MIRA INFORM REPORT

 

 

Report Date :

05.03.2012

 

IDENTIFICATION DETAILS

 

Name :

PERFECT CIRCLE INDIA LIMITED

 

 

Registered Office :

20 MIDC Estate, Satpur, Nasik 422007, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

06.04.1962

 

 

Com. Reg. No.:

012316

 

 

Capital Investment / Paid-up Capital :

Rs. 33.337 millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1962PLC012316

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NSKP01760D / NSKP00100C

 

 

PAN No.:

[Permanent Account No.]

AAACP0482E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Piston Rings 

 

 

No. of Employees :

500 Approximately

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1499736

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

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.

 

 

INFORMATION PARTED BY (General Details)

 

Name :

Ms. Kanchan Datlani

Designation :

Accounts Department

Contact No.:

91-253-2365900

Date :

02.03.2012

 

 

LOCATIONS

 

Registered Office / Factory:

20 MIDC Estate, Satpur, Nasik 422007, Maharashtra, India 

Tel. No.:

91-253-2365900

Fax No.:

91-253-2350584 / 2351138

E-Mail :

Mayor.bumb@perfectcircle.co.in

Mayor.bumb@perfectcircle.co.in

Website :

www.anandgroup.com

www.perfectcircleindia.com

Location :

Owned

 

 

Corporate Office 1 :

1, Sri Aurobindo Marg, New Delhi 110 016, India

 

 

Corporate Office 2 :

Magnet House, N M Marg, Ballard Estate, Mumbai 400 038, Maharashtra, India

 

 

Manufacturing Plant :

Foundry

E-34, MIDC Estate, Satpur, Nashik 422 007, Maharashtra, India

 

Centrifugal Casting Plant

19, MIDC Estate, Satpur, Nashik 422 007, Maharashtra, India

 

Plate Machining Plant

E-34, MIDC Estate, Satpur, Nashik 422 007, Maharashtra, India

 

 

DIRECTORS

 

Name :

Mr. Deep C Anand

Designation :

Director

 

 

Name :

Mr. C S Patel

Designation :

Director

 

 

Name :

Mr. P K Srivastava

Designation :

Director

 

 

Name :

Mr. M K Goyal

Designation :

Director

 

 

Name :

Mr. Raman Kaicker

Designation :

Director

 

 

Name :

Mr. Ranjit Barthakur

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Kanchan Datlani

Designation :

Accounts Department

 

 

Name :

Mr. Subodh Korde

Designation :

Vice President and COO

 

 

Name :

Mr. Mayur Bumb

Designation :

General Manager Finance

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Piston Rings 

 

 

 

PRODUCTION STATUS

 

 AS ON 31.03.2011

 

Particulars

Unit

Licensed Capacity *

Installed Capacity * *

Actual Production

Rings

Nos.

 

17,500,000

17,521,733

Semi Finished Products

Nos.

 

40,000,000

28,367,683

Ductile Davison

Kgs.

 

1,200,000

113,794

 

* Licensing requirement for automotive parts have been dispensed w.e.f. July 25, 1991.

** Installed Capacity has been accepted by the auditors without verification, this being a technical matter.

 

 

GENERAL INFORMATION

 

Suppliers :

Not Available

 

 

Customers :

·         End User

·         OEM’s

·         Manufacturer

·         Ashok Leyland

·         Cummins

·         Greaves Limited

·         Kirloskar Oil Engine Limited

·         TAFE

·         Mahindra 

 

 

No. of Employees :

500 Approximately

 

 

Bankers :

·         Yes Bank, Pune, Maharashtra, India

·         Union Bank of India, Pune, Maharashtra, India  

·         SICOM Limited

 

 

Facilities :

Rs. In Millions

 

SECURED LOAN

31.03.2010

 

31.03.2009

 

Term Loans from Banks

[Repayable within one year Rs. 50.000 millions (Previous Year Rs. NIL )]

50.000

0.000

Term Loans from Others than Banks [Repayable within one year Rs. 20.000 millions (Previous Year Rs 50.000 millions)]

20.000

50.000

Working Capital Facilities from Banks

Cash Credit Facility

143.954

180.924

Vehicle Loan from Banks

[Repayable within one year Rs. 0.056 million

(Previous Year Rs. 0.238 million)]

0.443

1.209

Finance Lease

0.988

1.552

 

 

 

Total

215.385

233.685

 

Secured Loans:

A) Securities against Working Capital facilities:

The Working Capital facilities are secured by hypothecation of the Company’s inventories, receivables and by a second subsequent charge created on the Company’s immovable properties and rank pari-passu inter-se amongst bankers.

B) Term Loan from Banks

The Company has taken term loan from Yes bank. YES Bank term loan is secured by way of 1st pari-passu charge on all the current assets and 2nd pari-passu charge on all the movable and immovable assets of the Company.

C) Term loan from other than bank

The Company has taken a Medium term loan from SICOM & Yes bank. SICOM term loan is secured by way of 1st pari-passu charge on all the movable and immovable assets of the Company.

D) Vehicle loan from banks are secured by hypothecation of assets financed by them.

 

UNSECURED LOAN

 

 

 

 

 

Fixed Deposits [includes matured and unclaimed Rs. 0.685 million

(Previous Year Rs. 0.665 million)]

[Repayable within one year Rs. 18.385 millions (Previous Year Rs. 14.481 millions]

102.107

84.799

From Banks

Loan from Housing Development Finance Corporation Limited for employees [Repayable within one year Rs. 0.335 million

(Previous Year Rs. 0.335 million)]

0.694

0.900

From Others

Inter Corporate Deposits

[Include interest accrued and due Rs. NIL

(Previous Year Rs. 3.876 millions)]

0.000

36.376

Sales Tax Deferral

[Repayable within one year Rs. 3.385 millions

(Previous Year Rs. 3.147 millions)]

52.061

55.208

Total

154.862

177.283

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountant

Address :

Pune, Maharashtra, India

 

 

Fellow Subsidiary Company:

Victor Gaskets India Limited

 

 

Holding Company:

Asia Investments Private Limited

 

 

Ultimate Holding Company:

Anand Automobiles

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

45000000

Equity Shares

Re. 1 each

Rs. 45.000 millions

50000

Preference Shares

Rs. 100 each

Rs. 5.000 millions

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

33336568

Equity Shares

Re. 1 each

Rs. 33.337 millions

 

 

 

 

 

 

Share Capital includes:

 

(i) 30,648,384 (Previous Year:30,609,560) Equity Shares held by Asia Investments Private Limited, Holding Company.

 

(ii) 4,700 Equity Shares of Rs. 10 each, allotted as fully paid up pursuant to a contract for supply of Machinery without payment received in cash.

 

(iii) 118,550 Equity Shares of Rs. 10 each allotted as fully paid up by way of Bonus Shares by capitalisation of reserves.

 

(iv) 2,082,048 Equity Shares of Rs. 10 each allotted as fully paid up by conversion of Partly Convertible Debentures.

 

Pursuant to the Scheme of Arrangement demerging the Gaskets business into Victor Gaskets India Limited in the financial year 2001-02 and the consequential reorganization of the capital, the face value of shares was reduced to Rs. 8 each.  Shareholders approved the sub-division of the face value of equity shares from Rs. 8 per share to Re. 1 per share in the Annual General Meeting of the Company held on July 27, 2004. The sub-divided shares were allotted on October 01, 2004. Consequently, the total number of equity shares has increased to 33,336,568.

