MIRA
INFORM REPORT
|
Report Date : |
14.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
RAJOO ENGINEERS LIMITED (w.e.f. May 1992) |
|
|
|
|
Formerly Known
As : |
RAJOO ENGINEERS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Junagadh Road Highway, Manavadar, Junagadh - 362630, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
08.12.1986 |
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|
|
|
Com. Reg. No.: |
04-009212 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs. 36.721 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100GJ1986PLC009212 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RKTR00664G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCR3204M |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
Line of Business
: |
Manufacturing and Selling of Plastic
Processing Machineries and Post Extrusion Equipments. |
|
|
|
|
No. of Employees
: |
Not Divulged |
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 |
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
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|
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. Profit of the company appears to be low during 2013. However, trade relations are fair. Business is active. Payments are
reported to be slow but correct. The company can be considered for business dealings with some
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million estimated
losses suffered by India due to phishing attacks during the third quarter,
according to a study by RSA. India ranks fourth in the list of nations hit by
phishing attacks. The US remained at the top of the charts. Phishing is the
process of acquiring information such as user names, passwords and credit card
details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
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 DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-2874-221175)
LOCATIONS
|
Registered Office : |
Junagadh Road Highway, Manavadar, Junagadh - 362630, Gujarat, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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|
Head Office/
Factory : |
Survey No. 210, Plot No.1, Rajoo Avenue, Industrial Area,
Veraval (Shapar), Rajkot - 360024, Gujarat, India |
|
Tel. No.: |
91-2827-252701/ 2/ 3 |
|
Fax No.: |
91-2827-252700 |
|
E-Mail : |
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Marketing Offices : |
Located at: · New Delhi Ahmadabad Bangalore Secunderabad Kolkata |
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International Marketing
Offices : |
Located at: · South Africa Egypt Tunisie Pakistan Turkey Thailand Israel Spain England Germany Greece |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Rajesh N. Doshi |
|
Designation : |
Chairman & Managing Director |
|
Date of Birth/Age : |
52 Years |
|
Qualification : |
B.Sc. |
|
Experience : |
31 years of
technical experience to convert market requirements into technical layout,
and having thorough knowledge in manufacturing and Plastic Processing, which
will be a great asset to the company |
|
Other Directorship : |
Rajoo Cotex
Limited |
|
|
|
|
Name : |
Mr. Sunil B. Jain |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
57 Years |
|
Qualification : |
B. E Honours (Mechanical) |
|
Experience : |
Mr. Jain has vast
experience in the field of flexible packaging and international marketing. |
|
Other Directorship : |
Ample KPO Private Limited |
|
|
|
|
Name : |
Ms. Khushboo C. Doshi |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
30 Years |
|
Qualification : |
B. Arch, M.I.P.D. & D.F.B.M. |
|
Experience : |
Initially
started as head MarCom now looking after MarCom, HR, Customer Care, Trial
& Testing and IT matters. MARCOM, |
|
Other Directorship : |
Avantgarde Design Studio Private Limited |
|
|
|
|
Name : |
Mr. Amit R. Shah |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Mr. Ramesh A. Shah |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
62 Years |
|
Qualification : |
B.Com, C.A.I.I.B. |
|
Experience : |
Mr. Ramesh A Shah,
has experience of more than 35 years in a nationalized bank and has
experience in financial and banking aspects, which is an asset to the company |
|
|
|
|
Name : |
Mr. Mahasukh S. Mehta |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
71 Years |
|
Qualification : |
B.A. |
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Experience : |
42 years of experience in textile trade. |
|
|
|
|
Name : |
Mr. Kishor R. Doshi |
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Designation : |
Independent Director |
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|
Name : |
Mrs. Prabha R. Vaja |
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Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Rajendra G. Vaja |
|
Designation : |
Independent Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
37071690 |
63.88 |
|
|
37071690 |
63.88 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
37071690 |
63.88 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3000 |
0.01 |
|
|
3000 |
0.01 |
|
|
|
|
|
|
2977665 |
5.13 |
|
|
|
|
|
|
11947839 |
20.59 |
|
|
5255532 |
9.06 |
|
|
775024 |
1.34 |
|
|
658253 |
1.13 |
|
|
116771 |
0.20 |
|
|
20956060 |
36.11 |
|
Total Public shareholding (B) |
20959060 |
36.12 |
|
Total (A)+(B) |
58030750 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
58030750 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of
Plastic Processing Machineries and Post Extrusion Equipments. |
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Products/ Services : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
· Axis Bank Limited ICICI
Bank Limited |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
M. N. Manvar and Company Chartered Accountants |
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|
|
|
Associates : |
· Rajoo Bausano Extrusion Private Limited Veeram Pack Private Limited Sambhav Plastopack Private Limited |
CAPITAL STRUCTURE
AFTER 10.09.2013
Authorised Capital : Rs. 77.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 58.031
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70000000 |
Equity Shares |
Re. 1/- each |
Rs. 70.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36720750 |
Equity Shares |
Re. 1/- each |
Rs. 36.721
Millions |
|
|
|
|
|
Reconciliation of Number of shares
|
Particulars |
31.03.2013 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Shares outstanding at the beginning of the year |
36720750 |
36.721 |
|
Add : Shares Issued during the year |
-- |
-- |
|
Less : Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
36720750 |
36.721 |
Details of more than 5% of total shares, held by each shareholder
|
Particulars |
31.03.2013 |
|
|
|
No. of Shares |
% of Holding |
|
Rajesh Nanalal Doshi |
4122000 |
8.01 |
|
Devyani Chandrakant Doshi |
4122000 |
11.23 |
|
Rita Rajesh Doshi |
1855690 |
5.05 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
36.721 |
36.721 |
36.721 |
|
(b) Reserves & Surplus |
225.073 |
216.854 |
200.885 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
261.794 |
253.575 |
237.606 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
63.293 |
109.063 |
71.478 |
|
(b) Deferred tax liabilities (Net) |
20.510 |
19.205 |
17.353 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
1.379 |
1.377 |
1.001 |
|
Total Non-current
Liabilities (3) |
85.182 |
129.645 |
89.832 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
119.367 |
51.737 |
59.109 |
|
(b)
Trade payables |
123.168 |
199.104 |
164.039 |
|
(c)
Other current liabilities |
9.005 |
21.182 |
2.837 |
|
(d) Short-term
provisions |
23.078 |
28.427 |
41.333 |
|
Total Current
Liabilities (4) |
274.618 |
300.450 |
267.318 |
|
|
|
|
|
|
TOTAL |
621.594 |
683.669 |
594.756 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
142.097 |
144.350 |
157.919 |
|
(ii)
Intangible Assets |
25.200 |
28.800 |
32.400 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
5.114 |
5.114 |
0.214 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1.271 |
1.028 |
0.949 |
|
(e) Other
Non-current assets |
0.408 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
174.090 |
179.292 |
191.482 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
306.419 |
287.398 |
166.554 |
|
(c)
Trade receivables |
75.799 |
76.376 |
108.238 |
|
(d) Cash
and cash equivalents |
5.023 |
48.196 |
46.761 |
|
(e)
Short-term loans and advances |
57.336 |
89.006 |
16.103 |
|
(f) Other
current assets |
2.927 |
3.401 |
65.618 |
|
Total
Current Assets |
447.504 |
504.377 |
403.274 |
|
|
|
|
|
|
TOTAL |
621.594 |
683.669 |
594.756 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operation |
908.253 |
785.905 |
773.958 |
|
|
|
Other Income |
1.069 |
3.653 |
0.513 |
|
|
|
TOTAL (A) |
909.322 |
789.558 |
774.471 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
556.517 |
490.289 |
512.443 |
|
|
|
Purchase of Stock-In-Trade |
155.735 |
86.729 |
0.268 |
|
|
|
Changes in Inventories of Finished Goods Work in Progress
and Stock-in-Trade |
(37.745) |
(81.949) |
(65.203) |
|
|
|
Employee Benefits Expenses |
47.101 |
52.647 |
63.880 |
|
|
|
Other Expenses |
132.593 |
166.708 |
185.562 |
|
|
|
TOTAL (B) |
854.201 |
714.424 |
696.950 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
55.121 |
75.134 |
77.521 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
13.853 |
15.579 |
4.988 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
