MIRA INFORM REPORT

 

 

Report Date :

24.09.2007

 

IDENTIFICATION DETAILS

 

Name :

SHIVAM IRON AND STEEL COMPANY LIMITED

 

 

Registered Office :

Kalyani Appartment, 1st Floor, Gandhi Chowk, Giridih – 815 301, Jharkhand.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

16.09.1998

 

 

Com. Reg. No.:

8594

 

 

CIN No.:

[Company Identification No.]

U00331JH1998PLC008594

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RCHS00811G

 

 

PAN No.:

[Permanent Account No.]

AAECS1926J

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturer and Exporter of Ferro Silicon, Ferro Crome, Ms Steel Ingot, SIS CON, Ms Angles, Coal Based Dri (Sponge Iron), Billets, TMT Bars, Silicon Manganese

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 872400

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Registered Office :

Kalyani Apartment, 1st Floor, Gandhi Chowk, Giridih – 815 301, Jharkhand, India

Tel. No.:

91-22-6532250073

Fax No.:

91-22-229326

E-Mail :

shivam76@vsnl.net 

shivam76@rediffmail.com

satyamrng@rediffmail.com 

Website :

http://www.shivamiron.com

 

 

Factory Office :

Dukhia Mahadev Temple Road, At Jambad, PO: Udnabad, Giridih – 815 301, Jharkhand

Tel. No.:

91-6532 244182 / 244027

Tele Fax No.:

91-6532 244082

 

 

Corporate Office

Chowk Bazar, Opposite Circuit House, Giridih – 815 301

Tel. No.:

91-6532 226182 / 222 951 / 229326

Fax No.:

91-6532 225951

 

 

Branch:

20 B, Abdul Hameed Sireei (British India Street ), 7th Floor, Block 7- A, Kolkata – 700 069, West Bengal, India

 

DIRECTORS

 

Name :

Mr. G. K. Agarwal

Designation :

Director

 

 

Name :

Mr. Binod   Kumar Agarwal

Designation :

Director

Address :

Chowk Bazar, Giridih – 815 301, Jharkhand, India

Date of Birth/Age :

03.01.1963

Date of Appointment :

21.09.1998

 

 

Name :

Mr. Pramod Kumar Agarwal

Designation :

Director

Address :

Chowk Bazar, Giridih – 815 301, Jharkhand, India

Date of Birth/Age :

26.07.1966

Date of Appointment :

16.09.1998

 

 

Name :

Mr. Arun Kumar Agarwal

Designation :

Director

Address :

Chowk Bazar, Giridih – 815 301, Jharkhand, India

Date of Birth/Age :

01.08.1960

Date of Appointment :

26.07.2004

 

 

Name :

Mr. Shiv Kumar Agarwal

Designation :

Director

Address :

Chowk Bazar, Giridih – 815 301, Jharkhand, India

Date of Birth/Age :

15.03.1962

Date of Appointment :

01.07.2001

 

 

Equity Share Break – up (Percentage of Total Equity )

 

Sr. No.

Category

Percentage

1

Bodies Corporate

69.27

2

Directors or relatives of directors

25.60

3

Other top fifty (50 ) Shareholders

5.13

 

Total

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Iron and Steel Products.

 

 

Products :

Plant

No.

Capacity

Induction Furnace

2

25000 MT

Rolling Mill

1

25000 MT

Re-Rolling Mill

1

25000 MT

Submerged Arc Furnace

2

20000 MT

 

GENERAL INFORMATION

 

Bankers :

State Bank of India

Address: Giridih Bazar Branch, Whitty Bazar, Giridih – 815 301, Jharkhand

E-Mali ID : sbi.06449@sbi.co.in

 

 

Facilities :

Particulars

(Rs. in millions)

Cash Credit (Stocks)

Rs. 27.700

Cash Credit (Book Debts)

Rs. 12.800

Letter of Credit

Rs. 20.000

Total Limit

Rs. 60.500

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Kedia Agarwal and Associates

Chartered Accountants

Address :

Tah Complex, Gandhi Chowk, Giridih – 815 301,  Jharkhand, India

 

 

Associates/Subsidiaries :

Nil

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

7000000

Equity shares

Rs. 10/- each

Rs. 70.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6572600

Equity shares

Rs. 10/- each

Rs.65.726 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

 

65.726

63.106

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

152.374

138.730

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

218.100

201.836

LOAN FUNDS

 

 

 

1] Secured Loans

 

104.883

109.502

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

104.883

109.502

DEFERRED TAX LIABILITIES

 

6.195

6.975

 

 

 

 

TOTAL

 

329.178

318.313

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

80.790

92.756

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

0DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

207.944

220.024

 

Sundry Debtors
 

71.855

29.353

 

Cash & Bank Balances
 

8.050

9.080

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

33.126

16.351

Total Current Assets
 

320.975

274.808

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

72.517

49.253

 

Provisions
 

0.070

0.000

Total Current Liabilities
 

72.587

49.253

Net Current Assets
 

248.388

225.555

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.002

 

 

 

 

TOTAL

 

329.178

318.313

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

465.739

486.602

Other Income

 

81.327

27.595

Total Income

 

547.066

514.197

 

 

 

 

Profit/(Loss) Before Tax

 

4.958

12.844

Provision for Taxation

 

1.792

4.208

Profit/(Loss) After Tax

 

3.166

8.636

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Sales of goods Manufactured

 

28.220

22.028

Total Earnings

 

28.220

50.248

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

 

225.271

244.410

 

Consumption of stores and spares parts

 

9.489

10.265

 

Increase/(Decrease) in Finished Goods

 

[9.221]

[29.082]

 

Salaries, Wages, Bonus, etc.

 

4.612

4.482

 

Managerial Remuneration

 

0.960

0.960

 

Payment to Auditors

 

0.067

0.055

 

Interest

 

10.771

9.402

 

Insurance Expenses

 

2.462

2.633

 

Power & Fuel

 

233.027

207.528

 

Depreciation & Amortization

 

13.248

11.773

 

Other Expenditure

 

79.638

60.952

Total Expenditure

 

570.324

523.378

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

0.57

1.67

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

1.06

2.63

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

1.23

3.49

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.02

0.06

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.81

0.78

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

4.42

5.57

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Corporation identity number or foreign company registrations number of the company 

U00331JH1998PLC008594

Name of the company

SHIVAM IRON AND STEEL COMPANY LIMITED

Address

Kalayani Apartment, Gandhi Chowk, Giridih – 815 301, Jharkhand, India

This Form is for

Modification of Charge

Type of Charges

·         Immovable property

·         Book debts

·         Movable Property

·         Floating charge

·         Others

Particular of the charge holder 

State Bank of India

Address: Giridih Bazar Branch, Whitty Bazar, Giridih – 815 301, Jharkhand

E-Mali ID : sbi.06449@sbi.co.in

Nature or description of the instrument creating charge  

·         Supplemental deed of a guarantee for increase in overall limit dated 20.12.2006

·         Supplemental Agreement of Hypothecation of goods and assets dated 20.12.2006

·         Supplemental Agreement of loan for increase in the overall limit date 20.12.2006

·         Letter regarding the grant of individuals limits within the overall limit dated 20.12.1006

·         Letter of undertaking by company not to create any further charge over their property and assets including uncalled capital dated 20.12.2006

Date of the instrument creating charge

20.12.2006

Amount Secure by the charge

Rs.165.823 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of interest:

At SBAR, present effective rate will be 11% p.a. at monthly rests.

 

Terms of repayment

·         Working capital – 12 Months subject to renewal thereafter

·         The Term loan shall be repaid as per existing repayment schedule

 

Margin:

·         Cash Credit : Raw Material – 25%, Finished goods – 25%, Book debts – 40% (cover period 30 days)

·         Letter of Credit – 25%

·         Bank Guarantee – 25%

 

Extent and operation of the charge:

First and Full Charge

 

Others:

 Personal guarantee of :

·         Binod Kumar Agarwala (Director)

·         Gopal Kumar Agarwala 

·         Pramod Kumar Agarwala (Director)

·         Shiv Kumar Agarwala (Director)

·         Arun Kumar Agarwala (Director)

·         Leela Devi Sgarwala

·         Barkha Agarwala

·         Ramniwas Agarwala

·         Alok Kumar Agarwala

·         Sudha Agarwala

Short particulars of the property charged (including location of the property)

·         Hypothecation of raw materials, Stock in process, Finished goods, Consumable and other current assets and book Debts.

