MIRA
INFORM REPORT
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Report Date : |
11.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
ZENITH
STEEL TUBES AND INDUSTRIES LIMITED |
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Registered Office : |
S. No.
67, Vikramgad Taluka – Jawhar, District – Thane – 401605, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
24.03.1984 |
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Com. Reg. No.: |
11-032365 |
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CIN No.: [Company
Identification No.] |
L27104MH1984PLC032365 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMZ01005E |
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PAN No.: [Permanent
Account No.] |
AACCA3423E |
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Legal Form : |
A
Closely Held Public Limited Company |
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Line of Business : |
Manufacturer
of Steel Pipes – Ms/Gi Steel Pipes and Tubes
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RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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Maximum Credit Limit : |
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Status : |
Sick
Company |
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Payment Behaviour : |
Slow
and Delayed |
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Litigation : |
Unknown
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Comments : |
Financial
position of the company is poor. Ways and means are difficult. The company’s
payments are reported as slow and delayed. It can
be considered for any business dealings on safe and secured trade terms and
conditions, only |
LOCATIONS
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Registered Office : |
S. No.
67, Vikramgad Taluka – Jawhar, District – Thane – 401605, Maharashtra |
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Tel. No.: |
91-22-22000095 |
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Fax No.: |
91-22-22063608 |
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Factory
1 : |
Village
Madap, Tal – Kalapur, Khopoli, Raigad – 410218, Maharashtra |
DIRECTORS
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Name : |
Mr.
Singi Ghanshyaam Das |
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Designation : |
Director
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Address : |
51, Summer
Ville, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400026 |
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Date of Birth/Age : |
27.10.1938 |
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Date of Appointment : |
28.03.1990 |
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Name : |
Ms.
Prasad Ganga Jhawar |
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Designation : |
Director
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Address : |
504/A,
Nilgiri Apartments, S V Road, Malad (West), Mumbai – 400064 |
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Date of Birth/Age : |
01.09.1951 |
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Date of Appointment : |
30.03.1999 |
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Name : |
Mr.
Tripathi Sabhashankar |
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Designation : |
Director
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Address : |
Pdshpa
Nivas No. 4, Tulshet Pada Lake Road, Bhandup (West), Mumbai |
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Date of Birth/Age : |
25.12.1951 |
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Date of Appointment : |
28.06.2004 |
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Name : |
Mr.
Gunware S B |
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Designation : |
Director
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Address : |
IFCI
Earnest House, 8th Floor, Nariman Point, Mumbai – 400021 |
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Date of Birth/Age : |
01.06.1958 |
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Date of Appointment : |
30.03.2005 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Steel Pipes – Ms/Gi Steel Pipes and Tubes
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Products : |
v
Galvanised
Pipes – 73061201 v
Zinc
Dust – 79031000 v
Others
- 26201900 |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Steel Pipes |
Tons |
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54000 |
1341.188 |
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Galvanised Pipes |
Tons |
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36000 |
13.500 |
GENERAL
INFORMATION
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No. of Employees : |
250 |
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Bankers : |
Industrial
Development Bank of India |
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Facilities : |
Secured
Loan Sicom
Limited – Rs. 9.200 Millions (Secured
by way of 1st charge on movable and immovable properties of the
company on parri passu basis with other financial intuitions and personal
guarantee of the director.) Industrial
Financial Corporation of India Limited
- Rs. 112.000 Millions (Secured
by way of 1st charge on movable and immovable properties of the
company on parri passu basis with other financial institutional and personal
guarantee of the director) Industrial
Development Bank of India (Equipment finance scheme loan) – Rs. 50.000
Millions (Secured
against specific plant & machinery purchased from the loan and personal
guarantee of the director) Short
Term Loan Maharashtra
State Financial Corporation Limited – Rs. 2.147 Millions (Secured
by pledge of personal shares of the promoters, directors and irrevocable
personal guarantee of the director) Interest
Accrued and due on above loans – Rs. 647.003 Millions Hire
Purchased Finance – Rs. 5.920 Millions (Secured
against assets purchased under the hire purchases under the hire purchase
scheme) |
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Banking Relations : |
Unknown
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Auditors : |
Khandelwal
Jain & Company Chartered
Accountant |
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Address: |
12-B,
Bolddate Bhavan, 5th Floor, 117 M Karve Road, Churchgate, Mumbai –
400020 |
