MIRA INFORM REPORT

 

                        

Report Date :

30.05.2007

 

IDENTIFICATION DETAILS

 

Name :

SONI STEEL AND APPLIANCES PRIVATE LIMITED

 

 

Registered Office :

Gala No:2, Ground Floor, Vivek Industrial Estate, P-Plot, Walabhat Road, Goregaon (E), Mumbai;400063, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

19.08.2003

 

 

Com. Reg. No.:

11-141795

 

 

CIN No.:

[Company Identification No.]

U27105MH2003PTC141795

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS43254B

 

 

PAN No.:

[Permanent Account No.]

AAHCS9715Q

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Supplier of Steel & Appliances

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

 -

 

 

Status :

New Company

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively new company and yet to establish itself. Trade relations are fair. Payments are reported as slow but correct.

 

The company can be considered for small business dealings with slight caution initially.

 

 

LOCATIONS

 

Registered Office :

Gala No:2, Ground Floor, Vivek Industrial Estate, P-Plot, Walabhat Road, Goregaon (E), Mumbai;400063, Maharashtra, India

 

 

Factory 1 :

Plot No. 44 & 46, GDDIC, Near Fire Station, Nani Daman, India

 

 

DIRECTORS

 

Name :

Mr. Sanjeeva Panduranga Shetty

Designation :

Director

Address :

29, Golden Beach C.H.S. Ltd. Ruia Park, Juhu, Vile- Parle(West), Mumbai- 400054, Maharashtra

Date of Birth/Age :

01.05.1961

Date of Appointment :

19.08.2003

 

 

Name :

Mr. Panduranga Vanita Shetty

Designation :

Director

Address :

29, Golden Beach C.H.S. Ltd. Ruia Park, Juhu, Vile- Parle(West), Mumbai- 400054, Maharashtra

Date of Birth/Age :

26.01.1970

Date of Appointment :

19.08.2003

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

 

No. of Shares

S. Panduranga Shetty

 

75000

Panduranga vanita Shetty

 

5000

 

Equity Share Break up:

Category

Percentage

Director or Relatives of Director

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

 Manufacturer and Supplier of Steel & Appliances

 

GENERAL INFORMATION

 

Suppliers :

      Ambika Electricals

      Ankur Enterprise

      Arihant Electrical

      Bhushan Limited

      Bhushan Steel & Strips Limited

      Bipin Engineering works

      Dilip Machines (INDIA)

      Electro Commutators

      Evergreen Industries

      Gabon Trading Company

      I.I.M Products

      Hindustan Carbon Bursh Manufacturing Company

      Insulation & Wires

      Jignesh Enterprises

      Mihir Agencies

      Prince Multiplast Private Limited

      Sar Engineering Limited

      Shafree Engineering Works

      Shreeji Enterprises

      Siddhesh Industrial

      Siddhivinayak Electricals

      Swastik Electrical Insulation

 

 

 

Customers :

      Discuss Appliances

      Ramdev Appliances

      Sai Electricals

      Vijaya Industries

      Vinayak Enterprises

 

 

No. of Employees :

15

 

 

Bankers :

Bharat Co-operative Bank Limited . Mumbai

 

 

Facilities :

NIL

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Jagdish P. Khokhani

Chartered Accountant

Address :

A-103, 7/235, Milind Bhavan, Opp. Alahabd Bank, M.G.Road, Goregaon(West), Mumbai:400062, Maharashtra

Tel. No.:

91-222-8742010

Mobile No.:

91-9627236140

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000

Equity Shares

Rs.10/- each

Rs.20.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

600000

Equity shares

Rs.10/- each

Rs.6.000 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

6.000

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

(6.997))

NETWORTH

 

 

(0.997)

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

39.426

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

39.426

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

38.429

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

26.535

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

1.445

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

7.395

 

Sundry Debtors
 

 

11.414

 

Cash & Bank Balances
 

 

0.565

 

Other Current Assets
 

 

3.481

 

Loans & Advances
 

 

0.963

Total Current Assets
 

 

23.818

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

13.125

 

Provisions
 

 

0.443

Total Current Liabilities
 

 

13.568

Net Current Assets
 

 

10.250

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.199

 

 

 

 

TOTAL

 

 

38.429

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2006

Sales Turnover

 

34.401

Other Income

 

 

 

Total Income

 

 

34.401

 

 

 

 

Profit/(Loss) Before Tax

 

 

(4.017)

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

(4.017)

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

 

 

 

Manufacturing Expenses

 

 

 

 

Administrative Expenses

 

 

 

 

Raw Material Consumed

 

 

 

 

Purchases made for re-sale

 

 

38.419

 

Consumption of stores and spares parts

 

 

 

 

Increase/(Decrease) in Finished Goods

 

 

 

 

Salaries, Wages, Bonus, etc.

