MIRA
INFORM REPORT
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Report Date : |
20.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
SOVA
ISPAT ALLOYS LIMITED |
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Registered Office : |
Room
No. 59 Martin Burn House, 5th Floor, 1, R. N. Mukherjee Road,
Kolkata - 700 012, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.08.1998 |
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Com. Reg. No.: |
21-58051 |
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CIN No.: [Company
Identification No.] |
U99999WB1998PTC058051 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS14232B |
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PAN No.: [Permanent
Account No.] |
AAECS8348C |
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Legal Form : |
A
Closely held public limited liability company. |
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Line of Business : |
Manufacturers
and Exporters of Silico Manganese and Ferro Manganese. |
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
850000 |
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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.
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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Corporate
Office / Registered
Office : |
Room
No. 59 Martin Burn House, 5th Floor, 1, R. N. Mukherjee Road,
Kolkata - 700 012, West Bengal, India |
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Tel.
No.: |
91-33-2242-8217 |
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Fax
No.: |
91-33-2242-8432 |
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E-Mail
: |
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Website : |
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Head
Office : |
Hahnemann
Sarani, Angadpur, Durgapur - 713215, West Bengal, India |
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Tel.
No.: |
91-343
- 2591207 |
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Fax
No.: |
91-343
- 2591207 |
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E-Mail
: |
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Factory
1 : |
Angadpur,
Durgapur, District - Burdwan, Pin - 713 215, West Bengal, India |
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Tel.
No.: |
91-343-259-0689
/ 680 / 802 |
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Fax
No.: |
91-343-259-0679
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E-Mail
: |
DIRECTORS
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Name : |
Ms.
Sabyasachi Mukherjee |
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Designation : |
Director
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
22.06.1983 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Ms.
Lila Mukherjee |
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Designation : |
Director
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
22.06.1955 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Ms.
Sucheta Mukherjee |
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Designation : |
Director
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Address : |
Amaravati,
West Barasat – 700126, West Bengal, India |
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Date of Birth/Age : |
17.09.1962 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr.
Salil Mukherjee |
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Designation : |
Managing
Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
12.04.1950 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr.
Samir Mukherjee |
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Designation : |
Whole
Time Director |
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Address : |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date of Birth/Age : |
05.01.1958 |
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Date of Appointment : |
01.04.2004 |
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Name
: |
Subrata
Mukherjee |
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Designation
: |
Whole
Time Director |
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Address
: |
Nabapally,
Benachity, Durgapur – 713213, West Bengal, India |
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Date
of Birth/Age : |
15.03.1960 |
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Date
of Appointment : |
01.04.2004 |
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Name
: |
Mr.
Swarup Chatterjee |
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Designation
: |
Director
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Address
: |
West
Ichapore, Nabapally, Barasat, Kolkata – 700126, West Bengal, India |
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Date
of Birth/Age : |
01.01.1974 |
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Date
of Appointment : |
01.04.2004 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
and Exporters of Silico Manganese and Ferro Manganese. |
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Products : |
Silico
Manganese Ferro
Manganese |
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Exports to : |
Japan,
China, Singapore, Italy, Chile, South Korea & Bangladesh |
GENERAL
INFORMATION
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Customers : |
Overseas
users in Italy, Brazil, Chile, China, Japan, South Korea, Singapore,
Bangladesh and domestic clients like : ť
Durgapur Steel Plant, Durgapur ť
Alloy Steel Plant, Durgapur ť
Rourkela Steel Plant, Rourkela ť
Rashtriya Ispat Nigam Limited, Vizag ť
Tata Iron & Steel Company, Jamshedpur ť
Jindal Strips Limited ť
Rim Jhim Ispat Limited ť
Essem Enterprise ť
Prakash Industries Limited ť
Super Smelters Limited, Durgapur ť
Metalex India ť
Harsh India ť
Maithon Alloys Limited ť
Mahabir Ferro Alloys Limited, Durgapur ť
Usha Martin Limited and many others. |
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Bankers : |
Not
Available |
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Facilities : |
-- |
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Banking Relations : |
-- |
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Auditors : |
P. Sen
Sharma and Company Chartered
Accountants 309,
B. B. Ganguly Street, east Block, 1st Floor, Kolkata – 700012,
West Bengal, India |
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Group Company : |
Meghalaya
Sova Ispat Alloys Limited : Alloys
Limited EPIP, Gate No. 6, Norbong Area, Byrnihat, Dist - Ribhoi,
Meghalaya, INDIA Phone
91-3638-263-906 / 263-530 Sova
Ispat Limited : Present
Capacity - 90,000 TPA of Sponge Iron producing since June 2005. Works
: Jemua Mouza, P S – Mejia, Dist : Bankura, West Bengal Ph : 91-341
- 250527 Tele
fax : 91-341 - 250 537 Sova
Electrocastings Limited : Present
Capacity - 30,000 TPA M S ingot since June 2006. Heading towards
producing Forging quality & S S grades. Works
: Bamunara Industrial Area, P S – Kanksa, Durgapur - 713212. West Bengal Ph :
91-343 3202485 Sova
Ispat Alloys (Mega Projects) Limited : Located in Durgapur (W B ) Present
Capacity - 12 MVA being expanded to 24 MVA. Producing Ferro Alloys since
October 2006. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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15000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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13788432 |
Equity
Shares |
Rs. 10/- each |
Rs. 137.884 Millions |
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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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137.884 |
132.884 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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74.686 |
52.573 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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212.570 |
185.457 |
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LOAN FUNDS |
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1] Secured Loans |
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113.116 |
82.257 |
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2] Unsecured Loans |
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72.250 |
40.250 |
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TOTAL BORROWING |
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185.366 |
122.507 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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397.936 |
307.964 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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92.462 |
114.238 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
|
0.374 |
0.274 |
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DEFERREX TAX ASSETS |
|
3.068 |
2.211 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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131.559 |
107.917 |
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Sundry Debtors |
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26.457 |
61.657 |
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Cash & Bank Balances |
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29.820 |
22.885 |
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Other Current Assets |
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181.092 |
66.677 |
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Loans & Advances |
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38.823 |
62.109 |
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Total Current Assets |
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407.751 |
321.245 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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105.719 |
130.004 |
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Provisions |
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Total Current Liabilities |
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105.719 |
130.004 |
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Net Current Assets |
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302.032 |
191.241 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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397.936 |
307.964 |
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KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.37 |
1.36 |
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Current
Ratio (Current
Asset/Current Liability) |
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3.86 |
2.47 |
LOCAL AGENCY
FURTHER INFORMATION
AS PER WEBSITE
They
introduce their selves as one of the leading manufacturers in India who are
regularly exporting to Japan, China, Singapore, Italy, Chili, South Korea &
Bangladesh apart from Indian Clientele like TISCO, SAIL, RINL, IISCO, Jindal
Steel & many others. They got the best Exporter award amongst the North
Eastern States for 2004-05 & 2005-06.
