MIRA
INFORM REPORT
|
Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
AMBICA STEEL LIMITED |
|
|
|
|
Registered Office : |
C-54/1, Mezzanie Floor,
Wazirpur Industrial Area, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
16.07.1970 |
|
|
|
|
Com. Reg. No.: |
55-5345 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27109DL1970PLC005345 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELA13737D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACA9942Q |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of steel products, Iron, steel, steel metal products, tools, electrical and mechanical machines, sugar, cotton, oil seeds machinery and fittings. |
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 1600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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
|
Registered Office : |
C-54/1, Mezzanie Floor,
Wazirpur Industrial Area, |
|
Tel. No.: |
91-11-27376851 to 6858 |
|
Fax No.: |
91-11-27373643, 27376859 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
51/2, Site IV, UPSIDC
Industrial Area, Sahibabad 201010, District |
|
Tel. No.: |
91-120-2897621 to 25 |
|
Fax No.: |
91-120-2897620 |
DIRECTORS
|
Name : |
Mr. Mahender Pal Gupta |
|
Designation : |
Director |
|
Address : |
B-29, Phase – I, Ashok Vihar, |
|
Date of Appointment : |
19.10.1999 |
|
|
|
|
Name : |
Mr. Chander Prakash Gupta |
|
Designation : |
Managing Director |
|
Address : |
9, |
|
Date of Appointment : |
19.10.1999 |
|
|
|
|
Name : |
Mr. Ajay Singhal |
|
Designation : |
Director |
|
Address : |
A-104, Pocket –B, 1st Floor, Kalkaji Extension, |
|
Date of Appointment : |
15.05.2000 |
|
|
|
|
Name : |
Mr. Mahesh Gupta |
|
Designation : |
Director |
|
Address : |
Flat No. 603 D – II, Omaxe Royal, Residency, Sec. – 44, Noida –
201303, |
|
Date of Appointment : |
02.05.1995 |
|
|
|
|
Name : |
Mr. Anand Gupta |
|
Designation : |
Commercial Director |
KEY EXECUTIVES
|
Name : |
Mr. Avneet Kumar |
|
Designation : |
Company Secretary |
|
Address : |
10/848-A, Raj Nagar, |
|
Date of Appointment : |
08.07.2004 |
|
Date of Ceasing : |
08.10.2004 |
|
|
|
|
Address : |
Ms. Renuka Sharma |
|
Date of Birth/Age : |
Company Secretary |
|
Qualification : |
WZ-144, Pitampura, |
|
Date of Appointment : |
01.08.2005 |
|
|
|
|
Name : |
Mr. Vivek Sachdeva |
|
Designation : |
Company Secretary |
|
Address : |
C-3/93, Sector 11, Rohini, |
|
Date of Birth/Age : |
19.01.1979 |
|
Date of Appointment : |
12.07.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Chander Prakash |
|
30890 |
|
Mahender Pal |
|
64420 |
|
Seema Gupta |
|
20700 |
|
Swati Gupta |
|
39860 |
|
Century Credits Limited |
|
106500 |
|
Mahesh Gupta |
|
25000 |
|
Anand Swarup – HUF |
|
20820 |
|
Uphar Steels Limited |
|
60000 |
|
Futreplan Industrial Private Limited |
|
45000 |
|
Delhi Share Shappe Limited |
|
13500 |
|
Mahanivas India Limited |
|
25000 |
|
Usha Gupta |
|
23200 |
|
Besty Growth Finance Limited |
|
12500 |
|
Hillridge Investments Limited |
|
12500 |
|
Stellar Investment Limited |
|
21500 |
|
|
|
|
|
Equity Share
Breakup |
|
|
|
Category |
|
Percentage of
Holding |
|
Bodies corporate |
|
56.05 |
|
Directors of relatives of directors |
|
41.73 |
|
Other top fifty shareholders |
|
2.22 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of steel products, Iron, steel, steel metal products, tools, electrical and mechanical machines, sugar, cotton, oil seeds machinery and fittings. |
||||||
|
|
|
||||||
|
Products : |
|
||||||
|
|
|
||||||
|
Imports : |
|
||||||
|
Countries : |
|
||||||
|
|
|
||||||
|
Terms : |
|
||||||
|
Selling : |
Cash and Credit (60 days) |
||||||
|
|
|
||||||
|
Purchasing : |
L/C and Credit (Sight) |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
|
Steel Products, Steel |
M. T. |
|
42000.000 |
GENERAL INFORMATION
|
Customers : |
Wholesalers and End Users |
|
|
|
|
No. of Employees : |
Total 471 : in office 59, in factory 400 and 12 in branch |
|
|
|
|
Bankers : |
Oriental Bank of Commerce A-Block, Rajiv Chowk, Bank of B-29, |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Rajindera K. Goel and Company Chartered Accountant |
|
Address : |
J 288, Ground Floor, Saket, |
|
Tel. No.: |
91-11-26531642 |
|
|
|
|
Associates/Subsidiaries : |
v
Kamal Dal Mills Private Limited, v
Rupayan Fianance Private limited, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,200,000 |
Equity Shares |
Rs. 100/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,163,580 |
Equity Shares |
Rs. 100/- each |
Rs. 116.358
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
116.358 |
116.358 |
