MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHARP FERRO ALLOYS LIMITED |
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Registered Office : |
Mauza – Kamalpur, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.07.1990 |
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Com. Reg. No.: |
21-93185 |
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CIN No.: [Company
Identification No.] |
U2710WB1990 PLC093185 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS29125F |
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PAN No.: [Permanent
Account No.] |
AAHCS8998M |
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Legal Form : |
A Closely Held Public Limited Company. |
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Line of Business : |
Manufacturer and Exporter of Ferro alloys. |
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 911248 |
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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 : |
Mauza – Kamalpur, |
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Tel. No.: |
91-343-2562776 |
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Fax No.: |
91-343-2566949 |
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E-Mail : |
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Website : |
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Administrative Office : |
302, Time house, 5 - Commercial Complex, Wazirpur Industrial Area, |
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Tel. No.: |
91-11-27377131 |
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Fax No.: |
91-11-27377130 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. |
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Designation : |
Director |
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Address : |
A -255, Derawal Nagar, |
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Date of Birth/Age : |
03.11.1934 |
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Date of Appointment : |
18.05.2004 |
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Name : |
Mr.Tushar Rawat |
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Designation : |
Managing Director |
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Address : |
A -255, Derawal Nagar, |
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Date of Birth/Age : |
18.08.1961 |
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Date of Appointment : |
05.07.2003 |
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Name : |
Mr. Naresh Rawat |
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Designation : |
Director |
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Address : |
A -255, Derawal Nagar, |
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Date of Birth/Age : |
06.10.1955 |
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Date of Appointment : |
01.10.2003 |
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Date of ceasing: |
01.10.2004 |
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Name : |
Mr. Praveen Bhimrajka |
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Designation : |
Director |
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Address : |
A -15 Prem Kutir apartment, plot No. 25/1, sector – 9, Rohini, |
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Date of Birth/Age : |
19.01.1979 |
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Date of Appointment : |
10.10.2003 |
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Date of ceasing: |
10.03.2005 |
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Name : |
Mrs Neelam Mishra |
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Designation : |
Director |
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Address : |
House No. 41, H -5, Lig Flat
Sectoe 16, rohini, |
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Date of Birth/Age : |
27.03.1976 |
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Date of Appointment : |
10.10.2003 |
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Name : |
Mr. Rakesh Verma |
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Designation : |
Director |
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Address : |
220 /3, street No. 7, Padam Nagar, |
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Date of Appointment : |
10.10.2003 |
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Name : |
Mrs. Vandana Shah |
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Designation : |
Director |
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Address : |
E -20, Delhi Citizen Society, D C Chowk Sector 413, Rohini, Delhi –
110 085 |
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Date of Birth/Age : |
27.04.1974 |
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Date of Appointment : |
10.03.2005 |
KEY EXECUTIVES
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Name : |
Mr., Ranjeet Tripathi |
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Designation : |
Secretary |
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Address : |
Wz – 64, Shadipur Main Bazar, opposite West Patel Nagar, New Delhi ,
Delhi -110 008 |
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Date of Birth/Age : |
10.07.1973 |
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Date of Appointment : |
01.12.2004 |
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Date of ceasing: |
30.04.2005 |
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Name : |
Ms. Deeksha Bajaj Arora |
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Designation : |
Secretary |
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Address : |
E -5/47, sector – 16, Rohini, |
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Date of Birth/Age : |
08.03.1981 |
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Date of Appointment : |
01.06.2005 |
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Mobile No: |
91-9810364764 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr Lath Chnadra Kailash |
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10 |
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Mr. Naresh Dawar |
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10 |
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Mr. Amrit Pal |
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10 |
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Mr. Narendta Khanna |
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10 |
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Mr. Atul Bagla |
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10 |
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Asia Pacific Globex Limited |
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3383000 |
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Musha Trading and Exports Private limited |
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2646070 |
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Mr. |
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1950605 |
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Mr. Tushar Rawat |
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2120940 |
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Mrs. Neelam Rawat |