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

33.337

33.337

33.337

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

341.597

321.704

261.797

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

374.934

355.041

295.134

LOAN FUNDS

 

 

 

1] Secured Loans

215.385

233.685

282.384

2] Unsecured Loans

154.862

177.283

156.066

TOTAL BORROWING

370.247

410.968

438.450

DEFERRED TAX LIABILITIES

42.276

27.947

26.196

 

 

 

 

TOTAL

787.457

793.956

759.780

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

393.946

419.987

454.312

Capital work-in-progress

6.206

8.480

1.185

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

157.523

131.897

99.234

 

Sundry Debtors

156.939

103.134

98.567

 

Cash & Bank Balances

10.383

30.653

14.124

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

228.012

237.083

231.335

Total Current Assets

552.857

502.767

443.260

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

103.846

87.572

108.314

 

Other Current Liabilities

22.429

20.311

21.794

 

Provisions

39.277

29.395

8.869

Total Current Liabilities

165.552

137.278

138.977

Net Current Assets

387.305

365.489

304.283

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

787.457

793.956

759.780

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Sales

1041.744

782.225

736.879

 

 

Other Income

19.093

11.533

21.479

 

 

TOTAL                                     (A)

1060.837

793.758

758.358

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials

305.552

174.334

206.099

 

 

Personnel Expenses

163.882

137.033

124.565

 

 

Administrative Expenses

418.923

320.255

315.474

 

 

TOTAL                                     (B)

888.357

631.622

646.138

 

 

 

 

 

Less

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

172.480

162.136

112.220

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

43.027

42.273

46.511

 

 

 

 

 

 

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

129.453

119.863

65.709

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

43.778

46.210

49.454

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

85.675

73.653

16.255

 

 

 

 

 

Less

TAX                                                                  (H)

26.715

1.850

17.149

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

58.960

71.803

(0.894)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

35.665

(17.257)

(16.363)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

5.896

7.180

 

 

 

Interim Dividend - Equity

16.668

0.000

 

 

 

Tax on Interim Dividend

2.768

0.000

 

 

 

Proposed Dividend - Equity

16.668

10.001

 

 

 

Tax on Proposed Dividend

2.768

1.700

 

 

BALANCE CARRIED TO THE B/S

49.857

35.665

--

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

294.780

217.310

253.426

 

 

Recovery of Freight Charges

33.168

18.415

21.826

 

TOTAL EARNINGS

787.457

793.956

759.780

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

13.761

10.151

16.486

 

 

Stores & Spares

1.136

2.023

2.119

 

 

Capital Goods

25.184

20.638

23.246

 

TOTAL IMPORTS

   40.081

32.812

41.851

 

 

 

 

 

 

Earnings Per Share (Rs.)

    1.77

2.15

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

5.55

9.04

(0.11)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.22

9.41

2.20

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

9.04

7.98

1.81

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.23

0.20

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.54

1.62

2.04

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.33

3.66

3.18

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

Rs. In Millions

 

Particulars

31.03.2011
31.03.2010

31.03.2009

 

 

 

 

Sundry Creditors

103.846

87.572

108.314

 

 

PERFORMANCE AND OPERATIONS

 

The Indian economy registered a growth of 8.6% as against 7.4% in previous year which was contributed by Service Sector at 8.3%, industrial growth of 2.5% and agriculture growth of 4%. Growth of automotive industry was at 26% during the financial year under review.

 

The Sales turnover during the financial year under review was Rs.1112.7 Million as compared to Rs.829.9 million in the previous year. The competitive environment continues to put pressure on domestic and export sales. Profit after interest but before depreciation and taxation was Rs.129.5 million, as compared to Rs.119.9 million in previous year.

 

The sales and profit of the Company during the financial year under review has improved due to better production. The Company has registered an increase of profit by 16.3%. Your Company was able to accelerate sales even though there had been shrinkage of replacement market due to longer engine life of new generation vehicles. The Company continues to focus on new development in original equipment and export markets to enhance capacity utilization to have over all cost competitive position in market.

 

 

FIXED ASSETS:

 

·         Land

·         Roads

·         Buildings

·         Plant and Machinery

·         Furniture, Fittings and Equipment

·         Motor Vehicles

·         Computer Software

·         Technical Know-how

 

 

 

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

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter's background

--

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

No

12) Profitability for last three years

No

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

No

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

No

28) Incorporation details, if applicable

--

29) Last accounts filed at ROC

--

30) Major Shareholders, if available

--

 

 

 

 

 


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.49.35

UK Pound

1

Rs.78.68

Euro

1

Rs.65.63

 


 

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

NO

--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

 

-

 

 

 

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.