MIRA
INFORM REPORT
|
Report Date : |
02.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ARUNA
ALLOYS STEELS PRIVATE LIMITED |
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Registered Office : |
B-3, Industrial
Estate, K. Pudur, Madurai – 625007, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.03.2004 |
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Com. Reg. No.: |
18-52854 |
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CIN No.: [Company
Identification No.] |
U27101TN2004PTC052854 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIA01145E |
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PAN No.: [Permanent
Account No.] |
AAELA6781D |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
To
carry on the business of manufacturing, buying, selling, importing, exporting
or otherwise dealing in Iron, malleable iron S.G. Iron, steel and non ferrous
articles such as Copper, Brass Gun metals, Bell Metals, Aluminium, Bronze, Antifriction
metals, Zinc, Lead, Tin, Plastics, Malleable, Glass or any other non-ferrous
articles now in vogue or hereafter to be invented / discovered. |
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
250000 |
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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
has takenover the running business of the erstwhile partnership concern Aruna
Alloy Steel. 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 : |
B-3, Industrial
Estate, K. Pudur, Madurai – 625007, Tamilnadu, India |
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E-Mail : |
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Website : |
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Factory : |
Melur
Road, Olaganeri, Madurai – 625107 |
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Tel. No.: |
91-452-2433324 |
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Fax No.: |
91-452-2422580 |
DIRECTORS
|
Name : |
Mr.
SV. Arunachalam |
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Designation : |
Managing
Director and Executive Officer |
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Name : |
Ms.
Lakshmi Arun |
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Designation : |
Director
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KEY EXECUTIVE
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Name : |
Mr. P.
Ravi |
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Designation : |
General
manager |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
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No. of Shares |
|
Mr. SV.
Arunachalam |
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200000 |
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Ms.
Lakshmi Arun |
|
80000 |
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Ms.
Sheelu Palaniappan |
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20000 |
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Ms. A.
Laxmi |
|
40000 |
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Mr. N.
Jambulingam |
|
20000 |
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Ms. J
Valli |
|
20000 |
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Mr. M.
Palaniappan |
|
20000 |
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Total |
|
400000 |
BUSINESS DETAILS
|
Line of Business : |
To
carry on the business of manufacturing, buying, selling, importing, exporting
or otherwise dealing in Iron, malleable iron S.G. Iron, steel and non ferrous
articles such as Copper, Brass Gun metals, Bell Metals, Aluminium, Bronze,
Antifriction metals, Zinc, Lead, Tin, Plastics, Malleable, Glass or any other
non-ferrous articles now in vogue or hereafter to be invented / discovered. |
GENERAL
INFORMATION
|
Bankers : |
Small
Industries Development Bank of India Head
office : SIDBI Tower, 15, Ashok Marg, Lucknow – 226001 Branch
office : 480 Anna alai, Nandanam, Chennai – 600035 Central
Bank of India 6, Thirumukkulam
North Street, Tallakulam, Madurai - 625002 |
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Banking Relations : |
Satisfactory
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Auditors : |
V.
Narayanan and Company Chartered
Accountants No. 23,
Sir C. V. Raman and Company, Alwarpet, Chennai – 600018, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2250000 |
Equity
Shares |
Rs. 10/- each |
Rs. 22.500 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2250000 |
Equity
Shares |
Rs. 10/- each |
Rs. 22.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
22.500 |
22.500 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
39.761 |
37.552 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
62.261 |
60.052 |
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LOAN FUNDS |
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1] Secured Loans |
|
181.925 |
166.549 |
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2] Unsecured Loans |
|
39.236 |
44.630 |
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TOTAL BORROWING |
|
221.161 |
211.179 |
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DEFERRED TAX LIABILITIES |
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4.400 |
0.000 |
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TOTAL |
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287.822 |
271.231 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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152.632 |
128.511 |
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Capital work-in-progress |
|
1.359 |
27.300 |
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INVESTMENT |
|
0.003 |
0.003 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
63.839 |
31.891 |
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Sundry Debtors |
|
187.654 |
143.848 |
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Cash & Bank Balances |
|
4.978 |
6.438 |
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Other Current Assets |
|
8.299 |
5.010 |
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Loans & Advances |
|
20.490 |
20.779 |
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Total Current Assets |
|
