MIRA
INFORM REPORT
|
Report Date : |
23.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
H M STEELS LIMITED |
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Registered Office : |
Grain Marketdirba, District Sangrur-148035, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.06.1999 |
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Com. Reg. No.: |
16-22707 |
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CIN No.: [Company
Identification No.] |
U27106PB1999PLC022707 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLH11289F |
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PAN No.: [Permanent
Account No.] |
AADFH5943G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of GI Pipes, MS Pipes, Electric Poles and Scaffolding |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 1300000 |
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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 : |
Subject is a well established company having satisfactory track. It’s
trade relations are fair. Payments are reported as slow but correct. The company is doing well. It can be considered normal for business dealings at usual trade terms
and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Pankaj Bansal |
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Designation : |
Director |
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Contact No.: |
91-981640066 |
|
Date : |
17.07.2008 |
LOCATIONS
|
Registered Offic : |
Grain Marketdirba, District Sangrur-148035, Punjab, India |
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Tel. No.: |
91-1676-242427 |
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E-Mail : |
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Website : |
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Area : |
2000 sq. ft ( Rented)- |
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Corporate Office : |
SCO 904, NAC, Manimajra, Chandigarh-160101, India |
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Tel. No.: |
91-172-4660200/ 2737904/ 4660100/ 6539993/ 6539992 |
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Fax No.: |
91-172-2736904 |
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Works and Administration Office : |
Tirlokpur Road, Village Johron, Kala Amb, District Sirmour, Himachal
Pradesh, India |
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Tel. No.: |
91-1702-238244/ 45/ 46/ 47/ 238321 |
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Fax No.: |
91-1702-238247 |
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Tele fax : |
91-1702- 238245 |
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Branch Office : |
2888, Bazar Sirkiwalan Houz Quazi, New Delhi, India |
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Tel. No.: |
91-11-23277293/ 23261732 |
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Fax No.: |
91-11-23261732 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Megh Raj Garg |
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Designation : |
Chairman cum Managing Director |
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Address : |
New Graine Market, Dirba, District Sangrur, India |
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Date of Birth/Age : |
45 Years |
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Qualification : |
Graduate |
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Date of Appointment : |
22.07.2002 |
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Name : |
Mr. Ashok Kumar |
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Designation : |
Director |
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Address : |
New Graine Market, Dirba, District Sangrur, India |
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Date of Birth/Age : |
44 Years |
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Qualification : |
Graduate |
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Date of Appointment : |
22.07.2002 |
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Name : |
Mr. Rajnish Bansal |
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Designation : |
Director |
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Address : |
Sunami Gate, Sangrur, India |
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Date of Birth/Age : |
40 Years |
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Qualification : |
Graduate |
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Date of Appointment : |
22.07.2002 |
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Name : |
Mr. Pankaj Bansal |
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Designation : |
Director |
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Address : |
Dass, Sunami Gate, Sangrur |
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Date of Birth/Age : |
38 Years |
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Qualification : |
Graduate |
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Mobile No. : |
91-981640066 |
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Date of Appointment : |
22.07.2002 |
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Name : |
Mr., Ashok Kumar |
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Designation : |
Director |
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Address : |
M/S Krishna Iron Store, 97, Graine Market, Patran-147105, India |
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Date of Birth/Age : |
41 Years |
