MIRA
INFORM REPORT
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Report Date : |
27.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHAM UDYOG LIMITED |
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Registered Office : |
Village Gaunspura Ludhiana Road, Malerkotla, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.01.1989 |
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Com. Reg. No.: |
16-8941 |
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CIN No.: [Company
Identification No.] |
U00000PB1989PLC008941 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDS04315D |
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PAN No.: [Permanent
Account No.] |
AAFCS1991N |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Casting, Steel Rolls, Cast Iron Rolls. |
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 89000 |
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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. Trade relations are reported as fair. Business is active.
Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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LOCATIONS
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Registered Office / Factory : |
Village Gaunspura Ludhiana Road, Malerkotla – 148 023, Punjab, India |
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Tel. No.: |
91-1675-263158 |
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E-Mail : |
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Website : |
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Head Office: |
Shop No. 24, Sector 4 Mandi Gobindgarh-147 301, Punjab, India |
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Tel. No.: |
91-1765-507790 |
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Fax No.: |
91-1765-259187 |
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E-Mail: |
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Branches : |
Didar Steel Complex Private Limited, Salempur Road,Amargarh – 148 002,
India |
DIRECTORS
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Name : |
Mrs. Chotto Devi |
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Designation : |
Director |
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Address : |
Dr. Waryam Singh Street, Nabha, India |
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Date of Appointment : |
20.05.2001 |
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Name : |
Mr. Jai Prakash Goyal |
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Designation : |
Director |
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Address : |
Dr. Waryam Singh Street, Nabha, India |
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Date of Appointment : |
03.01.2000 |
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Name : |
Mr. Prem Chand Goyal |
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Designation : |
Director |
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Address : |
Dr. Waryam Singh Street, Nabha, India |
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Date of Appointment : |
03.01.2000 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders [as on 31.03.2007]:- |
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No. of Shares |
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Mr. Prem Chand Goyal |
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38790 |
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Mr. Jai Prakash |
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21700 |
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Mrs. Chhotto Devi |
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10250 |
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Mrs. Shubh Lata |
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5550 |
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Mr. Anil Kumar |
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700 |
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Mr. SAgar Chand |
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2100 |
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Cilson Finance and Investment Limited |
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10000 |
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Musk Exports Marketing Limited
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10000 |
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Besty Growth Finance limited |
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2000 |
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Mr. Arun Kumar |
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1000 |
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Bakshi Securities Limited |
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8000 |
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Mrs. Indu Goyal |
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2110 |
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Mr. Ranjeet Singh |
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3000 |
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Mr. Balbir Singh |
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2000 |
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Mr. MUkand Singh |
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2500 |
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Mr. Narajan Singh |
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3000 |
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Mr. Jagpal Singh |
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4500 |
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Mr. Didar Singh |
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1500 |
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Mr. Charau Singh |
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3000 |
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Mr. Baldev Singh |
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4000 |
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MR. Pritam Singh |
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3000 |
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Mr. Karnail Singh |
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1300 |
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Mr. Ruldu Singh |
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1500 |
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Mr. Udoem Singh |
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3000 |
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Mr. Labh Singh |
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3500 |
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Mr. Hari Singh |
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2000 |
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Total
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150000 |
Equity Shares Breakup (Percentage of Total Equity): [as on 31.03.2007]:-
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Sr No. |
Category |
Percentage |
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1 |
Directors or relative of directors |
55.00 |
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2 |
Other top fifty (50) shareholders |
45.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Casting, Steel Rolls, Cast Iron Rolls. |
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Products : |
Casting · Steel Casting · Cart Iron Casting · Stainless Steel Casting · Alloy Steel Casting Steel Rolls · Adamite Steel Rolls · High Carbon High Chromium Rolls · Graphites Steel Rolls · Hiten Steel Rolls · Alloy Steel Rolls Cast Iron Rolls · Duplex · Rolls · Spheroidal Graphite Rolls · Chilled Rolls |
GENERAL
INFORMATION
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Bankers : |
Punjab and Sind Bank Address: College
Road, Malerkotla – 148 023, Punjab, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Bhim Sain Goyal Chartered Accountants |
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Address : |
Purani Anaj Mandi, Nabha – 147 201, Punjab, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100/- each |
Rs.15.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100/-
each |
Rs.15.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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15.000 |
15.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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7.223 |
7.044 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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22.223 |
22.044 |
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LOAN FUNDS |
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1] Secured Loans |
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34.859 |
18.226 |
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2] Unsecured Loans |
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11.281 |
10.730 |
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TOTAL BORROWING |
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46.140 |
28.956 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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68.363 |
51.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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29.702 |
