MIRA INFORM REPORT

 

 

Report Date :

08.03.2013

 

IDENTIFICATION DETAILS

 

Name :

RAJASTHAN MECHANICAL WORKS LIMITED

 

 

Registered Office :

A-188 (B), Road No.6-D, V.K.I Area, Jaipur – 302013, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

20.07.1995

 

 

Com. Reg. No.:

17-010428

 

 

Capital Investment / Paid-up Capital :

Rs.4.479 millions

 

 

CIN No.:

[Company Identification No.]

U34300RJ1995PLC010428

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Agricultural Implements in Various Size and Designs.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 30000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. There appears dip in profitability and sales turnover during the current year. Profit margin appears to be low. The external borrowing of the company seems to be huge.

 

However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered business dealings with great caution.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Dinesh Gupta

Designation :

Director

Contact No.:

91-9829015492

Date :

08.03.2013

 

 

LOCATIONS

 

Registered Office /Factory :

A-188 (B), Road No.6-D, V.K.I Area, Jaipur – 302013, Rajasthan, India

Tel. No.:

91-141-2331549/2332239/5107430/2231654 / 4024423

Fax No.:

91-91-141-2332631

E-Mail :

brahmpuri@hotmail.com            

brahmpuri@gmail.com

Website :

www.brahmpuri.com

Area :

3000 sq.ft

Location :

Owned

 

 

DIRECTORS

 

As on  03.09.2012

 

Name :

Mr. Dinesh Kumar Gupta

Designation :

Whole-time Director

Address :

301, Royal Plaza, Central Spine, Vidhyadhar Nagar, Jaipur -302023, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

20.07.1995

DIN No.:

00327306

 

 

Name :

Mr. Hemant Gupta

Designation :

Whole-time Director

Address :

TS - 5, Safayar Anand, Meera Marg, Banipark, Jaipur -302023, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

20.07.1995

DIN No.:

01885735

 

 

Name :

Mr. Mahendra Kumar Gupta

Designation :

Whole-time Director

Address :

H. No. 380, Sector – 6, Vidhyadhar Nagar, Jaipur – 302 023, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

20.07.1995

DIN No.:

01570197

 

 

Name :

Mr. Surendra Kumar Gupta

Designation :

Whole-time Director

Address :

H. No. 380, Sector – 6, Vidhyadhar Nagar, Jaipur – 302 023, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

20.07.1995

DIN No.:

00327330

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

No. of Shares

Mahendra Kumar Gupta

28000

Surendra Kumar Gupta

65000

Dinesh Kumar Gupta

81000

Hemant Gupta

13500

Shashi Gupta

121200

Manju Gupta

21290

Gomti Devi

93420

Brahampuri Steels Limited, India

100

Kalpna Gupta

230

Jagan Nath Gupta

100

Gomti Stampings Private Limited, India

100

Seema Gupta

950

Mahendra Kumar Gupta (HUF)

100

Surendra Kumar Gupta

100

Parul Alloys (Private) Limited, India

20000

Santosh Gupta

28000

Total

447890

 

Equity Share Break up (Percentage of Total Equity)

 

As on 29.09.2012

 

Category

Percentage

Directors or relatives of Directors

95.50

Other top fifty shareholders

4.50

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Agricultural Implements in Various Size and Designs.

 

 

Products :

Items Code No. (ITC Code)

Product Description

1002.06

Agriculture Implements

 

 

Exports :

 

Product :

·         Agriculture Implements

Countries :

·         Europe

·         African Countries 

·         Nepal

 

PRODUCTION STATUS

 

As on 31.03.2011

 

 

Particulars

Unit

Actual Production

 

 

 

Agriculture Implements and parts

Nos.

4229

 

 

 

 

 

                                                                 GENERAL INFORMATION                                                                

 

Suppliers :
  • Raju Ratna Engineering and Sales, Nepal

 

 

Customers :
  • Universal Steel Disc, Haryana

 

 

No. of Employees :

50 Approximately

 

 

Bankers :
  • State Bank of Bikaner and Jaipur

Jhotwara Industrial Area, Jaipur – 302 012, Rajasthan, India

  • HDFC Bank, Jaipur Branch

 

 

Facilities :

Secured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Term Loan From Bank

 

 

HDFC Car Loan RJ-14-CK-8067

0.219

0.562

HDFC Car Loan RJ-14-CK-2492

0.000

0.365

From Banks

 

 

SBBJ SLC A/c

3.039

3.030

SBBJ Cash Credit A/c (Regular and Adhoc) (Secured by all fixed assets and current assets of the company and personal guarantee of directors)

22.539

21.443

From Other Parties

 

 

NSIC Limited (Secured by Bank guarantee)

1.973

0.000

Total

27.770

25.400

NOTES :

 

Terms of Repayment of Loan

HDFC Bank RJ14-CH-2492 :- Vehicle loan was taken during 2010-11 year and carries interest @ 9.27% p.a. The loan is repayable in 36 installment of Rs. 0.032 million each along with interest, from the date of loan. The loan is secured by hypothecation of vehicle of the company.

