MIRA
INFORM REPORT
|
Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
BELLARY
IRON ORES PRIVATE LIMITED |
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Registered Office : |
60/356/A,
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.01.1961 |
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Com. Reg. No.: |
08-6822 |
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CIN No.: [Company Identification No.] |
U13100KA1985PTC006822 |
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TAN No.: [Tax Deduction & Collection Account No.] |
BLRB01727F |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Mining
Activity of Iron Ore Fines and Lumps, Processors of Iron Ore. Company is also
into wind power generation and Planning for expansion. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 3000000 |
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Status : |
Good |
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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 fine track records.
Available information’s high financial responsibility of the company. Directors
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are always correct and as per
commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
60 /
356 / A, |
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Tel. No.: |
91-8392-242000 / 244300 / 244500 / 243900 / 242421 |
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Fax No.: |
91-8392-243990 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr.
Santosh Kumar Modi |
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Designation : |
Chairman |
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Address : |
36/25, Modi Niketan, |
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Date of Birth/Age : |
15.01.1951 |
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Date of Appointment : |
29.04.1979 |
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Name : |
Mrs.
Manju Modi |
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Designation : |
Whole
Time Director |
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Address : |
36/25, Modi Niketan, |
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Date of Birth/Age : |
23.06.1952 |
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Date of Appointment : |
25.04.1998 |
KEY EXECUTIVES
|
Name : |
Mr. R C Venkatesh Rao |
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Designation : |
Company Secretary |
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Mobile No.: |
91-9845065943 |
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E-mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No.
of Shares |
|
Santosh
Kumar Modi |
|
5185 |
|
Manju
Modi |
|
4565 |
|
Swetha Modi |
|
200 |
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Total
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|
9950 |
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Equity
Share Breakup |
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Category
|
|
Percentage
of Holding |
|
Directors or relatives of directors |
|
100.00
% |
BUSINESS DETAILS
|
Line of Business : |
Mining
Activity of Iron Ore Fines and Lumps, Processors of Iron Ore. Company is also
into wind power generation and Planning for expansion. |
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Products : |
Calibrated Calibrated |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Domestic Clients
Overseas Client
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Bankers : |
v
State Bank of v
Sundaram Finance Limited |
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Facilities
: |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name
: |
T.C.
Goud & Company Chartered
Accountants |
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Address
: |
H R J Petrol Bunk Building, Near Clock Tower, Bellary –
583103, Karnataka, India |
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Group Companies : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000 |
Equity Shares |
Rs. 1000.00 each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9950 |
Equity Shares |
Rs. 1000.00 each |
Rs.
9.950 Millions |
FINANCIAL DATA
[all figures
are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
9.950 |
9.950 |
9.950 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
753.891 |
456.567 |
241.966 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
763.841 |
466.517 |
251.916 |
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LOAN FUNDS |
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|
1] Secured Loans |
380.649 |
278.104 |
17.319 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
380.649 |
278.104 |
17.319 |
|
|
DEFERRED TAX LIABILITIES |
76.450 |
25.562 |
3.200 |
|
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Creditors for Capital Goods |
0.517 |
0.000 |
0.000 |
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TOTAL |
1221.457 |
770.183 |
272.435 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
454.340 |
250.637 |
39.645 |
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Capital work-in-progress |
212.940 |
37.231 |
0.000 |
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INVESTMENT |
109.408 |
11.272 |
0.229 |
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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 |
117.936
|
185.899 |
225.305. |
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Sundry Debtors |
194.453
|
93.181 |
91.286 |
|
|
Cash & Bank Balances |
316.260
|
266.724 |
101.927 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
86.109
|
192.538 |
32.439 |
|
Total Current Assets |
714.758
|
738.341 |
450.957 |
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|
Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
126.226
|
135.778 |
218.396 |
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Provisions |
143.764
|
131.520 |
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Total Current Liabilities |
269.990
|
267.298 |
218.396 |
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Net Current Assets |
444.769
|
471.044 |
232.561 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1221.457 |
770.183 |
272.435 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover [including other income] |
44.529 |
33.520 |
1306.107 |
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|
Total
Income |
44.529 |
33.520 |
1306.107 |
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Profit/(Loss) Before
Tax |
5.747 |
4.924 |
508.229 |
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Provision for
Taxation |
1.404 |
1.805 |
136.381 |
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Profit/(Loss)
After Tax |
4.343 |
3.119 |
371.848 |
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Export Value |
0.000 |
0.000 |
1219.200 |
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Import Value |
0.000 |
0.000 |
9.700 |
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Expenditures: |
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Total Expenses |
38.559 |
28.316 |
797.878 |
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Depreciation |
0.223 |
0.280 |
0.000 |
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Total Expenditure |
38.782 |
28.596 |
797.878 |
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KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
9.75
|
9.30 |
28.47 |
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Net Profit Margin (PBT/Sales) |
(%) |
12.91
|
19.69 |
38.91 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.49
|
0.50 |
103.59 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.01
|
2.02 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.85
|
1.17 |
0.93 |
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Current Ratio (Current Asset/Current
Liability) |
|
2.65
|
2.76 |
2.06 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges Report as per Registry
|
Name of the company |
BELLARY IRON ORES PRIVATE
LIMITED |
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Presented By |
S.