25.239 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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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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57.214 |
50.732 |
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Sundry Debtors |
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12.395 |
16.706 |
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Cash & Bank Balances |
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0.551 |
1.072 |
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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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8.239 |
9.195 |
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Total
Current Assets |
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78.399 |
77.705 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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39.738 |
51.944 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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39.738 |
51.944 |
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Net Current Assets |
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38.661 |
25.761 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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68.363 |
51.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
268.806 |
287.207 |
348.586 |
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Other Income |
0.030 |
1.721 |
0.000 |
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Total Income |
268.836 |
288.928 |
348.586 |
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Profit/(Loss) Before Tax |
0.427 |
1.743 |
2.609 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
0.427 |
1.743 |
2.609 |
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Expenditures : |
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Raw Material Consumed |
170.193 |
198.812 |
243.797 |
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Consumption of stores and spares parts |
6.473 |
3.505 |
2.577 |
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Increase/(Decrease) in Finished Goods |
5.660 |
[25.093] |
0.178 |
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Salaries, Wages, Bonus, etc. |
2.134 |
2.053 |
1.743 |
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Managerial Remuneration |
0.240 |
0.240 |
0.060 |
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Payment to Auditors |
0.026 |
0.026 |
0.026 |
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Interest |
3.830 |
1.771 |
1.825 |
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Insurance Expenses |
0.157 |
0.164 |
0.180 |
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Power & Fuel |
42.744 |
57.255 |
57.832 |
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Depreciation & Amortization |
2.938 |
3.921 |
3.723 |
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Other Expenditure |
34.014 |
44.531 |
34.036 |
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Total Expenditure |
268.409 |
44.531 |
345.977 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
0.16
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0.60 |
0.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.16
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0.60 |
0.75 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.39
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1.69 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.02
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0.79 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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3.86
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3.66 |
NA |
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Current Ratio (Current Asset/Current Liability) |
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1.97
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1.49 |
NA |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
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Corporation identity number or foreign company registrations number of
the company |
L00000PB1989PLC008941 |
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Name of the company |
SHAM UDYOG LIMITED |
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Address |
Village Gaunspura Ludhiana Road, Malerkotla, Punjab , India |
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This Form is for |
Creation of Charge |
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Type of Charges |
Movable Property Others |
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Particular of the charge holder
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Punjab and Sind Bank Address: College Road, Malerkotla – 148
023, Punjab, India |
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Nature or description of the instrument creating charge |
Hypothecation of goods to secure a Demand
cash credit |
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Date of the instrument creating charge |
21.03.2007 |
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Amount Secure by the charge |
Rs. 9.250 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest : 11.25% p.a Terms of repayment: Repayable in 36 monthly installment Margin: 25% Extent and operation of the charge: 100% on the assets i.e. Plant and
Machinery of the Company Others: The Bank can inspect the assets of the
company at any time |
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Short particulars of the Property charged |
Hypothecation of Plant and Machinery
consisting Lathe Machines, VTL -2 MT Anailing Furnace Complete, Specto
Meters, etc. |
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Name of the
company |
SHAM UDYOG LIMITED |
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Presented By |
Mr. Jai Prakash
Goyal, Director |
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1) Date and
description of instrument creating the change |
Agreement of
hypothecation of goods to secure A Demand Cash Credit A letter stating
repayment schedule Letter of deposit
of title deeds of land and building All document
dated 04.01.2006 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 4.000
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
plant and Machinery existing as well as future installed at premises at
Village Gaunspura , Ludhiana Road, Malerkotla Equitable
mortgage of Land and Building bearing sale deed No. 4054, 4056 and 4281, all
situated at Village Gaunspura, Tehsil Malerkotla |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest 11.30% per annum Extent and Operation 100% Margin 25% Repayable in 36 monthly of Rs. 0.112
million plus Interest |
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5) Name and
Address and description of the person entitled to the charge. |
Punjab and Sind Bank, Malerkotla |
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6) Date and brief description of instrument
modifying the charge |
NA |
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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. |
NA |
WEBSITE DETAILS:
Company Profile:
Sham Udyog Group is
one of North India biggest and promising business houses striving to be the
leader in every business that it Ventures into. The core business of the
group are steel castings and rolling mill Rolls.
Mr. J P Goel is the founder Chairman and the chief architect of the Sham Udyog Group comprising of the company.
Sham Udyog Group is one of the most modern roll making facilities equipped with up to date technology, machinery and human resources in the field of roll manufacturing supplier.
Infrastructure:
Steel Metalting Shop
· Induction Furnace (7.5 MT and 500 kg) with two Crucibles each
· Refining Laddle
- Capacity 15 MT
- Capacity 10 MT
- Capacity 5 MT
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Capacity 1500 Kg
· Generator Set
· Temperature Recorders for LM temperature measurement
· Argon Purging System
· Ferro alloy and BP Set Preheating System
Steel casting Division
(Foundry)
· Heat Treatment Furnace with 8 Point Temperature Recorder
· Air Compressor
· Sand Mixer
· Sand Muller
· Swing Frame Grinder
· Padestal Grinders
· Shot Blasting Machine
· Pneumatic Tools, Hand Grinder
· Welding set
· Lathe Machines
R and D Quality Control
· Spectrometer
· Fully Equipped Wet Analysis Chemical Lab
· Ultrasonic Flaw Detector
· Muffle Furnace
· Hardness Testing Equipment
· Universal Testing Equipment
· Sand Testing Lab
· MPi/Dp Testing in House Facility Available
· Sample cutting Machine
· Marking Instrument.
Quality assurance
Casting and rolls are closely monitored
through spectrographic chemical analysis microstructure analysis hardness,
apart from ultrasonic testing,
mechanical Strength and dimensional control. The Company is equipped
with necessary instruments required
for theses control measures.
Product Range
Casting
· Steel Casting
· Cart Iron Casting
· Stainless Steel Casting
· Alloy Steel Casting
Steel Rolls
· Adamite Steel Rolls
· High Carbon High Chromium Rolls
· Graphites Steel Rolls
· Hiten Steel Rolls
· Alloy Steel Rolls
Cast Iron Rolls
· Duplex
· Rolls
· Spheroidal Graphite Rolls
· Chilled Rolls
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.39.97 |
|
UK Pound |
1 |
Rs.79.53 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--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 |
|