MIRA INFORM REPORT
|
Report Date : |
21ST June, 2006 |
IDENTIFICATION DETAILS
|
Correct Name : |
SHAH
BROTHERS ISPAT PRIVATE LIMITED |
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|
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|
Registered Office : |
406, Giriraj, Iron Market,
S. T. Road, Mumbai- 400 009, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
04.08.2004 |
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Com. Reg. No.: |
11-147842 |
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CIN No.: [Company Identification No.] |
U27101MH2004PTC147842 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMS45609E |
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PAN No.: [Permanent Account No.] |
AAAFS1089F |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Agents, distributors,
warehouse, traders, stockists, importers, exporters, manufacturers,
processors and for that purpose buy, sell, market, distribute or otherwise
deal in ferrous and non-ferrous metal. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1000000 |
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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 successor of
40 years old business of Shah Brothers & Company Directors are reported as
experienced, respectable and resourceful businessmen. Their trade relations
are fair. Financials position of the company is good. Payments are correct
and as per commitments. The company is doing very
well. It can be regarded as a
promising business partner in a medium to long – run. |
LOCATIONS
|
Registered Office : |
406, Giriraj, Iron Market,
S. T. Road, Mumbai- 400 009, Maharashtra, India |
|
Tel. No.: |
91-22-23445445/6/3 |
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Fax No.: |
91-22-23436928 |
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E-Mail : |
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Factory : |
404,
Giriraj , S. T. Road, Iron Market, Mumbai – 400 009, Maharashtra, India |
|
Tel. No.: |
91-22-23445445
(5 Lines) |
|
Fax No.: |
91-22-23436928 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Chinubhai Himmatlal
Shah |
|
Designation : |
Director |
|
Address : |
31, Anupam, 11, Manav
Mandir Road, Walkeshwar, Mumbai – 400 006, Maharashtra |
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Date of Birth/Age : |
13.03.1936 |
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Date of Appointment : |
04.08.2004 |
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|
Name : |
Mr. Pravin Pranlal Mehta |
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Designation : |
Director |
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Address : |
Flat No. 14, 2nd
Floor, Nirmala Mahal, 12A Bomenji Point Road, Mumbai – 400036 |
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Date of Birth/Age : |
31.08.1935 |
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Date of Appointment : |
04.08.2004 |
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Name : |
Mr. Sanjiv Pravin Mehta |
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Designation : |
Director |
|
Address : |
Flat No. 14, 2nd
Floor, Nirmala Mahal, 12A Bomenji Point Road, Mumbai – 400036 |
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Date of Birth/Age : |
14.12.1963 |
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Date of Appointment : |
04.08.2004 |
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|
Name : |
Mr. Dharmesh Chinubhai Shah |
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Designation : |
Director |
|
Address : |
31, Anupam, 11, Manav
Mandir Road, Walkeshwar, Mumbai – 400 006, Maharashtra |
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Date of Birth/Age : |
25.06.1964 |
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Date of Appointment : |
04.08.2004 |
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|
Name : |
Mr. Rajesh Chinubhai Shah |
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Designation : |
Director |
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Address : |
31, Anupam, 11, Manav
Mandir Road, Walkeshwar, Mumbai – 400 006, Maharashtra |
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Date of Birth/Age : |
10.07.1965 |
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Date of Appointment : |
04.08.2004 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Ranjnbala P. Mehta |
|
90000 |
|
Ms. Heena S. Mehta |
|
90000 |
|
Mr. Chinubhai H. Shah |
|
144000 |
|
Mr. Pravin P. Mehta |
|
135000 |
|
Mr. Sanjiv P. Mehta |
|
135000 |
|
Mr. Dharmesh C. Shah |
|
153000 |
|
Mr. Rajesh C. Shah |
|
153000 |
BUSINESS DETAILS
|
Line of Business : |
Agents, distributors, ware
merchants, traders, stockists, importers, exporters, manufacturers,
processors and for that purpose buy, sell, market, distribute or otherwise
deal in ferrous and non-ferrous metal. |
|
|
|
|
Products : |
v
Ferrous v
Non - Ferrous Metal |
GENERAL INFORMATION
|
No. of Employees : |
45 |
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|
|
|
Bankers : |
v
Union Bank of India v
Bank of India v
Bank of Baroda v
ICICI Bank v
ABN Amro Bank |
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|
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|
Facilities : |
Secured Loan Union
Bank of India – Rs. 7.167 Bank
of India – Rs. 14.255 Secured
by hypothecation of stocks and book debts and personal security and guarantee
of all director Motor
Car Loan (ICICI Bank) Rs. 0.467 Motor
Car Loan (ABN Amro Bank) Rs. 0.595 Secured
agaist hypothecation of respective vehicles Total – Rs. 22.485 Millions |
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Banking Relations : |
Good
|
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Auditors : |
H
M Mody & Company Chartered
Accountant |
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Address: |
12,
Indus Court, ‘A’ Road, Churchagate, Mumbai – 400020 |
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Tel. No.: |
91-22-22046924 |
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Fax. No.: |
91-22-22873255
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Associates/Subsidiaries
: |
-- |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,000 |
Equity Shares |
Rs. 10/- |
Rs. 10.000 million |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9,00,000 |
Equity Shares |
Rs. 10/- |
Rs. 9.000 million |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF
FUNDS |
|
|
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1]
Share Capital |
|
|
9.000 |
|
|
2]
Share Application Money |
|
|
0.000 |
|
|
3]
Reserves & Surplus |
|
|
266.957 |
|
|
4]
(Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
275.957 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
|
22.485 |
