MIRA INFORM REPORT

 

 

Report Date :

14.12.2007

 

IDENTIFICATION DETAILS

 

Name :

MANGALAM ALLOYS LIMITED

 

 

Registered Office :

Plot No. 3124 - 3126, G.I.D.C., Phase III, Chhatral, Gandhinagar – 382729, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

01.08.1988

 

 

Com. Reg. No.:

11051

 

 

CIN No.:

[Company Identification No.]

U27109GJ1988PLC011051

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMM01070G

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturer, Exporter and supplier of steel Rounds, Polished Rounds, Squares, Hexagons, Angles, SS Utensil etc.,

 

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 :

USD144096

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company. Companys last available financials  from all the possible sources are enclosed herewith. Trade relation are fair. Business is active. Payments are reported as usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office / Factory :

Plot No. 3124 - 3126, G.I.D.C., Phase III, Chhatral, Gandhinagar – 382729, Gujarat

Tel. No.:

91-2764-232064 / 232025

Fax No.:

91-2764-234361

E-Mail :

mangalam@ucmindia.com

 

DIRECTORS

 

Name :

Mr. Utianchand Chandannal Mehta

Designation :

Director

Address :

3, Chandramaul Eshwar Farm, Mr. mohamadpura Bus Stop, Ambali Opal Road, Ahmedabaaad, Gujarat

Date of Birth/Age :

20.11.1953

Date of Appointment :

01.08.1988

 

 

Name :

Mr. Devichand Jhaverchand Jain

Designation :

Director

Address :

A- 32, Om Towers, Shahibaug, Ahmedabad, Gujarat

Date of Birth/Age :

20.04.1949

Date of Appointment :

01.08.1988

 

 

Name :

Mr. Devilal Bherulal Rathi

Designation :

Director

Address :

0-13, Satelite Tower, Premchand Nagar, Satelite, Ahmedabad, Gujarat

Date of Birth/Age :

14.12.1965

Date of Appointment :

28.02.2000

 

 

Name :

Mr. Nareshbhai Vishandas Changrani

Designation :

Director

Address :

9/ A, Happy Home Apartment, Opp. Priti Gunj Society, Maninagar (E), Ahmedabad, Gujarat

Date of Birth/Age :

26.11.1964

Date of Appointment :

02.12.2002

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

 

Udhyam Merchandise Private Limited

75000

 

Sridhar Preservers Private Limted

125000

 

Umra Securities Limited

50000

 

Lokeshkumar Bansilal Jain

5000

 

Total

255000

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and supplier of steel Rounds, Polished Rounds, Squares, Hexagons, Angles, SS Utensil etc.,

 

 

Products :

·          Stainless Steel Sheets

·          Stainless Steel Circles/ Squares/ Hexagons/ Angles

·          Stainless Steel Utensils

·          Stainless Steel Flats

·          Stainless Steel Bright Bars

·          Stainless Steel Rounds

·          Polished Rounds

·          Stainless Steel Blanks

·          Stainless Steel Black Bars

·          Stainless Steel Ingots

·          Stainless Steel Grain Containers

·          Stainless Steel Storage Tanks.

 

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

M.T.

No Licence is required

12.800

14.771

 

 

 

 

 

 

GENERAL INFORMATION

 

Suppliers :
  • Avantika Metal Udyog Private Limtied
  • Gopal Iron and Steel Company limited
  • Sanjay Casting
  • Interklin Ceramics Limited
  • Electro Power Engineers
  • Inox Air Products Limited
  • Shree Navkar Metals Private Limited
  • Universal Metal Company Limited

 

 

No. of Employees :

Around 200

 

 

Bankers :
  • The Greater Bombay Co-operative Bank Limited
  • Bhavnagar Welfare Co- Operative Bank Limited

 

 

Facilities :

Secured Loan

 

 

 

A) Term Loan

 

B) Working Capital

Facilities from bank in (A) & (B) are secured by way of hypothecation of stocks, bookdebts movable and further secured by charge over land, building, plant and machineries, residential flat and bank fixed deposit receipts and further guaranted by two of the directors of the company.

