MIRA
INFORM REPORT
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Report Date : |
12.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SAJJALA IRON AND STEEL PRIVATE LIMITED |
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Registered Office : |
H. No. 3-5-874/4, 2nd Floor, Hyderguda, Hyderabad – 500029,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.09.2004 |
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Com. Reg. No.: |
01-44243 |
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CIN No.: [Company
Identification No.] |
U27109AP2004PTC044243 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS09980F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
To carry on the business of manufacturers of, dealers in, exporters and
importers of, all varieties of steel, special steel, carbon steel, tool alloy
steel, mild steel an any other kind and grades of steel and to carry on and
execute the work of steel engineers including manufacturing and dealings in
steel billets, steel rods, steel ingots, steel sheets, steel wires and in all
kinds of steel products whether forged, rolled or drawn and consequently to
manufacture sell and deal in all or any of the by-products which will be
obtained in the process of manufacturing these steel products. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having moderate track. Company’s profitability is under
severe pressure. It has some accumulated losses. Payments are reported as
slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
H. No. 3-5-874/4, 2nd Floor, Hyderguda, Hyderabad – 500029,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23231075 / 23211322 / 23231501 |
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Mobile No.: |
91-9989178971 / 9347055002 |
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Fax No.: |
91-40-23296314 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Divakar Reddy Sajjala |
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Designation : |
Director |
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Address : |
Plot No. 86, Huda Heights Road No. 12, Banjara Hills, Hyderabad –
500034, Andhra Pradesh, India |
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Date of Birth/Age : |
18.05.1955 |
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Date of Appointment : |
27.09.2004 |
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Name : |
Mr. Ranakrishna Reddy Sajjala |
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Designation : |
Director |
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Address : |
Flat No GF1, Neadows Court, P No. 72, Ashwini Layout, Jubilee Hills,
Hyderabad – 500033, Andhra Pradesh, India |
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Date of Birth/Age : |
16.06.1958 |
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Date of Appointment : |
20.06.2005 |
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Name : |
Mr. Bahgeerathi Sajjala |
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Designation : |
Director |
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Address : |
Plot No. 86, Huda Heights Road No. 12, Banjara Hills, Hyderabad –
500034, Andhra Pradesh, India |
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Date of Birth/Age : |
20.01.1958 |
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Date of Appointment : |
16.06.2005 |
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Name : |
Mr. Sandeep Reddy Sajjala |
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Designation : |
Whole Time Director |
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Address : |
Plot No. 86, Huda Heights Road No. 12, Banjara Hills, Hyderabad –
500034, Andhra Pradesh, India |
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Date of Birth/Age : |
19.11.1982 |
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Date of Appointment : |
15.07.2006 |
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Other Directorship : |
R. R. Stones Private Limited U14102AP1992PTC014117 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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R. K. Stones Private Limited |
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10000 |
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S. Divakar Reddy |
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10 |
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S. Ramakrishna Reddy |
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10 |
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Total |
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10020 |
BUSINESS DETAILS
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Line of Business : |
To carry on the business of manufacturers of, dealers in, exporters and
importers of, all varieties of steel, special steel, carbon steel, tool alloy
steel, mild steel an any other kind and grades of steel and to carry on and
execute the work of steel engineers including manufacturing and dealings in
steel billets, steel rods, steel ingots, steel sheets, steel wires and in all
kinds of steel products whether forged, rolled or drawn and consequently to
manufacture sell and deal in all or any of the by-products which will be
obtained in the process of manufacturing these steel products. |
GENERAL
INFORMATION
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No. of Employees : |
About 100 |
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Bankers : |
Centurion Bank of Punjab F 416, Minerva Complex, S. D. Road, Secunderabad – 500003, Andhra
Pradesh, India |
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Facilities : |
-- |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
G Rajendra Prasad and Company Chartered Accountants |
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Address : |
10-2-289/120/65, B-66, Flat – 3, P S Nagar, Hyderabad – 500037, Andhra
Pradesh, India |
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Holding Company : |
R. R. Stones Private Limited CIN No : U14102AP1992PTC014117 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6,200,000 |
Equity Shares |
Rs. 10/- each |
Rs. 62.000
Millions |
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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62.000 |
0.100 |
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2] Share Application Money |
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18.935 |
44.260 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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[5.683] |
0.000 |
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NETWORTH |
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75.252 |
44.360 |
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LOAN FUNDS |
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1] Secured Loans |
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100.778 |
0.000 |
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2] Unsecured Loans |
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2.945 |
0.000 |
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TOTAL BORROWING |
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103.723 |
0.000 |
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DEFERRED TAX LIABILITIES |
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4.197 |
0.000 |
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TOTAL |
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183.172 |
44.360 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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146.305 |
1.990 |
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Capital work-in-progress |
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9.265 |
33.845 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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33.029 |
0.000 |
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Sundry Debtors |
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13.529 |
0.000 |
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Cash & Bank Balances |
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0.758 |
1.061 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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10.232 |
8.859 |
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Total
Current Assets |
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57.548 |
9.920 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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30.434 |
3.544 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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30.434 |
3.544 |
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Net Current Assets |
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27.114 |
6.376 |
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MISCELLANEOUS EXPENSES |
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0.488 |
0.000 |
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Preoperative Expenses |
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0.000 |
2.149 |
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TOTAL |
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183.172 |
44.360 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.78 |
0.08 |
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Current Ratio (Current Asset/Current Liability) |
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1.89 |
2.80 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Corporate
identity number of the company |
U27109AP2004PTC044243 |
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Name of the
company |
SAJJALA IRON AND STEEL PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
H. No. 3-5-874/4, 2nd Floor, Hyderguda, Hyderabad – 500029,
Andhra Pradesh |
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This form is for |
Modification of
Charge |
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Type of charge |
Hypothecation Equitable mortgage
or mortgage of property by deposition the title deeds |
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Particular of
charge holder |
Andhra Bank Specialised
Corporate Finance Branch Somajiguda,
Hyderabad – 500082, Andhra Pradesh, India |
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Amount secured by
the charge |
Rs. 55.000
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Margin : Stock 25
% Book debts 50 % Interest : BMPLR
+ 2.50 = 14.00 % p.a. |
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Description of
the property charged indicating whether it is a charged on |
Stock in trade Book debts |
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Particulars of
the property charged |
Stocks of Raw
Materials, WIP, Finished Goods and Book debts not older than 90 days, plant
and Machinery and other fixed assets, collateral security as per sanction
letter. |
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Charge
identification number of the charge to be modified |
80009526 |
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Date of
instrument Creating the charge |
04.08.2006 |
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Particulars of
the present modification |
Limits enhanced from
15 millions to 55 millions |
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.44.31 |
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UK Pound |
1 |
Rs.85.47 |
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Euro |
1 |
Rs.58.47 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
2 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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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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28 |
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 |
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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 |
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<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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