MIRA
INFORM REPORT
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Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RRL STEELS LIMITED |
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Formerly Known As : |
RATAN RE-ROLLERS PRIVATE LIMITED |
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Registered Office : |
56 E, Hemanta Basu Sarani, Room No 47/1, Stephen House, Kolkata –
700001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.05.1966 |
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Com. Reg. No.: |
21-26829 |
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CIN No.: [Company
Identification No.] |
U31909WB1966PTC026829 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALR01621E |
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PAN No.: [Permanent
Account No.] |
AABCR3150L |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturers and Exporters of Manganese Steel and Alloy Steel |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 460000 |
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Status : |
Good |
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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 fine 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. The company can be considered as a promising business partner in
medium to long-run. |
LOCATIONS
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Registered Office / Factory : |
56 E, Hemanta Basu Sarani, Room No 47/1, Stephen House, Kolkata –
700001, West Bengal, |
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Tel. No.: |
91-33-22101173 / 22302798 |
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Fax No.: |
91-33-22306460 |
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E-Mail : |
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Website : |
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Head Office : |
4 BBD Bag (East), Stephen House, 3rd Floor, Room No 47/1, |
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Tel. No.: |
91-33-2206442 |
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Fax No.: |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Kashinath Seksaria |
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Designation : |
Managing Director |
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Address : |
15 Sarat Chatterjei, Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
01.03.1932 |
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Date of Appointment : |
24.11.1975 |
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Election Commission Identity Card No. : |
AKWPS9528H |
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Name : |
Mr. Amit Seksaria |
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Designation : |
Director |
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Address : |
15 Sarat Chatterjei, Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
02.12.1963 |
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Date of Appointment : |
08.02.2006 |
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Election Commission Identity Card No. : |
WE-23-149-330285 |
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Name : |
Mr. Swaraj Seksaria |
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Designation : |
Director |
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Address : |
15 Sarat Chatterjei, Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
15.08.1970 |
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Date of Appointment : |
08.02.2006 |
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Election Commission Identity Card No. : |
ALMPS8978A |
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Name : |
Mr. Ashok Kumar Laik |
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Designation : |
Director |
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Address : |
4, |
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Date of Birth/Age : |
24.04.1938 |
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Date of Appointment : |
09.07.2001 |
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Election Commission Identity Card No. : |
AACPL3108M |
KEY EXECUTIVES
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Name : |
Mr. Gautam Tibrewal |
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Designation : |
Company Secretary |
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Address : |
161, |
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Tel No. : |
91-33-22691797 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Amit Seksaria |
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3400 |
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Geeti Seksaria |
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350 |
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Kritika Seksaria |
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200 |
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Rama Seksaria and Amit Seksaria |
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800 |
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Swaraj Seksaria |
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3850 |
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Anuradha Seksaria |
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100 |
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Rama Seksaria and Swaraj Seksaria |
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800 |
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Amit Enterprises Private Limited |
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17200 |
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Neha Castings Private Limited |
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12300 |
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Total |
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39000 |
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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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24.36 |
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Other top fifty shareholders |
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75.64 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Manganese Steel and Alloy Steel |
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Products : |
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GENERAL INFORMATION
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Bankers : |
State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K Nath and Associates Chartered Accountants |
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Address : |
21 A, Stephen House, 4 BBD Bag [East], Kolkata – 700001, West, |
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Tel. No.: |
91-33-22109220 / 22483218 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75,000 |
Equity Shares |
Rs. 100/- each |
Rs. 7.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
39,000 |
Equity Shares |
Rs. 100/-
each |
Rs. 3.900
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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3.900 |
3.900 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
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112.332 |
52.979 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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116.232 |
56.879 |
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LOAN FUNDS |
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1] Secured Loans |
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6.418 |
4.710 |
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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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6.418 |
4.710 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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122.650 |
61.589 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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18.672 |
18.774 |
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Capital work-in-progress |
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0.000 |
0.220 |
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INVESTMENT |
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0.002 |
0.002 |
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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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17.960 |
10.260 |
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Sundry Debtors |
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34.857 |
25.158 |
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Cash & Bank Balances |
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45.465 |
21.521 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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18.428 |
5.352 |
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Total
Current Assets |
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116.710 |
62.291 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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7.434 |
8.253 |
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Provisions |
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5.300 |
11.445 |
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Total
Current Liabilities |
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12.734 |
19.698 |
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Net Current Assets |
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103.976 |
42.593 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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122.650 |
61.589 |
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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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240.868 |
165.724 |
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Other Income |
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0.828 |
1.345 |
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Total Income |
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241.696 |
167.069 |
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Profit/(Loss) Before Tax |
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97.167 |
41.428 |
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Provision for Taxation |
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33.367 |
15.907 |
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Profit/(Loss) After Tax |
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63.800 |
25.521 |
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Expenditures : |
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Interest |
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0.104 |
0.459 |
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Depreciation & Amortization |
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3.190 |
2.809 |
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Other Expenditure |
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142.989 |
121.129 |
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Total Expenditure |
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146.283 |
124.397 |
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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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26.40 |
15.28 |
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Net Profit Margin (PBT/Sales) |
(%) |
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40.34 |
25.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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71.77 |
51.10 |
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Return on Investment (ROI) (PBT/Networth) |
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0.84 |
0.73 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.16 |
0.43 |
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Current Ratio (Current Asset/Current Liability) |
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9.17 |
3.16 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
RRL STEELS
LIMITED |
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Presented By |
S. O. BASU, Company
Secretary in WTP |
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1) Date and description of instrument creating the change |
No instrument was
executed, but mortgage was created by deposit of Title Deeds on 28.12.1993 As modification
on 07.10.1997, 24.09.1998 and 14.03.2002 for Rs. 15.500 Millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 4.500
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 |
The scope and
benefits of creating mortgage by deposit of Title Deeds of the properties as
specified below is to create mortgage by deposit of Title Deeds under section
79 of the Transfer of Property Act, 1882 and within the meaning of Section 58
of the said Act to secure repayment of the sum of Rs. 4.500 Millions granted
by the Bank to the Company under different credit facility together with
interest, commission, discount and charges thereon. All those piece
and parcels of land admeasuring more or less 12841 sq. ft. together with
brick built structures, sheds, C. I. Sheds factory sheds, power rooms
standing thereon or on part thereof being premises No. 286, G T Road
Mali-Panchghara, Howrah together with right to common passage by way of first
charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The borrower
shall not do or allow anything which may prejudice the security. Interest,
commission, discount and charges as may be current from time to time for the
respective credit facilities as per the Banking norms and RBI Guidelines. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Commercial
Branch, |
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6) Date and brief description of instrument modifying the charge |
No Instrument was
executed, but mortgage was executed by constructive delivery and deposit of
Title Deeds on 03.09.2004 |
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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. |
By this
modification, the overall limit is enhanced from Rs. 15.500 Millions to Rs.
