MIRA INFORM REPORT
|
Report
Date : |
11.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
UTKAL STEELS LIMITED |
|
|
|
|
Registered
Office : |
Uditnagar, |
|
|
|
|
Country
: |
|
|
|
|
|
Financials
(as on) : |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
16.12.1970 |
|
|
|
|
CIN
No.: |
U271090R1970PTC000546 |
|
|
|
|
Com.
Reg. No.: |
15-546 |
|
|
|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMU02645G |
|
|
|
|
PAN
No.: (Permanent
Account No.) |
AAACU2254R |
|
|
|
|
Legal
Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line
of Business : |
Manufacturing of Iron Sheets, Strips Rods and Light
Structural and carried on Imports and Exports of various products like Coal
and Iron and Steel etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
Maximum
Credit Limit : |
|
|
|
|
|
Status
: |
Moderate |
|
|
|
|
Payment
Behaviour : |
Slow but
Correct |
|
|
|
|
Litigation
: |
Clear |
|
|
|
|
Comments
: |
Subject is an old established company having moderate
track. Financial position of the company can be regarded as moderate.
Payments are reported as slow but correct. However, the company can be considered normal for business
dealings at usual trade terms and conditions with slight caution. |
LOCATIONS
|
Registered
Office/Factory : |
Uditnagar, |
|
|
Tel.
No.: |
91-661- 2500509 / 2500903 / 2500104 |
|
|
Fax
No.: |
91-661- 2507738 |
|
|
E-Mail
: |
||
|
Website
: |
||
|
Area : |
50,000 Sq. ft |
|
|
Location : |
Leased |
|
|
|
|
|
|
ADMINISTRATIVE |
308, Mangalam
"A", Branch Office 24, Hemanta Basu Sarani, Kolkata - 700 001. Phone :
91 - 33 - 2243 4253 Fax : 91
- 33 - 2210 7662 Road
No.3, Banjara Hills, |
|
|
|
|
|
|
|
2001 PHONE:
91-261 2333745 / 5521538 |
|
|
|
|
|
|
Factory
2 : |
1-609, Vivya Shakti Complex, Amar Pet, |
|
|
Tel.
No.: |
91-40-23542304/14 |
|
|
Fax
No.: |
91-40-23542167 |
|
|
Area : |
30,000 Sq. ft |
|
|
Location : |
Leased |
|
|
|
|
|
|
Branches
: |
312- B, |
|
|
Tel.
No.: |
91-22-28251357/58 |
|
|
Fax
No.: |
91-22-28252116 |
|
|
E-Mail
: |
||
|
Area : |
14,000 Sq. ft |
|
|
Location : |
Leased |
|
|
|
|
|
|
Branches
: |
308, Mangalam "A", Branch Office 24, Hemanta
Basu Sarani, Kalkata - 700 001. |
|
|
Tel.
No.: |
91 - 33 - 2243 4253 |
|
|
Fax
No.: |
91 - 33 - 2210 7662 |
|
|
Area : |
12,000 Sq. ft |
|
|
Location : |
Leased |
|
DIRECTORS
|
Name : |
Mr. Rohit Gupta |
|
Designation
: |
Director |
|
|
|
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. Pawan K Agarwal |
60000 |
|
Mr. Rajesh Agarwal |
40000 |
|
Mrs. Rukhmini Agarwal |
40000 |
|
Mr. Gobindram Shreella |
30000 |
|
Mr. Sherndra Agarwal |
40000 |
|
Mr. D Shekar |
20000 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing of Iron Sheets, Strips Rods and Light
Structural and carried on Imports and Exports of various products like Coal
and Iron and Steel etc. |
|
|
|
|
Products
: |
Sponge Iron |
|
|
|
|
Exports
to : |
Europe, Africa, |
|
|
|
|
Imports
from : |
|
|
|
|
|
Terms
: |
|
|
Selling : |
L/C & Credit (30 days) |
|
|
|
|
Purchasing : |
L/C & Credit (30 days) |
GENERAL INFORMATION
|
Customers
: |
Wholesalers and Retailers |
|
|
|
|
Bankers
: |
v State Bank of v Punjab National Bank, v ICICI Bank v Andhra Bank v UCO Bank, |
|
|
|
|
Facilities : |
Cash / Credit limit Rs.102.000 millions UCO Bank |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
G. Mahapatra and Company. Chartered Accountant
Tel No. : 90-661-2501742 |
|
|
|
|
Associates
: |
Line of Business – Import of Coal and Iron
Line of Business – Trading Iron and Steel
Line of Business – Manufacturer of Steel Ingots and
Casting
|
|
|
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
3,00,000,00 |
Equity Shares |
Rs. 10/- Each |
Rs. 300.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
24000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 240.000 Millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
27.335 |
18.964 |
|
|
2] Share
Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves
& Surplus |
|
102.100 |
80.913 |
|
|
4]
(Accumulated Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
129.435 |
