MIRA
INFORM REPORT
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Report Date : |
21.03.2011 |
IDENTIFICATION DETAILS
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Name : |
REMSONS INDUSTRIES LIMITED |
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Registered
Office : |
88 B Government Industrial Estate, Kandivali (West), Mumbai-400067, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
11.05.1971 |
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Com. Reg. No.: |
015141 |
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CIN No.: [Company Identification
No.] |
L51900MH1971PLC015141 |
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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
: |
Manufacture of Auto Control Cables and Gear Shifter Mechanisms with
Push Pull Cables. |
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 330000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. The company can be considered for small to mediocre 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 |
LOCATIONS
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Registered / Corporate Office : |
88 B Government Industrial Estate, Kandivali (West), Mumbai-400067,
Maharashtra, India |
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Tel. No.: |
91-22-28683883/28684552/28682368 |
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Fax No.: |
91-22-28682487 |
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E-Mail : |
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Factory 1 : |
1/3 Mile Stone, |
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Factory 2 : |
A2/27, Somnath Industrial Estate, Daman-396210 |
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Factory 3: |
A2/4, somnath Industrial Estate, Daman-396210 |
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Factory 4: |
Goodluck House, Survey No.729/1, Ringanwada, Village Dabhel, |
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Factory 5: |
Survey No. 146, Village Khadki, Pardi-396121 |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. V. Harlalka |
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Designation : |
Chairman |
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Name : |
Mr. K. Kejriwal |
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Designation : |
Managing Director |
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Name : |
Mrs. C. Kejriwal |
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Designation : |
Whole-time Director |
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Name : |
Mr. Ming Ching Tan |
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Designation : |
Director |
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Name : |
Mr. S. B. Parwal |
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Designation : |
Director |
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Name : |
Mr. S. Agarwal |
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Designation : |
Director |
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Name : |
Mir. V. K. Mahtani |
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Designation : |
Director |
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Name : |
Mrs. Saroj N. Rao |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Sukhdeo Purohit |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
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Names of Shareholders |
Total No. of
Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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4,166,661 |
72.93 |
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118,357 |
2.07 |
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4,285,018 |
75.00 |
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Total shareholding of Promoter and Promoter Group (A) |
4,285,018 |
75.00 |
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(B) Public Shareholding |
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100 |
- |
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500 |
0.01 |
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600 |
0.01 |
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610,175 |
10.68 |
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535,504 |
9.37 |
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275,660 |
4.82 |
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6,400 |
0.11 |
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6,350 |
0.11 |
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50 |
- |
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1,427,739 |
24.99 |
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Total Public shareholding (B) |
1,428,339 |
25.00 |
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Total (A)+(B) |
5,713,357 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacture of Auto Control Cables and Gear Shifter Mechanisms with
Push Pull Cables. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Installed
Capacity |
Licensed
Capacity |
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Nos. |
23092720 |
3492720 |
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Gurgaon |
Nos. |
3500000 |
22300000 |
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Particular |
Unit |
Actual
Productions |
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auto Control Cables |
Nos. |
19677727 |
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Auto Control Cables Mtrs. |
Mrts. |
3196880 |
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Speedometer Cables |
Nos. |
-- |
GENERAL INFORMATION
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kanu Doshi Associates Chartered Accountant |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5713357 |
Equity Shares |
Rs.10/- each |
Rs.57.134
Millions |
Note:
1. Paid up Capital includes 4,810,000 (previous year 4,810,000) Shares allotted as fully Paid Bonus shares by
Capitalization from General and Revaluation Reserve.
2. Paid up Capital includes 6,53,357 (previous year 6,53,357) Shares allotted as fully Paid after considering 3,79,500 shares (previous year 3,79,500 )cancelled pursuant to the Scheme of Amalgamation .
