MIRA
INFORM REPORT
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Report Date : |
31.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DHANDAPANI STEEL PRIVATE LIMITED |
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Registered Office : |
106-B, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.02.1991 |
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Com. Reg. No.: |
181-006240 |
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CIN No.: [Company
Identification No.] |
U27101TN1991PTC020279 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBD03480B |
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PAN No.: [Permanent
Account No.] |
AAACD9440N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Steel and Alloy 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 127880 |
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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. Available information indicates satisfactory track records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
reported as 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 / Head Office and Foundry : |
106-B, |
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Tel. No.: |
91-4294-220230 / 220539 |
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Mobile No: |
91-98427 21023 / 22323 |
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Fax No.: |
91-4292-220769 |
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E-Mail : |
DIRECTORS
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Name : |
M/s. Sarawathi Vadiappan |
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Designation : |
Whole Time - Director |
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Address : |
L-4, SIDCO Government Industrial Estate, |
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Date of Birth/Age : |
17.05.1964 |
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Date of Appointment : |
29.03.2003 |
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Name : |
Mr. Murugan Senthil Vadiappan |
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Designation : |
Whole time Diretor |
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Address : |
161, Perier Nagar 15 Erode –
638 001, Tamil Nadu |
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Date of Birth/Age : |
20.04.2006 |
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Date of Appointment : |
29.03.2003 |
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Name : |
Mr. Balakrishnan Olivannan |
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Designation : |
Director |
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Address : |
Old No.9 /5, New No. 45, |
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Date of Birth/Age : |
30.07.1962 |
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Date of Appointment : |
19..4.2004 |
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Name : |
Mr. V Velumani |
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Designation : |
Whole Time Director |
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Name : |
Mr. V Saravanan |
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Designation : |
Whole Time Director |
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Name: |
Mr. B Olivannan |
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Designation: |
Whole Time Director |
KEY EXECUTIVES
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Name : |
Mr. R Venkateswaran |
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Designation : |
Company secretary |
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Address: |
Upstairs, Sri Hari Complex, Adjacent to Kalpana Kalyana Mandapam, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ms. V Saraswathi |
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12 |
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Mr. R k Rasappan |
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5 |
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Mr. V Velumani |
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1605 |
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Mr. V Saravanan |
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1605 |
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Mr. V Senthil Murugan |
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1605 |
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Mr. B Olivannan |
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5 |
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Total |
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4837 |
Equity Share Break – up ( Percentage of Total Equity )
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Sr.
No. |
Category |
Percentage |
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1 |
Directors or relatives of directors |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Steel and Alloy Steel Products. |
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Products : |
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GENERAL INFORMATION
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Customers: |
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Bankers: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
T S Rajarajeswaran and Company Chartered Accountants |
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Address : |
101-A, Mahavishnu East, Angeripalayam East, Tirupur-641 603, Tamil Nadu |
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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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6600 |
Equity Shares |
Rs.1000/- each |
Rs.6.600 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4837 |
Equity Shares |
Rs. 1000/-
each |
Rs.4.837
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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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4.837 |
4.837 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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27.133 |
20.893 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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31.970 |
25.730 |
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LOAN FUNDS |
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1] Secured Loans |
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47.782 |
11.762 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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47.782 |
11.762 |
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DEFERRED TAX LIABILITIES |
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10.588 |
7.803 |
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TOTAL |
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90.340 |
45.295 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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69.879 |
34.092 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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6.147 |
7.321 |
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Sundry Debtors |
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4.163 |
2.002 |
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Cash & Bank Balances |
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7.235 |
0.847 |
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Other Current Assets |
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6.767 |
3.863 |
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Loans & Advances |
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0.000 |
0.000 |
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Total
Current Assets |
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24.312 |
14.033 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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3.799 |
2.830 |
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Provisions |
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0.052 |
0.000 |
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Total
Current Liabilities |
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3.851 |
2.830 |
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Net Current Assets |
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20.461 |
11.203 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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90.340 |
45.295 |
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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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85.018 |
NA |
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Other Income |
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0.000 |
NA |
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Total Income |
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85.018 |
NA |
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Profit/(Loss) Before Tax |
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9.641 |
NA |
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Provision for Taxation |
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3.401 |
NA |
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Profit/(Loss) After Tax |
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6.240 |
NA |
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FOB Value ( in AUS$) |
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916.687 |
101.210 |
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Total Expenditure |
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75.377 |
0.000 |
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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7.33 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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11.33 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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20.03 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.30 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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1.61 |
0.56 |
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Current Ratio (Current Asset/Current Liability) |
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6.31 |
1.25 |
LOCAL AGENCY FURTHER INFORMATION
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Corporation identity number or foreign company registrations number of
the company |
U02710TZ1995PTC006240 |
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Name of the company |
DHANDAPANI STEEL PRIVATE LIMITED |
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Address |
106-B, |
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This Form is for |
Modification of charge |
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Type of Charges |
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Particular of the charge holder
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Canara
Bank, SME Branch, Perundurai - 638052, Tamil Nadu Email ID : cbr2460@canbank.co.in |
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Nature or description of the instrument creating charge |
Common Hypothecation Agreement
Supplemental Deed of Hypothecation Re; machinery Agreement Re; Collateral Security Letter of Undertaking Re; Loans and
Advances |
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Date of the instrument creating charge |
23.03.2007 |
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Amount Secure by the charge |
Rs.55.233 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of Interest: OCC; 11.25% Term Loan - Tufs; BPLR -1.25% to 11.25% Term Loan IV; BPLR – 1.25% to 11.25% Term
of Repayment Term Loan – Tufs: 60 Monthly Installments
– Rs. 0.096 millions*5.900 millions and Rs.0.069 millions Lakhs*1 Term Loan IV – 60 Monthly Instalments of
Rs. 0.150 millons. Margins: OCC: 25% Term Loan – Tufs : 30% of the Project Cost Term Loan IV – 75.47% of the Project Cost Extent
and Operation of the Charge OCC: Hypothecation of Current Assets Term Loan-Tufs: Hypothecation of Machineries
3Nos Term LKoan IV – Hypothecation OFI No.
