MIRA INFORM REPORT

 

 

Report Date :

26.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SKM STEELS LIMITED

 

 

Registered Office :

30 C. P. Tank Road, 2nd Floor, Mumbai – 400 004, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

01.12.1994

 

 

Com. Reg. No.:

11-83403

 

 

CIN No.:

[Company Identification No.]

U27100MH1994PLC083403

 

 

TAN No.:

(Tax Deduction & Collection Account No.)

MUMS37214C/ MUMS41878E/ MUMS42024D

 

 

PAN No.:

(Permanent Account No.)

AADC57801F/ AADC57801F/ AADC57801F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Trading of all kinds of Ferrous & Non-Ferrous Metals, Alloys and Semis, i.e. all types of steel and its cold rolled, hot rolled & re-rolled products, Iron, Aluminium, Copper, Brass, Zinc, Tin, Lead, Model Metals, Nickel, Chromium in all ID forms shapes & sizes meant for industries and/or non-industrial use whatsoever.

 

 

 

 

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 :

USD 2200000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

30 C. P. Tank Road, 2nd Floor, Mumbai – 400 004, Maharashtra, India

Tel. No.:

91-22-23862884 /22336691/ 56336691

Fax No.:

91-22-23886165 /23805392/ 94

E-Mail :

skm@bom3.vsnl.net.in

pankajshah@skmsteels.com

sales@skmsteels.com

Website :

http://www.skmteels.com

Area :

Rented

 

 

Head Office :

SKM Steels Limited,
12, SKM House,
6th Khetwadi Lane.
Mumbai – 400004.
INDIA

 

 

Branches :

v      3, Mooker Nalla
Muthu Street,
Chennai – 600 001.

 

v      311, Apollo Tower,
2, M.G. Road,
Indore, (Madhya Pradesh)

 

 

v      202, Ashwarath,
Opp. Fortune Landmark,Usmanpura,
Ashram Road,
Ahmedabad – 380 013

 

 

DIRECTORS

 

Name :

Mr. Ramniklal M. Shah

Designation :

Director

Address :

12 Prabhu Niwas, 2nd Floor, 148 V. P. Road, Mumbai – 400 004

 

 

Name :

Mr. Lalitkumar Kantilal Shah

Designation :

Director

Address :

12 Prabhu Niwas, 2nd Floor, 148 V. P. Road, Mumbai – 400 004

 

 

Name :

Mr. Shailesh Ramniklal Shah

Designation :

Director

Address :

12 Prabhu Niwas, 2nd Floor, 148 V. P. Road, Mumbai – 400 004

Date of Birth :

14.07.1963

Date of Appointment :

01.12.1994

 

 

Name :

Mr. Pankaj Dahyalal Shah

Designation :

Director

Address :

Flat No. 605, 6th Floor, Deccan Vikas, Khotachiwadi, V P Road, Mumbai – 400 004, Maharashtra, India 

Date of Birth :

19.02.1973

Date of Appointment :

01.12.1994

 

 

Name :

Mr. Dahyalal Moolchand Shah

Designation :

Director

Address :

14/16 Khetwadi, 7th Lane, K. Pannalal Terrace, 3rd Floor, Flat No. 8, Mumbai – 400 004

 

 

Name :

Mr. Kirtilal Moolchand Shah

Designation :

Chairman and Managing Director

Address :

Flat No. 1001, 10th Floor, Garden View, 8 Walkeshwar,

Mumbai – 400 006, Maharashtra, India

Date of Birth :

01.03.1949

Date of Appointment :

01.12.1994

 

 

Name :

Mr. Danmal U. Shah

Designation :

Director

Address :

Khetwadi, 5th Lane, Ishwar Niwas, B Block, R. No. 11, 2nd Floor, Mumbai – 400 004

 

 

Name :

Mr. Bhogilal Rajmal Shah

Designation :

Director

Address :

B/10, 4th Floor, Ishwar Niwas, Sikka Nagar, V. P. Road, Mumbai – 400 004

Date of Birth :

01.06.1949

Date of Appointment :

01.12.1994

 

 

Name :

Mr. Ramanugrah Ram Bahal Singh

Designation :

Director

Address :

B/ 34, Abhishek Apartment, Block No. 12, Cross Road – 2, Lokhandwala Complex, Andheri, Mumbai – 400 053, Maharashtra, India

Date of Birth :

02.01.1946

Date of Appointment :

27.11.1995

 

 

Name :

Mr. Kalpesh Harilal Chowdhary

Designation :

Director

Address :

327, Makharia House, 1st Floor, S V P Road, Mumbai – 400 004, Maharashtra, India

Date of Birth :

06.11.1971

Date of Appointment :

01.04.2004

 

 

Name :

Mr. Chirag Shantilal Shah

Designation :

Director

Address :

704, Gokul Apartments, 14th Khetwadi Back Road, Mumbai – 400 004, Maharashtra, India

Date of Birth :

19.03.1977

Date of Appointment :

01.07.2000

 

 

Name :

Mr. Amit Kirtilal Shah

Designation :

Director

Address :

Flat No. 1001, 10th Floor, Garden View, Walkeshwar, Nepeansea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth :

03.08.1980

Date of Appointment :

11.06.2001

 

 

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Mr. Kirtilal Moolchand Shah / Mrs. Veenaben Kirtilal Shah 

720000

Mr. Ramniklal Moolchand Shah / Mrs. Vasantiben Ramaniklal Shah

75000

Mr. Bhogilal Rajmal Shah / Mrs. Manjulaben Bhogilal Shah

88500

Mr. Lalitkumar Kantilal Shah / Mrs. Sumitraben Lalitkumar Shah

35000

Mr. Pankaj Dahyalal Shah / Mrs. Dimple Pankaj Shah

50000

Mr. Shailesh Ramniklal Shah / Mrs. Peena Shailesh Shah

70000

Mr. Amit Kirtilal Shah / Mrs. Veenaben Kirtilal Shah

400000

Mr. Dakshesh Dahyalal Shah / Mrs. Vimlaben Dahyalal Shah

70000

Mr. Prakash Ramniklal Shah / Mrs. Kalpana Prakash Shah

70000

Mr. Hemendra Bhogilal Shah / Mrs. Manjulaben Bhogilal Shah

33750

Mr. Jitendra Bhogilal Shah / Mrs. Manjulaben Bhogilal Shah

33750

Mr. Pukhraj Rajmal Shah / Mrs. Kanchanben Pukhraj Shah

58500

Mr. Saremal Rajmal Shah / Mrs. Hiraben Saremal Shah 

44100

Mr. Jayesh Saremal Shah / Mrs. Hiraben Saremal Shah

21900

Mr. Pankaj Dahyalal Shah / Mrs. Dimple Pankaj Shah

125000

Mrs. Hetal Dakshesh Shah

93750

SKM Constructions Private Limited

400000

Fast Track Entertainment Limited 

12000

Kailash Ficom Limited

18000

Rich Gold Finance and Securities Limited 

10000

Infotrek Syscom Limited

52000

Sharpline Mercantile Company Private Limited

400000

Kirtilal Moolchand Shah (HUF)

310000

 

Names of Shareholders

% of Holdings

 

 

Bodies Corporate

42.43

Directors or Relatives of Directors

55.24

Other Top Fifty (50) Shareholders

2.33

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trading of all kinds of Ferrous & Non-Ferrous Metals, Alloys and Semis, i.e. all types of steel and its cold rolled, hot rolled & re-rolled products, Iron, Aluminium, Copper, Brass, Zinc, Tin, Lead, Model Metals, Nickel, Chromium in all ID forms shapes & sizes meant for industries and/or non-industrial use whatsoever.

 

 

Products :

·         Stainless Steel Wire Rods

·         Stainless Steels Wire

·         Stainless Steel Round

·         Stainless Steel Billets/Wire Rod Scrap – 7204

·         Stainless Steel Forgings

·         Valves

·         CR CA Coils/ Sheets – 7209

·         GP Coil Sheet

·         HR Coil Sheet

·         S S Pipe Tubes

·         S S Rods/ Rounds/ Bright Bars – 7221

·         S S Keys

·        Bearings

 
PRODUCTION STATUS

As per 31.03.2005

 

Particulars

Unit

Actual Production

On Job Work Basis:

 

 

Stainless Steel Wire Rods

M. Tonnes

20270.470

Stainless Steels Wire

M. Tonnes

905.807

Stainless Steel Round

M. Tonnes

17.975

Stainless Steel Billets/Wire Rod Scrap

M. Tonnes

628.330

Stainless Steel Forgings

Nos.

9452

Valves

Nos.

300

 

 

GENERAL INFORMATION

 

Customers :

·         SKM Enterprises Private Limited

·         SKM Construction Private Limited

·         SKM Alloys Private Limited

 

 

No. of Employees :

About 150

 

 

Bankers :

Ř       Bank of India.
C.P.Tank Branch, Mumbai, Maharashtra, India.

 

Ř       Union Bank of India, Fort Branch,   Mumbai, Maharashtra, India

 

Ř       Federal Bank Limited, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

 

 

Facilities :

Facilities

As at 31.03.2005

Secured Loans:

 

Credit Facilities from Bank of India-C.P.Tank Branch

 

Cash Credit Facility

118.997

Letters of Credit – DA Imports

--

Letters of Credit – DA Local

10.746

Letters of Credit – DA Buyer credit (Imports)

247.977

Working Capital Demand Loan

73.423

 

 

 

 

Credit Facilities from Bank of India-C.P.Tank Branch

 

Cash Credit Facility

15.265

Letters of Credit – DA Buyer credit (Imports)

150.965

Working Capital Demand Loan

51.029

Export Packing Credit Facility – Rupee Loan

73.897

Export Packing Credit Facility – $ Loan

8.782

Foreign Bill Discounting Facility – Rupee Account

17.399

 

 

Infinity based revolving Line of Credit in the form of overdraft facility from ICICI Bank Limited

377.276

 

 

Car Finance against Hypothecation of Motor Cars:

 

ICICI Bank Limited

2.993

Kotak Mahindra Primus  Limited

0.526

Total

3.519

 

 

Unsecured Loans:

 

Short term Loans and Advances:

 

From Directors

17.050

From Others

4.425

 

 

Other Loans and Advances

 

From Others

0.010

 

 

 

The Company enjoys continued Security, CRS of Rs. 250.000 millions from Federal Bank Limited, dated 20.10.2006.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

R. M. Doshi and Company

Chartered Accountants

Address :

303, Vaishali Apartments, 30/31, Parekh Street, Prarthana Samaj, Mumbai – 400004, Maharashtra, India

E-Mail :

mcdoshi@vsnl.com

 

 

Associates:

Ř       SKM Enterprises Private. Limited.

Line of Business :Dealers & Importers in Stainless Steel Flat Product

 

Ř       SKM Constructions Private. Limited.

Line of Business :Real Estate Development.

 

Ř       SKM Apparels Private. Limited.

Line of Business :Manufacturers & Exporters of Ready made garments.

Website : http://www.skmapparels.com/

 

Ř       SKM Alloys Private. Limited.

Line of Business :Dealers and Stockists of Mild steel, Alloy Steel, Bright Bars

 

Ř       Shree Steel Depot

Line of Business :Dealers & Stockists of Steel Rounds, Hex and other Bars.

 

Ř       Bharat Steel Yard

Line of Business :Dealers & Stockists of Steel wires.

 

Ř       Tubes India

Line of Business :Importers, Dealers and Stockists of Carbon and Alloy Steel, Pipes and Tubes.

 

Ř       SKM Bearings Private. Limited.

