MIRA
INFORM REPORT
|
Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
NORTHERN ALLOYS BHAVNAGAR LIMITED |
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Registered Office : |
Plot No. 97 / 98, GIDC, Chitra, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.09.1980 |
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Com. Reg. No.: |
3958 |
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CIN No.: [Company
Identification No.] |
U27310GJ1980PLC003958 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMN02421G |
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PAN No.: [Permanent
Account No.] |
AABCN1538J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Supplier of a full range of high technology steel and special alloy steel castings for service in wear resistant and high temperature environments. |
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 145552 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experience and respectable businessmen.
Trade relations re 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 : |
Plot No. 97 / 98, GIDC, Chitra, |
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Tel. No.: |
91-278-2446451 / 2445444 |
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Fax No.: |
91-278-2446019 |
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E-Mail : |
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Marketing Office : |
A -87/88, Pariseema, Near Swagat, |
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Tel. No.: |
91-79-26404657 |
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Fax No.: |
91-79-26424698 |
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E-Mail : |
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Branches : |
Ř
Leh Ř
Shimla Ř
Ř
Ř
Jaipur Ř
Khajuraho Ř
Ahmedabad Ř
Ř
Ř
Mumbai Ř
Ř
Ř
Chennai Ř
Ř
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DIRECTORS
|
Name : |
Mr Rohit Kumar Bhatia |
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Designation : |
Managing Director |
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Address : |
502, Shanti Shilp Sanskar Mandal, |
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Date of Birth/Age : |
02.01.1957 |
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Qualification : |
B A |
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Date of Appointment : |
26.10.1980 |
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Name : |
Mrs. Alka Rohit Bhatia |
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Designation : |
Director |
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Address : |
502, Shanti Shilp Sanskar Mandal, |
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Date of Birth/Age : |
15.01.1963 |
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Date of Appointment : |
01.04.1998 |
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Name : |
Mr. Kishan Kumar Chopra |
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Designation : |
Director |
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Address : |
Hotel Youvraj Bhavan, Doranga, |
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Date of Birth/Age : |
21.05.1930 |
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Date of Appointment : |
06.03.1998 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Rohit Kumar Batia |
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328700 |
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Mrs. Alka Rohit Bhatia |
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206300 |
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Mr. Kantilal Chetan Vora |
|
1000 |
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Mr. Sudhir Kumar Chopra |
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1000 |
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Mr. Sanjay Kumar Chopra |
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1000 |
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Mr. Kishan Kumar Chopra |
|
1000 |
Equity share breakup (percentage of total equity)
|
S. No. |
Category |
Percentage |
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1 |
Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Supplier of a full range of high technology steel and
special alloy steel castings for service in wear resistant and high
temperature environments. |
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Products : |
Ř
Cement Plant Ř
Mineral Mining and Crushing Ř
Chemical / Fertilizer Ř
Thermal Power Plant Ř
Road Infrastructure Ř
Earth Moving Ř
Others Products |
PRODUCTION STATUS
The company’s production casting was
at1733.260 MT as against production of 1310.087 during the previous year.
GENERAL INFORMATION
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Customers : |
Cement &
Allied Ř
Cimmco Birla Ř
Deccan Cement Limited Ř
Grasim Cement Ř
Gujarat Ambuja Cement Limited Ř
Krupp Industreis Limited Ř
Lakshmi Cement Limited Ř
Madras Cement Limited Ř
Mangalam Cement Limited Ř
Priyadarshini Cement Ř
Shree Cement Limited Ř
Stotz - Blacksmiths Limited Ř
The India Cement Limited Ř
Ultra Tech Cement Steel Plant Ř
Mukund Limited Ř
Sesa Industries Limited Ř
Steel Authority of India Limited Ř
Tata Iron and Steel Company Limited Ř
Chemicals Ř
Atul Industries Ř
Global Consultant Ř
Gujarat Narmada Valley Fertilisers Limited (GNFC) Ř
Gujarat State Fertilisers Corporation (GSFC) Ř
Ř
National Fertilisers Limited Ř
Nicco Corporation Limited Ř
Poseidon Engineering Limited Ř
S.S. Engineering Ř
Shree Ram Projects & Eng. Sevices Limited Mineral Mining Ř
Dempo Mining Ř
Hindustan Copper Limited Ř
O&K Ř
Sesa Goa Limited Ř
Sterlite Industries Ř
Svedala Ř
V.M.Salgaocars Power Ř
Andhra Pradesh Power Generation Corpn.
