MIRA
INFORM REPORT
|
Report Date : |
27.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
ROOTS CAST PRIVATE LIMITED (w.e.f. 10.05.2000) |
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Formerly Known
As : |
ARUNA AUTO CASTINGS PRIVATE LIMITED |
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Registered
Office : |
R K G Industrial Estate, Ganapathy, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.05.1999 |
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Com. Reg. No.: |
18-8854 |
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Capital Investment
/ Paid-up Capital : |
Rs.27.500 millions |
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CIN No.: [Company Identification
No.] |
U27310TZ1999PTC008854 |
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|
Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer of High Pressure Die Cast Aluminium and Zinc components |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 350000 |
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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. 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
LOCATIONS
|
Registered Office : |
R K G Industrial Estate, Ganapathy, |
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Tel. No.: |
91-422-4330330 |
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Fax No.: |
91-422-2332107 |
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E-Mail : |
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Website : |
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Factory : |
Arugampalayam, |
DIRECTORS
As on 10.09.2010
|
Name : |
Mr. K Ramasamy |
|
Designation : |
Chairman |
|
Address : |
14-A, Anbagam, Ganapathy, |
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Date of Birth/Age : |
01.08.1948 |
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Date of Appointment : |
03.05.1999 |
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|
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|
Name : |
Mr. O A Balasubramaniam |
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Designation : |
Managing Director |
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Address : |
45A Periyasamy Layout, |
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Date of Birth/Age : |
06.05.1957 |
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Date of Appointment : |
03.07.2007 |
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DIN No. : |
01554204 |
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|
Name : |
Mrs. R Yokanayaki |
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Designation : |
Director |
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Address : |
14-A, Anbagam, Ganapathy, |
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Date of Birth/Age : |
15.10.1953 |
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Date of Appointment : |
03.05.1999 |
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Date of Ceasing : |
18.03.2011 |
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DIN No. : |
00058253 |
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|
|
|
Name : |
Mr. R Varun Karthikeyan |
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Designation : |
Director |
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Address : |
14-A, Anbagam, Ganapathy, |
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Date of Birth/Age : |
03.07.1982 |
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Date of Appointment : |
08.07.2006 |
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DIN No.: |
00585158 |
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Name : |
Mr. S Chandrasekar |
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Designation : |
Whole Time Director |
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Address : |
No. 20, Alamelu Nagar, Upplipalayam, |
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Date of Birth/Age : |
28.09.1955 |
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Date of Appointment : |
28.08.2007 |
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Name : |
Mr. G D Gopalakrishnan |
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Designation : |
Director |
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Address : |
11, Rayappa Nagar, Ganapathy, |
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Date of Birth/Age : |
10.09.1963 |
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Date of Appointment : |
06.09.1999 |
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|
Name : |
Mr. D Sivaprakasam |
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Designation : |
Director |
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Address : |
5/4, Gokulam Velavan Nagar Extension, M |
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Date of Birth/Age : |
15.12.1961 |
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Date of Appointment : |
01.11.2009 |
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DIN No. : |
|
KEY EXECUTIVES
|
Name : |
Mr. Manimekala V Raj |
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Designation : |
Company Secretary |
|
Address : |
286-A, |
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Qualification : |
M.Com, FCS |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 10.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
K Ramasamy |
|
868100 |
|
R Yokanayaki |
|
411345 |
|
R Varun Karthikeyan |
|
837555 |
|
R K Umaadhevi |
|
30000 |
|
K Ramasamy (HUF) |
|
103000 |
|
Roots Auto Products Private Limited |
|
500000 |
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|
|
|
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Total |
|
2750000 |
l
As on 10.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
18.00 |
|
Directors
or relatives of directors |
|
