MIRA
INFORM REPORT
|
Report Date : |
10.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
SALGAOCAR MINING INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
Salgaocar Chambers P. O .Box No. 135, Margao Goa 403601 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.03.1967 |
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Com. Reg. No.: |
000072 |
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CIN No.: [Company
Identification No.] |
U13209GA1967PTC000072 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS15418E |
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PAN No.: [Permanent
Account No.] |
AABC88962 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is engaged in the mining and export of iron ore worldwide |
RATING & COMMENTS
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MIRAs 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 93372 |
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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
businessman. 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 dealing at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Salgaocar Chambers P. O .Box No. 135, Margao Goa 403601 |
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Tel. No.: |
91-832-2737301-08/2737575 |
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Fax No.: |
91-832-2732271 |
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E-Mail : |
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Website : |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Anil .V. Salgaocar |
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Designation : |
Director |
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Address : |
Airport Raod, Alto Chicalim, Vasco Da Gama, South Goa 403711, |
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Date of Birth/Age : |
26.12.40 |
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Date of Appointment : |
31.03.67 |
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Name : |
Mrs. Lakshmi A. Salgaocar |
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Designation : |
Director |
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Address : |
. Salgaocar |
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Date of Appointment : |
30.01.93 |
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Name : |
Mr. Sameer .A. . Salgaocar |
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Designation : |
Director |
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Address : |
Airport Raod, Alto Chicalim, Vasco Da Gama, South Goa 403711, |
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Date of Birth/Age : |
27.07.69 |
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Date of Appointment : |
03.09.2001 |
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Name : |
Mr. Arjun A. Salgaocar |
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Designation : |
Director |
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Address : |
Airport Raod, Alto Chicalim, Vasco Da Gama, South Goa 403711, |
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Date of Birth/Age : |
17.09.75 |
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Date of Appointment : |
03.09.2001 |
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KEY EXECUTIVES
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Name : |
Mr. Anil .V. Salgaocar |
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Designation : |
Director |
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Address : |
Airport Raod, Alto Chicalim, Vasco Da Gama, South Goa 403711, |
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Date of Birth/Age : |
26.12.40 |
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Date of Appointment : |
31.03.67 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Anil .A. Salgaocar |
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800 |
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Mrs. Lakshmi |
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800 |
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Mr. Anil .A. Salgaocar (HUF) |
|
802 |
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Mr. Sameer .A. Salgaocar |
|
800 |
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Mr. Chandana .A. Salgaocar |
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800 |
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Mrs. Poornima .A. Salgaocar |
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800 |
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Mr. Arjun .A. Salgaocar |
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800 |
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Garuda Estate Develo |
|
5728 |
|
Vishal Estate Developments and Investment |
|
5640 |
|
New Century Constructions and Development |
|
5843 |
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Jayaraj Estate Development and Investment Company Private Limited |
|
5892 |
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Punam Real Estate and Investments Private Limited |
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5892 |
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|
5537 |
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Sudha Real Estate and Investments Private Limited |
|
5556 |
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Sharayu Estate Development and Investments Company Private Limited |
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5417 |
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Kumardeo Estate Development and Investment Company Private Limited |
|
3899 |
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Rameshwar Estate Development and Investment Company Private Limited |
|
4997 |
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Category |
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Percentage of
Holding |
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Bodies Corporate |
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90.67 |
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Directors or Relative of Directors |
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7.99 |
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others |
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1.34 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the mining and export of iron ore worldwide |
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Exports : |
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Products : |
Iron ore |
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Countries : |
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GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. V. Kamat and Compamy Chartered Accountants |
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Address : |
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Associates: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000 |
Equity Shares |
Rs. 100/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60002 |
Equity Shares |
RS. 100/-
each |
Rs.6.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
6.000 |
6.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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2328.300 |
1330.505 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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2334.3 |
1336.505 |
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LOAN FUNDS |
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1] Secured Loans |
|
340.576 |
949.830 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
340.576 |
949.830 |
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DEFERRED TAX LIABILITIES |
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67.820 |
91.101 |
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TOTAL |
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2742.696 |
2377.436 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1088.901 |
881.836 |
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Capital work-in-progress |
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481.269 |
288.949 |
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INVESTMENT |
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14.107 |
14.107 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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274.093 |
686.356 |
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Sundry Debtors |
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173.053 |
163.321 |
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Cash & Bank Balances |
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348.069 |
18.973 |
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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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1827.631 |
1137.352 |
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Total
Current Assets |
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2622.846 |
2006.002 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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900.856 |
615.915 |
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Provisions |
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563.571 |
197.543 |
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Total
Current Liabilities |
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1464.427 |
813.458 |
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Net Current Assets |
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1158.419 |
1192.544 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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2742.696 |
2377.436 |
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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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0.62 |
0.60 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.79 |
2.46 |
LOCAL AGENCY FURTHER INFORMATION
Company
Details:
With the beginning of the new century, the
mining industry is subject to a number of powerful trends that will shape the business
environment in which the industry operates. Perhaps none of these is more
challenging than the call for a global transition to sustainable development.
