MIRA
INFORM REPORT
|
Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
VKG STEELS AND ENERGY PRIVATE LIMITED |
|
|
|
|
Registered Office : |
163 / 1, K Sons Complex, 1st Floor, Broadway, Chennai –
600108, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
14.09.2004 |
|
|
|
|
Com. Reg. No.: |
054213 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27102TN2004PTC054213 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEV06528E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCV9111H |
|
|
|
|
Legal Form : |
Private Limited Liability Company. |
|
|
|
|
Line of Business : |
Manufacturer of Sponge Iron. |
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 1265000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and established company having moderate track
records. Company’s profitability is under severe pressure. It has some accumulated
losses,. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions with slight caution initially. |
LOCATIONS
|
Registered Office : |
163 / 1, K Sons Complex, 1st Floor, Broadway, Chennai –
600108, Tamilnadu |
|
Tel. No.: |
91-44-25249501 to 25249504 |
|
Fax No.: |
91-44-25249503 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
No.14/2A2, |
|
Tel. No.: |
91-44-27278833 |
|
Fax No.: |
91-44-27278837 |
DIRECTORS
|
Name : |
Mr. Vinod Kumar Garg |
|
Designation : |
Director |
|
Address : |
13 / |
|
Date of Appointment : |
14.09.2004 |
|
|
|
|
Name : |
Mrs. Sangita Garg |
|
Designation : |
Director |
|
Address : |
13 / |
|
Date of Appointment : |
14.09.2004 |
|
|
|
|
Name : |
Mr. Rajiv Kumar Gupta |
|
Designation : |
Director |
|
Address : |
73, Gopalapuram, |
|
Date of Appointment : |
01.02.2005 |
|
|
|
|
Name : |
Sreedharan Nair Jayadhar |
|
Designation : |
Director |
|
Address : |
RDC – 61, Raj Nagar, |
|
Date of Appointment : |
17.05.2005 |
|
|
|
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
1. Mr. Vinod Kumar Garg |
5000 |
|
2. Mrs. Sangita Garg |
5000 |
|
3. Tulasyan & Sons Private Limited |
120000 |
|
4. Rajnish Finvest Private Limited |
80000 |
|
5. Shefali Goods Private Limited |
40000 |
|
6. Kanahiya Deal-Com private
limited |
80000 |
|
7. Basudev Trade Link Private Limited |
160000 |
|
8. Bhuwani Brothers Private Limited |
120000 |
|
9. Shiv Shakti Communication & Investment Private Limited |
140000 |
|
10. Express Tie Up Private Limited |
40000 |
|
11. Adishwar Trade Link Private Limited |
40000 |
|
12. Annudeep Towers Private Limited |
100000 |
|
13.Sati Sales Private Limited |
100000 |
|
14. Shree Mahavir Management Services Private Limited |
100000 |
|
15. Kripalu Tradelink Private Limited |
40000 |
|
16. Charles India Private limited |
40000 |
|
17. Kotmak Commercial Private Limited |
40000 |
|
18. Kunj Bihari Tie-Up Private Limited |
20000 |
|
19. Napraj Commercial Private Limited |
560000 |
|
20. Pushpit Steels Private Limited |
80000 |
|
Category |
Percentage |
|
1. Bodies corporate ( not mentioned above ) |
97 % |
|
2. Directors or Relatives of Directors |
3% |
|
Total |
100 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sponge Iron |
GENERAL INFORMATION
|
|
|
|
No. of Employees : |
Around 500 |
|
|
|
|
Bankers : |
1. Sate Bank of Industrial
Finance Branch, 155, Anna Salai Chennai – 600 002 2. State Bank Of Oriental House,
115, Broadway, Chennai - 600 108 3. Oriental Bank
of Commerce 63, Dr.
Radhakrishnan Salai, Mylapore, Chennai – 600 004 4. UCO Bank 730, Chennai – 600 006 State Bank of UCO Bank State Bank of State Bank of Travancore Punjab National Bank ING vysya Bank |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Dwarka Ashoka & Associates Chartered Accountant |
|
Address : |
|
|
Tel. No.: |
91-44-30288445 to 30288449 |
|
Mobile No.: |
|
|
Fax No.: |
91-44-28523852 |
|
E-Mail : |
|
|
|
|
|
Associates : |
v
Pushpit Steel Private Limited v
Pulkit Steel Re-Rolling Mill v
V S Steel and Power Project Private Limited v
Napraaj Commercial Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16000000 |
Equity Share |
Rs.10/- Each |
Rs.160.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12992000 |
Equity Share |
Rs.10/- Each |
Rs.129.920
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
85.440 |
19.100 |
|
|
2] Share Application Money |
|
111.200 |
42.579 |
|
|
3] Reserves & Surplus |
|
128.010 |
28.500 |
|
|
4] (Accumulated Losses) |
|
(8.240) |
0.000 |
|
|
NETWORTH |
|
316.410 |
90.179 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
414.732 |
1.436 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
414.732 |
1.436 |
|
|
DEFERRED TAX LIABILITIES |
|
9.553 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
740.695 |
91.615 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
173.700 |
5.281 |
|
|
Capital work-in-progress |
|
480.494 |
65.166 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
62.540 |
1.060 |
|
|
Sundry Debtors |
|
8.882 |
0.000 |
|
|
Cash & Bank Balances |
|
13.484 |
0.013 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
54.094 |
44.949 |
|
Total
Current Assets |
|
139.000 |
46.022 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
52.860 |
25.215 |
|
|
Provisions |
|
0.000 |
0.000 |
|
Total
Current Liabilities |
|
52.860 |
25.215 |
|
|
Net Current Assets |
|
86.140 |
20.807 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.361 |
0.361 |
|
|
|
|
|
|
|
|
TOTAL |
|
740.695 |
91.615 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
|
|
Sales Turnover |
|
|
30.624 |
|
|
Other Income |
|
|
1.252 |
|
|
Total Income |
|
|
31.876 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
|
1.480 |
|
|
Provision for Taxation |
|
|
9.720 |
|
|
Profit/(Loss) After Tax |
|
|
(8.240) |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
|
1.192 |
|
|
Depreciation & Amortization |
|
|
4.209 |
|
|
Other Expenditure |
|
|
19.594 |
|
Total Expenditure |
|
|
24.995 |
|
Note :
The subject company started its commercial production of 1st
Sponge Iron Kiln on October 11, 2005 and hence there are no Profit and Loss figures
are available for the financial year ended March 31, 2005.
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
(25.85) |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
4.64 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
2.88 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.02 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.48 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.63 |
1.82 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
V.K.G. Steel And
Private Limited |
||||
|
Presented By |
V.K.G. Steel And
Private Limited & State Bank of |
||||
|
1) Date and description of instrument creating the change |
a) Working
capital Consorting Agreement dated 10th August 2005 b) Joint Deed of
Hypothecation dated 10 th August 2005 |
||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Working capital
limit of RS.157.700 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 |
Primary Security
: First change on
the whole of the current assets of the company namely stock of raw materials,
stock in process, semi finished and finished goods, stores and spares not
relating to plant and machinery (consumable stores and spares), bills
receivable and book debts and all other moveable, both present and future
whether now lying lose or in case or which are now lying or stored in or
about or shall hereinafter from time to time during the continuance of the
security of these the company’s factories, premises and godowns situate in
Chennai in the state of Tamilnadu: or where else the same may be or be held
by any party to the order or disposition of the company or in the cource of
transit or on high seas or on order or delivery, howsoever and where so ever
in the possession of the company and either by way of substitution or
additional on Pari Passu basis with State Bank of India for self and acting as agent for State Bank
of Indore, Oriental Bank Of Commerce And Uco Bank. Collateral
Security : Second Charge on
reciprocal basis with the term lenders on all fixed assets of the company and
hypothecation on all the plant and machinery. |
||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Fund Based 2 % above the SBAR
(Present SBAR is 10.25%) viz Efficient
interest rate is 12.25%p.a. with monthly rests. Non Fund Based As per Bank’s
standard charges. All other terms
and conditions as per the documents enclosed herewith. |
||||
|
5) Name and Address and description of the person entitled to the charge. |
1. Sate Bank of Industrial
Finance Branch, 155, Anna Salai Chennai – 600 002 2. State Bank Of Oriental House,
115, Broadway, Chennai - 600 108 3. Oriental Bank
of Commerce 63, Dr. Radhakrishnan
Salai, Mylapore, Chennai – 600 004 4. UCO Bank 730, Chennai – 600 006 |
||||
|
6) Date and brief description of instrument modifying the charge |
Memorandum of
Deposit of Title Deed dated 07th
December, 2005 |
||||
|
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
deposited the documents of title in respects of its immovable properties
i.e., all that piece and parcel of agricultural lands situated at Melapakkam
Village Uthrameur Takul, Kanchipuram District,(total extent 45.08 Acres) as
more fully mentioned in the memorandum of deposit of title deed, as attached
herewith the mortgage in favour of the Mortgagee for the purpose of securing
repayment to the mortgage of all the amounts owing to the mortgage under
advanced made and continued to be enjoyed and / or to be made from time to
time to the Mortgagr by the Mortgage
by way of loan / cash / credit / overdraft and other type of facilities not
exceeding RS. 821.000 millions together with interest, costs charges thereon
and also to secure all other indebtedness of the mortgage to the Mortgage that may arise in future
. |
|
Corporate
identity number (CIN) Foreign company registration number |
U27102Tn2004PTC054213 |
|
Name of the
Company |
V.K.G. Steel And
Private Limited |
|
Address |
163 / 1, K Sons Complex, 1st Floor, Broadway, Chennai –
600108, Tamilnadu |
|
This form is for |
|
|
Type of Charge |
Immovable
Property Book Debts Others |
|
Particulars of
the charge holder |
. Sate Bank of Industrial
Finance Branch, 155, Anna Salai Chennai – 600 002 Tamilnadu Email :
k.sampathkumar@sbi.co.in |
|
Nature or
description of the instrument creating or modifying the charge (copy to be
attached) |
a) Agreement of Pledge of Goods and Assets b) Agreement of hypothecation of goods and
Assets c) Agreement of loan for overall limit dated d) Letter regarding grant of individual
limits within the overall limits and e) Memorandum of Deposit of Title Deed. |
|
Amount secured by
the charge |
RS.235.200
Millions |
|
Brief of the
principal terms and conditions |
2.00% Above SBI
Advance Rate (SBAR) presently 13.50 % |
|
Description of
the property charged indicating |
Primary : (1) for
CC/WC : First charge on current assets (stocks and receivable ) present and
future on pari passu basis with other Consortium banks, and (2) for LC:
Documents of Title Deeds / Merchandise covered under LC and charge on entire
current assets. Collateral : 2nd Charge on reciprocal basis with
the term lenders on all the fixed assets of the company which will include
the equitable mortgage the company’s factory land and building and
hypothecation on all plant & machinery etc. |
|
Particular of The
Present modification. |
The Sate Bank of
India has Sanctioned Additional Facilities by way of the Cash Credit was
enhanced from Rs.48.100 Millions to Rs.151.400 millions and LC was enhanced
from RS.20.000 Millions to RS.83.800 Millions Consequent to that overall
limit was enhanced from Rs. 68.100 too Rs 235.200 millions |
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.57 |
|
|
1 |
Rs.80.64 |
|
Euro |
1 |
Rs.54.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
26 |
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 |
|