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
57.134 |
57.134 |
57.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
26.650 |
9.941 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(1.300) |
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NETWORTH |
83.784 |
67.075 |
55.800 |
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LOAN FUNDS |
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1] Secured Loans |
87.309 |
88.879 |
106.300 |
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2] Unsecured Loans |
83.891 |
83.891 |
83.900 |
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TOTAL BORROWING |
171.200 |
172.770 |
190.200 |
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DEFERRED TAX LIABILITIES |
0.822 |
(11.760) |
0.000 |
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TOTAL |
255.806 |
228.085 |
246.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
139.445 |
135.736 |
150.100 |
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Capital work-in-progress |
0.904 |
0.059 |
0.200 |
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INVESTMENT |
2.000 |
5.226 |
1.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
76.147
|
73.419 |
72.400 |
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Sundry Debtors |
133.437
|
100.666 |
122.700 |
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Cash & Bank Balances |
2.539
|
4.296 |
16.600 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
17.304
|
10.523 |
45.100 |
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Total
Current Assets |
229.427
|
188.904 |
256.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
94.765
|
84.814 |
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Other Current Liabilities |
16.143
|
12.465 |
170.900 |
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Provisions |
5.062
|
4.561 |
3.800 |
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Total
Current Liabilities |
115.970
|
101.840 |
174.700 |
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Net Current Assets |
113.457
|
87.064 |
82.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
12.400 |
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TOTAL |
255.806 |
228.085 |
246.000 |
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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 |
690.330 |
558.119 |
551.400 |
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Other Income |
15.792 |
8.093 |
0.000 |
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TOTAL (A) |
706.122 |
566.212 |
551.400 |
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Less |
EXPENSES |
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Manufacturing Expenses |
465.057 |
395.065 |
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Employees' Cost |
84.338 |
70.194 |
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Administrative, Selling and Other Expenses |
101.620 |
82.131 |
533.500 |
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Decrease / (Increase) in Stock |
(4.963) |
(0.412) |
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TOTAL (B) |
646.052 |
546.978 |
533.500 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
60.070 |
19.234 |
17.900 |
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Less |
FINANCIAL
EXPENSES (D) |
7.060 |
9.729 |
12.100 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
53.010 |
9.505 |
5.800 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.455 |
16.980 |
18.500 |
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PROFIT BEFORE
TAX (E-F) (G) |
36.555 |
(7.475) |
(12.700) |
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Less |
TAX (H) |
19.847 |
(18.747) |
(1.100) |
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PROFIT AFTER TAX
(G-H) (I) |
16.708 |
11.272 |
(11.600) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8.316 |
(2.956) |
NA |
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BALANCE CARRIED
TO THE B/S |
25.024 |
8.316 |
NA |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
95.685 |
83.936 |
NA |
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IMPORTS |
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Raw Materials |
11.644 |
25.058 |
NA |
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Plant and Machineries |
2.342 |
0.000 |
NA |
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TOTAL IMPORTS |
13.986 |
25.058 |
NA |
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Earnings Per
Share (Rs.) |
2.92 |
1.97 |
NA |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
179.420 |
207.320 |
237.910 |
|
Total Expenditure |
168.600 |
193.680 |
221.690 |
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PBIDT (Excl OI) |
10.820 |
13.640 |
16.220 |
|
Other Income |
2.930 |
1.160 |
0.470 |
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Operating Profit |
13.750 |
14.800 |
16.690 |
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Interest |
1.500 |
1.510 |
1.360 |
|
PBDT |
12.250 |
13.290 |
15.330 |
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Depreciation |
4.330 |
4.660 |
4.780 |
|
Profit Before Tax |
7.920 |
8.630 |
10.550 |
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Tax |
4.100 |
5.130 |
5.480 |
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Profit After Tax |
3.820 |
3.500 |
5.070 |
|
Net Profit |
3.820 |
3.500 |
5.070 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.37
|
1.99 |
(2.10) |
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Net Profit Margin (PBT/Sales) |
(%) |
5.30
|
(1.34) |
(2.30) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.91
|
(2.30) |
(3.12) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
(0.11) |
(0.23) |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.43
|
4.09 |
6.54 |
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Current Ratio (Current Asset/Current Liability) |
|
1.98
|
1.85 |
1.47 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The Company fared well during the year. While sales and other income of
the Company increased by approximately 25%, profit before interest,
depreciation and tax registered three-fold increase over previous year.
EXPORTS
Company's Exports during the year were better at Rs. 95.700 millions, as
compared to Rs. 83.900 millions in previous year in rupee terms. The global
financial crisis particularly softening of the Euro has adversely affected the
Company's export market, though the Company endeavors to secure more and more
export orders.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
BUSINESS OVERVIEW
The Company is engaged in manufacture of Auto Control Cables and Gear
Shifter Mechanisms with push pull cables. It is one of the major OEM suppliers
to many Automobile Manufacturing Companies in
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Growth in the automobile industry generates more demand for the auto
components. Indian auto component sector is capable of producing
internationally accepted quality of auto components, which is evident from the
continuous outsourcing of their products by the worldwide automobile companies.