|
|
2]
Unsecured Loans |
|
|
81.018 |
|
|
TOTAL BORROWING |
|
|
103.503 |
|
|
DEFERRED
TAX LIABILITIES |
|
|
0.206 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
379.666 |
|
|
|
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|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
31.870 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS &
ADVANCES |
|
|
|
|
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|
Inventories |
|
|
449.890 |
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|
Sundry Debtors |
|
|
461.063 |
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|
Cash & Bank Balances |
|
|
122.071 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
29.765 |
|
Total Current Assets |
|
|
1062.789 |
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|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
697.153 |
|
|
Provisions |
|
|
17.984 |
|
Total Current Liabilities |
|
|
715.137 |
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|
Net
Current Assets |
|
|
347.652 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.144 |
|
|
|
|
|
|
|
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TOTAL |
|
|
379.666 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2005 |
|
Sales Turnover [including other income] |
|
|
1540.050 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
|
49.148 |
|
Provision
for Taxation |
|
|
18.191 |
|
Profit/(Loss)
After Tax |
|
|
30.957 |
|
|
|
|
|
|
Import
Value |
|
|
886.672 |
|
|
|
|
|
|
Total
Expenditure |
|
|
1490.901 |
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2005 |
|
PAT / Total Income |
(%) |
|
|
2.01 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
|
3.19 |
|
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|
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|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
|
4.48 |
|
|
|
|
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|
Return
on Investment (ROI) (PBT/Networth) |
|
|
|
0.17 |
|
|
|
|
|
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
|
2.96 |
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|
|
|
|
|
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Current
Ratio (Current
Asset/Current Liability) |
|
|
|
1.48 |
LOCAL
AGENCY FURTHER INFORMATION
History
The company was incorporated on 04.08.2004, to take over the running business of M/s. Shah Brothers & Company a partnership firm with over 40 year in business. The transactions for conversion was made under part IX of the companies Act 1956.
The company’s performance for
the year under review from 04.08.2004 was good, the company achieved higher
turnover and profit compared to its previous entity M/s. Shah Brothers &
Company
The outlook for steel
industry and overall demand for special quality steel which the company had created
a niche for itself.
It also plans to strength its
core business by focusing on wider markets.
Dividend
In view of conserving
resources for the growth of the company the board does not declare any dividend
on equity capital for the year ending 31.03.2005
Fixed Assets
v
Leasehold Land
v
Computer
v
Furniture & Fixture
v
Office Equipment
v
Motor Car
v
Godown
v
Plant & Machinery
Report of erstwhile SHAH BROTHERS AND COMPANY appended here under.
INQUIRY DETAILS
|
Given Name : |
SHAH BROTHERS AND COMPANY |
|
|
|
|
Given Address : |
407, Giriraj, Iron Market,
S. T. Road, Mumbai - 400 009, Maharashtra, India |
IDENTIFICATION DETAILS
|
Name : |
SHAH BROTHERS AND COMPANY |
|
|
|
|
Formerly Known As : |
SHAH
BROTHERS |
|
|
|
|
Registered Office : |
407, Giriraj, Iron Market,
S. T. Road, Mumbai - 400 009, Maharashtra, India |
|
|
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|
Date of Incorporation : |
28th
May 1962 |
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|
Com. Reg. No.: |
-- |
|
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|
Legal Form : |
It
is a partnership concern with an unlimited liability of the partners. |
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|
Line of Business : |
Importers
and Wholesale Traders of Boiler Quality Stainless Steel Plates, Sheets,
Pipes, M. S. Plates, Alloy Steel Plates, Ferrous Metals, Non-Ferrous Metals,
etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
-- |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
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Litigation : |
Clear |
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|
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|
Comments : |
It is a well-established
family owned partnership concern. The concern enjoys favourable reputation in
the local market. General financial position is satisfactory. Payments are
correct and as per commitments. The concern can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
407, Giriraj, Iron Market,
S. T. Road, Mumbai - 400 009, Maharashtra, India |
|
Tel. No.: |
91-22-344 5445 (5 Lines) |
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Fax No.: |
91-22-343 6928 |
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E-Mail : |
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|
Area : |
1600
sq.fts |
|
Location : |
Rented
|
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Branches : |
Located
at: Ø
Chennai Ø
Hyderabad Ø
Bhilai |
PARTNERS
|
Name: |
Mr. Chinubhai H. Shah |
|
|
Designation: |
Partner |
|
|
Address: |
31, Anupam, 11 Manav Mandir
Road, Mumbai - 400 006, Maharashtra, India |
|
|
Age: |
67 years |
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|
Experience: |
45 years |
|
|
Tel. No.: |
91-22-367 8696 / 368 5264 |
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|
Name: |
Mr. Pravinchandra P. Mehta |
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Designation: |
Partner |
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|
Age: |
67 years |
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|
Experience: |
45 years |
|
|
|
|
|
|
Name: |
Mr. Rajesh Shah |
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Designation: |
Manager |
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|
Age: |
39 years |
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Qualification: |
Commerce Graduate |
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Experience: |
18 years |
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|
Name: |
Mr. Sanjiv Mehta |
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Designation: |
Manager |
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|
Age: |
39 years |
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Qualification: |
Commerce Graduate |
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|
Experience: |
18 years |
|
|
|
|
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|
Name : |
Mr.
