MIRA INFORM REPORT

 

 

Report Date :

24.04.2012

 

IDENTIFICATION DETAILS

 

Name :

RAYBAN SUN OPTICS INDIA LIMITED

 

 

Registered Office :

SP 810-811, Road No. 20, RIICO Industrial Area, Phase-II, Alwar – 301019, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

28.05.1990

 

 

Com. Reg. No.:

17-008343

 

 

Capital Investment / Paid-up Capital :

Rs.244.771 Millions

 

 

CIN No.:

[Company Identification No.]

U33201RJ1990PLC008343

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JPRR02746C

 

 

PAN No.:

[Permanent Account No.]

AABCR8209G

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader in Frames and Sunglasses.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 6700000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having satisfactory track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

 

INFORMATION DECLINED

 

Management Non Co-operative 

 

 

LOCATIONS

 

Registered Office :

SP 810-811, Road No. 20, RIICO Industrial Area, Phase-II, Alwar – 301019, Rajasthan, India

Tel. No.:

91-1493-307600

Fax No.:

91-1493-307646

E-Mail :

harvindersingh@in.luxottica.com

 

 

DIRECTORS

 

As on 26.04.2011

 

Name :

Mr. Rabindra Nath Ghosh

Designation :

Director

Address :

Flat No. 203, Dakshinayan, Plot No. 19, Sector – 4, Dwarka Phase – I, New Delhi – 110078, India

Date of Birth/Age :

15.01.1943

Date of Appointment :

19.12.2001

DIN No.:

00194250

 

 

Name :

Enrico Mistron

Designation :

Director

Address :

Via Col Di Salce N 95, 32100 Belluno, Italy

Date of Birth/Age :

24.10.1969

Date of Appointment :

25.09.2002

DIN No.:

00995785

 

 

Name :

Luigi Francavilla

Designation :

Director

Address :

Via Paganini 46, 32021 Agordo, Belluno, Italy

Date of Birth/Age :

12.06.1937

Date of Appointment :

25.09.2002

DIN No.:

00290139

 

 

Name :

Mr. Michael A Boxer

Designation :

Additional director

Address :

501, Cold Spring Road, Laurel Hollow NY

Date of Birth/Age :

17/11/1961

Date of Appointment :

15/02/2012

DIN No.:

05197355

 

 

Name :

Mr. Akash Goyle

Designation :

Director

Address :

D-163, Sector – 27, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

16.10.1973

Date of Appointment :

10.11.2009

DIN No.:

02844377

 

 

Name :

Mr. Anshu Gupta

Designation :

Managing director

Address :

B-203, Park Vien City, Sohna Road, Gurgaon, Haryana, India

Date of Birth/Age :

05.05.1964

Date of Appointment :

01.05.2008

DIN No.:

02154567

 

 

KEY EXECUTIVES

 

Name :

Mr. Harvinder Singh

Designation :

Secretary

Address :

C-8, Street – 9, New Gobind Pura, Delhi – 110051, India

Date of Birth/Age :

27.07.1974

Date of Appointment :

24.06.2006

PAN No.:

APSPS3795R

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT AVAILABLE

 

Equity Share Break up (Percentage of Total Equity)

As on 26.04.2011

 

Category

Percentage

Nationalised/ Other Banks

0.01

Mutual Funds

0.03

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

93.36

Bodies corporate

0.40

Other top fifty shareholders

0.94

Others

5.26

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader in Frames and Sunglasses.

 

 

Products :

ITEM CODE NO.

PRODUCT DESCRIPTION

90041000

Sunglasses

 

PRODUCTION STATUS AS ON 31.12.2010

 

Particulars

Unit

Installed Capacity

Actual Production

Frames/ Sunglasses

Nos.

529200

361868

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

7th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City, Phase II, Gurgaon – 122002, Haryana, India

PAN.:

AABFD2095B

 

 

Holding Company :

Luxottica U.S. Holdings Corp., USA (Upto June 30, 2010 - Ray Ban Indian Holdings, USA)

 

 

Enterprise having control over the company :

·         Ray Ban Holdings Inc., USA (merged with Luxottica U.S. Holdings Corp., USA w.e.f July 01,2010)

·         Luxottica Cronp S.p.A., Italy

 

 

Fellow subsidiaries and other companies which does not exercise control or significant influence over the company :

·         Luxottica S.r.l., Italy

·         Luxottica Tristar (Dong Guan) Optical Company Limited

·         Luxottica Trading and Finance Limited

·         Luxottica India Eyewear Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.12.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

34950000

Equity Shares

Rs.10/- each

Rs.349.500 Millions

5000

Preference Shares

Rs.100/- each

Rs.0.500 Million

 

TOTAL

 

Rs.350.000 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

24479187

Equity Shares

Rs.10/- each

Rs.244.792 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

24472917

Equity Shares

Rs.10/- each

Rs.244.729 Millions

 

Add: Forfeited Shares

 

Rs.0.042 Million

 

TOTAL

 

Rs.244.771 Millions

 

Notes:

Of the above Equity Shares, 22837271 equity shares of Rs.10 each are held by Luxottica U.S. Holdings Corporation, USA (upto June 30, 2010 Ray Ban Indian Holdings Inc, USA), the holding company.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

