MIRA INFORM REPORT

 

 

Report Date :

01.09.2007

 

IDENTIFICATION DETAILS

 

Name :

AQUA ALLOYS PRIVATE LIMITED

 

 

Registered Office :

Plot No. 122 / 1 and 2, Shinoli (BK), Taluka Chandgad, District Kolhapur 416 508, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

14.03.1983

 

 

Com. Reg. No.:

29528

 

 

CIN No.:

[Company Identification No.]

U27101MH1983PTC029528

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRA02362D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in Casting of Iron and Steel.

 

 

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 533292

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is 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

 

Registered Office :

Plot No. 122 / 1 and 2, Shinoli (BK), Taluka Chandgad, District Kolhapur 416 508, Maharashtra, India

Tel. No.:

91-2320-236468 / 236549

Fax No.:

91-2320-236325

E-Mail :

aquaalloys@sancharnet.in

 

 

Corporate Office :

Sanmati Building, Plot No. 108, 2nd Main, 6th Cross, Sadashivnagar, Belgaum 591 108, India

Tel. No.:

91-831-2471315

E-Mail :

aqualloy@sancharnet.com

 

 

DIRECTORS

 

Name :

Mr. Narayan C Pillai

Designation :

Managing Director

Address :

Ganesh Nivas, Rs No. 113 / 3, Sulage, Belgaum 591 128, Karnataka, India

Date of Birth/Age :

24.07.1940

Date of Appointment :

14.03.1983

 

 

Name :

Mr. Y Rajabhat Krishnaraj

Designation :

Managing Director

Address :

Kumudini Plot No. 4, Sadashiv Nagar, Belgaum 590 001, Karnataka, India

Date of Birth/Age :

10.01.1944

Date of Appointment :

14.03.1983

 

 

Name :

Mr. Anil Kumar Acharya

Designation :

Director

Address :

Plot No. 103, Mahaba Leshwar Nagar, Belgaum 590 009, Karnataka, India

Date of Birth/Age :

06.01.1943

Date of Appointment :

01.01.1998

 

 

Name :

Mr. S Raghavan Vijaya

Designation :

Director

Address :

Aiswarya, Plot No. 106, Mahableshwar Nagar, Belgaum  590 009, Karnataka, India

Date of Birth/Age :

16.06.1953

Date of Appointment :

01.01.1998

 

 

Name :

Mr. Y Rajabhat Gururaj

Designation :

Director

Address :

Plot No. R8461 / 1, MIDC, Rabale, TTC Industrial Area, Navi Mumbai 400 701, Maharashtra, India

Date of Birth/Age :

21.05.1947

Date of Appointment :

14.03.1983

 

 

Name :

Mr. K Shnamurthy Ramaswamy

Designation :

Director

Address :

45, First Street, Kamraj Avenue, Adyar, Madras 600 020, Tamil Nadu, India

Date of Birth/Age :

27.09.1937

Date of Appointment :

14.08.1993

 

 

Name :

Mr. Vijayaraghavan Venkata Ramani Saliyamangalam

Designation :

Director

Address :

Aishwaryaa Plot No. 106, Mahabaleshwar Nagar, Abhiman Co op, HSG Society, Belgaum 590 009, Karnataka, India

Date of Birth/Age :

10.06.1953

Date of Appointment :

23.11.1993

 

 

Name :

Mr. A A Mahadik

Designation :

Director

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr Pillai C Nayaran

 

110500

Mr Krishnaraj Y

 

152370

Mr Gururaj Y

 

53330

Mr. Vijayaraghavan S V

 

41180

Mr Acharya Anilumar

 

60150

Dr. Pillai Neeta Nair

 

40142

Miss Anjana Balachandran

 

6800

Miss Dipti Balagopal

 

3150

Miss Devi Balagopal

 

3150

Master C A Govind

 

3150

Miss J Gayatri

 

3150

Mr. Cherian George

 

21570

Mrs Krishnaraj Rama

 

36720

Mrs Pillai Rama

 

52290

Mrs. Herwadkar J Alka

 

10000

Mrs. Herwadkar V Sunanda

 

3600

Mr. Herwadkar Jayant

 

4000

Mr. Sureshkumar Y

 

11250

Mrs. Gururaj Savitha

 

12600

Mr. Dr. Balagopal K

 

11000

Mr. Nair M B C

 

1800

Mrs. Acharya Rohini

 

4400

Mrs. Vasantha Gowri

 

19140

Mr. Geroge Elsy

 

12780

Mr. Amrithraj Y

 

86140

Mr. Cinnapur M Siddappa

 

1080

Mr. Gunjkar L A

 

810

Mr. Naik A K

 

1260

 

Equity share breakup (percentage of total equity)

S. No.

Category

Percentage

1

Foreign holdings (foreign institutaional investor(s), foreign companie(s), foreign financial institution(s), non resieent Indian (s) or overseas corportate bodies or Others

7.00

 

Directors or relatives of directors

83.00

 

Others

10.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in Casting of Iron and Steel. 

