MIRA
INFORM REPORT
|
Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HANS ISPAT LIMITED |
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Registered Office : |
123/528-A-Factory Area, Fazalganj, Kanpur, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.11.1991 |
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Com. Reg. No.: |
20-13695 |
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CIN No.: [Company
Identification No.] |
U51109UP1991PLC013695 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTH00656F |
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PAN No.: [Permanent
Account No.] |
AABCH2447Q |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer and trader of Mild
Steel Product |
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 |
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Maximum Credit Limit : |
USD 740000 |
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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 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. |
LOCATIONS
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Registered Office : |
123/528-A-Factory Area, Fazalganj, Kanpur, Uttar Pradesh, India |
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E-Mail : |
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Website : |
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Central
Sales Office : |
901, Alap B, 9th
Floor, Limda Chowk, Rajkot - 360 001 |
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Tel. No.: |
91-281-304436/37 |
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Fax No.: |
91-281-304435 |
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Factory : |
S. No. 9/2, 13, Village Bhudarmora, Anjar, Gujarat, India |
DIRECTORS
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Name : |
Mr. Vijay Kant Kumar |
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Designation : |
Director |
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Address : |
F-1/II Classic Apartment, 113/4 Swaroop Nagar, Kanpur – 208005, Uttar
Pradesh, India |
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Date of Birth/Age : |
06.01.1959 |
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Date of Appointment : |
12.11.1991 |
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Name : |
Mr. Rajeev Kant Kumar |
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Designation : |
Director |
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Address : |
F-1/II Classic Apartment, 113/4 Swaroop Nagar, Kanpur – 208005, Uttar
Pradesh, India |
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Date of Birth/Age : |
03.11.1965 |
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Date of Appointment : |
20.05.2005 |
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Name : |
Mr. Sajid Mian Nasir |
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Designation : |
Director |
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Address : |
786-1, Yogendar Pur Muzaffar Nagar, Uttar Pradesh, India |
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Date of Birth/Age : |
25.01.1958 |
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Date of Appointment : |
16.04.2005 |
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Name : |
Mr. Hamid Mustafa |
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Designation : |
Director |
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Address : |
786-1, Yogendar Pur Muzaffar Nagar, Uttar Pradesh, India |
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Date of Birth/Age : |
29.12.1965 |
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Date of Appointment : |
16.04.2005 |
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Name : |
Mr. Sameer Gupta |
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Designation : |
Director |
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Address : |
19/49, Punjabi Bagh, New Delhi – 110026, India |
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Date of Birth/Age : |
11.12.1966 |
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Date of Appointment : |
25.12.2007 |
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Name : |
Mr. Kamal Goel |
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Designation : |
Director |
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Address : |
M-12, Greater Kailash – I, New Delhi – 110048, India |
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Date of Birth/Age : |
22.02.1966 |
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Date of Appointment : |
25.12.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Vijay Kant Kumar |
|
3500 |
|
Ajay Kant Kumar |
|
3200 |
|
Rajeev Kant Kumar |
|
3200 |
|
Hans Raj Kumar |
|
100 |
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Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Directors or relatives of directors |
|
75.31 |
|
Other |
|
24.69 |
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Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and trader of Mild
Steel Product |
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Brand : |
“HANS” |
GENERAL
INFORMATION
|
Bankers : |
Bank of Baroda Plot No. 322, Sector 12/B, Gandhidham – 370201, Gujarat, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
I. H. Desai and
Associates Chartered Accountants Office No. 13 and 14, Shree Ganesh Building, Plot No. 592, Ward 12/C,
Gandhidham – 370201, Gujarat, India A R Maheshwari
and Company Chartered Accountants 24/56, Clinic Building, 2nd Floor, Birhama Road, Kanpur –
208001, Uttar Pradesh, India Tel No.: 91-512-2319621 / 2318011 Fax No.: 91-512-2318011 Email : aditya_raj74956@rediffmail.com
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6,443,760 |
Equity Shares |
Rs. 10/- each |
Rs. 64.438
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 |
64.438 |
50.057 |
0.100 |
|
|
2] Share Application Money |
30.310 |
63.410 |
0.000 |
|
|
3] Reserves & Surplus |
90.065 |
45.286 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
184.813 |
158.753 |
0.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
553.449 |
428.439 |
0.000 |
|
|
2] Unsecured Loans |
10.693 |
0.020 |
0.090 |
|
|
TOTAL BORROWING |
564.142 |
428.459 |
0.090 |
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|
DEFERRED TAX LIABILITIES |
19.528 |
6.965 |
0.000 |
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|