Line of Business :Manufacturers of Tapper roller bearings.

 

Ř       Sapna Gems

Manufacture, Import and Export of Diamonds & Precious stones

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5, 000,000

Equity Shares

Rs. 10/- each

Rs. 50.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4,300,000

Equity Shares

Rs. 10/- each

Rs.43.000 millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

43.000

41.000

35.000

2] Reserves & Surplus

503.496

426.187

247.145
NETWORTH

546.496

467.187

282.145

LOAN FUNDS

 

 

 

1] Secured Loans

942.280

1149.276

567.535

2] Unsecured Loans

18.410

21.485

36.810

TOTAL BOROWING

960.690

1170.761

604.345

DEFERRED TAX LIABILITIES

7.510

2.395

0.377

 

 

 

 
TOTAL

1514.696

1640.343

886.867

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

68.048

34.929

11.389

Capital work-in-progress

0.000

0.400

21.121

 

 

 

 

INVESTMENTS

2.950

3.028

2.888

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Inventories

275.517

471.603

241.832

Sundry Debtors

882.655

1165.174

736.614

Cash & Bank Balances

174.176

103.137

63.283

Loans & Advances

330.420

94.767

41.443

Total Current Assets

1662.768

1834.681

1083.172

Less :

 

 

 

Current Liabilities

210.492

228.955

224.002

Provisions

8.578

3.740

7.701

Total Current Liabilities

219.070

232.695

231.703
Net Current Assets

1443.698

1601.986

851.469

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 
TOTAL

1514.696

1640.343

886.867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

5915.444

6154.654

3197.832

Other Income

0.000

0.000

0.000

Total Income

5915.444

6154.654

3197.832
 

 

 

 
Profit/(Loss) Before Tax

35.554

55.591

98.030
Provision for Taxation

0.000

0.000

12.804
Profit/(Loss) After Tax

35.554

55.591

85.226
 

 

 

 
Import Value

NA

1084.556

608.736
 

 

 

 
Export Value

NA

181.084

NA
 

 

 

 
Total Expenditure

5879.890

6099.063

3099.802

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004
PAT / Total Income
(%)

0.60

0.90
2.66
 
 

 

 
 
Net Profit Margin

(PBT/Sales)

(%)

0.60

0.90
3.06
 

 

 

 
 
Return on Total Assets

(PBT/Total Assets}

(%)

2.05

2.97
8.76
 

 

 

 
 
Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.12
0.34
 

 

 

 
 
Debt Equity Ratio

(Total Liability/Networth)

 

3.17

4.01
2.96
 

 

 

 
 
Current Ratio

(Current Asset/Current Liability)

 

7.59

7.88
4.67

 

 

LOCAL AGENCY FURTHER INFORMATION

 

It is in trade terms with:

 

·         Cooltech Cooling Equipments

·         Transformer and Rectifiers (India) Limited

·         Poshs Metal Industries Private Limited

·         Progressive Steel Processors Private Limited

·         Makkadwala Udyog

·         Makkad Steel

·         Alco Steels Private Limited

 

Business Results and Operations:

 

The consumption of steel has increased globally for the second consecutive year in 2003-04. During the year 2003-04, the Company increased sales of manufactured stainless steel wire rod by 9% to 13375 tonnes from 12,306 tonnes over the previous year. Due to the firm trend in steel prices, turnover in value term during the year 2003-04 in respect of manufactured steel increased by 50% to Rs. 1163.600 millions compared to Rs. 773.400 millions of the previous year. Turnover in respect of traded goods during 2003-04 also showed a growth of 78% to Rs. 1891.000 millions against Rs. 1060 millions of the previous year. Revenues from the job work activity also increased by 109% to Rs. 70.800 millions against Rs. 33.900 millions of the last year. As a result of increase in turnover, profits from operations have increased by 4 times to Rs. 38.100 millions compared to Rs. 8.800 millions of last year.

