MIRA
INFORM REPORT
|
Report Date : |
19.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
HAZIRA PLATE LIMITED |
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Registered Office : |
27 KM Surat, Hazira Road, Hazira, Surat – 394270, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.03.2005 |
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Com. Reg. No.: |
045786 |
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CIN No.: [Company
Identification No.] |
U27100GJ2005FLC045786 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTH01141A |
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PAN No.: [Permanent
Account No.] |
AABCH5434M |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
To set up steel plant for producing steel plates, slabs, blooms and
billets, hot rolled steels, cold rolled steels, alloy steels and coated steel
products. |
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 8100000 |
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Status : |
New Company |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a new company promoted by Essar Group. The company had not
started commercial Operations as per its last available financials and had incurred
some initial losses. However, in view of strong capital base, the loss does
not seem to be effecting the company. Trade relations are fair. Payments are
reported as slow but correct. In view of strong promoters, the company can be considered good for
normal business dealings. |
LOCATIONS
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Registered Office : |
27 KM Surat, Hazira Road, Hazira, Surat – 394270, Gujarat, India |
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Tel. No.: |
91-261-2872400 |
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Fax No.: |
91-261-2872796 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Prashant Ruia |
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Designation : |
Director |
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Address : |
Bin Hamooda Village, Village No.17, Jumeriah, Dunai, UAE |
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Name : |
Mr. J. K. Tandon |
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Designation : |
Director |
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Address : |
MON Repos, 201 –B, 45 HK Baba Road, Land’s end, Bandra (West), Mumbai
– 400050, Maharashtra, India |
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Name : |
Mr. Girish K. Sathe |
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Designation : |
Director |
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Address : |
2, Neelkanth Deep, Bhaskar Colony, Naupada, Thane (West), Mumbai,
Maharashtra, India |
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Name : |
Mr. Shashikant Ruia |
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Designation : |
Director |
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Address : |
Ruia House, 67A, Walkeshwar Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
23.12.1943 |
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Date of Appointment : |
10.03.2006 |
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Email : |
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Name : |
Mr. jatinder Mehra |
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Designation : |
Director |
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Address : |
C-1/36, Safdurjang Development Area, New Delhi – 110016, India |
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Date of Birth/Age : |
03.03.1939 |
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Date of Appointment : |
10.03.2006 |
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Email : |
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Others Directorship : |
Steel Corporation of Gujarat Limited Director U27100GJ1975GAT002653 Essar Steel (Jharkhand) Limited Director U27100GJ2005PTC046272 Essar Steel (Orissa) Limited Director U27100GJ2005PLC046273 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(A son 22.06.2006)
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Names of Shareholders |
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No. of Shares |
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Girish Sathe |
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1 |
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Lalitkumar Periwal |
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1 |
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Prashantc Joshi |
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1 |
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Devdas Shetty |
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1 |
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Venu P. |
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1 |
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V. Ganesh |
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1 |
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V. Chowdhary |
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49994 |
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Essar Steel Holding Limited |
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49508410 |
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Total |
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49558410 |
(As on 31.03.2007)
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Category |
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Percentage |
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Foreign Holding (FIIs, FCs, FFIs, NRIs, OCBs, or Others) |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
To set up steel plant for producing steel plates, slabs, blooms and
billets, hot rolled steels, cold rolled steels, alloy steels and coated steel
products. |
GENERAL
INFORMATION
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Bankers : |
210 B Wing, Mittal Tower, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Banking
Relations : |
- |
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Financial Institutions : |
Asian Building, Ground Floor, 17, R Kamani Marg, Ballard Estate, Mumbai
– 400001, Maharashtra, India |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountant |
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Address : |
6th Floor, Express Towers, Nariman Point, Mumbai – 400021,
Maharashtra, India |
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Name : |
B P Jain and Company Chartered Accountant |
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Address : |
A-16, Everest Building, Tardeo, Mumbai – 400034, Maharashtra,
India |
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Holding Company : |
Essar Steel Holding Limited |
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Associates/Subsidiaries : |
Steel Corporation of Gujarat Limited U27100GJ1975GAT002653 Essar Steel (Jharkhand) Limited U27100GJ2005PTC046272 Essar Steel (Orissa) Limited U27100GJ2005PLC046273 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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165003790 |
Equity Shares |
Rs.10/- each |
Rs.1650.038
Millions |
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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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1650.038 |
0.500 |
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2] Share Application Money |
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0.000 |
495.084 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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(23.664) |
0.000 |
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NETWORTH |
