MIRA
INFORM REPORT
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Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
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Name : |
AVTAR STEEL PRIVATE LIMITED |
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Registered Office : |
A-131, Wazirpur Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.05.1996 |
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Com. Reg. No.: |
55-78684 |
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CIN No.: [Company
Identification No.] |
U27104DL1996PTC078684 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELA14805A |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Manufacturing of Stainless Steel Products. |
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 140000 |
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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 experience 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 : |
A-131, Wazirpur Industrial
Area , |
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Tel. No.: |
91-11-47039010 / 20 / 47087696 / 42474555 |
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Fax No.: |
91-11-27314479 |
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E-Mail : |
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Website : |
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Factory : |
Khewr a Road, Bahalgarh,
Sonepat, Haryana |
DIRECTORS
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Name : |
Mr. Bir Bhan Jindal |
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Designation : |
Chairman & Managing Director |
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Address : |
AH-6, Shalimar Bagh, |
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Mobile No. : |
91-9810289601 |
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Date of Birth/Age : |
20.05.1957 |
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Date of Appointment : |
06.05.1996 |
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Name : |
Mr. Ram Avtar Garg |
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Designation : |
Director |
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Name : |
Mr. Janamohan Mahapatra |
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Designation : |
Director |
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Address : |
C – 61, Pandav Nagar, |
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Date of Appointment : |
16.10.2001 |
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Name : |
Mr. Dilbag Garg |
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Designation : |
Director |
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Address : |
JP-113, GF, Pitampura, |
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Date of Birth/Age : |
20.03.1969 |
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Date of Appointment : |
19.09.2002 |
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Name : |
Mr. Sumit
Jindal |
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Designation : |
Director |
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Address : |
AH-6, Shalimar Bagh, |
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Mobile No. : |
91-9810377789 |
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Date of Birth/Age : |
12.02.1989 |
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Date of Appointment : |
15.02.2007 |
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Name : |
Mr. Amit
Jindal |
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Designation : |
Director |
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Email : |
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Mobile No. : |
91-9811777869 |
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Name : |
Mr. Deepanker
Goswami |
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Designation : |
Director
[Sales & Marketing] |
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Email : |
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Mobile No. : |
91-9899131900 |
SHAREHOLDING PATTERN
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Bodies corporate |
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13.28 |
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Directors or relatives of directors |
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50.35 |
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Other top fifty shareholders |
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36.37 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Stainless Steel Products. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R K Tuli and Associates Chartered Accountants |
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Address : |
7 A/41, WEA Karol Bagh, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 15.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,197,100 |
Equity Shares |
Rs. 10/- each |
Rs. 11.971
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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11.971 |
11.971 |
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2] Share Application Money |
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3.000 |
0.000 |
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3] Reserves & Surplus |
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22.440 |
21.793 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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37.411 |
33.764 |
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LOAN FUNDS |
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1] Secured Loans |
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10.476 |
4.414 |
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2] Unsecured Loans |
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2.191 |
3.045 |
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TOTAL BORROWING |
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12.667 |
7.459 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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50.078 |
41.223 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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12.744 |
10.416 |
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INVESTMENT |
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5.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.382 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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34.495 |
33.890 |
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Sundry Debtors |
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21.827 |
11.130 |
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Cash & Bank Balances |
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0.645 |
0.858 |
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Loans & Advances |
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6.619 |
2.915 |
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Total
Current Assets |
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63.586 |
48.793 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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30.819 |
17.844 |
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Provisions |
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0.825 |
0.160 |
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Total
Current Liabilities |
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31.644 |
18.004 |
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Net Current Assets |
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31.942 |
30.789 |
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MISCELLANEOUS EXPENSES |
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0.010 |
0.018 |
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TOTAL |
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50.078 |
41.223 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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106.281 |
77.129 |
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Total Income |
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106.281 |
77.129 |
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Profit/(Loss) Before Tax |
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1.135 |
2.001 |
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Provision for Taxation |
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0.870 |
0.160 |
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Profit/(Loss) After Tax |
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0.265 |
1.841 |
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Expenditures : |
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Depreciation & Amortization |
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2.103 |
1.597 |
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Other Expenditure |
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103.043 |
73.531 |
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Total Expenditure |
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105.146 |
75.128 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.25 |
1.09 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.07 |
2.59 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.49 |
3.38 |
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Return on Investment (ROI) (PBT/Networth) |
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0.03 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.18 |
0.75 |
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Current Ratio (Current Asset/Current Liability) |
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2.01 |
2.71 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
AVTAR STEEL
PRIVATE LIMITED |
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Presented By |
Branch Manager,
Oriental Bank of Commerce, Axadpur Delhi – 110033 |
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1) Date and description of instrument creating the change |
Agreement of
Hypothecation of Book Debts LD 16 dated 23.04.1999 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit Limit
of Rs. 3.000 Millions against Hypothecation of Book Debts |
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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 |
Hypothecation of
Receivables belonging to the company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin for CC [Hypothecation] @ 50 % on Book
Debts D. P. shall be allowed against chargeable assets calculated as per H.
