MIRA
INFORM REPORT
|
Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NABHA STEELS LIMITED |
|
|
|
|
Registered Office : |
Nabha Furnace Road, Opposite Octroi Post, Sirhind Side, Mandi Gobindgarh
– 147 301, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
31.08.1989 |
|
|
|
|
Com. Reg. No.: |
16-9658 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27106PB1989PLC009658 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PTLN10191G / PTLN10578B |
|
|
|
|
Legal Form : |
A closely held public limited liability company |
|
|
|
|
Line of Business : |
Manufacturer of Raw Material used for Rolling Mills. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 210000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and reputed company having
satisfactory track. Trade relations are fair. Business is active. Payments
are reported as usually made as per commitments. The company can be considered good for narmal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Surendra |
|
Designation : |
Accountant |
|
Date : |
02.12.20087 |
LOCATIONS
|
Registered Office/Factory : |
Nabha Furnace Road, Opposite Octroi Post, Sirhind Side, Mandi
Gobindgarh – 147 301, Punjab, India
|
|
Tel. No.: |
91-1765-255165 / 250048 / 256735 |
|
Mobile No.: |
91-9814015320 |
|
Fax No.: |
91-1765-255498 / 255165 |
|
E-Mail : |
|
|
Area : |
35000 Sq. ft. |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Om Parkash Goyal |
|
Designation : |
Director |
|
Address : |
Nabha House, Shastri Nagar, Mandi Gobindgarh – 147301, Punjab, India |
|
Date of Birth/Age : |
25.06.1937 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
31.08.1989 |
|
|
|
|
Name : |
Mr. Laven Goyal |
|
Designation : |
Director |
|
Address : |
Nabha House, Shastri Nagar, Mandi Gobindgarh – 147301, Punjab, India |
|
Date of Birth/Age : |
04.08.1968 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
31.08.1989 |
|
|
|
|
Name : |
Mr. Ajay Goyal |
|
Designation : |
Director |
|
Address : |
Nabha House, Shastri Nagar, Mandi Gobindgarh – 147301, Punjab, India |
|
Date of Birth/Age : |
13.03.1966 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
31.08.1989 |
|
|
|
|
Name : |
Mr. Sanjay Goyal |
|
Designation : |
Director |
|
Address : |
Nabha House, Shastri Nagar, Mandi Gobindgarh – 147301, Punjab, India |
|
Date of Birth/Age : |
29.03.1970 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
17.09.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2008)
|
Names of Shareholders |
No. of Shares |
|
Om Parkash Goyal, HUF |
55000 |
|
Om Parkash Goyal |
145010 |
|
Laven Goyal |
39990 |
|
Ajay Goyal |
39990 |
|
Sanjay Goyal |
39980 |
|
Sita Devi Goyal |
80000 |
|
Jenis Goyal |
10 |
|
Madhu Goyal |
10 |
|
Laven Goyal HUF |
10 |
|
Ajay Goyal HUF |
10 |
|
Sonali Goyal |
10 |
|
Sanjay Goyal HUF |
10 |
|
|
|
|
Total |
400030 |
Equity Share Breakup (Percentage of Total Equity)
(As on 30.09.2008)
|
Category |
Percentage |
|
Directors or relatives of directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Raw Material used for Rolling Mills. |
|
|
|
|
Products : |
Steel Ingots |
|
|
|
|
Terms : |
|
|
Selling : |
Credit (30 days / 60 days / 90 days) |
|
|
|
|
Purchasing : |
Cash and Credit (30 days / 60 days / 90 days) |
PRODUCTION STATUS
(As on 31.03.2008)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Non – Alloy Steel Ingots |
MT |
50000 |
20000 |
GENERAL
INFORMATION
|
Customers : |
·
Wholesalers ·
Retailers |
||||||||||||
|
|
|
||||||||||||
|
No. of Employees : |
300 |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
Punjab and Sind
Bank Kukar Majra,
Mandi Gobindgarh |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Rajiv Goyal Chartered Accountants |
|
Address : |
SCO-50 (1st Floor, Leela Bhawan Complex, Patiala – 147 001,
Punjab, India |
|
|
|
|
Associates/Subsidiaries
: |
Pushpanjali
Steel Alloys Private Limited Address : Nabha Furnace
Road, Opposite Octroi Post, Sirhind Side, Mandi Gobindgarh – 147 301, Punjab,
India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
750000 |
Equity Shares |
Rs.10/- each |
Rs.7.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400030 |
Equity Shares |
Rs.10/- each |
Rs.4.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4.000 |
4.000 |
4.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
37.052 |
27.711 |
27.065 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
