MIRA
INFORM REPORT
|
Report Date : |
25.08.2008 |
IDENTIFICATION DETAILS
|
Name : |
SONI ISPAT
LIMITED |
|
|
|
|
Formerly Known As : |
SONI STRIPS
LIMITED |
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Registered Office : |
“Janak”, 11, New Palasia, 2nd Floor, Indore – 452001,
Madhya Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.01.1985 |
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Com. Reg. No.: |
10 - 2710 |
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CIN No.: [Company
Identification No.] |
U27105MP1985PLC002710 |
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|
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
BPLS05340G |
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PAN No.: [Permanent
Account No.] |
AAICS2617L |
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Legal Form : |
A Closely Held Public
Limited Liability Company |
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Line of Business : |
Manufacturers of
Stainless Steel, Alloys Steel and Mild Steel |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
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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Maximum Credit Limit : |
USD 1600000 |
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Status : |
Good |
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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 fine track. Trade relations are fair. Business is active. General financial
position is good. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal
business dealings. |
LOCATIONS
|
Registered/ Marketing Office : |
“Janak”, 11, New
Palasia, 2nd Floor, Indore – 452001, Madhya Pradesh, India |
|
Tel. No.: |
91-731-4025533 /
5066042 / 5066149/ 4240100/ 4025522 |
|
Fax No.: |
91-731-4025555 /
5066149/ 40277777 |
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E-Mail : |
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Website : |
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Factory : |
805 A, Pithampur
Industrial Area, Sector – III, Pithampur – 454775, District Dhar, Madhya
Pradesh, India |
|
Tel. No.: |
91-7292-509817 /
501560 |
DIRECTORS
|
Name : |
Mr. Rajiv Lochan
Soni |
|
Designation : |
Managing Director
|
|
Address : |
19/2,
Manoramaganj, Indore – 452001, Madhya Pradesh, India |
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Date of Birth/Age : |
23.09.1956 |
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Date of Appointment : |
07.01.1985 |
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Name : |
Mr. Vijay Soni |
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Designation : |
Director |
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Address : |
19/2,
Manoramaganj, Indore – 452001, Madhya Pradesh, India |
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Date of Birth/Age : |
07.09.1958 |
|
Date of Appointment : |
07.01.1985 |
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|
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|
Name : |
Mr. Sharang Soni |
|
Designation : |
Director |
|
Address : |
19/2,
Manoramaganj, Indore – 452001, Madhya Pradesh, India |
|
Date of Birth/Age : |
18.06.1979 |
|
Date of Appointment : |
12.03.2004 |
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|
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|
Name : |
Mr. Suni Anand |
|
Designation : |
Director |
|
Address : |
Y. N. Road,
Indore |
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Date of Birth/Age : |
29.06.1958 |
|
Date of Appointment : |
12.03.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Category |
|
Percentage |
|
|
|
|
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Stainless Steel, Alloys Steel and Mild Steel. |
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Products : |
|
GENERAL INFORMATION
|
Bankers : |
Pithampur Branch,
Pithampur – 454775, Madhya Pradesh, India
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Banking Relations : |
Satisfactory |
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Auditors : |
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|
Name : |
S. S. Solanki and
Company Chartered Accountants |
|
Address : |
402, Trade House,
16/3, South Tukoganj, Indore – 452001, Madhya Pradesh, India |
|
Tel. No.: |
91-731-5065092 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000 |
Equity Shares |
Rs.100/- each |
Rs.200.000
millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000 |
Equity Shares |
Rs.100/- each |
Rs.200.000
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
200.000 |
200.000 |
142.525 |
|
|
2] Share Application Money |
0.000 |
0.000 |
15.225 |
|
|
3] Reserves & Surplus |
125.802 |
24.845 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
325.802 |
224.845 |
157.750 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
800.489 |
427.898 |
209.682 |
|
|
2] Unsecured Loans |
116.500 |
67.500 |
0.000 |
|
|
TOTAL BORROWING |
916.989 |
495.398 |
209.682 |
|
|
DEFERRED TAX LIABILITIES |
25.767 |
11.983 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1268.558 |
732.226 |
367.432 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
460.954 |
294.762 |
0.000 |
|
|
Capital work-in-progress |
0.000 |
63.732 |
315.779 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
862.399
|
454.802
|
0.000
|
|
|
Sundry Debtors |
269.303
|
112.526
|
0.000
|
|
|
Cash & Bank Balances |
82.696
|
45.850
|
32.788
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
93.379
|
26.228
|
13.265
|
|
Total Current Assets |
1307.777
|
639.406 |
46.053 |
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
500.185
|
265.687
|
12.402
|
|
|
Provisions |
0.000
|
0.000
|
0.000
|
|
Total Current Liabilities |
500.185
|
265.687 |
12.402 |
|
|
Net Current Assets |
807.592
|
373.719 |
33.651 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.012 |
0.013 |
0.014 |
|
|
Pre-op. Exp. Pending allocation on completion of pr. |
0.000 |
0.000 |
17.988 |
|
|
|
|
|
|
|
|
TOTAL |
1268.558 |
732.226 |
367.432 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
|
5276.550 |
1530.974 |
|
|
Other Income |
|
257.335 |
119.103 |
|
|
Total Income |
|
5533.885 |
1650.077 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
127.170 |