25.000 Millions with details of credit facilities as specified below : Rs in Millions
Particulars of
immovable properties and all other terms and conditions continue to remain as
before in full force and effect. |
As Per Website
Their foundry was established in the year 1980 and is
located at
Over the years they have acquired a good reputation by consistently striving to
manufacture castings of a quality that match the international industry
standards. They have a work force of about a hundred people employed in sales,
production, inspection and quality control. They devote a considerable amount
of time and energy to ensure that their customer needs are understood and met.
Their senior technical personnel examine the specific needs of each customer
and every effort is made to deliver quality castings at a reasonable price and
within the committed time frame.
They have exported 2000 tons of Manganese Steel castings to
Centrifugal
Castings
Since 1998 they are producing 90% of their castings by the
centrifugal process in order to get denser material free from inclusions. They
have two Horizontal and three Vertical Centrifugal Machines.
Exports
They have exported 2000 tons of Manganese Steel castings to
Equipment
Their foundry is equipped with the following:
- 250 KW Medium
Frequency Induction Melting Furnace supplied by Inductotherm (
- Intensive
Sand Mixer machine.
- Core Sand
Mixer machine.
- Jolter &
Moulding machines for making moulds.
- Five
Centrifugal Casting machines.
- Oil Fired
Heat Treatment Furnace.
- Shot Blasting
machine.
- Grinders for
finishing castings.
- Three Lathe
Machines for machining.
- Spectrometer
supplied by Spectro Analytical Instruments, Gmbh.
- Chemical
laboratory.
- Tensile
Testing machine, Hardness Tester and Microscope.
Meeting Industry Needs
The castings manufactured by them find applications in
various industries some of which are:
- Coal Mines
Crawler Links Track Pads
Tooth Points
Tooth Adaptors
- Steel Plants
Skid Pipes
Run-out-Table-Rolls
Impellers
SG Iron Rolls
Furnace Rollers
- Aluminum Plants
S.G. Iron Spools of up to 560 mm
outside diameter and 1830 mm length.
- Power Plants
Coal Crushing Hammers
Segmental Liners
Bull Ring Segments for Bowl
Mills
Grinding Rolls
Dust Collecting Tubes &
Vanes
- Pumps & Valves
Pump castings
Valve Body
- Others
Crusher Jaws
Investment
Castings
The Investment Casting Division is the latest diversified
manufacturing unit commissioned in the year 2002.
The prime advantage of this process is its ability to produce Engineering
components that are close to the final shape with excellent surface finish and
dimensional accuracy in microns. Choice can be made from a wide selection of
newly developed alloys with ease of handling any complex shapes, irrespective
of materials of construction. This eliminates / minimizes costly and cumbersome
machining operations and wastage as scrap.
Their unit has the facilities to undertake fine details like serrations,
spines, holes and slits. Even letters and logos can be reproduced accurately in
the casting itself. Their prime objective is to supply materials to the fullest
satisfaction of their customers and at competitive prices with respect to
consistent quality, timely delivery for all grades to National &
International Standards accurate in dimension and consistency of sound
structure.
Composition & Grades:
Ferrous and non-ferrous metals and alloys including
- Nickel and Cobalt based super alloys
- Aluminium and its alloys
- Low Alloy Steels
- Carbon Steels
- High Alloy Steels
- Grade of Hastalloys
- All grades of stellites
Production Capacity
15 M/T per month
Job Handling Capacity
Length: upto 400 mm
Weight: from few frames to 25 kgs per piece
Standard normal tolerance: As a general normal linear
tolerance of investment castings start with ± 0.125 mm extending to ± 0.25 mm
upto 25 mm and ± 0.10 mm for each addition of 25 mm thereafter. Normal
tolerance can be expected for production repeatability of all casting
dimensions. Even closer tolerance can be achieved. Premium tolerance requires
additional operations and very close tolerance can be achieved on selected
dimensions only. The tolerance achieved will depend on the alloy and
configuration of the castings. The same can be determined during consultation
with their Engineering Wing.
Production Facilities
- In-house
design cell
- High pressure
wax injection machine
- Auto clave
- Variable
frequency induction melting furnace
- High temperature
shell firing chamber furnace
- Specially
designed knock out and cut off equipment
- Automatic
grinding equipment
- Heat
treatment facilities
- In house
machine tool shop
- Shot and sand
blasting facility
- Spectrometer
for ferrous alloys
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.40.85 |
|
|
1 |
Rs.82.54 |
|
Euro |
1 |
Rs.55.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
70 |
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 |
|