MIRA
INFORM REPORT
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Report Date : |
31.05.2007 |
IDENTIFICATION DETAILS
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Name : |
RIMJHIM ISPAT LIMITED |
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Formerly known as: |
VANDHNA CASTINGS PRIVATE LIMITED |
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Registered Office : |
123/335, U P Rolling Mill Compound Fazal Ganj, Pradesh |
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Country : |
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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.: |
20-12679 |
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CIN No.: [Company
Identification No.] |
U27101UP1991PLC012679 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPR00168A |
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Legal Form : |
A Closely Held Public Limited Company |
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Line of Business : |
Manufacturer, Trader and Exporter of Alloy Steel Castings in all sizes |
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 680000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
123/335, U P Rolling Mill Compound Fazal Ganj, |
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Tel. No.: |
91-512-2240980/81/82/83/84/85 |
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Fax No.: |
91-512-2295035 |
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E-Mail : |
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Website : |
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Area : |
2500 sq. mtrs. |
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Location : |
Owned |
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Corporate Office: |
AN – 30A, Shalimar Bagh, |
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Tel. No.: |
91-11-27476877-78 |
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Area : |
500 Sq. ft |
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Factory 1 : |
B-22-23 Industrial Area, Sumerpur (Hamirpur) |
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Tel. No.: |
91-5282-43460 |
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Fax No.: |
91-5282-43403 |
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Area : |
1.5 acres |
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Location : |
Owned |
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Factory 2 : |
Industrial Area, Sumerpur (U. P.), 123/535, U. P. Rolling
Mill Compound, Fazal Ganj, |
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Area : |
6500 Sq. ft |
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Branches : |
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Mobile No.: |
91-9820533640 |
DIRECTORS
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Name : |
Mr. Rajeev Goyal |
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Designation : |
Director |
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Address : |
117/449 Pandu Nagar, |
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Name : |
Mr. Sanjeev Goyal |
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Designation : |
Director |
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Address : |
202 Swroop Nagar, |
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Name : |
Mr. Mukesh Kumar Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Inderjit Singh |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
57 Years |
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Qualification
: |
Graduate |
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Experience : |
10 Years |
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Name : |
Mrs. Mohinder Kaur |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
55 Years |
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Qualification
: |
Graduate |
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Experience : |
5 Years |
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Name : |
Dr. Jasmeet Singh |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
29 Years |
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Qualification
: |
Graduate |
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Experience : |
3 Years |
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Name : |
Mr. Harmeet Singh |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
26 Years |
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Qualification
: |
Graduate |
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Experience : |
15 Years |
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Name : |
Mr. Yogesh Kumar Agarwal |
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Designation : |
Director |
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Address : |
123 / 360, Fazal Ganj, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Category |
|
Percentage of
Holding |
|
Bodies Corporate |
|
74.00 |
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Directors or relatives of directors |
|
26.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Trader and Exporter of Alloy Steel Castings
in all sizes |
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Products : |
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Exports to : |
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Imports from : |
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Terms : |
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Selling : |
L/C, Cash or Credit (60 days) |
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Purchasing : |
L/C & Cash (60 days) |
PRODUCTION STATUS
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Products |
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Unit |
Actual
Production |
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Ingots |
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MT |
50000 |
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Runner Riser |
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MT |
800.750 |
GENERAL INFORMATION
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Customers : |
Wholesalers and End Users |
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No. of Employees : |
600 |
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Bankers : |
v
Punjab National Bank, Main Branch, v
Standard Chartered Bank, Mall, |
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Facilities : |
v Punjab National Bank – Rs. 20.000 Millions v Standard Chartered Bank – Rs. 30.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Aggarwal and Saxena Chartered Accountants |
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Address : |
63/2, The Mall, |
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Name : |
Vikas Om and Associates Chartered Accountants |
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Address : |
104 A / 181 – B, Rambagh, |
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Associates/Subsidiaries : |
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Name: |
Jenith Alloy Steel |
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Address : |
216, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 60.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 50.000 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.000 |
50.000 |