 

 

Products :

Casting, Remelting

 

 

GENERAL INFORMATION

 

Bankers :

Corporation Bank

1985 / 1A, 1st Floor, Khadi and Gram Udyog Shakari, Utpadakra Sangh Building, Kirloskar Road, Belgaum 590 002, Karnataka, India

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Ravindra Potdar

Chartered Accountants

Address :

Gondali Galli, Belgaum 590 002, Karnataka, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000

Equity shares

Rs. 10/- each

Rs. 20.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1857100

Equity shares

Rs. 10/- each

Rs. 18.571 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

18.571

9.070

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

114.752

92.024

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

133.323

101.094

LOAN FUNDS

 

 

 

1] Secured Loans

 

54.844

19.551

2] Unsecured Loans

 

11.746

9.653

TOTAL BORROWING

 

66.590

29.204

DEFERRED TAX LIABILITIES

 

 

 

 

 

 

 

TOTAL

 

199.913

130.298

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

40.318

43.072

Capital work-in-progress

 

37.444

5.155

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

51.614

31.982

 

Sundry Debtors
 

92.413

62.566

 

Cash & Bank Balances
 

2.360

1.635

 

Other Current Assets
 

10.126

6.237

 

Loans & Advances
 

2.065

1.782

Total Current Assets
 

158.578

104.202

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

32.192

16.026

 

Provisions
 

4.235

6.105

Total Current Liabilities
 

36.427

22.131

Net Current Assets
 

122.151

81.071

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

199.913

130.298

 

PROFIT & LOSS ACCOUNT

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.77

0.50

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

4.35

4.70

 

 

LOCAL AGENCY FURTHER INFORMATION

 

As per website details

 

TECHNOLOGY AT ITS BEST

 

Subject was cast out of the professional acumen and expertise of highly experienced technocrats with over 200 man years of practical knowledge.

 

Situated over five acres of prime land in SHINOLI, a village in southern Maharashtra, INDIA, the Factory is a bare 15 kms from Belgaum in Karnataka State and thus in an excellent position both on account of transportation and communication.

Subject set up with an investment of over Rs. 30 Million commenced production on June 1985. The company specialises in wear, corrosion and heat resistant castings in Iron and Steel. The installed capacity is 3000 Tonnes Per Annum. The wide range of castings from Aqua Alloys cater to the spectrum of industries like Cement, Mining & Metallurgy, Power, Steel, Material Handling, Paper, Chemical and so on. The Company today has the capability to supply castings upto 2500 kgs. piece weight in Steel Range and 5000 kgs. in Iron Range. On the strength of its achievements, the company forges on to reach newer levels of perfection with further broadbasing of its product range.

 

Subject workforce, with more than 150 personnel comprises of highly qualified promoters and proffessional individuals pooling their expertise together into a Team. Fired by a zeal to excel, these are the people who have been tempered in their respective fields through exposure to companies such as L&T and others.

 

The ISO 9001-2000 accredited company has an efficient eight member Quality Assuarance Department lead by a qualified Metallurgist reporting to the Jt.Managing Director. The department ensures the consistency and perfection in Quality with the help of in house testing facilities available. The strictly followed quality control checks are adequate to maintain the desired Quality.

 

The company's conviction on Quality Management can be assessed by the approval given by LLOYD'S Register of Industrial Services, Engineers India Ltd. (EIL), NTPC, IGIS (formerly Bureau Veritas), DCQA, FEDO and others. The Company has been approved as a Research and Development Centre by Department of Science and Technology, Government of India.

 

Their commitment to Quality and Performance at all stages make subject the prefferred supplier with host of leading blue-chip companies. Castings from their Foundry find a place in various new projects as the company is supplier to OEMs such as Larsen & Toubro Ltd., Fuller India, Thyssenkrupp Industries Ltd. Their clientele includes major industries like Larsen & Toubro Cement Works, Sociede-De-Fomento Industries, Hindustan Dorr-Oliver, ACC, Gujarat Ambuja, Neyveli Lignites, Grasim Cements, Madras Cements Ltd., Indal, Zuari Cements, Kudremukh Iron Ore Company, GHCL, Raymond Cement-Companies, that lay an unfillnching premium on Quality, as do THEY.

 

 

GROUP COMPANIES

 

The Auqalloys unit is financed by SICOM, IDBI & MSFC and is promoted by Techno-crats. The group comprises of two other industrial oriented business lines.

 

SHALIMAR VALVES PRIVATE LIMITED

An ISO 9001 accredited unit, manufacturing Industrial Valves in Steel, Alloy Steel, Stainless Steel and Special Alloys under the umbrella of "VALCHEM" brand of valves.

 

MEGA ENGINEERS


Manufacturing Alloy and Stainless Steel Fasteners to ASTM standards.

 

 

FORM 8

Name of the company

AQUA ALLOYS PRIVATE LIMITED

Presented By

MR. Y KRISHNARAJ, JOINT MANAGING DIRECTOR

1) Date and description of instrument creating the change

Agreement of hypothecation of goods to secure and demand cash credit executed on 29th April, 1985

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

Rs. 1.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Stock of raw materials, semi finished and finished goods like ferrous scrap, non ferrous scrap, ferrous alloys, moulding sand, binders etc. casting finished and semi finished and all such other goods including consumables spares used in the process of produsctin stores kept lying in the factory premises at Plot No. 122 /1 and 2 shinoli (BK), Taluka Chandgad, District Kolhapur and at such places at may be duty notified to the Bank from time to time.

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

a) Supplemental deed of thypothecation of goods as mentioned in item 3 above to secure cash credit limit of Rs. 1.500 millions

b) Interest @7.5% over the Bank rater subject to a minimum of 17.255 p. a. and margin of 25% on the hypothecated goods.

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

Corporation Bank

1985 / 1A, 1st Floor, Khadi and Gram Udyog Shakari, Utpadakra Sangh Building, Kirloskar Road, Belgaum 590 002, Karnataka, India

6) Date  and brief description of instrument modifying the charge

17.09.2004

a) Common Deed of hypotheacation of movables /Assets / Debt

b) Continuity Letter

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.

The original charge dated 29.04.1985 for Rs. 1.500 millions has been modified from time to time as under

a)       On 23.01.1989 the limit has been enhanced from Rs. 1.500 millions to Rs. 1.800 millions

b)       On 17.05.1990 the limit has been further enhanced from Rs. 1.800 millions to Rs. 2.310 millions

c)       On 05.08.1991 the limit has been further increased from Rs. 2.10 millions to Rs. 6.010 millions

d)       On 25.09.1991 additional security was given by the company by creation of 2nd charge in favour of Corporation Bank for Rs. 6.010 millions

e)       On 27.09.1991 the limit has been further enhanced from Rs. 6.010 millions to Rs. 11.010 millions

f)         On 15.07.1993 the limit has been further enhanced from Rs. 11.010 to Rs. 13.000 millions

g)       On 11.10.1994 the limit has been further enhanced from Rs. 13.000 millions to Rs. 16.500 millions

h)       On 10.05.1995 additional security of fixed assets was given by the company for creation of second charge in favor of the bank for Rs. 16.500 millions

i)         On 12.06.1995, the limit has been enhanced from rs. 16.500 millions to Rs. 22.000 millions

j)         On 13.03.2003, the limit has been further enhanced from Rs. 22.000 millions to Rs. 26.000 millions against hypothecation of goods as stated in column No. 3 above rate of interest 1 % above PLR i. e. 12.50% p. a. at present subject to revision from time to time.

 

The aforementioned charge further secured by deposit of title deeds in respect of the following immovable properties as security

All the piece of non agricultural land situate within village and Grampanchayat of Shinoli BK Taluka Chandgad, District Kolhapur Bearing Following survey No.

Sy. No.

Hissa

Area Hector

Ara

122

1

1

29

122

2

0

90

Total

 

2

09

i.e. 20900 square menters together with building and structure standing between theron or to be hereafter erected thereon and fixed plant and machinery attached to earth or to any thing attached to earth

k) In terms of the present Deed the Bank has enhanced the working capital limits and the new enhanced limits are as under

Cash credit hypothecation

Rs. 18.000 millions (Enhancement from Rs. 6.000 millions)

BE cum LRDS cum DBC/ BDD Cum SBD

Rs. 22.000 millions (Enhancement from Rs. 7.000 millions)

Bank Guarantee Limit

Rs. 10.000j millions (Enhancement from Rs. 7.000 millions)

Inland / Import LC (DP) limit of

Rs. 6.000

 

Making a total limit of Rs. 56.000. secured by (a) hypothecation of stock in trade consisting of raw material, work in progress, finished products (b) fixed assets and (c) Book debts. Through the continuity letter, the company has confirmed that the security documents that the Bank is already holding stand as a security for the repayment of all the monies or any money that is already due and may become due hereafter on account of whatsoever business transaction between the Bank and the company. Rate of interest COBAR i. e. 10.50% p. a. at present, subject to revision from time to time.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.40.96

UK Pound

1

Rs.82.55

Euro

1

Rs.55.96

 

 

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.

 

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