MIRA
INFORM REPORT
|
Report Date : |
04.04.2012 |
IDENTIFICATION DETAILS
|
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) : |
31.03.2011 |
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Date of
Incorporation : |
11.05.1971 |
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Com. Reg. No.: |
015141 |
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Capital
Investment / Paid-up Capital : |
Rs.57.134
Millions |
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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. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
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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 470000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 31.03.2011
|
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 : |
Mr. 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 |
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Name : |
Mr. Anil Kumar Agrawal |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of
Shareholder |
Total No. of Shares
|
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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4,166,651 |
72.93 |
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118,357 |
2.07 |
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4,285,008 |
75.00 |
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Total shareholding of Promoter and Promoter Group (A) |
4,285,008 |
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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618,691 |
10.83 |
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471,977 |
8.26 |
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329,415 |
5.77 |
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7,666 |
0.13 |
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6,350 |
0.11 |
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1,316 |
0.02 |
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1,427,749 |
24.99 |
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Total Public shareholding (B) |
1,428,349 |
25.00 |
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Total (A)+(B) |
5,713,357 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
5,713,357 |
- |
BUSINESS 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 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Auto Control Cables [Daman] |
Nos. |
11492720 |
32992720 |
|
Auto Control Cables [Gurgaon ] |
Nos. |
22300000 |
-- |
ACTUAL PRODUCTION:
|
Particular |
Unit |
Actual
Productions |
|
Auto Control Cables |
Nos. |
25389202 |
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Auto Control Cables |
Mrts. |
3278407 |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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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 Accountants |
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Associates : |
·
Remsons Cables Industries Private Limited ·
Goodluck Electronics Private Limited |
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Joint Venture : |
·
Orscheln Technologies Private Limited (JV)
(Formerly known as Orscheln Remsons Technologies Private Limited) ·
Orscheln Products LLC |
CAPITAL STRUCTURE
As on 31.03.2011
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 & 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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
57.134 |
57.134 |
57.134 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
60.662 |
26.650 |
9.941 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
117.796 |
83.784 |
67.075 |
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LOAN FUNDS |
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1] Secured Loans |
132.913 |
87.309 |
88.879 |
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2] Unsecured Loans |
83.891 |
83.891 |
83.891 |
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TOTAL BORROWING |
216.804 |
171.200 |
172.770 |
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DEFERRED TAX LIABILITIES |
14.561 |
0.822 |
(11.760) |
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TOTAL |
349.161 |
255.806 |
228.085 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
163.727 |
139.445 |
135.736 |
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Capital work-in-progress |
33.027 |
0.904 |
0.059 |
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INVESTMENT |
0.226 |
2.000 |
5.226 |
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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 |
124.488
|
76.147
|
73.419 |
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Sundry Debtors |
183.095
|
133.437
|
100.666 |
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Cash & Bank Balances |
2.984
|
2.539
|
4.296 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
33.822
|
17.304
|
10.523 |
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Total
Current Assets |
344.389
|
229.427
|
188.904 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Sundry Creditors |
160.961
|
94.765
|
84.814 |
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Other Current Liabilities |
24.496
|
16.143
|
12.465 |
|
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Provisions |
6.751
|
5.062
|
4.561 |
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Total
Current Liabilities |
192.208
|
115.970
|
101.840 |
|
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Net Current Assets |
152.181
|
113.457
|
87.064 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
349.161 |
255.806 |
228.085 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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|
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Income |
947.187 |
690.330 |
558.119 |
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Other Income |
12.611 |
15.792 |
8.093 |