 

Prospects:

 

With increasing demand from China, Eastern Europe, Middle East, South East Asia and South America and strong demand in the local markets, future prospects of the company are very encouraging. The company expect to achieve record performance in respect of turnover and profitability of the company. Performance upto date is very good and it will be the company’s endeavour to improve turnover and profitability.

 

Finance:

 

With the increase in volume of business, requirement for working capital also increased significantly which was financed by internal accruals and borrowings. Secured loans in the form of various types of credit facilities from Banks increased to Rs. 567.500 millions against Rs. 248.700 millions of last year. Unsecured loans also increased by Rs. 25.800 millions during 2003-04 to Rs. 36.800 millions against Rs. 11.000 millions of last year. During the year, investments of Rs. 25.000 millions were made for purchasing fixed assets which included investment of Rs. 20.500 millions in Induction Melting Furnace lying in capital work in progress.

 

Capital Projects:

 

In order to increase the manufacturing facilities of S.S.Wire Rods, 20,000 Kgs Induction Melting Furnace is under installation. Benefits from the said plant will accrue in Financial Year 2004-05 Rs. 20.500 millions were spent upto the year end for the said plant.

 

Its fixed assets of important value include freehold land, factory building, other buildings, plant and machinery, office equipments, vehicles, Furniture and fixtures, Telephone Equipments, Air Conditioners and other assets.

 

AS PER WEBSITE

Shah Kirtilal Moolchand & Co., the flagship Company of SKM Group was established in the year 1970 for dealing in Ferrous and Non-ferrous Metals. The Company was promoted by Shri Kirti Shah who hails from a business family and has an experience of more than 35 years in business.

Over the years, the Group diversified into various business activities and has grown into an organisation of nearly 20 companies engaged in various business activities like Manufacturing, Imports, Exports, Trading etc. in different items.

SKM Group was established in the year 1969 for dealing in Ferrous and Non-ferrous Metals. Over the years, the group has diversified into various business activities and has grown into an organisation of nearly 20 companies engaged in various business activities like Manufacturing Imports, Exports, Trading etc. in diversified interest. It is striving to achieve its corporate philosophy of bringing the world closer through distribution of quality products worldwide.

SKM Group of companies is one of the leading manufacturers of Stainless Steel Products. We have experience of almost 4 decades in their line of products. Having their manufacturing set up in India we have been upgrading ourselves to serve their customers in various fields of applications.

With a board size and product range, we aim to appeal all types of customers from volume users to the small consumers. From commodity products to the more demanding and sophisticated needs, we offer something for everyone. Their aim is to give the customer exactly what they need on every occasion; quite simply the customer always come first.

Product Range

Ř          Stainless Steel Billets

Ř          Stainless Steel Black bars and Wire rods

Ř          Stainless Steel Bright Bars

Ř          Stainless Steel Wire

As a result of continuous improvement with strong emphasis on quality and consumer satisfaction, today the company has achieved ISO 9001 Certificate and has become one of the most reliable sources of quality products in the International market.

Today we are exporting their products to USA, UK, Germany, Italy, Netherland, Brazil, Turkey, Korea, Taiwan, Thailand, Hongkong etc... and aim to explore oue product in different parts of the world.

With customer satifaction as its prime commitment and quality material as its main objective, the dealing in materials, which are essential for the society. It will always be guided by its Corporate philosophy for times to come.

The company's original Philosophy of high quality, short lead times and competitive pricing is as valid today as it was four decades ago.

Products

 

Since 1986, the Company has mainly concentrated on Stainless Steel Products. On lines of this policy, the Company at present is engaged in the following business activities.

lmport of Ferro Alloys, mainly ferro Nickel as raw-material for manufacture of Stainless Steel.