Limited Ř
Ř
Damodar Valley Corporation Limited Ř
Hariyana Power Generation Corporation (HPGC)_ Ř
Renusagar Power Corporation Limited (HINDALCO) Ř
Mahindra & Mahindra Ř
National Aluminium Company Limited (NALCO) Ř
National Thermal Power Corporation (NTPC) Ř
Neyvelli Lignite Corporation Limited Ř
Tata Power Ř
Tenughat Vidyut Nigam Limited Ř
Torrent Power Limited O.E.M. Ř
Enexco Technologies India Limited Ř
Flsmidth Minerals India Limited Ř
Flsmidth India Limited Ř
GEBR.PFEIFFER ( Ř
KHD - Humboldt Wedag India Private Limited Ř
Larsen & Toubro - Mumbai Ř
Man Takrak India Private Limited Ř
Marsman India Limited Ř
Monstanto -DMCC Ř
Movers India Limited Ř
Nicco Corporation Limited Ř
Poseidon Engineering Limited Ř
Sesa Industries Limited Ř
S.S. Engineering Ř
Shree Ram Projects & Eng. Services Limited Ř
Terex Vectra Eqp. Private Limited Ř
Voltas Limited Export Clients Ř
All Metal Industries LLC Ř
Daya Construction Private Limited Ř
Foster Wheeler Ř
National Cement Company (PPC) - UAE Ř
Ř
Promac (Nihon Limited) Ř
Thai Rayon Public Company Limited Ř
Thani Group - Road &
Infrastructure Ř
AFCONS, Mumbai Ř
GMR Industries Ř
L&T ECC Division |
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Bankers : |
UCO Bank Darbargadh
Branch, |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Mr. Rajesh Anantray Sheth Chartered Accountants |
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Address : |
R A Sheth Company, 114, Kaveri Corporation, Navapara, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
539000 |
Equity shares |
Rs. 10/-
each |
Rs. 5.390
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
5.390 |
5.390 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
30.998 |
28.993 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
36.388 |
34.383 |
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LOAN FUNDS |
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1] Secured Loans |
|
46.607 |
15.244 |
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2] Unsecured Loans |
|
4.889 |
8.426 |
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TOTAL BORROWING |
|
51.496 |
23.670 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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87.884 |
58.053 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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40.971 |
28.484 |
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Capital work-in-progress |
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0.000 |
0.000
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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26.952 |
20.646 |
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Sundry Debtors |
|
23.665 |
15.413 |
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Cash & Bank Balances |
|
6.416 |
1.841 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
17.537 |
11.534 |
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Total
Current Assets |
|
74.570 |
49.434 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
27.657 |
19.865 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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27.657 |
19.865 |
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Net Current Assets |
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46.913 |
29.569 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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87.884 |
58.053 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
167.658 |
112.847 |
72.900 |
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Other Income |
0.137 |
0.406 |
0.014 |
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Total Income |
167.795 |
113.253 |
72.914 |
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Profit/(Loss) Before Tax |
3.370 |
2.165 |
1.660 |
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Provision for Taxation |
0.825 |
0.160 |
0.150 |
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Profit/(Loss) After Tax |
2.545 |
2.005 |
1.510 |
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Expenditures : |
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Raw Materials |
113.313 |
68.245 |
41.751 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spare parts |
0.000 |
0.000 |
0.000 |
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Increase or decrease in finished goods, work
in progress |
0.000 |
0.000 |
0.000 |
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Salaries and wages and bonus |
5.997 |
5.701 |
3.781 |
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Managerial remuneration |
0.480 |
0.480 |
0.480 |
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Payment to auditor |
0.050 |
0.049 |
0.053 |
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Interest |
7.878 |
5.857 |
3.582 |
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Insurance expenses |
0.077 |
0.087 |
0.032 |
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Power and Fuel Cost |
11.780 |
11.711 |
9.575 |
