MIRA INFORM REPORT
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Report Date : |
07.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHAH BROTHERS ISPAT PRIVATE LIMITED |
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Registered Office : |
406, Giriraj, Sant
Tukaram Road, Carnac Bunder, Mumbai - 400 009, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.08.2004 |
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Com. Reg. No.: |
11-147842 |
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CIN No.: [Company Identification No.] |
U27101MH2004PTC147842 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
MUMS45609E |
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PAN No.: [Permanent
Account No.] |
AAAFS1089F |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Agents, Distributors, Warehouse, Traders, Stockists, Importers, Exporters, Manufacturers, Processors and for that purpose Buy, Sell, Market, Distribute or otherwise deal in Ferrous and Non-Ferrous Metal. |
RATING & COMMENTS
|
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 2800000 |
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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 successor of 40 years old business of Shah Brothers & Company Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financials position of the company is good. Payments are correct and as per commitments. The company is doing very well. It can be regarded as a promising business partner in a medium to long – run. |
INFORMATION PARTED
BY
|
Name : |
Mr. Atmaram |
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Designation : |
Accountants |
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Contact No.: |
91-9867669916 |
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Date : |
26.06.2008 |
LOCATIONS
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Registered Office : |
406, Giriraj,
Sant Tukaram Road, Carnac Bunder, Mumbai - 400 009, Maharashtra, India. |
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Tel. No.: |
91-22-23445445 / 6 / 3 / 2348 0445 |
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Fax No.: |
91-22-23436928 / 2348
6928 |
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E-Mail : |
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Location: |
Leased |
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Factory : |
404, Giriraj , S. T. Road, Iron Market, Mumbai – 400 009, Maharashtra,
India |
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Tel. No.: |
91-22-23445445 (5 Lines) |
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Fax No.: |
91-22-23436928 |
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E-Mail : |
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Warehouse 1 : |
L-5 Taloja Industrial Area, MIDC, Taluka- Panvel, district – Raigad,
Maharashtra, India |
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Location: |
Owned |
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Warehouse 2 : |
1425/1426/1427 Kalamboli Warehouse Complex, Kalamboili, Navi Mumbai –
410 218, Maharashtra, India |
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Location: |
Owned |
DIRECTORS
|
Name : |
Mr. Chinubhai Himmatlal Shah |
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Designation : |
Director |
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Address : |
31, Anupam, 11, Manav Mandir Road, Walkeshwar, Mumbai – 400 006,
Maharashtra |
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Date of Birth/Age : |
13.03.1936 |
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Qualification : |
SSC |
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Date of Appointment : |
04.08.2004 |
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Name : |
Mr. Pravin Pranlal Mehta |
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Designation : |
Director |
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Address : |
Flat No. 14, 2nd Floor, Nirmala Mahal, 12A Bomenji Point
Road, Mumbai – 400036 |
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Date of Birth/Age : |
31.08.1935 |
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Qualification : |
SSC |
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Date of Appointment : |
04.08.2004 |
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Name : |
Mr. Sanjiv Pravin Mehta |
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Designation : |
Director |
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Address : |
Flat No. 14, 2nd Floor, Nirmala Mahal, 12A Bomenji Point
Road, Mumbai – 400036 |
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Date of Birth/Age : |
14.12.1963 |
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Qualification : |
B.Com |
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Date of Appointment : |
04.08.2004 |
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Name : |
Mr. Dharmesh Chinubhai Shah |
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Designation : |
Director |
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Address : |
31, Anupam, 11, Manav Mandir Road, Walkeshwar, Mumbai – 400 006,
Maharashtra |
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Date of Birth/Age : |
25.06.1964 |
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Qualification : |
B.Com |
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Date of Appointment : |
04.08.2004 |
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E-Mail: |
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Name : |
Mr. Rajesh Chinubhai Shah |
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Designation : |
Director |
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Address : |
31, Anupam, 11, Manav Mandir Road, Walkeshwar, Mumbai – 400 006,
Maharashtra |
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Date of Birth/Age : |
10.07.1965 |
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Qualification : |
B.Com |
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Date of Appointment : |
04.08.2004 |
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E-mail: |
KEY EXECUTIVES
|
Name : |
Mr. Atmaram |
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Designation : |
Accountants |
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Contact No.: |
91-9867669916 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of
Shareholders [As on 31.03.2007] |
|
No. of Shares |
|
Mr. Ranjnbala P. Mehta |
|
90000 |
|
Ms. Heena S. Mehta |
|
90000 |
|
Mr. Chinubhai H. Shah |
|
144000 |
|
Mr. Pravin P. Mehta |
|
135000 |
|
Mr. Sanjiv P. Mehta |
|
135000 |
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Mr. Dharmesh C. Shah |
|
153000 |
|
Mr. Rajesh C. Shah |
|
153000 |
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Total
|
900000 |
Equity Share Breakup (Percentage of Total Equity) :- [As on 31.03.2007]
|
Category |
Percentage |
|
Directors or relative of directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Agents, Distributors, Warehouse, Traders, Stockists, Importers, Exporters, Manufacturers, Processors and for that purpose Buy, Sell, Market, Distribute or otherwise deal in Ferrous and Non-Ferrous Metal. |
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Products : |
·
Ferrous ·
Non -
Ferrous Metal ·
Boiler
Quality Plates ·
High Tensile
Steel Plate ·
Alloy Steel
Plate ·
Mild Steel
Products ·
HR Coils |
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Exports : |
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Products : |
Ferrous and Non Ferrous Metal |
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Countries : |
UAE, Spain, Singapore |
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Imports : |
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Products : |
Ferrous and Non Ferrous Metal |
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Countries : |
China, Israel |
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Terms : |
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Selling : |
L/C, Credit (30 days) |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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No. of Employees : |
72 (50 in Office and 22 in Warehouse) |
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Bankers : |
v Union Bank of
India , Nariman Point v Bank of
India, Fort v Bank of Baroda ,
Cuffe Parade Branch v ICICI Bank v ABN Amro Bank v Central Bank of
India, Corporate Finance Branch, M G Road, Fort , Mumbai – 400 023,
Maharashtra v Standard Chartered Bank, 23-25 M G Road, Mumbai -400 001, Maharashtra |
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Facilities : |
Secured
Loan Union Bank of India – Rs. 7.167 Bank of India – Rs. 14.255 Secured by hypothecation of stocks and book debts and personal
security and guarantee of all director Motor Car Loan (ICICI Bank) Rs. 0.467 Motor Car Loan (ABN Amro Bank) Rs. 0.595 Secured against hypothecation of respective vehicles Total – Rs. 22.485 Millions |
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Banking
Relations : |
Good |
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Auditors : |
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Name 1: |
H M Mody & Company Chartered Accountant |
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Address: |
12, Indus Court, ‘A’ Road, Churchgate, Mumbai – 400020, Maharashtra,
India |
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Tel. No.: |
91-22-22046924 |
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Fax. No.: |
91-22-22873255 |
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Name 2: |
G R Mody and Company Chartered Accountants |
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Associates/Subsidiaries : |
· Mesco Steel · Peace Fort Chemical India Engineering Private Limited Address: Worli, Mumbai, Maharashtra, India
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CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs. 10/-
each |
Rs. 9.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
9.000 |
9.000 |
9.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
537.120 |
370.426 |
266.957 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
546.120 |
379.426 |
275.957 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7.118 |
15.236 |
22.486 |
|
|
2] Unsecured Loans |
63.657 |
101.719 |
81.019 |
|
|
TOTAL BORROWING |
70.775 |
116.955 |
103.505 |
|
|
DEFERRED TAX LIABILITIES |
0.549 |
0.383 |
0.206 |
|
|
|
|
|
|
|
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TOTAL |
617.444 |
496.764 |
379.668 |
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APPLICATION OF FUNDS |
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|
|
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|
|
|
|
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|
FIXED ASSETS [Net Block] |
39.295 |
34.815 |
31.870 |
|
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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INVESTMENT |
0.000 |
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 |
1135.249
|
811.457 |
449.891 |
|
|
Sundry Debtors |
978.178
|
762.243 |
461.063 |
|
|
Cash & Bank Balances |
663.107
|
235.043 |
122.072 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
216.849
|
91.106 |
29.766 |
|
Total
Current Assets |
2993.383
|
1899.849 |
1062.792 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2277.500
|
1367.436 |
697.154 |
|
|
Provisions |
137.806
|
70.573 |
17.985 |
|
Total
Current Liabilities |
2415.306
|
1438.009 |
715.139 |
|
|
Net Current Assets |
578.077
|
461.840 |
347.653 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.072 |
0.109 |
0.145 |
|
|
|
|
|
|
|
|
TOTAL |
617.444 |
496.764 |
379.668 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
5021.775 |
3978.614 |
1640.491 |
|
|
Other Income |
323.792 |
361.566 |
100.441 |
|
|
Total Income |
5345.567 |
4340.180 |
1740.932 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
253.151 |
156.234 |
49.148 |
|
|
Provision for Taxation |
85.383 |
52.765 |
18.191 |
|
|
Profit/(Loss) After Tax |
167.768 |
103.469 |
30.957 |
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
4865.529 |
4044.176 |
1390.162 |
|
|
Administrative Expenses |
188.487 |
109.584 |
65.418 |
|
|
Interest |
36.725 |
27.669 |
34.853 |
|
|
Depreciation & Amortization |
1.639 |
2.480 |
0.432 |
|
|
Other Expenditure |
0.036 |
0.037 |
200.919 |
|
Total Expenditure |
5092.416 |
4183.946 |
1691.784 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.20 |
0.34 |
0.38 |
|
Long Term Debt-Equity Ratio |
0.18 |
0.28 |
0.30 |
|
Current Ratio |
1.26 |
1.35 |
1.44 |
|
TURNOVER
RATIOS |
|||
|
Fixed Assets |
125.18 |
115.21 |
75.54 |
|
Inventory |
5.11 |
6.21 |
5.42 |
|
Debtors |
5.72 |
6.41 |
5.29 |
|
Interest Cover Ratio |
6.31 |
4.40 |
2.33 |
|
Operating Profit Margin(%) |
6.08 |
5.22 |
5.33 |
|
Profit Before Interest And Tax Margin(%) |
6.05 |
5.16 |
5.31 |
|
Cash Profit Margin(%) |
3.40 |
2.70 |
1.93 |
|
Adjusted Net Profit Margin(%) |
3.37 |
2.64 |
1.91 |
|
Return On Capital Employed(%) |
54.07 |
46.16 |
34.12 |
|
Return On Net Worth(%) |
36.26 |
31.55 |
16.85 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 04.08.2004, to take over the running business of M/s. Shah Brothers and Company a partnership firm with over 40 year in business. The transactions for conversion was made under part IX of the companies Act 1956.
The company’s performance for the year from 04.08.2004 was good, the company achieved higher turnover and profit compared to its previous entity M/s. Shah Brothers and Company
The outlook for steel industry and overall demand for special quality steel which the company had created a niche for itself.
FORM 8:-
|
Name of the
company |
SHAH BROTHERS ISPAT PRIVATE LIMITED |
|
1) Date and description
of instrument creating the change |
The borrower
(company) has by depreciation created the hypothecation of stock and book
debts in favour of the Standard
Chartered Accountants Bank on
25.05.2005 The certified copy
of the agreement of hypothecation of stocks and book debts is enclosed. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 235.000
millions |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation of
all the stock in trade both present and future consisting of raw materials,
finished goods, goods in process of manufacturing and other merchandise
whatsoever being movable properties now or at any time hereafter belonging to
the borrower or at the borrowers disposal and now or at any time and from
time to time hereafter stored or be stored or brought into or upon or in
course or be stored or brought into or upon or in course of transit to the
borrower factory or premises or at any other place
whatsoever and whosesoever on the
borrower possessions or occupation or at any other premises or place. All the present
and future book debts , outstanding moneys receivables, claim and bills which
are now due and owing or which may at any time hereafter during the
continuance of this security become due and owing to the borrower in the
course of its business by any person, firm, company or body corporate or by
the Government Departments or office or any Municipal or local or public
or semi Government body or authority
or any body corporate or
undertaking or project whatever in the public sector. |
|
4) Gist of the terms
and conditions and extent and operation of the charge. |
Security letter
of credit facility granted to charge
operate as first and paramount charge in favour of the bank as security for all dues Term Loan
Facility. |
|
5) Name and
Address and description of the person entitled to the charge. |
Standard
Chartered Bank 23-25 M G Road,
Mumbai -400 001 |
|
Corporate
identity number of the company |
U27101MH2004PTC147842 |
|
Name of the
company |
SHAH BROTHERS
ISPAT PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
406, Giriraj,
Sant Tukaram Road, Carnac Bunder, Mumbai - 400 009, Maharashtra, India. |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable
property |
|
Particular of
charge holder |
Central Bank of
India Address:
Corporate Finance Branch, M G Road, Branch, Fort, Mumbai – 400 023,
Maharashtra, India |
|
Nature of
instrument creating charge |
Declaration and
undertaking and memorandum |
|
Date of
instrument Creating the charge |
05.02.2007 |
|
Amount secured by
the charge |
Rs. 2.863
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : As per Agreement Terms of Repayment : As per Agreement Margin : As per Agreement Extent and Operation of the charge : As per Agreement Others : As per Agreement |
|
Short Particulars
of the property charged |
As per
Declaration and Undertaking |
|
Particulars of the
present modification |
By the present
modification the memorandum and declaration and undertaking on the same Limit of Rs. 2862.500 millions
for all consortium Bank. |
FIXED
ASSETS
v Leasehold Land
v Computer
v Furniture and Fixture
v Office Equipment
v Motor Car
v Godown
v Plant and Machinery
TRADE REFERENCES:-
· L and T, Hazira , Ahmedabad
· Tharmex Industries, Pune
· Suzlon Infrastructure Private Limited, Baroda, Pune
· Suzlon Energy, Pune
WEBSITES DETAILS:-
Business
Subject is the
largest distributor of Boiler Quality Plates in the sub continent. They are
authorized stockist for Mittal Steel, Romania (SIDEX) and Alchevsk Iron and
Steel, Ukraine.
They also offer Mild
Steel Plates, Alloy Steel Plates, Hot Rolled Coils, Non-Alloy Steel Slabs and
Chequered Plates.
Their associates
M/s. Peacefort Chem-Ind. Engg Private Limited offer B.Q. Plate profiles in
circles, rings, squares as per desired requirements and are the largest
facility of its kind in the sub continent.
Subject is the first
steel trading organisation in India to be awarded ISO 9001-2000 certified by
Lloyd's Register Quality Assurance (LRQA) in 2004.
Achievements and
Highlights
Pioneered the import
of Boiler Quality Plates / Mild Steel Plates from :
· M/s. Sidex, Romania.
· M/s. Azovstal, Ukraine.
· M/s. Alchevsk Iron and Steel Works, Ukraine
· M/s. Wuyang Steel, China and
· M/s. Angang Iron and Steel, China.
The first steel
trading organisation to be awarded ISO 9001-2000 certificate by Lloyd's Register
Quality Assurance in the sub continent.
The first steel
trading company to be granted private bonded warehouse facility by Bombay
Customs.
Authorised Stockists
of M/s. Mittal Steel, Romania and M/s. Alchevsk Iron and Steel Works, Ukraine.
Maintained
leadership position as largest distributor and stockists for B.Q. Plates in the
country.
Volume of steel
handled for the year 2006-07 : 250,000 MT.
Their Associates
M/s. Peacefort Chem-Ind Engg. Private Limited. the largest B.Q. Plate Profile
Manufacturing facility in the country and are an IBR approved workshop.
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.43.21 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.67.92 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|