MIRA
INFORM REPORT
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Report Date : |
25.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHREE PRECOATED STEELS LIMITED |
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Registered Office : |
“Citi Mall”, Link Road, Andheri (West), Mumbai 400053, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.03.1985 |
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Com. Reg. No.: |
11 – 35659 |
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CIN No.: [Company
Identification No.] |
L27104MH1985PLC035659 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS10846D / PNES08940B / MUMS40747A |
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PAN No.: [Permanent
Account No.] |
AAACS7866F |
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Legal Form : |
Public limited liability company.
The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of Pre-Coated Steel Strips / Aluminium Strips, which are Cold, Rolled and Galvanised Steel Strips. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 16647564 |
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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 company of Ajmera Group. Directors are reported as experienced, respectable, and resourceful real estate developers. Few years back, the company was a sick unit. The company’s sales and financials position has improved in recent past. It’s payments position has also improved. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
“Citi Mall”, Link Road, Andheri (West), Mumbai 400058, Maharashtra, India |
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Tel. No.: |
91-22-26366764/1584/2729/56984000 |
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Fax No.: |
91-22-26325902 |
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E-Mail : |
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Website : |
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Plant / Marketing Office/ Factory: |
Gate No. 740, Pune – Nagar Road, Taluka Shirur, Sanaswadi, Pune – 412 208, Maharashtra |
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Tel. No.: |
91-2137-252102 / 252333 / 252322/667878 |
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Fax No.: |
91-2137-252321 |
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E-Mail : |
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Website : |
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Branches : |
Located at : · Ahmedabad, Gujarat · Bangalore, Karnataka · New Delhi, India · Mumbai, India |
DIRECTORS
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Name : |
Mr. Chhotalal S. Ajmera |
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Designation : |
Chairman and Managing Director |
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Date of Birth: |
09.09.1937 |
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Qualification : |
Higher Secondary Education |
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Experience : |
46 Years |
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Date of Appointment : |
01.10.1999 |
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Name : |
Mr. Rajnikant S. Ajmera |
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Designation : |
Managing Director |
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Date of Birth/Age : |
06.03.1953 |
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Qualification : |
Diploma in Civil Engineering |
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Experience : |
31 years |
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Date of Appointment : |
01.10.1999 |
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Name : |
Mr. Jagdish J. Doshi |
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Designation : |
Director |
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Date of Birth: |
26.02.1931 |
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Qualification : |
M. S. (L L Linois, D.I.C. (London), B.E. (Hons) Bombay, P. Eng. (Ontario, Canada), Consulting Engineer |
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Experience : |
49 Years |
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Date of Appointment : |
20.01.1992 |
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Name : |
Mr. Ambalal C. Patel |
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Designation : |
Director |
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Date of Birth: |
01.04.1944 |
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Qualification : |
Bechelor of Engineering (Metallurgy) |
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Experience : |
31 Years |
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Date of Appointment : |
05.09.2003 |
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Name : |
Mr. Ishwarlal S. Ajmera |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
30.10.1925 |
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Qualification : |
Higher Secondary Education |
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Experience : |
51 Years |
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Date of Appointment : |
20.01.1992 |
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Name : |
Mr. M. Sivaramakrishnan |
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Designation : |
Director (Technical) |
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Date of Birth: |
28th June, 1938 |
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Qualification: |
B.E. (Hon’s) in Mechanical Engineering |
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Name : |
Mr. Inderpal S. Kalra |
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Designation : |
Director – Nominee (IDBI) |
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Other Directorships:- |
· Super Stainless and Hi Alloys Limited · Four Seasons Marine and Air Services Limited · Ajmera Steels Strips Limited · Gujarat Fun World Limited · Shree Ram Estates Limited · Panchmahal Steels Limited · Hester Pharmaceuticals Limited · Gujarat Setco Clutch Limited · Hester Pharmaceuticals Limited |
KEY EXECUTIVES
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Name: |
Mr. Suraj Vishwakarma |
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Designation: |
Company Secretary |
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Name: |
Mr. Nilesh Jain |
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Designation: |
Company Secretary |
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Name: |
Mr. O. P. Gandhi |
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Designation: |
Chief Finance Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and Its Group |
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Individual Huf |
61229987 |
51.76 |
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11784336 |
9.96 |
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Institutions |
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Mutual Funds |
537441 |
0.00 |
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Venture Capital Funds |
12002 |
0.00 |
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Foreign Institutions Invest |
15882343 |
13.42 |
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Non -
Institutions |
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Bodies Corporate |
4018677 |
3.39 |
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Individual Holding |
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I) Up to Rs.0.100 Million |
3729768 |
3.15 |
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II) above Rs.0.100 Million |
20941282 |
17.70 |
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Any Other |
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NRI |
147571 |
24.37 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Pre-Coated Steel Strips / Aluminium Strips, which are Cold, Rolled and Galvanised Steel Strips. |
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Products : |
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Brand Names : |
· “Metacolor” · “Metagalva” · “Metacor” |
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Exports : |
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Countries : |
· Europe · Middle East · Far East · Certain African Countries. |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Actual
Production |
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Cold Rolled & SPRM Coils |
MT |
590000 |
323972 |
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Continuous Galvanising Line / GP Line |
MT |
450000 |
308436 |
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Colour Coating
Line (a) Galvanised Plain Colour Coated Coils |
MT |
390000 |
120807 |
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(b) Aluminium
Colour Coated Coils |
MT |
- |
- |
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Profiling
Line/Cut to Length line |
MT |
10000 |
10156 |
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M. Sq. |
250000 |
- |
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Galvanised Plain/Aluminum Colour Coated Trapezodil Sheets |
MT |
- |
10085 |
GENERAL
INFORMATION
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Customers : |