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Tel. No.: |
91-22-22032655/6/7/22062151 |
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Fax No.: |
91-22-22063402 |
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E-Mail : |
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Website.: |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 50.000 Millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
3969100 |
Equity
Shares |
Rs. 10/- Each |
Rs. 39.691 Millions |
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Less |
Calls
in Arrears |
|
Rs. 0.220 Millions |
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Total |
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Rs. 39.470 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
39.470 |
39.470 |
39.470 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
48.980 |
48.980 |
48.980 |
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4] (Accumulated Losses) |
(1549.407) |
(1225.677) |
(1187.121) |
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NETWORTH |
(1460.957) |
(1137.227) |
(1098.671) |
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LOAN FUNDS |
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1] Secured Loans |
1021.899 |
826.271 |
918.337 |
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2] Unsecured Loans |
21.641 |
21.641 |
12.496 |
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TOTAL BORROWING |
1043.540 |
847.912 |
930.833 |
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DEFERRED TAX LIABILITIES |
0.532 |
0.532 |
0.532 |
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TOTAL |
416.885 |
288.783 |
167.306 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
170.938 |
184.890 |
198.865 |
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Capital work-in-progress |
20.811 |
20.811 |
20.811 |
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INVESTMENT |
15.747 |
15.745 |
15.745 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
109.997
|
3.679 |
4.648 |
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Sundry Debtors |
46.747
|
45.516 |
45.313 |
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Cash & Bank Balances |
1.490
|
1.182 |
0.758 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
24.100
|
5.130 |
9.813 |
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Total Current Assets |
182.334
|
55.507 |
60.532 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
803.673
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562.590 |
460.376 |
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Provisions |
3.042
|
3.146 |
2.883 |
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Total Current Liabilities |
806.715
|
565.736 |
463.259 |
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Net Current Assets |
(624.381)
|
(510.229) |
(402.727) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
416.885 |
288.783 |
167.306 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
256.719 |
45.871 |
57.824 |
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Profit/(Loss)
Before Tax |
(323.675) |
(38.556) |
(263.874) |
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Provision
for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss)
After Tax |
(323.675) |
(38.556) |
(263.874) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
(%) |
(126.08)
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(84.05) |
(456.33) |
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Net
Profit Margin (PBT/Sales) |
(%) |
(126.08)
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(84.05) |
(456.33) |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
(91.62)
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(14.86) |
(101.70) |
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Return
on Investment (ROI) (PBT/Networth) |
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(0.22)
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(0.03) |
(0.24) |
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Debt
Equity Ratio (Total
Liability/Networth) |
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(1.26)
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(1.24) |
(1.26) |
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Current
Ratio (Current
Asset/Current Liability) |
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0.22
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0.09 |
0.13 |
LOCAL AGENCY
FURTHER INFORMATION
Operation
During
the year total income was lower at Rs. 45.871 Millions as compare to Rs. 57.824
Millions in the previous year. As reported earlier that in view of the company
having not adequate working capital had tied up with some parties exclusively and
besides also resorted to job works. By reporting to above the company
maintained its presence in the market and could keep the plant in running
condition but was unable to meet its operating expenses
General
Review
As
reported earlier that the company was declared a sick company by the board for
industrial and financial reconstruction on 03.05.2001 with in the meaning of
Sick Industrial Companies Act, 1985. As per direction the company has submitted
a rehabilitation proposal to operating agency which is being examined by them.
The rehabilitation proposal is mainly based on the assumption that the company
will be manufacturing its own goods instead of job work and the package of need
relief and concessions is made available
Fixed
Assets
v
Land
Freehold
v
Factory
Building
v
Plant
& Machinery
v
Dies
and Moulds
v
Electrical
Installation
v
Air
Condition
v
Furniture
& Fixture
v
Motor
Car & cycle
v
Office
Equipment
v
Computer
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.45.16 |
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UK
Pound |
1 |
Rs.85.99 |
|
Euro |
1 |
Rs.57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
- |
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OPERATING SCALE |
1~10 |
- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
- |
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--LEVERAGE |
1~10 |
- |
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--RESERVES |
1~10 |
- |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
5 |
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 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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