MIRA
INFORM REPORT
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Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SRI NATH JI ISPAT LIMITED |
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Registered Office : |
193, Madhuban Preet Vihar, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.08.1988 |
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Com. Reg. No.: |
55-32952 |
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CIN No.: [Company
Identification No.] |
U74899DL1988PLC032952 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS03273E |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of alloy steel castings |
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 120000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
193, Madhuban Preet Vihar, |
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Tel. No.: |
91-120-2840681 |
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Fax No.: |
91-120-2840782 |
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E-Mail : |
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Website : |
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Factory 1 : |
A-5, South Site of |
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Tel. No.: |
91-120-2840681 / 2840323-324 |
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Fax No.: |
91-120-2840782 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Ramdas Gupta |
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Designation : |
Director |
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Address : |
KA 101, Kavi Nagar, |
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Date of Birth/Age : |
01.02.1948 |
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Date of Appointment : |
26.08.1988 |
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Name : |
Mr. Jagdish P Agarwalla |
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Designation : |
Director |
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Address : |
P O Chirkunda, Dhanbad, Jharkhand |
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Date of Birth/Age : |
10.04.1947 |
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Date of Appointment : |
12.10.1988 |
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Name : |
Mr. Gaurav Gupta |
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Designation : |
Director |
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Address : |
KA 101, Kavi Nagar, |
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Date of Birth/Age : |
10.03.1975 |
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Date of Appointment : |
01.01.1998 |
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Name : |
Mr. Amit Agarwalla |
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Designation : |
Director |
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Address : |
P O Chirkunda, Dhanbad, Jharkhand |
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Date of Birth/Age : |
27.08.1971 |
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Date of Appointment : |
01.11.2001 |
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Date of Ceasing : |
05.02.2005 |
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Name : |
Mr. Madhur Agarwalla |
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Designation : |
Director |
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Address : |
2C Mangalam, |
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Date of Birth/Age : |
11.01.1982 |
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Date of Appointment : |
05.02.2005 |
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Name : |
Mr. Saurabh Gupta |
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Designation : |
Director |
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Address : |
KA 101, Kavi Nagar, |
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Date of Birth/Age : |
17.04.1978 |
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Date of Appointment : |
01.06.2005 |
KEY EXECUTIVES
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Name : |
D. K. Agarwal and Associates |
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Designation : |
Company Secretary |
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Address : |
824, Vikas Deep, Laxmi Nagar District Centre, |
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Tel No.: |
91-11-52448401 / 02 |
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Email : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ram Das Gupta |
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25110 |
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Raghunath Prasad Binod Kumar – HUF |
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42500 |
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Jagdish Prasad Aggarwala |
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82500 |
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Aditya Aggarwala |
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22600 |
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Sunita Aggarwala |
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28400 |
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R. D. Gupta [HUF] |
|
59900 |
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Nidhi Aggarwala |
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62500 |
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Goenka Business and Finance Limited |
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141200 |
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Abha Property Project Limited |
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56500 |
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Shyam Aulomobiles Limited |
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200000 |
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Pradeep Sons Private Limited |
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250000 |
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Suma Finance and Investment Limited |
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115000 |
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Expert Power Control India Limited |
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150000 |
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Mool Chand |
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20200 |
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Equity Share Breakup
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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36.93 |
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Other top fifty shareholders |
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63.07 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of alloy steel castings |
GENERAL INFORMATION
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Suppliers : |
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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 : |
M Lal and Company Chartered Accountants |
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Address : |
III-A-49, Nehru Nagar, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,798,283 |
