
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Fax No.: |
91-141-2604883 |
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E-Mail : |
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Pan No.: |
AABFG1505D |
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Memberships : |
· Laghu Udyog
Bharti · VKI Association · Engineering
Export Promotion Council (EEPC) |
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Holding Companies: |
·
Brahampuri Steel Limited ·
Gomti Stamping Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000 |
Equity Shares |
Rs.10/-each |
Rs. 5.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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443700 |
Equity Shares |
Rs.10/-each |
Rs. 4.437
millions |
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Note:
Of the above,
420000 equity shares of Rs. 10/- each aggregating Rs. 4.200 millions were
issued to promoters at the time of incorporation of company as the Company was
incorporated under part IX of the Act. These are for other than cash
After 30.09.2010
Authorised Capital : Rs. 5.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 4.856
Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.437 |
4.437 |
4.437 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.603 |
1.492 |
1.528 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7.040 |
5.929 |
5.965 |
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LOAN FUNDS |
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1] Secured Loans |
18.322 |
7.215 |
5.699 |
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2] Unsecured Loans |
2.329 |
2.885 |
4.444 |
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TOTAL BORROWING |
20.651 |
10.100 |
10.143 |
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DEFERRED TAX LIABILITIES |
0.110 |
0.000 |
0.000 |
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TOTAL |
27.801 |
16.029 |
16.108 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9.532 |
4.771 |
5.019 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.084 |
0.084 |
0.084 |
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DEFERREX TAX ASSETS |
0.000 |
0.072 |
0.064 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
11.945
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7.438
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7.524
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Sundry Debtors |
6.002
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2.539
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4.612
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Cash & Bank Balances |
0.896
|
0.765
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0.765
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Other Current Assets |
0.000
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0.000
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0.000
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Loans & Advances |
5.082
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2.618
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1.169
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Total
Current Assets |
23.925
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13.360
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14.070
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
3.429
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0.054 |
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Other Current Liabilities |
1.266
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1.380
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3.022
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Provisions |
1.045
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0.824
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0.107
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Total
Current Liabilities |
5.740
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2.258
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3.129
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Net Current Assets |
18.185
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11.102
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10.941
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
27.801 |
16.029 |
16.108 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
80.256 |
50.823 |
31.922 |
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Other Income |
0.672 |
0.845 |
0.438 |
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TOTAL (A) |
80.928 |
51.668 |
32.360 |
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Less |
EXPENSES |
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Manufacturing Expenses |
2.139 |
1.563 |
0.803 |
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Administrative Expenses |
1.542 |
0.953 |
0.733 |
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Material Cost |
63.837 |
42.469 |
26.770 |
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Increase/(Decrease) in Finished Goods |
(0.057) |
0.030 |
(0.446) |
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Payment and provision for employees |
5.078 |
2.515 |
2.172 |
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Selling
Expenses |
3.813 |
1.539 |
0.996 |
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Loss on sale of vehicles |
0.144 |
0.000 |
0.000 |
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TOTAL (B) |
76.496 |
49.069 |
31.028 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I |
4.432 |
2.599 |
1.332 |
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Less |
FINANCIAL
EXPENSES (D) |
1.695 |
1.512 |
0.860 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2.737 |
1.087 |
0.472 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
0.418 |
0.307 |
0.290 |
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PROFIT BEFORE
TAX (E-F) (G) |
2.319 |
0.780 |
0.182 |
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Less |
TAX (I) |
0.691 |
0.297 |
0.075 |
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PROFIT AFTER TAX
(G-I) (J) |
1.628 |
0.483 |
0.107 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1.492 |
1.528 |
1.421 |
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Less |
APPROPRIATIONS |
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Proposed Dividend |
0.444 |
0.444 |
0.000 |
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Corporate Dividend Tax |
0.073 |
0.075 |
0.000 |
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BALANCE CARRIED
TO THE B/S |
2.603 |
1.492 |
1.528 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
7.783 |
3.940 |
2.677 |
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TOTAL EARNINGS |
7.783 |
3.940 |
2.677 |
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Earnings Per
Share (Rs.) |
3.68 |
1.10 |
0.24 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
2.01
|
0.93
|
0.33
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Net Profit Margin (PBT/Sales) |
(%) |
2.89
|
1.53
|
0.57
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.93
|
4.30
|
0.95
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Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.13
|
0.03
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Debt Equity Ratio (Total Liability/Networth) |
|
3.75
|
2.08
|
2.22
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Current Ratio (Current Asset/Current Liability) |
|
4.17
|
5.92
|
4.50
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LOCAL AGENCY FURTHER INFORMATION
Trade
References:
- EDC Limited
- Brahampuri
Steel Limited
OPERATION:
During the year the company did well. The directors expect that the
company will achieve new heights in the ensuing year.