Manufacture and Export of Stainless Steel Products viz.
1) Stainless Steel Billets, Black Bars
2) Stainless Steel Wire rods
3) Stainless Steel Bright Bars
4) Stainless Steel Wire

Name of Company :            SKM Steels Limited

Contact Person                   Mr. Pankaj Shah - Director/CEO

Address                             30, C.P. Tank Road,
Mumbai-400004. INDIA

Phone                                + 91 - 22 - 5633 6691 (6 lines)

Fax                                    + 91 - 22 - 23805392/23886165

E-mail                                pankajshah@skmsteels.com

For Domestic

Address                              30, C.P. Tank Road,
Mumbai-400004. INDIA

Phone                                + 91 - 22 - 5633 6691 (6 lines)

Fax                                    + 91 - 22 - 23805392/23886165

E-mail                                sales@skmsteels.com

 

For Exports

Contact Person                      Mr. Kalpesh Chowdhary

                                             Mr. Girish Chaudhary

Address                                 66, C.P. Tank Road, 3rd Floor,
Mumbai-400004. INDIA

Phone                                   + 91 - 22 - 5657 7071 (3 lines)

Fax                                       + 91 - 22 - 56570103/04

E-mail                                   ssexports@skmsteels.com

 

The SKM Group of Company is pleased to introduce SKM Steels Limited. (CRCA division) as the Authorised Distributor of The Tata Iron & Steel Co. Limited. for CRCA Products. This division was formerly known as Shree Steel Enterprise. The SKM Group, of which SKM Steel is a part, is associated with the House of TATA since 1975.

 

The CRCA division distributes CRCA Coils & Sheets of TATA STEEL in various grades. These are supplied in sizes ranging from 0.30 mm in grades like CQ, DD, DGD, DGE, EDD, SPCC. Supplies are accompanied by Test Certificates.

 

Their existing clientele are primarily original equipment's manufacturers of various automotive & electrical products & drums barrels products who are registered vendors of companies like Mahindra Limited., Maruti Udyog Limited., Bajaj Auto Limited., Tata Engineering & Locomotive Company Limited., Larsen & Toubro Limited., Seimens Limited., Voltas Limited. & HPCL.

 

FORM 8

 

Corporation identity number (CIN) or foreign company registrations number of the company 

U27100MH1994PLC083403

Name of the company

SKM STEELS LIMITED

Address

30 C. P. Tank Road, 2nd Floor, Mumbai – 400 004, Maharashtra, India

This Form is for

Creation of charge

Type of Charges

Book debts, movable property, floating charge

Particular of the charge holder 

Standard Chartered Bank,

90, M G Road, Fort, Mumbai – 400 001, Maharashtra, India

Nature or description of the instrument creating charge  

Unattested memorandum of hypothecation

Date of the instrument creating charge

20.01.2007

Amount Secure by the charge

Rs. 150.000 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of Interest: Limit Type – flexi loan for purchase fo steel products from Tata Steel

Interest: at the rate as negotiated with and agreed by the bank, payable monthly in arrears. The rate of interest is subject to change without prior notice at the discretion of the bank.

 

Terms of repayment: Tenor / Maturity Period : 1 days validity – maximum 90 days

 

Extent and operation of the charge:

Book Debts - all present and future book debts, outstanding moneys receivable, claims and bills which are now due and owing or which may at any time during the continuance of this security become due and owing to the borrower in the course of its business.

Stocks – all present and future stock in trade consisting of raw material, finished goods, goods in process of manufacturing and other merchandise.

Description of the property charge whether it is a charge on

--

Modification charge

Charge identification number of the charge to be modified

--

Date of instrument modifying the charge

20.01.2007

Particulars of the Property charged  

Book Debts - all present and future book debts, outstanding moneys receivable, claims and bills which are now due and owing or which may at any time during the continuance of this security become due and owing to the borrower in the course of its business.

Stocks – all present and future stock in trade consisting of raw material, finished goods, goods in process of manufacturing and other merchandise.

 

 

 

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.39.38

UK Pound

1

Rs.80.96

Euro

1

Rs.56.81

 

 

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

6

--PROFITABILIRY

1~10

6

--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

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

 

 

 

 

 

 

 

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