MIRA
INFORM REPORT
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Report Date : |
04.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
GLOBE STEELS PRIVATE LIMITED |
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Registered Office : |
C-5, Industrial Estate, Ambattur, Chennai – 600 058, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.09.1986 |
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Com. Reg. No.: |
18-13424 |
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CIN No.: [Company
Identification No.] |
U27104TN1986PTC013424 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEG00430D |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Manufacturer of Cold Finished Bright and Centerless Peeled and Ground
Bars. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 190000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Mr. Mohan, Accountant of the company confirmed the details. He denied
audited Financial Statements. Subject is an established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. The company can be considered good for normal business dealings at
usual trade terms and conditions. Profit and Loss A/C in summary format may follow, soon. |
INFORMATION PARTED
BY
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Name : |
Mr. Mohan |
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Designation : |
Account Manager |
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Date : |
01.07.2008 |
LOCATIONS
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Registered Office / Factory 1: |
C-5, Industrial Estate, Ambattur, Chennai – 600 058, Tamil Nadu, India
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Tel. No.: |
91-44-26257561 / 26231025 |
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Mobile No.: |
91-98381038456 |
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Fax No.: |
91-44-26231024 / 26257561 |
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E-Mail : |
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Website : |
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Area: |
2000 Sq.fts (Office) 24000 Sq.fts (Factory) |
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Location: |
Owned |
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Factory 2 : |
No. 6/1 & 6/2,
Vanagaram Main Road, Ayanambakkam, Chennai -
602 095, Tamil Nadu, India. |
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Tel No.: |
91-44-2653 3467 / 2653 1208 |
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Mobile No: |
91-9381038456 / 91-9884031511 |
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Fax No.: |
91-44-2625 3107 |
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E-Mail: |
DIRECTORS
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Name : |
Mr. R Sridhar |
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Designation : |
Director |
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Date of Birth/Age : |
54 years |
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Qualification : |
S Y B Com |
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Mobile No.: |
91-9381038456 |
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Date of Appointment ; |
16.09.1986 |
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Name : |
Mr. Gajanand Midi |
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Designation : |
Director |
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Date of Birth/Age : |
50 years |
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Qualification : |
B. Com |
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Mobile No.: |
91-9884031511 |
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Date of Appointment ; |
16.09.1986 |
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Name : |
Mr. Padam Modi |
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Designation : |
Director |
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Date of Appointment : |
16.09.1986 |
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Name : |
Mr. Kalyani Raghavan |
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Designation : |
Director |
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Date of Appointment |
03.05.1996 |
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Name : |
Mrs. Kusum Modi |
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Designation : |
Director |
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Date of Appointment |
03.05.1996 |
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Name : |
Mrs. Rajkumari Modi |
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Designation : |
Director |
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Date of Appointment |
03.05.1996 |
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Name : |
Mr. Karpagavalli Sridhar |
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Designation : |
Director |
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Date of Appointment |
03.05.1996 |
KEY EXECUTIVES
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Name : |
Mr. R Thamizhvanan |
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Designation : |
Company Secretary |
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Address : |
# 22, (Old # 27), Flat No. C – 4, Vaidyaram Street, T Nagar, Chennai –
600 017, Tamil Nadu, India |
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Tel No.: |
91-44-24326484 |
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Mobile No.: |
91-9841183025 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Category (As on 31.03.2007) |
Percentage |
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Directors or relative of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cold Finished Bright and Centerless Peeled and Ground
Bars. |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
Germany |
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Terms : |
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Selling : |
Credit (30-90 days) , Depend on customers |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Customers : |
End users · Ashok Leyland Ancillaries. · Lucas TVS Limited · Delphi TVS Diesel Systems Limited · Rane Madras Limited · Royal Enfield Limited · Rane-TRW Steering Systems Limited · Royal Enfield Motors Limited · Brakes India Ancillaries. · TVS Motors Ancillaries. · Sundaram Fasteners Ancillaries. · Mico Ancillaries. |
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No. of Employees : |
125 (25 in Office and 100 in Factory) |
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Bankers : |
Union Bank of India Address: SSI-TSK Nagar Branch, R 32 TNHB Commercial Complex, 120 Feet
Road, Chennai – 600 050, Tamil Nadu, India |
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Facilities : |
· C/C Limit Rs. 0.250 million · L/C Limit Rs. 20.000 millions · Bill Discount Rs. 5.000 millions |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
S Sankaran and Company Chartered Accountants |
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Address 1: |
