MIRA
INFORM REPORT
|
Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
ORIENTAL RUBBER
INDUSTRIES LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
20.01.1949 |
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Com. Reg. No.: |
11-006875 |
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Capital
Investment / Paid-up Capital : |
Rs.14.910
Millions |
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CIN No.: [Company Identification
No.] |
U25199PN1949PLC006875 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEO01206C |
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PAN No.: [Permanent Account No.] |
AAACO1592L |
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Legal Form : |
A Closely
Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturers,
Traders, Dealers, Exporters and Importers of Rubber and Rubber Goods of all
kinds and articles made of real or synthetic rubber. |
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No. of Employees
: |
600
(approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (55) |
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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 1559000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having satisfactory track. Directors are reported
as experienced, respectable and resourceful industrialists. Their trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company is
doing well. In can be considered good for any normal 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 Cooperative
LOCATIONS
|
Registered Office : |
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Tel. No.: |
91-20-26681095/ 1692/93/ 26630071 / 66270800 |
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Mobile No.: |
91-20-26680840 / 26630840/ 66270810 |
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Fax No.: |
orientalrubber@sm3.sprintrpg.ems.vsnl.net.in mukesh@orientalrubber.com |
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E-Mail : |
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Website : |
Owned |
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Location : |
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Factory : |
Gat Nos. 519/2, 521/2, 523 and 525, Village Koregaon, Taluka Shirur, Bhima Nagar Road, District Pune – 412 207, Maharashtra |
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Vijeyanand Sadanand Makar |
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Designation : |
Managing Director |
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Address : |
Flat
No.701/702 “LYRA” |
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Date of Birth/Age : |
10.10.1930 |
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Date of Appointment : |
29.01.1965 |
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DIN No.: |
00020236 |
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Name : |
Mr. Vikram Vijayanand Makar |
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Designation : |
Managing Director |
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Address : |
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Date of Birth/Age : |
29.01.1963 |
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Date of Appointment : |
01.09.2007 |
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DIN No.: |
00020284 |
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Name : |
Mr. Vishal Vijayanand Makar |
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Designation : |
Managing Director |
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Address : |
Cluster 1/13 and 14, |
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Date of Birth/Age : |
22.08.1965 |
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Date of Appointment : |
01.09.2007 |
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DIN No.: |
00020253 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Vijeyanand S. Makar |
|
408502 |
|
Kamlesh Vijeynand
Makar |
|
55398 |
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Vishal V. Makar |
|
513345 |
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Vikram V. Makar |
|
513345 |
|
Meetashi
V. Makar |
|
200 |
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Poonam V. Makar |
|
200 |
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Punvick Investments Private Limited, |
|
10 |
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TOTAL |
|
1491000 |
Equity Share Break up (Percentage of Total Equity)
As on 29.09.2011
|
Category |
Percentage |
|
Directors or relatives of Directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers,
Traders, Dealers, Exporters and Importers of Rubber and Rubber Goods of all
kinds and articles made of real or synthetic rubber. |
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Products : |
Conveyor Belts ·
General
Purpose Belt ·
Heat
Resistant Belts ·
Fire
Resistant Belts ·
Oil
Resistant Belts ·
Chemical
Resistant Belts ·
Hygienic
Belts ·
Rough
Top Belts ·
Profile
Belts ·
Pipe
Conveyor Belts Rubber
Sheets ·
Rubber Sheets for Wear Resistant Applications ·
Skirt Rubber, Scrapers, Chute Lining, Screens ·
Natural, SBR, Nitrile, Neoprene, ·
Butyl, EPDM rubber sheeting ·
Pulley Lagging ·
Pulley Lagging in Diamond, Square, ·
Round profile and Ceramic lagging ·
Other Products ·
Specialized Rubber products ·
Impact Bars ·
Wheel Wedge ·
Buffers |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
|
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Conveyor and Transmission Belts |
|
16500 MT |
15300 MT |
911681 Meters |
|
Other Rubber Products |
|
8500 MT |
2200 MT |
2011390 Kgs |
Installed capacity depends upon the product
mix, which has been certified by the management and accepted by the auditors
without verification, being a technical matter.
