MIRA
INFORM REPORT
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Report Date : |
06.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHITRAKOOT STEEL AND POWER PRIVATE LIMITED |
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Registered Office : |
New No. 22, Old No. 12, 1st Cross Street, C. I. T. Colony,
Mylapore, Chennai – 600004, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.10.2003 |
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Com. Reg. No.: |
18-51803 |
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CIN No.: [Company
Identification No.] |
U28999TN2003PTC051803 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEC04538C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
To establish, own or acquire ferrous and non-ferrous metal melting
furnaces, rolling mills and re-rolling mills and to carry on business as
traders and manufacturers of ferrous and non-ferrous metal ingots, blooms,
billets, slabs, wire rods, sheets, strips, angles, channels, round bars, auto
parts, components, pipes, tubes, tools and implements, machine parts,
hardwares, utensils, containers, vessels and other castings of every
description as well as to buy, sell, import and export, trade or deal in
aforesaid goods and materials. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 240000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a new project for manufacturing sponge steel and commenced
operations during 2005-06. Company
has incurred initial losses.
Directors are reported as experienced and respectable
businessmen. Payments are reported as
slow but correct. The company can be considered for small business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
New No. 22, Old No. 12, 1st Cross Street, C. I. T. Colony,
Mylapore, Chennai – 600004, Tamilnadu, India |
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Tel. No.: |
91-44-24984294 / 24990355 |
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Fax No.: |
91-44-24987090 |
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E-Mail : |
ssviki@yahoo.co.in |
DIRECTORS
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Name : |
Mr. G. Gautam Reddy |
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Designation : |
Director |
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Address : |
No. 4, 6th Street, Rutlandgate, Nungambakkam, Chennai – 600034,
Tamilnadu, India |
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Date of Birth/Age : |
11.05.1970 |
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Date of Appointment : |
21.10.2003 |
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DIN No. : |
00258529 |
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Name : |
Mr. R. Padmanabhan |
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Designation : |
Director |
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Address : |
25, Karpagam Avenue, R A Puram, Chennai – 600028, Tamilnadu, India |
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Date of Birth/Age : |
17.12.1923 |
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Date of Appointment : |
21.10.2003 |
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Date of Ceasing : |
18.08.2005 |
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Name : |
Mr. R. Narasimhan |
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Designation : |
Director |
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Address : |
No. 558, 18th Street, Korattur, Chennai – 600080,
Tamilnadu, India |
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Date of Birth/Age : |
24.11.1968 |
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Date of Appointment : |
26.07.2004 |
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Name : |
Mr. K. S. Meera Reddy |
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Designation : |
Director |
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Address : |
12, Rajaji Street, B – 2, Vijaya Shanthi Apartments, Saidapet,
Chennai, Tamilnadu, India |
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Date of Birth/Age : |
26.04.1967 |
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Date of Appointment : |
05.07.2004 |
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Date of Ceasing : |
18.08.2005 |
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Name : |
Mr. O. Sudhakar Reddy |
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Designation : |
Director |
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Address : |
66 / 1, Main Road, Sedarapet, Pondicherry |
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Date of Birth/Age : |
01.01.1961 |
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Date of Appointment : |
26.07.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. G. Gautam Reddy |
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9000 |
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Mr. G. Deepthi |
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1000 |
BUSINESS DETAILS
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Line of Business : |
To establish, own or acquire ferrous and non-ferrous metal melting furnaces,
rolling mills and re-rolling mills and to carry on business as traders and
manufacturers of ferrous and non-ferrous metal ingots, blooms, billets,
slabs, wire rods, sheets, strips, angles, channels, round bars, auto parts,
components, pipes, tubes, tools and implements, machine parts, hardwares,
utensils, containers, vessels and other castings of every description as well
as to buy, sell, import and export, trade or deal in aforesaid goods and
materials. |
GENERAL
INFORMATION
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No. of Employees : |
About 50 |
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Bankers : |
Indian Overseas
Bank Commercial &
Institutional Credit Branch ‘Auras Corporate Centre’, Post Bag No. 351, 98 – A, Dr. Radhakrishnan
Salai, Mylapore, Chennai – 600004 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. A. Reddy & Company Chartered Accountants |
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Address : |
24II/A, 422 A, Sarawathi Nagar, Nellore – 524003, Andhra Pradesh,
India |
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PAN No.: |
AAIFP0183F |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6139200 |
Equity Shares |
Rs. 10/-
each |
Rs. 61.392
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 |
61.392 |
0.100 |
0.100 |
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2] Share Application Money |
3.500 |
28.792 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[3.504] |
0.000 |
0.000 |
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NETWORTH |
61.388 |
28.892 |
0.100 |
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LOAN FUNDS |
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1] Secured Loans |
137.201 |
55.564 |
0.000 |
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2] Unsecured Loans |
15.000 |
0.000 |
2.142 |
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TOTAL BORROWING |
152.201 |
55.564 |
2.142 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
213.589 |
84.456 |
2.242 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
192.046 |
80.486 |
0.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
1.768 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
14.439
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0.000 |
0.000 |
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Sundry Debtors |
4.653
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0.000 |
0.000 |
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Cash & Bank Balances |
0.167
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0.780 |
0.946 |
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Other Current Assets |
0.000
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0.000 |
0.144 |
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Loans & Advances |
12.203
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5.971 |
1.105 |
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Total
Current Assets |
31.462