· Agartala Power Project · Alembic Chemicals · Asea Brown Boveri · Astra Constructions · Bharat Heavy Electricals Limited · Bhilai Power Project · Birla Tyres · Blue Star · Cartaire Equipments · Continental Coffee Limited · Core Biotech · Coutalds Coating India Limited · Delphi Motors · Doon Valley Rice Limited · Enexco Consultants Limited · Enron Power Project · Goodyear · Haldia Power Project · Mark Auto Industries · Kanpur Stadium · Kelvinator · Hindustan Lever · Rana Polycot Limited · Reliance Industries Limited · Shriram Pistons and Rings Limited · Volvo Space Tech · Whirlpool · Wipro Lighting Limited · National Sports Stadium, Pune |
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No. of Employees : |
1200 |
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Bankers : |
· Bank of Baroda · Allahabad Bank · Dena Bank · The Federal Bank Limited · Abu Dhabi Commercial Bank Limited ·
State Bank
of India ·
State Bank
of Patiala ·
State Bank
of Indore · IDBI Limited · HDFC Bank Limited · Union Bank of India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V. Parekh and Associates Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
· Ajmera Cement Private Limited · Ajmera Housing Corporation · Ajmera Housing Corporation, Bangalore · Pramukh Development Corporation · Anik Development Corporation · Vijay Nagar Corporation · Broadllyne Infoservices Private Limited · Bombay Freezoo Private Limited · Ajmera water ‘N’ Amusement Park Private Limited · Rushabh Investments Private Limited · A. G. Estate Private Limited · Ajmera Steel Stripes Limited · Jolly Brothers Private Limited · Kunnuj Investment Private Limited · Yogi Nagar Vasahat Private Limited · Nilkanth Tech Park Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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135000000 |
Equity shares |
Rs.10/- each |
Rs.1350.000 millions |
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15000000 |
Preference Shares |
Rs.10/- each |
Rs.150.000 millions |
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Total |
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Rs.1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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76616250 |
Equity shares |
Rs.10/- each |
Rs.766.163 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
766.163 |
766.163 |
510.775 |
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2] Share Application Money |
416.667 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2979.061 |
1031.192 |
626.558 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4161.891 |
1797.355 |
1137.333 |
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LOAN FUNDS |
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1] Secured Loans |
4028.372 |
2396.279 |
923.970 |
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2] Unsecured Loans |
2571.390 |
1910.333 |
1476.973 |
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TOTAL BORROWING |
6599.762 |
4306.612 |
2400.943 |
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DEFERRED TAX LIABILITIES |
140.744 |
37.612 |
0.000 |
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TOTAL |
10902.397 |
6141.579 |
3538.276 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4616.859 |
3535.429 |
1223.064 |
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Capital work-in-progress |
673.504 |
1029.835 |
1352.448 |
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INVESTMENT |
416.490 |
0.000 |
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 |
5127.206 |
3061.299 |
2190.530 |
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Sundry Debtors |
2336.700 |
1150.522 |
293.069 |
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Cash & Bank Balances |
533.132 |
929.473 |
204.959 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
2346.675 |
1083.786 |
672.966 |
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Total
Current Assets |
10343.713
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6225.080 |
3361.524 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4619.437
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4588.446 |
2359.815 |
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Provisions |
528.732
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60.319 |
38.945 |
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Total
Current Liabilities |
5148.169
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4648.765 |
2398.760 |
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Net Current Assets |
5195.544
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1576.315 |
962.764 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10902.397 |
6141.579 |
3538.276 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
16774.598 |
9364.433 |
8043.622 |
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Other Income |
12.569 |
33.538 |
0.000 |
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Increase/(Decrease) in Stock |
268.255 |
258.463 |
0.000 |
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Total Income |
17055.422 |
9656.434 |
8043.622 |
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Profit/(Loss) Before Tax |
2518.662 |
211.886 |
324.531 |
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Provision for Taxation |
312.686 |
20.219 |
0.671 |
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Profit/(Loss) After Tax |
2205.976 |
191.667 |
323.860 |
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Export Value |
10453.437 |
6776.124 |
4817.877 |
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Imports : |
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Raw Materials |
5110.272 |
6239.672 |
0.000 |
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Stores & Spares |
19.841 |
25.788 |
0.000 |
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Capital Goods |
193.908 |
146.561 |
0.000 |
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Others |
0.000 |
0.000 |
4294.077 |
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Total Imports |
5324.021 |
6412.021 |
4294.077 |
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Expenditures : |
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Material Consumed |
10221.374 |
7396.076 |
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Construction & Other Cost |
1043.134 |
0.000 |
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Personnel Expenses |
174.045 |
130.723 |
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Other Manufacturing Expenses |
2178.561 |
1180.440 |
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Interest |
340.050 |
145.269 |
7719.091 |
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Excise Duty on stock of finished goods |
96.507 |
80.243 |
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Depreciation |
483.066 |
219.796 |
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Other Expenditure |
0.023 |
0.000 |
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Total Expenditure |
14536.760 |
9152.547 |
7719.091 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
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Sales Turnover |
3152.600 |
4342.600 |
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Other Income |
15.500 |
20.200 |
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Total Income |
3168.100 |
4362.800 |
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Total Expenditure |
2785.400 |
3266.200 |
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Operating Profit |
382.700 |
1096.600 |
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Interest |
107.100 |
155.600 |
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Gross Profit |
275.600 |
941.000 |
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Depreciation |
114.300 |
119.500 |
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Tax |
18.400 |
93.700 |
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Reported PAT |
142.900 |
727.800 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
12.93
|
1.98 |
4.03 |
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Net Profit Margin (PBT/Sales) |
(%) |
15.01
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2.26 |
4.03 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.83
|
2.17 |
7.08 |
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Return on Investment (ROI) (PBT/Networth) |
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0.60
|
0.12 |
0.28 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.82
|
4.98 |
4.22 |
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Current Ratio (Current Asset/Current Liability) |
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2.01
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1.34 |
1.40 |
LOCAL AGENCY
FURTHER INFORMATION
Profile :
Subject is a
Member of the US $ 300 million AJMERA GROUP OF COMPANIES. The group has
established itself as one of India's leading residential and commercial property
developers. The group also has strong presence in the fields of Cement,
Textiles, Printing, Information Technology and Entertainment Parks
Since its inception subject has
placed highest priority on producing and supplying best quality coated flat
steel products and has grown up as on the leading manufacturers. As a direct
corollary to its commitment to quality standards, subject has already been
accredited with the ISO 9001 Certificate.
Subject is the only Indian
Manufacturer having all the following facilities under one roof. Subject offers
wide color coating options on any metal surfaces even on stainless steel, which
is an achievement in the Indian Metal Coating Industry.