 

HDFC Bank RJ14-CH-8067 :- Vehicle loan was taken during 2010-11 year and carries interest @ 9.27% p.a. The loan is repayable in 36 installment of Rs. 0.032 million each along with interest, from the date of loan. The loan is secured by hypothecation of vehicle of the company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Gupta Rajiv and Associates

Chartered Accountants

Address :

5, “Neelkanth” Nathmal ji Ka Katla, Opp. BSNL, Sanganeri Gate, Jaipur – 302003, Rajasthan, India

Tel. No.:

91-141-2609277 (15 Lines)

Fax No.:

91-141-2604883

E-Mail :

gra@computaxonline.com

PAN No.:

AABFG1505D

 

 

Memberships :
  • Laghu Udyog Bharti
  • VKI Association
  • Engineering Export Promotion Council (EEPC)

 

 

Relatives of Key Management Personnel:
  • Brahampuri Steel Limited
  • Gomti Industries
  • Gomti Stamping Private limited

 

 

CAPITAL STRUCTURE

 

As on 29.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs.10/- each

Rs.  5.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

447890

Equity Shares

Rs.10/- each

Rs 4.479 Millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4.479

4.479

4.437

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4.742

3.967

2.603

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9.221

8.446

7.040

LOAN FUNDS

 

 

 

1] Secured Loans

27.770

25.400

18.322

2] Unsecured Loans

21.357

12.483

2.329

TOTAL BORROWING

49.127

37.883

20.651

DEFERRED TAX LIABILITIES

0.285

0.163

0.110

 

 

 

 

TOTAL

58.633

46.492

27.801

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

19.924

12.188

9.532

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.256

0.084

0.084

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
34.507

27.479

11.945

 

Sundry Debtors
5.469

6.048

6.002

 

Cash & Bank Balances
1.547

1.442

0.896

 

Other Current Assets
0.493

0.406

0.000

 

Loans & Advances
3.445

3.824

5.082

Total Current Assets
45.461

39.199

23.925

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2.244

2.042

3.493

 

Other Current Liabilities
4.554

1.621

1.202

 

Provisions
0.210

1.316

1.045

Total Current Liabilities
7.008

4.979

5.740

Net Current Assets
38.453

34.220

18.185

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

58.633

46.492

27.801

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

85.586

79.643

80.256

 

 

Other Income

0.292

1.779

0.672

 

 

TOTAL                                     (A)

85.878

81.422

80.928

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost Of Material Consumed

74.872

68.900

63.837

 

 

Changes in Inventories of Finished Goods Work-in-Progress and Stock-in-Trade

(8.377)

(7.150)

(0.057)

 

 

Manufacturing Expenses

2.614

2.572

2.139

 

 

Employee Benefit Expenses

5.485

6.065

5.078

 

 

Administration Expenses

2.090

2.092

1.542

 

 

Selling Expenses

1.466

2.639

3.813

 

 

Loss on Sale of Vehicles

0.000

0.281

0.144

 

 

TOTAL                                     (B)

78.150

75.399

76.496

 

 

 

 

 

Less

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

7.728

6.023

4.432

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

5.785

2.972

1.695

 

 

 

 

 

 

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

1.943

3.051

2.737

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.837

0.671

0.418

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1.106

2.380

2.319

 

 

 

 

 

Less

TAX                                                                  (I)

0.332

0.872

0.691

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

0.774

1.508

1.628

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3.590

2.603

1.492

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.000

0.000

 

 

Dividend

0.000

0.448

0.444

 

 

Tax on Dividend

0.000

0.073

0.073

 

BALANCE CARRIED TO THE B/S

4.364

3.590

2.603

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

0.742

3.613

7.783

 

TOTAL EARNINGS

0.742

3.613

7.783

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.73

3.37

3.69

 

Expected Sales (2012-2013) : Rs.100.000 Millions.

 

The above information has been parted by Mr. Dinesh Kumar Gupta.

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
0.90

1.85

2.01

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.29

2.92

2.89

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.43

6.07

6.93

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.12

0.28

0.33

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
5.33

4.49

3.75

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.49

7.87

4.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

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

Yes

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

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

No

20]

Export / Import details (if applicable)

Yes

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

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

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

OPERATION:

 

During the year the company did well. The directors expect that the company will achieve new heights in the ensuing year.

 

Unsecured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Reliance Capital Limited

4.285

4.439

HDFC Loan

0.000

0.053

Loans and Advances From Other Parties

 

 

D. K. Gupta

10.309

5.147

M. K. Gupta

1.176

0.000

S. K. Gupta

5.587

2.844

Total

21.357

12.483

 

NOTES:

 

Reliance Capital Limited :- Unsecured loan was taken during 2011-12 year and carries interest @ 13.50% p.a. The loan is repayable in 182 installment of Rs. 0.053 million for first 10 months and remaining Rs. 0.058 million each along with interest, from the date of loan.

 

HDFC Bank :- Unsecured loan was taken during 2011-12 year and carries interest @ 13.00% p.a. The loan is repayable in 12 installment of Rs 0.223 million each along with interest, from the date of loan.

 

 

 

FIXED ASSTES:

  • Land
  • Building
  • Plant and Machinery
  • Electric Fitting
  • Dies and Jigs
  • Tools
  • Office Equipments
  • Furniture and Fixture
  • Vehicles

 

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 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 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.54.70

UK Pound

1

Rs.82.78

Euro

1

Rs.71.42

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

RSMK

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

27

 

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.