MIRA INFORM REPORT

 

 

Report Date :

21.07.2007

 

IDENTIFICATION DETAILS

 

Name :

SARD METALS PRIVATE LIMITED

 

 

Registered Office :

Daryapur Khurd, P O Ujwa, Najafgarh, New Delhi

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

19.03.1998

 

 

Com. Reg. No.:

55-92829

 

 

CIN No.:

[Company Identification No.]

U27109DL1998PTC092829

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RTKS05806D

 

 

PAN No.:

[Permanent Account No.]

AAEC58696P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of Automobile Switchgear Components and MCB.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 53440

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessme. 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 :

Daryapur Khurd, P O Ujwa, Najafgarh, New Delhi, India

Tel. No.:

91-129-2232221/2236899

Fax No.:

91-129-2231211

E-Mail :

sardmetal@satyam.net.in

Website :

http://www.sardindia.com

 

 

Factory 1 :

Plot No. 45, Sector 23, Main Road, Opposite Sapna Textiles, Faridabad, Haryana, India

Tel. No.:

91-129-2232221/2236899

Fax No.:

91-129-2231211

E-Mail :

sardmetal@satyam.net.in

 

 

DIRECTORS

 

Name :

Mr. Rohit Yadav

Designation :

Director

Address :

243, Sector – 9, Faridabad, Haryana, India

Date of Birth/Age :

14.01.1983

Date of Appointment :

01.11.2001

 

 

Name :

Mr. Dalip Yadav

Designation :

Managing Director

Address :

18th April, 1955

Date of Appointment :

19th March, 1998

 

 

Name :

Mr. Ashoo Yadav

Designation :

Director

Date of Birth/Age :

17th September, 1980

Date of Appointment :

31st March, 1999

 

 

Name :

Mrs. Sushila Yadav

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Subhash Gupta and Associates

Designation :

Company Secretary

Address :

1872 Sector-8, Faridabad-121006, Haryana, India

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Name of Shareholders

 

No. of shares held

Mr. Dalip Yadav s/o Late Mr. Rav Gugan Singh

 

391961

Mrs. Shakuntala Devi

 

10

Mrs. Hoshiari Devi

 

10

Mr. Vijay Yadav

 

10

Mr. Ashoo Yadav s/o Mr. Dalip Yadav

 

50640

Mr. Rohit Yadav s/o Mr. Dalip Yadav

 

54640

Ms. Madhu Gupta

 

10

Mrs. Jyoti Yadav w/o Mr. Ashoo Yadav

 

10

Laxmi Steel Traders

 

10

Sai Enterprises

 

10

Total

 

497311

 

Equity share breakup (percentage of total equity)

S. No.

Category

Percentage

1

Director / Relatives of directors

100.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Automobile Switchgear Components and MCB.

 

 

Products :
  • Fans (Celling, Exhaust, SMPL Fans)
  • Circuit Breakers
  • Sheet Metal Components
  • Die Castings
  • Die and Moulds
  • Plastic Mouldings

 

 

Exports :

 

Countries :

Europe and UK

 

 

 

GENERAL INFORMATION

 

Customers :
  • Minda HUF Limited, Noida
  • Bajaj Auto
  • LML
  • Remsons Industries Limited, Gurgaon
  • Remsons industries Limited, Pune
  • Mayank Auto Limited, Delhi
  • Bhartia Industries Limited, Faridabad
  • Havells’ India Limited, Faridabad
  • Indo Asian Fusegear Limited, Murthal
  • Standard Electricals, Chandigarh
  • Sputnik Switchgear Private Limited, Goraya
  • TTL Sahibabad
  • North-west Switchgear Limited, Faridabad
  • Control and Switchgear Private Limited, Faridabad
  • Telemacnique and Controlswitchgear Limited, Noida
  • Electronics Industry
  • Elin Electronics Limited, Ghaziabad
  • Mars Industries Private Limited, Ghaziabad

 

 

No. of Employees :

280

 

 

Bankers :
  • Allahabad Bank
  • Standard Chartered Bank
  • ABN Amro Bank
  • Haryana Financial Corporation
  • Small Industries Development Bank of India, SIDBI Tower, 15, Ashok Marg, Lucknow 226 001

 

 

Facilities :

 

Name of the Bank/Financial Institution

Type of Facilities

Haryana Financial Corporation

Secured Loan (Hypothecation of Machines)

Allahabad Bank

Car Loan, WCL, Over Draft

Standard Chartered Bank

Car Loan (Term Loan)

ABN Amro Bank

Car Loan (Term Loan)

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Kailash Bindal and Company

Chartered Accountants

Address :

B-84, 1st Floor, Near Post Office,

Nehru Ground, NIT Faridabad-121001, Haryana, India

Tel. No.:

91-129-2413354/2418182

Mobile No.:

91-9810842625

E-Mail :

kailash_bindal@yahoo.co.in

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

500000

Equity shares

Rs. 10/- each

Rs. 5.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

497311

Equity shares

Rs. 10/- each

Rs. 4.973 millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4.973

4.973

4.973

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8.387

6.171

4.241

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

13.360

11.144

9.214

LOAN FUNDS

 

 

 

1] Secured Loans

30.300

16.461

11.832

2] Unsecured Loans

15.623

7.009

3.112

TOTAL BORROWING

45.923

23.470

14.944

DEFERRED TAX LIABILITIES

2.932

2.741

2.438

 

 

 

 

TOTAL

62.215

37.355

26.596

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

35.337

25.548

21.554

Capital work-in-progress

1.923

0.000

0.000

 

 

 

 

INVESTMENT

0.018

0.018

0.018

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
17.938

7.275

11.092

 

Sundry Debtors
16.722

22.552

25.081

 

Cash & Bank Balances
0.163

0.385

0.142

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
14.880

6.836

4.833

Total Current Assets
49.703

37.048

41.148

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
24.621

24.965

36.133

 

Provisions
0.149

0.301

 

Total Current Liabilities
24.770

25.266

36.133

Net Current Assets
24.933

11.782

5.015

 

 

 

 

MISCELLANEOUS EXPENSES

0.004

0.007

0.009

 

 

 

 

TOTAL

62.215

37.355

26.596

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

(Estimated)

31.03.2005

(Estimated)

31.03.2004

Sales Turnover

175.000

150.00

106.104

Other Income

 

 

 

Total Income

175.000

150.00

106.104

 

 

 

 

Profit/(Loss) Before Tax

NA

NA

1.320

Provision for Taxation

NA

NA

0.513

Profit/(Loss) After Tax

NA

NA

0.807

 

 

 

 

Expenditures :

 

 

 

 

Interest

NA

NA

2.472

 

Depreciation & Amortization

NA

NA

2.939

 

Other Expenditure

NA

NA

93.962

Total Expenditure

NA

NA

99.373

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
NA

NA

0.76

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
NA

NA

1.24

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
NA

NA

2.10

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
NA

NA

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.29

4.37

5.54

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.00

1.46

1.13

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was incorporated on 19th March, 1998 at New Delhi in India having Company Registration Number 55-92829.

 

Name of the company

SARD METALS PRIVATE LIMITED

Presented By

Mr. Dalip Yadav, Director

1) Date and description of instrument creating the change

i) On 14th day of June 2004 Deed of Hypothecation executed by the company in favor of small Industries Development Bank of India (hereinafter referred to as “SIDBI”) A certified copy of the said Deed of Hypothecation is enclosed.

2) Amount secured by the charge/amount owing on the securities of charge

ii) A term loan of Rs 2.860 millions agreed to be tent and advanced by SIDBI to the company together with interest. Further Interest. Liquidated Damages, Costs, Charges, Expenses and all other moneys payable by the company to SIDBI in terms of the loan Agreement dated June 14, 2004 between the Company of the One Part and SIDBI of the other Part.

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 movable including plant, machinery, equipments, tools spares, accessories and all other assets which have been or proposed to be acquired under the scheme whether installed or not and wherther now lying loose or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Borrower’s premises, factory, showroom and godown or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery.

 

4) Gist of the terms and conditions and extent and operation of the charge.

The company has undertaken to keep the hypothecated goods in marketable and good condition at its own costs and to insure the same in the join names of the company and SIDBI

The security created under the said Deed of Hypothecation is to continuing security.

5) Name and Address and description of the person entitled to the charge.

Small Industries Development Bank of India, SIDBI Tower, 15, Ashok Marg, Lucknow 226 001

6) Date  and brief description of instrument modifying the charge

Deed of Hypothecation dated March 29, 2005

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.

On 29th March 2005 Deed of Hypothecation executed by the company in favor of Small Industries Development Bank of India (hereinafter referred to as SIDBI) for extension of charge on all equipment, plant, machinery, and other assets acquired by the company out of the present loan of Rs. 1.850 millions together with all spares, tools and accessories and whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these present be brought into or upon or be stored or be in or about all the company’s premises, factory, showrooms and godowns or wherever else the same may be or wherever else the same may be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and whersoever in the possession of the company. A certified copy of said Deed of Hypothecation is enclosed.

 

The charge operates as exclusive charge on the assets avquired of the earlier loan of Rs. 2.860 millions and gets extended to secure the due repayment and discharge by the company to IDBI of its Term Loan of Rs. 1.850 million and working capital term loan of Rs. 2.650 million together with interest, further interest, liquidated damages costs, charges, expenses and all other monies payable by the company under the loan agreements dated March 29, 2005.

 

The charge by way of Hypothecation dated June 14 2004 (earlier deed of hypothecation) being the original charge is now modified as above.

 

The company has undertaken to keep the hypothecated goods in marketable and good condition at its own costs and to insure the same in joint names of the company and SIDBI.

 

All the goods hypothecation and all realizations and insurance proceeds thereof and all documents in respect of the said property are to be kept distinguishable and held as the exclusive property of SIDBI.

 

The security under the said Deed of Hypothecation is to be a continuing security.

 

Corporation identity number or foreign company registrations number of the company 

U27109DL1998PTC092829

Name of the company

SARD METALS PRIVATE LIMITED

Address

Daryapur Khurd, P O Ujwa, Najafgarh, New Delhi, India

This Form is for

Modification of Charge

Type of Charges

Book Debts, Movable Property (not being pledge)

Particular of the charge holder 

Allahabad Bank, Gobind Bhawan, NIT, Faridabad 121 001, Hayrayana, India

ronddel@allahabadbank.co.in

Nature or description of the instrument creating charge  

General letter of hypothecation dated 22.03.2007

Date of the instrument creating charge

22.03.2007

Amount Secure by the charge

Rs. 30.000 millions

Brief of the principal terms and conditions and extent and operation of the charge

a)       Rate of Interest:

PLR-0.50% p. a. with monthly rests (At present PLR is 13.25%)

 

b)       Terms of Repayment:

On Demand

 

c)       Margin:

25% of Fully paid for stocks and book debts

 

d)       Extent and operation of the charge:

Exclusive hypothecation charge on the entire stocks, receivables and all other current assets and fixed assets including plant and machinery of the company both present and future.

Description of the property charge whether it is a charge on

NA

Modification charge

Charge identification number of the charge to be modified

NA

Date of instrument modifying the charge

NA

Particulars of the Property charged  

NA

 

 

 

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.40.33

UK Pound

1

Rs.82.63

Euro

1

Rs.55.65

 

 

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

YES

--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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions