MIRA
INFORM REPORT
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Report Date : |
12.05.2007 |
IDENTIFICATION DETAILS
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Name : |
AGNI STEEL PRIVATE LIMITED |
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Registered Office : |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.10.1989 |
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Com. Reg. No.: |
003060 |
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CIN No.: [Company
Identification No.] |
U27310TZ1989PTC003060 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBA0404E |
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PAN No.: [Permanent
Account No.] |
AABCA7819R |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Erode Steel Rods and Bars |
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 3900000 |
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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 : |
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Tel. No.: |
91-424-2264326 |
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E-Mail : |
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Factory 1 : |
Ingur - 638 058. Perundurai (TamilNadu) |
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Tel. No.: |
91- 4294-230229, 23021 |
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Fax No.: |
91-4294-230212 |
DIRECTORS
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Name : |
Mr. M. Chinnasamy |
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Designation : |
Managing Director |
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Date of Birth/Age : |
18.04.1956 |
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Date of Appointment : |
19.10.1989 |
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Name : |
Mr. R. Krishnamurthy |
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Designation : |
Director |
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Date of Birth/Age : |
06.05.1954 |
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Date of Appointment : |
19.10.1989 |
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Name : |
Mr. K. Thangavelu |
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Designation : |
Director |
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Date of Birth/Age : |
23.12.1954 |
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Date of Appointment : |
19.10.1989 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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M. Chinnusami |
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10 |
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R. Krishanmoorthy |
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10 |
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K. Thangavelu |
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10 |
Equity Sgaresbreak up:
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Category |
Peentage: |
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Directors or relatives of directors |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of erode Steel rods and bars |
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Products : |
Alloy Steel |
GENERAL INFORMATION
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No. of Employees : |
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Bankers : |
The South Indian
Bank Limited Erode Branch,
Nethaji Raod, Erode (Tamil Nadu), having its Head Office at Thrissur (Kerala
state) |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Karthikeyan and JAyaram Chartered accountant |
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Address : |
78/8 Sekar |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2410000 |
Equity Shares |
Rs.10/- each |
Rs.24.100
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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24.100 |
11.200 |
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2] Share Application Money |
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0.000 |
9.357 |
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3] Reserves & Surplus |
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75.176 |
43.519 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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99.276 |
64.076 |
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LOAN FUNDS |
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1] Secured Loans |
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192.018 |
69.226 |
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2] Unsecured Loans |
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13.914 |
6.838 |
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TOTAL BORROWING |
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205.932 |
76.064 |
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DEFERRED TAX LIABILITIES |
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Director’s A/c and Others |
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13.621 |
32.391 |
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TOTAL |
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318.829 |
172.531 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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252.136 |
100.971 |
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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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71.240 |
28.748 |
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Sundry Debtors |
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35.128 |
34.709 |
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Cash & Bank Balances |
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8.324 |
2.618 |
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Other Current Assets |
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5.422 |
2.222 |
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Loans & Advances |
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65.605 |
53.197 |
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Total
Current Assets |
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185.719 |
121.494 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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96.743 |
33.310 |
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Provisions |
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23.401 |
17.663 |
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Total
Current Liabilities |
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120.144 |
50.973 |
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Net Current Assets |
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65.575 |
70.521 |
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MISCELLANEOUS EXPENSES |
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1.118 |
1.039 |
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TOTAL |
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318.829 |
172.531 |
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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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1.21 |
0.79 |
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Current Ratio (Current Asset/Current Liability) |
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1.54 |
2.38 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
AGNIN STEELS
PRIVATE LIMITED |
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Presented By |
Mr. M.
