MIRA INFORM REPORT

 

 

Report Date :

29.06.2007

 

IDENTIFICATION DETAILS

 

Name :

ALPHA STEEL INDUSTIRES LIMITED

 

 

Registered Office :

C -27, 1 E, Hyderabad – 500 018, Andha Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

17.05.1974

 

 

Com. Reg. No.:

1721

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Tin containers 

 

 

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 23832

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experience 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 :

C -27, 1 E, Hyderabad – 500 018, Andha Pradesh, India

 

 

DIRECTORS

 

Name :

Mr. Prakash Om Kedia

Designation :

Director

Address :

5-3-981, Fasi Jung Lane, Hyderabad 500 001, Andhra Pradesh, India

Date of Birth/Age :

15.101942

Date of Appointment :

17.05.1974

 

 

Name :

Mr. Kumar Arvind Kedia

Designation :

Director

Address :

5-3-981, Fasi Jung Lane, Hyderabad 500 001, Andhra Pradesh, India

Date of Birth/Age :

27.10.1967

Date of Appointment :

21.11.1985

 

 

Name :

Mr. Kumar Anand Kedia

Designation :

Director

Address :

5-3-981, Fasi Jung Lane, Hyderabad 500 001, Andhra Pradesh, India

Date of Birth/Age :

25.01.1974

Date of Appointment :

30.03.1996

 

 

Name :

Mr. T. G. Vasanta Gupta

Designation :

Director

 

 

Name :

Mr. S. R. Ramamurthy

Designation :

Director

 

 

Name :

Mr. M. Venkataratnam

Designation :

Director

 

 

Name :

Mr. v b sethy

Designation :

Director

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names Of Shareholders

 

No. of equity  Shares

Mr. Om Prakash Kedia

 

21,400

Mr. Maladeen Gupta

 

3000

Mrs Renuka Rajuria

 

2800

Mrs Radhika Jalan

 

13500

Mr. Anand Kedia

 

87700

Mrs. Seema Gupta

 

5600

Mr. Adilya Kedia

 

17600

Mrs. Preeti Kedia

 

69200

Metro Gas Appliances

 

100

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Tin containers 

 

 

Products :

 

Item Code No.

Description

7208-11

Iron And Steel Sheets

7310-00

Metal Containers

7606-20

Aluminum Foil

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

--

MT

8680 M/T of Tin sheet to be converted into Tin Containers for manufacture of plastic cans N. A

8680 M/T of Tin sheet to be converted into Tin Containers Plastic cans N.A

--

Tin containers of various sizes both plain

MT

--

--

1445866

P C R C A components

MT

--

--

1515

P P Caps

MT

--

--

114200

 

 

GENERAL INFORMATION

 

Bankers :

State Bank of Hyderabad

 

 

Facilities :

Secured loan

 

 

(Rs. In millions)

(Rs. In millions)

Cash credit hypothecation

5.110

2.613

O D B C C / Supply Bills

3.368

2.995

Medium term loan

1.387

1.910

From L I C of India – term loan

0.835

0.876525

Total

10.699

8.396

 

Note

  1. Credit facilities from State Bank of Hyderabad are scured by equitable mortgage of immovable properties and first charge on moveable fixed assets and current assets of the company present and future, and personal guarantee of the directors of the company.
  2. Term loan from LIC is secured against keyman insurance policy of the company

 

Unsecured Loan

 

 

(Rs. In millions)

(Rs. In millions)

From director

--

0.116

Total

--

0.116

 

 

 

Banking Relations :

Satisfactory

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

8500000

Equity shares

Rs. 10/- each

Rs. 85.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

222800

Equity shares

Rs. 10/- each

Rs. 2.228 millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

2.228

2.228

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

3.730

3.449

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

5.958

5.677

LOAN FUNDS

 

 

 

1] Secured Loans

 

10.700

8.396

2] Unsecured Loans

 