41.052 |
31.711 |
31.065 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19.703 |
8.631 |
8.113 |
|
|
2] Unsecured Loans |
20.948 |
3.817 |
8.036 |
|
|
TOTAL BORROWING |
40.651 |
12.448 |
16.149 |
|
|
DEFERRED TAX LIABILITIES |
4.759 |
5.076 |
5.527 |
|
|
|
|
|
|
|
|
TOTAL |
86.462 |
49.235 |
52.741 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
34.848 |
34.592 |
32.006 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.050 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
31.699
|
19.408 |
19.961 |
|
|
Sundry Debtors |
30.005
|
18.866 |
8.767 |
|
|
Cash & Bank Balances |
7.939
|
0.486 |
0.701 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
14.807
|
10.310 |
12.043 |
|
Total
Current Assets |
84.450
|
49.070 |
41.472 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
30.795
|
33.011 |
19.527 |
|
|
Provisions |
2.041
|
1.416 |
1.260 |
|
Total
Current Liabilities |
32.836
|
34.427 |
20.787 |
|
|
Net Current Assets |
51.614
|
14.643 |
20.685 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
86.462 |
49.235 |
52.741 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
506.923 |
401.834 |
424.240 |
|
|
Other Income |
10.854 |
1.129 |
1.700 |
|
|
Total Income |
517.777 |
402.963 |
425.940 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
16.313 |
2.421 |
6.243 |
|
|
Provision for Taxation |
5.513 |
0.863 |
2.018 |
|
|
Profit/(Loss) After Tax |
10.800 |
1.558 |
4.225 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
363.230 |
298.176 |
283.014 |
|
|
Purchases made for re-sale |
28.964 |
0.000 |
19.989 |
|
|
Consumption of stores and spares parts |
7.258 |
7.229 |
10.385 |
|
|
Increase/(Decrease) in Finished Goods |
(2.569) |
(1.636) |
3.137 |
|
|
Salaries, Wages, Bonus, etc. |
2.979 |
2.800 |
2.771 |
|
|
Managerial Remuneration |
1.296 |
1.296 |
1.056 |
|
|
Payment to Auditors |
0.052 |
0.052 |
0.037 |
|
|
Interest |
1.690 |
0.387 |
0.880 |
|
|
Insurance Expenses |
0.497 |
0.496 |
0.479 |
|
|
Power & Fuel |
86.878 |
83.139 |
89.681 |
|
|
Depreciation & Amortization |
2.207 |
2.173 |
2.369 |
|
|
Other Expenditure |
8.982 |
6.430 |
5.899 |
|
Total Expenditure |
501.464 |
400.542 |
419.697 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
2.09
|
0.39 |
0.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.22
|
0.60 |
1.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.67
|
2.89 |
8.50 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.08 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.79
|
1.48 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.57
|
1.43 |
1.99 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
·
Modern Steels Limited, Mandi
Gobindgarh, Punjab
Fixed Assets
·
Land and Site Development
·
Building
·
Roads
·
Plant and Machinery
·
Pollution control Equipment
·
Furniture and Fixtures
·
Office Equipment
·
Vehicles
Form No. 8
|
Name of the company |
NABHA STEELS LIMITED |
|
Presented By |
Mr. Ajay Goyal,
Director |
|
1) Date and description of instrument creating the change |
Hypothecation
Agreement for Dated 14.03.1992 for Bank Guarantee for Rs.0.600 million. Modified on
11.08.1194 for Rs.0.300 million Modified on 21.06.2003
for Rs.0.300 million |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.0.600 million |
|
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
Borrowers of stock of Iron and Steel whether raw material, stock in process
of manufacture and all articles manufactured there from which now or which
may hereafter from time to time during the currency or Borrower’s godowns or
premises at Mandi Gobindgarh |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest
Nil repayable on demand, Margin 100%, extent of operation 100% |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab and Sind
Bank, Kukar Majra, Mandi Gobindgarh |
|
6) Date and brief description of instrument modifying the charge |
Hypothecation
Agreement dated 08.02.2005 |
|
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. |
Equitable
Mortgage Property vide Vasika No. 3930 for 30 Kanal Situated at Village
Harbasnpura, Near Octroi Post, Sirhind Side, Mandi Gobindgarh. Other terms and
conditions shall remain the same. |
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.50.52 |
|
UK Pound |
1 |
Rs.75.08 |
|
Euro |
1 |
Rs.63.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 |
|