MIRA
INFORM REPORT
|
Report Date : |
06.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BMA STAINLESS LIMITED |
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Registered Office : |
F 3, Circular Mansion 222 AJC, Bose Road, Kolkata – 700 017, West
Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.10.2003 |
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Com. Reg. No.: |
21-97108 |
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CIN No.: [Company
Identification No.] |
U27109WB2003PLC097108 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALB075315 |
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PAN No.: [Permanent
Account No.] |
AACCB2921L |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Stainless Steel and Allied Products. |
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 750000 |
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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 meetings its
normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
F 3, Circular Mansion 222 AJC, Bose Road, Kolkata – 700 017, West
Bengal, India |
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E-Mail : |
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Websites: |
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Area : |
2000 Sq.fts |
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Location : |
Owned |
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Factory : |
P O Kalyaneshwari, District Burdwan – 713 369, West Bengal, India |
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Tel. No.: |
91-341-2553301 - 02 / 2524301 –
302 / 6533001-002 |
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Fax No.: |
91-341-2531116 / 2524300 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Prahlad Rai Agarwalla |
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Designation : |
Director |
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Address : |
P O Salanpur, District Burdwan-713 104, West Bengal, India |
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Date of Birth/Age : |
25.02.1951 |
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Date of Appointment : |
11.04.2005 |
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Name : |
Mr. Avinash Agarwalla |
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Designation : |
Director |
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Address : |
P O Salanpur , District Burdwan-713 104 , West Bengal, India |
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Date of Birth/Age : |
11.09.1978 |
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Date of Appointment : |
13.10.2003 |
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Name : |
Mr. Vijay Gupta |
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Designation : |
Director |
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Address : |
701, Red Creek Apartment West Block, Opposite Harbour Park
Pandurangapuram, Visakhapatnam – 530 003, Andhra Pradesh, India |
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Date of Birth/Age : |
06.01.1978 |
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Date of Appointment : |
01.04.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Allottee (As on 31.05.2007) |
|
No. of Shares |
|
Dipajyoti Resources Private Limited |
|
500000 |
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Disha Paint Private Limited |
|
1600000 |
|
Magnate Capital Market Private Limited |
|
250000 |
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Mood Dealers Limited |
|
115000 |
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Sakthi Traders Private Limited |
|
250000 |
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Satyen Finance And Investments Company Limited |
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600000 |
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Silfex Tradelines Private Limited |
|
500000 |
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Scionara Finvest Private Limited |
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150000 |
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Starshine Management Private Limited |
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250000 |
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Usha Concast Private Limited |
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500000 |
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Snowtex Securities Private Limited |
|
1850000 |
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Total
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6565000 |
Equity Shares Breakup (Percentage of Total Equity): As on 31.03.2007:-
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Sr No. |
Category |
Percentage |
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1 |
Bodies Corporate |
91.94 |
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2 |
Directors or relative of directors |
8.06 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Stainless Steel and Allied Products. |
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Products: |
· Pig Iron · Sponge Iron · MS Billet · MS Bar and Rods |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
GENERAL
INFORMATION
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Customers : |
Wholesalers, Retailers, End Users, OEM’s |
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No. of Employees : |
200 |
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Bankers : |
· Bank of India · UCO Bank, G T Road, Asansol-713 301, West Bengal, India · UCO Bank, International Banking Branch (MID Corporate Unit), 4 and 4/1, Red Cross Place, Kolkata – 700 001, West Bengal, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sawaria Khiatan and Associates |
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Address : |
1/1 A, Vansittart Row, 1st Floor, Room No. 6, Kolkata – 700
001, West Bengal, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8225000 |
Equity Shares |
Rs. 10/-
each |
Rs.82.250
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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82.250 |
82.250 |
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2] Share Application Money |
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65.650 |
0.000 |
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3] Reserves & Surplus |
|
1.476 |
0.087 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
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149.376 |
82.337 |
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LOAN FUNDS |
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1] Secured Loans |
|
207.903 |
44.480 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
207.903 |
44.480 |
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DEFERRED TAX LIABILITIES |
|
3.221 |
0.000 |
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TOTAL |
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360.500 |
126.817 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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109.083 |
2.529 |
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Capital work-in-progress |
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91.372 |
98.684 |
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INVESTMENT |
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5.339 |
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 |
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150.010 |
0.000 |
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Sundry Debtors |
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58.352 |
0.000 |
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Cash & Bank Balances |
|
19.969 |
11.026 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
58.709 |
23.309 |
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Total
Current Assets |
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287.040 |
