MIRA
INFORM REPORT
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Report Date : |
28.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
SKIPPER STEELS LIMITED |
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Registered Office : |
5D, Crescent Tower, 229, A J C Bose Road, Kolkata-700020, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.03.1981 |
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Com. Reg. No.: |
21-33408 |
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CIN No.: [Company
Identification No.] |
L65993WB1981PLC033408 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS0807E |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of Tubes, Cylinders, etc. |
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 300000 |
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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 : |
5D, Crescent Tower, 229, A J C Bose Road, Kolkata-700020, West Bengal,
India |
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Telefax No.: |
91-33-22892327/ 28 |
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E-Mail : |
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Website : |
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Head Office and Works : |
Jalan Complex, Gate No.1, Village Jangalpur, Andulmouri,
Howerah-711302 |
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Tel. No.: |
91-33-26694563/ 64 |
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Fax No.: |
91-33-26695199 |
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Factory 1 : |
23A N S Road, 5th Floor, Kolkata-700001, West Bengal, India |
DIRECTORS
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Name : |
Mr. Sajan Kumar Bansal |
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Designation : |
Director |
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Name : |
Mr. Satyanaryan Agarwal |
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Designation : |
Director |
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Name : |
Mr. Sunil Kumar Bansal |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Tubes, Cylinders, etc. |
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Products : |
Steel Tubes HDD and other
projects |
GENERAL
INFORMATION
|
Customers : |
v
Airtel v
Bharat Sanchar Nigam Limited v
Reliance Infocomm v
Alsto v
Hutch v
Tata |
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Banking
Relations : |
-- |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1200175 |
Equity Shares |
Rs.10/- each |
Rs.12.002
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
12.000 |
12.000 |
6.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
61.800 |
54.700 |
40.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
73.800 |
66.700 |
46.900 |
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LOAN FUNDS |
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1] Secured Loans |
51.600 |
9.200 |
6.800 |
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2] Unsecured Loans |
28.700 |
0.800 |
0.800 |
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TOTAL BORROWING |
80.300 |
10.000 |
7.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
154.100 |
76.700 |
54.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
75.900 |
54.500 |
44.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.200 |
5.500 |
1.200 |
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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 |
36.200
|
9.200 |
2.800 |
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Sundry Debtors |
45.400
|
17.200 |
15.500 |
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Cash & Bank Balances |
6.100
|
1.300 |
2.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
30.000
|
20.100 |
7.600 |
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Total
Current Assets |
117.700
|
47.800 |
28.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
37.000
|
30.700 |
19.500 |
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Provisions |
3.700
|
0.400 |
0.100 |
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Total
Current Liabilities |
40.700
|
31.100 |
19.600 |
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Net Current Assets |
77.000
|
16.700 |
8.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
154.100 |
76.700 |
54.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover |
249.500 |
73.200 |
64.000 |
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Other Income |
17.200 |
5.800 |
(3.100) |
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Total Income |
266.700 |
79.000 |
60.900 |
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Profit/(Loss) Before Tax |
9.400 |
2.900 |
0.200 |
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Provision for Taxation |
2.300 |
0.800 |
0.100 |
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Profit/(Loss) After Tax |
7.100 |
2.100 |
0.100 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
23.300 |
6.400 |
3.200 |
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Administrative Expenses |
7.600 |
6.400 |
3.000 |
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Raw Material Consumed |
168.000 |
48.400 |
41.600 |
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Miscellaneous Expenses |
6.200 |
2.900 |
0.700 |
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Salaries, Wages, Bonus, etc. |
7.400 |
3.600 |
0.700 |
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Interest |
4.400 |
1.300 |
0.700 |
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Power & Fuel |
3.900 |
0.800 |
1.400 |
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Depreciation & Amortization |
5.800 |
2.600 |
0.600 |
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Other Expenditure |
30.700 |
3.700 |
8.800 |
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Total Expenditure |
257.300 |
76.100 |
60.700 |
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QUARTERLY RESULTS
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PARTICULARS |
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31.12.2006 (3rd
Qtr.) |
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Sales
Turnover |
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|
408.800 |
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Other Income |
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|
0.000 |
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Total Income |
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408.800 |
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Total
Expenditure |
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385.200 |
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Operating
Profit |
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23.600 |
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Interest |
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|
6.800 |
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Gross Profit |
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|
16.800 |
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Depreciation |
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|
2.000 |
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Tax |
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|
0.800 |
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Reported PAT |
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14.000 |
200612 Quarter 3
Notes:
1. The above Un audited Financial Results wars taken on record by the Board of Directors at its mooting held on 30th January, 2007. The Statutory Auditors have carried out a Limited Review of the above Financial Results. 2. Depreciation which hitherto was provided on 'Written Down Value Method' has been provided on 'Straight Line Method'. As a result of which, depreciation for earlier years has been written back. Further, depreciation for the nine months period and quarter is lower by Rs. 8.334 millions end Rs.83.34 Lace and Rs. 2.778 millions respectively with consequent effect on profit for the corresponding periods. 3. Provision for taxation includes Provision for deferred taxation and fringe benefit tax. 4. No Investor complaints were pending at the beginning of the quarter. No complaint was received during the quarter. 5. Figures have been regrouped or rearranged, wherever necessary.
KEY RATIOS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Debt-Equity Ratio |
1.49 |
0.37 |
0.70 |
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Long Term Debt-Equity Ratio |
1.49 |
0.37 |
0.70 |
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Current Ratio |
2.31 |
1.54 |
1.38 |
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TURNOVER RATIOS |
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Fixed Assets |
9.90 |
5.05 |
3.27 |
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Inventory |
10.99 |
7.96 |
13.20 |
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Debtors |
7.97 |
4.26 |
5.69 |
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Interest Cover Ratio |
2.05 |
2.85 |
1.29 |
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Operating Profit Margin (%) |
5.93 |
8.61 |
2.34 |
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Profit Before Interest And Tax Margin (%) |
3.61 |
5.05 |
1.41 |
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Cash Profit Margin (%) |
3.73 |
5.87 |
1.09 |
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Adjusted Net Profit Margin (%) |
1.40 |
2.32 |
0.16 |
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Return On Capital Employed (%) |
11.94 |
10.08 |
6.36 |
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Return On Net Worth (%) |
11.57 |
6.37 |
1.20 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.0.00/- |
|
Low |
Rs.0.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Website Details :
The Bansal Group was incorporated in 1961 as
a small trading firm. It has always been a growth oriented organization with
the Bansal family as its core promoters.
The two group
companies, Bansal Cylinders and Tubes
Limited and Skipper Steels
Limited are growing at a phenomenal and unprecedented rate. The Group’s
turnover has witnessed a mammoth jump from 160 Million Rupees (3.7
million USD) in the year 2003-04 to over 1000 Million (24 million USD) in the
year 2004-05. Looking forward, the projected turnover for the year 2005 – 2006
is 1500 Million Rupees (34.8 Million USD).
To continue on this
growth path, the group has taken several initiatives and expansion programs for
all it’s Product Categories which will bear results in the times to come.
Under the guidance
and able direction of the board of directors, the group has drawn ambitious
plans for its future. Mr. Sadhu Ram
Bansal, the initial architect of the group in 1961 has continued to
provide his guidance and auspices for the group over the years.
The companies are headed
by the Managing Director Mr. Sajan
Kumar Bansal, a Commerce Graduate, with his vast experience in the steel
business spanning over 25 years.
He is assisted by
his sons Sharan Bansal and Devesh
Bansal. Sharan Bansal is a Mechanical Engineer from the Georgia
Institute of Technology, Atlanta and Devesh Bansal holds a Masters Degree in
International Business and Management from DMU, United Kingdom.
Products
The Bansal
Group looks to
capitalize on the boom in the infrastructure spending in India and across the
world with it’s is very well diversified product range. The group looks to
serve critical infrastructure projects such as Telecom and Power.
Their product range is as follows:
Steel Tubes
Mild Steel (Black)
Galvanized (due shortly)
LPG Cylinders
Domestic
Auto
Telecom and Transmission Towers
Ground based & Roof Top Telecom Towers
Telecom Hamilton Poles
Transmission Line Towers
Electric Poles
Straight Arm Bracket
Swan Neck
HDD and other
projects
Horizontal Directional Drilling (HDD) projects
Turnkey Projects including HDD and allied works
Customers :
v Airtel
v Bharat Sanchar Nigam Limited
v Reliance Infocomm
v Alsto
v Hutch
v Tata
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.44.31 |
|
UK Pound |
1 |
Rs.86.96 |
|
Euro |
1 |
Rs.58.58 |
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 |
5 |
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--LEVERAGE |
1~10 |
5 |
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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 |
NO |
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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 |
|
46 |
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