Over the
years, Durgapur (WB) & Meghalaya units have grown with a proven track
record by supplying uncompromised quality material and obviously, confidence of
customers Banks through regular transaction and payments has been obtained
beyond doubt.
Infrastructure
Total
Area : 200 Acres
Total
Covered Area : 15000 Sq. Metres
Sova
Ispat Alloys Limited :
3 Nos
Submerged Electric Arc Furnace of total 24 MVA capacities. Furnaces are lined
with high Alumina Fire Bricks with Carbon Paste Electrodes. Power obtained from
The Durgapur Projects Limited at 11 KV level.
Meghalaya
Sova Ispat Alloys Limited :
2 Nos
Submerged Electric Arc Furnace of 18 MVA capacity of similar lining. Meghalaya
State Electricity Board is supplying the required power at 33 KV level.
Sova
Ispat Alloys (Mega Projects) Limited :
One 12
MVA similar arc furnace is slated to produce ferro alloys from October 2006 and
another 12 MVA furnace from July 2007. Power is made available fro The Durgapur
Projects Limited at 11 KV.
Sova
Ispat Limited :
One no
300 TPD rotary kiln (first biggest in West Bengal by volume) is producing
sponge iron. Another 300 TPD unit is envisaged to come in December 2007. One
Private Railway siding to handle the huge quantity of raw material &
products is going to be installed inside the premises. WBSEB is supplying power
at 11 KV. Elaborate arrangement of Gas Conditioning Tower and Electrostatic
Precipitator has been made to keep emission norm within 150 mgms/NM3 of exhaust
gas. Other dust prone areas are managed by dust suppression system having bag
filters. Very soon waste heat recovery Boiler will be installed to generate
power from the heat of waste gas.
Sova
Electrocastings Limited :
2 nos 8
T capacity high silica lined crucibles are producing around 30,000 T of M S
ingots. With installation of one ladle refining furnace, forging quality steel
will be produced here. With further technical up gradation, stainless steel
will be produced in this unit very soon.
Raw Material
: For Ferro Alloy Furnaces : Manganese Ore, Rich Manganese bearing
slag, Dolomite, Quartzite, Fine Coke (dry), Iron Chips and Mill Scale are
utilised. Proper blend is maintained through Micro Processor Batch Weighing
System and controlled through EMR feeders.
For
Rotary Kiln : Iron Ore and non-coking coal are the major
ingradients to
make
directly reduced sponge iron.
For Induction unit : Raw
materials are sponge iron, MS & CI Scrap, Pigs &
some
ferro alloys.
Facilities
: Belt Conveyors, Skip Charger, Raker, 3 nos. pendant
operated EOT cranes, Dumpers, JCBs, Moulds and all other necessary mechanical
equipment.
The
Units are equipped with dust precipitation system with bag filters to maintain
the statutory solid waste PPM level in the effluent gas. Obnoxious gases in the
final discharge is strictly maintained by proper selection/blending of raw
materials and correct smelting process in the furnaces thus ensuring the plant
to be eco friendly.
Sizing/Bagging/Dispatch
: After one and half hours of cooling into the Cast Iron moulds, the solid
metal is stripped off. Broken to pcs. as per size & packed in nylon bags
weighing 25 Kg to 50 Kg. The bags are ready for dispatch which are loaded in
customer's trucks and finally weighed in computerised weighing machine.
PRODUCTS
Present
Capacity with Installed furnaces
High
Carbon Ferro Manganese
44,000
TPA or
High
Carbon Silico Manganese
36,000
TPA or
High
Carbon Ferro Chrome
20,250
TPA &
Low
Carbon Ferro Silicon
9,000
TPA
Sponge
Iron - 5 mm to 18 mm with 82% Fe (Met) 90,000 TPA
Mild
Steel Ingot - 41/2" x 31/2 size-
30,000
TPA
Product
Profile
Because
of high demand in the present Market, Plant is producing High Carbon Ferro and
Silicon Manganese & Low Carbon Ferro Silicon.
Size varies
from 25 mm to 125 mm. but customized and economic size also can be supplied.
In case
of Sponge Iron, normal size is 5 mm to 18 mm. However, they can supply 3 mm to
20 mm size also.
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.44.25 |
|
UK
Pound |
1 |
Rs.86.41 |
|
Euro |
1 |
Rs.58.10 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|