K. Modi, Managing Director |
|
1) Date and description of
instrument creating the change |
General
Agreement for the grant of Small Scale Industrial Advance and Hypothecation
of Movable, Book Debts and other assets dated 06.03.2000 |
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2) Amount secured by the
charge/amount owing on the securities of charge |
Rs.
3.000 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 |
Working
capital limit against Stock and Receivables |
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4) Gist of the terms and
conditions and extent and operation of the charge. |
Hypothecation
of Stock and Receivables |
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5) Name and Address and
description of the person entitled to the charge. |
State
Bank of Main
Branch, |
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6) Date and brief description of instrument
modifying the charge |
Supplemental
General Agreement for the grant of Small Scale Industrial Advances and
Hypothecation of goods, Book Debts and other assets dated 29.11.2001 for
additional limit from 1.500 Millions to 3.000 Millions on working capital. |
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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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Corporate
identity number of the company |
U13100KA1985PTC006822 |
|
Name
of the company |
BELLARY
IRON ORES PRIVATE LIMITED |
|
Address
of the registered office or of the principal place of business in |
60/356/A,
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|
This
form is for |
Creation of charge |
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Type
of charge |
Hypothecation |
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Particular
of charge holder |
U65191TN1954PLC002429 Sundaram Finance Limited 21, Patulous Road, Chennai – 600002, |
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Nature
of instrument creating charge |
Loan agreement bearing cont no AB – 1802 |
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Date
of instrument Creating the charge |
01.06.2006 |
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Amount
secured by the charge |
Rs. 23.400
Millions |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
The
total amount of Rs. 25.277 Millions is repayable in 22 monthly installments. 1st
installment of Rs. 2.198 Millions and 21 installments of Rs. 1.099 Millions
each rate of interest : 9.34 % |
|
Description
of the property charged indicating whether it is a charged on |
Plant
and Machinery |
|
Particulars
of the property charged |
No – 600
KW, Pawan Shakthi wind electric generator locating at no. 28/36, Modi
Niketan, |
AS PER WEBSITE
Mr. S. K. Modi son of Late Mr. G.
L. Modi soon after his graduation in commerce in the year 1972 stepped into
He is responsible for increasing
the level of production in almost all the mines. In the year 2002-2003, he
applied for Export License of 5 Lacs tones of +64% Fe Iron
Thereafter in the year 2003, he
has negotiated and taken over the mining company of M/s. Suggalamma Gudda
Mining & Company. This mining lease though in Karnataka is adjoining to the
mining lease of H. Siddhapuram Mines.
He has now applied for a mining
lease over an area of about 200 Ha which remain adjoining to both Suggalamma
Gudda Mining & Company, as well of Y. Mahabaleswarappa & Sons and is
quite hopeful of getting the mining lease very shortly. Thus, 90% of the total
mineral reserve of
During the year 2003-2004, he has
completed shipments from almost all the ports such as
Bellary Iron Ores Private
Limited (BIOP) is involved in production of
iron ores since the year 1976. The mining operations were commissioned in the
year since 1976 at their mining lease under the name of "H. Siddhapuram
Iron Ore Mine" located near H.Siddapuram village, D .Hirehal Mandal,
Rayadurg Taluk, Ananthapur District of Andhra Pradesh. The total mining lease
area (15o 04' 17" - 15o 04' 38" North Laitude
and between East 76o 49' 32" - 76o 49’ 57"
Longitude) falls under copper mountain hill range which is a part of the
The strengths of the company lie
in
Large & highly productive
lease holdings.
