MIRA INFORM REPORT

 

 

Report Date :

03.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SHYAMJI MINERAL TRADING CORPORATION

 

 

Registered Office :

678, Shyam Kutir, Hanuman Nagar Kanhan, Nagpur – 44140, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

2002

 

 

IEC No.:

0306089041

 

 

PAN No.:

[Permanent Account No.]

APXPK1274E

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Mining / Producing of Manganese Ore and Chrome Ore, converting of Ferro alloys, etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

----

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed concern having satisfactory track. Proprietor is reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The concern can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

678, Shyam Kutir, Hanuman Nagar Kanhan 441 401, District Nagpur, Maharashtra, India

Tel. No.:

91-7102-236167

Mobile No.:

91-9422803147

Fax No.:

91-7102-236176

E-Mail :

shyamjimineral@shyamjiminerals.com

Website :

shyamjiminerals.com 

Area :

5500 sq.fts

Location :

Owned

 

 

Corporate Office :

579, Tarsa Road, Kanhan Nagpur, Maharashtra, India

Tel. No.:

91-7102-236167

Mobile No.:

91-94228-06580

Fax No.:

91-7102-236176 / 236040

E-Mail :

shyamjiminerals@shyamjiminerals.com

 

 

SOLE PROPRIETOR

 

Name :

Mr. Jay Babulal Khandelwal

Designation :

Proprietor

Address :

Tharsa Road, Kanhan, Nagpur – 44140, Maharashtra

Date of Birth/Age :

34 Years

Qualification :

B Com

 

 

BUSINESS DETAILS

 

Line of Business :

Mining / Producing of Manganese Ore and Chrome Ore, converting of Ferro alloys, etc.

 

 

Exports :

 

Products :

Ferro Manganese , Silicon Manganese

Countries :

Pakistan, Indonesia

 

 

Imports :

 

Products :

Silicon Ferro

Countries :

China

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

GENERAL INFORMATION

 

Bankers :

Industrial Development Bank of India

Address: Gupta Bhavan, Nagpur

 

 

Banking Relations :

Satisfactory

 

 

Associates/Subsidiaries :

·         Krishnapping Alloys Private Limited

Address: 579, Tharsa Road, Kanhan,Nagpur – 44140, Maharashtra

Activity: Excavation and supply of Ferro Manganese

 

·         Vidhi Mineral and Alloys Private Limited

Address: 579, Tharsa Road, Kanhan, Nagpur – 44140, Maharashtra

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

SUMMARIZED FIGURES:

 

Particulars:

Amount

Secured Loans

16.809

Unsecured loans

0.613

Current Liabilities

6.272

Fixed assets

23.608

Capital Work in Progress

0.478

Investments

0.860

Inventories:

 

 

Sundry Debtor

1.800

 

Cash and Bank Balances

1.500

 

Other current assets

0.075

 

Loan and Advances

0.400

Profit and Loss Account

0.620

 

 

LOCAL AGENCY FURTHER INFORMATION

 

WEBSITES DETAILS:

 

Shyamji Mineral Trading Corporation, SMTC, is an organization with little time to look back these days. Growth and change are coming at a rapid pace for this leader as it moves and adapts to the enormous opportunities of the 21st Century minerals and ores marketplace.

 

But that doesn’t mean there’s little by way of past accomplishment.  In fact, it is precisely the long and proud record of achievement that serves as inspiration and foundation for its future. 

 

From its roots in Nagpur, centrally located industrial hub of India, the group has grown to become the region’s largest producer and distributor of premium quality Minerals and Ores.

 

In the process, the minerals and ores produced under the group’s umbrella have become synonymous with “highest quality.” 

 

Today, with annual production of over 150,000 MT, and an additional 50,000MT in trading, Nagpur’s-headquartered group continues to move forward.  As they take their products to the next level of industrial value, they are also broadening their strong core business of excavation and mining to include a wide array of new products and new categories along with bringing in several valued added products in their supporting distribution business in the Ferro Alloys segment, there by complementing the production and distribution businesses.

 

 

 

Origin

The exact origin of the group was in the form of distributing Ores and Alloys, dating back to 1985. During the beginning years, trading was primarily the main business. This helped the group build impeccable rapport with both the suppliers and buyers in the industry. It also served another purpose. These early group’s employees were reminded daily that the company’s success would depend upon their adopting the same kind of vision, initiative, determination and hard work that drove the pioneers who created India’s Mineral and Ore industry.  Following in line, several mines were acquired; Two most prominent ones worth mentioning are the 160 acres and 30 acre mines situated at Sausar and Boujhani respectively.

 

Social responsibilities

With the evolution and growth of the company, a need to acknowledge the society on the whole was felt by the founder. A trust by the name of “Khandelwal Trust” was started with the intention of donating funds to Hospitals, Schools and also for extra ordinary needs of the society. Medical facility and education was prioritized and free medicines and education are being provided to the needy.

 

This Way and That

The group’s promise of quality has remained unchanged over the past 20 years, but the corporate umbrella under which this company has prospered has undergone significant modification, especially during the last 10 years of intense excavation and mining activity.

 

Equipments and Machinery

While discussing the mining activities of the group, perhaps a word on its equipments/ machinery would be helpful.

 

·              Volvo Excavator E 460  1No.

·              Volvo Excavator E 290  1No.

·              Volvo Excavator E 210  1No.

·              Volvo FM - 9 3X3    9Nos.

·               Ashok Leyland Tourus 2516  8 Nos.

·               Ashok Leyland Tippers 3x3   6 Nos

·               LM 100 Drilling Machine   

·               CM 341 Drilling Machine

 

A Growing Company         

The group today has a peak employment of 400. The company currently operates 2 mines and 4 strategically located distribution centers.

 

Chief architect of today’s highly successful group is the company’s Chairman and Managing Director, Ajay Khandelwal, a veteran Ore industry executive whose acumen and vision brought the group to becoming the largest producer and distributor of High Grade Manganese Ores in the region.  Under his leadership the group has focused on the execution of fundamentals, maintained its firm commitment to quality, and has been rigorously consistent in its strategy.  With these principles the group has steadily grown both its top and bottom line by increasing excavation and mining activity, reducing its supply chain costs and growing through volumes. Khandelwal and his management team have set a rapid pace as they execute strategies to further strengthen the group’s dominant position in Minerals and Ores industry, expand into high-growth high grade ores and value-added produce in the Ferro Alloys Segment, and acquire high yield mines that represent opportunities for profitable long term growth.          

 

 

 

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.39.73

UK Pound

1

Rs.81.37

Euro

1

Rs.56.63

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

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

 

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