Opportunities
Government spending on infrastructure and availability of new models of
the auto products in the market should generate heavy demand for two-three
wheelers, cars, jeeps, trucks and tractors resulting in to the corresponding
demand for the products of the Company. Outsourcing of Automotive Components
from
Fixed Assets:
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipments
- Vehicles
- Lease Hold
Premises
- Software
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31ST DECEMBER,
2010
Rs.
in Millions
|
Particular
|
3 Months Ended |
|
|
31.12.2010 |
|
|
|
|
(a) Net Sales / Income from operations |
235.654 |
|
(b) Other Operating Income |
2.251 |
|
Total Income |
237.905 |
|
Expenditure |
|
|
a) (Increase) / Decrease in stock in trade and work in
progress |
(14.322) |
|
b) Consumption of raw materials |
175.795 |
|
c) Employees cost |
32.025 |
|
d) Depreciation |
4.778 |
|
e) Other expenditure |
28.194 |
|
Total |
226.470 |
|
Profit from operations before other income, interest and
exceptional Items |
11.435 |
|
Other income |
0.473 |
|
Profit before interest and exceptional Items |
11.908 |
|
Interest |
1.359 |
|
Profit
after Interest but before Exceptional Items |
10.549 |
|
Exceptional Items |
-- |
|
Profit
(+)/Loss(-) from Ordinary Activities before tax |
10.549 |
|
Tax expense |
|
|
Current Tax |
2.000 |
|
Deferred Tax |
3.484 |
|
Net
Profit (+)/Loss(-) from Ordinary Activities after tax |
5.065 |
|
Extraordinary
Items |
-- |
|
Net Profit (+) / Loss (-) for the year period |
5.065 |
|
Paid up equity share capital (Face value of Rs.10/- per
share) |
57.133 |
|
Reserves excluding revaluation reserves as per balance
sheet of previous accounting year |
-- |
|
Earning per share (EPS) |
|
|
(a)
Basic and diluted EPS before Extraordinary items for
the period, for the year to date and for the previous
year (not to be annualised) |
0.89 |
|
(a)
Basic and diluted EPS before Extraordinary items for the
period, for the year to date and for the previous
year (not to be annualised) |
0.89 |
|
Public shareholding |
|
|
Number of
shares |
1428339 |
|
Percentage
of shareholding |
25.00 |
|
|
|
|
Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
Nil |
|
Percentage of shares (as a % of total share capital of the
company) |
Nil |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
4285018 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00 |
|
Percentage of shares (as a % of total share capital of the
company) |
75.00 |
Note:
1 Exceptional Income / (Expenses) - Net for
the quarter ended 31st December2010 comprise 01: Nil. Exceptional Income
/ (Expenses) - Net for he year ended 31st March2010 comprise of:
Provision for doubtful debtors Rs. (732) millions and Prior Period expenses Rs.
(79) millions.
2. The Company operates in one segment only,
i.e. Automotive Components parts.
3. Duririg the quarter, one investor complaint
was received, which was duly attended by the Company. No complaints were
pending either at the beginning or at the end of the quarter.
4. Previous quarter I year’s figures are
regrouped wherever necessary.
5. The above results, as reviewed by the Audit
Committee have been taken on record by the Board of Directors at their meeting
held on 29th January, 2011. Limited Review has been carried out by the
Statutory Auditors of the company as per clause 41 of the Listing agreement
with stock exchanges.
AS PER WEBSITE DETAILS:
Mile Stone:
1959: Company formed as a Trading Company
1963: Company ventured into the manufacturing of
various engineering items.
1965: First to introduce Control cables in
1972: Establishing plant to manufacture Flexible
Shafts
1973: First to introduce Pressure Die Cast cable
ends.
1983: Introduction of Friction Free Cables.
1996: Started Supplies to General Motors (U.S.A)
1998: Established an
1999: Established a Marketing office in
2001: First to indigenously manufacture Gear Shift
with Cables Control Mechanism in
2004: Developed and Established supplies of complete
Hand Brake Assembly with Cables to the OEM’s.
2006: First to Indigenously Manufacture Push Pull
cables in
2007: Remsons entered
into a joint venture with Orscheln Products LLC. to manufacture various parts
for the transportation industries
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.45.09 |
|
|
1 |
Rs.72.82 |
|
Euro |
1 |
Rs.63.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
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 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--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.