Dharmesh C. Shah |
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|
Designation : |
Partner
|
|
|
|
|
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|
Name : |
Mr.
Sanjiv P. Mehta |
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|
Designation : |
Partner
|
|
|
|
|
|
|
Name : |
Mr.
Rajesh Mehta |
|
|
Designation : |
Partner
|
|
BUSINESS DETAILS
|
Line of Business : |
Importers
and Wholesale Traders of Boiler Quality Stainless Steel Plates, Sheets,
Pipes, M. S. Plates, Alloy Steel Plates, Ferrous Metals, Non-Ferrous Metals,
etc. |
|
|
|
|
Products : |
Ø
Boiler Quality
Stainless Steel Plates Ø
Sheets Ø
Pipes Ø
M. S. Plates Ø
Alloy Steel Plates Ø
Ferrous Metals Ø
Non-Ferrous Metals |
|
|
|
|
Imports from : |
Romania,
Germany, Belgium, Ukraine and UK |
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|
|
|
Terms : |
|
|
Purchasing : |
L/C
or D/P terms |
GENERAL INFORMATION
|
No. of Employees : |
22 |
|
|
|
|
Bankers : |
Global Trust Bank Makers Chambers III, 1st
Floor, Nariman Point, Mumbai – 400 021, India |
|
|
|
|
Facilities : |
The
concern enjoys cash credit facilities of Rs. 30 millions and fund based L/C
limit of Rs. 250 millions from its banker |
|
|
|
|
Banking Relations : |
Good
|
|
|
|
|
Auditors : |
Not
Available |
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|
Sister Concerns : |
¨
Meshco Steels, 404,
Giriraj, Iron Market, S. T. Road, Mumbai - 400 009 -
Importer and Wholesale trader ¨
Raj International,
Mumbai -
Merchant and Exporter ¨
Peacefort Chemin
Engineering Corporation Private Limited -
Traders |
|
|
|
|
Memberships : |
¨
Steel Chamber of India ¨
Bombay Iron Merchants
Association ¨
Indian Merchants’
Association |
CAPITAL STRUCTURE
|
Capital Investment : |
Rs.
120.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
|
Particulars |
31.03.2002 |
31.03.2001 |
31.03.2000 |
|
Sales Turnover |
580.000 |
480.000 |
650.000 |
|
|
|
|
|
Projected
Turnover for the Year (2002-03): Rs. 670.000 millions
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The concern was established
on 28th May 1962 under the name and style of Shah Brothers at Mumbai
in Maharashtra as a Partnership Firm.
Name of the concern was changed to Shah Brothers & Company on 22nd
December 1984.
Import constitutes nearly 90%
of sales value.
It is in trade terms with:
Ø
Thermax Babcock Wilcox
Limited, Chinchwad, Pune - 411 019, Maharashtra, India
Ø
Tata Chemicals Limited,
Mithapur - 361345, Gujarat, India
Ø
Lloyds Steel Industries
Limited, A-515, MIDC Area, Murbad, Dist. Thane, Maharashtra, India
Ø
Indian Oxygen Limited,
Oxygen House, P-43 Taratala Road, Kolkata - 700 001, West Bengal, India
Ø
Cethar Vessels Limited,
76/B-1, Salai Road, Thillainagar, Trichy - 620018, Kerala, India
Ø
Larsen & Toubro
Limited, All Branches
Ø
Maragoan Dock Limited,
Mumbai, Maharashtra, India
Ø
Bharat Heavy Electricals
Limited, Various branches.
Ø
Althom India Limited –
all branches
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 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. 46.01 |
|
UK
Pound |
1 |
Rs. 84.93 |
|
Euro |
1 |
Rs. 58.30 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
RATING
|
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |