MIRA INFORM REPORT
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Report Date : |
2nd May, 2006 |
IDENTIFICATION DETAILS
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Name : |
ATUL
METAL INDUSTRIES |
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Registered Office : |
Shed
No. 374, GIDC Industrial Estate, Shanker Tekri, Near Jamnagar Industrial Own
Building, Udyog Nagar, Jamnagar-361004, Gujarat |
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Country : |
India |
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Financials (as on) : |
31-03-2006 |
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Date of Incorporation : |
1985 |
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Tan No. : |
RKTA00886E |
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Pan No.: |
AAFFA4130Q |
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Legal Form : |
A
Sole Proprietorship Concern |
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Line of Business : |
Import
& Recycle of Scrap such as M.S. Scrap, H.M. Scrap CI Scrape, Copper,
Brass, Aluminum and other minor metals and Manufacturer Export of : Various
Brass Components |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established concern having satisfactory track. Trade relations are
fair. Payments are usually correct and as per commitments. The concern can be
considered normal for business dealings at usual trade terms and conditions |
LOCATIONS
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Registered Office/ Head
Office/ Factory/Admn, Office/Godown: |
Shed
No. 374, GIDC Industrial Estate, Shanker Tekri, Near Jamnagar Industrial Own
Building, Udyog Nagar, Jamnagar-361004, Gujarat |
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Tel. No.: |
91-288-2561116/ 2560287 |
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Fax No.: |
91-288-2562424 |
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E-Mail : |
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Website : |
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Area : |
500
Sq.fts |
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Location : |
Leased |
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PROPRIETOR
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Name : |
Mr.
Gangdasbhai M Patel |
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Designation : |
Proprietor
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Address : |
Plot
No. 32, Raghuvir Society, Jamnagar-361005, Gujarat |
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Tel. No.: |
91-288-2562425 |
KEY EXECUTIVES
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Name : |
Mr.
Patel Sureshbhai Gangdasbhai |
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Designation : |
Chief
Executive Officer |
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Address : |
B/h.
ITI, 1 Raghuvir socity, Jamnagar-361005, Gujarat |
BUSINESS DETAILS
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Line of Business : |
Import
& Recycle of Scrap such as M.S. Scrap, H.M. Scrap CI Scrape, Copper,
Brass, Aluminum and other minor metals and Manufacturer Export of : Various
Brass Components |
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Exports to : |
Europe,
USA & Middle East |
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Imports of : |
Metal
Scrap |
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Imports from : |
Europe,
USA & Middle East |
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Terms : |
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Selling : |
L/C,
DP/DA – 60 days/ Bank Through |
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Purchasing : |
L/C
/ DP / Cash & Credit upto 30 days |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Local
Manufacturing Units |
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No. of Employees : |
Office
– 5, Factory – 100. Total – 105 |
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Bankers : |
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Name : |
State
Bank of Saurashtra |
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Address : |
Shankar
Tekri Industrial Estate Branch, Jamnagar-361004, Gujarat |
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Credit Limits : |
Rs.
2.500 million |
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Name : |
The
Navanagar Co-operative Bank Limited |
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Address : |
Shankar
Tekri Industrial Estate Branch, Jamnagar-361004, Gujarat |
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Credit Limits : |
Rs.
1.000 million |
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Banking Relations : |
Stiafactory |
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Auditors : |
N.A. |
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Associates : |
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Name: |
Super
Metal Corporation |
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Address : |
Shed No. 374, GIDC Industrial Estate,
Shanker Tekri, Near Jamnagar Industrial Own Building, Udyog Nagar,
Jamnagar-361004, Gujarat |
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Tel. No.: |
91-288-2560287 |
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Name: |
Atul
Brass Casting |
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Address : |
Shed
No. 374, GIDC Industrial Estate, Shanker Tekri, Near Jamnagar Industrial Own
Building, Udyog Nagar, Jamnagar-361004, Gujarat |
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Tel. No.: |
91-288-2560287 |
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Res. No.: |
91-288-2562424 |
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Name: |
Royal
Recycling Industries |
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Address : |
Shed
No. 374, GIDC Industrial Estate, Phase II Dared, Jamnagar-361005, Gujarat |
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Tel. No.: |
91-288-2561116 |
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Res. No.: |
91-288-2562425 |
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Name: |
Sun
Metal Industries |
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Address : |
Shed
No. 374, GIDC Industrial Estate, Shanker Tekri, Near Jamnagar Industrial Own
Building, Udyog Nagar, Jamnagar-361004, Gujarat |
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Tel. No.: |
91-288-2560287 |
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Res. No.: |
91-288-2562425 |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.