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409335 |
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Total |
10510000 |
Equity Shares Breakup (Percentage of Total Equity):
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Sr No. |
Category |
Percentage |
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1 |
Bodies corporate |
64.71 |
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2 |
Directors or relative of directors |
35.29 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Ferro alloys. |
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Products : |
· Ferro Chromium · Ferro Silicon · Silico Manganese · Ferro Manganese
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Exports : |
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Countries : |
Europe, |
PRODUCTION STATUS as on 31.03.2004:-
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Ferro Alloys |
MTs |
50000 |
12500 |
11569.845 |
|
Slags |
MTs |
--- |
--- |
12187.270 |
GENERAL INFORMATION
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Bankers : |
· The Bank of Rajasthan Limited Address: Karol Bagh, ·
Bank of Address: Pahar
Ganj, E mail: boipaharganj@bol.net.in |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P C Bindal and Company Chartered Accountants |
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Address : |
101, |
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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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15500000 |
Equity shares |
Rs. 10/- each |
Rs. 155.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
12700000 |
Equity shares |
Rs.10/- each |
Rs. 127.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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127.000 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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100.812 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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227.812 |
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LOAN FUNDS |
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1] Secured Loans |
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75.804 |
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2] Unsecured Loans |
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76.828 |
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TOTAL BORROWING |
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152.632 |
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DEFERRED TAX LIABILITIES |
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18.658 |
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TOTAL |
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399.102 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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111.172 |
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Capital work-in-progress |
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133.047 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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159.538 |
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Sundry Debtors |
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120.243 |
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Cash & Bank Balances |
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10.294 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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38.937 |
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Total
Current Assets |
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329.012 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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164.792 |
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Provisions |
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9.337 |
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Total
Current Liabilities |
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174.129 |
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Net Current Assets |
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154.883 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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399.102 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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|
31.03.2006 |
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Sales Turnover |
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570.309 |
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Other Income |
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15.986 |
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Total Income |
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586.295 |
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Profit/(Loss) Before Tax |
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21.973 |
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Provision for Taxation |
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8.117 |
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Profit/(Loss) After Tax |
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13.856 |
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Expenditures : |
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Raw Material Consumed |
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151.759 |
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Purchases made for re-sale |
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268.196 |
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Consumption of stores and spares parts |
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6.006 |
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Increase/(Decrease) in Finished Goods |
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19.962 |
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Salaries, Wages, Bonus, etc. |
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6.655 |
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Managerial Remuneration |
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|
0.120 |
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Payment to Auditors |
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|
0.182 |
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Interest |
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|
3.123 |
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Insurance Expenses |
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2.827 |
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Power & Fuel |
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115.093 |
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Depreciation & Amortization |
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7.485 |
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Other Expenditure |
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22.833 |
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Total Expenditure |
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584.279 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
