MIRA
INFORM REPORT
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Report Date : |
08.06.2007 |
IDENTIFICATION DETAILS
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Name : |
STEEL PRODUCTS LIMITED |
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Registered Office : |
96, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.10.1917 |
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Com. Reg. No.: |
21-2880 |
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CIN No.: [Company
Identification No.] |
L99999WB1917PLC002880 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS01812G |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of |
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 190000 |
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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. 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 : |
96, |
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Tel. No.: |
91-33-24597879 |
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Fax No.: |
91-33-24593944 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Hemant Kumar Khaitan |
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Designation : |
Managing Director |
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Address : |
4 Queens Park, Ballygunge, Kolkata – 700019, West |
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Date of Birth/Age : |
19.01.1954 |
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Date of Appointment : |
05.09.1997 |
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PAN No.: |
AFUPK9392C |
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Name : |
Mr. Sharad Kumar Khaitan |
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Designation : |
Joint Managing Director |
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Address : |
4 Queens Park, Ballygunge, Kolkata – 700019, West |
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Date of Birth/Age : |
18.08.1956 |
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Date of Appointment : |
05.09.1997 |
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Election Commission Identity Card No.: |
WB23146189436 |
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Name : |
Mr. Anil Kumar Poddar |
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Designation : |
Director |
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Address : |
13 Queens Park, Ballygunge, Kolkata – 700019, West |
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Date of Birth/Age : |
21.12.1955 |
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Date of Appointment : |
28.05.1997 |
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Election Commission Identity Card No.: |
WB23146189138 |
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Name : |
Dr. Gora Ghose |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
18.10.1948 |
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Date of Appointment : |
23.07.1999 |
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Election Commission Identity Card No.: |
WB23152615108 |
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Name : |
Mr. Manas Ranjan Palit |
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Designation : |
Director |
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Address : |
8/78A/1, Netaji Nagar, Kolkata – 700092, West |
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Date of Birth/Age : |
01.12.1954 |
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Date of Appointment : |
28.08.2003 |
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Election Commission Identity Card No.: |
WB23150636366 |
SHAREHOLDING PATTERN
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Category |
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Percentage of
Holding |
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Nationalised or other banks |
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2.33 % |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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0.49 % |
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Bodies corporate |
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0.05 % |
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Directors of relatives of directors |
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79.80 % |
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Other top fifty shareholders |
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9.87 % |
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Others |
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7.46 % |
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Total |
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100.00
% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of |
GENERAL INFORMATION
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Customers : |
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Bankers : |
Allahabad Bank, Kolkata Main Branch, 14, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountants |
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Address : |
14, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
140000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.400 Millions |
|
60000 |
Preference Shares |
Rs. 10/- each |
Rs. 0.600 Million |
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Total |
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Rs. 2.000
Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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70000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.700
Million |
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 |
0.700 |
0.700 |
0.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
47.314 |
39.790 |
38.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
48.014 |
40.490 |
39.400 |
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LOAN FUNDS |
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1] Secured Loans |
42.000 |
23.798 |
[0.500] |
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2] Unsecured Loans |
8.772 |
5.919 |
8.800 |
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TOTAL BORROWING |
50.772 |
29.717 |
8.300 |
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DEFERRED TAX LIABILITIES |
0.144 |
1.048 |
0.000 |
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TOTAL |
98.930 |
71.255 |
47.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
20.354 |
16.935 |
18.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.403 |
0.403 |
0.400 |
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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 |
44.485 |
27.674 |
27.400 |
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Sundry Debtors |
69.411 |
41.996 |
22.600 |
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Cash & Bank Balances |
17.080 |
20.920 |
18.000 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
15.968 |
4.817 |
8.600 |
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Total
Current Assets |
146.944 |
95.407 |
76.600
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
61.401 |
39.295 |
45.300 |
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Provisions |
7.370 |
2.195 |
2.000 |
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Total
Current Liabilities |
68.771 |
41.490 |
47.300
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Net Current Assets |
78.173 |
53.917 |
29.300
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
98.930 |
71.255 |
47.700 |
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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 |
198.116 |
122.734 |
115.100 |
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Other Income |
33.854 |
42.154 |
[10.900] |
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Total Income |
231.970 |
164.888 |
104.200 |
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Profit/(Loss) Before Tax |
13.208 |
1.451 |
14.700 |
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Provision for Taxation |
4.059 |
0.326 |
2.000 |
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Profit/(Loss) After Tax |
9.149 |
1.125 |
12.700 |
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Expenditures : |
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Raw Material Consumed |
169.439 |
104.710 |
58.700 |
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Excise
Duty |
0.000 |
0.000 |
0.100
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Other
Manufacturing Expenses |
0.000 |
0.000 |
11.300
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Selling
and Administration Expenses |
0.000 |
0.000 |
0.900
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Miscellaneous
Expenses |
0.000 |
0.000 |
6.700
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Purchases made for re-sale |
0.188 |
7.066 |
0.000 |
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Consumption of stores and spares parts |
7.812 |
6.615 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[24.204] |
3.958 |
0.000 |
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Salaries, Wages, Bonus, etc. |
3.239 |
2.432 |
2.400 |
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Managerial Remuneration |
0.741 |
0.736 |
0.000 |
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Payment to Auditors |
0.054 |
0.059 |
0.000 |
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Interest |
4.241 |
2.743 |
1.800 |
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Insurance Expenses |
0.098 |
0.056 |
0.000 |
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Power & Fuel |
9.075 |
6.590 |
5.600 |
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Depreciation & Amortization |
2.032 |
2.198 |
2.000 |
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Other Expenditure |
46.047 |
26.274 |
0.000 |
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Total Expenditure |
218.762 |
163.437 |
89.500 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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Full
Year |
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Sales
Turnover |
|
|
426.400 |
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Other
Income |
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|
8.000 |
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Total
Income |
|
|
434.400 |
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Total
Expenditure |
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|
397.100 |
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Operating
Profit |
|
|
37.300 |
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Interest |
|
|
8.800 |
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Gross
Profit |
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|
28.500 |
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Depreciation |
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|
2.200 |
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Tax |
|
|
8.900 |
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Reported
PAT |
|
|
17.200 |
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Dividend
(%) |
|
|
0.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.90 |
0.48 |
0.69 |
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Long
Term Debt-Equity Ratio |
0.90 |
0.48 |
0.69 |
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Current
Ratio |
2.12 |
1.89 |
1.76 |
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TURNOVER
RATIOS |
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Fixed
Assets |
6.85 |
4.55 |
4.87 |
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Inventory |
6.62 |
5.21 |
2.90 |
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Debtors |
4.29 |
4.44 |
4.81 |
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Interest
Cover Ratio |
3.36 |
1.38 |
9.17 |
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Operating
Profit Margin(%) |
9.12 |
5.09 |
16.07 |
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Profit
Before Interest And Tax Margin(%) |
8.28 |
3.56 |
14.34 |
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Cash
Profit Margin(%) |
4.64 |
2.30 |
12.77 |
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Adjusted
Net Profit Margin(%) |
3.81 |
0.77 |
11.03 |
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Return
On Capital Employed(%) |
23.91 |
8.97 |
33.74 |
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Return
On Net Worth(%) |
20.85 |
2.86 |
43.87 |
LOCAL AGENCY FURTHER INFORMATION
Subject is finest hot-dip galvanizing plants
in
Bankers Charges
Report as per Registry
|
Name of the company |
STEEL PRODUCTS LIMITED |
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Presented By |
Allahabad Bank, Kolkata Main
Branch, 14, |
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1) Date and description of instrument creating the change |
General letter of
Hypothecation dated 03.11.1990 The original
charge was registered on 08.04.1990 and subsequent modification are as
follows :
In the last
modification company created EM in respect of properties as Mouza Chamrail
and Baltikuri |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 1.210
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 by
way of first charge all the present and future products, goods and movables
property of any kind of the company including all movable plant engines and
machinery, apparatus tools, motor, lorries and cars, furniture and stocks of
Hamilton Poles and transmission lines Towers etc. and other materials whether
raw or manufactured of in process of manufacture and other stocks and other stocks and stones kept or to be kept
in the company’s premises or godowns in the state of West Bengal or wherever
else and also all present and future book debts, outstanding moneys,
receivables claims, bills contracts engagements, securities, investments,
cash in hand and at Banks etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest as may
be fixed by the Bank form time to time |
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5) Name and Address and description of the person entitled to the charge. |
Allahabad Bank, Kolkata Main Branch, 14, |
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6) Date and brief description of instrument modifying the charge |
General letter of
mortgagor confirming deposit of title deeds through constructive delivery
dated 29.11.2004 |
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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. |
By present
modification the overall limit has been enhanced form Rs. 32.700 Millions
consisting of the following limits
Interest and
other charges will be paid as per terms and conditions of Sanction Letter. Other terms and conditions
are as per terms and conditions of above referred documents and sanction
letter of the Bank. Other terms and
conditions save as modified above remain in full force. |
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90249877 |
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Corporate
identity number of the company |
L99999WB1917PLC002880 |
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Name of the
company |
STEEL PRODUCTS LIMITED |
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Address of the
registered office or of the principal place of business in |
96, |
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Type of charge |
Book Debts Movables Property Immovable Property |
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Particular of
charge holder |
Allahabad Bank, Kolkata Main Branch, 14, |
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Nature of
description of the instrument creating or modifying the charge |
General letter of
Hypothecation Supplemental
letter of mortgagor confirming deposit of the deeds |
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Date of instrument
Creating the charge |
13.01.2007 |
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Amount secured by
the charge |
Rs. 137.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of
interest : Interest and other
charged will be paid as per terms and conditions of Sanction Letter of Bank,
however the same is subject to change form time to time. Terms of
repayment : The working
capital shall be repayable on demand. Margin : The borrower
shall maintain appropriate margin as stipulated in the sanction terms. Extent and
operation of the charge : The security
created under said hypothecation and
mortgage is by way of first charge and shall operate as continuing
security. Others : The company
hereby declares that all the charged property now existing are absolute
property of and at the slow disposal of the company and fee from any prior
charge or encumbrance and undertakes that all future property shall like wise
be the unencumbered an absolute and disposable property of the company. Other terms and
conditions are as per terms and conditions of the above referred
hypothecation agreement and sanction letter of the banks. |
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Date of latest
modification prior to the present modification |
11.03.2006 |
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Particulars of
the present modification |
By this
modification the overall charge stands enhanced form Rs. 102.500 Millions to
Rs. 137.500 Millions. The nature of
facilities :
Other terms and
conditions save as modified, remained unchanged. |
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.40.91 |
|
|
1 |
Rs.80.46 |
|
Euro |
1 |
Rs.54.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
52 |
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 |
|