99.877 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
166.651 |
147.964 |
|
|
2]
Unsecured Loans |
|
56.050 |
100.875 |
|
TOTAL
BORROWING
|
|
222.701 |
248.839 |
|
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
352.136 |
348.716 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
44.317 |
35.397 |
|
Capital work-in-progress
|
|
0.312 |
5.709 |
|
|
|
|
|
|
|
INVESTMENT
|
|
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
136.140 |
265.360 |
|
|
Sundry Debtors
|
|
197.484 |
276.981 |
|
|
Cash & Bank Balances
|
|
35.743 |
27.099 |
|
|
Other Current Assets
|
|
0.000 |
0.000 |
|
|
Loans & Advances
|
|
251.326 |
150.168 |
Total Current Assets
|
|
620.693 |
719.608 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
372.609 |
409.542 |
|
|
Provisions
|
|
0.400 |
2.456 |
Total Current Liabilities
|
|
373.009 |
411.998 |
|
Net
Current Assets
|
|
247.684 |
307.610 |
|
|
|
|
|
|
|
Profit & Loss Account (Dr Balance )
|
|
58.939 |
0.000 |
|
Pre-Operative Expenses
|
|
0.884 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
352.136 |
348.716 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales
|
|
1709.509 |
1658.054 |
Other Income
|
|
37.518 |
38.828 |
Total Income
|
|
1747.027 |
1696.882 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
(119.395) |
8.105 |
Provision for Taxation
|
|
0.399 |
2.456 |
Profit/(Loss) After Tax
|
|
(119.794) |
5.649 |
|
|
|
|
|
Total Expenses
|
|
1838.995 |
1666.257 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
|
(6.85) |
0.33 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
(6.98) |
0.48 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
(17.95) |
1.07 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
(0.92) |
0.08 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
4.60 |
6.61 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
|
1.66 |
1.74 |
LOCAL AGENCY FURTHER
INFORMATION
Trade References:
v Steel Authority of India Limited
v Ispat Profiles Limited
v Tata Steel Limited
As per website
Details:
The Utkal Group of
Companies is one of the major importers, exporters and stockiest of various
kinds of Alloys steel, Carbon Steel, Mild Steel, Stainless Steel and other
Ferrous and Non-Ferrous Metals.
Besides Steel products the company is active in the import of items like Coal
and exports of Iron Ores.
The Company has the capacity to source both market and products. They cater to
refineries, chemical plants, petrochemical industry, fertilizer plants, cements
plants and industrial manufacture, power plants, electricity boards, railways,
construction industry.
COMPANY
PROFILE
UTKAL STEELS LTD
was established in the year 1970 in
PRODUCTS
They are the manufacturers for the following products like
At
Here the manufacturing activities include
manufacture of Sponge Iron, Steel Melting,
Steel Re Rolling, and Processing.
SPONGE IRON
STEEL
MELTING
LIGHT
STRUCTURAL PRODUCTS
At
Here the manufacturing activities include
manufacture of Wire Drawing, Galvanizing and Steel Rope Making .
GALVANIZED STEEL
BLACK
STEEL WIRE
EXPORTS
They are the
Exporter to the following countries like Europe, Africa,
Product that they export are
MS Wire Rods
GI Wire Rods
Earth Wire
Leaded
High Wire Carbon Rods
Billets
IMPORTS
They are the Importers
of the following products :
High Carbon Wire rods
EN I A Leaded wire rods
MS wire rods
Seemless Tubes & Pipes
Bearing Steel wire rods
Scrap
Boron Steel
Billets
Coal ( Australia , China , Indonesia , South Africa
)
The company is also actively involved in Import and Export of Iron and Steel
products. The
International Trading conducted with number of reputed Companies such as
CARGILL, CMC,
NOVOSTEEL, NOBLE GROUP 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. 40.63 |
|
|
1 |
Rs. 82.42 |
|
Euro |
1 |
Rs. 55.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT
LINES |
1~10 |
4 |
|
--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 |
|
38 |
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
|
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/normal. |
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 |