As a group, they are fully committed to attain a new balance between economic
prosperity and human well being on one hand, and the health of the ecosystem on
the other.
Towards achieving this objective, they have initiated several projects to
develop both the community and the earth. Scientific agriculture projects to
replenish the earth, as well as a wide spectrum of human development activities
for the community.
Achieving sustainability seems indeed a worthy pursuit, especially to those of
them who are involved in the business of mining.
Subject
is a leading conglomerate of industries, led by Anil V Salgaocar, a
visionary who has dedicated his life to the advance of the mining industry. As
a Group, Salgaocar Mining Industries is mainly involved in the mining and
export of iron ore worldwide. The Salgaocar Group exports iron ore to
Acutely conscious of the ecological and human factors that mining entails,
Salgaocar Mining Industries have put in place a whole spectrum of development
activities that replenishes both the soil and the spirit. Consequently, the
company's business ethos is singularly based on respect; to their customers,
their fellow workers and their terra firma that makes it all possible
The subject comprises of seven companies:
- Salgaocar
Mining Industries Private Limited
- Sallitho Ores
Private Limited
- Tungabhadra
Minerals Private Limited
- Salgaocar
Shipping Company Private Limited
- Cortalim
Shipyard and Engineers Private Limited
- Salgaocar
Engineers Private Limited
- Bevit
Pharmaceuticals Limited
- Rank Builders
- Nav Gomant
Prakashan
Mining Operations
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The Company's mining reserves are estimated to be over 300 million tons. The
iron ore body is concealed under a cover of laterite capping about 15 to 25
meters thick. Mining is carried out by forming 8 meter height benches and
deploying suitable heavy earthmoving machinery. After the hard laterite capping
is ripped and dozed, an excavator loads the rejection for the waste dump. The
exposed ore benches are then excavated. The hard lumps are ripped, the friable
and the fine ores transported by tipper trucks to destinations depending on the
quality of the ore. All mining operations are planned meticulously in advance
and the position, quantity and quality of ore to be mined is predetermined. The
Company has a fleet of Dozers, Excavators, and Wheel loaders.
The Rated
Capacities of Ore Processing Plants per hour
- Vagus Dry Screening Facility 3000 tons
- Pegson Crushing & Screening Plant
1000 tons
- Odamol Benefication Plant 1000 tons
- Mobile Washing Plant 800 tons
- Mobile Dry Screening Plant 1000 tons
Mining operations
in Karnataka
Our presence in the southern state of Karnataka comprises of four mining
companies:
- Tungabhadra Minerals Private Limited
- Balaji Mines and Minerals Private
Limited
- Auro Minerals
- Chitradurga John Mines
Tungabhadra Minerals Private Limited
Almost three decades ago, the foresight of the Salgaocar group
led to the setting up of a joint venture with the Government of Karnataka, for
the scientific mining of iron ore from the mineral rich state of Karnataka.
Tungabhadra Minerals private Limited soon grew to become a well established
mining company widely regarded for its consistency and reliability.
The company is presently operating seven mining leases in
Karnataka. It has a reputation for producing high quality ore types such as
super and basic grade lumps, calibrated ore, high grade and low grade fine and
high density iron aggregates for export as well as home trade.
