MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SREE RENGARAAJ STEEL AND ALLOYS PRIVATE LIMITED |
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Registered Office : |
50-A, [New No. 99], |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.03.1991 |
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Com. Reg. No.: |
18-3199 |
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CIN No.: [Company
Identification No.] |
U27310TZ1991PTC003199 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES19415E |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
To set up steel furnaces and continuous casting and rolling millplant for
producing steel and alloys steel ingots, steel and alloys steel billets and
all kinds and sizes of re-rolled sections. |
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 120000 |
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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 : |
50-A, [New No. 99], |
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Tel. No.: |
91-427-2270235 / 2270235 |
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Fax No.: |
91-427-2270238 / 2270237 |
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E-Mail : |
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Factory 1 : |
No.36/3-4, |
DIRECTORS
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Name : |
Mr. P. V. Pandurangan |
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Designation : |
Chairman cum Managing Director |
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Address : |
54, New Fairlands, |
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Date of Birth/Age : |
03.12.1926 |
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Date of Appointment : |
02.02.1991 |
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Name : |
Mr. P. Sampath Kumar |
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Designation : |
Managing Director |
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Address : |
54, New Fairlands, |
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Date of Birth/Age : |
20.12.1953 |
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Date of Appointment : |
02.02.1991 |
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Name : |
Mr. P. Siva Kumar |
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Designation : |
Director |
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Address : |
1/59, Thoppukadu, 3rd Cross, Brindavan Road, |
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Date of Birth/Age : |
11.07.1958 |
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Date of Appointment : |
02.02.1991 |
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Name : |
Mr. P. Srinivasan |
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Designation : |
Director |
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Address : |
No. 17/1, V K Koil Street, Near Shivaya Nagar, Neew Fairlands, Salem –
636016, Tamilnadu, India |
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Date of Birth/Age : |
19.06.1960 |
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Date of Appointment : |
02.02.1991 |
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Name : |
Ms. S. Indumathi |
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Designation : |
Director |
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Address : |
54, New Fairlands, |
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Date of Appointment : |
25.04.1997 |
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Name : |
Ms. S. Gandhimathi |
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Designation : |
Director |
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Address : |
1/59, Thoppukadu, 3rd Cross, Brindavan Road, |
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Date of Appointment : |
25.04.1997 |
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Name : |
Ms. S. Usha |
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Designation : |
Director |
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Address : |
No. 17/1, V K Koil Street, Near Shivaya Nagar, Neew Fairlands, Salem –
636016, Tamilnadu, India |
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Date of Appointment : |
25.04.1997 |
KEY EXECUTIVES
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Name : |
Mr. S Solaiyappan |
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Designation : |
Practicing Company Secretary |
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Address : |
47 Jawahar Midls Quarters, Nehru Nagaram, Suramangalam Main Road,
Salem-636005 |
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Mobile No.: |
91-9843150006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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P. V. Pandurangan |
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9750 |
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P. Sampath Kumar |
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23000 |
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P. Siva Kumar |
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22500 |
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P. Srinivasan |
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21660 |
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S. Indumathi |
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10920 |
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S. Gandhimathi |
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11420 |
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S. Usha |
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12250 |
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P. Ethirajammal |
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9250 |
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P. Sampath Kumar – HUF |
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3250 |
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P. Sivakumar – HUF |
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3250 |
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P. Srinivasan – HUF |
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3250 |
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S. Pradeep Kumar |
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3250 |
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S. Harish |
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3250 |
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S. Shyam Sundar |
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3250 |
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S. Vijay Sundar |
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3250 |
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S. Kumaran |
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3250 |
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S. Badri Prasad |
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3250 |
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Total |
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150000 |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
To set up steel furnaces and continuous casting and rolling millplant
for producing steel and alloys steel ingots, steel and alloys steel billets
and all kinds and sizes of re-rolled sections. |
GENERAL INFORMATION
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Supplier: |
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Customers: |
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Bankers : |
The South Indian
Bank Limited 13-16, Light
house Complex, Four Roads, ICICI Bank
Limited |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. Subramanian Chartered Accountants |
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Address : |
Sree Balaji Complex, 7, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100/- each |