25.000 million |
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Borrowed : |
- |
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Total : |
Rs.
25.000 million |
FINANCIAL
DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
100.000 |
85.000 |
70.000 |
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Gross Profit for the year |
15.000 |
11.750 |
10.500 |
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Net Profit for the year |
8.000 |
8.500 |
7.000 |
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LOCAL AGENCY FURTHER INFORMATION
Expected
Turnover for the year 2007 : Rs. 115.000 million
Average
Stock maintained : Rs. 15.000 million
Products Range
Insert for Pipe Fittings
Brass Hose Tail
Brass
Rod Section
Profile
Royal Recycling
Industries, a 100% Export Oriented Unit is a Group
company of Atul Metal Industries established in 1985. The Company started with
manufacturing of Brass Spoke Nipple (Bicycle Part) and in a very short span
became the leading supplier to many reputed companies and covered more than 70%
of the Indian market.
In year 2000
Group entered into a new venture namely, RRI with installed capacity of 6000 MT
of products mfg. & reprocess of Ingots, Billets & Scraps with a prime
objective of Import & Export of Ferrous and Non-Ferrous Metal. We received
market support due to supply of high quality products & customer
satisfaction. Customer satisfaction is the main aim of the company and because
of that there is an increase in turn over of products. The inclination to
accept new challenges is the motivating factor behind the process of constant
improvement.
The company
started manufacturing precision brass components used in various applications
like sanitary fittings and electrical accessories. With able support of our
highly qualified technical team and regress quality control we were able to
penetrate through the international market. Presently we are exporting our
entire production to more than 15 countries.
Certificate of
Recognition
New Custom Norm hits Jamnagar
brass industry
Our Regional Bureau /
Ahmedabad / Jamnagar February 22, 2005
The 50 year- old brass
component manufacturing industry of Jamnagar, a 100% import oriented cluster,
is facing closure due to shortage of imported raw materials.
A new clearance procedure for
imported metal scrape announced by the Customs department has left the industry
feeling the shortfall of raw materials.
“Jamnagar has almost 5,500
units, of which 700 units have closed down in the last one month due to
scarcity of scrap metal. If this will continue for another week, the industry
in Jamnagar will shut down completely” Vijay Sheth, secretary, Jamnagar Chamber
of Commerce and Industry (JCCI), told Business Standard.
After blasts occurred in
various parts of India due to ammunition found in metal scrap, the Customs
department has tightened norms for import of metal scrap. Earlier, the Customs
had authorized a few agencies to certify contents of the scrape containers, but
the new policy imposed by the Customs, demands a special inspection clause to
be mentioned in every sales contract.
The clause requires every supplier to do a visual examination of
the consignment and confirm that it does not contain any arms, ammunition,
mines, shell, cartridges, radioactive material, contaminated or any other
explosive material in any form.
“We made a representation to
the government that the new clearance
procedure may be followed only if the material is sent from a war zone, and
government is also not willing to differentiate between ferrous and non ferrous
metals. These clearance norms have created a huge problem for the last one
month. In this situation, the brass industry does not have sufficient raw
materials to run for another two weeks,”” said Mr. G M Patel, Proprietor, Atul
Metal Industries, a leading manufacturer of various brass components.
Jamnagar brass industry
contributes 90% requirement of brass components in the country and has a major
share in international market. While about 400 containers of non ferrous metal
scrape are imported per month at Jamnagar, not a single incident of explosion
has taken place till date among these containers.
“During the last one month,
we have lost 20,000 workers and cargo operates have also charged a fine of Rs.
10 million from the brass component industry. Several cargo operators have also
cancelled agreements with us” said mr. R K Sinha, partner of Metallic
Industries, Jamnagar.
Vranjilal Kharecha of the
Nawanagar Chamber of Commerce says that new Customs requirements, making
physical verification mandatory for of each and every cointainer, has also
affected the volume of metal scrap that is sent to Jamnagar
“Physical Checking each and
every container takes a lot of time and this results in lesser containers being
sent. This problem has led to a shortage of raw material for since the last one
month. We have got only about 20 to 30 containers of scrap metal in the last
one month,”he added.
Representations have been
made in this regard to the Customs authorities at Kandla port but the problem
still persists. The officers end up raising objections on small issues such as
change in address format in the pre-inspection certificate and a heavy amount
is charged as a fine. Such minor issues such as change in address format in the
problem of the brass industry,” said R K Shah of Jamnagar Brass Metal
Association
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.30 |
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UK
Pound |
1 |
Rs.78.45 |
|
Euro |
1 |
Rs.54.88 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
- |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
46 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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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 |