41.268 |
59.555 |
72.533 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
15.887 |
15.893 |
16.307 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
25.381 |
43.662 |
56.226 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.448 |
15.742 |
19.269 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
16.933 |
27.920 |
36.957 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
130.622 |
119.477 |
97.509 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR YEAR'S
ADJUSTMENT |
0.790 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1.693 |
4.825 |
3.000 |
|
|
|
Dividend |
8.124 |
10.282 |
10.281 |
|
|
|
Tax on Dividend |
1.381 |
1.668 |
1.708 |
|
|
BALANCE CARRIED
TO THE B/S |
137.147 |
130.622 |
119.477 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods Calculated on F.O.B. Basis |
135.445 |
263.389 |
283.658 |
|
|
|
Service Charges |
0.738 |
0.748 |
1.494 |
|
|
TOTAL EARNINGS |
136.183 |
264.137 |
285.152 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material, Components and Spare Parts |
54.541 |
201.480 |
66.174 |
|
|
|
Capital Goods |
2.091 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
56.632 |
201.480 |
66.174 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.46 |
0.76 |
1.03 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
163.300 |
184.700 |
|
Total Expenditure |
|
152.200 |
172.900 |
|
PBIDT (Excl OI) |
|
11.000 |
11.700 |
|
Other Income |
|
0.100 |
0.500 |
|
Operating Profit |
|
11.100 |
12.200 |
|
Interest |
|
2.900 |
1.700 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
8.200 |
10.500 |
|
Depreciation |
|
4.500 |
3.500 |
|
Profit Before Tax |
|
3.700 |
7.000 |
|
Tax |
|
1.200 |
2.300 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
2.500 |
4.700 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
2.500 |
4.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.86
|
3.54 |
4.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.79
|
5.56 |
7.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.12
|
6.43 |
9.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.17 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.70
|
0.63 |
0.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.63
|
1.68 |
1.51 |
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 |
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 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 |
Yes |
|
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10125874 |
11/01/2011 * |
244,645,000.00 |
AXIS BANK LIMITED |
"TITAN", NEAR K. K. V. CIRCLE, KALAWAD ROAD, RAJKOT - 360001, GUJARAT, INDIA |
B04506267 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Deposits |
|
|
|
- Employees Security Deposit |
0.238 |
0.131 |
|
- Security Deposit against Orders |
63.055 |
103.056 |
|
|
|
|
|
Total |
63.293 |
103.187 |
CORPORATE INFORMATION
Subject is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. The Company's
shares are listed on Bombay stock exchange in India. The company is mainly
engaged in the manufacturing and selling a reputed brand of Plastic Processing
Machineries and Post Extrusion Equipments. The company caters to both domestic
and international markets.
PERFORMANCE REVIEW
During the year, the Company has achieved domestic sales of Rs. 566.216
Millions as against Rs. 352.965 Millions during previous fiscal. Export sales
have decreased to Rs. 328.285 Millions from Rs. 413.162 Millions of previous
year. The aggregate sales and other income have increased by 15.17% to Rs.
909.323 Millions from Rs. 789.558 Millions of previous year 2011-12. The net
profit of the Company has decreased to Rs. 16.933 Millions down by 39.35%
against previous year. This is mainly due to fluctuation in foreign exchange
rates on unexpected import of input/materials. Their major imports are in EURO
and US Dollar. However, the management has already started to implement various
measures including plan import and cover foreign remittances to reduce costs
and improve realization as well as addition of new product line to increase,
both the top line and bottom line.
MERGER
Members are aware that the Company had initiated process of merger of
three private limited Companies, Hitesh Engineers Private Limited, Shruti
Engineers Private Limited and Vishwakarma Fabricators Private Limited
(Transferor Companies) with Rajoo Engineers Limited (Transferee Company).
During the year, the Hon'ble High Court of Gujarat has sanctioned the Scheme of
Arrangement vide its Order dated 30th November, 2012. The Orders
have already been filed by respective Transferor Company and Transferee Company
with the Registrar of Companies, Gujarat, and scheme has now came into effect.