 

 

 

 

Managerial Remuneration

 

 

 

 

Payment to Auditors

 

 

 

 

Insurance Expenses

 

 

 

 

Power & Fuel

 

 

 

 

Depreciation & Amortization

 

 

3.213

Total Expenditure

 

 

41.632

 

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

 

 

31.03.2006

PAT / Total Income

(%)

 

 

(11.67)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

(11.67)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 

(7.97)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

4.02

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

(13.60)

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

1.75

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Name of the company

SONI STEEL AND APPLIANCES PRIVATE LIMITED

Presented By

The Bharat Co-op Bank (Mumbai) Limited Ghatkopar (West) Branch, Mumbia;400086

1) Date and description of instrument creating the change

3rd August 2004 Memorandum of Entry recording the deposits of title deeds.

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

Rs.13.000 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

A the request of the borrower, the Bank has sanctioned following Credit Facilities:

 

Nature of Facility

Rs. in Millions

Cash Credit

2.500

Term Loan

10.500

Total:

13.000

 

To Secure the due repayment of the all Bnaking Limits and for interest and other charges thereon, at the request of the Bank, the Borrower company has deposited the title deeds with intent of create equitable mortgage in favor of the Bank in respect of

Following immovable property standing in the name of the company.

 

All that piece and parcel of land bearing plots No: 44 and 46, admeasuring 2100 sq. Mtrs. Daman Industrial Estate, bearing part of the Cadastrals Survey No:34/1-A, situated in Village of Ringanwada, within the village panchavat limits of Dabhel., Taluka daman, Sub-Dist Daman and Daman District together with factory Building Constructed thereon consisting of Ground floor admeasuring 6000 sq.fts, Mezzanine Floor admeasuring  11,600 Sq. fts. And permanently fastened to anything attached to the said properties fisture\, fitting etc, erected or hereafter to be erected thereon both present and future.

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

Interest at such rate at such rests as may be decided by Bank as per guidelines of Reserve Bank of India from time to time for all  costs, charges and expenses incurred by the bank for preservation, protection defence and perfection of this securities or for attempted or actual realization thereof and also for due payment of all present and future indebtedness and liabilities of the Borrower to the Bank of any kind, in any manner whether solemnly or joint primary or collateral accrued or accruing with all relatives interest, charges, cost, expenses.

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

The Bharat Cooperative Bank (Mumbai) Limited

103-106, Jyoti Chambers, 1st Floor, Junctions of J.V. Road, and Hirachand Desai Road, Ghatkopar (West), Mumbai;4000086

6) Date  and brief description of instrument modifying the charge

28th October 2005 Memorandum of Entry Recording the Continuation of Deposits of Title deeds by way of Second Modification.

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 M/s. Iskon Home Appliance associate concern of SONI STEEL AND APPLIANCES PRIVATE LIMITED, the Bank has sanctioned to the said firm the following banking limits. This is in addition to the earlier banking limits sanctioned to the company as under:

 

Nature of Facility

Rs.in Millions

SONI STEEL AND APPLIANCE PRIVATE LIMITED

 

Cash Credit

17.500

Letter of Credit

5.000

Term Loan (Fresh)

12.500

Total(A):

45.237

 ISKON HOME APPLIANCE

 

Cash Credit

1.000

Bill Discounting

9.000

Total(B):

10.000

Total (A) + (B):

55.237

 

To secure the due repayment of the all Banking Limits and for interest and other charges thereon, at the request of the Bank, the Borrower company has continued to extend the existing first charge in favour of the Bank in respect of Following immovable property standing in the name of the company.

 

All that piece and paracel of ALnd bearing plots No: 44 and 46, admeasuring 2100 sq. mtrs, Daman Industrial Estate, bearing part of the cadastral Survey no: 34/1-A, situated in Vilalge of Ringanwada, within the Village panchayat limits of Dabhel, Taluka Damna, Sub-Dist Daman District together with factory building constructed thereon consisting of Ground Floor admeasuring 6,000 sa. Ft, Mezzanine Floor admeasuring  11,600 sq.fts. and permanently fastened to anything attached to the said properties fixtures fitting etc. erected or hereafter to be erected thereon both present and future .

 

Other terms and conditions as per the loaning documents execute by the Borrower company. The total charge stand modified from Rs. 45.237 Millions to Rs.55.2378 Millions

 

Save and except the above the terms and conditions mentioned in the original Memorandum of Entry recording the deposits of title deeds dated 3sr August 2004 for Rs.13.000 Millions and as modified by memorandum of Entry recording th Continuation of Deposits of Title Deeds dated 3/3/2005 for Rs. 45.237 Millions by way of First Modification shall remain the same.

 

Descriptions of Assets

 

Factory Building

 

Machinery

 

Electric Fitting

 

 

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.40.45

UK Pound

1

Rs.80.30

Euro

1

Rs.54.37

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

21

 

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