GENERAL INFORMATION
|
Customers : |
Steel
Cement
Fertilizers
and Chemicals
Original
Equipment Manufacturer
Mining
Power
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No. of Employees : |
600 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Mohan Deshmukh and Company Chartered Accountants |
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Address : |
B-306,
Narayan Chambers, 555, Narayan Peth, Pune – 411 030, |
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Tel. No.: |
91-20-24451898
/ 24451974 / 24484752 / 24484751 |
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E-Mail : |
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PAN.: |
AACFM1053F |
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Subsidiaries : |
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Company in which
Directors are directors : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
2000000 |
Equity Shares |
Rs. 10/- each |
Rs.20.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
1491000 |
Equity Shares |
Rs. 10/- each |
Rs.14.910 Millions |
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NOTE:
Of the above 1145000 shares are allotted as fully paid up bonus shares by
capitalizing General Reserves and Share Premium
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 |
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|
|
|
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1] Share Capital |
14.910 |
14.910 |
14.910 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
374.958 |
308.018 |
264.060 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
389.868 |
322.928 |
278.970 |
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LOAN FUNDS |
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1] Secured Loans |
828.843 |
729.874 |
658.926 |
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2] Unsecured Loans |
44.374 |
42.332 |
51.066 |
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TOTAL BORROWING |
873.217 |
772.206 |
709.992 |
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DEFERRED TAX LIABILITIES |
24.600 |
23.677 |
23.174 |
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TOTAL |
1287.685 |
1118.811 |
1012.136 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
325.011 |
331.922 |
364.218 |
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Capital work-in-progress |
93.326 |
91.293 |
70.687 |
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INVESTMENT |
8.171 |
0.822 |
0.823 |
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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 |
442.030
|
308.716
|
288.414
|
|
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Sundry Debtors |
647.253
|
542.771
|
416.405
|
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Cash & Bank Balances |
29.028
|
54.114
|
41.151
|
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Other Current Assets |
299.549
|
232.561
|
161.027
|
|
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Loans & Advances |
3.685
|
3.530
|
3.942
|
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Total
Current Assets |
1421.545
|
1141.692 |
910.939 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
327.366
|
259.316 |
193.043
|
|
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Other Current Liabilities |
69.323
|
48.180 |
28.319
|
|
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Provisions |
163.679
|
139.422 |
113.169
|
|
Total
Current Liabilities |
560.368
|
446.918
|
334.531
|
|
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Net Current Assets |
861.177
|
694.774
|
576.408
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1287.685 |
1118.811 |
1012.136 |
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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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Income |
2027.279 |
1498.769 |
1632.123 |
|
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Other Income |
25.384 |
24.337 |
25.165 |
|
|
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TOTAL (A) |
2052.663 |
1523.106 |
1657.288 |
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|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption materials changes inventories |
1620.976 |
1193.958 |
|
|
|
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Employee related expenses |
74.491 |
51.737 |
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Administrative selling other expenses |
100.022 |
78.015 |
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Restructuring charges |
29.414 |
28.655 |
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TOTAL (B) |
1824.903 |
1352.365 |
1439.739 |
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
227.760 |
170.741 |
217.549 |
|
|
|
|
|
|
|
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Less |
FINANCIAL
EXPENSES (D) |
88.050 |
62.257 |
84.429 |
|
|
|
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|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
139.710 |
108.484 |
133.120 |
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|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
36.379 |
37.446 |
39.263 |
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|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
103.331 |
71.038 |
93.857 |
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|
|
|
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|
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Less |
TAX (H) |
25.684 |
18.062 |
32.051 |
|
|
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|
|
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|
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|
PROFIT AFTER TAX
(G-H) (I) |
77.647 |
52.975 |
61.806 |
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
233.637 |
194.755 |
121.806 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
8.000 |
5.400 |
6.300 |
|
|
|
Final Dividend and tax thereon |
10.450 |
8.693 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
292.834 |
233.637 |
177.312 |
|
|
|
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|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Manufacturing Items on FOB Basis |
1442.913 |
1021.636 |
1075.379 |
|
|
TOTAL EARNINGS |
1442.913 |
1021.636 |
1075.379 |
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
977.153 |
440.022 |
549.803 |
|
|
TOTAL IMPORTS |
977.153 |
440.022 |
549.803 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
52.08 |
33.53 |
41.45 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.78
|
3.48
|
3.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.10
|
4.74
|
5.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.92
|
4.82
|
7.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.22
|
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.68
|
3.78
|
3.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.54
|
2.55
|
2.72 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS
(Rs. in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
|
|
|
Creditors due others – Raw Material |
327.366 |
259.316 |
133.036 |
|
Creditors due small micro enterprises |
0.000 |
0.000 |
0.000 |
|
Creditors for Capital, Engineering and Service |
0.000 |
0.000 |
60.007 |
|
Total |
327.366 |
259.316 |
193.043 |
OPERATIONS
The year has shown satisfactory growth with the total income recorded at Rs.2052.600 millions versus Rs.1523.100 millions of the earlier year, a growth of 34.76%.The sales volume has also gone up by 35.26%. The higher turnover was possible on account of better geographical reach by targeting a larger customer base, expansion in export territories, buoyancy in the domestic market and aided by close coordination among different departments of the company. The higher turnover brought in higher profits. The net profit rose from Rs.52.976 millions for the previous year to Rs.77.647 millions for the year.