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TOTAL (A) |
959.798 |
706.122 |
566.212 |
|
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|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
665.666 |
465.057 |
395.065 |
|
|
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Employees' Cost |
117.400 |
84.338 |
70.194 |
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|
|
Administrative, Selling and Other Expenses |
125.611 |
101.620 |
82.131 |
|
|
|
Extra Ordinary Items |
(0.698) |
0.811 |
(35.036) |
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|
|
Decrease / (Increase) in Stock |
(15.237) |
(4.963) |
(0.412) |
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TOTAL (B) |
892.742 |
646.863 |
511.942 |
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|
|
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
67.056 |
59.259 |
54.270 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6.528 |
7.060 |
9.729 |
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
60.528 |
52.199 |
44.541 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19.656 |
16.455 |
16.980 |
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PROFIT BEFORE TAX
(E-F) (G) |
40.872 |
35.744 |
27.561 |
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|
|
|
|
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Less |
TAX (H) |
6.161 |
19.036 |
(18.747) |
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PROFIT AFTER TAX
(G-H) (I) |
34.012 |
16.708 |
11.272 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
25.025 |
8.316 |
(2.956) |
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BALANCE CARRIED
TO THE B/S |
59.037 |
25.024 |
8.316 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
104.728 |
95.685 |
83.936 |
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IMPORTS |
|
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Raw Materials |
33.392 |
11.644 |
25.058 |
|
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|
Plant and Machineries |
2.121 |
2.342 |
0.000 |
|
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TOTAL IMPORTS |
35.513 |
13.986 |
25.058 |
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Earnings Per
Share (Rs.) |
5.95 |
2.92 |
1.97 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
245.710 |
272.030 |
304.190 |
|
Total Expenditure |
230.830 |
254.430 |
281.360 |
|
PBIDT (Excl OI) |
14.880 |
17.600 |
22.830 |
|
Other Income |
0.990 |
0.430 |
0.330 |
|
Operating Profit |
15.870 |
18.030 |
23.160 |
|
Interest |
3.920 |
4.410 |
5.150 |
|
PBDT |
11.950 |
13.62 |
18.010 |
|
Depreciation |
5.100 |
5.580 |
5.680 |
|
Profit Before Tax |
6.850 |
7.9600 |
12.330 |
|
Tax |
1.660 |
3.15 |
2.090 |
|
Profit After Tax |
5.190 |
4.810 |
10.240 |
|
Net Profit |
5.190 |
4.810 |
10.240 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.54
|
2.37
|
1.99 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
4.32
|
5.18
|
4.94 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.04
|
9.69
|
8.49 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.43
|
0.41 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.47
|
3.43
|
4.09 |
|
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|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
1.79
|
1.98
|
1.85 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
Growth is the
lifeblood of any company. During the year the company was able to achieve a growth
of over 35% in the sales and other income of the company. Bearing in mind that
the company is operating in one of the most cost competitive sectors – the
automobile sector – the company was able to achieve a modest growth of
approximately 10% in profit before interest, depreciation and tax.
EXPANSION:
Continuous
expansion of global automobile industries has resulted into the corresponding
demand for the auto ancillaries. The Company also continued its expansion
program mainly at its various units in Daman, during the year under review.
While a new Unit at Plot No 647/1A (Golden House) started operations from
November 2010, modernization and expansion of another Unit at Plot No A2/3 and
A2/4 (Diamond House) has also been completed and the Unit has become
operational from the last quarter of the year. Modernization and Expansion
program being carried out at Plot No A2/27 (Western House) is expected to be
completed by the end of July and the Unit is expected to be fully operational
from August 2011. The total capital expenditure for the expansions undertaken
by the Company as above is estimated at around Rs. 72.000 millions, which shall
be partly met by a Term Loan from Bank (Rs. 40.000 millions) and the balance
(Rs. 32.000 millions) from internal accruals.
EXPORTS
Company’s Exports
during the year were marginally better at Rs. 104.700 millions, as compared to
Rs. 95.700 millions in the previous year in rupee terms.
REMSONS (EUROPE),
a Marketing set up in Europe is providing excellent Engineering Support to the
OEM customers overseas. Mr. Geoffrey Hill, Director – Business Development and
Mr. John Glover, Director – Engineering, being in the Automotive Cable and Gear
Shift business since long are well versed with the overseas OEM Market and have
been a good support to our export business.
The Company
endeavors its best 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 Shifters. It is one of
the major OEM suppliers to almost all the Automobile Manufacturing Companies in
India like Tata Motors, Hero Honda, Maruti Suzuki, Mahindra and Mahindra,
Piaggio, Ashok Leyland. The Company’s products are well received in the global
market too.
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.
FIXED ASSETS:
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipments
- Vehicles
- Lease Hold
Premises
- Software
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.50.56 |
|
|
1 |
Rs.81.05 |
|
Euro |
1 |
Rs.67.49 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.