MIRA INFORM REPORT

 

 

Report Date :

12.06.2007

 

IDENTIFICATION DETAILS

 

Correct Name :

TURAKHIA FERROMET PRIVATE LIMITED

 

 

Registered Office :

2/3, Ashok Chambers, Devji Ratansey Marg, (Broach Street), Mumbai – 400 009, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

24.05.1994

 

 

Com. Reg. No.:

11-78585

 

 

CIN No.:

[Company Identification No.]

U27200MH1994PTC078585

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMT09896F

 

 

PAN No.:

[Permanent Account No.]

AAACT1424C

 

 

Legal Form :

Private limited liability company

 

 

Line of Business :

To carry on the business as importers of Ferrous and Non-Ferrous Metals, Alloy Steels, Ferro-Alloy, Pig Iron, Wrot Iron, Steel Converts, Rolled Steel Markers, Miners, Smelters, Engineers, Iron & Steel Foundries in all or any of their respective branches, metallurgical prospectors, explorers, contractors and agents.

 

 

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 825000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Registered Office :

2/3, Ashok Chambers, Devji Ratansey Marg, (Broach Street), Mumbai – 400 009, Maharashtra, India

Tel. No.:

91-22-23771482/83/23770902

Fax No.:

91-22-23702648/23702807

E-Mail :

1. turafer@vsnl.net

2. turent@bom3.vsnl.net.in

Area :

1,000 sq.fts (Owned)

 

 

 

 

Branches :

Located at :-

 

KL 5/10/42/3E, Kalamboli, Navi Mumbai – 410 213, Maharashtra

Area :

1,500 sq.fts (Owned)

 

 

DIRECTORS

 

Name :

Mr. Mansukhbhai R. Turakhia

Designation :

Chairman-cum-Managing Director

Address :

141, Shan Apartments, Kashinath Dhuru Road, Opposite Kirti College, Prabhadevi, Mumbai – 400 025

Date of Birth/Age :

13.11.1933

Qualification :

M. A.

Experience :

50 Years

Date of Appointment :

24.11.1994

 

 

Name :

Mr. Manoj M. Turakhia

Designation :

Whole time Director

Address :

1, Shan Apartments, Kashinath Dhuru Road, Opposite Kirti College, Prabhadevi, Mumbai – 400 025

Date of Birth/Age :

29.03.1961

Qualification :

MBA

Experience :

15 Years

Date of Appointment :

24.05.1994

 

 

Name :

Mr. Nikunj M. Turakhia

Designation :

Director

Address :

1, Shan Apartments, Kashinath Dhuru Road, Opposite Kirti College, Prabhadevi, Mumbai – 400 025

Date of Birth/Age :

18.02.1962

Qualification :

B. Tech.

Experience :

12 Years

Date of Appointment :

24.05.1994

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Mr. Manoj M. Turakhia

1

Mr. Mansukhlal R. Turakhia

1

Mr. Nikunj Turakhia

1

Mr. Mansukhlal Raghunath Turakhia

& Mrs. Nutanben Mansukhlal Turakhia

550

Mr. Manoj Mansukhlal Turakhia

& Mrs. Smita Manoj Turakhia

52990

Mr. Nikunj Mansukhlal Turakhia

& Mrs. Heena Nikunj Turakhia

450

Mrs. Nutanben Mansukhlal Turakhia

& Mr. Mansukhlal Raghunath Turakhia

550

Mrs. Smita Manoj Turakhia

& Mr. Manoj Mansukhlal Turakhia

650

Mansukhlal Raghunath Turakhia (HUF)

8357

Manoj Mansukhlal Turakhia (HUF)

24500

Mr. Anooj Manoj Turakhia (Minor)

420

Dytel Finance and Investments Private Limited

14000

Emeca Finance and Investments Private Limited

15000

Manhar Properties Private Limited

15000

Pratibha Finance and Investments Private Limited

13000

Rachana Finance and Investments Private Limited

15000

Repute Properties Private Limited

16000

Sajal Finance and Investments Private Limited

12000

Total

215000

 

 

BUSINESS DETAILS

 

Line of Business :

To carry on the business as importers of Ferrous and Non-Ferrous Metals, Alloy Steels, Ferro-Alloy, Pig Iron, Wrot Iron, Steel Converts, Rolled Steel Markers, Miners, Smelters, Engineers, Iron & Steel Foundries in all or any of their respective branches, metallurgical prospectors, explorers, contractors and agents.