285.260 |
207.966 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
151.511 |
92.654 |
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Provisions |
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0.000 |
0.000 |
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Total Current Liabilities |
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151.511 |
92.654 |
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Net Current Assets |
|
133.749 |
115.312 |
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MISCELLANEOUS EXPENSES |
|
0.079 |
0.105 |
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TOTAL |
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287.822 |
271.231 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover [including other
income] |
|
660.533 |
508.444 |
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Profit/(Loss)
Before Tax |
|
10.958 |
10.775 |
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Provision
for Taxation |
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-- |
-- |
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Profit/(Loss)
After Tax |
|
10.958 |
10.775 |
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Export
Value |
|
58.665 |
20.488 |
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Total
Expenditure |
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649.575 |
497.669 |
KEY
RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
|
1.66 |
2.12 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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1.66 |
2.12 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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2.50 |
3.20 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.18 |
0.18 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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5.99 |
5.11 |
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Current
Ratio (Current
Asset/Current Liability) |
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1.88 |
2.24 |
LOCAL AGENCY
FURTHER INFORMATION
To
become vested with and continue the partnership business now being carried on
under the name and style of ‘Aruna Alloy Steel’ including all its assets, movable
and immovable including Land, Building, Plant and Machinery, Electrical
Installations etc. goodwill, trade mark (s), Patents, right quotas, benefits,
titles, interest, approvals, regulations, permits, facilities, concessions,
sanctions, privileges, licenses, debts and all liabilities and obligations
including all credit facilities financial obligations to the Bankers and of the
other parties hereto in the said Partnership business and in connection
therewith.
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Name of the company |
Aruna Alloys Steels Private Limited |
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Presented By |
Mr. SV. Arunachalam, Director |
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1) Date and description of instrument creating the change |
On
04.02.2005 deed of hypothecation executed by the company in favour of Small
Industries Development Bank of India On
04.02.2005 No instrument was executed Mortgage by deposit of title deeds
created by the company in favour of SIDBI.
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2) Amount secured by the charge/amount owing on the securities of charge |
A term
loan of Rs. 48 Millions agreed to be lent and advanced by SIDBI to the
company together with interest, future interest, liquidated damages, costs,
charges, expenses and all other moneys payable by the company to SIDBI in
terms of the loan agreement dated the 04.02.2005 between the company of the
one part and SIDBI of the other part. |
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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 |
All
the plant, machinery, equipments, tools, spares, accessories, miscellaneous
fixed assets and all other assets which have been or proposed to be acquired
under the project / scheme. Whether
installed or not and whether now lying or stored in or about of shall
hereafter from time to time during the continuance of the company be brought
into or upon or be stored or be in or about the company premises and godowns
or wherever else the same may be or be held by any party to the order or
disposition of the company or in the course of whosesoever in the possession of the company and either by
way of substitution or addition. The
whole of the immovable properties of the company situated at S. Nos. S No.
90/1, S. No. 93/10, S. No. 92/12A1, S. No.92/12B, S. No.92/13 & 14, S.
No.92/12C, S. No.93/7A2, S. No.93/5B, S. No.93/7A1A & 7A/B, S. No.93/5A
& 9, S. No.92/11B & 2, S. No.93/2, S. No.92/11A & 12A2 at
Narasingampati Village, Melur Taluk, Madurai District adm. 8 areas 45 cnets
and S. No.130/6A, 138/7A2, 138/7A3, 138/7A4, S. No. 133/2F, 133/3E, 133/4D At
Palavur Village, Radhapuram Taluk, adm 3 acres 6 cents more particularly
described in he schedule together with to together with all building and
structures thereon the plant and machinery attached to earth or permanently
fastened to anything to attached earth.
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4) Gist of the terms and conditions and extent and operation of the charge. |
The
charge operates as a exclusive first charge on all the plant and machinery,
equipments, tools, spares, accessories, all the projects. First
charge on the immovable properties of the company situated at S. Nos. S No.
90/1, S. No. 93/10, S. No. 92/12A1, S. No.92/12B, S. No.92/13 & 14, S.
No.92/12C, S. No.93/7A2, S. No.93/5B, S. No.93/7A1A & 7A/B, S. No.93/5A
& 9, S. No.92/11B & 2, S. No.93/2, S. No.92/11A & 12A2 at
Narasingampati Village, Melur Taluk, Madurai District adm. 8 areas 45 cnets
and S. No.130/6A, 138/7A2, 138/7A3, 138/7A4, S. No. 133/2F, 133/3E, 133/4D At
Palavur Village, Radhapuram Taluk, adm 3 acres 6 cents more particularly
described in he schedule together with to together with all building and
structures thereon the plant and machinery attached to earth or permanently
fastened to anything to attached earth.