 

 

 

Unsecured Loan

From Gujarat State Finance Corporation

 

From Directors

From Bodies Corporate

Fixed Deposits

Rs. in Millions (31.03.2005)

 

23.624

 

23.448

 

 

 

 

 

 

_____________

47.072

 

 

 

 

 

 

1.364

3.580

3.101

 

8.046

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Kishan M. Mehta And Company

Chartered Accountant

Address :

Ahmedabad

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000000

Equity Share

Rs.10/- Each

Rs.70.000 millions

 

Issued,& Subscribed :

No. of Shares

Type

Value

Amount

 

 

 

 

2759000

Equity Share

Rs.10/- Each

Rs.27.590 millions

 

 

Called &  Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2549000

Equity Share

Rs.10/- Each

Rs.25.490 millions

210000

Equity Share

Rs.8/- Each

Rs.1.680 millions

 

Less : Calls in Arrear

 

Rs.1.400 millions

 

 

Total

Rs.25.770 millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

25.770

24.090

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

10.254

8.534

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

36.024

32.624

LOAN FUNDS

 

 

 

1] Secured Loans

 

47.072

38.862

2] Unsecured Loans

 

8.046

9.268

Deferred Payment Credit

 

0.490

0.431

TOTAL BORROWING

 

55.608

48.561

DEFERRED TAX LIABILITIES

 

4.669

3.044

 

 

 

 

TOTAL

 

96.301

84.229

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

52.491

27.932

Capital work-in-progress

 

3.915

12.033

 

 

 

 

INVESTMENT

 

2.900

2.900

DEFERREX TAX ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

43.403

29.606

 

Sundry Debtors
 

38.735

30.954

 

Cash & Bank Balances
 

2.579

2.306

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

16.231

17.039

Total Current Assets
 

100.948

79.905

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

36.995

38.554

 

Provisions
 

0.000

0.000

Total Current Liabilities
 

63.953

38.554

Net Current Assets
 

36.995

41.352

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.012

 

 

 

 

TOTAL

 

96.301

84.229

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Sales Turnover

 

431.602

265.665

Other Income

 

1.345

0.459

Total Income

 

432.947

266.124

 

 

 

 

Profit/(Loss) Before Tax

 

3.175

1.520

Provision for Taxation

 

1.550

0.488

Profit/(Loss) After Tax

 

1.625

1.032

 

 

 

 

 

 

 

 

Imports Value

 

39.861

8.561

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

 

282.022

167.164

 

Manufacturing Expenses

 

112.474

85.404

 

Administrative Expenses

 

11.072

6.270

 

Purchases made for re-sale

 

6.731

3.216

 

Salaries, Wages, Bonus, etc.

 

7.752

5.118

 

Depreciation & Amortization

 

4.074

2.251

 

Other Expenditure

 

6.055

3.531

Total Expenditure

 

430.18

272.954

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2005

31.03.2004

PAT / Total Income

(%)
 

3.78

0.38

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

0.73

0.57

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

2.06

1.40

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.08

0.04

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

3.31

2.67

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.72

2.07

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets

 

Form - 8

 

Corporate identity number (CIN) Foreign company registration number

U27109GJ1988PLC011051

 

Name of the Company

MANGALAM ALLOYS LIMITED

 

Address

Plot No. 3124 - 3126, G.I.D.C., Phase III, Chhatral, Gandhinagar – 382729, Gujarat

 

This form is for

Modification of Charge

Type of Charge

Immovable Property

Book Debts

Movable Property (Not being pledge)

Others

Particulars of the charge holder 

State Bank of Saurashtra

Naroda Industrial Estate Branch, Naroda, Ahmedabad- 382330, Gujarat

Email : ahm.nds@sbs.co.in

Nature of Description of the Instrument creating or modifying the charge

Confirmatory Letter for deposit of the title deeds with the intention of creating an equitable mortagage Dt. 30.03.2007

Supplement agreement of hypothecation of goods and assets for Over all limit Dt. 30.03.2007

