MIRA
INFORM REPORT
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Report Date : |
11.09.2007 |
IDENTIFICATION DETAILS
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Name : |
P P ROLLING MILLS MANUFACTURING COMPANY PRIVATE LIMITED |
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Formerly Known As : |
P. P. Engineering Works |
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Registered Office : |
D - 820, New Friends Colony, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.04.1998 |
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Com. Reg. No.: |
55 – 93215 |
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CIN No.: [Company
Identification No.] |
U29223DL1998PTC093215 |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Hot Rolling
Mills, TMT Equipments, Cold Rolling Mills, TMT Bar and TMT Steel Bar. |
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
10000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade
relations are fair. 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 : |
D - 820, New Friends Colony, |
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Tel. No.: |
91-11-2684 8885, 2683 6340, 2632 6325, 4162 7515, 4162 7516 |
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Mobile No.: |
91-9810076425/ 9810035999 |
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Fax No.: |
91-11-2683 6335 |
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E-Mail : |
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Website : |
http://www.pprm.com
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DIRECTORS
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Name : |
Mr. Praneet Khanna |
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Designation : |
Director [Operations] |
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Address : |
D - 820, New Friends Colony, |
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Date of Birth/Age : |
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Date of Appointment : |
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Name : |
Ms. Renu Khanna |
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Designation : |
Whole Time Director |
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Address : |
D-820, New Friends Colony, |
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Date of Birth/Age : |
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Date of Appointment : |
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Name : |
Mr Pankaj Khanna |
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Designation : |
Managing Director |
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Address : |
D-820, New Friends Colony, |
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Date of Birth/Age : |
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Date of Appointment : |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Ms. Renu Khanna |
60000 |
57.69 |
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Mr. Pankaj Khanna |
40000 |
38.46 |
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Others |
4000 |
3.85 |
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TOTAL |
104000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Hot Rolling
Mills, TMT Equipments, Cold Rolling Mills, TMT Bar and TMT Steel Bar. |
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Products : |
Mill Stand Gear Boxes Flying Shears Hot Rolling Mills TMT Equipments Cold Rolling Mills Gearboxes TMT Bar TMT Steel Bar Hobbing Machines Roughing Mill – Rolling Mill Equipment Cooling Bed-Hot Rolling Mill Equipment Pre-Stressed Mill Stands Pinch Roll & High Speed Shears |
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Exports to : |
Abu Dhabi, Nepal, Dubai, Indonesia,
Senegal, Sri Lanka, Pakistan, Germany, Austria, U.S.A. Spain and Bahrain |
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Imports to : |
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GENERAL INFORMATION
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Customers : |
SMS, VAI, United Sulzer Hydro Larsen & Toubro Ltd Tata Growth Shop Steel Authority of India Ltd Al-Ittefaq Steels MID Sheema Steels AMK Steels |
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No. of Employees : |
75 |
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Bankers : |
Corporation Bank Overseas Branch, H. T. House, K. G. Marg,
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Facilities : |
Term Loan : Rs. 40 millions from
Corporation Bank as per Hypothecation agreement dated Packing Credit : Rs.10 millions, FDBN Rs.
30 millions, FBG Rs. 20 million, Inland Letter of Guarantee: Rs. 10 millions
as per Agreement dated It is further secured against mortgage industrial plot admeasuring 13975 sq. meters situated at Village Nuwla, Haryana |
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Banking Relations : |
-- |
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Auditors : |
K N Barry & Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 10/- each |
Rs. 2.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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104000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.040 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2007 |
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Sales
Turnover |
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Around Rs.350.000 |
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Expected
Sales (2007-08) :Around Rs.500.000
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 |
10.000 |
1.040 |
1.020 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
9.173 |
1.164 |
0.263 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
19.173 |
2.204 |
1.283 |
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LOAN FUNDS |
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1] Secured Loans |
18.532 |
1.845 |
1.845 |
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2] Unsecured Loans |
0.438 |
0.000 |
0.000 |
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TOTAL BORROWING |
18.970 |
1.845 |
1.845 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
38.143 |
4.049 |
3.128 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
57.924 |
3.773 |
0.062 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
21.878
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0.000 |
0.000 |
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Sundry Debtors |
4.646
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0.000 |
0.000 |
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Cash & Bank Balances |
52.102
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8.686 |
2.075 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
46.657
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3.619 |
1.211 |
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Total Current Assets |
125.283
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12.305 |
3.286 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
139.188
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11.485 |
0.006 |
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Provisions |
5.968
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0.549 |
0.221 |
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Total Current Liabilities |
145.156
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12.034 |
0.227 |
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Net Current Assets |
(19.873)
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0.271 |
3.059 |
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MISCELLANEOUS EXPENSES |
0.092 |
0.005 |
0.007 |
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TOTAL |
38.143 |
4.049 |
3.128 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover [including other income] |
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300.000 |
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Profit/(Loss)
Before Tax |
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12.472 |
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Provision
for Taxation |
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4.462 |
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Profit/(Loss)
After Tax |
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9.173 |
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Expenditures : |
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Cost of Goods Sold |
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0.000 |
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Manufacturing Expenses |
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0.000 |
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Administrative Expenses |
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16.860 |
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Raw Material Consumed |
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188.208 |
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Purchases made for re-sale |
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0.000 |
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Consumption of stores and spares parts |
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0.000 |
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Increase/(Decrease) in Finished Goods |
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0.000 |
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Salaries, Wages, Bonus, etc. |
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1.372 |
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Managerial Remuneration |
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0.000 |
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Payment to Auditors |
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0.000 |
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Interest |
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0.147 |
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Insurance Expenses |
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0.000 |
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Power & Fuel |
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2.935 |
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Depreciation & Amortization |
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3.665 |
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Other Expenditure |
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32.647 |
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Total Expenditure |
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245.834 |
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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3.05
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-- |
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Net
Profit Margin (PBT/Sales) |
(%) |
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4.15
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-- |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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6.80
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--- |
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Return
on Investment (ROI) (PBT/Networth) |
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0.65
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-- |
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Debt
Equity Ratio (Total
Liability/Networth) |
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8.56
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6.29 |
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Current
Ratio (Current
Asset/Current Liability) |
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0.86
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1.02 |
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LOCAL AGENCY FURTHER INFORMATION
The
company has technical collaborations with the followings :
JPM Steels,
Herbert Rothe Consulting Engineers
Tempcore,
CRM,
Badschie
BSE,
Subject was an ISO 9001:2000 Certified Company.
WEBSITE DETAILS
Profile
Since its inception in 1985, P. P.
Rolling Mills Manufacturing Company Private Limited, is one of the
pioneer manufacturer and exporter of Hot
Rolling Mills, TMT Equipments, Cold Rolling Mills, Gearboxes, TMT Bar and TMT
Steel Bar. The company is successfully moving ahead since last twenty
years. The credit goes to their company's dedicated and experienced staff
members and technicians, who never take a back seat during challenging times. They
are highly motivated to achieve excellence and in attempt to do so they
undertake sincere and hard efforts. As a result the company is working in close
liaison with some of the big units such as SMS, VAI, Sulzer Hydro, Larsen and Toubro Limited, Tata Growth Shop, SAIL.
Features
Superior quality.
Experienced staff.
Technically qualified engineers.
Strong customer support.
Cost effective.
Reasonable pricing.
Operational excellence.
Cultural improvements.
Infrastructure
Their infrastructural facilities include:
A full fledged CAD based design section backed by professionals with
decades of field experience.
A team of highly skilled and experienced quality control engineers.
Highly reliable localized and global vendor base.
Well equipped fabrication and machine shop.
Specialty
Their
modern machine shop consists some of the best European made machines including:
Horizontal and vertical borings, Gear
hobbing machines, Cylindrical grinding machines, Lathe and Milling machines,
Profile cutting and welding machines.
Vision
"Excellence is never accidental, it is
deliberately designed” - with this vision P.P. Rolling Mills was started.
The idea is to create a milestone in the field of quality performance and
providing their customers with best quality products.
They believe in enduring partnerships with
every customer, so that the relationship grows stronger with mutual success and
progress.
COMPAY PROFILE
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Business Type |
Exporter,
Manufacturer |
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Export Percentage |
50% |
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Primary Competitive Advantages |
Superior Quality, Technically
Qualified Engineers, Cost Effective |
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No of Staff |
100 |
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Year of Establishment |
1985 |
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No of Production Lines |
2 |
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OEM Service Provided |
No |
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Production Type |
Automatic
Machine-made |
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No of Engineers |
100 |
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Monthly Production Capacity |
As per buyer's
requirement |
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
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Indian Rupees |
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US
Dollar |
1 |
Rs.40.63 |
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1 |
Rs.82.42 |
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Euro |
1 |
Rs.55.96 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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