97.878 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
293.072 |
270.636 |
143.382 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
409.430 |
386.994 |
241.260 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
341.552 |
222.348 |
66.387 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
34.500 |
|
|
TOTAL BORROWING |
341.552 |
222.348 |
100.887 |
|
|
DEFERRED TAX LIABILITIES |
19.533 |
12.299 |
9.496 |
|
|
|
|
|
|
|
|
TOTAL |
770.515 |
621.641 |
351.643 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
310.040 |
163.123 |
121.782 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
393.280
|
475.636 |
228.919 |
|
|
Sundry Debtors |
205.818
|
162.206 |
120.159 |
|
|
Cash & Bank Balances |
14.231
|
20.093 |
20.504 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
90.497
|
69.911 |
38.034 |
|
Total
Current Assets |
703.826
|
727.846 |
407.616 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
236.959
|
259.434 |
173.116 |
|
|
Provisions |
6.392
|
9.894 |
4.639 |
|
Total
Current Liabilities |
243.351
|
269.328 |
177.755 |
|
|
Net Current Assets |
460.475
|
458.518 |
229.861 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
770.515 |
621.641 |
351.643 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
2324.371 |
2168.865 |
1129.079 |
|
|
Other Income |
8.836 |
8.955 |
49.932 |
|
|
Total Income |
2333.207 |
2177.820 |
1179.011 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
34.642 |
38.256 |
14.774 |
|
|
Provision for Taxation |
12.204 |
11.353 |
10.601 |
|
|
Profit/(Loss) After Tax |
22.438 |
26.903 |
4.173 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
NA |
10.966 |
1.554 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
670.475 |
243.822 |
|
|
Trading Goods |
NA |
33.367 |
0.000 |
|
Total Imports |
NA |
703.842 |
243.822 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
228.705 |
|
|
Selling and Distribution Expenses |
0.000 |
0.000 |
15.304 |
|
|
Administrative Expenses |
0.000 |
0.000 |
9.386 |
|
|
Raw Material Consumed |
1778.826 |
1790.003 |
890.699 |
|
|
Purchases made for re-sale |
8.538 |
38.142 |
0.000 |
|
|
Consumption of stores and spares parts |
169.160 |
174.518 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
26.316 |
[160.310] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
12.556 |
10.324 |
0.000 |
|
|
Managerial Remuneration |
3.780 |
1.992 |
0.000 |
|
|
Payment to Auditors |
0.035 |
0.025 |
0.000 |
|
|
Interest |
31.472 |
17.691 |
11.635 |
|
|
Insurance Expenses |
1.565 |
0.983 |
0.000 |
|
|
Power & Fuel |
127.050 |
124.982 |
0.000 |
|
|
Depreciation & Amortization |
11.891 |
9.210 |
7.266 |
|
|
Other Expenditure |
127.376 |
132.004 |
1.242 |
|
Total Expenditure |
2298.565 |
2139.564 |
1164.237 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
0.96
|
1.24 |
0.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.49
|
1.76 |
1.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.42
|
4.29 |
2.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.10 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.43
|
1.27 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.89
|
2.70 |
2.29 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land and Ware House
- Plan and Lab
- Pollution Control Equipments
- Building
- Electric Installation
- Office Equipment
- Truck
- Furniture and Fixture
- Tools
- Scooter
- Car
- Computer
- Cycle
The company is in trader terms with :
v Vivek Merchandise Limited
v Upphar Alloys Private Limited
Bankers Charges
Report as per Registry
|
Name of the company |
AMBICA STEEL
LIMITED |
|
Presented By |
Manager,
Oriental Bank of Commerce, A-Block, Rajiv Chowk, |
|
1) Date and description of instrument creating the change |
Memorandum of
deposit of Title Deed dated 03.01.2006 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 597.600
Millions |
|
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 |
Industrial Plot
No. 32 at |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The above
property is mortgage to collaterally secure the limits sanctioned in the
company from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce A-Block, Rajiv Chowk, |
|
6) Date and brief description of instrument modifying the charge |
---------------------NA---------------- |
|
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. |
----------------------NA--------------- |
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U27109DL1970PLC005345 |
|
Name of the
company |
AMBICA STEEL LIMITED |
|
Address of the
registered office or of the principal place of business in |
C-54/1, Mezzanie Floor, Wazirpur Industrial Area, |
|
