MIRA
INFORM REPORT
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Report Date : |
14.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
VARRSANA ISPAT LIMITED |
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Registered Office : |
Everest House, 46-C, Chowringee Road, 15th Floor, R N 15B,
Kolkata – 700071, West Bengal |
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Country : |
India |
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Date of Incorporation : |
01.03.2000 |
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Com. Reg. No.: |
124804 |
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CIN No.: [Company
Identification No.] |
U99999WB2000PLC124804 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALV02125E |
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PAN No.: [Permanent
Account No.] |
AACCV1058N |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of Strong and Powerful Wind Towers |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not recommended |
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Status : |
Undetermined |
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Payment Behaviour : |
Unknown |
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Litigation : |
Unknown |
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Comments : |
Subject is poor in Corporate Governance as no Financials and Annual
Return documents are available since incorporation in 2000. The company remained non-corporative during current investigation. No payment or track records details are available. It would be prudent to deal with the company
on safe and secured trade terms and conditions, only. |
LOCATIONS
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Registered Office : |
Everest House, 46-C, Chowringee Road, 15th Floor, R N 15B,
Kolkata – 700071, West Bengal, India |
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Tel. No.: |
91-33-30925061/ 30925062 |
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Fax No.: |
91-33-22882241 |
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E-Mail : |
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Website : |
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Factory : |
P.O. Box 133, Village Varrsana, Taluka, Gandhidham, Kutch – 370201,
Gujarat, India |
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Tel. No.: |
91-2836-249976/ 396866 |
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Fax No.: |
91-2836-299975 |
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E-Mail : |
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Website : |
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Corporate Office : |
58A/1, Sainik Farm, New Delhi – 110062, India |
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Tel No.: |
91-11-32906030 |
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Fax No.: |
91-11-29552403 |
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Email : |
DIRECTORS
Not Available
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Strong and Powerful Wind Towers |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
Unknown |
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Auditors : |
Not Available |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11993070 |
Equity Shares |
Rs.10/- each |
Rs.119.931 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
No financials are available since
incorporation of the company.
Management remained non – corporative during
current investigation.
LOCAL AGENCY
FURTHER INFORMATION
As Per Website:
Profile:
Subject is an integrated tower infrastructure company
ideally positioned to take advantage of the boom in telecom towers in India. It
aspires to share the dream of millions to build a New India. Operating with a
passion to excel, the company strives to be the monarch of the infrastructure
industry. Experienced manpower fully equipped with technical expertise has
proved to be the hallmark of success for subject. They have not only marked a
remarkable presence in the market, but also have contributed to the development
of the nation significantly. They are located near Kandla and Mundra port, and
it offers an easy accessibility to the global market.
Empowered by this geographical advantage as well as
technical superiority of the company, they have already created strongholds in
the markets across the globe. Keeping pace with the changing time, they have
embarked on an ambitious journey of additional backward and forward integration
in the industry.
DRI
Plant
105,000 Tons/Per Annum
Subject proclaims its leadership position in the market by
introducing the Pre-heating technology in Sponge Iron Plants in India. The use
of Pre-heating technology in the Rotary Kilns has made it capable of producing
at 175% of its installed capacity. It has enabled the company to enjoy an edge
over its competitors through more efficient production capabilities.
The DRI plant stands testimony to the dedication and innovative mind of the
professionals of the company and it has instilled new confidence in the
workforce to achieve more with newer production techniques.
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Characterisitic |
Requirement |
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% Non-magnetic |
1.0 Max. |
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% Metalic Fe |
81 Min. |
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% Total Fe |
91 Min. |
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Metallisation |
88 Min. |
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%Phosphorous |
0.05 Max. |
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% Sulphur |
0.025 Max. |
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% Carbon |
0.3 Max. |
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% SiO2+ Al2O3 |
5 Max. |
Size: A grade Lumps 3-20 mm (-3 mm 5% Max.)
A grade Fines 0-6 mm (+6 mm 5% Max.)