 

 

Products :

Product Description

ITC Code

Iron and Steel alloy compounds

K#3112

Refined, special and tool steels and their semi finished products (209)

K#3405

 

 

Exports :

 

Countries :

Singapore and Hong Kong

 

 

Imports :

 

Countries :

Europe, U.S.A. and Far East

 

 

Terms :

 

Selling :

Credit (90 days) terms

 

 

Purchasing :

Import : L/C, D/A and D/P terms

Purchase : L/C terms

 

GENERAL INFORMATION

 

No. of Employees :

22

 

 

Bankers :

Ř                   Bank of Baroda, Mandvi Branch, Kanmoor House, Narsi Natha Street,

Mumbai – 400 009, Maharashtra, India

 

Ř                   Bank of India, Mandvi, Mumbai, Maharashtra, India

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

A. C. Kamdar & Company

Chartered Accountants

Address :

Jolly Maker Chambers III, Nariman Point, Mumbai-400021, Maharashtra, India

 

 

Associates/Subsidiaries :

·         Turakhia Enterprises

2/3, Ashok Chambers, Devji Ratansy Marg,

Mumbai – 400 009, Maharashtra

--Exporter of Iron and Steel Items

 

·         Manoj Enterprises

2/3, Ashok Chambers, Devji Ratansy Marg,

Mumbai – 400 009, Maharashtra

--Exporter of Granite and Marble Slabs/Tiles

 

·         Standard  Conduits Limited

2/3, Ashok Chambers, Devji Ratansy Marg,

Mumbai – 400 009, Maharashtra

--Importer, Dealers of Iron and Steel, Plastic Part of Lighting and Panel Fittings

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

300000

Equity Shares

Rs.10/- each

Rs.3.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

300000

Equity Shares

Rs.10/- each

Rs.3.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

30.000

21.500

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

176.305

74.812

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

206.305

96.312

LOAN FUNDS

 

 

 

1] Secured Loans

 

4.808

8.869

2] Unsecured Loans

 

11.290

53.869

TOTAL BORROWING

 

16.098

62.738

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

222.403

159.050

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.693

0.821

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.005

0.005

DEFERREX TAX ASSETS

 

0.411

0.072

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

172.290

43.032

 

Sundry Debtors
 

183.474

198.165

 

Cash & Bank Balances
 

53.447

56.122

 

Other Current Assets
 

66.684

0.000

 

Loans & Advances
 

50.059

51.551

Total Current Assets
 

525.954

348.870

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

285.163

184.991

 

Provisions
 

19.497

5.727

Total Current Liabilities
 

304.660

190.718

Net Current Assets
 

221.294

158.152

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

222.403

159.050

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover (including other income)

 

1079.766

991.779

 

 

 

 

Profit/(Loss) Before Tax

 

--

--

Provision for Taxation

 

--

--

Profit/(Loss) After Tax

 

38.676

15.150

 

 

 

 

Expenditures :

 

 

 

 

Interest

 

10.859

6.003

 

Depreciation & Amortization

 

0.164

0.094

 

Other Expenditure

 

1030.067

970.523

Total Expenditure

 

1041.090

976.620

 

 

RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

3.58

1.53

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

3.58

1.53

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

7.34

4.33

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.19

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.55

2.63

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.73

1.83

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8 Particular for creation or modification of charges 

Corporation identity number or foreign company registrations number of the company 

U27200MH1994PTC078585

Name of the company

TURAKHIA FERROMET PRIVATE LIMITED

Address

2/3, Ashok Chambers, Devji Ratansey Marg, (Broach Street), Mumbai – 400 009, Maharashtra, India

This Form is for

Modification of charge

Type of Charges

Hypothecation

Particular of the charge holder 

Bank of India, Mandvi Branch, Kanmoor House, Narsi Natha Street,

Mumbai – 400 009, Maharashtra, India

Nature or description of the instrument creating charge  

Agreement of hypothecation of plant and machinery, stocks and book debts

Date of the instrument creating charge

13.02.1998

Amount Secure by the charge

Rs.87.500 millions

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

Interest @17.35% p.a.

Margin 25%

To secure CC Rs.7.500 millions Import LC (DA/DP) facilities Rs.80.000 millions together with interest, cost, expenses, charges, commission etc.