Bankers Charges
Report as per Registry
|
Name of the company |
RAJASTHAN MECHANICAL WORKS LIMITED |
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Presented By |
Mr. Surendra Kumar
Gupta, Director |
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1) Date and description of instrument creating the change |
Hypothecation
agreement dated 20.03.2002. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.500
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 |
Hypothecation of
stock, goods such as agricultural implements and movable property at
premises, at A – 188 (b), Road no. 6 D, VKI Area, Jaipur such as cultivator,
disc farmer, semi finished and finished goods and packing materials etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest:
˝% above SBAR with a minimum of 16.5% p.a, Margin – 30%, Repayment on demand |
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5) Name and Address and description of the person entitled to the charge. |
SBBJ Johtwara
Industrial Area, Jaipur |
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6) Date and brief description of instrument modifying the charge |
1. Agreement of
Hypothecation of goods and assets for increase in the overall limit dated
31.08.2005 2. Agreement of
loan for increase in the overall limit dated 31.08.2005 |
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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. |
1. Limit has
increased from Rs. 3.300 millions to Rs. 4.200 millions 2. Ad hoc cash
credit limit for 3 months of Rs. 0.900 millions 3. Margin: i) Raw
materials 35% ii) Book debts / receivables 50% 4. Security of
Raw material, SIPF good and bad bets. All securities available for cash
credit limits will also cover this limit. |
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Corporate
identity number of the company |
U34300RJ1995PLC010428 |
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Name of the
company |
RAJASTHAN
MECHANICAL WORKS LIMITED |
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Address of the
registered office or of the principal place of business in |
A-188 (B), Road
No.6D, V.K.l Area, Jaipur-302013, |
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This form is for |
Modification of
charge |
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Type of charge |
Immovable property Book debts Movable property (not being pledge) |
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Particular of
charge holder |
State Bank of E-mail I.D.: sbbj10028@sbbj.co.in |
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Nature of
instrument creating charge |
1.Letter of
aarrangement.SME-1 2.Supplemental
Agreement of loan cum hypothecation.SME-4 3. Letter of
confirmation for extension of mortgage by deposit of title deed. 4. Board
Resolution. |
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Date of
instrument Creating the charge |
27.08.2010 |
|
Amount secured by
the charge |
Rs. 38.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Interest: on CC @
2.75% above Base Rate i.e., 10.50% on CC limit against applicable rate of 4%
above Base Rate i.e., 11.75% p..a For SLC and CCOD
@ Additional 1% over regular WC facilities. Terms of repayment Repayable on
demand Margin On Raw Material -
25% On SIP and FG -
25% On book debts (up
to 90 days) - 40% On EPC (within
CC) 25% On BG 15% by way of cash / STDR. (100% in case of
disputed guarantee) Extent and Operation of the charge The charge will operate
as first charge to the extent of Rs.38.000 millions to secure overall limits
granted to company by the bank.CC (Hypo.) Rs.22.500 millions BD (within
CC) (Rs.8.000 millions) Adhoc CCOD
(within CC) (Rs.5.000 millions) Against Clearing
within CC (Rs.2.500 millions) EPC/FBP (Within
CC) (Rs.3.000 millions) SLC Rs.3.000 millions BG Rs.10.000 millions LC Rs.2.500 millions Total Rs.38.000 millions Others As per banks
norms. |
|
Particulars of
the property charged |
First charge by way
of hypothecation of all stocks of raw material, semi finished and finished
goods, stock in process consumable goods, stores and spares, all present and
future book debts, movable plant, machinery and all present and future
current and fixed assets of the company to cover overall limits of Rs.38.000
millions granted to company by the bank. Equitable Mortgage is extended on
immovable property of the company comprising land and building constructed or
to be constructed, Fixed plant and machinery, erected or to be erected both
present and future situated at Plot No. A-188-B, Road No. 6-D, VKI Area,
Jiapur as a security to cover overall limits of Rs.38.000 millions granted to
the company by the bank |
|
Particulars of
the present modification |
By this modification
limits has been enhanced from Rs.18.650 millions to Rs.38.000 millions and Em
is also extended on immoveable property of the company situated at Plot No.
A-188-B, Road No. 6-D, VKI Area, Jiapur. Limits as follow. CC (Hypo.)
Rs.22.500 millions, BD (within CC)
(Rs.8.000 millions) Adhoc CCOD
(within CC) (Rs.5.000 millions) Against Clearing
within CC (Rs.2.500 millions) EPC/FBP (Within
CC) (Rs.3.000 millions) SLC Rs.3.000 millions BG Rs.10.000 millions LC Rs.2.500 millions Total Rs.38.000 millions |
FIXED ASSTES:
- Land
- Building
- Plant and
Machinery
- Electric
Fitting
- Dies and Jigs
- Tools
- Office
Equipments
- Furniture and
Fixture
- Vehicles
COMPANY PROFILE:
The best agricultural implements
made available under one roof offering excellent quality Spring Loaded Tiller,
Heavy Duty Spring Loaded Tiller, Leveller, Seeding Attachment (Seed cum
Fertilizer), Mounted Type Offset Disc Harrow, Mounted Disc Harrow, 9 Tine Rigid
Tiller, Disc Plough, Automatic Disc Plough, etc.....
An Introduction
Subject part of the
'BRAHMPURI' group, was established in the year 1977 as a family owned
partnership firm and was converted into a public limited company in 1995 under
the chairmanship of Mr. Mahendra Kumar Gupta, who is a qualified Engineering
graduate.
The
company is engaged as a manufacturer, exporter and supplier of agricultural
implements in various sizes and designs. Their brand 'BRAHMPURI' is a popular
name among farmers and tractor dealers in
They
have been supplying their products to various tractor manufacturers in
Their
products are as good as the original and conform to international standards.
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.45.30 |
|
|
1 |
Rs.71.73 |
|
Euro |
1 |
Rs.60.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.