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TOTAL |
768.483 |
594.177 |
0.190 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
421.086 |
413.531 |
0.000 |
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Capital work-in-progress |
0.000 |
3.253 |
0.000 |
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INVESTMENT |
6.533 |
4.453 |
0.000 |
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|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
289.685
|
152.715 |
0.000 |
|
|
Sundry Debtors |
67.219
|
13.287 |
0.000 |
|
|
Cash & Bank Balances |
40.568
|
50.945 |
0.090 |
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Other Current Assets |
63.916
|
21.767 |
0.000 |
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Loans & Advances |
33.873
|
41.091 |
0.000 |
|
Total
Current Assets |
495.261
|
279.805 |
0.090 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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|
Current Liabilities |
112.567
|
106.784 |
0.000 |
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Provisions |
41.830
|
0.081 |
0.008 |
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Total
Current Liabilities |
154.397
|
106.865 |
0.008 |
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Net Current Assets |
340.864
|
172.940 |
0.082 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.108 |
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TOTAL |
68.483 |
594.177 |
0.190 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
1078.376 |
61.607 |
|
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Other Income |
|
112.040 |
0.063 |
|
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Total Income |
|
1190.416 |
61.670 |
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Profit/(Loss) Before Tax |
|
10.054 |
0.959 |
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Provision for Taxation |
|
13.995 |
7.045 |
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|
Profit/(Loss) After Tax |
|
[3.941] |
[6.086] |
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Expenditures : |
|
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Raw Material Consumed |
|
680.514 |
52.855 |
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Consumption of stores and spares parts |
|
75.403 |
2.313 |
|
|
Increase/(Decrease) in Finished Goods |
|
[66.721] |
[64.009] |
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Salaries, Wages, Bonus, etc. |
|
18.531 |
3.014 |
|
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Payment to Auditors |
|
0.028 |
0.017 |
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Interest |
|
54.725 |
10.190 |
|
|
Insurance Expenses |
|
1.283 |
0.015 |
|
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Power & Fuel |
|
155.935 |
16.810 |
|
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Depreciation & Amortization |
|
19.574 |
4.595 |
|
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Other Expenditure |
|
241.091 |
34.911 |
|
Total Expenditure |
|
1180.363 |
60.711 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
[0.33]
|
[9.87] |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
0.93
|
1.56 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.10
|
0.14 |
-- |
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Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.01 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.89
|
3.37 |
0.98 |
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|
|
Current Ratio (Current Asset/Current Liability) |
|
3.21
|
2.62 |
11.25 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
80012812 |
|
Corporate
identity number of the company |
U51109UP1991PLC013695 |
|
Name of the
company |
HANS ISPAT LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
123/528-A-Factory Area, Fazalganj, Kanpur, Uttar Pradesh |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Bank of Baroda Plot No. 322, Sector 12/B, Gandhidham – 370201, Gujarat, India |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
instrument of hypothecation of stock, goods |
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Date of
instrument Creating the charge |
11.07.2007 |
|
Amount secured by
the charge |
Rs. 410.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Additional 2 %
over regular applicable rate for CC Limit Terms of
Repayment Repayable on
demand Margin 25 % on Stock and
40 % on Book debts Extent and
Operation of the charge The charge shall operate
to cover the principal amount together with interest, additional interest,
expenses and other moneys payable by the company to the bank. Further the
charge shall operate as first and exclusive charge in favour of Bank of
Baroda for working capital facility of Rs. 250 Millions and as second pari
passu charge with State Bank of Idnia, Ahmedabad branch in respect of term
loan of Rs. 150 Millions granted by the Bank of Baroda, Gandhidhan |
|
Short particulars
of the property charged |
Exclusive 1st
charge by way of Hypothecation on Stock present and future including without
prejudice to the forgoing words stock of Raw Materials, Work in progress,
semi finished goods, finished goods such as sponge iron, steel, ingot, TMT
bars, billets, packing materials an store. All present and future book debts,
outstanding, receivable, which are now due and owing or which may hereafter
during the continuance of security become due. Hypothecation of plant and
machinery. |
|
Date of latest
modification prior to the present modification |
19.10.2006 |
|
Particulars of
the present modification |
The amount
secured by the Charge in enhanced from Rs. 400.000 Millions to Rs. 410.000
Millions as the Bank has granted additional Cash Credit Facility of Rs. 10.000 Millions |
AS PER WEBSITE
HANS GROUP OF INDUSTRIES :-
Based at Kanpur (U.P.), India is an Industrial enterprise
with its 03 constituent companies i.e. Hans Casting Private Limited, Hans
metals Private Limited & Maitri Steel Limited
All of the above companies are engaged in the business of the manufacturing and
trading of Mild Steel Product under the brand name “HANS’. The group was
initiated in the year 1988 by its chairman Mr. Hans Raj Kumar having a wide and
deep experience in the field Of Steel, Timber and other building materials. It
is being managed by the team of his three young and energetic sons and belongs
solely to this joint family.
Establishment:-
The first unit of the group i.e. M/s Hans castings Private
Limited Was installed in the year 1989 for the manufacturing of M.S. Ingots
with the help of an Induction furnace Plant of GEC make. It started with an
annual turnover of IN rs.50.00 millions only and the group turnover by this
time in the year 2005-06 has reached undo IN Rs.1,000.00 millions indicating a
growth in almost 20 folds.
Barnala Group of Industries is working for more than 25
years and the group turnover have reached Rs.1200.00 millions as
31-03-2006.They earned a sound goodwill for the quality control measures and
performance of their products.
History
Based at Muzaffar Nagar (U.P), India is an Instrial enterprise with its 04
constituent companies i.e. Barnala steel industries Limited, M.Q. Steel
Private Limited, R.A. Castings Private Limited & Aswad Steels & Alloys
Private Limited The group has been founded
By Late Mohd. Quaiser, a most reputed and respectable name
in the field of secondary steel sector in India. All of the above companies are
engaged in the business of the manufacturing and trading of Mild Steel
Products. The group has marked its presence globally having a wide and deep
experience in the field of marketing & export of M. S. Re-rolled product
name “BARNALA”. It is being managed by the team of two young and energetic
brothers i.e. Mr. Hamid Mustatafa & Mr. Sajid Mian Nasir and belongs solely
to this joint family.
Management
Team
Mr. SAJID MAIN NASIR age 46 Year ,founder of Barnala
Group of industries is a specialist of the manufacturing & quality control
of iron & steel products. He has been awarded by “UDYOG PATRA” Award at
national level.
Mr. HAMID MUSTAFA age 36 years, has a wide experience in the
field of marketing & branding of the M.S. products & construction
industry.
Mr. VIJAY KANT KUMAR Age 46 years, Commerce graduate
with experience of about 25 Years in the line of Steel, Timber & Building
materials. Awarded by UDYOG PATRA AWARD in the year 1998 as well as the
“RASHTRIYA GAURAV AWARD” in the year 2003 as a self made entrepreneur and for
his business achievements.
Mr. RAJEEV KANT KUMAR, Age 39 Years, Commerce Graduate,
specialized experience in steel manufacturing and marketing for 15 years. Looks
after the marketing policies & Raw material procurements.
SISTER
CONCERN
HANS
CASTING PRIVATE LIMITED
Incorporated a unit at Bharwa Sumer
Pur, Distt Hamir Pur (UP) in the year 1989 for manufacturing of M.S.
Ingots.
HANS
METALS PRIVATE LIMITED
Incorporated in the year 1991 established a unit at Bharwa Sumer Pur, Distt
Hamir Pur (UP) in the year 1992 for the manufacturing of M.S. Re-rolled
Products. Currently engaged in the manufacturing of M.S. Bars (Round & CTD)
and M.S. Structurals with an annual capacity of 20000 M.T. Running on 1500 Kva
Power Connection. Having License for Marketing of Standard mark(ISI:1786 &
2062) from Bureau certification of ISO 9002 for the quality control and
procedural excellence.
MAITRI
STEELS LIMITED
Incorporated in the year 1991 established a unit at Vill Bhawani Pur, Mandhana,
Kanpur Nagar in the Year 1992 for the Manufacturing of M.S. Strips which
is further utilized as a raw material by the manufacturers of Rolling
Shutters and Conduit Pipes. Unit running on 3200 H.P. Marine Engines and an
efficient marketing network in 04 states.
BARNALA
STEEL INDUSTRIES LIMITED
Incorporated in the year 1992 established a unit at Muzaffar Nagar and engaged
in the manufacturing of M.S. bars.
M.Q
STEEL PRIVATE LIMITED
Is an induction Furnance Plant engaged in the manufacturing of M.S. Ingots.
R.A.
CASTINGS PRIVATE LIMITED
Is also an Induction furnace Plant engaged in the same activity?.
ASWAD
STEEL & ALLOYS PRIVATE LIMITED
Is also an induction Furnace plant working at Muzaffar Nagar.
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.39.66 |
|
UK Pound |
1 |
Rs.78.16 |
|
Euro |
1 |
Rs.58.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|