82.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of High Pressure Die Cast Aluminium and Zinc components |
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Non-Ferrous castings |
Tonnes |
NA |
NA |
1998 |
|
Dies |
Nos. |
NA |
NA |
9 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of Commercial Branch, 1443, ·
Indian Bank Ram Nagar Branch, 22 and 23, Sarojini
Street, ·
Axis Bank Limited 1095, Vigneshwar Cresta, ·
Citi Bank N.A. ·
ICICI Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mr. R Gurubatham Chartered Accountant |
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Address : |
10A, |
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Group Companies : |
·
Roots Industries India Limited ·
Roots Auto Products Private Limited ·
Roots Multiclean Limited ·
Roots Cast Private Limited ·
Roots Precision Products Private Limited ·
Roots Metrology Laboratory ·
Roots Polycraft ·
R K Nature Cure Home ·
Satchidananda Jothi Nikethan ·
Integral Yoga Institute ·
Roots Industries ·
American Auto Service Private Limited |
CAPITAL STRUCTURE
As on 10.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2750000 |
Equity Shares |
Rs.10/- each |
Rs.27.500
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 |
27.500 |
27.500 |
27.500 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
59.353 |
49.825 |
44.588 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
86.853 |
77.325 |
72.088 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
99.298 |
113.592 |
103.641 |
|
|
2] Unsecured Loans |
4.816 |
4.816 |
19.013 |
|
|
TOTAL BORROWING |
104.114 |
118.408 |
122.654 |
|
|
DEFERRED TAX LIABILITIES |
7.081 |
8.403 |
8.446 |
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|
|
|
|
|
|
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TOTAL |
198.048 |
204.136 |
203.188 |
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|
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APPLICATION OF FUNDS |
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|
|
|
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FIXED ASSETS [Net Block] |
98.962 |
96.691 |
98.155 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
70.055
|
59.427 |
57.174 |
|
|
Sundry Debtors |
121.581
|
76.793 |
94.741 |
|
|
Cash & Bank Balances |
3.615
|
3.861 |
3.549 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
14.315
|
17.872 |
17.548 |
|
Total
Current Assets |
209.566
|
157.953 |
173.012 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
100.906
|
42.774 |
56.923 |
|
|
Other Current Liabilities |
9.699
|
6.877 |
|
|
|
Provisions |
(0.125)
|
0.857 |
|
|
Total
Current Liabilities |
110.480
|
50.508 |
67.979 |
|
|
Net Current Assets |
99.086
|
107.445 |
105.033 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
198.048 |
204.136 |
203.188 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
225.784 |
171.299 |
213.373 |
|
|
|
Labour charges received |
73.856 |
60.297 |
106.884 |
|
|
|
Other Income |
1.255 |
3.578 |
2.732 |
|
|
|
Stock Adjustment (Increase / Decrease) |
5.515 |
5.565 |
(2.802) |
|
|
|
TOTAL (A) |
306.410 |
240.739 |
320.187 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
|
201.886 |
93.001 |
|
|
|
Employee Cost |
|
|
41.598 |
|
|
|
Manufacturing Overheads |
|
|
117.277 |
|
|
|
Selling and Administrative Overheads |
|
|
18.329 |
|
|
|
TOTAL (B) |
266.546 |
201.886 |
270.205 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
39.864 |
38.853 |
49.982 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
13.846 |
16.701 |
17.788 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
26.018 |
22.152 |
32.194 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
12.203 |
12.853 |
11.764 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
13.815 |
9.299 |
20.430 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4.287 |
4.063 |
7.525 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9.528 |
5.236 |
12.905 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
49.825 |
44.589 |
34.305 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
0.000 |
2.241 |
|
|
|
Dividend Tax |
0.000 |
0.000 |
0.381 |
|
|
BALANCE CARRIED
TO THE B/S |
59.353 |
49.825 |
44.588 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
118.800 |
113.000 |
139.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
0.000 |
0.879 |
2.095 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
3.46 |
1.90 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.11
|
2.17 |
4.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.12
|
5.43 |
9.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.48
|
3.65 |
7.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.12 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.47
|
2.18 |
2.64 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.90
|
3.13 |
2.55 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE AND FUTURE OUTLOOK
The Indian economy
has shown the slow recovery during the beginning of the financial year 2009-10.
From the second quarter of the financial year, the Automobile market has
recovered well and the positive trend reviled during the remaining period. The
Primary focus of the company is to improve Supply Chain management to meet the
sudden growth in the automobile industry resulted in increasing customers
demands.
The Company by
increasing its turnover from Rs.231.596 millions in 2008-09 to Rs.299.640
millions in 2009-10 achieved the growth rate of 29.38%.
The Company's
Domestic Turnover has increased from 118.605 millions in the year 2008-09 to
Rs.180.843 millions in 2009-10 showing a remarkable growth of 52.5% and Export
Turnover has increased from Rs.112.991 millions in the year 2008-09 to
Rs.118.808 millions in the year 2009-10 representing a growth of 5.15%. The
Earning before lnterest, Depreciation and Taxation stood at Rs.39.865 millions
in the year 2009-10 as against Rs.38.854 millions in 2008-09 showing an
increase of 2.60%.
