MIRA
INFORM REPORT
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Report Date : |
06.06.2007 |
IDENTIFICATION DETAILS
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Name : |
GARG CASTEELS PRIVATE LIMITED |
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Registered Office : |
303-304, Shail Complex, New Girish Char Rasta, C G Road,
Ahemddabad-380006, Gujarat, India |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.09.1991 |
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Com. Reg. No.: |
04-16219 |
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CIN No.: [Company
Identification No.] |
U27109GJ1991PTC016219 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMG02777F |
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PAN No.: [Permanent
Account No.] |
AAACG7839A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of MS Ingot, Angle, Flats, Bars, Beams and rolled and rerolled
and products. |
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 140000 |
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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/ Factory : |
303-304, Shail Complex, New Girish Char Rasta, C G Road,
Ahemddabad-380006, Gujarat, India |
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Tel. No.: |
91-278-2421596, 222646, 222652 |
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Fax No.: |
91-276-2411481 |
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E-Mail : |
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Website : |
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Head Office : |
A-61, 6th Floor, Nayankunj Co-operative Society Limited,
Orchid Park, Opposite Karnavati Club, |
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E-Mail : |
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Administrative Office : |
212/214, Madhav Darshan, |
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Tel. No.: |
91 278 - 2421596, 2421597, 2411480 |
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Fax No.: |
91 278 - 2411481 |
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Factory 1 : |
Village Vadia, Survey No.43/1, Sihor, Bhavnagar-364240, |
DIRECTORS
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Name : |
Mr. ArunKumar Hansraj Jain |
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Designation : |
Director |
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Address : |
D-243, Hanssheel Kalvibid, Bhavnagar-364002, |
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Date of Birth/Age : |
28.06.1959 |
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Date of Appointment : |
05.09.1991 |
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Name : |
Mr. VipanKumar Jain |
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Designation : |
Director |
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Name : |
Mrs. Chanchal Rani Jain |
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Designation : |
Director |
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Address : |
D-243, Hanssheel Kalvibid, Bhavnagar-364002, |
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Date of Appointment : |
30.06.1997 |
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Name : |
Mr. BineetKumar Jain |
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Designation : |
Whole time Director |
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Address : |
D-243, Hanssheel Kalvibid, Bhavnagar-364002, |
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Date of Birth/Age : |
05.08.1983 |
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Date of Appointment : |
20.08.2001 |
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Name : |
Mr. Munshi Ram Jain |
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Designation : |
Director |
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Name : |
Mr. Balkrishan Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Hasit Mehta |
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Designation : |
Technical Director |
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Name : |
Mr. Mantresh Arunkumar Jain |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Hansraj A Jain |
38698 |
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Mr. Arunkumar M Jain |
16485 |
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Mr. Arunkumar A Jain |
3590 |
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Mr. Arunkumar B Jain |
5795 |
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Mr. Arunkumar Jain (HUF) |
465 |
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Mrs. Chanchal Rani Jain |
7710 |
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Ms. Ruchi |
500 |
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Ms. Ritika |
500 |
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Mr. Gagandeep |
500 |
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Hans Ispat Private Limited |
50757 |
All the shares are held by Directors and their relatives.
BUSINESS DETAILS
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Line of Business : |
Manufacturers of MS Ingot, Angle, Flats, Bars, Beams and rolled and
rerolled and products. |
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Products : |
v M S Ingots v M S Angles v M S Channels v M S Flats v M S I Beam
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
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Furnace |
MT |
18285.955 |
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Rolling Mills |
MT |
12491.140 |
GENERAL INFORMATION
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No. of Employees : |
About 450 |
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Bankers : |
v
Punjab National Bank, v
ICICI Bank Limited v
Kotak Mahindra Primus Limited |
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Facilities : |
As on 31.03.2005 Secured Loans
(Rs. In millions) :
Unsecured Loans
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sarda & Sarda Chartered Accountants |
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Address : |
Sarda House, Opposite Panchawati Society, Bedi Bunder Road, Jamnagar-361002,
Gujarat, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
150000 |
Equity Shares |
Rs.100/- each |
Rs.15.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
125000 |
Equity Shares |
Rs.100/-
each |
Rs.12.500
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 |
12.500 |
12.500 |
12.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
23.274 |
20.565 |
15.510 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
35.774 |
33.064 |
28.010 |
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LOAN FUNDS |
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1] Secured Loans |
30.080 |
28.189 |
19.426 |
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2] Unsecured Loans |
33.739 |
19.208 |
15.203 |
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TOTAL BORROWING |
63.819 |
47.397 |
34.629 |
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DEFERRED TAX LIABILITIES |
7.853 |
6.712 |
5.035 |
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TOTAL |
107.446 |
87.173 |
67.674 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
37.451 |
38.297 |
26.199 |
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Capital work-in-progress |
7.662 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
25.307
|
28.771 |
22.833 |
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Sundry Debtors |
15.863
|
6.430 |
7.443 |
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Cash & Bank Balances |
13.516
|
6.751 |
8.714 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
15.659
|
24.099 |
9.481 |
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Total
Current Assets |
70.345
|
66.051 |
48.471 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
6.265
|
13.381 |
4.975 |
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Provisions |
1.746
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3.794 |
2.021 |
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Total
Current Liabilities |
8.012
|
17.175 |
6.996 |
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Net Current Assets |
62.334
|
48.876 |
41.475 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
107.446 |
87.173 |
67.674 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
396.518 |
433.115 |
270.267 |
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Other Income |
(14.058) |
2.806 |
(0.455) |
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Total Income |
382.460 |
435.921 |
269.812 |
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Profit/(Loss) Before Tax |
4.419 |
9.005 |
2.451 |
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Provision for Taxation |
1.709 |
3.245 |
0.898 |
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Profit/(Loss) After Tax |
2.710 |
5.760 |
1.553 |
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Total Earnings |
0.000 |
3.203 |
0.000 |
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Total Imports |
28.979 |
18.285 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
68.948 |
45.401 |
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Administrative Expenses |
0.000 |
7.999 |
5.742 |
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Raw Material Consumed |
0.000 |
339.725 |
209.244 |
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Salaries, Wages, Bonus, etc. |
0.000 |
1.945 |
0.602 |
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Financial Expenses |
2.499 |
4.791 |
3.978 |
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Depreciation & Amortization |
5.273 |
3.508 |
2.393 |
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Total Expenditure |
7.772 |
426.916 |
267.360 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
0.70
|
1.32 |
0.57 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.11
|
2.06 |
0.91 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.09
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8.63 |
3.28 |
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Return on Investment (ROI) (PBT/Networth) |
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0.12
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0.27 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.00
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1.95 |
1.49 |
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Current Ratio (Current Asset/Current Liability) |
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8.77
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3.84 |
6.93 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
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Name of the company |
GARG CASTEELS
PRIVATE LIMITED |
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Presented By |
Senior Manager, Punjab
National Bank, Main Branch, Ramvadi, Bhavnagar-364001. |
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1) Date and description of instrument creating the change |
Memorandum of deposit of title deeds made with Punjab National Bank on 13.06.2005 by Garg Casteels Private Limited. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.190.000 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 |
The whole of the company’s immovable 0properties situate at all that piece or parcel of freehold land situate lying and being at Sihor-Ahmedabad Road, Vadia, Taluka Sihor, District Bhavnagarforming part of survey No.43 of Mouje Vadia of Sihor Taluka in theRegistration Disterict Bhavnagar and Sub District of Sihor admeasuring 10521.74 Sq.mtrs. oir thereabouts together with buildings thereon, All that piece and parcel of freehold land situate lying and being at Sihor Ahmedabad Road, Vaida, Taluka Sihor, District Bhavnagar forming part of Survey No.36 oif Mouje Vadia of Sihor Taluka in the Registration district Bhavnagar and Sub District of Sihor admeasuring 12849.00 Sq. mtrs. or thereabouts together with buildings thereon. All that piece and parcel of freehold land situate lying and being at Sihor Ahmedabad Road, Vaida, Taluka Sihor, District Bhavnagar forming part of Survey No.37 of Mouje Vadia of Sihor Taluka in the Registration district Bhavnagar and Sub District of Sihor admeasuring 735.00 Sq. mtrs. and 251.00 Sq. mtrs. of common plot together with buildings thereon and All that right title and interest as a member of Madhav Darshan Non Trading Corporation in a piece or parcel of freehold land situate lying and being at Madhvav Darshan Complex, Opposite Radha Mandir, Waghawadi Road, Bhavnagar bearing City Survey No.1602 of Sheet No.190 of Ward No.6 of Bhavnagar City of Bhavnagar Taluka in Registration District an d Sub District of Bhavnagar admeasuring 1708.04 Sq. mtrs. and 1830.60 Sq. mtrs. Respectively i.e. collectively 3538.64 Sq. mtrs. or there about together with of vice No.212 and 214 on Second floor in Madhav Darshan admeasuring collectively 1044.42 Sq. ft. or thereabouts. thereon. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
All the immovable properties described in Column No.3 hereinabove are mortgaged and charged to the Bank by Equitable mortgage by deposit of title deeds to secure Cash Credit (Hypothecation) Limit of Rs.25.000 millions (with a sub limit of Rs.5.000 millions against Book Debts) ILC/FLC (DA/DP) Limit of Rs.150.000 millions and Term Loan of Rs.15.000 millions aggregating to Rs.190.000 millions together with interest, cost, commission, charges, expenses and other monies payable by the Borrower to the Bank. |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank, Main Branch, Ramvadi, Bhavnagar-364001, |
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6) Date and brief description of instrument modifying the charge |
Nil |
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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. |
Nil |
Company’s fixed assets include Land and Site Development, Building,
Plant and Machinery, Electric Installation,
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Contingent
Liabilities not paid for : |
2004-05 |
2003-04 |
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Letter of Credit opened by Bank |
-- |
-- |
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Bank Guarantee issued by Bank on their behalf |
30.000 |
Nil |
Website Details :
Subject is an ISO-9001-2000
Company is registered with Joint Plant Committee (Government of India) and
also confirming to BIS Standards M.S. Ingots - BIS 2830 and Rolled Products -
BIS 2062. Subject is most prominent brand name "GARG" in western
region steel market of
The Company has
obtained certificate of compliance for ISO-9001-2000 with registration No.
RQ91/2893 and also confirming to BIS Standards M.S. Ingots - BIS 2830 and
Rolled Products - BIS 2062. The company lays much emphasis on quality. Each
& every section is managed by separate plant manager and technocrats, above
of all quality assurance through strict vigil under direct control of its
directors The company has fully computerized accounting system, billing, weighment
and other procedure to satisfy the customer's requirement.
Subject is gradually
developing and flourishing under the able crystallized entrepreneurship of
young technocrat Mr. Arunkumar Jain,
cost accountant by profession. Who is leading the Subject family and now,
assisted by his son Mr. Bineetkumar
Jain, PGDBEM. Is now all set to start operating investment and precision
castings unit at their company owned 75000 SQ Yard industrial estate having all
modern testing equipments.
The Company
management has set a state of the art technology project to manufacture
investment castings as first step towards diversification program. The company
is putting up a plant with advance and Modern technology, introducing first
time in this industry "Metal.Refining"
system for better quality product to produce 250MT of Investment Castings per
annum. The plant having advance and modern technology and backed up by sound
technical and financial back-up of subject.
INVESTMENT CASTINGS :
Investment casting
is a method of making small, simple or intricately shaped parts to a relatively
high degree of accuracy and with a smooth surface. The first step in this
process is the manufacture of an aluminum die from which the wax patterns are
produced. Wax is injected into the die under pressure to give a replica of the
finished components. The wax patterns are assembled onto a wax runner or tree.
For small items it is possible to have several hundred patterns on a tree, which
can be cast in one pour, whereas the larger items will be made with only one
per tree.
The complete
assembly is dipped (or ‘invested’) into a wet ceramic-based slurry and coated
with a find dry refractory. Once dry the coating operations are repeated
several times, using coarser grades of refractory, until the mould has
sufficient thickness to withstand the force of the molten metal during the
pouring operation.
After drying the
ceramic shell is placed in a steam oven and the wax is melted out – hence the
name ‘lost wax process.’ The shell is then fired at 1000 0 C to burn off any
residual wax and to strengthen the mould.
Aluminum alloys are
melted in bale-out furnaces, whilst all other alloys are melted in
high-frequency induction furnaces. The metal is poured into a hot shell,
enabling the material to flow into thin wall sections giving fine furnace
detail.
After solidification
and cooling, the ceramic is broken away from the cast and metal and the
castings are cut off the tree. Careful fettling and finishing of the investment
castings is then carried out, process such as heat treatment, machine and
electro-polishing, before final inspection in accordance with customer
requirements.
Type
of Industries Supplied :
Automobiles, Aerospace, Weapon Systems,
Electronics, Medical & Food Process Equipments, Petrochemical, Textile
Equipments, Optical, Metalworking, Artificial Limbs, Computer, Small Arms
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.40.56 |
|
|
1 |
Rs.80.81 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|