Before merger, all three private limited Companies were manufacturing
flat sheet dies, extruders, fabrication structure, multilayer dies, screen
changers, take-off assembly, roll stack assembly, air rings, calibration
baskets, and winder assembly to be used for plastic processing machineries.
Rajoo will be able to cater all such parts and components in-house through
manufacturing facilities present in three private limited companies. This will
also help REL to lower its operational costs such as cost of raw material, cost
of labour, and cost of other manufacturing and administrative expenses. This
synergy will result in common utilization of resources of all four Companies
such as administration and production facilities, marketing outlets, efficient
workforce, management skills, liquidity etc.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND ITS DEVELOPMENTS
The Company is in the capital goods sector, manufacturing plastic
processing machines specifically extrusion and post extrusion machines for
producing films, sheets and various thermoformed and vacuum formed products.
The total size of the Indian industry in this sector is estimated at Rs. 40000.000
Millions with a total employment of around 1,20,000. The Government of India
has now recognized the plastics processing machinery manufacturers as a
formidable sector and has given it its due importance in the industrial
development of the Indian economy.
The Company has been successfully providing world class technology and
affordable solutions to the plastics industry, in the country and worldwide,
"Excellence in extrusion", thus pervades each and every facet of the
Company's operations and is a distinct expression of the corporate vision and
culture.
Plastics represents one of the ubiquitous raw materials that finds use
in a wide gamut of industries ranging from packaging, construction,
automotives, industrial manufacturing equipment, to mechanical engineering.
Plastics have entered each and every walk of life in the modern world
and transformed the quality of life. There is no human activity where plastics
do not play a key role from clothing to shelter, from transportation to
communication and from entertainment to health care. Plastics, because of their
many attractive properties, such as lightweight, high strength and ease of
processing, ease of recycling, meets a large share of the material needs of
man, and that too at a comparatively lower cost and causing lower environmental
implications. The unique characteristics of plastics like durability,
formability, light weight and versatility have enabled their usage in almost
everything which helps make life easier and better.
OUTLOOK
Plastics represent one of the most important raw materials that are
extremely common in wide range of industrial productions as well as their daily
life usages. The global plastics industry has seen a steady growth since 2007
as recovering economic conditions and resurgence across most end-use markets is
driving the demand for various types of plastics and plastic materials.
Nowadays Asia-Pacific is emerging as a prime growth driver for the plastics
industry, with China and India expected to foster growth in the medium to
long-term period.
Worldwide, the total plastics consumption will have an average growth
rate of 5% - 6%, and to reach 297.5 million tonnes by 2015. Asia has been
world's largest plastics consumer for several years, accounting for about 30%
of the global consumption excluding Japan, which has share of about 6.5%. Next
to Asia is North America with 26% share, then Western Europe with 23% share in
the global market.
From 2009 to 2010 the global plastic production of plastics increased by
15 million tonnes or 6% to 265 million tonnes, confirming the long term trend
of plastics production growth of almost 5% per year over the past 20 years. In
2010 Europe accounted for 57 million tonnes (21.5%) of the global production
and China overtook Europe as the biggest production regional at 23.5%.
Plastic packaging sector is one of the major consumers of plastics.
Apart from being used as a substitute for traditional materials, plastic
packaging is being increasingly used in healthcare and personal care products,
and packaged foods and beverages markets. The global plastic packaging industry
had a CAGR of 7.2% between 2001 and 2010. Over the recent years, significant
aspect of plastics material growth globally has been the innovation of newer
application areas for plastics such as increasing plastics applications in many
other industries, such as automotive, defence and aerospace, electrical and
electronics, telecommunication, building and infrastructure, etc. While the
global plastics market is also significantly influenced by the development of
new age plastics, emergence of new applications, and the focus on green
chemistry due to legislative and environmental requirements.
Bioplastic demand is on the rise and is expected to grow, owing to novel
applications in the packaging industry, primarily for food and beverages.
Emerging nations with underdeveloped or no recycling facilities are expected to
benefit considerably from bioplastics products and packaging.