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Depreciation |
2.406 |
1.656 |
0.000 |
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Other expenditure |
22.444 |
17.300 |
12.000 |
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Total Expenditure |
164.424 |
111.087 |
71.254 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.51
|
1.77 |
2.07 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.01
|
1.91 |
2.27 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
1.87 |
2.13 |
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Return on Investment (ROI) (PBT/Networth) |
|
NA
|
0.05 |
0.04 |
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Debt Equity Ratio (Total Liability/Networth) |
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NA
|
2.17 |
1.26 |
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Current Ratio (Current Asset/Current Liability) |
|
NA
|
2.69 |
2.48 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporation identity number or foreign company registrations number of the company |
U27310GJ1980PLC003958 |
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Name of the company |
NORTHERN ALLOYS BHAVNAGAR LIMITED |
|
Address |
Plot No. 97 / 98, GIDC, Chitra, |
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This Form is for |
Modification of charge |
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Type of Charges |
Equitable mortgage or mortgage of property by depositing the title deeds. |
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Particular of the charge holder |
UCO Bank Darbargadh
Branch, |
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Amount Secure by the charge |
Rs. 51.945 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Existing limit of Rs. 54.788 millions now realigned and restricted to Rs. 51.945 millions which included fund based limit of Rs. 41.945 millions and Non fund based limit Rs. 10.000 millions also the margin on book debt has been reduced from 15% to 305 and now there is full interchangeability of C C against book debt and stock |
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Modification charge Charge identification number of the charge to be modified |
80008084 |
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Date of instrument modifying the charge |
29.07.2006 |
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Particulars of the Property charged |
Plot No.
I-4, 98-99/PB and 97-98 P A of revenue survey 101-P Chitra, GIDC, |
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Description of the instrument modifying the charge under section 135 |
Supplemental deed of hypothecation of goods, book debts and plant and machinery Date: 29.07.2006 |
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Particulars of the present modification |
The existing facility of Rs. 54.758 millions realigned to Rs. 51.945 millions |
As per website
details:
Subject is a renowned supplier of a full range of high technology steel and special alloy steel castings for service in wear resistant and high temperature environments.
For the very best product at cost competitive prices, subject has noted the
following three factors:
(A) Production
(B) Quality
(C) Design & Supply
With over 35 years of experience in the production of cast engineered products, casting quality is guaranteed.
The emphasis placed on the metallurgical component design and supply can be
gauged from the history of research and innovation at NABL which has brought
their position today among the leading Steel foundries in
The modern foundry complex at subject was designed and built in 1980's by their
own engineers to use modern production techniques in a new way which has the
effect of allowing a large range of sizes and production quantities to be
produced all too high tolerances and all in the very best hard iron alloy. For
example castings ranging from one kg to 3.8 tones have been produced in fully
machined condition for Department of Atomic Power Station, Critical impellers
for under Sea Water applications approval under DGQCA.
Performance
The company’s sales for the year under review has decreased by ten time
over previous year to Rs. 112.846 millions the other income for the year under
review is Rs. 0.416 million compared to Rs. 0.014 million in the previous year
Marketing
The company’s strategic marketing plan is being drawn up, based on an
extensive study of the industry scenario, company’s strength and weaknesses and
the preferences of the customers. etc. This initiative is expected to fuel a rapid
growth of the company’s business during the next five years particularly in the
replacement segment through brand building and rationalisation of the
distribution network of the company, apart from other strategic initiatives.
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.40.94 |
|
|
1 |
Rs.82.26 |
|
Euro |
1 |
Rs.55.59 |
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 |
NO |
|
--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 |
|