To
secured the due repayment and discharge by the company to SIDBI of its SIDBI
of its term loan of Rs. 48 Millions together with interest liquidated
damages, costs, charge, expenses and all other monies payable under the said
letter of sanction letter of intent loan agreement. The
security created under the said deed of hypothecation is to be continuing
security. |
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5) Name and Address and description of the person entitled to the charge. |
Small
Industries Development Bank of India Head
office : SIDBI Tower, 15, Ashok Marg, Lucknow – 226001 Branch
office : 480 Anna alai, Nandanam, Chennai – 600035 |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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Name of the company |
Aruna Alloys Steels Private Limited |
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Presented By |
Aruna Alloys Steels Private Limited and Central Bank of India |
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1) Date and description of instrument creating the change |
30.03.2005
letter of hypothecation book debts loan Agreement
of hypothecation to secure demand cash credit against goods Letter
of hypothecation to secured advance against shipping documents. Agreement
to be signed by parties whose bills are discounted. Letter
of hypothecation Trust
receipt – 2 Nos. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
24.000 Millions Comprising
of
Together
with interest, costs charges and other expenses, which may accrue and or be debited
to the company accounts from time to time. |
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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 |
Creation
of hypothecation by the company in favour of the bank by way of First
charge : Of all
its present and future book debts, outstanding moneys receivable, claims,
bills contracts, security, investments right and assets Of all
its goods such as products, stock in trade and goods, whether finished or
raw or in process of manufacture and
all articles manufactured there from belonging to the company which now are
or hereafter from time to time during this security shall be brought in
stored or be in or about the company. And Of all
its machinery, which are not already charged to other financial institutions
/ bank together with the related accessories, spares parts and tools which
now or hereafter from time to time and continuance of this security hereby created
shall be brought in or about at the premises or godowns of the company at or
any where else including in transit or delivery or discharge or in a any
other premises in the occupation of the company. As a
security for the due payment and discharge by the company to the bank of all
its dues under the various credit facilities with as overall limit of Rs.
24.000 Millions together with interest, cost charge and other expenses which
may accrue and be debited to the company accounts from time to time. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin
: Receivable 40 % LG 10
% Stocks
25 % Rate
of interest : ODBD = BPLR + 2.5 % Present
effective rate being 13.5 % p.a. chargeable at monthly rests. Cover period
for receivable 90 days All other terms and conditions are as per the
agreement stated under column No. 1 herein above. |
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5) Name and Address and description of the person entitled to the charge. |
Central
Bank of India 6,
Thirumukkulam North Street, Tallakulam, Madurai - 625002 |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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Corporate
identity number of the company |
U27101TN2004PTC052854 |
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Name
of the company |
ARUNA
ALLOYS STEELS PRIVATE LIMITED |
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Address
of the registered office or of the principal place of business in India of the company |
Melur
Road, Olaganeri, Madurai – 625107 |
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This
form is for |
Creation
of Charge |
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Type
of charge |
Hypothecation
|
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Particular
of charge holder |
U65990MH1994PTC083147 L
& T Finance Limited L
& T House P O Box
No. 278 Mumbai
– 400001, Maharashtra, India |
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Nature
of instrument creating charge |
Term
Loan cum hypothecation agreement on spectrometer and compressor |
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Date
of instrument Creating the charge |
03.06.2006 |
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Amount
secured by the charge |
Rs.
2.150 millions |
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Brief
of the principal terms an conditions and extent and operation of the charge |
Term
loan of Rs. 2.150 Millions extended for purchase of spectrometer and
compressors repayable in 36 months to L & T finance list of 5.68 %
p.a. |
|
Description
of the property charged indicating whether it is a charged on |
Plant
and Machinery |
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Particulars
of the property charged |
Spectrometer
: No. 1, Melur Road, Olaganeri,
Madurai – 625107 Compressor
No. 3/1, Melur Road, Olaganeri, Madurai – 625107 Spectrometer
machine No. 120303/06 Floor Model Compressor
machine No. PNA/601020 GA 37AELII |
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.44.17 |
|
UK
Pound |
1 |
Rs.86.66 |
|
Euro |
1 |
Rs.57.25 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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 |
|
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 |
|