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PAT / Total Income |
(%) |
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2.36 |
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Net Profit Margin (PBT/Sales) |
(%) |
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3.85 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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3.83 |
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Return on Investment (ROI) (PBT/Networth) |
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0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.43 |
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Current Ratio (Current Asset/Current Liability) |
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1.88 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporation identity number or foreign company registrations number of
the company |
U2710WB1990PLC093185 |
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Name of the company |
SHARP FERRO ALLOYS LIMITED |
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Address |
Mauza – Kamalpur, |
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This Form is for |
Modification of charge |
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Type of Charges |
· Immovable property · Book debts · Movable property |
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Particular of the charge holder
|
Bank of Address: Pahar Ganj, E mail: boipaharganj@bol.net.in |
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Nature or description of the instrument creating charge |
Pari – passu Letter dated 12.05.2007 |
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Date of the instrument creating charge |
12.05.2007 |
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Amount Secure by the charge |
Rs. 90.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of Interest: As per annexure ‘A’ Terms
of repayment: Payable on demand Margin: As
per Annexure ‘A’ Extent
and operation of the charge: 100% Others: To Collaterally secure all amounts payable
under revised credit facilities aggregating to Rs. 90.000 millions granted to
the company as detailed in Annexure ‘A’. |
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Short particulars of the
Property charged |
All stock of raw material, work in progress, consumable semi –
finished and finished goods and all present and future book debts,
outstanding moneys receivable, claims, bill in respect of Ferro Alloys
business from both plants (present and future) at Durgapur along with all
plant and machinery, land and building etc. in respect of both ferro Alloys
Plant at Durgapur on first pari – passu sharing basis along Bank of Rajasthan
Limited in the ratio of BOI = 1200.675 |
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Particulars of present modification |
As per annexure - B |
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Name of the
company |
M/s Sharp Ferro Alloys Limited |
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Presented
By |
Mr. Tushar
Rawat, Managing Director |
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1) Date and
description of instrument creating the change |
Term Loan agreement
dated 12.08.2005 to secured term loan outstanding. |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 7.500
millions |
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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 |
All immovable and
tangible movable property such as land, building, plant and machinery etc. At
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4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest on daily basis in term loan account@0.75% OBPLR presently by 11.75% |
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5) Name and
Address and description of the person entitled to the charge. |
The Bank of Rajasthan Limited Address: Karol Bagh, |
FIXED ASSETS:
· Land and site development
· Building
· Plant and machinery
· Electric Installation
· Furniture and fixtures
· Electrical Equipment and fitting
· Vehicles
· Office equipment
·
Computers
· Borewell
· Lab equipment
· Pay Loader
· Pollution Control
· Equipment
·
Weigh bridge
CONTINGENT LIABILITIES NOT PROVIDED FOR:
In respect of guarantees issued by bank,
outstanding as at 31.03.2004 is Rs. Nil, net margin (previous Years): Rs 0.200
million net of margin)
In respect of letter
of credit issued by bank, outstanding as at 31.03.2004, is Rs. Nil, net of
margin (previous year s. 1.740 millions)
In respect of
disputed electricity demand as at 31.03.2004 is Rs. 12.457 millions (previous
year Rs. 12.457 millions)
WEBSITE DETAILS:
Subject is a
professionally managed company in manufacturing and marketing of Ferro Alloys
since 1997. The plant having an ISO 9001:2000
certification is strategically located in the industrial belt of
Though a young
company, they are marching fast towards realizing their vision of a multi
location and multi product company. The company is also in the international
trade of Ferro Alloys and Steel Products and making its presence felt in a
short time.
Core
Values
·
Perpetually improving the quality of their
products and services.
·
Maintaining long term cordial relations with
their customers and suppliers.
·
Enriching the quality of life of their employees
and providing them the opportunities for advancement.
Management
The company was
originally promoted by Monnet Group of Industries and the management was
transferred to the Rawat family in October, 2003. Rawat family has over 3
decades of experience in Ferro Alloys trade.
Mr Tushar Rawat, Managing Director is looking after the affiars of company. He
is a young management graduate with specialization in International Marketing
and Human Resources. He has a lot of enthusiasm and entrepreneurship skills.
Under the leadership and guidance of Rawats, the company has made tremendous
progress. They not only turned it around but have also embarked upon an
ambitious expansion plan of adding new products and capacities for Ferro Alloys
and making foray into manufacturing of steel.
The management is supported by a team of highly qualified and experienced
professionals and committed workers.
DOMESTIC MARKET
Their guiding motto
is to achieve complete customer satisfaction through perpetually improving the
quality of their products and services. With an ISO 9001 : 2000 certification,
their customers are always assured of good quality of their products. To have
easier access and effecting speedier deliveries to customers, they have
established branches and godowns at following places:
·
·
·
·
Mandi
Gobindgarh (
· Sonepat (Haryana)
·
· Viskhapatnam (A.P.)
In addition, they have
Consignment Agents in many other states that efficiently cater to the
requirements of customers. As a result, most of the big Steel Plants both in
Public and Private sectors are on their customers list
EXPORTS:
Their products have
found wide acceptance in the international markets also. Some of the countries
to whom their products have been exported are:
·
·
·
·
·
·
·
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.39.79 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.56.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|