MIRA
INFORM REPORT
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Report Date : |
20.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SHREE VENKATESHWARA SPONGE AND POWER PRIVATE LIMITED |
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Registered Office : |
Industrial Estate (Expansion), Srikalahaste, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.05.2003 |
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Com. Reg. No.: |
42538 |
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CIN No.: [Company
Identification No.] |
U27109AP2003PTC042538 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Sponge Iron and next month onwards starting
manufacturing of M. S. Inguard. |
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 630000 |
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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 records. 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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Registered Office : |
Industrial Estate (Expansion), Srikalahaste, |
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Tel. No.: |
91-8578-287619 / 18 (Telefax), |
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E-Mail: |
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Area : |
100 Acres |
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Location : |
Owned |
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Factory 1 : |
Plot No.90/1, Ward 25, Prashant Colony |
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Tel. No.: |
91-8578-287619 |
DIRECTORS
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Name : |
Mr. Pradeep Bhardwaj |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
45 years |
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Qualification : |
Post Graduate |
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Experience : |
15 years |
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Name : |
Asha Devi Beltharia |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
41 years |
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Qualification : |
Graduate |
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Experience : |
4 years - 5 years |
KEY EXECUTIVES
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Name : |
Mr. Anand Rao |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Srinivas |
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Designation : |
Finance and Accounts Executive |
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Tel. No.: |
91-877-2223858 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Pradeep Bhardwaj |
250000 |
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Mrs. Asha Devi |
250000 |
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Kasturilal Harilal Private Limited |
100000 |
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Transeem Commercial Private Limited |
60000 |
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Ushodaya Marketing Private Limited |
28000 |
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Ashadeep Acqaculture Private Limited |
320000 |
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Ideal Goodsand Services Private Limited |
4000 |
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Maa Chhinna Mastika and Power Private Limited |
20000 |
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Aakansha Electronics Private Limited |
1058000 |
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Mr. M. Anand Rao |
10000 |
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Mrs. M. Padmini |
10000 |
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Mr. M. Anand Rao (HUF) |
10000 |
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Mr. Ramakrishna |
5000 |
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Mrs. Usha Rani |
5000 |
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Mr. N C Mitra |
10000 |
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Mrs. Anju Mitra |
10000 |
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Category |
Percentage
of Holding |
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Bodies Corporate |
74.00 |
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Directors or relatives of directors |
23.00 |
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Other top fifty (50) shareholders (Other than listed above) |
3.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Sponge Iron and next month onwards starting
manufacturing of M. S. Inguard. |
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Products : |
Sponge Iron – 50000 Tpa, |
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Terms : |
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Selling : |
L/C, Cheque /Credit (15 days) |
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Purchasing : |
Cheque / Credit (30 days) |
GENERAL INFORMATION
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No. of Employees : |
Around 250 |
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Bankers : |
v Andhra Bank Tirupati Main Branch, v
Laxmi
General Finance Limited v
State Bank of |
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Facilities: |
Cash Credit and Term Loan |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sunil and Sanjay Chartered Accountants |
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Address : |
2016, 2017, Emerald House, |
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Tel No.: |
91-40-39101010 |
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Associates/Subsidiaries : |
MACHINNAMASTIKA Group (2 Units) Address: Ranigad, West Bengal, Line of Business: Manufacturers of Sponge Iron and Power Plant |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10.00 each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3588100 |
Equity Shares |
Rs.10.00
each |
Rs.35.881
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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35.881 |
21.500 |
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2] Share Application Money |
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37.914 |
73.415 |
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3] Reserves & Surplus |
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83.903 |
36.584 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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157.698 |
131.499 |
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LOAN FUNDS |
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1] Secured Loans |
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127.178 |
135.479 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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127.178 |
135.479 |
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DEFERRED TAX LIABILITIES |
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9.672 |
4.205 |
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LONG TERM CREDITORS |
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71.093 |
0.000 |
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TOTAL |
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365.640 |
271.181 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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285.840 |
230.447 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.244 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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30.703 |
18.624 |
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Sundry Debtors |
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22.279 |
16.066 |
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Cash & Bank Balances |
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7.440 |
4.394 |
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Other Current Assets |
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15.264 |
8.701 |
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Loans & Advances |
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17.897 |
7.616 |
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Total
Current Assets |
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93.583 |
55.401 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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14.279 |
