MIRA
INFORM REPORT
|
Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SHIVAM IRON AND STEEL COMPANY LIMITED |
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Registered Office : |
Kalyani Apartment, 1st Floor, Gandhi Chowk, Giridih – 815
301, Jharkhand. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.09.1998 |
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Com. Reg. No.: |
8594 |
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CIN No.: [Company
Identification No.] |
U00331JH1998PLC008594 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RCHS00811G |
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PAN No.: [Permanent
Account No.] |
AAECS1926J |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturer and Exporter of Ferro Silicon, Ferro Crome, Ms Steel
Ingot, SIS CON, Ms Angles, Coal Based Dri (Sponge Iron), Billets, TMT Bars,
Silicon Manganese |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Kalyani
Apartment, 1st Floor, Gandhi Chowk, Giridih – 815 301, Jharkhand,
India |
|
Tel. No.: |
91-22-6532250073 |
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Fax No.: |
91-22-229326 |
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E-Mail : |
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Website : |
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Factory Office : |
Dukhia Mahadev Temple Road, At Jambad, PO: Udnabad, Giridih – 815 301,
Jharkhand |
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Tel. No.: |
91-6532 244182 / 244027 |
|
Tele Fax No.: |
91-6532 244082 |
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|
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Corporate Office |
Chowk Bazar, Opposite Circuit House, Giridih – 815 301 |
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Tel. No.: |
91-6532 226182 / 222 951 / 229326 |
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Fax No.: |
91-6532 225951 |
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Branch: |
20 B, Abdul Hameed Sireei (British India Street ), 7th Floor,
Block 7- A, Kolkata – 700 069, West Bengal, India |
DIRECTORS
|
Name : |
Mr. G. K. Agarwal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Binod Kumar Agarwal |
|
Designation : |
Director |
|
Address : |
Chowk Bazar, Giridih – 815 301, Jharkhand, India |
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Date of Birth/Age : |
03.01.1963 |
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Date of Appointment : |
21.09.1998 |
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Name : |
Mr. Pramod Kumar Agarwal |
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Designation : |
Director |
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Address : |
Chowk Bazar, Giridih – 815 301, Jharkhand, India |
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Date of Birth/Age : |
26.07.1966 |
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Date of Appointment : |
16.09.1998 |
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Name : |
Mr. Arun Kumar Agarwal |
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Designation : |
Director |
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Address : |
Chowk Bazar, Giridih – 815 301, Jharkhand, India |
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Date of Birth/Age : |
01.08.1960 |
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Date of Appointment : |
26.07.2004 |
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Name : |
Mr. Shiv Kumar Agarwal |
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Designation : |
Director |
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Address : |
Chowk Bazar, Giridih – 815 301, Jharkhand, India |
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Date of Birth/Age : |
15.03.1962 |
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Date of Appointment : |
01.07.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity Share Break – up (Percentage of Total Equity )
|
Sr.
No. |
Category |
Percentage |
|
1 |
Bodies Corporate |
69.27 |
|
2 |
Directors or relatives of directors |
25.60 |
|
3 |
Other top fifty (50 ) Shareholders |
5.13 |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Iron and Steel Products. |
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Products : |
|
PRODUCTION DETAILS
|
Plant |
No. |
Capacity |
|
Induction Furnace |
2 |
25000 MT |
|
Rolling Mill |
1 |
25000 MT |
|
Re-Rolling Mill |
1 |
25000 MT |
|
Submerged Arc Furnace |
2 |
20000 MT |
GENERAL INFORMATION
|
Bankers : |
State Bank of India Address: Giridih Bazar Branch, Whitty
Bazar, Giridih – 815 301, Jharkhand E-Mali ID : sbi.06449@sbi.co.in |
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Banking
Relations : |
Satisfactory |
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|
|
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Auditors : |
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|
Name : |
Kedia Agarwal and Associates Chartered Accountants |
|
Address : |
Tah Complex, Gandhi Chowk, Giridih – 815 301, Jharkhand, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity shares |
Rs. 10/- each |
Rs. 70.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6572600 |
Equity shares |
Rs. 10/-
each |
Rs.65.726
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 |
65.726 |
65.726 |
63.106 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
156.373 |
152.374 |
138.730 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
222.099 |
218.100 |
201.836 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
119.760 |
104.883 |
109.502 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
119.760 |
104.883 |
109.502 |
|
|
DEFERRED TAX LIABILITIES |
5.646 |
6.195 |
6.975 |
|
|
|
|
|
|
|
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TOTAL |
347.505 |
329.178 |
318.313 |
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
70.850 |
80.790 |
92.756 |
|
|
Capital work-in-progress |
10.542 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
0DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
192.229
|
207.944 |
220.024 |
|
|
Sundry Debtors |
70.707
|
71.855 |
29.353 |
|
|
Cash & Bank Balances |
17.852
|
8.050 |
9.080 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
31.545
|
33.126 |
16.351 |
|
Total
Current Assets |
312.333
|
320.975 |
274.808 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
46.182
|
72.517 |
49.253 |
|
|
Provisions |
0.038
|
0.070 |
0.000 |
|
Total
Current Liabilities |
46.220
|
72.587 |
49.253 |
|
|
Net Current Assets |
266.113
|
248.388 |
225.555 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.002 |
|
|
|
|
|
|
|
|
TOTAL |
347.505 |
329.178 |
318.313 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
751.387 |
465.739 |
486.602 |
|
|
Other Income |
32.739 |
81.327 |
27.595 |
|
|
Total Income |
784.126 |
547.066 |
514.197 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
6.291 |
4.958 |
12.844 |
|
|
Provision for Taxation |
2.293 |
1.792 |
4.208 |
|
|
Profit/(Loss) After Tax |
3.998 |
3.166 |
8.636 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Sales of goods Manufactured |
11.503 |
28.220 |
22.028 |
|
Total Earnings |
11.503 |
28.220 |
50.248 |
|
|
|
|
|
|
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|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
410.193 |
225.271 |
244.410 |
|
|
Consumption of stores and spares parts |
22.433 |
9.489 |
10.265 |
|
|
Increase/(Decrease) in Finished Goods |
[45.806] |
[9.221] |
[29.082] |
|
|
Salaries, Wages, Bonus, etc. |
5.660 |
4.612 |
4.482 |
|
|
Managerial Remuneration |
1.440 |
0.960 |
0.960 |
|
|
Payment to Auditors |
0.079 |
0.067 |
0.055 |
|
|
Interest |
6.034 |
10.771 |
9.402 |
|
|
Insurance Expenses |
2.445 |
2.462 |
2.633 |
|
|
Power & Fuel |
239.024 |
233.027 |
207.528 |
|
|
Depreciation & Amortization |
11.458 |
13.248 |
11.773 |
|
|
Other Expenditure |
124.877 |
79.638 |
60.952 |
|
Total Expenditure |
777.837 |
570.324 |
523.378 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.51
|
0.57 |
1.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.84
|
1.06 |
2.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.64
|
1.23 |
3.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.02 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.75
|
0.81 |
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.76
|
4.42 |
5.57 |
LOCAL AGENCY
FURTHER INFORMATION
Registered Office of the company has been shifted from Chowk Bazar,
Giridih – 815301, Bihar, India to the present address w.e.f. 09.08.2006
|
Corporation identity number or foreign company registrations number of
the company |
U00331JH1998PLC008594 |
|
Name of the company |
SHIVAM IRON AND STEEL COMPANY
LIMITED |
|
Address |
Kalayani Apartment, Gandhi Chowk, Giridih – 815 301,
Jharkhand, India |
|
This Form is for |
Modification
of Charge |
|
Type of Charges |
·
Immovable
property ·
Book debts ·
Movable Property ·
Floating
charge ·
Others |
|
Particular of the charge holder |
State Bank of India Address: Giridih Bazar Branch, Whitty
Bazar, Giridih – 815 301, Jharkhand E-Mali ID :
sbi.06449@sbi.co.in |
|
Nature or description of the instrument creating charge |
·
Supplemental
deed of a guarantee for increase in overall limit dated 20.12.2006 ·
Supplemental
Agreement of Hypothecation of goods and assets dated 20.12.2006 ·
Supplemental
Agreement of loan for increase in the overall limit date 20.12.2006 ·
Letter
regarding the grant of individuals limits within the overall limit dated
20.12.1006 ·
Letter of
undertaking by company not to create any further charge over their property
and assets including uncalled capital dated 20.12.2006 |
|
Date of the instrument creating charge |
20.12.2006 |
|
Amount Secure by the charge |
Rs.165.823 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of interest: At SBAR, present effective rate will be 11% p.a. at monthly rests. Terms of repayment ·
Working
capital – 12 Months subject to renewal thereafter ·
The Term
loan shall be repaid as per existing repayment schedule Margin: ·
Cash Credit
: Raw Material – 25%, Finished goods – 25%, Book debts – 40% (cover period 30
days) ·
Letter of
Credit – 25% ·
Bank
Guarantee – 25% Extent and operation of the
charge: First and Full Charge Others: Personal guarantee of : ·
Binod Kumar
Agarwala (Director) ·
Gopal Kumar
Agarwala ·
Pramod Kumar
Agarwala (Director) ·
Shiv Kumar
Agarwala (Director) ·
Arun Kumar
Agarwala (Director) ·
Leela Devi
Sgarwala ·
Barkha
Agarwala ·
Ramniwas
Agarwala ·
Alok Kumar
Agarwala ·
Sudha
Agarwala |
|
Short particulars of the property charged (including location of the
property) |
·
Hypothecation
of raw materials, Stock in process, Finished goods, Consumable and other
current assets and book Debts. ·
Hypothecation
of fixed assets of the company worth Rs. 80.790 millions (WDV as on
31.03.2006)( ·
Land and
building situated at -
Jambad, PO
Udnabad, District – Giridih -
Dhanadih, PO
senadoni, District – Giridih -
Station Road
Giridih -
Jambad, Gadi
Shrirampur, Pargana – Kharagdiha, District - Giridih |
|
Particulars of the Present
modification |
The Bank has sanctioned additional limits
of cash credit (stocks) – Rs. 27.700 millions, Cash credit (Book Debts) Rs.
12.800 millions, Letter of Credit - Rs.20.000 making total limits of Rs.
165.823 millions containing cash credit (stocks) – Rs. 77.500 millions, Cash
Credit (Book Debts) – Rs. 20.000 millions, Term Loan - Rs. 26.323 millions, Letter of Guarantee
– Rs. 32.000 millions and Bank Guarantee Rs. 10.000 millions (*
interchangeability of Rs. 10.000 millions between letter of Credit and Bank
Guarantee and vice versa. |
WEBSITES DETAILS:
The new company , called Shivam Iron and Steel Company
Private Limited (SISCO) had been incorporated in the year 1998 was expected to have
considerable skill and resources of producing Iron and Steel today within its
fold four plants at Giridih - Jharkhand and Raniganj - West Bengal producing
Ferro-Alloy , MS-Billets , MS-Ingots , Sponge Iron ,TMT Bars , Angles ,
Channels , Flate and heavy structural etc.
"SISCO" group of Companies an upcoming
Business house in Steel Sector in Eastern region has been accredited with
ISO-9001:2000 certification to achieve its overall efficiency of the
Company .
"SISCO" has been coitted to produce an internationally
accepted quality , efficient delivery schedule , competitive prices to its
customers and enjoying international repute by selling its products to its
favoured customers in India and abroad . A nation-wide marketing network of
SISCO ensures avail ability of its product in every nook and corner of the
country, besides offering the facility of the direct dispatch of the materials
from its plants to customer’s door-steps. The Company maintained stock yards at
selected locations to make the material readily available on just in time to
its domestic customers. An experienced and qualified technocrat are the
hallmark of the company, company is working in well accepted corporate style
and adhering to the basic principle of the corporate governance.
SISCO is a company driven by demand of its customers and it
cares to meet their needs having ambitious expansion plans in the near future.
It has plan to put another coal based DRI plant at Jamuria - West Bengal and
also to put re-rolling mill to produce heavy structural at Raniganj-West Bengal
. Besides the Group is planning to acquire land at Orissa in a SEZ notified by
the Govt. of Orrisa to put another bulk Ferro-Alloys Plant.
TISCO, JINDAL, RINL/VSP, SPS, RATHI GROUP, IISCO etc. are
valid customers, the product of SISCO has established its quality in the
biggest steel market of India, i.e. MANDI GOVINDGARH. Taking advantage of the
emerging demands from the International markets, company has started exporting
its Ferro-Alloys to many countries in the world.
Their Corporate principles represent an orientation
framework for the future development of the company. They determine both,
everyday work an strategic considerations within the company.
·
They act in an ecologically
responsible manner to protect the environment and their natural resources.
·
They pursue
open communication and reliable, long-term co-operation with their business
partners.
·
They consider
the qualification, commitment and performance of their employees to be the
decisive factors of their success.
·
They profess
fair, offensive competition.
·
They wish to
make consistent profits, since this is a requisite for the long-term successful
development of the company
Main Products
“SISCO” An ISO 9001:2000 Certified Company has committed to produce an internationally accepted quality, efficient delivery schedule, and competitive prices. A nation-wide marketing network ensures availability of SISCO products in every nook and corner of the country. Taking advantage of the emerging demands from the international markets.
» Silicon Manganese
» Ferro Manganese
» Ferro Silicon
» Ferro Crome
» Ms Steel Ingot
» SISCON TMT Bar
» MS Angles
» MS Channels
» Coal Based DRI (Sponge Iron)
» Steel Billets
Other information
- Other product
-
MS – Steel Ingots
-
SISCON TMT Bar
-
MS Angles
-
ME Channels
-
MS Flats
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.82 |
|
UK Pound |
1 |
Rs.80.85 |
|
Euro |
1 |
Rs.56.22 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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 |
|