The Profit Before
Tax has increased from Rs.9.299 millions (2008-2009) to Rs.13.815 millions in
the year 2009-2010 and more thrust was given to Cost control and Cost reduction
measures to improve the profitability.
CONTINGENT
LIABILITIES
|
Particulars |
As
on 31.03.2010 Rs.
in millions |
As
on 31.03.2009 Rs.
in millions |
|
Bank guarantee furnished |
4.983 |
5.275 |
FORM 8
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90008735 |
|
Corporate
identity number of the company |
|
|
Name of the
company |
U27310TZ1999PTC008854 |
|
Address of the
registered office or of the principal place of business in |
R K G Industrial Estate, Ganapathy, |
|
Type of charge |
·
Immovable
Property ·
Movable
Property ·
Others Plant and Machinery |
|
Particular of
charge holder |
State Bank of Commercial Branch, 1443, |
|
Nature of description
of the instrument creating or modifying the charge |
1. Supplemental
Agreement of Loan for increase in the overall limit (Form C.1-A) 2. Supplemental
Agreement of Hypothecation of Goods and Assets (Form C.2-A) 3. Letter
regarding the grant of individual limits within the overall limit (Form C.5) 4. Memorandum of
Deposit for creation of further charge (Form C.10) |
|
Date of
instrument Creating the charge |
18.03.2011 |
|
Amount secured by
the charge |
Rs.70.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 6.75% above Base
Rate Present effective rate 15% per annum Terms of
Repayment Repayable on
demand Margin 25% for EPC, raw
materials, stock in process, finished goods and stores. 40% over Receivables
with a cover period of 90 days and 10% for LC and BG Extent and
Operation of the charge Primary: CC with
EPC and FBD/FBP sublimit - charge over Current assets on paripassu basis with
other Member Banks in MBA. FBD/FBP sublimit: Document of title to goods. LC -
Goods coverered by LC and charge over
Current assets on paripassu basis with other Member Banks. BG - Counter
guarantee of the company and charge over Current assets on paripassu basis
with other Member Banks in MBA. Collateral: Paripassu first charge on entire
Fixed Assets of the company with other Member Banks in MBA Others Total limits of
Rs.70.000 millions consist of CC/WCDL Rs.50.000 millions (with DDP cheque
sublimit of Rs.5.000 millions and EPC/FBD sublimit of Rs.40.000 millions),
LC(WC) Rs.10.000 millions and Bank
Guarantee Rs.10.000 millions. |
|
Short particulars
of the property charged |
1. Stock of Raw materials, Stock in process,
Finished goods and other movable assets 2. Receivables/Bookdebts 3. Receivables/Bookdebts, Plant and Machinery
(present and future) 4. immovable properties of the company
admeasuring 1.30 acres out of 3.52 acres under SF No.98/3 (now subdivided as
SF No.98/3C) situated at Kunnathur village (Arugampalayam), Avinashi Tk |
|
Particulars of
the present modification |
Aggregate limits
increased from Rs.64.000 millions to Rs.70.000 millions secured by Stock of
raw materials, stock in process, finished goods, movable assets, book
debts/receivables, plant and machinery and Equitable mortgage on the
immovable properties of the company at Kunnathur village (Arugampalayam),
Avinashi Taluk admeasuring 1.30 acres out of 3.52 acres under SF No.98/3 (now
subdivided as SF No.98/3C) |
FIXED ASSETS
·
Land
·
Buildings
·
Machinery
·
Dies and Tools
·
Electrical Machinery
·
Computers
·
Furniture and Office Equipments
·
Vehicles
WEB DETAILS
Profile
Subject (formerly known as Aruna Auto Castings Private
Limited) was established in 1984 to meet the captive requirements of the Roots group.
With its ever probing eye on the needs of the market, the company in the late
80s expanded its operations to manufacture High Pressure Die Cast Aluminium and
Zinc components to the exacting needs of various customers in Automobile and
Textile Industries with a high degree of Quality and Perfection.
Subject, now has established itself as a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool
design, tool making and pressure die cast component manufacturing.
Subject supplies machined castings and sub-assemblies as per customer
requisitions.
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.44.94 |
|
|
1 |
Rs.71.89 |
|
Euro |
1 |
Rs.64.09 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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.