MIRA
INFORM REPORT
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Report Date : |
13.07.2007 |
IDENTIFICATION DETAILS
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Name : |
NEW STEEL TRADING PRIVATE LIMITED |
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Registered Office : |
304, Arihant Iron Market, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.01.1999 |
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Com. Reg. No.: |
11-117933 |
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CIN No.: [Company
Identification No.] |
U27100MH1999PTC117933 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN06575C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is dealing in Chemicals, Paper, Leather, Petroleum Products
etc. |
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 50000 |
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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 : |
304, Arihant Iron Market, |
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Tel. No.: |
91-22-23418000 |
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Fax No.: |
91-22-23418000 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Dinesh H Mehta |
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Designation : |
Managing Director |
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Address : |
12/504, Siddhachal, Vasant Vihar, Thane (West), Thane-400606, |
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Date of Birth/Age : |
20.01.1963 |
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Date of Appointment : |
19.01.1999 |
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Name : |
Mrs. Jyoti D Mehta |
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Designation : |
Director |
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Address : |
12/504, Siddhachal, Vasant Vihar, Thane (West), Thane-400606, |
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Date of Birth/Age : |
18.04.1973 |
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Date of Appointment : |
19.01.1999 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Dinesh H Mehta |
386700 |
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Mrs. Jyoti D Mehta |
4100 |
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Mr. Charanjeet H Mehta |
10800 |
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Dinesh H Mehta (HUF) |
15000 |
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Ms. Asha C Mehta |
5500 |
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Chandrajeet Mehta (HUF) |
23500 |
All the shares are held by directors or their relatives.
BUSINESS DETAILS
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Line of Business : |
Subject is dealing in Chemicals, Paper, Leather, Petroleum Products
etc. |
GENERAL INFORMATION
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Bankers : |
Central
Bank of |
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Banking
Relations : |
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Auditors : |
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Name : |
Mr. Yashvant Anil Rajshree And Associates Chartered Accountants |
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Address : |
2, Dhairya CHS. Opposite Daya Kshama Shanti Society, Bhaskar Colony,
Naupada, Thane-400602, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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750000 |
Equity Shares |
Rs.10/- each |
Rs.7.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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635600 |
Equity Shares |
Rs.10/- each |
Rs.6.356
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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6.356 |
4.456 |
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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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7.997 |
5.746 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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14.353 |
10.202 |
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LOAN FUNDS |
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1] Secured Loans |
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30.884 |
29.514 |
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2] Unsecured Loans |
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0.820 |
0.610 |
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TOTAL BORROWING |
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31.704 |
30.124 |
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DEFERRED TAX LIABILITIES |
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0.603 |
0.573 |
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TOTAL |
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46.660 |
40.899 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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6.821 |
6.639 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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1.494 |
0.220 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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33.679 |
33.704 |
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Sundry Debtors |
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77.981 |
90.083 |
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Cash & Bank Balances |
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0.583 |
1.276 |
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Other Current Assets |
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11.761 |
19.861 |
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Loans & Advances |
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2.333 |
0.910 |
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Total
Current Assets |
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126.337 |
145.834 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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83.455 |
108.108 |
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Provisions |
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4.537 |
3.686 |
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Total
Current Liabilities |
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87.992 |
111.794 |
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Net Current Assets |
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38.345 |
34.040 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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46.660 |
40.899 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Total Income |
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342.885 |
326.691 |
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Profit/(Loss) Before Tax |
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3.572 |
2.530 |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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3.572 |
2.530 |
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Expenditures : |
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Interest |
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4.057 |
2.988 |
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Depreciation & Amortization |
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0.615 |
0.539 |
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Other Expenditure |
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334.640 |
320.635 |
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Total Expenditure |
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339.312 |
324.162 |
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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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PAT / Total Income |
(%) |
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1.04 |
0.77 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.04 |
0.77 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.68 |
1.66 |
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Return on Investment (ROI) (PBT/Networth) |
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0.25 |
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
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8.34 |
13.91 |
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Current Ratio (Current Asset/Current Liability) |
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1.43 |
1.30 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
NEW STEEL
TRADING PRIVATE LIMITED |
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Presented By |
NEW STEEL
TRADING PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Agreement of hypothecation to secure cash credit against goods Dated : 02.05.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.8.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of all tangible movable property such as products sock in trade and goods of the borrowers which now or hereafter from time to time during the security shall brought in, stored or be in or about the premises, warehouses or any where else or godowns of the borrower in Plot No.101-102 and 480, BIMA, Road No.1, Kalamboli, Navi Mumbai. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 9.5% over the bank rate subject to a minimum of 16.5% per annum or at such other rate as may from time to time be fixed nby the bank for the cash credit facility of Rsd.8.500 millions granted by the bank to the company. Margin : 25% |
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5) Name and Address and description of the person entitled to the charge. |
Central Bank of Thane Branch, Plot No.383/384, |
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6) Date and brief description of instrument modifying the charge |
Agreement of hypothecation to secure demand cash credit against goods Dated : 17.04.2004 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The original charge dated 02.05.2001 for Rs.8.500 millions has been modified from time to time as under : On 18.08.2003 an additional limit of Rs.2.000 millions has been granted by the bank thereby enhancing the cash credit facility from Rs.8.500 millions to Rs.10.500 millions. Vide this modification an additional limit of Rs.4.500 millions has been granted by the bank, thereby enhancing the cash credit facility from Rs.10.500 millions to Rs.15.000 millions against hypothecation of all tangible movable property such as products stock in trade and goods fo the borrower which now or hereafter from time to time during the security shall brought in, stored or be in or about the premises, warehouses or any where else or godowns of the borrowers in Plot No.480, Road No.4 and Plot Nos.101 and 102, Road No.1, Iron and Steel Complex, kalamboli. Interest at the BPLR + 1.5% per annum or at such other rate as may from time to time be fixed by the bank. Margin :25%. |
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.40.38 |
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1 |
Rs.82.04 |
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Euro |
1 |
Rs.55.56 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
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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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