High production capacity.
Consistency of quality & timely
dispatch schedules.
Long experience in mining &
willingness to accept new technology.
A team desirous of excellence,
strong managerial & technical skills.
Capacity to transport from
multiple railway outlets & proximity to 3 large ports namely Vizag,
A harmonious Industrial relation.
Investment in R&D.
Principled approach to business.
Positive Outlook.
Environment friendly mining
operations.
Excellent track record.
A debt free company.
Bellary Iron Ores produces high grade iron ore concentrate which is ideal
for use as blast furnaces and for pelletisation. The concentrate is being used
in the steel plants in
Quality
BIOP maintains quality in its transactions with customers by
being responsive and offering timely services. The company's strength lies in
its relationship with its clients which are based on cooperation and devising
mutually satisfactory outcomes. They at BIOP strive towards maximizing customer
satisfaction.
Infrastructure
They have a strong &
comprehensive infrastructure housing facilities to carry out all transactions
end to end . Their key competency lies in facilitating procurement, transportation
and shipments. This work profile includes procurement for buyer, arranging
transportation to port, arranging plots at the port, loading on ship and
documentation. On global projects they work on supervision fee or payout, based
on product on offer. All dealings are transparent with full access to buyer and
seller.
Latest Developments
Bellary Iron Ores P Limited has
recently commissioned its own Railway siding near their mines. The name of the
siding is 'BIOP SIDING'. This siding has got platform type loading
facility and can accommodate four types of material. Two rakes can be loaded at
a time. The Railways have declared this siding as 'Engine one load siding'
i.e. the loading of 58 boxes (3600 MT) will be completed within three hours.
Shortly this siding will have mechanical loading facility. The siding is
equipped for 24 hours loading and is one of the state of the art model siding
in the Sector. At present rakes can be loaded to Chennai,
Beneficiation plant: With a view to upgrade the low-grade material the company
is setting up beneficiation plant at a cost of about 3 crores. Order has been
placed for one “Commander 1400 Rinser with top deck 35 mm and bottom deck 2 &
10 mm opening. This machine is likely to be commissioned within 3 months.
Mechanical loading system: The Company has placed order for setting up one mechanical
loading facility in its own siding to load 'N' boxes and also BCN (covered) wagons.
Once this system is installed, loading of 'N' box can be completed in 2.5
hours.
The company has recently imported
two mobile screening plants each having capacity to screen 150 MT per hour.
Capacity Increase
With the likely addition of one
more Mining Lease soon, the total mining capacity will go up to 3 million tons,
from the existing 2 million tons.
M/s BIO(P) Limited, and its sister
concern, M/s Vibhutigudda Mines(P) Limited have been awarded special export
award for the year 2004-05 for the excellent export performance. The MD Mr.
S.K. Modi and the Director Mrs. Manju Modi took the award from the Hon. Finance
Minister Mr. P. Chidambaram, in the award function held at Chennai on behalf of
M/s BIO(P) Limited, and VGM(P) Limited,
Mines Addresses
H.
Siddhapuram Mines.
H. Siddhapuram Camp, Obulapuram Post.
D. Hirehal Mandal, Anantapur District, Andhra Pradesh.
Contact
Persons
A. Sreenivas Murthy
Sr. Executive (Administration)
Phone (Office) : 91 8392 244575
Phone (Residence) : 91 8392 268643
Email : asmurthy@bellaryironores.com
K. R. Shetty
Sr. Executive (Marketing)
Phone (Office) : 91 8392 244575
Phone (Residence) : 91 8392 242320
Email : krshetty@bellaryironores.com
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.
40.84 |
|
|
1 |
Rs. 80.47 |
|
Euro |
1 |
Rs. 54.32 |
SCORE & RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
60 |
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 |
|