89, Fourth Avenue, Ashok Nagar, Chennai – 600 083, Tamil Nadu, India |
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Address 2: |
Flat H, Kulathungan Apartments, No. 5, Dr. Natesan Road, Ashok Nagar,
Chennai – 600 083, Tamil Nadu, India |
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Tel No.: |
91-22-24895341 |
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Associates/Subsidiaries : |
Globe Components Private Limited {CIN : - U29309TN1996PTC036312} Address: SP-85 Industries Ambattur Activity: Manufacturer of Automobile Components. |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000 |
Equity Shares |
Rs. 100/-
each |
Rs. 7.500
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 100/-
each |
Rs. 5.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
5.000 |
5.000 |
5.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
32.117 |
26.688 |
22.628 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
37.117 |
31.688 |
27.628 |
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LOAN FUNDS |
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1] Secured Loans |
22.764 |
22.718 |
25.545 |
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2] Unsecured Loans |
12.282 |
7.854 |
6.773 |
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TOTAL BORROWING |
35.046 |
30.572 |
32.318 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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OTHERS |
0.001 |
0.001 |
0.001 |
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TOTAL |
72.164 |
62.261 |
59.947 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
17.657 |
15.168 |
15.420 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
3.000 |
3.000 |
3.000 |
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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 |
13.098
|
17.147 |
13.218 |
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Sundry Debtors |
51.000
|
45.689 |
37.594 |
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Cash & Bank Balances |
7.066
|
6.640 |
8.065 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
5.211
|
7.221 |
5.872 |
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Total
Current Assets |
76.375
|
76.697 |
64.749 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
25.077
|
32.813 |
23.431 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
25.077
|
32.813 |
23.431 |
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Net Current Assets |
51.298
|
43.884 |
41.318 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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GOODWILL |
0.209 |
0.209 |
0.209 |
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TOTAL |
72.164 |
62.621 |
59.947 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
218.299 |
197.873 |
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Other Income |
|
0.000 |
0.000 |
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Total Income |
|
218.299 |
197.873 |
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Profit/(Loss) Before Tax |
|
8.578 |
5.639 |
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Provision for Taxation |
|
2.650 |
0.000 |
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Profit/(Loss) After Tax |
|
5.928 |
5.639 |
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Total Expenditure |
|
209.721 |
192.234 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.72
|
2.85 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
3.93
|
2.85 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.84
|
5.94 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
5.94 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.62
|
2.00 |
2.02 |
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Current Ratio (Current Asset/Current Liability) |
|
3.05
|
2.34 |
2.76 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCES:-
·
Rana Groups of Company, Chennai– 600 050, Tamil Nadu, India
·
Delphi TVS, Chennai– 600 050, Tamil Nadu, India
·
India Piston Limited, Chennai – 600 050, Tamil Nadu, India
FORM 8:-
|
Corporate
identity number of the company |
U27104TN1986PTC013424 |
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Name of the
company |
GLOBE STEELS
PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
C-5, Industrial Estate, Ambattur, Chennai – 600 058, Tamil Nadu, India |
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This form is for |
Modification of
charge |
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Type of charge |
· Immovable Property · Book Debts · Movable Property · Floating Charge |
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Particular of
charge holder |
Union Bank of
India Address: SSI –TSK
Nagar Branch, R 32, TNHB Commercial Complex, 120 Feet Road, Chennai – 600
050, Tamil Nadu, India E-mail: abc1224@gmail.com |
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Nature of
instrument creating charge |
· Hypothecation (goods) agreement (SD -03) for Rs. 52.000 millions · Hypothecation Agreement of goods and Debts (SD-06) for ) for Rs. 25.000 millions · Letter of hypothecation of bills (SD- 17) for Rs. 5.000 millions · Hypothecation (goods) agreement (SD-03) for Rs. 20.000 millions · Confirmation letter for extension of EM executed by M/S Globe Steels Private Limited · Confirmation letter for extension of EM executed by M/S Globe Steels Private Limited to secure the credit facilities enjoyed by globe components Private Limited |
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Date of
instrument Creating the charge |
07.04.2007 |
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Amount secured by
the charge |
RS.52.000
millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest : CC(H) : BPLR
-1.00% i.e. 11.50% p.a with monthly rests. ASB : BPLR -1.00%
i.e 11.50 %p.a with monthly rests. Terms of Repayment : As per the
repayment schedule determined by the bank from time to time. Margin: CC(H)/ SOD (BD) :
25% ASB : 10% LG : 25% Inland LC/ Import
LC: 25% Extent and Operation of the charge : As per the
instruments executed and as mentioned in column No.14 of this form. Others : All other terms
and conditions as per the sanction letter and instruments executed on
07.04.2006. |
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Particulars of
the present modification |
By this
modification: The credit
facilities enjoyed by the company has been modified from Rs. 54.000 millions
to Rs. 52.000 millions only. |
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Name of the company |
GLOBE STEELS PRIVATE LIMITED |
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Presented By |
The Manager, Union Bank of India SSI Branch, Mogappir, Chennai – 600 050 |
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1) Date and description of instrument creating the change |
30.08.1997 Cash credit DPN for Rs. 3.000
millions S-3 Hypothecation
of goods Ag for Rs. 3.000 millions Inland / Import / LC Dp note for Rs.
10.000 millions Letter of
hypothecation Letter of
hypothecation of book debts for Rs. 10.000 millions Letter of G Tee No specific doc.
Executed lt. Rs. 2.000 millions Collateral Security S-3 Hypothecation
Ag for Rs. 17.000 millions. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 17.000
millions (CC Lt.3.000
millions + ASB Lt. 10.000+ ILC /FLC 2.000 millions +Lt Gtee Rs. 2.000
millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Raw materials : Consumables
, Goods in Process , finished goods including all products , goods and
movable property of any kind belonging to the company which now or
hereinafter from time to time during the security shall be brought in stored
or be in or about the company premises or godowns at SP 85 Industrial Estate,
Chennai -600 058 and / or transit or with the company’s agents wherever else
they may be company’s present and future book debts outstanding moneys
receivables, claims, bills contracts, securities, investment, rights and
assets. All existing / proposal plant and machinery / other fixed assets as
collateral security. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
ASB –ROI @3.75%
over PLR Min 17.25% Margin 10% CC- ROI@ 3.75% over
PLR Min 17.25% Margin 25% ILC / FLC :
Margin 25% Lgtee Margin 25% Other terms and
conditions are as per agreement Int. charges /
commission and other levies as per banks policies and subject to revision
from time to time as per bank / RBI’s directives. |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank of
India SSI Branch,
Mogappair, Chennai – 600 050 |
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6) Date and brief description of instrument modifying the charge |
24.08.2005 CC Hypothecation Stock Debts Rs. 20.000
millions · Hypothecation Ag of goods and debts Ag SD -06 ASB Lt. Rs. 10.000 millions (W/W CP Rs.
0.500 million) · Hypothecation of book debts Ag · Ltr of hypothecation of bills-SD Ltr of guarantee Lt. 4.000 millions · No documents executed ILC /Import LC -90/180 Days Lt. Rs. 20.000
millions · Hypothecation of goods Ag. Over all for all limits Rs. 54.000
millions · Hypothecation goods AG · Lts of extn of EM |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The Bank has
reviewed the overall limit and the position of the renewed limit is as under
;
Consequently the
first charge on the assets as per sl. 3 above including first charge on the factory land and building , plant
ands Machinery at SP-85, AIE Chennai – 58 and C -5, Indl. Estate , Ambattur ,
towards which ltrs of extn of EM has been obtained . The charge stands
modified from Rs. 53.650 millions to Rs. 54.000 millions the current assets
as per sl. 3 above are mainly stored at C-5 Indl estate, ambattur, Chennai. The land and
building offered as collateral are common for this company advances as well
as another sister / associate company M/s. Globe Components P. Ltd. Theses
first chare are securing the due repayment to the bank of all amount advanced
and all the amounts under the various
facilities granted or to be granted by the bank to the company together with
interest, compound interest and /or additional interest in case of default,
exchange fluctuations, costs, charges, expenses, etc. |
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WEBSITE DETAILS:-
Company Profile:-
Since its inception in 1990, the company has grown to be a dependable source for cold drawn, centreless peeled and centreless ground steel bars, with an annual capacity of 24000 tons. With over 26 years of experience in the steel trade, initially as a dealer and later a manufacturer of various grades of alloy and special steels, they have enjoyed the confidence of major automotive and industrial companies.
Infrastructure
· 2 Units of 38400 sq feet of land. 28000 sq feet of covered area. Entire shop floor under EOT overhead Crane.
· 600 HP Power.
· 250 HP Captive Power.
· Complete machining facilities such as Cold Draw Benches, Wire Drawing Bull Blocks, Coil Straightening and Cut-off Machines, Straightening Machines, Peeling Machines and Centerless Grinding Machines.
Facilities :-
· Bar Peeling Machine
· Bar Drawing Machine
· Bar Grinding Machine
· Bar Straightening Machine
· Magnetic Crack Detection Machine - 2 nos - Fluorescent and UV Lamp.
· Sectional Straightening Machine
· Coil Drawing Bull Block
· Coil Straightening / Cut-off Machine
· Chemical and Mechanical Testing Laboratory
Products :-
They supply cold drawn, centreless peeled and centreless ground bars of low, medium Carbon Steels, free cutting Steels, low and high alloy Steels and Stainless Steels. Their raw material sources are reputed Steel plants like Mukand Limited, Usha Martin Limited, Indian Seamless and Metal Tubes Limited, Ferro Alloys Corporation Limited, who are themselves major exporters to Europe and the United States. They also import from M/s. Saarstahl, Germany, which is one of the leading steel plants in the world.
Subject has the capacity to manufacture rounds, hexagonal, square, flat and other special profile cross-sections as per customer requirements. They have their own Metallurgical Lab and provide comprehensive Physical and Chemical analysis of their products. They also provide Magnetic Particle Inspection facility to ensure that products supplied by them are free from cracks and surface defects.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.30 |
|
UK Pound |
1 |
Rs.8613 |
|
Euro |
1 |
Rs.68.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|