O. Guidelines Period One
Year Rate of Interest
3.84 % OPLR with minimum
of 16.84 % p.a. with quarterly rests and Usual bank charges, in the event of
irregularity the overdue amount shall become payable by the borrower
immediately and penal interest @ 18.88 % p.a. shall be charged on the overdue
amount |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of
Commerce |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
80017181 |
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Corporate
identity number of the company |
U27104DL1996PTC078684 |
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Name of the
company |
AVTAR STEEL PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
A-131, Wazirpur Industrial Area, |
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Type of charge |
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Particular of
charge holder |
Oriental Bank of Commerce Limited LU Block, Pitampura, |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental agreement to secure credit / loan facilities dated
26.03.2007 |
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Date of
instrument Creating the charge |
26.03.2007 |
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Amount secured by
the charge |
Rs. 13.600
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 11.25 % on
monthly rests Penal Interest @
2 % Terms of repayment Term Loan
repayable in 60 equal monthly installments starting from June 2007. Margin 25 % as earlier Extent operation of the charge Hypothecation of
Plant and machinery fixed assets of the company. |
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Short particulars
of the property charged |
Hypothecation of
Plant and machinery fixed assets of the company. |
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Date of latest
modification prior to the present modification |
01.11.2006 |
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Particulars of
the present modification |
Fresh Term Loan
has been sanctioned of Rs. 13.600 Millions Total Term Loan
amount is Rs. 15.970 Millions |
AS PER WEBSITE
Company Profile
Since its inception in 1996 at Sonepat, Haryana subject had
come a long way and developed itself in the domestic steel industry. Having
more than 28 years of experience in steel Industry Mr. B.
B. JINDAL, Chairman&
Promoter is leading the company under his Indigenous,
Noble, Dynamic, and Optimistic Visionary Leadership.
He is very well supported by his two sons Mr. AMIT JINDAL
and Mr. SUMIT JINDAL and with the team of professionals who
are expert in their respective fields.
Subject was established in year 1995 and commercial
production started in year 1996.Having situated in outskirts of Sonepat just
35Kms from
Subject is
equipped with latest testing facility chemical & and electronic lab with
all the required instruments. Company is well equipped with latest machineries
to process the scrap into SS Ingots/Flats and other shapes desired.
Subject provides
its customers with a high quality service, at very competitive & affordable
prices, through an ongoing system of improvements in all areas of company’s
activities. They promote co-operations internally between all divisions an
externally amongst their staff, customers & suppliers.
Going to be an ISO 9001:2000 international
standard, company emphasizes on adoption of “process Approach” In developing and improving the
effectiveness of quality management systems.
Subject deals in
Stainless Steel INGOTS, HOT ROLLED FLATS, ROLLED ROUNDS, FORGED ROUNDS, BRIGHT
BARS as well as ALLOY STEELS also.
Milestones
Company adds its second melting furnace in year 1998 with
the capacity of 7500 TPA.
Company achieved another milestone in steel industry by establishing its second
unit under the name of MAHAMAYA CASTING PVT LTD for rolling
of steel, with the annual capacity of 50,000 TPA at Bahalgarh, Sonepat,
Haryana. The company is spread in the area of about 5 Acres.
Process
Subject is known as one of the reputed manufacturer of
Stainless Steel products through Induction furnace from which molten steel is
poured into (Hot Moulds) of
different sizes to form Ingots mainly in grades of AISI-304, 316, 310. Their
specialty is in Ingots, Round bars, Flats, Bright Bars & Forged Rounds
Subject’s products are generally sold to steel service centers or directly to
original equipment manufacturers (OEMs). Their steel is used in a variety of
industries including automotive, mining and oilfield equipments.
The Group is more then three decade old in the Indian Steel Industry.
Recycling
Steel is the most recycled product in the world. Old home appliances, vehicle,
vehicle parts, industrial by-products and steel cans, objects that are
discarded by society are transformed into raw material for steel making.
An Induction furnace is an electrical furnace in which the heat is applied by
induction heating of a conductive medium (usually a metal) in a crucible around
which water-cooled magnetic coils are wound. The advantage of the
induction furnace is a clean, energy-efficient and well-controllable melting
process compared to the most other means of metal melting. Most modern
foundries use this type of furnace and now also more iron foundries are replacing
cupolas with induction furnaces to melt cast iron, as their former emit lots of
dust and other pollutants. Induction furnace capacities range from less than
one kilogram to one hundred tonnes capacity, and are used to melt iron and
steel, copper, aluminium and precious metal.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.39.79 |
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1 |
Rs.81.23 |
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Euro |
1 |
Rs.56.41 |
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 |
NO |
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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 |
|
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. |
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 |
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