Rs. 15.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100/- each |
Rs. 15.000 Millions |
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FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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15.000 |
15.000 |
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2] Share Application Money |
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7.000 |
0.000 |
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3] Reserves & Surplus |
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9.591 |
9.154 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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31.591 |
24.154 |
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LOAN FUNDS |
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1] Secured Loans |
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35.907 |
17.638 |
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2] Unsecured Loans |
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0.100 |
0.170 |
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TOTAL BORROWING |
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36.007 |
17.808 |
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DEFERRED TAX LIABILITIES |
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0.862 |
1.319 |
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TOTAL |
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68.460 |
43.281 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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9.358 |
12.129 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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103.704 |
104.865 |
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Sundry Debtors |
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80.567 |
63.963 |
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Cash & Bank Balances |
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3.639 |
0.442 |
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Other Current Assets |
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8.272 |
5.849 |
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Loans & Advances |
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31.030 |
18.748 |
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Total
Current Assets |
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227.212 |
193.867 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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154.516 |
151.611 |
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Provisions |
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13.594 |
11.104 |
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Total
Current Liabilities |
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168.110 |
162.715 |
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Net Current Assets |
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59.102 |
31.152 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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68.460 |
43.281 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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967.004 |
845.376 |
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Other Income |
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5.211 |
1.567 |
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Total Income |
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972.215 |
846.943 |
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Profit/(Loss) Before Tax |
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3.366 |
3.376 |
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Provision for Taxation |
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1.218 |
1.258 |
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Profit/(Loss) After Tax |
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2.148 |
2.118 |
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Total Expenditure |
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965.523 |
867.076 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.22 |
0.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.35 |
0.40 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.42 |
1.64 |
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Return on Investment (ROI) (PBT/Networth) |
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0.11 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
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6.46 |
7.47 |
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Current Ratio (Current Asset/Current Liability) |
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1.35 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
SREE RENGARAAJ
STEEL AND ALLOYS PRIVATE LIMITED |
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Presented By |
P Sampath Kumar |
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1) Date and description of instrument creating the change |
Deed of
hypothecation of goods for Inland / Import L C dated 11.09.1997 Deed of
hypothecation of machineries other movables and title deed of immovable properties
dated 11.09.1997 Deed of
hypothecation of goods for cash credit dated 11.09.1997 Deed of
hypothecation of machineries and movables for cash credit dated 11.09.1997 |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Advance payable
on demand rate of interest will be charged. |
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5) Name and Address and description of the person entitled to the charge. |
The South Indian
Bank Limited 13-16, Light
house Complex, Four roads |
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6) Date and brief description of instrument modifying the charge |
Deed of
hypothecation of goods for Inland / Import L C dated 24.09.1999 Deed of hypothecation
of machineries other movables and title deed of immovable properties dated
24.09.1999 Deed of
hypothecation of goods for cash credit dated 24.09.1999 Deed of
hypothecation of book debts dated 24.09.1999 Deed of agreement
for Usuance bills discounting dated 24.09.1999 Deed of agreement
for negotiate discounting Cheques drafts dated 24.09.1999 |
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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. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U27310TZ1991PTC003199 |
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Name of the
company |
SREE RENGARAAJ STEEL AND ALLOYS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
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Type of charge |
Immovable
Property |
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Particular of
charge holder |
The South Indian
Bank Limited 13-16, Light
house Complex, Four roads |
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Nature of
description of the instrument creating or modifying the charge |
E. M. Created on
29.01.2007 and confirmed by letter dated 30.01.2007 |
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Date of
instrument Creating the charge |
29.01.2007 |
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Amount secured by
the charge |
Rs. 459.725
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest CCOL : BPLR 3 %
[Presently 11%] Terms of
repayment As per the
agreement Margin : CCOL :
Margin 25 % Extent and
operation of charge The limits given
to SREE
RENGARAAJ STEEL AND ALLOYS PRIVATE LIMITED P Srinivasan, |
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Short particulars
of the property charged |
Immovable
property |
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.93 |
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1 |
Rs.80.46 |
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Euro |
1 |
Rs.54.76 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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