Equity Shares |
Rs. 10/- each |
Rs. 17.983
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
17.983 |
17.983 |
9.333 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
13.681 |
7.428 |
4.257 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
31.664 |
25.411 |
13.590 |
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LOAN FUNDS |
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1] Secured Loans |
8.279 |
3.626 |
4.750 |
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2] Unsecured Loans |
0.000 |
0.000 |
5.150 |
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TOTAL BORROWING |
8.279 |
3.626 |
9.900 |
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DEFERRED TAX LIABILITIES |
0.642 |
0.548 |
0.558 |
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TOTAL |
40.585 |
29.585 |
24.048 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
21.123 |
15.572 |
10.840 |
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Capital work-in-progress |
0.000 |
0.000 |
2.749 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
14.424
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13.425 |
9.102 |
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Sundry Debtors |
30.119
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26.014 |
17.783 |
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Cash & Bank Balances |
1.381
|
0.526 |
0.127 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
11.763
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7.454 |
3.098 |
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Total
Current Assets |
57.687
|
47.419 |
30.110 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
37.852
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33.406 |
19.651 |
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Provisions |
0.373
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0.000 |
0.000 |
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Total
Current Liabilities |
38.225
|
33.406 |
19.651 |
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Net Current Assets |
19.462
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14.013 |
10.459 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
40.585 |
29.586 |
24.048 |
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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 |
211.045 |
182.154 |
82.869 |
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Other Income |
0.012 |
0.049 |
6.629 |
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Total Income |
211.057 |
182.203 |
89.498 |
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Profit/(Loss) Before Tax |
9.413 |
5.039 |
[0.788] |
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Provision for Taxation |
3.144 |
1.889 |
0.988 |
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Profit/(Loss) After Tax |
6.269 |
3.150 |
[1.776] |
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Expenditures : |
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Raw Material Consumed |
71.527 |
77.863 |
0.000 |
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Consumption of stores and spares parts |
23.029 |
18.806 |
0.000 |
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Increase/(Decrease) in Finished Goods |
2.340 |
[4.609] |
0.000 |
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Salaries, Wages, Bonus, etc. |
2.841 |
2.153 |
1.508 |
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Managerial Remuneration |
1.400 |
0.455 |
0.240 |
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Payment to Auditors |
0.040 |
0.025 |
0.000 |
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Interest |
0.502 |
0.335 |
0.348 |
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Insurance Expenses |
1.791 |
1.735 |
0.000 |
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Power & Fuel |
27.493 |
28.830 |
0.000 |
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Depreciation & Amortization |
3.626 |
2.371 |
1.530 |
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Other Expenditure |
67.058 |
49.201 |
84.828 |
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Total Expenditure |
201.647 |
177.165 |
88.454 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
2.97
|
1.73 |
[1.98] |
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Net Profit Margin (PBT/Sales) |
(%) |
4.46
|
2.77 |
[0.95] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.94
|
8.00 |
[1.92] |
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Return on Investment (ROI) (PBT/Networth) |
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0.30
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0.20 |
[0.06] |
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Debt Equity Ratio (Total Liability/Networth) |
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1.47
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1.46 |
2.17 |
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Current Ratio (Current Asset/Current Liability) |
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1.51
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1.42 |
1.53 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Factory land
- Plant and Machinery
- Furniture and Fixture
- Scooter
- Moulds and Tools
- Weighting Machine
- Electric Installation
- Power Connection
- Cycle
- Car
- Generator
- Computer
- Air Pollution Plant
- Fax Machine
- Office Equipment
- Air Conditioner
Bankers Charges
Report as per Registry
|
Name of the company |
SRI NATH JI
ISPAT LIMITED |
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1) Date and description of instrument creating the change |
Agreement of
Hypothecation of Goods / Book Debts / Movable and agreement of letter of
credit facility dated 14.06.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.000
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
all stocks of Raw Materials, Stock in process, semi finished and finished
goods etc. consumable stored and spares, packing materials etc. purchased /
importer under letter of credit facility and more particularly descried in
Schedule Ii A hereunder written both present and future now being or
hereafter during the continuance of this agreement brought into or upon now
or hereafter in the corse of transit by road, rail or air to any Godown,
Jathas or other place of storage at plot no A – 5, South Side of G. T. Road
Industrial Area, Ghaziabad or other places whatsoever and wheresoever. All the present
and future book debts, outstanding money receivable, claims, bills, right to
or in movable properties and movable assets belonging to borrower which may
at any time hereafter during the continuance of this security become due, owing,
payable or belonging to the borrower. All the tangible
movable properties and assets of the borrower comprising plant, machinery,
tools and accessories, stores, spares relating to plant and machinery,
furniture, articles, office equipments, computers, things etc. particulars
described in schedule ‘B’ at plot no A – 5, South Side of G. T. Road
Industrial Area, Ghaziabad |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 4 % p.a.