Chinnasami, Managing Director |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation (goods, machinery, Vehicles, Book debts,
and other assets)dated 29th September,.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit:
Rs.23.000 Millions F.S.L :
Rs.15.700 Millions F.S.L. Loan:
Rs.5.400 Millions Term Loans:
Rs.105.000 Millions Other Credit
Facilities (import\I.L.C) :
Rs.40.000 Millions B.G.: Rs.10.000 Millions Total:
Rs.199.100 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 |
As Per lists
enclosed giving details of hypothecated security for:Machinery etc. B)
Vehicles including accessories/ implements etc. and C) Goods |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest: At such rate(s)
as would be fixed by the Bank form time to tome and as per the guidelines as
applicable issued by RBI from time to time as amy be applicable at the rate
or Nil % above the Prime Lending Rate of the rising and failing therewith or
at such rate as amy be decided by the bank forma time to time with a minimum
of 11% per annum. The agreement is
to operate as a continuing security for the balance from time to time due to
the bank and also for the ultimate balance to become due. |
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5) Name and Address and description of the person entitled to the charge. |
The South Indian
Bank Limited Erode Branch,
Nethaji Raod, Erode (Tamil Nadu), having its Head Office at Thrissur (Kerala
state) |
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6) Date and brief description of instrument modifying the charge |
Agreement of
hypothecation (goods, machinery, vehicles, booksdebts and other assets) dated
the 4th day of April, 2005. Interest, Penal; interest and services
charge Agreement dated at 4th day of April, 2005 |
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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. |
Amount secured by the charge increased from rs.188.400 Millions to Rs.
250.400 Millions as under: Cash Credit:
Rs.27.000 Millions Term Loan FSL:
Rs.5.400 Millions Term Loan
FSL: Rs.105.000 Millions Term Loan FSL
: Rs.13.000 Millions Imp/ Inland
LC : Rs.100.000 Millions Interest shall be
charged on the outstanding in the accounts opened in respect of the various
facilities at such rates as would be fixed by the Bank from time to time and per
the guidelines as applicable issued by RBI from time to time as may be
applicable at the rate of 0.00% above the prime Lending rate of the Bank
rising and falling therewith or at such rate as may be decided by bank from
time to time with a minimum of 13.00 %per annum. |
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
90006183 |
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Corporate
identity number of the company |
U27310TZ1989
PTC0030660 |
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Name of the
company |
AGNI STEELS 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
Book Debts and Movable Property |
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Particular of
charge holder |
The south Indian
Bank Limited No: 363, |
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Nature of
description of the instrument creating or modifying the charge |
Agreement of
Hypothecation Deposit of title
deeds made on |
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Date of
instrument Creating the charge |
22.09.2006 |
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Amount secured by
the charge |
Rs.404.900
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest: Interst is
Payable at BPLR-2% (presently 11.50% for CCol and BPLR + T.P-2.5% for term
loans with Monthly rests. Terms of
repayment: Nature of
Facility : FSLM-EQI: Rs.5.500 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.0.467 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.0.710 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.1.283 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.0.819 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.0.819 Millions
Including Interest Nature of
Facility : FSLM-EQI: Rs.5.896 Millions
Including Interest Margin: Nature of
Facility: CCol -25% for Stock and 40% for Book Debts Extent and
operation of the Charge: Nature of
Facility: CC Term Laon, and LC Origingal :0.199 Existing: 273.900 Revised:
Rs.404.900 |
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Short particulars
of the property charged |
Land Admeausring
20.19 ˝ acres situated in various survey Nos. at ingur village perundurai
taluk together with all building exciting and/or to be constructed theron in
future. Land Admeasurng 3
Acres in survey No 561 Ingur village perundurai Taluk together with stock and
book debts Machinery\ies Existing and fresh in gots ad rolling Mill-Plant and
Machineries and Entire current assets |
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Date of latest
modification prior to the present modification |
15.11.2005 |
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Particulars of
the present modification |
The Existing
gross limit Rs. 273.900 Millions has been enchased kto Rs.404.900 Millions
Hypothecation of New Machineries |
As per Web Site:
Agni Steels bags IS:14650 certification
ERODE Subject act as., the Erode based Steel
rods and bars manufacturer has recently obtained one more certification (IS:
14650) from the Bureau of Indian Standards for its Steel cast Billet ingots,
said the company sources on Thursday. Comapny, an ISO 9001-2000 certified firm,
already hold IS: 1786 for its cold twisted steel bars and IS: 2830 for its
steel cast billet ingots, apart from TOR certification from Tor Steel Research
Foundation in
About Agni
It was in the year 1992 that they commenced production by installing a
3-ton Induction Furnace for manufacturing ingots. As a well-established name in
the manufacture of ISI-certified TMT steel rods, their devotion to impeccable
quality and customer satisfaction is the differentiating factor. Their
expertise as a renowned manufacturer of steel rods has been strengthened
through years of experience in this field. It is the reason why they continue
to pursue glorious heights; why they manufacture steel rods, but deliver
quality.
At every phase of the manufacturing process,
they reaffirm their commitment to the highest quality. The fact that they
furnish a Test Certificate for every lot that goes out of their factories, is
ample proof. Combining a host of benefits like high bendability &
weldability and resistance to fire, rust & corrosion, their rods are a
cost-effective option in construction. They believe that their years of
experience in the industry and a fast growing dealer network will carry their
legacy forward and strengthen their foothold in the years to come.
The Assurance
At AGNI, they do not just strive for customer satisfaction; what they
aim at, is customer delight. They believe that they need to go beyond customer
expectations and deliver quality with consistency. To achieve this, their relentless
efforts are directed towards manufacturing products in conformance with
challenging standards.
As a corporate citizen, they are deeply
dedicated to the environment they operate in. In whatever little way that they
can, they make sure their responsibility in this regard is duly
fulfilled. Through a windmill for the generation of green potheyr, they
endeavour to reinforce their commitment to the environment.
Quality Control
At AGNI, they believe that quality is not an end-product; it is a continuous
process. Which is why, it is the watchword in all their operations. Committed
to manufacture and sell quality steel products that conform to relevant
standards and as per customer’s requirements, their goal is to continually
endeavour in enhancing the customer-centric activities.”
Mechanical Properties
Certifications
Their efforts to exceed expectations and endorse excellence are
reflected in the certifications conferred on them. It is their continuous
pursuit to excel that enables them to set standards as well as achieve them.
Bureau of Indian Standards (BIS)
They are the 1st Indian company in the Private Sector to have been
bestowed with a rare honour - the ‘ISI’ certification (IS 14650 for Cast Billet
Ingots). This certificate was awarded to them in 2004 by the BIS in recognition
of the quality of their ingots. Along with the IS 14650, they have also been
certified with the IS 2830 for the Cast Billet Ingots that go into the
manufacture of rods.
A testimonial to their single-minded focus
on attaining flawless quality is the ‘ISI’ mark. The entire range of steel rods
that they manufacture has been certified with the ‘ISI’ mark. Their products
comply with not just Indian standards but also international standard codes of
practice. The quality parameters for Fe 415 and Fe 500 conform to French &
German Standards that are equivalent to IS 1786-1985, and also the
international recommendation by CEB. An efficient and experienced team of
Quality Control Engineers manning their hi-tech laboratory ensures that no
effort is spared in the achievement of these standards.
Dealer Network:
Their presence over the South of India has been greatly strengthened by
more than 150 dealers. Just like their sturdy rods, they share an unbreakable
bond with their dealer network. Together, they have cut across barriers of
location and logistics to penetrate the territory down South.
A well-established market has contributed
towards easy accessibility of our rods for their customers as well as an
increased market share for them. As they continue to explore new markets, their
goal is to make their brand the number one choice in steel rods across
geographical boundaries.
Products:
Thermo Mechanically Treated Agni TMT bars come with a rib pattern which
is specially designed to ensure excellent bond strength between the bar and the
surrounding concrete. The ribs are cut by automated
milling machines, which produce uniform and concrete ribs. The tough outer
surface and core of Agni TMT bars result in the excellent bend ability.
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.41.34 |
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|
1 |
Rs.81.81 |
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Euro |
1 |
Rs.55.74 |
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 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
54 |
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 |
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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 |
|
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 |
|