OUTLOOK FOR THE
CURRENT YEAR
The company continues its endeavor to maintain a healthy growth by building on the base that has been established. They are mindful of the global economics and its likely impact on Indian businesses in general and on their business in particular.
They believe that the company is well positioned to deal with the resulting economic scenario and by increasing focus on the domestic market and other export territories; they should be able to deal with the general slowdown in the developed economies. The company has allocated funds for capex in line with its business plan.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
Rs.
in Millions
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Income
Tax demands disputed in Appeals |
NIL |
Nil |
|
Counter Guarantees given to Banks for bank guarantees issued
by the banks |
63.308 |
35.907 |
|
C
Forms not received from the clients [Differential Liability] |
7.356 |
6.659 |
|
Corporate
Guarantee issued. Balance as on 31st March 2010 |
2.360 |
2.360 |
FORM 8
|
Corporate
identity number of the company |
U25199N1949PLC006875 |
|
Name of the
company |
ORIENTAL RUBBER
INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
Email: mukesh@orientalrubber.com |
|
This form is for |
Modification of
charge |
|
Charge
identification (ID) number of the charge to be modified |
10046398 |
|
Type of charge |
|
|
Particular of
charge holder |
Union Bank of
India, IFB Lead Bank, Sache Peer Street, Cantonment Camp, Pune – 411001,
Maharashtra, India Email: kirti@unionbankofindia.com |
|
Nature of
instrument creating charge |
Hypothecation
Agreement of Goods and Debts (SD-06) and Letter of Hypothecation of Bills
(SD-17) both the documents has been executed between the Borrower Company and
the Bank to create a First Pari Passu charge over all movable and immovable
properties and second charge on the properties located at Koregaon Bhima and Karandi Distt Pune for itself for
enhanced limits extended by the Bank. |
|
Date of
instrument Creating the charge |
08.02.2012 |
|
Amount secured by
the charge |
Rs.1362.600
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest All the terms and
conditions as per revised letter under reference ADV/IFB/1064 dated
08.02.2012 addendum to original letter under reference ADV: IFB: SA: VMK: 914
Dated 28.12.2012 Terms of
Repayment All the terms and
conditions as per revised letter under reference ADV/IFB/1064 dated
08.02.2012 addendum to original letter under reference ADV: IFB: SA: VMK: 914
Dated 28.12.2012 Margin All the terms and
conditions as per revised letter under reference ADV/IFB/1064 dated
08.02.2012 addendum to original letter under reference ADV: IFB: SA: VMK: 914
Dated 28.12.2012 Extent and
Operation of the charge Union Bank of
India IFB Camp Pune branch will have First charge on Inventory and book debts
generated through the commercial transactions located at the specified
locations in the sanction letter. The Bank will have first charge of
immovable properties at specified locations and 2nd charge over all movable
immovable properties as located and denoted in the annexure .Personal
Guarantee of Directors and Corporate Guarantee of M/s. Punvick Investment
Private Limited The charge will be in continuous mode. Others The Company, by
virtue of the Board Resolution passed on 08.02.2012,has given assent to all
the Terms and Conditions, Covenants, as provided in the Bank's Sanction
Letter (s)including addendum to original and have executed the related loan
document(s)/ Agreement(s) through the Director(s),who have received and signed the documents in physical form
and who have been authorized to file eform-8 for the modifications in the existing
limits and in the nature and scope of the charge on agreed terms. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
All the current
assets inclusive of Book Debts and the records maintained at the Registered
Office and at the Works of the Company Collateral
Security: Land and Building, Plant and Machinery at Gat No.519 to 525 at
village Koregaon Bhima Tal.Shirur District Pune Collateral
Security:Land and Building ,Plant and Machinery at Gat No.735 to 739 at
village Karandi Tal. Shirur District Pune Collateral
Security: Land located at Gat No.1268/1 and 1268/2 at village Karandi Taluka
Shirur District Pune and Land located at Gat No.76 at Village Karandi
adjacent karandi unit in the name M/s. Punvick Investments Private Limited |
|
Particulars of
the present modification |
By this present
modification, the existing limit of
Union Bank of India IFB Pune which was of Rs.987.700 millions have
been enhanced to Rs.1013.400 millions (The enhanced limit comprises WC Limit
of Rs.510.000 millions Non Fund Based Limits of Rs.405.000 millions and
balance of the Term Loan Rs.98.400 millions) The Total limit of the
Consortium under Union Bank as Lead Bank. |
FIXED ASSETS
·
·
Building
·
Plant and Machinery
·
Electrical
Installation
·
Furniture and Fixture
·
Computer
·
Vehicles
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.50.54 |
|
|
1 |
Rs.80.34 |
|
Euro |
1 |
Rs.67.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
55 |
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.