Report of the Sub-group on Petrochemicals for the 12th Five Year plant
lists down following Opportunities for the plastics industry:
· Large and rapidly growing domestic market for end products.
Large
head-room for future growth (Indian per capita at - 7kg, compared to 109 kgs in
US, 32 kgs in Brazil and 29 kgs in China),due to favorable demographics, rising
disposable income, development of rural marketing, growth of organized
retailing, developments in agriculture, automobile, telecommunication, health
care, etc.
Rising
labour costs in developed markets in plastic converting sector - an opportunity
for India to expand capacities and export.
Development
of niche products for exports.
Scope
for increased value addition.
Favourable
trade agreements
Further it also states that Virgin polymer consumption during 2010-11
was estimated to be 8.5 MMT, with 68% accounted by Extrusion, 26% by injection
Moulding Sector and the remaining 6% by Blow Moulding and other sectors.
Installed Capacity (for production of polymers) has more than doubled in
the last five years from 11.7 MMT in 05-06 to 23.7 MMt in 10-11. 32,000
machines were added at an investment cost of Rs 110000.000 Millions in the last
5 years out of which 21,300 injection moulding machines accounting for around
67%, while extrusion machines accounted for 27% and the rest 7% blow moulding
machines. Indian plastic processing industry invested around Rs 30000.000
Millions in machinery during 2010-11. This is almost 3 times that of
investments in 2005-06 which was Rs.11000.000 Millions and Rs 8000.000 Millions
in 2000-01. In the last decade, there has been close to a fourfold increase in
installed capacity per annum in all the three major sectors, viz., Extrusion,
injection and blow moulding. The Indian Plastic processing industry has seen a
shift from low output/low technology machines to high output, high technology
Machines.
Over the next 5 years, the sub-group projects as follows:
Consumption of plastics in high growth sectors like Infrastructure, Agriculture,
Material Handling and Packaging, Automobiles, White and Brown goods etc is
growing at more than 13 % p.a. leading to tremendous opportunities for plastic
machinery manufacturers. By the end of the 12th Five year Plan, the demand for
plastic processing machinery is projected to increase annually by 10.5% to
10800 machine/ year with installed capacity of 50 MMTA. This demand will also
be due to factors such as advances in new technology, high output machines,
energy efficiency, replacement of old machines and investment by new
entrepreneurs.
As a result of the technical collaboration with Hosokawa Alpine of
Germany for blown film systems, the Company is providing world class technology
to the industry. The company had introduced the concept of hybrid blown film
lines wherein the critical hot parts are supplied by Hosokawa Alpine, the
automation systems are also sourced from Europe and rest is supplied by the
Company. The company successfully integrated these technologies and supplied
first such hybrid line is working successfully.
The company had also entered in a Joint Venture with Bausano of Italy to
manufacture and supply pipe and profile extrusion machines. This project has
been implemented in a separate Company - Rajoo Bausano Extrusion Private
Limited. The Company is manufacturing and supplying many high technology parts
to this Joint Venture. The company has diversified into the agriculture secotor
and has developed and successful installed its Round Drip Line and will also be
introducing flat drip line soon.
The Company thus continues its leadership position in the world market
by offering world class technology at affordable price levels. With its strong
engineering skills and language advantage, similar to the IT and automobile
industry, India has become an outsourcing hub for supply of parts and
assemblies to the developed economies. The Company has already embarked upon a
program to take advantage of this opportunity for supplying to manufacturers in
Europe, Russia, USA and Francofone countries.
The Company has a positive outlook for F.Y. 2013-14. The Company will
leave no efforts to grab each and every opportunity for growth - both organic
and inorganic. The Company also expects to derive a greater operating leverage
out of its investments, maximizing shareholders' wealth.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
|
|
|
|
Bank Guarantee for Performance |
0.000 |
1.942 |
|
|
|
|
FIXED ASSETS:
·
Land
Site
Development
Approach
Road
Buildings
Plant
& Machineries
Furniture
& Fixtures
Office
Equipment
Computer
Fire
Fighting Equipment
Vehicles
Electrification
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 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. 61.52 |
|
|
1 |
Rs. 101.48 |
|
Euro |
1 |
Rs. 84.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.