Description of the property charge whether it is a charge on

Plant and machinery

Stock in trade

Book debts

Modification charge

Charge identification number of the charge to be modified

D-15/16 Regd. On 11-3-98

Brief description of the instrument modifying the charge under section 135

Supplemental deed of hypothecation of plant and machinery, stocks and book debts

Date of instrument modifying the charge

09.03.2006

Particulars of the Property charged  

Hypothecation of all present and future tangible movable machineries and plant whether installed or not and whether lying loose or in cases. Tangible movable properties and assets of whatsoever nature including stock of raw material such as low carbon hot rolled coils seconds/ defective, soft commercial quality, flat rolled products of mild steel etc. and semi finished and finished goods. All book debts, outstanding moneys, receivables, claims and bills present and future.

Particulars of the present modification

The original charge dated 13.02.1998 for Rs.87.500 millions was modified on 17.07.1999 enhancing the limit from Rs.87.500 millions to Rs.99.000 millions. Further modified on 13.07.2005 enhancing the limit from Rs.99.000 millions to Rs.189.000 millions. Further modified on 13.07.2005 enhancing the total facilities from Rs.189.000 millions to Rs.231.500 millions (consisting of a) CC (Stocks) Rs.10.000 millions, b) ITR Rs.16.500 millions, maximum of a and b Rs.19.000 millions, c) LC (DP) Rs.50.000 millions and d) LC (DA 180 days) Rs.162.500 millions aggregate of a, b, c and d Rs.231.500 millions).

 

Now further modified on 09.03.2006 enhancing the facilities from Rs.231.500 millions to Rs.410.000 millions consisting of CC Rs.10.000 millions and LC (DA 180 days) Rs.400.000 millions. Interest @ 2% over BPLR at present 12.75% with monthly rest for cash credit.

 

Corporation identity number or foreign company registrations number of the company 

U27200MH1994PTC078585

Name of the company

TURAKHIA FERROMET PRIVATE LIMITED

Address

2/3, Ashok Chambers, Devji Ratansey Marg, (Broach Street), Mumbai – 400 009, Maharashtra, India

This Form is for

Modification of charge

Type of Charges

Book debts

Movable property

Particular of the charge holder 

Bank of India, Mandvi Branch, Kanmoor House, Narsi Natha Street,

Mumbai – 400 009, Maharashtra, India

Nature or description of the instrument creating charge  

Supplemental deed of hypothecation of plant and machinery, stocks and book debts

Date of the instrument creating charge

06.03.2007

Amount Secure by the charge

Rs.460.000 millions

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

Rate of interest :

CC : 2% over BPLR minimum 14.50% p.a. or as notified by Bank form time to time. L/C : as per guidelines.

 

Terms of repayment

On demand

 

Margin

As per stipulated by Bank from time to time

 

Extent and operation of the charge

Security in favour of Bank as first charge fro payment of all monies including the principal sums/ interest/ commission, costs, charges and expenses and all other moneys, whatsoever due owing of or in connection with or in anywise concerning or relating to the said facilities agreed to be granted and/ or granted by the Bank ot the borrower as aforesaid and also for due repayment of all present and future continued in : Others

 

Others

Indebtedness and liabilities of the borrower to the Bank of any kind in any manner whether solely or jointly, primary or collateral, accrued or accruing with all relative interest/ commission, charges, costs (between Advocate and client) and expenses.

 

Revised facilities and limits : 1 C/C Hypothecation Stocks Rs.10.000 millions, 2 L/C DA 180 days Rs.400.000 millions, 3 L/C (DP Adhoc) Rs.50.000 millions, Aggregate Rs.460.000 millions.

Date of instrument modifying the charge

09.03.2006

Particulars of the Property charged   

All tangible movable machineries and plant both present and future

All tangible movable properties and assets of whatsoever nature (both present and future) at borrower’s premises/ elsewhere in transit or wherever else

All present and future book debts, outstanding, money receivables, claims, bills which are now due and owing or which may any time hereafter during the continuance of this security become due and owing to the Borrower.

Particulars of the present modification

5th modification. The charge on the hypothecated assets is increased from Rs.410.000 millions to Rs.460.000 millions.

 

BUSINESS

 

Subject is engaged in to carry on the business as importers of Ferrous and Non-Ferrous Metals, Alloy Steels, Ferro-Alloy, Pig Iron, Wrot Iron, Steel Converts, Rolled Steel Markers, Miners, Smelters, Engineers, Iron & Steel Foundries in all or any of their respective branches, metallurgical prospectors, explorers, contractors and agents.

 

The company's fixed assets of important value include furniture & fixtures, office equipments, computers & printers and air-conditioners.

 

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.40.91

UK Pound

1

Rs.80.46

Euro

1

Rs.54.60

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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