0.000

1.160

TOTAL BORROWING

 

10.700

9.556

DEFERRED TAX LIABILITIES

 

0.195

0.141

 

 

 

 

TOTAL

 

16.853

15.374

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

3.724

1.722

Capital work-in-progress

 

0.000

2.464

 

 

 

 

INVESTMENT

 

0.079

0.079

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

8.731

6.958

 

Sundry Debtors
 

10.855

7.680

 

Cash & Bank Balances
 

1.045

0.847

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

2.031

2.322

Total Current Assets
 

22.662

17.807

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

9.543

6.648

 

Provisions
 

0.070

0.050

Total Current Liabilities
 

9.613

6.698

Net Current Assets
 

13.050

11.109

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

16.853

15.374

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Sales Turnover

 

62.432

46.855

Other Income

 

0.377

0.439

Total Income

 

62.810

47.293

 

 

 

 

Profit/(Loss) Before Tax

 

0.405

0.089

Provision for Taxation

 

0.124

0.020

Profit/(Loss) After Tax

 

0.281

0.069

 

 

 

 

Imports :

 

 

 

Total Imports

 

6.949

0.000

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

 

 

 

 

Manufacturing Expenses

 

5.589

5.226

 

Excise duty

 

1.217

2.692

 

Raw Material Consumed

 

55.320

37.127

 

Increase/(Decrease) in Finished Goods

 

(2.007)

0.723

 

Interest

 

1.619

1.171

 

Depreciation & Amortization

 

0.667

0.265

Total Expenditure

 

62.405

47.204

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
 

0.44

0.14

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

0.64

0.18

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

1.53

0.45

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.06

0.01

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

3.40

2.86

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.35

2.65

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Fixed assets

  • Land
  • Building
  • Plant and machinery
  • Bore well
  • Fire fighting equipment
  • Electricity inst. Fittings
  • Winging machine
  • Typewriter and calculator
  • Furniture and fixture
  • Delivery van
  • Motor cycle and scooter
  • Patterns and dies
  • Air conditioner
  • Punch clock
  • Generator
  • Air compressor
  • Telephone equipment
  • Voltage stabilizer
  • Fax machine
  • Computers
  • Motor car

 

Operations

 

The turnover of the company was Rs 62.432 millions for the year against Rs. 46.855 millions in the previous year.

Your directors are hopeful of an improved performance in the current year.

 

 

Name of the company

M/S ALPHA STEEL INDUSTIRES LIMITED

Presented By

Mr. Aravind Kedia, Director

1) Date and description of instrument creating the change

Dated 02.03.2004

Letter confirming the deposit of title deed for extension of existing mortgage.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 75.500 millions

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

Extension of equitable mortgage of factory land and buildings situated at 8-71, Apie Balanagar, Hyderabad admeasuring 2512 square yards and sanathnagar, Hyderabad admeasuring 1010 square yards alongwith plant and machinery present and future

4) Gist of the terms and conditions and extent and operation of the charge.

Rs. 75.500 millions limits sanctioned to M/s Reactive metals of India limits. Ext. of charge over fixed assets of the company

5) Name and Address and description of the person entitled to the charge.

State Bank of Hyderabad

Sanatnagar Branch,

Hyderabad

6) Date  and brief description of instrument modifying the charge

Dated 24.01.2006

Letter confirmin the deposit of title deed for extension of the existing mortgage.

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.

Extension of equitable mortgage of factory land and buildings situated at B -71, Apie, Balanagar, Hyderabad, admesasuring 2412 square yards and C -27, Industrial Estate, Sanathnagar, admeasuring 1010 square yards along with plant and machinery, present and future situated in the above two places to cover as security for the credit facility of Rs 93.000 millions granted to M/s Reactive Metals of India Limited.

Other terms and conditions remain uncharged.

 

 

 

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.40.84

UK Pound

1

Rs.81.81

Euro

1

Rs.55.03

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

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

 

49

 

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