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Qualification : |
Graduate |
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Date of Appointment : |
18.09.2005 |
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Name : |
Mr. Rajinder Kumar |
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Designation : |
Director |
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Address : |
Shivpuri, Dhuri, India |
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Date of Birth/Age : |
41 Years |
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Qualification : |
Graduate |
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Date of Appointment : |
22.07.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2004
|
Names of Shareholders |
|
No. of Shares |
|
Suresh Kumar |
|
1510 |
|
Chanchal Singh |
|
5000 |
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Gurmit Singh |
|
4500 |
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Gurpair Singh |
|
5000 |
|
Hardev Singh |
|
5000 |
|
Jatinder Singh |
|
4500 |
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Manjit Singh |
|
5000 |
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Paramjit Singh |
|
5000 |
|
Raj Kumar |
|
1900 |
|
Avtar Singh |
|
15000 |
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Satnam Singh |
|
1900 |
|
Shamsher Singh |
|
5000 |
|
Sanjay Kumar |
|
2030 |
|
Subhash Chandar |
|
1950 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Bodies Corporate (not mentioned above) |
|
14.32 |
|
Directors or relatives of directors |
|
85.14 |
|
Others |
|
0.54 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of GI Pipes, MS Pipes, Electric Poles and Scaffolding |
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Products : |
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Exports : |
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Countries : |
USA and Dubai |
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Imports : |
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Countries : |
South Africa |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
GENERAL
INFORMATION
|
Customers : |
Wholesalers
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No. of Employees : |
400 (Office 200, Factory space 200) |
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Bankers : |
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Facilities : |
CC Rs. 500.000 Millions (Form Punjab National Bank) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Goel Satish and Company Chartered Accountant |
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Address : |
SCO 913, NAC Manimajra, Chandigarh-160101, India |
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Associates/Subsidiaries : |
Padmavati Steel Limited, Kalam |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10002810 |
Equity Shares |
Rs. 10/-
each |
Rs. 100.028
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
100.028 |
88.106 |
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|
2] Share Application Money |
|
12.524 |
24.596 |
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3] Reserves & Surplus |
|
149.810 |
77.386 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
262.362 |
190.088 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
|
305.160 |
263.698 |
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2] Unsecured Loans |
|
0.745 |
3.000 |
|
|
TOTAL BORROWING |
|
305.905 |
266.698 |
|
|
DEFERRED TAX LIABILITIES |
|
1.538 |
3.967 |
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Others |
|
0.000 |
0.001 |
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|
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|
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TOTAL |
|
569.805 |
460.754 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
192.713 |
209.134 |
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Capital work-in-progress |
|
3.136 |
7.673 |
|
|
|
|
|
|
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INVESTMENT |
|
0.040 |
0.000 |
|
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
|
224.725
|
194.836 |
|
|
Sundry Debtors |
|
279.129
|
94.390 |
|
|
Cash & Bank Balances |
|
50.051
|
30.102 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
95.486
|
69.386 |
|
Total
Current Assets |
|
649.391
|
388.714 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
252.034
|
128.553 |
|
|
Provisions |
|
24.426
|
17.232 |
|
Total
Current Liabilities |
|
276.460
|
145.785 |
|
|
Net Current Assets |
|
372.931
|
242.929 |
|
|
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|
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|
MISCELLANEOUS EXPENSES |
|
0.685 |
1.018 |
|
|
|
|
|
|
|
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TOTAL |
|
569.805 |
460.754 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
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Sales Turnover |
|
2257.827 |
1489.825 |
|
|
Other Income |
|
3.227 |
0.462 |
|
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Total Income |
|
2261.054 |
1490.287 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
78.849 |
48.575 |
|
|
Provision for Taxation |
|
9.154 |
4.468 |
|
|
Profit/(Loss) After Tax |
|
69.695 |
44.107 |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
1621.218 |
1109.419 |
|
|
Consumption of stores and spares parts |
|
188.662 |
94.578 |
|
|
Increase/(Decrease) in Finished Goods |
|
[48.695] |
[63.322] |
|
|
Salaries, Wages, Bonus, etc. |
|
4.341 |
4.787 |
|
|