75.000 |
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2] Share Application Money |
45.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
75.555 |
37.516 |
16.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
170.555 |
87.516 |
91.500 |
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LOAN FUNDS |
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1] Secured Loans |
93.802 |
3.447 |
18.000 |
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2] Unsecured Loans |
111.369 |
112.207 |
5.000 |
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TOTAL BORROWING |
205.171 |
115.654 |
23.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
375.726 |
203.170 |
114.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
72.830 |
71.384 |
78.000 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
0.269 |
0.047 |
5.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
273.714
|
101.775 |
18.700 |
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Sundry Debtors |
251.143
|
255.679 |
24.000 |
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Cash & Bank Balances |
41.961
|
26.816 |
4.800 |
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Other Current Assets |
13.924
|
11.091 |
0.000 |
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Loans & Advances |
56.039
|
81.521 |
14.600 |
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Total
Current Assets |
636.781
|
476.882 |
62.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
329.336
|
337.878 |
34.600 |
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Provisions |
4.818
|
7.265 |
0.000 |
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Total
Current Liabilities |
334.154
|
345.143 |
34.600 |
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Net Current Assets |
302.627
|
131.739 |
27.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.000 |
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TOTAL |
375.726 |
203.170 |
114.500 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2571.917 |
2304.405 |
940.300 |
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Other Income |
3.862 |
2.004 |
0.000 |
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Total Income |
2607.0096 |
2337.6395 |
940.300 |
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Profit/(Loss) Before Tax |
42.857 |
125.346 |
NA |
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Provision for Taxation |
NA |
NA |
NA |
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Profit/(Loss) After Tax |
NA |
NA |
60.500 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.000 |
0.000 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
0.000 |
0.000 |
0.000 |
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Imports : |
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Raw Materials |
0.000 |
0.000 |
0.000 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
0.000 |
0.000 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
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Raw Material Consumed |
1776.154 |
1486.729 |
0.000 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
402.382 |
325.862 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(37.730) |
37.031 |
0.000 |
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Salaries, Wages, Bonus, etc. |
4.946 |
3.135 |
0.000 |
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Managerial Remuneration |
2.207 |
0.334 |
0.000 |
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Payment to Auditors |
0.021 |
0.021 |
0.000 |
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Interest |
3.986 |
0.790 |
0.000 |
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Insurance Expenses |
1.895 |
0.548 |
0.000 |
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Power & Fuel |
259.680 |
229.531 |
0.000 |
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Depreciation & Amortization |
14.916 |
15.290 |
0.000 |
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Other Expenditure |
104.465 |
81.793 |
87.980 |
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Total Expenditure |
2532.922 |
2181.063 |
87.980 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
NA
|
NA |
6.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.67
|
5.44 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.04
|
22.86 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
1.43 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.16
|
5.27 |
0.62 |
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Current Ratio (Current Asset/Current Liability) |
|
1.91
|
1.38 |
1.79 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
RIMJHIM ISPAT
LIMITED |
|
Presented By |
Shri. Mukesh
Kumar Agarwal (Director) |
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1) Date and description of instrument creating the change |
Agreement dated
29.102005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit (H):
Rs. 100.000 millions LG / LC : Rs. 50.000 millions Total : Rs. 150.000 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 |
Book Debts, Stock
of Finished Goods, Semi Finished Goods, Raw material, Consumable Stores at B
-22, 23, Bharwa Sumerpur, Hamirpur in favour of Union Bank of India Moolganj
Xing Branch, |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The Hypothecation
of stock and Book Debts to secure Cash Credit (H) Limit of Rs. 100.000
millions and LC/LG Limit of Rs. 50.000 millions Total Rs. 150.000 millions
Interest and Other Charges as per prevailing rate of the bank. |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank Of Moolganj Xing
Branch, |
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Corporate
identity number (CIN) Foreign company registration number |
U27101UP1991PLC012679 |
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Name of the
Company |
RIMJHIM ISPAT LIMITED |
|
Address |
123/335, U P Rolling Mill Compound Fazal Ganj, |
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This form is for |
Modification of
charge |
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Charge Identity
(ID) number of the charge to be modified |
80021761 |
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Type of Charge |
v
Immovable
Property v
Book
Debts v
Movable
Property (not being pledge) v
Plant
and Machinery v
Furniture
and fixtures v
Stock
in trade |
|
Whether
consortium finance is involved |
No |
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Whether joint
charge involved |
No |
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Particulars of
the charge holder |
Mall Road, E mail: rimjhim@mail.com |
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Amount secured by
the charge |
Rs. 300.000
millions |
|
Nature or
description of the instrument(s) creating or modifying the charge |
mortgage of IP |
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Whether charge
created or modified outside |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: Interest Rate is 11.00 % (BPLR –
1.25) (b) Terms of
repayment: On Demand (c ) Margin: 25%
Cash Credit Against Hypothecation of entire stocks of raw materials, stock
in process, finished goods, stock in transit,
consumable stores and spares, Debtors covering entire
current Assets. (d) Extent and
operation of the charge: Enhancement of Fund and Non-Fund Limits upto Rs.
