MIRA
INFORM REPORT
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Report Date : |
03.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JAIN STEEL AND POWER LIMITED |
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Registered Office : |
39, Shakespeare Industries, Premlata, Kolkata – 700017, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.05.2004 |
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Com. Reg. No.: |
098638 |
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CIN No.: [Company
Identification No.] |
U27102WB2004PTC098638 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALJ02530D |
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PAN No.: [Permanent
Account No.] |
AABCJ4507H |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Steel. |
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 : |
USD710000 |
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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 : |
39, Shakespeare Industries, Premlata, Kolkata – 700017, |
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Tel. No.: |
91-33-40027777 |
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Fax No.: |
91-33-40027744 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. P. K. Dhawan |
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Designation : |
Director |
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Address : |
FE – 443, Saltlake, Sector – III, Kolkata – 700106, West |
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Date of Birth/Age : |
18.06.1940 |
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Date of Appointment : |
03.05.2005 |
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Name : |
Mr. Debdulal Chatterjee |
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Designation : |
Director |
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Address : |
164A/9, |
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Name : |
Manoj Kumar Jain |
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Designation : |
Managing Director |
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Address : |
7, Iron Side Road, Kolkata – 700019, West |
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Date of Birth/Age : |
29.01.1974 |
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Date of Appointment : |
25.05.2004 |
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Name : |
Ms. Rekha Jain |
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Designation : |
Director |
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Address : |
Birpara Tea Estate, Birpara-1 No. Birpara, Siliguri – 735204, West |
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Date of Birth/Age : |
10.03.1977 |
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Date of Appointment : |
25.05.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Equity Shares Breakup
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Category |
Percentage |
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Bodies Corporate |
99.29 |
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Director or relatives of Director |
0.71 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Steel. |
GENERAL INFORMATION
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Bankers : |
Indian Bank 32, Janpath,
Ashok Nagar, Unit II, Housing and urban
Development Corporation Limited |
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Facilities : |
Credit Limit of Rs.
242.900 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ajit Kumar Baid Chartered Accountants |
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Address : |
4th Floor, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3497800 |
Equity Shares |
Rs. 10/- each |
Rs. 34.978
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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34.978 |
15.768 |
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2] Share Application Money |
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3.450 |
0.000 |
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3] Reserves & Surplus |
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139.312 |
62.672 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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177.740 |
78.440 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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4.796 |
0.000 |
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TOTAL BORROWING |
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4.796 |
0.000 |
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DEFERRED TAX LIABILITIES |
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10.749 |
15.849 |
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TOTAL |
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193.285 |
94.289 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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5.552 |
0.000 |
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Capital work-in-progress |
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97.410 |
21.988 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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5.863 |
1.123 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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85.840 |
69.003 |
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Total
Current Assets |
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91.703 |
70.126 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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11.470 |
1.201 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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11.470 |
1.201 |
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Net Current Assets |
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80.233 |
68.925 |
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MISCELLANEOUS EXPENSES |
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10.089 |
3.376 |
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TOTAL |
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193.285 |
94.289 |
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PROFIT & LOSS
ACCOUNT
Since the Company is in the process of setting up an integrated steel project
and commercial production has not started so no Profit and Loss Account has
been prepared
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover(Estimated) |
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200.000 |
125.000 |
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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0.09 |
0.02 |
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Current Ratio (Current Asset/Current Liability) |
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7.99 |
58.39 |
LOCAL AGENCY FURTHER INFORMATION
Company Profile:
This is
underpinned by the phenomenon of
The Group, major player in
Infrastructure & Real estate industry, is now endeavoring into steel
project, as logical behavior integration, through Jain Steel &
Power Limited.
Subject is setting up an
integrated steel project, comprising of Sponge Iron Plant, Power Co-Generation and
Steel Billet Plant, at Jharsuguda, Orissa. Total project capital outlay for the
first phase is of Rs. 320.000 millions (approx).
About the Project
The integrated
steel manufacturing complex comprises of following manufacturing facilities :
Coal based Direct Reduced Iron
(DRI) plant with a capacity o f 0.220 millions TPA of Sponge Iron.
38 MW Power generations
Mini Blast Furnace with capacity
of 1, 00,000 TPA of Hot Metal
Steel Melt Casting facility with
a capacity of 300,000 TPA via Electric Arc Furnace and Induction furnace
The project is expected to
contribute significantly to the exchequer by way of Taxes & Levies while
providing direct employment to over 350 people, baring indirect & ancillary
once.
The ultimate objective of the
company is to set-up a fully integrated facility for manufacture of 1.00 MTPA
of high quality steel with pelletisation plant and power co-generation plant of
about 135 MW by the year 2012. Vision 2012 once implemented would make this a
INR 12000.000 millions outlay.
Operation and outlook:
The company is setting up an integrated steel
plant of 11000 TPA Sponge, 50000 TPA Billets and 8MW power plant, at
Jharsuguda, Orissa at an estimated cost of Rs.950.000 millions. The project is
under implementation phase. The company has signed an Memorandum of
understanding (MOU) with the Government of Orissa, wherein the company would be
entitled for allotment of Iron Ore Mines for the project.
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This form is for |
Modification of
Charge |
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Charge identification
number of the charge to be modified |
10023963 |
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Corporate
identity number of the company |
U27102WB2004PTC098638 |
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Name of the
company |
JAIN STEEL AND POWER LIMITED |
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Address of the
registered office or of the principal place of business in |
39, Shakespeare Industries, Premlata, Kolkata – 700017, West |
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Type of charge |
Immovable
property |
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Particular of
charge holder |
Indian Bank, 32,
Janpath, Ashok Nagar, Unit II, |
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Nature of
description of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
28.02.2007 |
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Amount secured by
the charge |
Rs. 242.900
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per Document
Attached Terms of
Repayment As per Document
Attached Margin As per Document
Attached Extent and operation
of the charge As per Document
Attached |
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Short particulars
of the property charged |
As per Document
Attached |
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Particulars of
the present modification |
The total amount of
the charge created earlier is Rs. 242.900 Millions out of the total amount
term loan is Rs. 165.000 Millions and OCC is Rs. 77.900 Millions. By this
modification the amount remain same but the term loan is of Rs. 165.000
Millions modified on first Pari Passu Charge basis. |
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.40.66 |
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1 |
Rs.81.79 |
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Euro |
1 |
Rs.55.05 |
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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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