over the PLR of Dena bank Prevailing on the date of development of LC Margin : 15 % |
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5) Name and Address and description of the person entitled to the charge. |
Dena Bank Core
No. 6, Scope Complex, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
As Per Website
Company Profile
Subject is a manufacturer of alloy steel castings in
Located in the National Capital Region of India it is well
connected with road, rail and air transportation and is in close proximity to
Container Corporation depot for exports.
Equipped in all area of
operation with committed personnel and innovative technology, they strive to
meet all their customer's need with quick development with large variation in
order quantity at the lowest possible cost without compromising on quality.
Their main aim is to deliver castings of the best quality at the lowest
possible lead-time backed with immaculate after-sales service.
They are a part of Maithan Group
of Industries led by Mr. B.K.Agarwalla having a impressive turnover of Rs.3000
million. Maithan group is one of the leading industrial house in
Products
Castings
Casting is not new to their country and has shown its existence
from more than 6000 years ago. It has been talked about in the Vedas wherein
most of the castings were idols of gods with perfection in Talmana (proportions),
Mudra (stance) and Bhavna (expression). The Iron Pillar at Delhi which more
than 1600 years old stands 23 feet high weighing more than 6000 kgs with 99.72%
iron is rust free till date and stands testimony to fine practices in their
culture. (
They have tried to carry forward their culture by making quality
castings with constant innovations for their valued customers.
Ingots
They
produce pencil ingots of Mild Steel Group in various sizes used in the
manufacturing of construction steel like Rods, TMT, Structures etc and
Chrome-Vanadium Ingots for Hand-tools manufacturers.
Forging
They also produce
forging ingots primarily used for open die forging in various grades as per
national and international standards mainly of carbon steel, carbon manganese
steel, stainless steel and other high alloys.
Major
Application Industries
Sugar
They manufacture individual components for all
major sugar plant manufacturers in
The products range for sugar industry includes
Mill House, Carriers and open/ closed Gears etc.
Cement
Castings like Mill heads, Bush Bearings, Support
Rollers, Liners, Jaw and Crushers etc comprise their product range for Cement
Plants.
Steel
They are the Strategic partner as well as self
certified vendor of The Tata Iron Steel Company Limited They produce the
different spares for the Steel and Sponge Iron Plants such as Rolling Mills
Stands, Chocks, Rollers, Gears, Pinions, Sheve Polly, Combined Bearings,
Support/ Thrust Rollers, Cooler tyres, Kiln Girth Gears and Housing etc.
Mining
They cast high wear and tear items for the
mining equipments like Scraper Blades, Bowl & Mentle, Rings, Teeth for Drag
Line and Shovels etc.
Refractory
They are one of the leading supplier of Tata
Refractory Limited, Bellhar. They produce the major castings for the Refractory
plants such as Upper Grinding Plate, Middle Grinding Plate, Tyre Mullers,
Grinding Rolles, Segments and Mother Moulds for SACMI and other various
presses.
Hand Tools
They produce high chrome vanadium ingots used in
manufacturing of hand tools have supplied to all major OEM's in
Ceramics
They produce wear and abrasion resistant castings
like liners, beaters etc for Ceramics manufacturing plants in
Thermal and Power Generation
They cast consumables for thermal plants like
liners, crusher hammers, granulator rings and turbine casings.
General
Engineering
Casting for General Engineering sector are
highly customised & comprise of products like Eccentric Gears, Helitical
Gears, Connecting Rods, Rings, Fly Wheels, Worm Housing, Quills etc
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 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|