|
6.751 |
2.195 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities & Provisions |
12.060
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3.097 |
0.127 |
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Total
Current Liabilities |
12.060
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3.097 |
0.127 |
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Net Current Assets |
19.402
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3.654 |
2.068 |
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MISCELLANEOUS EXPENSES |
0.373 |
0.316 |
0.174 |
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TOTAL |
213.589 |
84.456 |
2.242 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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17.456 |
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Other Income |
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0.000 |
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Total Income |
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17.456 |
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Profit/(Loss) Before Tax |
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[5.216] |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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[5.216] |
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Total Expenditure |
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22.672 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
[29.88]
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N.A. |
N.A. |
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Net Profit Margin (PBT/Sales) |
(%) |
[29.88]
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N.A. |
N.A. |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[2.33]
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N.A. |
N.A. |
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Return on Investment (ROI) (PBT/Networth) |
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[0.08]
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N.A. |
N.A. |
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Debt Equity Ratio (Total Liability/Networth) |
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2.67
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2.03 |
22.69 |
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Current Ratio (Current Asset/Current Liability) |
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2.60
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2.17 |
17.28 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
CHITRAKOOT STEEL AND POWER PRIVATE LIMITED |
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Presented By |
G. Gautam Reddy,
Director |
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1) Date and description of instrument creating the change |
1. Letter of Hypothecation dated the 29th October, 2004 2. Term Loan Agreement Dated the 29th October, 2004 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 73.800 millions. As a Term Loan |
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3) Short particular of the property charged. If the property acquired
is subject to charge, date of the acquired of the property should be given |
First charge on the block assets of the company estimated at Rs. 101
millions |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
1. Margin :
33.33% on the estimated project cost of Rs. 110.700 millions 2. Interest :
BPLR [Presently 11%] 3. Security :
First charge on the Block Assets of the company estimated of Rs. 101 millions 2. The term loan
is repayable in 23 quarterly installments of Rs. 3.075 millions each with an
initial holiday period of one year from the date of first disbursement 3. The company
should give an undertaking to bring in additional long term funds to the
extent of Rs. 3.400 millions to meet the short-fall in the pre-operative
expenses 4. The term loan
will be released in stages depending on the progress of implementation. The promoters should bring the stipulated
margin as detailed below : Equity capital
of Rs. 10 millions shouldbe brought upfront and it should be used for
acquiring land and development of land Additional
equity of Rs. 10 millions should be brought in which should be used for
advances to supplier of machinery 5. The limit
should be guaranteed by the personal guarantee of the promoter director –
viz. Mr. G. Gautam Reddy 6. A prepayment
charge of 1% will be levied on the pre-paid amount under the term loan |
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5) Name and Address and description of the person entitled to the
charge. |
Indian Overseas
Bank Commercial &
Institutional Credit Branch ‘Auras Corporate
Centre’, Post Bag No. 351, 98 – A, Dr. Radhakrishnan Salai, Mylapore, Chennai
– 600004 |
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6) Date and brief description
of instrument modifying the charge |
Term loan agreement dated 18th July, 2005 Hypothecation of book debts dated 18th July, 2005 Letter of hypothecation dated the 18th July, 2005 |
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7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
The loan has been revised from 73.800 millions to Rs. 183.300 millions
as detailed below :
Particulars of the property charged Term Loan : First charge on the entire block assets of the company
estimated at Rs. 162.600 millions as on 31.03.2006 Cash Credit : First charge on the entire current assets of the company Letter of Credit [I & F] : Documents of Title to goods / accepted
hundles and first charge on current assets of the company |
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Chitrakoot setting up steel plant near Chennai
M. Ramesh
Chennai, Jan. 28
A NEWLY formed company called Chitrakoot Steel and Power Private Limited
is setting up a Rs 450 millions sponge iron-cum-steel project in Gummidipoondi
industrial estate, near Chennai. Work on the project is expected to start in
March.
Mr G. Gautam Reddy, a mechanical engineer who has had industrial training
in the US, has promoted the company. Mr Reddy is the CEO of Chitrakoot Steel.
In the first phase of the project, the company will produce 100 tonnes a
day of sponge iron, which is a substitute for steel scrap. About 60 per cent of
the production would be consumed by an associate company, Viki Industries
(Private) Limited, which produces construction steel at its unit in
Gummidipoondi. The rest of the sponge iron would be sold to various steel units
in Tamil Nadu.
The first phase will consume Rs 150 millions of investment. In the
second phase, Chitrakoot indents to add 100 tpd of sponge iron capacity. This
phase will cost another Rs 50 millions. The third phase will consist of a
5,000-tonnes-a-month steel plant and a 6 MW power plant. This will cost about
Rs 350 millions.
According to Mr Gautam Reddy, it is possible to produce at such low
levels of investment because of the cost reduction measures embedded in the
project. First of all, the plant would use conventional (imported) coal,
instead of the more expensive coking coal. Second, the waste gases from the
furnace would be used in a `waste heat recovery boiler' to produce 4.5 MW of
power. The furnace residue, char, would be fed into a (fluidised bed
combustion) boiler to produce another 1.5 MW of power. The per-unit cost of
power would work out to Rs 1.50.
Thus, the plant would have three key raw materials at comparatively
lower costs — sponge iron, coal and power.
The project is implemented on a debt-equity mix of 2:1. The debt is
funded by Indian Overseas Bank.
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.43.15 |
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UK Pound |
1 |
Rs.85.22 |
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Euro |
1 |
Rs.57.63 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
3 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
2 |
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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 |
|
28 |
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 |
|