40.196 |
|
|
Provision for Taxation |
|
26.213 |
15.351 |
|
|
Profit/(Loss) After Tax |
|
100.957 |
24.845 |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
4352.997 |
1328.571 |
|
|
Consumption of stores and spares parts |
|
94.127 |
6.378 |
|
|
Salaries, Wages, Bonus, etc. |
|
34.771 |
7.933 |
|
|
Payment to Auditors |
|
0.028 |
0.025 |
|
|
Interest |
|
144.623 |
11.182 |
|
|
Insurance Expenses |
|
2.075 |
0.647 |
|
|
Power & Fuel |
|
185.541 |
30.437 |
|
|
Depreciation & Amortization |
|
31.148 |
14.018 |
|
|
Other Expenditure |
|
561.405 |
210.690 |
|
Total Expenditure |
|
5406.715 |
1609.881 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.82
|
1.51 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.41
|
2.44 |
NA |
|
|
|
|
|
|
|
Return on Total
Assets (PBT/Total Assets} |
(%) |
7.19
|
4.30 |
NA |
|
|
|
|
|
|
|
Return on
Investment (ROI) (PBT/Networth) |
|
0.39
|
2.38 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total
Liability/Networth) |
|
4.35
|
3.38 |
1.41 |
|
|
|
|
|
|
|
Current Ratio (Current
Asset/Current Liability) |
|
2.61
|
2.41 |
3.71 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or
modification of charges
|
Name of the
company |
SONI ISPAT
LIMITED [FORMERLY SONI
STRIPS LIMITED] |
|
Presented By |
Shri. Vijay Soni,
Director |
|
Date and
description of instrument creating the change |
Agreement of Loan for overall limit Agreement of Hypothecation
of goods and assets and Agreement of pledge of goods dated 15.02.2005 |
|
Amount secured by
the charge/amount owing on the securities of charge |
Rs.22.500
millions |
|
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 |
Land &
Building located at 805 A, Sector III, Pithampur Industrial Area, Pithampur and
Plant and Machinery installed / erected thereon ranking pari passu basis with
other term lenders. |
|
Gist of the terms
and conditions and extent and operation of the charge. |
As per agreement
of loan for overall limit, Agreement of Hypothecation of goods and assets and
agreement of pledge of goods dated 15.02.2005 |
|
Name and Address
and description of the person entitled to the charge. |
State Bank of
Bikaner and Jaipur Sanyogitaganj,
Murai Mohalla, Indore |
|
Date and brief description of instrument
modifying the charge |
N.A. |
|
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. |
N.A. |
|
Corporation identity number or foreign
company registrations number of the company
|
U27105MP1985PLC002710 |
|
Name of the company |
SONI ISPAT LIMITED |
|
Address |
“Janak”, 11, New Palasia, Indore – 452001,
Madhya Pradesh, India |
|
This Form is for |
Modification of
charge |
|
Type of Charges |
Book Debts Movable Property Floating Charge |
|
Particular of the charge holder |
State Bank of Indore [Lead Bank] Pithampur Branch, Pithampur – 454775, Madhya
Pradesh, India E-mail : sbn3201@sbindore.co.in |
|
Nature or description of the instrument
creating charge |
Joint Deed of Hypothecation for Working
Capital Assistance Dated 25.06.2008 |
|
Date of the instrument creating charge |
25.06.2008 |
|
Amount Secure by the charge |
Rs.2225.000 millions |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
Rate of Interests: Interests shall be charged at such rate or rates as may be determined
by the consortium member banks from time to time. Terms of repayment: Working Capital Limits are repayable on demand Margin: As per sanction by respective consortium member banks Extent and operation of the charge: First Charge on all the current assets of the borrower company in
favour of consortium members banks jointly and to each of them severally all
as more particularly described in joint Deed of Hypothecation Dated. |
|
Particulars of the property charged |
Hypothecation of all current assets of the borrower company viz stock
of raw materials, semi finished and finished goods, stores and spares not
relating to plant and machinery (Consumable Stores and spares), Bills
receivables and book debts and all movable both present and future as more
particularly described in second
schedule annexed to joint deed of hypothecation dated 25.06.2008. |
|
Particulars of the present modification |
The existing charge on current assets
extended further to cover the enhanced new sanction in working capital limits
(fund based and non fund based) by the consortium member banks which now
aggregates to Rs.0.022 Millions |
WEBSITE DETAILS
PROFILE:
Subject a semi integrated plant carrying out activities
of melting, continuous slab casting and plate rolling in special grades of
steel like stainless steel, alloy steel and mild steel. It is part of the
Metalman Group which has over 900 Employees and a turnover of over $125 Million
USD. Subject has an installed capacity of melting and rolling over 0.2 Million
Metric Tons of Special steel in flat and long products.
GREEN STEEL
Subject has set the benchmark for Steel production in central
India by not only adhering to current Environment norms but exceeding the
existing pollution norms. The company's corporate social responsibility program
believes in protecting the environment and giving back to the society.
A special team of engineers has been formulated to devise
and implement novel ways to conserve energy and water.
The company has installed state of the art air pollution
control equipment such as a Wet
Scrubber to reduce carbon emissions for the Induction Furnaces, Fume Extraction System-I for reduction
of fumes for manufacturing of mild steel and Fume Extraction System-II for manufacturing of stainless steel at
our plant.
MATERIALS
Melting
Scrap:
- Stainless Steel Scrap
- Copper Scrap
- Cupro Nickel Scrap
- Ni- Hard Scrap
- HMS 1 & 2 Scrap
Ferro
Alloys:
- High Carbon Ferro Manganese
- Low Carbon Ferro Manganese
- High Carbon Silico Manganese
- Medium Carbon Silico Manganese
- Low Carbon Silico Manganese
- Ferro Silicon
- High Carbon Ferro Chrome
- Low Carbon Ferro Chrome
- Ferro Molybdenum
- Ferro Titanium
Fluxes:
- Lime
- Fired Dolomite
- Flourspar
- Casting Powder
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.43.38 |
|
UK Pound |
1 |
Rs.81.34 |
|
Euro |
1 |
Rs.64.55 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
65 |
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 |
|