Type of charge |
|
|
Particular of
charge holder |
Bank of B-29, |
|
Nature of
description of the instrument creating or modifying the charge |
Composite deed of hypothecation for all
facilities and latter ceding pari- passu charge. |
|
Date of instrument
Creating the charge |
26.10.2006 |
|
Amount secured by
the charge |
Rs. 341.900
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per sanction
terms. Terms of repayment
As per sanction
terms. Margin As per sanction
terms. Extent operation
of the charge The first
pari-passu charge on entire current and fixed assets of the company to secure
following credit limits sanctioned by the bank to the company. Fund based
cash credit against hypothecation of stocks of Rs. 125 Millions sub limit
PCDL/WCDL of, PC/PCFC/FDBP/FIBP of Based Import / Inland latter of credit of
Rs. 112.500 Millions term loan – I, of Rs. 50.000 Millions and Term Loan of
Rs. 54.400 Millions aggregating limit of Rs. 341.900 Millions |
|
Short particulars
of the property charged |
First pari-passu
charge on entire current assent of the company and first pari-passu charge on
entire fixed assets of the company. |
AS PER WEBSITE
Manufacturing Prowess
They have towering capabilities for manufacturing an
assortment of Austenitic and Martensitic grades conforming to varied
international standards. They have also shaped an enviable repute for
furnishing Titanium Grades, High Nickel Grades and Low Carbon Grades. Though
they started late, they are brilliantly catching up with the exports of
Billets,
These materials are widely used in various industrial
sectors like Forging Industries, Bright Bar and Wire/Wire Rod Industries,
Kitchenware and Fabrication industries. On an average, they produce about
80,000 M. tons of steel every year.
Ever since, they started their tryst with production in
1970, they have managed to carve a niche for their selves in the field of steel
and their clientele boasts of the Who's Who of the industry.
Located in Sahibabad (Distt.
They manufacture Billets, Ingots, Round Bars and Flats
encompassing various types of Forged and Rolled products in Stainless Steel and
Alloy Steel that you can mould to give life to the products.
System Integration
To further enhance their efficiency, they plan to integrate
marketing, sales and distribution, research and development, purchase and
administration, all under one roof.
This move will enable a single window outlet, which will
result in prompt implementation of procedures and will lead to increased
efficiency and larger profits.
The mark of unmatched quality
built with passion –
BILLETS & BLOOMS
INGOTS
BRIGHT BARS (COLD FINISHED)
HOT ROLLED BARS
FORGED ROUNDS & SQUARES
FLATS (For Domestic Market only)
Pressure Equipment Directive
Certification
The Pressure Equipment Directive (97/23/EC) was adopted by
the European Parliament and the European Council in May 1997. It has initially
come into force on 29 November 1999. From that date until 28 May 2002
manufacturers have a choice between applying the pressure equipment directive
or continuing with the application of the existing national legislation. From
29 May 2002 the pressure equipment directive will be obligatory throughout the
European Union.
AD 2000-Merkblatt W O
They are also certified and approved as manufacturer of
materials according to AD-Merkblatt W O/TRD 100.
Details of the Certifications
ISO
9001-2000
In order to maintain its internationally recognized quality
management system, Ambica Steels acquired the ISO 9002 certification in October
2001. Later, it changed its quality certification to ISO 9001:2000 in March,
2003. Even today Ambica Steels remains true to its promise of maintaining and
improving its quality management system in accordance with new standards.
ISO
14001
Recently, Ambica Steels has also obtained the ISO 14001
certification. This certification confirms that Ambica’s environmental
management system is in accordance to international standards in terms of its
appropriateness, operational efficiency and implementation
OHSAS
18001 : 1999
Recently, they have also obtained the OHSAS 18001 : 1999
certificate by the TÜV CERT Certification Body of TÜV NORD CERT GmbH. This
certificate confirms that Ambica Steels has established and applies the
required Occupational Health and Safety Management Systems in accordance with
TÜV CERT Procedures.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.55 |
|
|
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.55.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
49 |
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 |
|