MIRA
INFORM REPORT
|
Report Date : |
02.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SOVA ISPAT ALLOYS
LIMITED |
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Registered Office : |
Room No. 59
Martin Burn House, 5th Floor, 1, R. N. Mukherjee Road, Kolkata -
700 012, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.08.1998 |
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Com. Reg. No.: |
21-58051 |
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CIN No.: [Company
Identification No.] |
U99999WB1998PTC058051 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS14232B |
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PAN No.: [Permanent
Account No.] |
AAECS8348C |
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Legal Form : |
A Closely held
public limited liability company. |
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Line of Business : |
Manufacturers and
Exporters of Silico Manganese and Ferro Manganese. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 850000 |
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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
and reputed company having satisfactory track. Directors are reported as
experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are usually correct and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Corporate
Office / Registered
Office : |
Room No. 59
Martin Burn House, 5th Floor, 1, R. N. Mukherjee Road, Kolkata - 700
012, West Bengal, India |
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Tel. No.: |
91-33-2242-8217 |
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Fax No.: |
91-33-2242-8432 |
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E-Mail : |
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Website : |
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r |
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Head Office : |
Hahnemann Sarani,
Angadpur, Durgapur - 713215, West Bengal, India |
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Tel. No.: |
91-343 - 2591207 |
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Fax No.: |
91-343 - 2591207 |
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E-Mail : |
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Factory 1 : |
Angadpur,
Durgapur, District - Burdwan, Pin - 713 215, West Bengal, India |
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Tel. No.: |
91-343-259-0689 /
680 / 802 |
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Fax No.: |
91-343-259-0679 |
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E-Mail : |
SOLE
PROPRIETOR/PARTNERS/DIRECTORS
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Name : |
Ms. Sabyasachi
Mukherjee |
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Designation : |
Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
22.06.1983 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Ms. Lila
Mukherjee |
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Designation : |
Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
22.06.1955 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Ms. Sucheta
Mukherjee |
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Designation : |
Director |
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Address : |
Amaravati, West
Barasat – 700126, West Bengal, India |
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Date of Birth/Age : |
17.09.1962 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Salil
Mukherjee |
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Designation : |
Managing Director
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
12.04.1950 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Samir Mukherjee |
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Designation : |
Whole Time
Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
05.01.1958 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Subrata Mukherjee |
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Designation : |
Whole Time
Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
15.03.1960 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Swarup
Chatterjee |
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Designation : |
Director |
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Address : |
West Ichapore,
Nabapally, Barasat, Kolkata – 700126, West Bengal, India |
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Date of Birth/Age : |
01.01.1974 |
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Date of Appointment : |
01.04.2004 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Exporters of Silico Manganese and Ferro Manganese. |
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Products : |
Silico Manganese Ferro Manganese |
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Exports : |
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Products : |
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Countries : |
Japan, China,
Singapore, Italy, Chile, South Korea , Bangladesh , Brazil , Chile. |
GENERAL
INFORMATION
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Customers : |
Overseas users in
Italy, Brazil, Chile, China, Japan, South Korea, Singapore, Bangladesh and
domestic clients like : ť
Durgapur Steel Plant, Durgapur ť
Alloy Steel Plant, Durgapur ť
Rourkela Steel Plant, Rourkela ť
Rashtriya Ispat Nigam Limited, Vizag ť
Tata Iron & Steel Company, Jamshedpur ť
Jindal Strips Limited ť
Rim Jhim Ispat Limited ť
Essem Enterprise ť
Prakash Industries Limited ť
Super Smelters Limited, Durgapur ť
Metalex India ť
Harsh India ť
Maithon Alloys Limited ť
Mahabir Ferro Alloys Limited, Durgapur ť
Usha Martin Limited and many others. |
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No. of Employees : |
About 500 |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
P. Sen Sharma and
Company Chartered
Accountants |
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Address : |
309, B. B.
Ganguly Street, east Block, 1st Floor, Kolkata – 700012, West
Bengal, India |
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Group Company : |
Meghalaya Sova
Ispat Alloys Limited : Alloys Limited
EPIP, Gate No. 6, Norbong Area, Byrnihat, Dist - Ribhoi,
Meghalaya, INDIA Phone
91-3638-263-906 / 263-530 Sova Ispat
Limited : Present Capacity
- 90,000 TPA of Sponge Iron producing since June 2005. Works : Jemua
Mouza, P S – Mejia, Dist : Bankura, West Bengal Ph : 91-341 -
250527 Tele fax : 91-341
- 250 537 Sova
Electrocastings Limited : Present Capacity
- 30,000 TPA M S ingot since June 2006. Heading towards producing
Forging quality & S S grades. Works : Bamunara
Industrial Area, P S – Kanksa, Durgapur - 713212. West Bengal Ph : 91-343
3202485 Sova Ispat Alloys
(Mega Projects) Limited : Located in Durgapur (W B ) Present Capacity
- 12 MVA being expanded to 24 MVA. Producing Ferro Alloys since October 2006.
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13788432 |
Equity Shares |
Rs. 10/- each |
Rs. 137.884 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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137.884 |
132.884 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
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74.686 |
52.573 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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212.570 |
185.457 |
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LOAN FUNDS |
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1] Secured Loans |
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113.116 |
82.257 |
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2] Unsecured Loans |
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72.250 |
40.250 |
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TOTAL BORROWING |
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185.366 |
122.507 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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397.936 |
307.964 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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92.462 |
114.238 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
|
0.374 |
0.274 |
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DEFERREX TAX ASSETS |
|
3.068 |
2.211 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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131.559 |
107.917 |
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Sundry Debtors |
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26.457 |
61.657 |
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Cash & Bank Balances |
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29.820 |
22.885 |
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Other Current Assets |
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181.092 |
66.677 |
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Loans & Advances |
|
38.823 |
62.109 |
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Total
Current Assets |
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407.751 |
321.245 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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105.719 |
130.004 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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105.719 |
130.004 |
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Net Current Assets |
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302.032 |
191.241 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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397.936 |
307.964 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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812.077 |
1237.904 |
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Total Income |
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812.077 |
1237.904 |
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Profit/(Loss) After Tax |
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7.065 |
54.653 |
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Earnings in Foreign Currency : |
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Total Earnings |
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196.674 |
811.311 |
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Expenditures : |
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Interest |
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13.162 |
9.705 |
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Depreciation & Amortization |
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23.830 |
30.741 |
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Other Expenditure |
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768.020 |
1142.805 |
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Total Expenditure |
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805.012 |
1183.251 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.86 |
4.41 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.49 |
0.70 |
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Current Ratio (Current Asset/Current Liability) |
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3.85 |
2.47 |
LOCAL AGENCY
FURTHER INFORMATION
AS PER WEBSITE
They introduce their
selves as one of the leading manufacturers in India who are regularly exporting
to Japan, China, Singapore, Italy, Chili, South Korea & Bangladesh apart
from Indian Clientele like TISCO, SAIL, RINL, IISCO, Jindal Steel & many
others. They got the best Exporter award amongst the North Eastern States for
2004-05 & 2005-06.
Over the years,
Durgapur (WB) & Meghalaya units have grown with a proven track record by
supplying uncompromised quality material and obviously, confidence of customers
Banks through regular transaction and payments has been obtained beyond doubt.
Infrastructure
Total Area
: 200 Acres
Total Covered Area
: 15000 Sq. Metres
Sova Ispat Alloys
Limited :
3 Nos Submerged
Electric Arc Furnace of total 24 MVA capacities. Furnaces are lined with high
Alumina Fire Bricks with Carbon Paste Electrodes. Power obtained from The
Durgapur Projects Limited at 11 KV level.
Meghalaya Sova
Ispat Alloys Limited :
2 Nos Submerged Electric
Arc Furnace of 18 MVA capacity of similar lining. Meghalaya State Electricity
Board is supplying the required power at 33 KV level.
Sova Ispat Alloys
(Mega Projects) Limited :
One 12 MVA similar
arc furnace is slated to produce ferro alloys from October 2006 and another 12
MVA furnace from July 2007. Power is made available fro The Durgapur Projects
Limited at 11 KV.
Sova Ispat Limited
:
One no 300 TPD
rotary kiln (first biggest in West Bengal by volume) is producing sponge iron.
Another 300 TPD unit is envisaged to come in December 2007. One Private Railway
siding to handle the huge quantity of raw material & products is going to
be installed inside the premises. WBSEB is supplying power at 11 KV. Elaborate
arrangement of Gas Conditioning Tower and Electrostatic Precipitator has been
made to keep emission norm within 150 mgms/NM3 of exhaust gas. Other dust prone
areas are managed by dust suppression system having bag filters. Very soon
waste heat recovery Boiler will be installed to generate power from the heat of
waste gas.
Sova
Electrocastings Limited :
2 nos 8 T capacity
high silica lined crucibles are producing around 30,000 T of M S ingots. With
installation of one ladle refining furnace, forging quality steel will be
produced here. With further technical up gradation, stainless steel will be
produced in this unit very soon.
Raw Material
: For Ferro Alloy Furnaces : Manganese Ore, Rich Manganese bearing
slag, Dolomite, Quartzite, Fine Coke (dry), Iron Chips and Mill Scale are
utilised. Proper blend is maintained through Micro Processor Batch Weighing
System and controlled through EMR feeders.
For
Rotary Kiln : Iron Ore and non-coking coal are the major
ingradients to
make
directly reduced sponge iron.
For Induction unit : Raw
materials are sponge iron, MS & CI Scrap, Pigs &
some
ferro alloys.
Facilities
: Belt Conveyors, Skip Charger, Raker, 3 nos. pendant
operated EOT cranes, Dumpers, JCBs, Moulds and all other necessary mechanical
equipment.
The Units are equipped
with dust precipitation system with bag filters to maintain the statutory solid
waste PPM level in the effluent gas. Obnoxious gases in the final discharge is
strictly maintained by proper selection/blending of raw materials and correct
smelting process in the furnaces thus ensuring the plant to be eco friendly.
Sizing/Bagging/Dispatch
: After one and half hours of cooling into the Cast Iron moulds, the solid
metal is stripped off. Broken to pcs. as per size & packed in nylon bags
weighing 25 Kg to 50 Kg. The bags are ready for dispatch which are loaded in
customer's trucks and finally weighed in computerised weighing machine.
PRODUCTS
Present Capacity
with Installed furnaces
High
Carbon Ferro Manganese
44,000
TPA or
High
Carbon Silico Manganese
36,000
TPA or
High
Carbon Ferro Chrome
20,250
TPA &
Low
Carbon Ferro Silicon
9,000
TPA
Sponge
Iron - 5 mm to 18 mm with 82% Fe (Met) 90,000 TPA
Mild
Steel Ingot - 41/2" x 31/2 size-
30,000
TPA
Product Profile
Because of high
demand in the present Market, Plant is producing High Carbon Ferro and Silicon
Manganese & Low Carbon Ferro Silicon.
Size varies from 25
mm to 125 mm. but customized and economic size also can be supplied.
In case of Sponge
Iron, normal size is 5 mm to 18 mm. However, they can supply 3 mm to 20 mm size
also.
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.43.59 |
|
UK Pound |
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.58.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|