MIRA INFORM REPORT

 

 

 

Report Date :

19.07.2008

 

IDENTIFICATION DETAILS

 

Name :

VARIETY METAL CORPORATION

 

 

Registered Office :

747, Gali Kundewalan Ajmeri Gate, New Delhi – 110006

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Year of Establishment :

1983

 

 

IEC No.:

0506077721

 

 

PAN No.:

[Permanent Account No.]

ADMPJ4950D

 

 

Legal Form :

Sole Proprietory Concern.

 

 

Line of Business :

Trade and Supplier of Stainless Steel Sheets, Stainless Steel Pipes and tubes and Allied Products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

 

 

Maximum Credit Limit :

USD 250000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established concern having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. Nothing adverse reported.

 

The concern can be considered normal for business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Sumer Kanugo

Designation :

Proprietor

Contact No.:

91-9810369969, 91-9312210190

Date :

09.07.2008

 

 

LOCATIONS

 

Registered Office :

747, Gali Kundewalan Ajmeri Gate, New Delhi – 110006, India.

Tel. No.:

91-11-23238477 / 24511617

Fax No.:

91-11-23237016 / 24511617

Mob No.:

91-9810369969 / 9312210190

E-Mail :

varietymetal@hotmail.com

Website :

With Trade India

Area :

300sq ft

Location :

Owned

 

 

SOLE PROPRIETOR

 

Name :

Mr. Sumer Kanugo

Designation :

Proprietor

Date of Birth/Age :

55 years

Qualification :

Graduate

Experience :

30 Years

 

 

KEY EXECUTIVES

 

Name :

Mr. Naresh Kanugo

Designation :

CEO

Date of Birth/Age :

27 Years

Qualification :

Graduate

Experience :

5 Years

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Trade and Supplier of Stainless Steel Sheets, Stainless Steel Pipes and tubes and Allied Products

 

 

Products :

Stainless Steel Sheets, Plates, Pipes, Tubes, Flats, Round and Pipes fitting etc. and industrial raw-materials, Stainless steel sheets, Capillary tubes, circular pipes, circular tubes, dairy fittings, titanium pipes, seamless pipes, angles, stainless steel pipes, stainless steel tubes.

 

 

Exports :

 

Products :

Mid East Countries

Countries :

Stainless steel pipes and tubes.

 

 

Imports :

 

Products :

Raw-material

Countries :

Singapore and China

 

 

Terms :

 

Selling :

L/C and Cash

 

 

Purchasing :

L/C, Cash and Credit

 

GENERAL INFORMATION

 

Suppliers :

Ascent Pipes Company Private Limited (Sister Company)

 

 

Customers :
  • BILT Graphic and Paper Products Limited
  • Century Pulp and Paper
  • Shree Krishna Paper Mills Limited
  • Setia Paper Mills
  • JK Paper Mill Limited
  • Triveni Engg and Industries Limited
  • NTPC
  • Surya Roshini Limited
  • Rajasthan Atomic Power Corporation Limited., Kota
  • Pasupati Acrylon Limited
  • JCT, Phagwara
  • Bajaj Hindustan Limited
  • Star Paper Mills Limited
  • SSP Pvt. Limited
  • Nestle India Limited
  • Ranbaxy
  • Cargill India Private Limited.
  • Bharat Starch Industries
  • IOCL, Ludhiana
  • Abhishek Industries Limited

 

 

No. of Employees :

10

 

 

Bankers :

ICICI Bank Limited, Connaught Place, New Delhi – 110001

 

 

Facilities :

Yes

 

Banking Relations :

Satisfactory

Auditors :

 

Name :

D. T. Jindal Private Limited

Chartered Accountant

Tel. No.:

011-27674291

 

 

Associates :

 

Name of the Company :

Ascent Pipes Company Private Limited

Address :

234, Sector- 6 IMP, Manesar, Hariyana

Activities :

Manufacturer and Supplier of Stainless Steel Sheets, Stainless Steel Pipes and tubes and Allied Products.

No. of Employees :

25

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] S.P. Kanuja Capital A/C.

 

 

0.676

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

0.676

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.340

2] Unsecured Loans

 

 

2.999

TOTAL BORROWING

 

 

3.339

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

4.015

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

0.519

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.775

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

0.000

 

Sundry Debtors
 

 

0.000

 

Cash-in-hand
 

 

0.306

 

Bank Account
 

 

(1.320)

 

Other Current Assets
 

 

10.857

 

Loans & Advances
 

 

2.773

Total Current Assets
 

 

12.616

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

9.895

 

Provisions
 

 

0.000

Total Current Liabilities
 

 

9.895

Net Current Assets
 

 

2.721

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

4.015

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2008

Sales Turnover

 

 

51.708

Other Income

 

 

0.295

Total Income

 

 

52.003

 

 

 

 

Profit/(Loss) Before Tax

 

 

0.456

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

0.456

 

 

 

 

Expenditures :

 

 

 

 

Direct Expenses

 

 

0.336

 

Administrative Expenses

 

 

0.038

 

Raw Material Consumed

 

 

45.199

 

Salaries, Wages, Bonus, etc.

 

 

0.339

 

Payment to Auditors

 

 

0.011

 

Interest

 

 

0.425

 

Depreciation & Amortization

 

 

0.048

 

Other Expenditure

 

 

5.151

Total Expenditure

 

 

51.547

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2008

PAT / Total Income

(%)
 

 

00.87

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

00.88

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

03.27

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.67

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

19.57

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade Reference

 

 

Web Detail Attached :

 

Subject began its production in 1934, as the culmination of the vision and foresight of their founder. Today, they are the most prominent brand in the pipes and tubes industry, with a wide network of distributors and retailers. They are a renowned manufacturer and supplier of Stainless Steel Sheets, Stainless Steel Pipes and Tubes and allied products. The brand has been consistently delivering on its promises of longevity and strength. The means envisaged to achieve this are high technology and productivity and following of modern management practices. Overall, their concern seeks to scale heights of excellence in all that it does, in an atmosphere that encourages innovation and creativity.

 

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.42.78

UK Pound

1

Rs.85.51

Euro

1

Rs.67.90

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions