MIRA INFORM REPORT

 

 

Report Date :

14.05.2007

 

IDENTIFICATION DETAILS

 

Name :

AKSHARA INDUSTRIES LIMITED

 

 

Registered Office :

No.5, Al Block (Old No. 145), 2nd Street, 11th Main Road, Annagar, Chennai – 600 040, Tamilnadu,

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

07.04.2004

 

 

Com. Reg. No.:

052914

 

 

CIN No.:

[Company Identification No.]

L27102TN2004PLC052914

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEA08925A

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers of Iron and Steel

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Maximum Credit Limit :

USD 170000

 

 

Status :

Small Company

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively small company having satisfactory track.  Directors are reported as experienced and respectable businessmen.  Trade relations are reported as fair.  Business is active.  Payments are however reported as usually correct and as per commitments.

 

The company can be considered for small business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

No.5, Al Block (Old No. 145), 2nd Street, 11th Main Road, Annagar, Chennai – 600 040, Tamilnadu,

Tel. No.:

91-44-26211673 / 4 / 5

Fax No.:

91-44-26211675

E-Mail:

aksharaind@eth.net

 

 

DIRECTORS

 

Name :

Mr. Rajkumar Tibrewala

Designation :

Director

Address :

Plot No. 5152, Second Avenue, Annanagar, Chennai – 600 040, Tamilnadu

 

 

Name :

Mr. Aditya Tibrewala

Designation :

Director

Address :

Plot No. 5152, Second Avenue, Annanagar, Chennai – 600 040, Tamilnadu

 

 

Name :

Mr. Anurag Tibrewala

Designation :

Director

Address :

Plot No. 5152, Second Avenue, Annanagar, Chennai – 600 040, Tamilnadu

 

 

Name :

Mr. Vivek Tibrewala

Designation :

Director

Address :

Plot No. 5152, Second Avenue, Annanagar, Chennai – 600 040, Tamilnadu

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. Rajkumar Tibrewala

 

10000

Mr. Aditya Tibrewala

 

10000

Mr. Anurag Tibrewala

 

10000

Mr. Vivek Tibrewala

 

10000

Mrs. Sonal Tibrewala

 

10000

Mrs. Shweta Tibrewala

 

10000

Mrs. Nisha Tibrewala

 

10000

 

 

 

 

Particulars

 

Percentage of Holding

Directors or Relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Iron and Steel

 

 

Products :
  • Iron and Steel

 

 

GENERAL INFORMATION

 

Suppliers :
  •  Cotmac Electronics Private Limited
  • Fomra Electrical Agencies
  • Vignesh Enterprises
  • Raghavendra Agencies
  • Avery India Limited
  • Dynamic Rubbers Private Limited
  • Hindustan Rubbers (Silvassa)
  • J. K. Automation
  • Peharpur Cooling Tower
  • Venus Enercons Systems Private Limited
  • Maharashtra Cargo Movers
  • Bath Paradise
  • Juzer Sales Corporation
  • Pradeep Suppliers
  • Sri Balajee Constructions
  • Uro Veneers
  • Raman Lal and Company
  • Eagle Road Carriers
  • Sri Om Minerals
  • Ganga Lorry Service

 

 

No. of Employees :

Around 200

 

 

Bankers :
  • Catholic Syrian Bank Limited
  • Vijaya Bank Limited

 

 

Facilities :

Secured Loans

  • Term Loan from Oriental Bank of Commerce secured by charge on Assets – Rs. 66.182 millions
  • Working Capital Limits from oriental Bank of Commerce secured by charge on Assets – Rs. 8.846 millions

 

Unsecured Loans

  • From Directors – Rs. 0.050 million

 

 

 

Banking Relations :

Satisfactory

 

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

7500000

Equity Shares

Rs. 10.00 each

Rs. 75.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs. 10.00 each

Rs. 50.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

44.540

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

44.540

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

75.028

2] Unsecured Loans

 

 

0.050

TOTAL BORROWING

 

 

75.078

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

119.618

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

106.303

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

23.767

 

Sundry Debtors
 

 

0.000

 

Cash & Bank Balances
 

 

0.476

 

Other Current Assets
 

 

0.000

 

Loans & Advances
 

 

5.306

Total Current Assets
 

 

29.549

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

18.461

 

Provisions
 

 

0.017

Total Current Liabilities
 

 

18.478

Net Current Assets
 

 

11.071

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

2.244

 

 

 

 

TOTAL

 

 

119.618

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2005

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

2.10

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

1.60

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Name of the company

M/s. AKSHARA INDUSTRIES LIMITED

Presented By

M/s. AKSHARA INDUSTRIES LIMITED AND ORIENTAL BANK OF COMMERCE,

OPVERSEAS BRANCH, CHENNAI – 600 035

1) Date and description of instrument creating the change

15.09.2004

i) Agreement of Term Loan

ii) Agreement of hypothecation of Assets.

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

Rs. 72.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First Charge by way of hypothecation of stocks viz. raw materials, work-in-progress, finished Goods, spare parts, tools etc and book debts, receivables and current assets of the company.

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

Nature of Facility

Limit

 

Margin

 

Rate of Interest

 

Term Loan

 

 

Rs. 60.000 millions

 

33 %

 

 

 

11.50 % p.a.

 

 

Cash Credit

 

 

Rs. 12.500 millions

25% on stocks

40% on Receivables

 

10.00 % p.a.

(Sub limit Import L/C Rs. 10.000 millions)

 

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

Oriental Bank of Commerce

Overseas Branch, 467, Mount Road,

Chennai – 600 035

6) Date  and brief description of instrument modifying the charge

15.10.2005

  • Supplementary Agreement to secure credit / loan facility dated 15.10.2005 for Rs. 108.500 millions
  • Agreement of Hypothecation of Assets dated 15.10.2005 for Rs. 108.500 millions
  • Extension of equitable mortgage dated 15.10.2005
  • Counter Guarantee Agreement dated 15.10.2005 for Rs. 1.500 millions

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.

At the request of the Borrower the facilities are revised as under:

 

Nature of

Facility

Existing Limit

 

Modified Limit

 

Term Loan

 

Rs.65.000 millions

Rs. 650.000 millions

Cash Credit

 

Rs. 10.000 millions

Rs. 25.000 millions

Import L/C

(Sub Limit BE Rs. 1.500

millions)

-

Rs. 18.500

millions

Total Limit

 

 

Rs. 75.000 millions

Rs. 108.500 millions

The aforesaid facilities are secured by First Charge by way of Equitable Mortgage over Factory Land and Building comprised in Resurvey No. 225 /1C2, measuring 8.29 acres and Resurvey No. 225 / 1C1 Measuring 20 acres in Village No. 9, Eguvarpalayam Village, Gummidipoondi, Taluka and hypothecation of assets and Stocks of raw materials (Coal and Iron Ore), work-in-progress, finished goods of Sponge Iron and receivables of the Company.

 

All other terms and conditions are as per agreements.

 

 

Corporate identity number (CIN) Foreign company registration number

L27102TN2004PLC052914

Name of the Company

M/s. AKSHARA INDUSTRIES LIMITED

Address

No.5, Al Block (Old No. 145), 2nd Street, 11th Main Road, Annagar, Chennai – 600 040, Tamilnadu,

This form is for

Creation of Charge

Type of Charge

A Charge on Immovable Property, Book Debts, Movable Property (not being pledge)

Whether consortium finance is involved

No

Whether joint Charge involved

Yes

Particulars of the charge holder 

UCO Bank

T. Nagar, Chennai – 600 017, Tamilnadu – TN

E-mail ID: ucotnagar@sancharnet.in

Amount secured by the charge

Rs. 100.000 millions

Brief of the principal terms and conditions 

Rate of Interest WC-CC: 12% p.a.

Term Loan: 12% p.a. Interest payable at monthly rest.

Brief description of the instrument modifying the charge under section 

  • Deed of Hypothecation of movable Plant and Machinery to secure a term loan dated 30.10.2006 for Rs. 85.000 millions
  • Agreement relating to term loan dated 30.10.2006 for Rs. 85.000 millions
  • Hypothecation of goods to secure a demand cash credit dated 30.10.2006 for Rs. 15.000 millions
  • Hypothecation of Book Debts to secure a demand cash credit dated 30.10.2006 for Rs. 15.000 millions
  • EM Confirmation Cum pari Passu Letter from State Bank of India dated 31.10.2006
  • Pari Passu Charge Letter from Oriental Bank of Commerce dated 30.10.2006

Date of Instrument

30.10.2006

Whether charge created or modified outside India

No

Whether any of the property or interest therein under reference is not registered in the name of the company

No

 

  • Contingent Liability: Counter Guarantee given to the Bank with regard to Customs Duty – Rs. 0.210 million

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 40.90

UK Pound

1

Rs. 80.78

Euro

1

Rs. 55.18

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

31

 

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