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1626.374 |
495.584 |
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LOAN FUNDS |
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1] Secured Loans |
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1900.784 |
533.289 |
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2] Unsecured Loans |
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19.400 |
0.000 |
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TOTAL BORROWING |
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1920.184 |
533.289 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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3546.558 |
1028.873 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.108 |
0.000 |
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Capital work-in-progress |
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2560.155 |
768.391 |
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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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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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118.862 |
525.255 |
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Other Current Assets |
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0.000 |
0.018 |
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Loans & Advances |
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2.587 |
0.000 |
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Total
Current Assets |
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121.449 |
525.273 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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133.300 |
264.791 |
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Provisions |
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1.854 |
0.000 |
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Total
Current Liabilities |
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135.154 |
264.791 |
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Net Current Assets |
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986.295 |
260.482 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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3546.558 |
1028.873 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
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Sales Turnover |
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0.000 |
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Other Income |
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0.344 |
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Total Income |
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0.344 |
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Profit/(Loss) Before Tax |
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(23.550) |
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Provision for Taxation |
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0.115 |
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Profit/(Loss) After Tax |
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(23.665) |
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Expenditures : |
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Other Expenditure |
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23.894 |
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Total Expenditure |
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23.894 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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6879.36 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.00 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(19.37) |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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(0.01) |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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1.26 |
1.61 |
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Current Ratio (Current Asset/Current Liability) |
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0.90 |
1.98 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number of the company |
U27100GJ2005FLC045786 |
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Name of the
company |
HAZIRA PLATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
27 KM Surat, Hazira Road, Hazira, Surat – 394270, Gujarat, India |
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This form is for |
Modification of charge |
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Type of charge |
Immovable
Property |
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Particular of
charge holder |
Asian Building, Ground Floor, 17, R Kamani Marg, Ballard Estate,
Mumbai – 400001, Maharashtra, India |
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Nature of
instrument creating charge |
No Instrument was
executed. The company created mortgage by deposited title deeds with IDBI
Trusteeship Services Limited (Security Trustee) in respect of its immovable
Property situated at Hazira, Gujarat admeasuring 74638 sq. meters for
securing loans of Rs.115.000 Millions sanctioned by various lenders moreover
described in the Declaration and Undertaking dated 25.01.2008 attached. |
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Date of
instrument Creating the charge |
25.01.2008 |
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Amount secured by
the charge |
Rs.11500.000
Millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of
Interests: As per the agreement
dated March 1, 2006 as amended from time to time. Terms of
repayment: 28 equal
consecutive quarterly installment as set forth in the repayment schedule as
set forth in agreement dated March 01, 2006 as amended from time to time. Margin: As per the
agreement dated March 1, 2006 as amended from time to time. Extent and
Operation of the charge: The financial
facility interests, additional, liquidated damages, premier on prepayment,
cost and charges, expenses and other monies of whatsoever nature situated
under agreement dated March 01, 2006 as amended from time to time is secured
by first mortgage on all the company’s immovable properties moreover
described in schedule of he declaration and Undertaking attached. |
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Particulars of
the property charged |
Immovable
property admeasuring 74638 sq. meters moreover described in the scheduled
attached to the declarations and undertaking dated 25.01.2008. |
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Particulars of
the present modification |
Charge created on
1st March 2006 and modified on 22nd February, 2007 has
been subsequently modified on 25th January, 2008. Equitable
mortgage by deposit of title deeds with the security trustee in respect of
immovable property situated at Hazira, Gujarat moreover described in
declaration and Undertaking dated January 25, 2008. |
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 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.43.23 |
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UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.63.80 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
8 |
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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 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
42 |
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 |
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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 |
|
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 |
|