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Facility |
Product Description |
Brand Name |
Capacity (TPA) |
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Color Coating Line |
Pre-painted Galvanised Steel Coils and Sheets |
METACOLOR |
100000 |
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Galvanized Line |
Galvanized Steel Coils and Sheets |
METAGALVA |
180000 |
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CR Line |
Cold Rolled Steel Coil |
METACOR |
240000 |
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HR Pickled Line |
Hot Rolled Products |
- |
300000 |
AMALGAMATION
OF ANIK DEVELOPMENT CORPORATION PVT. LTD..(ADCPL) WITH THE COMPANY:
Anik Development Corporation Private Limited (ADCPL) has been amalgamated with
the company. The Scheme of Amalgamation was sanctioned by the Hon'ble High
Court of Judicature at Bombay vide Order dated 10th August, 2007. The Scheme
became effective on 6th September, 2007, the Appointed Date of the Scheme being
20th December, 2006.
Pursuant to the Scheme of Amalgamation, the company has
allotted 4,16,66,667 Equity Shares to the erstwhile shareholders of ADCPL on
19th September,2007 and subsequently made an application for listing and
Trading on the BSE and NSE. The BSE and NSE has granted the trading approval
for the aforesaid securities.
The amalgamation of ADCPL with the company is in line with global trends, to
achieve size, scale, integration and greater financial strength and
flexibility, in the interests of maximizing the overall shareholder value. The
amalgamation would also augment the company's status of being fully integrated
steel company with operations in construction.
FINANCIAL
RESULTS:
The company has, in the recent past, consolidated its position and strength as
a supplier of best Color Coated Steel Coils and sheets. This has been the
result of concerted and systematic efforts in several areas such as
restructuring, up gradation of technology, enhancement of operational
efficiency, bench marking of quality processes and rightsizing the workforce,
cost reduction measures, quality product development, aggressive marketing
efforts and branding. Continued focus on these measures coupled with the
economic upturn has resulted in sustaining the overall performance of the
company during the year under review.
During the Financial year 2006-07, the company has achieved the highest Sales
Turnover in the history of the company amounting to Rs.15350.000 Millions in
the steel division and Rs.2810.000 Millions in the real estate division.
Performance is the key factor for the growth of any organization.
Continuing the upward trend from the last three years, the company during the
current year under review, achieved all time record Production, Sales volume in
the Export markets, business growth and all round progress.
OPERATIONS:
During the year 2006-07, the production of Cold Rolled Coils
was 3,23,972 MT (last year 2,74,111 MT). In case of Galvanized Coils, the
production was 3,08,436 MT (last year 2,39,967 MT) and in case of Colour coated
coils the production was 1,20,870 MT (last year 82,406 MT) from the Colour
Coating Line-I and II.
The increase in production is mainly due to expansion units, the hard work of
their in-house technical team and the support of the Management Team in
successfully handling the new technologies and capacity creations ushered in by
the Phase I expansion facilities just concluded.
EXPANSION:
The earlier company's Phase I major expansion programme was successfully
commissioned in October 2006 with the worlds first near Infra Red Colour
Coating Technology.
The company has embarked on the Phase 2 of its expansion programme for
diversified high value products production and modernisation of its existing
units to realise higher productivity and inject new technologies keeping pace
with global standards for achieving the highest quality of finished
products.
To this effect, installation of HZ annealing furnaces and Skinpass mill to
produce cleaner quality cold rolled and skinpassed coils and installations for
production of ZincAluminum alloy coating to produce brand name Metalume product
(with the backing of TKS-CS, Germany) are planned. The modernisation program
will lift the cold rolling capacity further to cater to the diversified
products focused by the company. The Metalume brand will have a great market
acceptance both painted and unpainted.
The products are expected to boost the higher contribution levels of the
company's commercial operations.
Today the Company has become a high technology-oriented complex being the
largest producer of Colour Coated Steels in the Asian region.
MARKET:
Since the beginning of the Financial Year the company faced the onslaught of
the unexpected steep rise of input feed stock HR coil prices, which has given
the company an adverse impact in its product sale. The company has successfully
borne this price impact.
With the added capacity, technology innovations and product diversification,
the company is poised to capture domestic and export market in the new regions
besides its consolidated market share.
The company continued to export Colour Coated Steels, Galvanized Steels, and
Cold Rolled Steels Products and has expanded its market base, which has
resulted in 41% increase in the above products. The exports during the year
2006-07 in FOB value have been of Rs.10453.400 Millions as against Rs.6776.100
Millions for the previous year.
The sale of company's products in domestic market during the year 2006-07
was Rs.2248.900 Millions as against Rs.1628.100 Millions for the previous year
2005-06, thereby showing an increase of 38%. This increase was due to more
emphasis was placed on export front where the economic of scale and higher
market share could be achieved. The company is continuing its efforts to
accelerate the growth in domestic market.
FUTURE OUTLOOK:
·
STEEL
BUSINESS:
The new technologies and innovations all around have boosted the Company's image
internationally. With the backing of M/s. Thyssen Krupp Germany as technology
partner the company is expected to achieve the added thrust in the
international market.
Similarly the company is well geared to cater to domestic markets of
Colour-Coated Product with its completed expansion facilities.
They continue to be "Economic Value Adding" and "Wealth
Generating" Company for the sustainable growth of our organization and its
stakeholders.
During the current year the company is confident of accelerating the growth
rate started in the previous year, with its new production capacities put into
operation.
·
REAL
ESTATE BUSINESS:
The four decades of experience built by the promoters of the company to raise
its stature to be bracketed in one of the leading builders of Maharashtra State
and its successful operations in Karnataka State and Joint Venture in Bahrain
has consolidated the company and ushered it to higher levels of growth.
The company is poised for more Joint Ventures with big corporate and
cooperation with international architects to raise its standard to Global
presence.
Overview-FY
2006-07
Value creation through
integration:
A landmark amalgamation of Anik Development Corporation
Private Limited (ADCPL) with subject has been completed.
As per the approval from the Hon'ble High Court of Judicature at Bombay,
all assets and liabilities of ADCPL have been transferred to SPSL with effect
from 20th December, 2006. As per the Scheme of Amalgamation, shareholders of
ADCPL will receive 5 equity shares of SPSL in lieu of every 6 equity shares of
ADCPL held by them. Accordingly, 41666667 equity shares of the company were
issued to the shareholders of ADCPL.
BUSINESS REVIEW:
·
STEEL
BUSINESS:
Steel industrial growth in the country for the year 2006-07 has indeed been a
heartening one with the growth registering a significant impact especially in
the Asian region. The Asian region alone accounts for 53.7% and growth rate
rise of twelve percent over the previous year, and India being placed at the
7th position amongst top ten steel producing nations the world over with 44
million tonnes of crude steel production in the year 2006, which itself is 7.6%
higher than that of year 2005.
India thus has established itself as the fastest growing
economy out of the 34 developing and emerging markets, and is poised to rank as
the third largest economy in the world by the year 202O. GDP growth of the
nation has set a higher trend in the year 2006. By the year 2010 over 125
million consuming and effluent households in India is projected to fuel
significant demand in the steel sector, predominantly in construction and
automobile segments.
Auto industry and consumable durable industry continue to
register considerable growth both in domestic and overseas markets. Consumption
pattern of cold rolled galvanised products in these markets are expected to
gear-up. Thus, demand of flat products, especially coated and colour coated
ones, in the construction and industrial segments has recorded a lasting impact
both on export and domestic fronts. The company has certainly geared-up to meet
this demand largely on the export market, which it has consolidated until now,
and new domestic markets being scaled thanks to the timely commissioning of its
expansion units that enabled the company to raise itself to the growing
consumer needs scenario. In this context, it is apt to emphasise the company's
commendable completion of its Phase-I expansion including the Next-Generation
Technology second Colour Coating Line successfully commencing commercial
production from the 3" Quarter of year 2006. It may be further added that
this line with its new full-fledged Near Infra Red technology of curing has
become the world's first highest speed Colour Coating Line producing quality
products of International standards. Coupled with this is world's largest
solvent handling Re-generating Thermal Oxydiser (RTO) system to effectively
recover fuel energy needed for curing on zero-fuel consumption, significantly
contributing to economics of operating the Colour Coating complex.
Subject had the privilege of displaying this new technology at International
Forum of European Coil Coating Association (ECCA) at Maastricht, Belgium in May
2006. Consequently, the company has sought for Patent Right and Patent
Application No. No.155/MUM/2007 has been filed with Office of The Controller of
Patents, India. Quality of products from this line has been witnessed by
several global producers, R&D organisations and paint manufacturers around
the world, to take advantages of this technology in their own respective
fields' development. It is no wonder that this state of the art technology has
become the hallmark of future colour coating technology the world over. Subject
is proud of this major leap forward and look forward for scaling further
technological heights. The company, which has pioneered colour-coated products
since 1991 in this country, is now in a prestigious position on the global map
to offer its know-how expertise to other producers across the globe being the
largest producer of this product in the Asian Region.
The Colour coating complex since its commissioning of the new unit continued to
achieve highest output realising 100 percent yield and thus continuing its thrust
on the export markets including North American markets, covering colour coated
products as well as galvanised coils and cold rolled coils. With commissioning
of this hi-tech CCL-2 complex the company has successfully completed Phase-I of
its expansion program of colour coated coils.
The company's agreement with Thyssen Krupp Steel of Germany, which is in force
since February 2005 for a period of five years, there have been significant
contributions in overall quality improvements, technological innovations and
modifications and quality control and the company has benefited in a big way by
this association.
The company is a continually growing one ever ready to
embrace technological improvements and innovations. It is important here to
state that price of zinc the main constituent for galvanising and further
coating operation has registered a steep hike, which is still ongoing. With
aluminium price comparatively much cheaper, your company has drawn up plans to
produce soon zinc-aluminium alloy coated products under the Brand Name
"METALUME".
To utilise existing Cold Rolling Mill capacity to its maximum productivity and
simultaneous diversification of finished products, the company has plans to
install high hydrogen annealing furnace and skin passing operations to produce
cold rolled annealed and skin-passed coils of high degree of quality to cater
to down stream industries. Thus, with the above, the company is planning to
embark on a Phase-II expansion of coating operation for diversification of these
products as well as to modernise the existing cold rolling facilities to gear
up to the ever growing additional market needs.
The company, thus far, is continuing to maintain its efforts to keep pace with
the production units of expansion by induction of skilled and trained manpower
in critical areas to cover both the existing and expansion units to meet its
target of achieving project completion at the shortest possible time.
The company's training programs is ongoing in all levels of manpower needs by
renowned professional experts, to impart sense of commitment, improved
performance in the all areas of quality and productivity. The existing Human
Resources Development facilities have been strengthened keeping pace with the
needs of the company identified from time to time. In this connection, I must
state that the level of utilisation and efficiency of production line has been
well streamlined in all its operations.
Restriction in down-gradation, improvement in yield and
reduction in cost have all been very successfully established down the line,
with production-linked incentive scheme contributing to boosting up morale of
employees and thereby company's overall growth.
In addition, the company could acquire a modest 8 acre land
adjoining the main plant complex, in which a new fly-arch roof design building
has been established wherein all scrap generation of the plant have been
systematically stored with all finishing lines and profiling lines housed in
the complex, facilitating smooth material flow and full utilisation of the
precious shop areas of the entire production units of the plant.
With Phase-II expansion, planned for production of METALUME
and high hydrogen annealing needs for production of cold rolled, annealed and
skin-passed coils, the company is poised to achieve its full utilisation of the
entire complex, churning out the largest colour coated production in Asian
region besides the exotic Zinc-Aluminium alloy coated products (METALUME),
which have significant market both in domestic and export fronts.
·
REAL
ESTATE BUSINESS:
Firstly, the lucrative opportunities unfolding in this segment, reflected in
the anticipated surge in the realty sector from its current size of USD 12 bn
to emerge as a USD 45-50 bn industry over the next five years, on the back of
its recognition as one of the major engines driving economic growth, employment
generation and wealth creation, and contributing to 10 per cent of the GDP
directly and 30-40 per cent of GDP indirectly due to its direct and strong
linkages with core industries like cement and steel, makes it one of the most
attractive sectors to extend our presence in.