34.335 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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134.074 |
9.296 |
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Provisions |
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2.035 |
0.056 |
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Total
Current Liabilities |
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136.109 |
9.352 |
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Net Current Assets |
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150.931 |
24.983 |
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MISCELLANEOUS EXPENSES |
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3.775 |
0.621 |
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TOTAL |
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360.500 |
126.817 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
625.215 |
0.000 |
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Other Income |
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0.261 |
0.143 |
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Total Income |
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625.476 |
0.143 |
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Profit/(Loss) Before Tax |
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6.646 |
0.143 |
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Provision for Taxation |
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5.228 |
0.048 |
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Profit/(Loss) After Tax |
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1.418 |
0.095 |
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Expenditures : |
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Raw Material Consumed |
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374.436 |
NA |
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Purchases made for re-sale |
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70.678 |
NA |
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Consumption of stores and spares parts |
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25.711 |
NA |
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Increase/(Decrease) in Finished Goods |
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[37.436] |
NA |
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Salaries, Wages, Bonus, etc. |
|
3.231 |
NA |
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Payment to Auditors |
|
0.056 |
NA |
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Interest |
|
10.378 |
NA |
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Insurance Expenses |
|
1.312 |
NA |
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Power & Fuel |
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125.394 |
NA |
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Depreciation & Amortization |
|
3.982 |
NA |
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Other Expenditure |
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41.088 |
NA |
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Total Expenditure |
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618.830 |
NA |
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KEY RATIOS
|
PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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0.23 |
66.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.06 |
0.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.35 |
0.11 |
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Return on Investment (ROI) (PBT/Networth) |
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0.04 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.30 |
0.65 |
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Current Ratio (Current Asset/Current Liability) |
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2.11 |
3.67 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Corporation identity number or foreign company registrations number of
the company |
U27109WB2003PLC097108 |
|
Name of the company |
BMA STAINLESS LIMITED |
|
Address |
F 3, Circular Mansion 222 AJC, Bose Road, Kolkata – 700 017, West
Bengal , India |
|
This Form is for |
Creation of charge |
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Type of Charges |
· Immovable Property · Book Debts · Movable Property · Floating Charge · Others |
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Particular of the charge holder
|
UCO Bank, International Banking Branch
(MID Corporate Unit), 4 and 4/*1, Red Cross Place, Kolkata – 700 001, West
Bengal, India E-mail: bo.ibbcal@ucobank.co.in |
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Nature or description of the instrument creating charge |
· Deed of hypothecation of goods to secure demand cash credit · Deed of hypothecation of book Debts to secure Demand Cash credit · Deed of hypothecation of movable Plant and machinery As additional Security · Agreement for extension of charge over current asserts to secure non – fund based facilities · Extension Of equitable mortgage by deposit of title deeds (No instrument was executed) |
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Date of the instrument creating charge |
14.02.2008 |
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Amount Secure by the charge |
Rs. 15.900 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest At BPLR which is at present 13.50% p.a with monthly rests subject to
change in BPLR from time to time. Terms of Repayment: The working capital limit of Rs. 159.000 millions (Cash credit of Rs.
59.000 millions and L/C limit of Rs. 100.000 millions) shall be repayable on
demand subject to renewal / Review from time to time. Margin: 25% on stock and 40% on Book Debts Extent and operation of the charge: Hypothecation of current assets in favour of UCO Bank by way of 21st
charge ranking pari passu with the bank of India and hypothecation / mortgage
of movable fixed assets in favour of UCO By way of 2nd pari passu
charge with Bank of India. Others: The hypothecation goods all sales , realisations and insurance
proceeds thereof and all the book debts and its realisations and all the
document under this security shall be held as the bank exclusive property
especially appropriated to this security and the company will not create any
mortgage charge lien or encumbrance affecting the same the hypothecation
assets shall be insured agt. Loss or damage under bank clause. |
|
Short Particulars of the Property charged |
Hypothecation of stocks of raw materials , WIP, finished goods stores
and spares , packing material etc and
other movable including plant and machinery which now or hereafter from time to time during this
security stored or to be stored in the company premises godowns, factories at
P O Kalyaneshwari , district Burdwan , West Bengal, or wherever else and all
present and future book debts of the
company equitable mortgage of land and building situated at mOuza Debipur P O
Kalyaneshwari, District Burdwan, West Bengal. |
TRADE REFERENCES:
· Jindal Steel
· Ram Swarup
WEBSITE DETAILS:
Subject is a manufacturer and exporter of stainless steel and allied products. All their products are manufactured under state-of-the-art facility that encompass DRI, Blast Furnace, Steel Melting shop, AOD and LRF, Rolling Mill, Captive Power Plant, etc. All their products are tested to comply with international Standards, under strict supervision of highly qualified and experienced technocrats.
With the production capacity of 300000
TPA of finished steel, they ensure to satisfy the most critical demands
of reputed industrial users. Products with various applications, sizes, grades
and specifications or as per client's requirement are manufactured to
perfection.
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.42.86 |
|
UK Pound |
1 |
Rs.83.58 |
|
Euro |
1 |
Rs.66.17 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
---- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
|