Supplementary agreement of loan for increase in over all limit Dt. 30.03.2007

Amount secured by the charge

Rs.149.000 Millions

Brief particular of the principal terms and conditions and extend and operation of the charge

1)       Rate of Interest : Rate of interest on term loan is 10 %, 9.5 % On Cash credit facility and corporate loan for working capital facilities 1.50 below BPLR

2)       Terms of Repayment : Repayment of term loan is 84 monthly installment with moratorium period of 12 months and corporate loan for working capital facilities 60 equil monthly installment starting from 30.04.2007

3)       Margin : Margin is to 33 % of term loan and cash credit facility on stock 25 % book debts 50 % and L/C and bank guarantee 15 % and corporate loan for working capital with no margin

4)       Extent and Operation of the Charge : The Existing facility of Rs. 119.000 millions has been Increased to Rs. 149.000 millions with following facilities  A) Cash credit / OD BD/ UBD MTL NL and foreign L/C Rs. 65.000 Millions, Term Loan Rs. 540.000 Millions and corporate loan for working capital of Rs. 30.000 millions

Short particulars of the property charged

The facility is secured against all present and future goods, book debts, movable and other assets including stock of raw materials, finished goods and stock-in process, handies and bills receivables and the facility is further secured by deposits of title deeds of property more particularly described in schedule -A

Particular of the present modification 

The exiting Facility of cash credit / TL/ LC of Rs. 119.000 Millions has been increased to Rs.149.000 Millions with following facilities :

A)      C.C ODBD/ MTL / Inland/ Foreign L/C  Rs.65.000 Millions

B)      Term Loan                           Rs.54.000 Millions

C)      Corporate Loan for Working Rs.30.000 Millions

 

 

 

 

Web Details Attached

 

Profile

 

The Company  is the flagship company of UCM Group of Companies and incorporated as a Private Limited Company in 1988 and subsequently registered as a Public Limited Company in 1995.

Subject is manufacturing Stainless Steel Ingots subsequently Rolling to Stainless Steel Rounds and Flats Followed by heat treatment and Bright Bars. The unit has melting capacity of 14000 MTA, Rolling capacity of 36000 MTA & Bright Bar manufacturing capacity of 3000 MTA. Annual turnover through these products is Rs. 500 million.

The manufacturing technology involves melting of Stainless Steel Scraps, M.S. Scraps with additions of low carbon Ferro Alloys, Fluxes, Synthetic Slag and additions required for secondary refining. Subject believes in Total Quality Management System and cleaner product, cleaner environment & is proved to have environment friendly system, with zero discharge of effluents.

Subject is one of the few companies which has emerged as a winner in the extremely turbulent stainless steel market in the past 15 years and the company contributes its strengths in to different areas. The company has a consistent track record of profitability since its inception.

 

A decade of liberalization has redefined the business parameters. Subject Alloys Limited, the flagship company of the UCM Group, has harnessed these winds of change. The company, incorporated as a Private Limited Company in 1988 got subsequently registered as a Public Limited Company in 1995. Being set up by the visionary Mr. Uttam C. Mehta, The company has grown from its humble beginning to the present multi-locational and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. They are a leading manufacturer, exporter and supplier of Steel Rounds, Polished Rounds, Squares, Hexagons, Angles, SS Sheets, Blanks and Circles, SS Utensils, Sinks and Grain Drums, etc.

In the world of business, Subject Alloys Limited is a celebrity. The group has been technology driven and has a broad product portfolio. Yet, the focus of The company has always remained steel related products. They aim to be a global player. In pursuance of these objectives, they are committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service. The company has secured a distinct place in the national as well as international market. They export out products regularly to Vietnam, Singapore, Dubai, Pakistan, Kuwait, Indonesia, Malaysia, Pakistan and Bangladesh. Mehta Alloys Limited, Universal Metal Company Limited and Unison Metals Limited are Their sister concerns, dealing in a similar range of products.

 

 

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 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.39.35

UK Pound

1

Rs.80.36

Euro

1

Rs.57.62

 

 

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

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

 

48

 

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.

 

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