MIRA
INFORM REPORT
|
Report Date : |
30.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NITIN CYLINDERS LIMITED |
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Registered Office : |
501, Delta Technology Street, Hiranandani Gardens, Powai, Mumbai –
400076, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.09.2006 |
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Com. Reg. No.: |
164954 |
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CIN No.: [Company
Identification No.] |
U27109MH2006PLC164954 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN14374D |
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PAN No.: [Permanent
Account No.] |
AACCN3694A |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of High Pressure Seamless Cylinders. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 532000 |
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Status : |
New Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a 100% subsidiary of Nitin Fire Protection Industries
Limited, a well – renowned name in the Indian fire protection industry. The
company had not commenced commercial operation as per last available
financials of 31.03.2007. Trade relations are fair. Payment are reported as
usually correct and as per commitments. The company can be considered for small to mediocre business dealings
at usual trade terms and condition, in view of strong promoters. |
LOCATIONS
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Registered Office/ Factory : |
501/502, Delta Hiranandani Gardens, Powai, Mumbai – 400076,
Maharashtra, India |
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Tel. No.: |
91-22-40457000 |
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Fax No.: |
91-22-66920910 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Nitin Mansukhlal Shah |
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Designation : |
Director |
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Address : |
B/8, Neelkanth Dhara, 90 Feet Road, Ghatkopar (East), Mumbai – 400077,
Maharashtra, India |
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Date of Birth/Age : |
10.06.1957 |
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Passport No. : |
F2510410 |
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Email: |
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Name : |
Mr. Rahul Nitin Shah |
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Designation : |
Director |
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Address : |
B/8, Neelkanth Dhara, 90 Feet Road, Ghatkopar (East), Mumbai – 400077,
Maharashtra, India |
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Date of Birth/Age : |
01.02.1978 |
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Passport No. : |
Z1568610 |
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Name : |
Mr. Kunal Nitin Shah |
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Designation : |
Director |
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Address : |
B/8, Neelkanth Dhara, 90 Feet Road, Ghatkopar (East), Mumbai – 400077,
Maharashtra, India |
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Date of Birth/Age : |
13.11.1984 |
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Passport No. : |
F3991403 |
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Other Directorship Companies : |
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Name : |
Nitin Fire Protection Industries Limited |
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Designation : |
Managing Director |
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CIN of Company : |
U29193MH1995PLC092323 |
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Name : |
Alert Fire Protection Systems Private Limited |
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Designation : |
Director |
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CIN of Company : |
U29198MH1993PTC073344 |
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Name : |
Eurotech Cylinders Private Limited |
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Designation : |
Director |
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CIN of Company : |
U28121MH2005PTC152345 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Nitin Fire Protection Industries Limited |
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49930 |
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Mr. Nitin Mansukhlal Shah |
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10 |
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Mr. Rahul Nitin Shah |
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10 |
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Mr. Kunal Nitin Shah |
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10 |
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Mrs. Saroj Nitin Shah |
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10 |
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Mrs. Reshma Nitin Shah |
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10 |
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Mrs. Dhruti Rahul Sanghvi |
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10 |
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Mr. Nitin Mansukhlal Shah HUF |
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10 |
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Total |
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50000 |
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Category |
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Percentage |
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Bodies Corporate (Not mentioned above) |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of High Pressure Seamless Cylinders. |
GENERAL
INFORMATION
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Bankers : |
·
State Bank
of Hyderabad Overseas Branch,
1204, Ashok Mahal, Tulloch Road, Colaba, Mumbai – 400039, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Tolia and Associates Chartered Accountants |
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Address : |
B-7, Madhu Parag, 69 Swastic Society, JYPD Scheme, Vile Parle, Mumbai
– 400056, Maharashtra, India |
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Associates/Subsidiaries : |
·
Nitin Fire Protection Industries Limited ·
Alert Fire Protection Systems Private Limited ·
Eurotech Cylinders Private Limited |
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Holding Company : |
Nitin Fire Protection Industries Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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1500000 |
Equity shares |
Rs.10/- each |
Rs.15.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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712500 |
Equity shares |
Rs.10/- each |
Rs.7.125
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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7.125 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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125.875 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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133.000 |
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LOAN FUNDS |
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1] Secured Loans |
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97.493 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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97.493 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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230.493 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.000 |