15.008 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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14.279 |
15.008 |
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Net Current Assets |
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79.305 |
40.394 |
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MISCELLANEOUS EXPENSES |
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0.252 |
0.340 |
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TOTAL |
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365.640 |
271.181 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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306.663 |
218.113 |
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Other Income |
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1.731 |
0.317 |
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Total Income |
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308.294 |
218.430 |
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CHANGE IN STOCK |
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3.747 |
2.600 |
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Profit/(Loss) Before Tax |
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9.755 |
17.512 |
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Provision for Taxation |
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5.578 |
5.679 |
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Profit/(Loss) After Tax |
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4.177 |
11.833 |
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Export Value |
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29.156 |
0.000 |
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Expenditures: |
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Total Expenses |
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264.759 |
178.797 |
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Depreciation |
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37.627 |
24.721 |
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Total Expenditures |
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302.386 |
203.518 |
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Expected Sales (2007-08): Rs. 700.000 millions – Rs. 800.000 millions
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.35 |
5.42 |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.18 |
8.03 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.57 |
6.13 |
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Return on Investment (ROI) (PBT/Networth) |
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0.06 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.90 |
1.44 |
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Current Ratio (Current Asset/Current Liability) |
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6.55 |
3.69 |
LOCAL AGENCY FURTHER INFORMATION
Form 8
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Name of the company |
SHREE VENKATESHWARA SPONGE AND POWER PRIVATE LIMITED |
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Presented By |
SHREE VENKATESHWARA SPONGE AND POWER PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
The Hypothecation
Agreement dated 16th day of February 2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.340 million |
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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 |
On the security
of 2005 Model TATA 207 Mini Lorry Engine Number :
497SP27AUZ805382 Chassis
Number: 374450AUZ903647 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rs. 0.364 million
is payable in 23 monthly installments as under: 1 – Rs. 0.016
million (Rs. 15,870.00) 2 – Rs. 0.016
million (Rs. 15,815.00) |
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5) Name and Address and description of the person entitled to the charge. |
Laxmi General
Finance Limited |
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6) Date and brief description of instrument modifying the charge |
Nil |
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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. |
Nil |
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Name of the company |
SHREE VENKATESHWARA SPONGE AND POWER PRIVATE LIMITED |
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Presented By |
Shri. Pradeep
Bhardwaj (Director) |
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1) Date and description of instrument creating the change |
Composite
Agreement dated 24.02.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. OCC Rs. 17.500
millions |
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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 |
Hypothecation of
Stocks of raw material, semi-finished goods, finished goods and book debts of
the company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Hypothecation on
first charge basis on current assets of the company and amounts due for payment
together with interest, additional interest, liquidated damages, etc,
repayable to lenders |
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5) Name and Address and description of the person entitled to the charge. |
Andhra Bank Main Branch, |
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6) Date and brief description of instrument modifying the charge |
Composite
Agreement dated 28.06.2005 |
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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 existing OCC
limits of Rs. 17.500 millions were renewed with enhancement. The enhanced
working capital facilities are as follows
The said limits
are secured by OCC limits:
Hypothecation of stock in trade and book debts. LC/FLC:
Hypothecation of coal received under LCs Rate of interest
for OCC facility is 14% p.a. Margins: 25% on
stock in trade, 50% on book debts |
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Corporate
identity number (CIN) Foreign company registration number |
U27109AP2003PTC042538 |
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Name of the
Company |
SHREE VENKATESHWARA SPONGE AND POWER PRIVATE LIMITED |
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Address |
2002, 2nd
Floor, Emerald House, |
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This form is for |
Modification of
Charge |
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Type of Charge |
A Charge on: v
Book
Debts v
Movable
Property (not being pledge) |
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Particulars of
the charge holder |
Andhra Bank Main Branch, E-Mail: bmtrp559@andhrabank.co.in |
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Nature or
description of the instrument(s) creating or modifying the charge |
1. Demanded Promissory Note, dated 28.12.2006 2. Composite agreement dated 28.12.2006 3. RF 289 A dated 28.12.2006 for Bill
Purchasing 4. RF – 145A counter guarantee, dated
28.12.2006 5. General Form of Guarantee RF 291 dated
28.12.2006 6. RF 255 B deposit of title deeds dated28.12.2006 |
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Date of
Instrument |
28.12.2006 |
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Amount secured by
the charge |
Rs. 155.000
millions |
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Brief particulars
of principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest
(b) Terms of
repayment: Running account
facility subject to review / renewal every year. (c) Margin
50% on book
debts not older than 90 Days.
(d) Extent and operation
of the charge
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short particulars
of property charged |
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Particular of the
present modification |
a) sub limit of Rs. 8.750 millions against
CBP/DBP/DUBD b) Sub limit of Rs. 31.250 millions
against Book Debts not older than 90 days
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.57 |
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1 |
Rs.82.14 |
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Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
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45 |
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 |
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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 |
|