Managerial Remuneration |
|
0.900 |
0.900 |
|
|
Payment to Auditors |
|
0.128 |
0.101 |
|
|
Interest |
|
29.466 |
22.520 |
|
|
Insurance Expenses |
|
0.750 |
0.661 |
|
|
Power & Fuel |
|
273.299 |
205.029 |
|
|
Depreciation & Amortization |
|
36.879 |
29.367 |
|
|
Other Expenditure |
|
75.257 |
37.672 |
|
Total Expenditure |
|
2182.205 |
1441.712 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
3.08 |
2.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.49 |
3.26 |
|
|
|
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
9.36 |
8.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.30 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
2.22 |
1.57 |
|
|
|
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|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.35 |
2.67 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
- Sujit
Electricals, Chandigarh
- Bansal Steel,
Chandigarh
- Surya
Scaffholding, Chandigarh
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate identity
number of the company |
U27106PB1999PLC022707 |
|
Name of the
company |
H M STEELS LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Grain Marketdirba, District Sangrur-148035, Punjab, India |
|
Type of charge |
Book Debts Movable Property Immovable
Property |
|
Particular of
charge holder |
Punjab National Bank, Nahan, Nahan-173021, Himachal Pradesh, India |
|
Nature of
description of the instrument creating or modifying the charge |
Hypothecation of
Goods and Book Debts to secure Cash Credit Facility Hypothecation of
Current Assets Hypothecation of
Movable assets forming part of Fixed / Block Assets. |
|
Date of
instrument Creating the charge |
24.01.2007 |
|
Amount secured by
the charge |
Rs. 25.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 11.75% p.a. Terms of
Repayment Repayable on
Demand Margin Stocks : 25% Book Debts : 35% Extent and Operation
of the charge 100% |
|
Short particulars
of the property charged |
Limit to be
secured by hypothecation of current movables assets and hypothecation of all
stocks of Raw Materials, Stock in process, Finished Goods, Consumable Stores
and Spares, present and future book debts of the company and immovable
property of the company as per the title deed register of the bank attached
and also secured by Guarantee of Dirba Pipes Private Limited and Seth Kapoori
Mal Packaging and Allied Private Limited |
|
Name of the company |
H M STEELS LIMITED |
|
1) Date and description of instrument creating the change |
Charge on all
block of movable assets/ immovable forming par of fixed/ current block assets/
existing/ future dated 05.05.2004 Further modified by way of FCTL and FCI
agreements dated 04.03.2005 Further modified by first chare hypothecation ,
hypothecation of Movable assets Forming part of Fixed / Block Assets dated
09.07.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 199.100
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 |
|
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interst
Margin and other Terms and Conditions as per the individuals charges filed
with ROC |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank, Nahan (H. P) |
|
6) Date and brief description of instrument modifying the charge |
Agreement for
Foreign Currency Term Loan and Agreement for
Foreign Currency Loan Dated 06.09.2005. Bank Letter Dated
06.09.2005 |
|
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. |
FCTL limit
increased to the extent of USD 2.600 Millions equivable to Rs. 114.400
Millions form existing limit of USD 2.400 Millions equivalent to rs. 108.000
Milions This loan is for
the purpose of conversion or Rupees Terms Loan and to avail benefit of lower
interest. FCL limit
increased to the extent of USD 1.000 Million equivalent to Rs. 44.000
Millions form existing limit of USD 0.800 Million equivalent to Rs. 36.000
Millions. This loan is for
the purpose of meeting domestic working capital requirements and to avail
benefit of the lower interest. Rate on Interest
is at 6 months LIBOR +_ 0.350 bps% Other terms and
conditions remaining the same. |
AS PER WEBSITE
Profile:
Subject an ISO: 9001-2000 Certified Company, a member of H.M.
Group, was incorporated in the year of 1999. Subject is a well established M
.S. and Galvanized Pipes manufacturing company. The Company is located at
Industrial Town of Kala-Amb, Tirlokpur Road District Sirmour, Himachal Pradesh
(India). The group is managed by a dynamic and dedicated team of entrepreneurs
committed to ensure quality and excellence in manufacture of M.S.and G.I. steel
Pipes. The Company is also manufacturing Structural Tubes, Hollow Section,
Rectangular and Square Pipes and Swaged Steel Tubular Poles. The Company is
manufacturing M.S. and G.I. pipes confirming to IS:1239 (Pt-1) under BIS
License no:- CM/L 9472894 from tested HR Coil \ Skelp (IS:10748) with ERW
process. The Company also manufactures its product as per IS:1161, IS:2713,IS:2830.
The Company possesses DGSandD Rate Contract for G.I. pipes. The company has a
capacity to produce 100000 TPA and having an annual turnover of approx.
Rs.3000.000 Millions
The Company has a well trained and experienced staff and it
has its own fully equipped in- house Testing Laboratory. The Company has
developed and implemented Quality Management System according to ISO:
9001-2000.
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.42.71 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.68.02 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|