300.000 millions |
|
Particulars of
the property charged |
Charge on entire
current and block of Fixed Assets Continuation of
Equitable Mortgage of company’s Factory, Land and Building situated at Plot
No. B-22,23, UPSIDC Industrial area, Bharua Sumerpur, Hamirpur |
|
Short particulars
of the property charged |
Charge on entire
current and block of Fixed Assets Continuation of Equitable
Mortgage of company’s Factory, Land and Building situated at Plot No.
B-22,23, UPSIDC Industrial area, Bharua Sumerpur, Hamirpur |
|
Whether any of
the property or interest therein under reference is not registered in the
name of the company |
No |
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Date of
Instrument |
14.03.2007 |
|
Date of latest
modification prior to the present modification |
15.02.2007 |
|
Particulars of
the present modification |
Cash Credit and
Non Fund based facilities enhanced upto Rs. 300.000 millions |
Previously this company was known as “Vandhna Castings Private Limited” and name changed on 21.12.1994.
Subject is in trade
terms with the following:
International Cycle Limited
Universal Steel Discs Private Limited
Bharat Steel Limited
Local & Nagar Nigam Delhi & Uttar Pradesh
LML Limited
Company Profile
Subject Limited established in year 1996 with its corporate office at Delhi from modest beginning has established itself as an organization manufacturing Stainless Steel of AISI 200, 300 and 400 series, working with experienced engineers, qualified staff and skilled workers, develop the most cost effective product solution for customers.
Their efforts of the past ten years to replace costly Ni with N-Mn in Austenitic Grades without in any way sacrificing the corrosion, cryogenic, high temp or Mechanical properties have made us the acknowledged Leaders in these specially developed grades. Achievements in products development are cold drawn steel for Fasteners, Annealed wire rods for drawing stabilized corrosion resistance grades for high temperature etc.
Their plant located in the industrial hub of Sumerpur, in Uttar Pradesh, a state of India is on the state highway and is easily accessible to steel consumption center and yet enjoying proximity to input raw materials and power. The company is actively involved in backward integration so that its valued customers can enjoy the high quality and low cost of products developed with them.
Strength
Their major strengths are their Qualified, Metallurgists
hands on quality with steel making and product development, experience
supported by their well equipped laboratory.
Their extra low Ni grades according to the customer's requirements are
|
Austenitic |
UT.S
Kg/mm2 |
Y.S.
Kg/mm2 |
Elong
% |
Hardness
on BHN |
Blanking |
Piercing |
Deep
Drawing |
Spinning |
Roll
Forming |
|
Low Ni Grades (1.0% to 1.5%) |
65 / 75 |
35 / 40 |
45 / 55 |
145 / 160 |
B |
B |
A - B |
B |
B |
|
Austenitic Extralow Ni grade |
70 / 80 |
35 / 45 |
25 / 30 |
160 / 180 |
B |
B |
A - B |
B |
B |
Stainless Steel
Grades for Forming Operations
A-Excellent, B-Good, C-Fair, D-Not Recommended (a)
Severe Sharp Bends Should be avoided
|
Steel Austenitic |
Hardness |
Blanking |
Piercing |
Press Brake |
Deep |
Spinning |
Roll Forming |
|
201 |
100 |
B |
C |
B |
A-B |
C-D |
B |
|
202 |
100 |
B |
B |
A |
A |
B-C |
A |
|
301 |
--- |
B |
C |
B |
A-B |
C-D |
B |
|
302 |
92 |
B |
B |
B |
B-C |
C |
--- |
|
304 |
92 |
B |
B |
A |
A |
B |
A |
|
304L |
88 |
B |
B |
A |
A |
B |
A |
|
316 |
95 |
B |
B |
A (a) |
B |
B |
A |
|
Martensitic Steels |
|||||||
|
403, 410 |
95 |
A |
A-B |
A |
A |
A |
A |
|
420 |
52 HRC |
B |
A-B |
C (a) |
C-D |
D |
D |
Products
|
Stainless Steel
Round Bright Bars |
|
|
Stainless Steel
Billets |
|
|
Stainless Steel
Hot Rolled Round Bar and RCS |
|
|
Stainless Steel
Wire Rods |
|
|
Stainless Steel Flats |
|
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.73 |
|
|
1 |
Rs. 80.43 |
|
Euro |
1 |
Rs. 54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
43 |
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 |
|