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Capital work-in-progress |
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297.282 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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25.637 |
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Other Current Assets |
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0.267 |
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Loans & Advances |
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23.964 |
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Total
Current Assets |
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49.868 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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129.654 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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129.654 |
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Net Current Assets |
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(79.786) |
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MISCELLANEOUS EXPENSES |
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0.229 |
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Pre Operative Expenses |
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12.768 |
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TOTAL |
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230.493 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.71 |
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Current Ratio (Current Asset/Current Liability) |
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0.38 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 :
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Corporate
identity number (CIN) Foreign company registration number |
U27109MH2006PLC164954 |
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Name of the
Company |
NITIN CYLINDERS LIMITED |
|
Address |
501, Delta Technology Street, Hiranandani Gardens, Powai, Mumbai –
400076, Maharashtra, India |
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This form is for |
Creation of
Charge |
|
Type of Charge |
Movable Property
(Not being pledge) Floating Charge |
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Particulars of the
charge holder |
State Bank of
Hyderabad Overseas Branch,
1204, Ashok Mahal, Tulloch Road, Colaba, Mumbai – 400039, Maharashtra, India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Agreement of
Hypothecation of Goods and Assets Agreement of Loan
for Overall Limit Letter Regarding
the grant of individual limits within the overall limit (Collectively
constitute a single charge for Rs.170.000 Millions) |
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Date of the
instrument creating or modifying the charge |
24.11.2006 |
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Amount secured by
the charge |
Rs.170.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest
: 0.50% below
SBHPLR i.e. 11.50% p.a. subject to charges from time to time. Terms of
repayment : Term Loan of
Rs.170.000 Millions shall be repayable (with a moratorium of 9 months from
the date of disbursement) in 60 monthly installments of which first 57 installments
@ Rs.6.167 Millions and the last 3 installments @ Rs.6.160 Millions Margin : As may be
stipulated by the Bank from time to time Extent and
operation of the charge : Hypothecation by way of first charge of all goods, book
debts and assets as specified in item No.14 as security for payment and
discharged by the borrower to the Bank on demand of the principal and all
other moneys at any time payable by the borrower to the Bank. Others : As security for
payment and discharge by the borrower to the Bank of the principal and
interest and costs, Charges, expenses and other monies due and payable under
or in respect of the credit facilities, the borrower shall, as may be
required, created in favour of the Bank, a mortgage in a form satisfactory to
the Bank of all the borrowers immovable property both present and future. |
|
Short particulars
of the property charged (including location of the property) |
Hypothecation of
the present machinery listed in the schedule to the agreement and all future machinery
belonging to or in the possession or under the control of the borrower
wherever lying stored and kept and whether in possession of the borrower or
of the Bank or of any third party whether in India or elsewhere thought out
the would (Including all such goods, other movable assets as may be in course
of shipment transit or delivery). |
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Particular of the
present modification |
N.A. |
Profile :
Subject is a 100% subsidiary of Nitin Fire Protection Industries
Limited. (NFPIL), a group company of Nitin Group of Companies. Since last more
than two decades NFPIL is in the field of safety and security and is one of the
leading organizations in the field in India.
Subject has set up a world class manufacturing
facility at Visakhapatnam Special Economic Zone, Andhra Pradesh, India to
manufacture high pressure seamless cylinders. The management of subject comprises a team of highly
qualified, well experienced and with expertise in the field of cylinder
manufacturing. The Plant is well equipped with Special Purpose Machines
using the most modern technology.
Of late, CNG has become an effective alternative fuel for
automobiles worldwide due to its economic advantage and low pollution
characteristics. Keeping in view the growing trend of CNG cylinders’ need
in the global market, Subject manufactures
cylinders meant for CNG storage for all kinds of vehicles. In addition to the
CNG cylinders Subject
produces cylinders for compressed industrial gases viz. Oxygen, Hydrogen,
Nitrogen, Argon, Helium, Air, etc.; fire fighting applications and beverage
use.
The other products of subject
are CNG cascades and CNG dispensers. With hand-on experience in designing
and manufacturing cascades and dispensers, subject engineers manufacture these as per the
requirements of its clients.
The specialty of Subject
manufacturing process is that the entire procedure is being
carried out in-house with proper monitoring conforming to the
relevant national/international standards to ensure the quality of the
product. Subject
products undergo variety of tests stipulated by the national/international
Standards viz. pressure cyclic test, hydrostatic stretch test, air leakage
test, burst test, etc. to assess the fatigue strength, usage life, safety and
reliability for application under rough, tough and extreme climatic conditions.
The Subject cylinders
are epoxy coated on exterior surface for protection against unfriendly
environment. Thus subject
ensures that it provides quality products to its clients.
Subject
Marketing and Quality Control departments are geared up to offer the most
comprehensive and timely information on its products for end user customers.
NCL believes in “TCS – Total Customer
Satisfaction”. Subject goes all out to meet its
customers’ needs with best quality products, perfect and timely services
thereby achieves its goal.
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.39.40 |
|
UK Pound |
1 |
Rs.78.28 |
|
Euro |
1 |
Rs.58.23 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
26 |
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 |
|