Secondly, while steel has always been the mainstay of their company, most of
their real estate initiatives transpired through a number of Special Purpose
Vehicles within The Group. With the realty sector rapidly evolving and with a
view to build a strong foundation by corporatising, the management had
therefore consolidated the real estate businesses under one entity and leverage
the attractive opportunities unfolding in this sector in an organised and
profitable manner.
Further the management strongly believes that this strategic consolidation will
provide the company a strong platform to capitalize on the Ajmera Group four decade
plus experience, its track record and credibility of having successfully
developed properties over 17 mn sq. feets in Mumbai, Gujarat etc. its
leadership ranking by virtue of being one of the largest realty player in the
realty market of Mumbai, its reputation for differential thinking reflected in
its innovative and perceptibly differentiated landmark offerings of housing and
commercial complexes in Mumbai, Bangalore, Pune, Rajkot, Ahmedabad and Surat
and lastly leverage its pedigree of being a pioneer best manifested in the many
firsts it has to its credit : Conceptualising and acting as facilitator for
India's first dome theatre (Imax), Mumbai's first shopping mall and developing
the largest private garden sprawled over 25 acres in Mumbai.
The company envisages that backed by the impressive lineage and track record,
this strategic foray will help build an even stronger brand image and
visibility in the realty space, render size and scale to their operations going
forward, significantly increase their net worth which is critical to
participate in big-ticket, high-margin capital intensive, innovative and
long-term projects, and which will facilitate our emergence as one of the
largest players in the sector over the foreseeable future and also help them
firmly establish their footprints across the country.
Further, with the liberalized FDI norms, several international firms are likely
to enter the Indian real estate sector with ambitious real estate projects for
development of residential townships, technology parks and other infrastructure
projects. It is expected that the models for foreign player's entry and
collaboration will encompass pure financial investment to provide base capital
required to undertake such projects, joint ventures route and joint development
agreements. Recognizing that foreign players are likely to approach recognized,
organized and corporatised Indian players for JVs and joint development
agreement, the company believes that this move is well timed as their
consolidation and branding strategy will help meet the criteria of foreign
players looking at establish alliances with Indian counterparts, like
itself.
Driving Future Value:
The various segments which may be broadly classified for the
company's real estate business are Residential, Commercial and Retail. In
addition to its pan India expansion plan for steel business, the company
intends to reinforce its dominance in the real estate business by embarking
upon the following measures:
(a) Develop unique properties in the commercial, residential and retail
space to have a stronghold in all segments of the business.
(b) Have a strategic mix of capital intensive scalable long-term projects
and immediately encashable projects resulting in a fast turnaround of projects
and re-deploying funds in newer projects.
(c) Amply address the needs of consumers across the entire spectrum: from
the ultra luxurious, to the affluent and to the middle and lower middle class
consumers.
Internal
controls and system:
In this year, the company has successfully implemented SAP system vastly
improving the management information system and integration of various
operations and functions of the organisation all under one umbrella. This has
resulted in harmonious monitoring and regulation of operations in a systemised
manner in each and every activity of the plant. Correct use of funds, proper
budgeting, efficient monitoring and its regulation by due approval and
authorization policy enforcement have resulted in the use of funds in the most
profitable and correct manner. All these have been implemented in every area
commencing from raw materials, project implementation, and project monitoring,
production, quality control and logistics.
The Video Conferencing system of the company continues to prove its worthiness
during the execution of projects with foreign vendors, saving considerable time
and money related to engineering changes, inspection, scheduling, approval of
drawings and commercial negotiations, securing the time of implementation as
well quality decisions taken in an exemplary manner.
The Internal Audit Program:
All the actions taken last year by Internal Audit Program conducted by the
external agency for self-assessment audit guides for conformity to the Indian Accounting
Standards, prevailing Laws and company Policies have been implemented and
continue to be implemented. The Audit Committee appointed by the Board
selectively reviews its adequacy, addresses the significant findings, and
follow up needs on such issues, which are given top priority and implemented
ceremoniously.
STRENGTH, WEAKNESS. OPPORTUNITY AND
THREATS:
STEEL BUSINESS:
·
STRENGTHS:
a. The company, having successfully developed commercial production line for
Colour Coated products, with its new technology, stands on the threshold of
offering its collaboration globally to prospective producers in this field.
Requests are being screened for a future successful conclusions.
b. A high class colour coating line and most modern continuous all-vertical,
hot dip galvanising line No.2, Level-2 automated Cold Rolling Mill No. 3 with
high quality cold rolled coils of exceptional standards of colour coated and
un-painted galvanised coils.
c. Top class quality control exercised on its CRM Complex
and product diversification with its ongoing collaboration with TKS-CS
Germany.
d. Most modern world class Laboratory including Laboratory Near Infra Red Oven
to cure specimen coatings at over 220 m/minute and all testing gadgets to
comply with all testing Standards of ECCA.
e. Permanent Board Member of ECCA.
f. High acceptance of our products in the expanded European and Far East
markets with growing consolidated access to North American markets with
encouraging access to US markets.
g. World-class equipment and high technology of its expansion with latest
monitoring devices, including the innovative Hydrochloric acid Regeneration
Plant to produce high purity Iron Oxide of export quality.
h. Skilled and trained manpower of younger age group to
accept all challenges.
i. Improved and growing brand image of their
worldwide. Growing high and bulk market shares in European and Far East
markets.
j. ISO 9001:2000 Certification of their Quality Management System by DNV.
k. ISO 14001:1996 certification for worldwide recognition of our EMS
efforts
l. Introduction of SAP system.
m. ISO 14001:2000 Re-certification for worldwide recognition of their EMS
efforts.
n. Proximity to a good city (Pune, Mumbai) and JNPT (for
export).
o. Long term contracts with leading domestic producers of HR Coils for ensuring
consistent and competitive input feed stock.
·
WEAKNESSES:
a. With sole dependence on local/imported HR coils, quality, cost and deliveries
are uncertain. Too much working capital is blocked in HR coils stock.
b. Sole dependence on MSEB power supply, with no Captive Power
Generation.
c. The need for Hot Rolled Coil plant with backward
integration in view of the large volume turnover of the existing
facilities.
d. Dependency of consumable zinc from domestic and import sources with its
fluctuating prices for timely needs of the plant.
·
OPPORTUNITIES:
a. Entry into OEM and Automobile sector markets with the commissioning of
company's high technology units covering very special features such as high
class Colour Coated products, Galvanised Products and pure METALUME products to
replace imported coated products and sizeable exports
b. Worldwide boom in industrial growth and steel market is leading to large
unfulfilled demand for their products. Many untapped domestic and overseas
markets to be explored for sales more vigorously.
c. Global sourcing of major raw materials, consumables and spares to ensure
prompt deliveries at competitive
cost.
·
THREATS:
a. Loss of experienced, skilled and competent manpower and difficulty in
obtaining manpower.
b. Growing expansion activities in India by competitors on capacity creation of
colour coated products and overseas markets will exercise pressure on their
sustained exports.
c. Government policies regarding export/import and local
taxation.
REAL
ESTATE BUSINESS:
·
STRENGTHS:
a. The Company's promoters ranked as one of the leading builders in the State
of Maharashtra.
b. Successful installations in and outside the city of Mumbai are proof of the
vast back-up expertise of 4 decades the Company's promoters has acquired.
c. The company/Promoters has one of the largest land bank within city limits
having successfully developed properties of over 17 million square feet.
d. The company has won market confidence by establishing a continued growth and
profits on its operations as on date.
e. Benefits of vital construction material: Cement supply is from its sister
concern, Ajmera Cements Private Limited
f. Highly efficient and proven established network in construction and
architectural activities.
g. Strong organizing abilities on innovations, such as large scale show piece
garden of the state of the art in Mumbai city.
h. Has established overseas Joint Venture in Bahrain.
i. Has the complete Roofing, Sheeting .and Formed products facilities of its
coating complex under one umbrella for construction needs.
·
WEAKNESSES:
a. Dependence on various State Governments Statutory Regulations and changing
from time to time leading to avoidable delays in project activities.
b. Infrastructure needs: Piped cooking gas, good quality access road by State
authorities, delayed actions leading to inconvenience and reduced occupancy
strength of customers.
c. Organisational needs to be strengthened in building activities in far off
states.
·
OPPORTUNITIES:
a. Being in the forefront of building activities, opportunities exist in manufacturing
construction materials by setting up of:
i. Rebar production mills with steel making and hot rolling
facilities.
ii. Pre-engineered buildings covering coloured roofing of profiles (Tiles,
Trapezoids, Corrugated), C-purlins, Z-purlins, I-beam, H-beam welding, Tubes,
Squares, Rectangles, Window panes etc.
iii. Manufacture of Doors, Windows, Shutter (manual and
automatic types).
iv. Aluminium composite panel lines for arcades.
v. Merging of AJMERA CEMENTS Group in the longer run with the company.
·
THREATS:
a. Emergence of numerous new corporates in Real Estate
posing stiff competition.
b. Larger new corporates with easy funds available have also entered the
Real Estate foray adding to the competitive situation.
c. Land prices may soar very high resulting in larger fund deployment.
d. Increased lending rates fluctuations by Banks will have adverse impact on
marketing operation.
e. Changing policies of State Governments and its impact on delayed
sanctions/clearances resulting in increase in financial burden by way of
delayed implementation.
OUTLOOK:
·
STEEL
BUSINESS:
Continuous R and D efforts in ushering cost effective technologies to
contribute to quality product of international competence is Company's main thrust.
The company has been recognized by ECCA as the Technology Leader in Asian
Region in colour coated products. With the largest production facility and
predominant exports to Europe, the Company's export frontier has widened and
its capacity to cater to domestic markets has grown significantly.
Today, the company has attained the stature of providing
Know-how and Technological Transfer in the field of Colour Coating to countries
of European Region and other parts of the world
The new value added METALUME product by middle of the year 2008 is bound to
augment company's realization of enhanced contribution. The company has already
taken up catering to the needs for white goods markets in the Colour Coated
segments.
Selective applications in automobile segment will be tapped to meet its needs.
The company has a long-term plan to install automotive process line for
laser-welding of auto blanks as well as to install auto galvanising line for
automotive panel market segments.
Backed by TKS-CS know-how transfer, the company continues to make its impact to
enhance customer satisfaction and import substitution besides consolidation of
export market.
The company has plans to locate mini colour coating lines near service centers,
both domestic and overseas for furthering its markets for colour coated coils.
Also, installing pre-engineered and fabricated building is on the anvil.
The company with its Quality Policy and accredited with ISO 9001:2000, ISO
14001:1996 and ISO 14001:2000 has met the needs both on export and domestic
market fronts.
·
REAL
ESTATE BUSINESS:
The four decades of experience built by the promoters of the company to raise
its stature to be bracketed in one of the leading builders of Maharashtra State
and its successful operations in Karnataka State and Joint Venture in Bahrain
has consolidated the company and ushered it to higher levels of growth.
With the availability of expertise of its Coating complex, the company has
started in a big way to attain self-sufficiency of building construction
products by way of pre-engineered buildings for industrial and residential
category and Rebar, Rods etc. manufacturing facilities including Facade panels
(arcade).
The company is poised for more Joint Ventures with big corporates and cooperation
with international architects to raise its standard to Global presence.
RISKS
AND CONCERNS:
·
STEEL
BUSINESS:
Business Portfolio Risk:
a. New multinational Warehouse set up with imported coated products in the vicinity
and in the country.
b. New capacity creations in the Country of Colour Coated products and
competing exports.
Risk
Mitigation:
a. This has been achieved with continuing measures in employment of improved
technology to match with the competitors' as well as satisfaction of its end
users/ customers. The company has upgraded its plant and equipment to keep pace
with the above.
b. The company has established globally its product quality and
commercial competitiveness.
c. The company has established the most updated technology in its sphere of
activities covering the Cold Rolling, Galvanising process and the colour-coated
process. The company is poised to meet every aspect of the industry
needs.
d. With the company's Phase-I expansion completed the TKS-CS know-how
collaboration continues to enjoy in production of high value added products
with sustained improved quality of international competence.
e. The company has already taken measures for acquiring the
skills needed to scale the demands of growth in response to the business
climate. It is needless to stress that the fortunes of their business lie on
the success of achievements with OEM customers, which it predominantly caters.
The company's association with TKS-CS is proof of the plans and commitments.
·
Environmental
Risk:
Any emission or discharge beyond norms laid out by the relevant Pollution
Control Board could bring in legal censure and affect the company's image as a
clean producer.
Risk Management:
The company has been accredited with ISO 14001:2000 Certification.
In the existing and new expanded facilities, the company has taken steps in
introducing European Standards of Pollution treatment where Standards are most
stringent.
The company with its expanded facilities has geared up in the area of the
Pollution Control Regulations by:
a. Establishing a most modern Hydrochloric Acid Regeneration Plant
designed for Zero discharge of HCL emission and associated solid emission well
below the limits of Statutory Regulations.
b. Special Effluent Treatment Plant for the new and existing colour coating
facilities has been installed for the total liquid disposal of the effluents
(with Zero discharge from the plant boundary) to the plant's green belt,
usefully.
c. Special Regenerative Thermal Oxidisation system for total solvent recovery
of the Colour Coating ovens with discharges of carbon dust and Nox emissions
well below the Euro Norms of statutory regulations.
d. The company has switched over to fuel propane clean gas with no impurities
on fuel.
e. The Company has already obtained Certification of Consent for operation from
the State Statutory Body for the company's expanded capacities.
·
Import
Risk:
The Company's products could be out-priced by lower cost imports.
Risk Mitigation:
a. The company is advantageously placed with new industries coming around
the region, which will be a consistent in-taker of Company's products, which
will give cost advantage in terms of transportation etc. Besides, your company
has plans to have its own pre-engineered building components set up.
b. The new capacity creations have resulted in the least turn around time for
faster deliveries.
c. With its expansion completed, the company is well placed to cater these requirements
on account of its established export markets, which obviously is an added
advantage in enhancing customers satisfaction in the domestic front.
d. In addition, the company has plans to bring the coated stock to major
warehouses whereby the end-user can gainfully do minor finishing operation to
suit his needs of the finished product.
e. Long-term contracts with warehouses in the domestic sector are gradually
increasing and beneficial to Company's domestic market plan.
·
Industrial
Risk:
Joint ventures of warehouses from multinationals around vicinity of the company
may result in consumers lifting less quantity of products directly from the
company.
Risk Mitigation:
The company has already cast in its planning the implementation of high value
diversification of high value coated products to meet every customer's end use
as well as to set up its own warehouses and service center facilities.
·
Brand
and Awareness Risk:
The company's brands may be poorly positioned and may result in a drop of
off-take.
Risk Mitigation:
The company's brands are prudently positioned. The company reinforces its brand
through selection of the right promotional media, selection of right agency,
the creation of advertisement in line with the respective brand
attribute.
The company's long term collaboration with ThyssenKrupp Steel of Germany, the
second largest European Steel Producers of quality, cold rolled, galvanized and
colour coated products as well as METALUME high value products has boosted the
Company's image in a giant way.
A Website has been launched to promote the brand in international markets,
which is updated from time to time. The Company has produced its Video CD tapes
from professional agencies and has been distributed to the various customers,
both domestic and exports.
·
Cyclic
Risk:
A vulnerability to business cycles could affect the Company's capacity to
sustain a growth in income, profits and shareholders value.
Risk Mitigation:
Business cycles are getting shorter-over the years in this industry. To
protect is profits, the company has cut cost and restructured its business.
The company has graduated to the value-added segment.
Break-even levels have dropped. Relevant product mix innovations are expected
to accelerate growth.
REAL
ESTATE BUSINESS:
·
Business
portfolio risk:
a. A number of small corporates have sprung up in the city of Mumbai and
elsewhere.
b. Large corporates with easy funds have branched into Real Estate business
adding to stiff competition.
Risk mitigation:
a. The company has four decades of expertise with over 17 million square feet
of construction.
b. Owns one of the largest land bank within Mumbai city.
c. Unrivalled in large-scale garden execution in housing complexes.
d. Has created Joint Venture in Bahrain and many more are planned.
e. Has major construction materials within its in-house ambit.
f. Its commercial competitiveness is the leading edge besides its committed
schedules of targeted completion.
·
Environmental
Risk:
Any emission or discharge beyond norms laid out by the relevant Pollution
Control Board could bring in legal censure and affect the Company's image as a
clean producer.
Risk Management:
a. The company as on date has executed projects fully complying with the needs
of State Government and other building Forums' norms.
b. All projects chosen fully protect the housing and commercial complexes
from the Environmental Pollution point of view within the complex (proven track
record).
c. All safety measures in sanitary, drinking water, wiring, lift operations,
fire fighting needs, drainage, agricultural landscape etc. are adopted to the
standards of certification.
d. The company is already in responsible position of Builders Forum of
Maharashtra State.
·
Industrial
Risk:
Joint ventures from multinationals around vicinity of the company may result in
less dependence on the Company.
Risk Mitigation:
a.
The company has already established Joint Venture in Bahrain
and will expand further.
b. Such Joint Ventures with the company's expertise will overcome such
stiff competition.
·
Cyclic
Risk:
A vulnerability to business
cycles could affect the Company's capacity to sustain a growth in income,
profits and shareholders value.
Risk Mitigation:
To sustain its profits the company has introduced many cost cutting and
economic measures and restructures its business strategy from project to
project. Besides, the company's innovations are expected to accelerate
growth.
FINANCIAL
MANAGEMENT:
The company has a Financial Management information system in place, which
involves preparation of detailed Annual Business plan for the current year and
a broad forecast of projection for the next years, which is reviewed every
year. Capital expenditure commitments and borrowing plans are based on
these forecasts.
Contingent
Liabilities:
Contingencies, which are likely to materialize into liabilities till the
date of approval of Accounts by the Board of Directors and having material effect,
are being provided for. Other contingencies are shown as Contingent Liabilities
by way of Notes to Accounts.
Notes to Accounts
1. Figures of the previous year have been reworked, regrouped,
reclassifled and rearranged to confirm with the figures of the current year.
2. The figures for the current year include figure of Anik Development
Corporation Private Limited (ADCPL), which is amalgamated with the company with
effect from 20th December 2006, and are therefore, current year figure, to that
extent not comparable with those of previous year.
3. Pursuant to order of Hon'ble High Court of Bombay dated 10th August
2007 Anik Development Corporation Private Limited has been merged with the
company with effect from 20* December 2006.
The Merger Scheme features as follows: -
a) Subject a company incorporated under the Companies Act, 1956 and
having its Registered Office at Citi Mall, Link Road, Andheri (W), Mumbai
400053, is in the Manufacture of Steel Products.
b) Anik Development Corporation Private Limited (ADCPL), is company
incorporated under part IX of the Companies Act, 1956 and having its Registered
Office at Citi Mall, Link Road, Andheri (W), Mumbai 400053, is in the
development of Real Estate.
c) ADCPL has been merged in the subject effective from 20* December 2006
and the asset, liabilities, rights and obligations of the amalgamating company
and have been recorded at the respective book value under the "Pooling of
interest" Method of accounting for amalgamation.
d) The Salient Features of the Scheme are as under: -
i. With effect from the Appointed date, the entire and whole of the
Undertakings of Transferor company including all properties, estates, assets,
rights, title, interest, powers and all debts, liabilities, obligations and
duties of whatsoever nature of the Transferor company shall be transferred to
and vested in or be deemed to have been transferred to and vested in Transferee
company each as a going concern without any further act, instrument, deed, matter
or things so as to become the Undertakings , estates, assets, properties,
rights, titles and interests , liabilities, obligations, debts and duties of
whatsoever nature of Transferee company by virtue of and in the manner provided
in this Scheme.
ii. Upon the coming into effect of this Scheme and with effect from the
Appointed Date, all Liabilities of every kind, nature and description of the
Transferor company shall, pursuant to the sanction of this Scheme by the High
Court and pursuant to the provisions of Sections 391 to 394 and other
applicable provisions, if any, of the Act, be transferred or be deemed to be
transferred to the Transferee company, without any further act, instrument,
deed, matter or thing and the same shall be assumed by the Transferee company
to the extent they are outstanding on the Effective Date so as to become as and
from the Appointed Date, the Liabilities of the Transferee Company on the same
terms and conditions as were applicable to the Transferor Company and the
Transferee Company shall meet, discharge and satisfy the same and further it
shall not be necessary to obtain the consent of any third party or other person
who is a party to any contract or arrangement by virtue of which such
Liabilities have arisen in order to give effect to the provisions of this
Clause.
iii. The existing securities, mortgages, charges, encumbrances or liens
(including floating charges) over the assets and properties of the Transferee
Company or any part thereof which relate to any liability, loan, deposit or
facility availed of by the Transferee Company shall continue to relate or
attach to the assets and properties of the Transferee Company to which the same
relate or attach and nothing contained in this Scheme shall operate to enlarge
or extend such securities, mortgages, charges, encumbrances or liens (including
floating charge) to any of the assets or properties of the Transferor Company
or any part thereof which are transferred to and vested in the Transferee
Company under and pursuant to this Scheme.
iv. All proceedings, if any, pending by or against the Transferor
Company, all contracts, obligations, actions, rights and claims by or against
the Transferor Company will be transferred to the Transferee Company and will
be enforceable by or against the Transferee company.
Fixed assets :
· Land
· Building
· Plant and Machinery
· Vehicles
· Furniture and Fixtures
· Office Equipments
· Computers
Branches :
Ahmedabad
Office
Sahajanand Shopping Centre,
1st Floor, Shahibaud Road, Ahmedabad - 380004
Phone : 91 - 79 - 5622883, 5620982
Fax : 91 - 79 - 5621266
Bangalore
Office :
G II, Albert Court, 3, Albert Street, Behind Briged Tower
Bangalore - 560025 Karnataka , India
Phone : 91 - 80 - 2244140
Fax : 91 - 80 - 5301924
Email : sales.bng@spsl.com
URL - www.spsl.com
New
Delhi Office :
C - 117, IInd floor, New Rajinder Nagar,
New Delhi - 110060 India
Phone : 91 - 11 - 28741410
Fax : 91 - 11 - 28741410
Email : sales.del@spsl.com
URL - www.spsl.com
Mumbai Office :
Unit 1, Luthra Industrial Premises
Safed Pool, Andheri Kurla Road,
Andheri (E), Mumbai – 400072
Tel No.: 91-22-28515606/28515644
Fax No.: 91-22-28512885
Domestic Dealer :
Ralson International, 10, Naga Devi Street,
Mumbai - 400001
Phone : 91 - 22 - 3424418
Fax : 91 - 22 – 6282581
Ultra Home Products Limited. G - 5 Chetak Chambers,
14 R.N.T. Marg, Indore - 452001
Phone : 91 - 731 - 471534
Fax : 91 - 731 - 421753
Viswam Enterprises, NO.17,
West Anjaneya Temple Street, Basavangudi
Bangalore - 530
Phone : 91 - 80 - 6633682
Fax : 91 - 80 - 6633682
Premier metals and Engg. Private Limited ( C and F Agent ),
P.B. NO.174986, Mint Street, Chennai - 600079
Phone : 91 - 44 - 3743038, 3743039
Fax : 91 - 44 - 3742008
Multicolor Steels Private Limited 1 / 18-20,
White House, Rani Jhanshi Road, New Delhi - 110005
Phone : 91 - 11 - 3513661, 3513662, 3513663, 3513664
Fax : 91 - 11 - 3513660
News :
SPSL
goes Environment friendly. : "Shree Precoated Steels
Limited, a flagship company of the well known Ajmera group has been certified
by det norske veritas (dnv certification B. V. of the Netherlands) for its
environmental management system (ems) under the international ISO 14001:1996
standard. The lead auditors from dnv's Pune office carried out a thorough audit
of the requirements and their implementation under this standard at spsl's
sanaswadi works on 24th and 25th June before giving this certificate. This
certificate places spsl in the top bracket in the steel industry. Spsl is
already certified under the ISO 9001:2000 standard of quality management system
for more than 7 years.
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.39.43 |
|
UK Pound |
1 |
Rs.77.06 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|