244.771

244.771

244.771

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1421.823

1215.221

1046.279

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1666.594

1459.992

1291.050

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1666.594

1459.992

1291.050

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

99.708

122.185

137.033

Capital work-in-progress

18.771

0.113

0.130

Capital Advance

1.595

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

44.696

27.957

32.966

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

101.632

75.574

77.695

 

Sundry Debtors

170.572

222.905

187.800

 

Cash & Bank Balances

1374.605

1150.682

974.251

 

Other Current Assets

40.140

49.379

46.523

 

Loans & Advances

90.037

95.685

42.607

Total Current Assets

1776.986

1594.225

1328.876

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

102.837

161.206

150.337

 

Other Current Liabilities

28.531

21.013

21.473

 

Provisions

143.794

102.269

36.145

Total Current Liabilities

275.162

284.488

207.955

Net Current Assets

1501.824

1309.737

1120.921

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1666.594

1459.992

1291.050

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2010

31.12.2009

31.12.2008

 

SALES

 

 

 

 

 

Income

585.417

733.476

660.536

 

 

Other Income

110.468

130.683

88.773

 

 

TOTAL                                     (A)

695.885

864.159

749.309

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials and Manufacturing Expenses

176.504

303.842

270.168

 

 

Employees Remuneration and Benefits

59.741

65.700

60.134

 

 

Administration and Other Expenses

84.184

126.487

97.186

 

 

Selling and Distribution Expenses

26.180

82.585

74.045

 

 

TOTAL                                     (B)

346.609

578.614

501.533

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

349.276

285.545

247.776

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2.497

1.527

1.668

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

346.779

284.018

246.108

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

26.796

26.238

21.547

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

319.983

257.780

224.561

 

 

 

 

 

Less

TAX                                                                  (H)

113.381

88.838

78.156

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

206.602

168.942

146.405

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

206.602

168.942

146.405

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of exports of finished goods

13.631

16.184

26.473

 

 

FOB value of exports of fixed assets

0.000

0.085

0.425

 

TOTAL EARNINGS

13.631

16.269

26.898

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

1.723

2.678

1.941

 

 

Raw Materials

85.129

45.589

47.746

 

 

Finished Goods

54.808

187.301

139.666

 

TOTAL IMPORTS

141.660

235.568

189.353

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.44

6.90

5.98

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

PAT / Total Income

(%)

29.69

19.55

19.54

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

54.66

35.14

33.99

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

17.05

15.02

15.32

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.19

0.18

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.16

0.19

0.16

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

6.46

5.60

6.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

PARTICULARS

31.12.2010

31.12.2009

31.12.2008

Sundry Creditors

102.837

161.206

150.337

TOTAL

102.837

161.206

150.337

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

No

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

No

 

BACKGROUND

 

Subject was incorporated in India on May 28, 1990 and is carrying on the business of manufacture and trading of frames and sunglasses. Luxottica U.S. Holdings Corp., USA (Ray Ban Indian Holdings Inc., USA upto June 30, 2010) is the majority shareholder holding 22,837,271 equity shares of Rs.10 each representing 93.32% of the share capital of the Company.

 

On July 1, 2010, Ray Ban Indian Holdings Inc., USA merged with its holding company Ray Ban Holdings Inc., USA and thereafter Ray Ban Holdings Inc., US A merged with its holding company Luxottica U.S. Holdings Corp., USA. Pursuant to the above mergers, Luxottica U.S. Holdings Corp., USA is the holding company for RayBan Sun Optics India Limited.

 

The accompanying financial statements reflect the results c-f the activities undertaken by the Company during the year ended December 31, 2010.

 

FINANCIAL PERFORMANCE

 

During the year the sales of the Company witnessed a reduction from Rs.765.100 Millions in the previous year to Rs.646.800 Millions in the current year primarily due to discontinuation in trading sales. However, the sales of the Company's manufactured goods has improved over 40% and was able to limit the shortfall of total sales by about 18%. The Company continues to sustain growth in profitability which has increased from Rs.168.900 Millions in the previous year to Rs.206.600 Millions in the current year, thus registering a growth of over 22% as compared to last year in net profit after tax.

 

The Directors do not recommend any dividend for the period.

 

OPERATIONS

 

The Company refreshed the collection of sunglasses and optical frames for the brand RayBan with introduction of new styles. Effective 1st April, 2010, the Company appointed Luxottica India Eyewear Private Limited (LIEPL), as an exclusive distributor for RayBan eyewear products and rationalised the overheads related to the Distribution, Consequent to above, the Company witnessed the drop in sales in absolute terms but continue to sustain growth in the profitability. With more focus on indigenously manufactured products, the Company also installed a new Clean Room for spray coating process in order to improve the product quality.

 

Export of un-plated raw frames to Luxottica Group companies is continued on limited scale.

 

FUTURE PROSPECTS

 

The Company is proposing new models of indigenous manufactured sunglasses and optical frames under the brand RayBan in year 2011.

 

In order to improve efficiencies in the manufacturing process, the Company is in process of replacing the old machines. The Directors expect a steady growth in sales and profit in 2011.

 

FIXED ASSETS

 

·         Leasehold Land

·         Freehold Land

·         Building

·         Plant and Machinery

·         Electrical Installation

·         Office Equipment

·         Furniture and Fixtures

·         Vehicles

·         Technical Know How

·         Leasehold Improvement

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.52.23

UK Pound

1

Rs.84.16

Euro

1

Rs.68.84

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

54

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.