VESTA 750KW Wind Energy Converters and EMT of Land 1.5 Acres in SF No. 184 in
Kodikurichi to be registered Others: Existing Securities are Continuing |
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Short Particulars of the Property Charged ( Including location of the
Property) |
Hypothecation of current assets,
hypothecation of machineries vertical machine, Stabilizers and air
compressure Hypothecation OFI No. VESTA 750KW Wind
Energy Converters and EMT of Land 1.5 Acres in SF No. 184 in Kodikurichi to be
registered |
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Particulars of the Present Modification |
Total Limits Enhanced to Rs. 55.233
millions as detailed below:
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Name of the
company |
DHANDAPANI STEEL PRIVATE LIMITED |
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Presented
By |
M/s. Dhandapani
Steel Private Limited and Canara Bank, SSI Branch, Perundurai |
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1) Date and
description of instrument creating the change |
Deed of
Hypothecation dated on 10.09.2004 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Term Loan Rs.
1.400 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 |
Hypothecation of
Plant and Machinery, Tools and accessories already purchased and to be
purchased |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest will be charged for rate of 10.75%
per annum above the on going PLR with a minimum of 14.75% per annum
compounded quarterly |
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5) Name and
Address and description of the person entitled to the charge. |
M/s. Canara Bank, SSI Branch, Perundurai |
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6) Date and brief description of instrument
modifying the charge |
a)
Deeds
of Hypothecation dated on 30.08.2005 b)
Supplemental
Agreement dated 30.08.2005 c)
Sanction
letter dated 30.08.2005 |
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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. |
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WEBSITE DETAILS:
The Company was founded by Mr.Vadiappan the then Managing Director, in June 1992. He was a well known and highly successful industrialist, who gave an impetus to industrial growth in the under developed area of Perundurai in the state of TamilNadu.
The foundry project started off initially with an investment of Rs.25.000 millions with financial assistance from TamilNadu Industrial Investment Corporation (TIIC) and Canara Bank. Today DSPL has grown in stature and is an important producer of superior quality steel and alloy castings for various engineering and process industries. DSPL with a well equipped plant manufactures to international standards. The quality steel and alloy steel castings have found place in oil field equipments, cement industries, valve and pump manufacturers and heavy and construction engineering industries.
The Company started with the dynamic zeal of founder Mr.C.Vadiappan, has today made a place internationally for
its high quality steel and alloy castings. Their foundry has been able to
achieve high productivity and quality by the dedication of the highly skilled
workforce, supported by a well trained engineering team. Their team inducts and
upgrades periodically the state-of-the-art technology that makes Dhandapani Steel Private Limited. capable of producing world-class products
for earth moving and heavy engineering industries.
The Company has
evolved the best solution to supply quality castings, both economical and
highly durable. They use Green power generated through its wind power project
and to produce its products. They have an objective to surpass the requirements
of a world market and became a proud pioneer in the field. Standing the test of
time they wish to do
EXPORTS
The company's
products are now being exported directly to a large number of clients both in
A Strictly
scheduled production process and quality control checks ensure reliable
production throughout the year. Sufficient captive power generation ensures
uninterrupted production thus timely delivery is ensured.
VISION
The company
foresees to keep pace with technology, upgrade to improve productivity and
maintain quality consistently. Dynamic to survive a demanding and competitive
global market, the company should also innovate and react to market feedback
and sensitive to the customer requirements. The manpower should also be
motivated and enterprising, upholding the objectives and ethics of the
organisation.
Mr. Velumani, Director – Planning
“Day to day operations of the company are the
fort of the personnel in the organisation. Hence they maintain a highly skilled
workforce and experienced management team. Their skill and dedication has
yielded in consistent quality.”
Mr. Saravanan, Director - Finance
“In an increasing changing industrial
scenario, the technologies and demands of markets also undergo change.
Marketing involves not only supplying requirements but also foreseeing the
trends of future.”
Mr. Senthil Director – Operations
“The foundry is a basic industry that can
absorb the technological and economic aspects over time. The keyword is
quality. The way to succeed is to upgrade, innovate and increase productivity.”
PRODUCTS
Subject has become
a reputed supplier of quality steel and alloy castings, an expert in Manganese
steel castings for Quarry mining applications and cement plants and alloy steel
castings for earth moving and mining machinery. Special quality Blow Bars for
Impact Crushers is produced for discerning customers. Cones and Mantles for
Cone Crushers are also manufactured to the exacting specifications of
customers. Alloy steel castings of Feeder Pans of extra length and strength are
also manufactured.
Apron Feeder Pans and
Concave Crushers are supplied to
QUALITY CONTROL
At Dhandapani
steel, quality is built into the production process. All materials, incoming,
in the process as well as outgoing products are tested and confirmed to concern
standards and specifications at every stages. Full fledged chemical,
metallurgical, sand and mechanical testing laboratories are available in the
plant.
Inspections certified
out at various stages in the foundry and the equipments are regularly
calibrated by suitable authorities. NDT facilities, as and when called for, are
available from reliable and approved external agencies and are sub-contracted.
Precise quality
control is maintained at every level of production. This important division of
the company is equipped with chemical (spectrograph) metallurgical, mechanical
and sand testing laboratories with dimensional marking and control facilities.
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.40.96 |
|
|
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 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 |
|