Steel
Melting Shop
240,000 Tons pa
The company is equipped with a state-of-the-art Steel Melting
Shop. It uses in-house produced DRI and Imported scrap as raw material.
The raw material is melted in 4 High Capacity Induction Furnaces leading to the
production of Molten Metal, known as Liquid Metal (LM) in the industry.
The Liquid Metal is then Refined in Laddle Refining furnaces to get rid of
unwanted impurities in the liquid steel and attain the desired chemical
composition.
This is then cast in blocks called billets and blooms in our automatically
controlled continuous casting machine.
Specifications
Producing billets and blooms as per BIS 1948 standards in the following sizes
Cross Section Sizes
- 100 X 100
- 130 X 130
- 160 X 160
- 200 X 200
- 200 X 250
Length
- 6 m
Hot
Rolling – TMT
Capacity: 40 Tons/Hr or 200,000Tons P.a.
Their hot rolling mill is a tribute of their design success.
The Re-bar mill in Varrsana consists of a state of the art re-heat furnace and
17 continuous automatic rolling stands.
The rolling mill is designed to run at high metal speeds enabling to achieve
high cost-efficiencies. With the ability to operate at a metal running speed of
25m/s we boast of being among the most high speed mills and efficient operators
in the country.The “Varrsana TMT” brand is now a household brand in Gujarat and
slowly expanding to the rest of the country, Varrsana TMT is made as per Fe415
standards in the following cross section diameters
8, 10, 12, 16, 20, 25, 28, 32
Hot
Rolling - Heavy Structure Mill
Capacity: 180,000 Tons/Month
The heavy structure Plant is designed like the TMT mill with
fully automatic stands. This will allow us to make heavy parallel flange beams
and other heavy steel structures. Proximity to key Kandla and Mundra ports make
exports lucrative allowing to cater to the growing demand in the Middle East.
They will manufacture the following heavy structures.
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Angles |
Channels |
Beams Sizes |
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150 X 150 |
200 |
300 |
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200 X 200 |
300 |
400 |
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250 X 250 |
400 |
500 |
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- |
600 |
Subject supplies telecommunication towers with both tubular
and angular designs. The towers manufactured by the company can survive the
worst environment. They last long in the extreme cold or hot atmosphere.
Now-a-days, duel use towers are gaining popularity. Planning problems and
public objections in installing new towers are the issues that have made them
more popular.
The clientele of the company is enriched with various clients from the
broadcast, microwave, cellular and other industries. Varrsana has been
manufacturing the following types of towers.
- Microwave Tower
- Roof Top Tower
- Ground based Towers
- Narrow base Tower
- Angular Tower
- Tubular Tower
Subject manufactures towers for electricity transmission and
supply. Utmost care is taken to achieve the highest level of precision and
strength. The transmission towers are designed as per the maximum loading criteria.
Lattice Type Structures:
Subject manufactures different types of Lattice Towers
including large multi user switch structures, slender single user options etc.
Lattices provide more flexible solution than monopoles. Easy fixation of
additional antennas, flexibility in the feeder installation, and easy access to
the telecommunications equipment are some of the advantages that Lattice type
structures have.
Pipe Type Structures:
The different types of transmission towers manufactured by
Varrsana are:
- High voltage transmission towers
- Substation towers /Structures
- Switch gear mounting structures
- Railway power line structures
The company conducts various tests to check the strength and toughness of all
the towers manufactured. Only after critical testing, production is started on
large scale for supplying to the clients. Subject has collaboration with
designers of international repute to design towers as per international
standards.
Through customized structural analysis and CAD techniques, the experts in
Varrsana develop the strongest and cost-effective structures to meet the
requirements of the clients. Towers can be designed as per specifications and
requirements demanded by the customers.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.94 |
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UK Pound |
1 |
Rs.78.81 |
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Euro |
1 |
Rs.63.05 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
2 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
- |
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--LEVERAGE |
1~10 |
- |
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--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
2 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
NO |
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TOTAL |
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8 |
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. |
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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