With an ore reserve of 70 million tons, this company operates
High Grade Iron Ore Mining Leases in
Its highly flexible HPDA plant can produce high grade
calibrated ore, sinter feed fines and pellet feed fines, if required. With a
capacity of 180 tons per hour, this totally indigenous plant is the only
facility of its kind in
TML is also on the verge of acquiring state of the art mobile
screening and mobile crushing plants to modernise and facilitate its mining
operations.
TML uses the open cast mechanized mining method which is
appropriate to the topography and geological features.
Salgaocar Mining Industries has an extraction contract with
the Kalinga Mining Corporation to extract and export ore from the Joruri Iron
Ore Mining Leases. This 132.67 hectare mining lease, situated in Joruri,
Orissa, has a stratigraphy of laterite, shale and banded iron formations.
Opened up pits within and adjacent to the leasehold area have
provided sufficient geological data for ore deposits. It has a proved reserve
of 10 million tons, and a possible reserve of 20 million tons. The average
grade of iron ore in this region is Fe- 64
A systematic working of these pits deploying state of the art
machinery would yield around 5,00,000 metric tons to 7,00,000 metric tons
annually.
Salgaocar Mining plans to export the ore mined from Joruri
through the ports of Paradip and Haldia on the East Coast of India.
Marine Capabilities
OSFT
OSFT
With a storage capacity of 55000 MT, OSFT
Salgaocar Shipping Company also has ten barges with a total carrying capacity
of over 10,000 tons.
Cortalim Ship Yard and Engineers Private
Limited:
This shipyard has a fully covered 200 meter slipway with a total capacity of
4000 tons and a second slipway ideal for new constructions and repairs of
barges and launches. Four overhead cranes with a total capacity of 30 tons; an
enclosed store space with an overhead crane and stocking facilities for
unloaded steel; one 80 ton HM crane for loading and discharging operations on
the wharf. Other amenities include full-fledged office space; a 260 HP power
link with an independent 500 KVA transformer and fresh water connection with
storage space.
Agriculture
In Collem, a farm with an area of 791,160
sq.m has most of its boundary wrapped by the river Dood Sagar. It has rich
alluvial soil ideal for agriculture. Crops include Cashew, Coconut, Areca nut,
Black Pepper, Cloves, Banana, Papaya, Pineapple, Nutmeg and about 100 species of
medicinal plants. A matured and old plantation of cashew occupies most of the
farm with a seed yield of 40 quintals every year. The spices, coconut and areca
are intercropped in a multi-storied planting method. Bananas are cultivated
recurring every three years with a gap of one year on every plot, once in four
years.
The farm also has sericulture and apiculture projects. The fertilizer is from a
vermicompost unit that uses cow dung as decomposing media. It is clubbed with a
self maintained dairy. More than 100 species of medicinal plants are grown as
an exercise in the preservation of the ancient knowledge of ayurvedic
medicines.
Irrigation is with sprinklers and covers over 100 acres with a pump
running 18 hours a day. The irrigation cycle ends once in five days. Farm
laborers are housed in the farm at strategic locations of the boundary for the
security of the crops.
|
Name of the company |
SALGAOCAR MINING
INDUSTRIES PRIVATE LIMITED |
|
Presented By |
Mr. A.A.
Salgaocar, Director |
|
1) Date and description of instrument creating the change |
Vehicle Loan Cum
Hypothecation Agreement Dated
23.11.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 31.257
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 |
First Charge
created on Assets described in Schedule 2 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Repayable in 35
equal monthly instalments from 01.01.2006 @6.60% p.a. on reducing balance
method as paer Schedule 1 |
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5) Name and Address and description of the person entitled to the charge. |
ICICI Bank
Limited. Landmark, |
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6) 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. |
1. Charges includes,
mortgage see section 124. A description of the instruments that is to say
whether trust deed, mortgage or debenture, should also be given 2. Person
entitled to the charge will included mortgagees 3. Amount or rate
per cent of the commission allowances or discount (if any) paid or made
either directly or indirectly by the company to any person in consideration
of his subscribing or agreeing to subscribe whether absolutely or
conditionally or procuring or agreeing to procure subscribing whether absolute
or conditional for any of the debentures included on this return should in
this return should be given in item no.4 |
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 Intl 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 companys 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.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
This score serves as a reference to assess SCs 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 |
|