MIRA
INFORM REPORT
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Report Date : |
15.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KAMACHI SPONGE AND POWER CORPORATION LIMITED |
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Registered Office : |
No. 664, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.10.2003 |
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Com. Reg. No.: |
18-51727 |
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CIN No.: [Company
Identification No.] |
L27106TN2003PLC051727 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEK07478C |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of Sponge Iron. |
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 800000 |
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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 : |
No. 664, |
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Tel. No.: |
91-44-25910850 / 55 |
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Fax No.: |
91-44-25917603 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Ghisulal Kothari |
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Designation : |
Director |
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Address : |
No. 29, New |
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Date of Birth/Age : |
04.12.1950 |
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Date of Appointment : |
08.10.2003 |
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Name : |
Mr. Shanthilal Kothari |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
01.05.1953 |
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Date of Appointment : |
08.10.2003 |
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Name : |
Mr. Sardarmal Kothari |
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Designation : |
Director |
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Address : |
No. 615, |
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Date of Birth/Age : |
03.10.1958 |
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Date of Appointment : |
08.10.2003 |
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Name : |
Mr. Kewal Chand Kothari |
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Designation : |
Director |
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Address : |
No. 615, |
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Date of Birth/Age : |
01.09.1961 |
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Date of Appointment : |
08.10.2003 |
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Name : |
Mr. Vinod Kothari |
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Designation : |
Director |
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Address : |
No. 29, New |
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Date of Birth/Age : |
07.10.1973 |
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Date of Appointment : |
11.02.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ghisulal Kothari |
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13000 |
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Kewal Chand Kothari |
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13000 |
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Sardar Mal Kothari |
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13000 |
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Shanty Lal Kothari |
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13000 |
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Vinod Kothari |
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17000 |
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Surender Kumar Mehta |
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20000 |
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Vijay Kothari |
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10000 |
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Rakesh Kothari |
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10000 |
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Anil Bhandari |
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10000 |
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Sanju Jawi |
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10000 |
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Devilal |
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10000 |
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Suresh Chand Sharma |
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10000 |
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Vimla Devi Gupta |
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10000 |
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Chershma Mehta |
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10000 |
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Saket Distributors Private Limited |
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16000 |
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Scope Commercial Private Limited |
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16000 |
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Asha Sharma |
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48000 |
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Indu Sharma |
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40000 |
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Radheshyam Sharma |
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48000 |
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Nirmala Sharma |
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48000 |
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Meenu Sharma |
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48000 |
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Kosi Consultants Private Limited |
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29800 |
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Hazari Lal Gupta |
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10000 |
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Avon Construction Private Limited |
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1252000 |
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Shiv Sakthi Communication Private Limited |
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120000 |
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Bhuwania Brothers Private Limited |
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120000 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Sponge Iron. |
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Products : |
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GENERAL INFORMATION
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Suppliers : |
Kamachi Steel Limited Enviro Science and Engineering Private Limited Aircell Cellular Limited Vijay Securities Services Goyal Ispat Limited Security Consultants and Dep. Services |
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Bankers : |
Union Bank of State Bank of |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dwaraka Ashok and Associates Chartered Accountants |
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Address : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7625800 |
Equity Shares |
Rs. 10/- each |
Rs. 76.258
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
76.258 |
26.992 |
3.610 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
124.612 |
39.438 |
3.990 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
200.870 |
66.430 |
7.600 |
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LOAN FUNDS |
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1] Secured Loans |
286.768 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
286.768 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
487.638 |
66.430 |
7.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16.381 |
1.573 |
0.789 |
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Capital work-in-progress |
429.107 |
64.637 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
16.732
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0.000 |
0.000 |
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Sundry Debtors |
0.000
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0.000 |
0.000 |
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Cash & Bank Balances |
0.554
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0.129 |
19.667 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
48.583
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0.051 |
0.051 |
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Total
Current Assets |
65.869
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0.180 |
19.718 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.348
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0.572 |
13.537 |
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Provisions |
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0.016 |
0.005 |
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Total
Current Liabilities |
24.348
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0.588 |
13.542 |
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Net Current Assets |
41.521
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[0.408] |
6..176 |
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MISCELLANEOUS EXPENSES |
0.629 |
0.628 |
0.635 |
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TOTAL |
487.638 |
66.430 |
7.600 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.55
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0.01 |
1.78 |
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Current Ratio (Current Asset/Current Liability) |
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2.71
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0.30 |
1.46 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land and Site
Development
- Motor Cycle
- CWIP Civil
- CWIP
Electrical
- CWIP Plant
and Machinery
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
L27106TN2003PLC051727 |
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Name of the
company |
KAMACHI SPONGE AND POWER CORPORATION LIMITED |
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Address of the
registered office or of the principal place of business in |
No. 664, |
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Type of charge |
Others |
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Particular of
charge holder |
Oriental Bank of Commerce Mylapore Branch, 63 Radha Krishnan Salai Chennai – 00004, |
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Nature of
description of the instrument creating or modifying the charge |
Agreement of
Hypothecation of assets |
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Date of
instrument Creating the charge |
09.12.2006 |
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Amount secured by
the charge |
Rs. 27.000
Millions |
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Short particulars
of the property charged |
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Bankers Charges
Report as per Registry
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Name of the company |
KAMACHI SPONGE
AND POWER CORPORATION LIMITED |
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Presented By |
Mr. G L Kothari
– Director |
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1) Date and description of instrument creating the change |
25.02.2005 Agreement of Hypothecation
of goods and assets Agreement of loan
for overall limit Agreement of
pledge of goods and assets Letter regarding
the grant of individual limits within the overall limit Agreement for
ceding pari passu charge between State Bank of |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 140.000
Millions Facility : Term
Loan |
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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 on
all fixed assets Second charge on
Raw Materials, stores and spares on pari passu basis with Andhra Bank |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
2.00 % over SBAR effective rate of interest 12.25 % p.a. with monthly rests. Margin 40 % Repayment
schedule : Repayment to start after 18 months from the first disbursement,
Repayable in 4 quarterly installments of Rs. 4.454 Millions each and 18
quarterly installments of Rs. 6.788 Millions each. Total tenor of the tem
loan inclusive of moratorium will be seven years. All others terms
and conditions as per instruments enclosed.
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5) Name and Address and description of the person entitled to the charge. |
State Bank of 155, Anna Salai,
Industrial Finance Branch Chennai – 600002 |
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6) Date and brief description of instrument modifying the charge |
23.04.2005 Memorandum of
Deposit of title deed |
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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. |
The company has
delivered and deposited with the State Bank of India, 155, Anna Salai,
Industrial Finance Branch, Chennai – 600002 the documents of title relating
to the immovable properties of the company comprising of land and buildings
and erection thereon situated at 49, Pappankuppam, Gummudipoondi Taluk,
Thiruvallur District and as more particularly descrined in the Memorandum of
deposit of title deed dated 23.04.2005 holding for self and on behalf of
Andhra Bank, Chennai Main Branch, 48/39, Wavoo Mansion, Rajaji Salai Chennai
to secure the term loan facilities granted by
And charge
created shall rank pari passu first charge. |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.90 |
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1 |
Rs.80.78 |
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Euro |
1 |
Rs.55.18 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
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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