·         Hypothecation of fixed assets of the company worth Rs. 80.790 millions (WDV as on 31.03.2006)(

·         Land and building situated at

-          Jambad, PO Udnabad, District – Giridih

-          Dhanadih, PO senadoni, District – Giridih

-          Station Road Giridih

-          Jambad, Gadi Shrirampur, Pargana – Kharagdiha, District - Giridih

Particulars of the Present modification 

The Bank has sanctioned additional limits of cash credit (stocks) – Rs. 27.700 millions, Cash credit (Book Debts) Rs. 12.800 millions, Letter of Credit - Rs.20.000 making total limits of Rs. 165.823 millions containing cash credit (stocks) – Rs. 77.500 millions, Cash Credit (Book Debts) – Rs. 20.000 millions, Term Loan  - Rs. 26.323 millions, Letter of Guarantee – Rs. 32.000 millions and Bank Guarantee Rs. 10.000 millions (* interchangeability of Rs. 10.000 millions between letter of Credit and Bank Guarantee and vice versa.

 

WEBSITES DETAILS:

 

The new company , called Shivam Iron and Steel Company Private Limited (SISCO) had been incorporated in the year 1998 was expected to have considerable skill and resources of producing Iron and Steel today within its fold four plants at Giridih - Jharkhand and Raniganj - West Bengal producing Ferro-Alloy , MS-Billets , MS-Ingots , Sponge Iron ,TMT Bars , Angles , Channels , Flate and heavy structural etc.

 

"SISCO" group of Companies an upcoming Business house in Steel Sector in Eastern region has been accredited with ISO-9001:2000 certification to achieve its  overall efficiency of the Company .

 

"SISCO" has been coitted to produce an internationally accepted quality , efficient delivery schedule , competitive prices to its customers and enjoying international repute by selling its products to its favoured customers in India and abroad . A nation-wide marketing network of SISCO ensures avail ability of its product in every nook and corner of the country, besides offering the facility of the direct dispatch of the materials from its plants to customer’s door-steps. The Company maintained stock yards at selected locations to make the material readily available on just in time to its domestic customers. An experienced and qualified technocrat are the hallmark of the company, company is working in well accepted corpoate style and adhering to the basic principle of the corporate governance.

 

SISCO is a company driven by demand of its customers and it cares to meet their needs having ambitious expansion plans in the near future. It has plan to put another coal based DRI plant at Jamuria - West Bengal and also to put re-rolling mill to produce heavy structural at Raniganj-West Bengal . Besides the Group is planning to acquire land at Orissa in a SEZ notified by the Govt. of Orrisa to put another bulk Ferro-Alloys Plant.

 

TISCO, JINDAL, RINL/VSP, SPS, RATHI GROUP, IISCO etc. are valid customers, the product of SISCO has established its quality in the biggest steel market of India, i.e. MANDI GOVINDGARH. Taking advantage of the emerging demands from the International markets, company has started exporting its Ferro-Alloys to many countries in the world.

 

Their Corporate principles represent an orientation framework for the future development of the company. They determine both, everyday work an strategic considerations within the company.

 

·         They act in an ecologically responsible manner to protect the environment and their natural resources.

·         They pursue open communication and reliable, long-term co-operation with their business partners.

·         They consider the qualification, commitment and performance of their employees to be the decisive factors of their success.

·         They profess fair, offensive competition.

·         They wish to make consistent profits, since this is a requisite for the long-term successful development of the company

 

Main Products

 

“SISCO” An ISO 9001:2000 Certified Company has committed to produce an internationally accepted quality, efficient delivery schedule, and competitive prices. A nation-wide marketing network ensures availability of SISCO products in every nook and corner of the country. Taking advantage of the emerging demands from the international markets.

 

» Silicon Manganese

» Ferro Manganese

» Ferro Silicon

» Ferro Crome

» Ms Steel Ingot

» SISCON TMT Bar

» MS Angles

» MS Channels

» Coal Based DRI (Sponge Iron)

» Steel Billets

 

Other information

  • Other product

-          MS – Steel Ingots

-          SISCON TMT Bar

-          MS Angles

-          ME Channels

-          MS Flats

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.39.82

UK Pound

1

Rs.80.85

Euro

1

Rs.56.22

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions