MIRA INFORM REPORT

 

 

Report Date :

26.04.2007

 

IDENTIFICATION DETAILS

 

Name :

ZARHAK STEEL LIMITED

 

 

Registered Office :

22 Nariman Bhavan 227 Nariman Point Mumbai, 400021, Maharashtra.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

05.04.1988

 

 

Com. Reg. No.:

11-46875

 

 

CIN No.:

[Company Identification No.]

L27110MH1988PLC046875

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMZ01042G

 

 

PAN No.:

[Permanent Account No.]

AAACZ0336M

 

 

Legal Form :

It is a Closely Held Public Limited Liability Company

 

 

Line of Business :

Importers and traders of Paper and Tin Plate

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 112000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced 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

 

Registered Office :

22 Nariman Bhavan 227 Nariman Point Mumbai, 400021, Maharashtra.

Tel. No.:

91-22-22871293

Fax No.:

91-22-22871296

E-Mail :

zarhak@giasbm01.vsnl.net.in

Area :

1200 Sq. ft

Location :

Rented

 

 

Branches :

·    A.T.S.K. Compound, Big Bazar, Quilon – 691 001

·    7 A/B Brindavan Housing Society, Chandra Vaddo, Fatorda, Margao,   Goa – 403 602

 

 

DIRECTORS

 

Name :

Mr. Hamza Chitalwala

Designation :

Director

 

 

Name :

Mr. Ashraf Chitalwala

Designation :

Director

 

 

Name :

Mr. Zoeb H. Chitalwala

Designation :

Director

 

 

Name :

Mr. Aslam H. Chitalwala

Designation :

Director

 

 

Name :

Mr. Kumel H. Chitalwala

Designation :

Director

 

KEY EXECUTIVES

 

Name :

Mr. Dilip A Mehata

Designation :

Project Manager

Mobile No.:

91-9820866800

 

 

MAJOR SHAREHOLDERS

 

The entire share capital of the company is held by Chitalwala Family.

 

 

BUSINESS DETAILS

 

Line of Business :

Importers and traders of Paper and Tin Plate

 

 

Products :

·    Tin Plates

·    Art paper

 

 

Terms :

 

Purchasing :

Cash or credit

 

PRODUCTION STATUS

 

Particulars

Licensed Capacity

7210.20 Tin Plates

Not applicable

4810.10 Art paper

Not applicable

 

 

GENERAL INFORMATION

 

No. of Employees :

40 people

 

 

Bankers :

·    Oriental Bank of Commerce, Industrial Finance Branch, 181/A, Maker Tower `E’, 18th Floor, Cuffe Parade, Mumbai – 400 005, INDIA

·    The Bombay Mercantile Co-operative Bank Limited, Null Bazar Branch, Mumbai – 400 003, INDIA

·    ICICI bank

 

 

Facilities :

·    Secured loans from ICICI Bank (Against Hypothecations of car)

·    Unsecured Loans from Directors, Shareholders, body Corporate and Others.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

 

Name :

H. H. Bandukwala & Company

Chartered Accountants

Address :

2nd Floor, 6 Topiwala Manzil, 91 Abdul Rehman Street, Mumbai – 400 003, INDIA

 

 

Associates/Subsidiaries :

                          Name                                 Line of business

Ahco Exports

Importers of Tinmill Products

Alibhoy Haiderbhoy Chitalwala

Scrap Trade

Amalgamated Exports

Traders of M. S. Flat Rolled Products

Ebek Enterprise

Exports

Dilip Dal Mills

Warehousing

Novus Engineering Works

Warehousing

Zarhak Exports

Exporters of Tinplate Components & Printed Sheets

Zarhak Enterprise

Traders of Tinmill Products

Zarhak Moulders Private Limited

Manufacture of Rotomoulding Tanks

 

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital:

No. of Shares

Type

Value

Amount

24,500

Equity Shares 

Rs.100/- each

Rs.2.450 millions

 

Issued, Subscribed & Paid-up   Capital:

No. of Shares

Type

Value

Amount

5,992

Equity Shares

 Rs.100/- each

Rs.0.599 millions

8,928

2% Non-Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.0.893 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.599

0.599

0.599

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

27.446

24.275

21.776

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

28.045

24.874

22.375

LOAN FUNDS

 

 

 

1] Secured Loans

0.285

0.496

0.000

2] Unsecured Loans

39.534

33.673

24.421

TOTAL BORROWING

39.819

34.169

24.421

DEFERRED TAX LIABILITIES

0.121

0.063

0.058

 

 

 

 

TOTAL

67.985

59.106

46.854

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6.836

1.460

0.400

Capital work-in-progress

11.439

24.036

0.000

 

 

 

 

INVESTMENT

0.832

0.832

0.863

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Total Current Assets
99.077

94.416

86.767

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

Total Current Liabilities
50.199

61.638

41.176

Net Current Assets
48.878

32.778

45.591

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

67.985

59.106

46.854

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003

Sales Turnover

169.151

124.426

0.000

Other Income

0.719

0.449

94.751

Total Income

169.870

124.875

94.751

 

 

 

 

Profit/(Loss) Before Tax

5.194

4.054

2.384

Provision for Taxation

2.042

1.537

0.829

Profit/(Loss) After Tax

3.152

2.517

1.555

 

 

 

 

Imports :

 

 

 

Total Imports

61.078

(32.019)

0.000

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

9.242

5.273

0.000

 

Financial Expense

2.650

0.863

0.000

 

Salaries, Wages, Bonus, etc.

0.000

0.000

1.164

 

Interest

0.000

0.000

0.028

 

Depreciation & Amortization

0.692

0.211

0.000

 

Other Expenditure

151.587

114.037

0.004

Total Expenditure

164.171

120.384

1.196

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003

PAT / Total Income

(%)
1.85

2.01

1.64

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.07

3.25

0.000

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.90

4.22

2.73

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.18

0.16

0.10

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.78

2.47

1.84

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.97

1.53

2.05

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

The company was incorporated on 5th April, 1988 at Mumbai in Maharashtra having Company Registration Number 11-46875 of 1988 as a Private Limited company. The company became a Deemed Public Limited company w.e.f. 25th September, 1992.

 

BUSINESS

 

The company is engaged in as importers and traders of Paper and Tin Plate. The company is also trading in Import Licences.

 

 

The company imports from the following companies on Cash & Credit terms:

 

·    Intermesa Trading Limited, Ruka Miguel Couto, 105-17 Andar, 20070 Rio-De-Janeiro – RJ, Brazil

 

·    Emesa S.A. Industria E. Comercio De Metais, Rua Miguwl Couto, 105-19 Andar, Rio-De-Janeiro – RJ, Brazil

 

·    Ferrostall Incorporated, 1212 Avenue of the Americas, 19th Floor, New York, NY 10036, U.S.A.

 

·    Possehl Rohren-Und Stahlhandel, Post Box No. 200664, 40103 Dusseldorf, Germany

 

The company’s major activities are routed through its sister concern Ahco Exports.

 

 

The company’s godowns having area of 26,000 sq. ft

 

The company employs 20 persons in office and 20 persons in godown.

 

 

Fixed Assets:

Land & Building (Taloja)

Shed

Residential Flat

Computers

Motor Cars

Two Wheelers

Air Conditioner

Plant & Machinery

Office Equipments

Telephone System

Furniture & Fixture

 

 

                                   


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.40.97

UK Pound

1

Rs.82.18

Euro

1

Rs.56.91

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

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 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

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions