MIRA
INFORM REPORT
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Report Date : |
29.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
GALLIUM INDUSTRIES LIMITED |
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Registered Office : |
876 Sector A, Pocket Vasant Kunj, New Delhi – 110 070 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.07.1985 |
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Com. Reg. No.: |
55-21377 |
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CIN No.: [Company
Identification No.] |
U74899DL1985PLC021377 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTG03616E / RTKG03939F |
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PAN No.: [Permanent
Account No.] |
AAACG0108J |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Tube Mill, Tube Mill Equipments, Tube Mill Rolls, Shafts and Undertake Installation on Turnkey Basis. |
RATING &
COMMENTS
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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 550000 |
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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 well-established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are made regularly. |
INFORMATION PARTED
BY
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Name : |
Mr. Angshuman Dutta |
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Designation : |
Assistant GM Manager |
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Contact No.: |
91-9818109861 |
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Date : |
29.05.2008 |
LOCATIONS
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Registered Office : |
876 Sector A, Pocket Vasant Kunj, New Delhi – 110 070, India |
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Tel. No.: |
91-129-2309933 |
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Mobile No: |
91-9818109861 |
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Fax No.: |
91-129-2309619 |
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E-Mail : |
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Website : |
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Area : |
2 Acres |
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Location : |
Owned |
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Corporate Office / Factory 1: |
Plot No. 117, Sector 59, HSIDC Industrial Estate, Ballabgarh, Faridabad – 121 004, Haryana, India |
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Tel. No.: |
91-129-2309933/34/7133/7069 |
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Fax No.: |
91-129-2309619/2234219 |
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E-Mail : |
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Website : |
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Factory 2: |
Palwal District |
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Area : |
1 Acres |
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Location : |
Owned |
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Factory 3: |
Noida |
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Area : |
800 Sq. yds |
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Location : |
Leased |
DIRECTORS
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Name : |
Mr. S. Natarajan |
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Designation : |
Director |
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Date of Birth/Age : |
27.05.1933 |
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Date of Appointment : |
16.08.1994 |
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Name : |
Mr. Y. K. Bhatia |
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Designation : |
Director |
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Date of Birth/Age : |
13.08.1953 |
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Date of Appointment : |
01.07.1985 |
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Name : |
Mr. Aniq Husain |
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Designation : |
Director |
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Date of Birth/Age : |
10.07.1953 |
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Qualification : |
B. Tech., M.B.A. |
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Date of Appointment : |
01.07.1989 |
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Name : |
Mr. Pradeep Batra |
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Designation : |
Director |
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Name : |
Mr. Yukio Kusakabe |
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Designation : |
Director |
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Date of Birth/Age : |
31.01.1949 |
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Date of Appointment : |
22.06.1995 |
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Name : |
Mr. Ryoji Kusakabe |
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Designation : |
Director |
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Date of Birth/Age : |
28.11.1945 |
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Date of Appointment : |
28.07.2001 |
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Name : |
Mr. Morihero Kusakabe |
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Designation : |
Director |
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Date of Birth/Age : |
28.07.1970 |
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Date of Appointment : |
28.07.2001 |
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Name : |
Mr. Sushil Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
07.02.1961 |
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Date of Appointment : |
28.07.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as on 31.03.2007):- |
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No. of Shares |
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Mr. Y K Bhatia |
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45000 |
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Mr. Aniq Husain |
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30000 |
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Mrs. Sabha Husain |
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55000 |
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Mr. Arun Dutta |
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2800 |
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Mrs. Nita Batra |
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40000 |
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Mr. Subhankar Dutta |
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167200 |
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Mrs. Sarda Natrajan Mr. S Natrajan |
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4000 |
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Mr. S Natrajan Late S Sehagiri Mrs. Sarda |
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31000 |
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Mrs. Geeta Gupta |
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45000 |
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Mr. Radhey Kishan Gupta |
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45000 |
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Mr. Sushil Gupta |
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40000 |
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Mrs. Antra Dutta |
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170000 |
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Mrs. Rekha Bhatia |
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40000 |
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Mr. Anil Kumar Dutta |
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10000 |
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M/S Kusakabe Elec. Mach Company Limited |
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765000 |
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Mrs. Mandira Bhattacharya |
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10000 |
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Total
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1500000 |
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Equity Share Break Up (as on 31.03.2007):- |
Percentage |
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Foreign holdings
(Foreign institutional investors) foreign companies foreign financial institutions
, non residents or Overseas corporate bodies or others |
51.00 |
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Director or
relatives of Director |
49.00 |
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Total |
100.00 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturers of Tube Mill, Tube Mill Equipments, Tube Mill Rolls, Shafts and Undertake Installation on Turnkey Basis. |
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Products : |
Ø Tube Mills Ø Strip Shear & Welder Ø Horizontal Strip Accumulator Ø Rolls Ø Tube End Facer Ø Tube Hydrotester Ø Tube Straightening Machine Ø Tube Push Pointer Ø Tube Draw Bench Ø H. R. / C. R. Slitting Lines Ø Straightening Machines Ø End Facing Machines Ø Hydraulic Push Pointing Machines Ø Single/Multi Tube Draw Benches Ø Tube Hydrotester
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Exports : |
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Countries : |
Jordan, Iran, Switzerland, UAE, Europe, Thailand, Malaysia, U.S.A., U.K., Japan and China. |
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Imports : |
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Products : |
Raw materials |
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Countries : |
Germany, Taiwan, US, UK, Japan and Singapore. |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C, T/T |
GENERAL
INFORMATION
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Customers : |
Manufacturers. |
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No. of Employees : |
260 |
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Bankers : |
Ø State Bank of Indore Karol Bagh, New Delhi – 100 005, India Ø Indian Overseas Bank 1-C, 47/48, NIT Faridabad – 121 004, Haryana, India Ø Standard Chartered Bank Narain Manzil, 23 Barakhamba Road, New Delhi – 110 001, India Ø State Bank of Patiala Ø State Bank of Faridabad Ø Yes Bank, Delhi Branch Ø Indus Ind Bank , Delhi Branch Ø ABN Amro Bank NV Hansalya Building, 15 Barakhamba Road, New
Delhi – 110 001, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. Swarop & Company Chartered Accountants |
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Address : |
Plot No.8, Flat No. 102, Garg Plaza, Bhera Enclave, New
Delhi – 110 087, India |
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Associates/Subsidiaries : |
Kusakabe Electric and Machinery Company |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1500000 |
Equity Shares |
Rs. 10/- each |
Rs.15.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.000 |
15.000 |
15.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
115.476 |
101.676 |
80.245 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
130.476 |
116.676 |
95.245 |
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LOAN FUNDS |
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1] Secured Loans |
366.325 |
244.638 |
194.949 |
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2] Unsecured Loans |
17.863 |
15.155 |
14.390 |
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TOTAL BORROWING |
384.188 |
259.793 |
209.339 |
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DEFERRED TAX LIABILITIES |
11.246 |
9.336 |
9.229 |
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TOTAL |
525.910 |
385.805 |
313.813 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
182.007 |
139.647 |
100.634 |
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Capital work-in-progress |
0.000 |
0.000 |
4.015 |
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INVESTMENT |
7.732 |
6.266 |
6.266 |
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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 |
370.461
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290.381 |
200.646 |
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Sundry Debtors |
173.404
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109.515 |
88.283 |
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Cash & Bank Balances |
10.851
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22.738 |
4.923 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
37.965
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65.700 |
42.451 |
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Total
Current Assets |
592.681
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488.334 |
336.303 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
231.840
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218.375 |
106.779 |
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Provisions |
24.670
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30.067 |
26.626 |
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Total
Current Liabilities |
256.510
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248.442 |
133.405 |
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Net Current Assets |
336.171
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239.892 |
202.898 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
525.910 |
385.805 |
313.813 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
479.931 |
460.013 |
420.598 |
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Other Income |
4.625 |
1.226 |
2.851 |
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Total Income |
484.556 |
461.239 |
423.449 |
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Profit/(Loss) Before Tax |
31.030 |
33.978 |
27.598 |
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Provision for Taxation |
11.111 |
8.046 |
12.016 |
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Profit/(Loss) After Tax |
19.919 |
25.932 |
15.582 |
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Export Value |
166.909 |
301.151 |
230.640 |
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Expenditures : |
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Raw Material Consumed |
270.200 |
278.504 |
239.420 |
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Consumption of stores and spares parts |
13.104 |
7.474 |
3.675 |
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Increase/(Decrease) in Finished Goods |
[61.395] |
[86.840] |
[7.740] |
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Salaries, Wages, Bonus, etc. |
41.219 |
26.967 |
17.907 |
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Managerial Remuneration |
NA |
5.123 |
4.563 |
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Payment to Auditors |
NA |
0.162 |
0.137 |
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Interest |
36.966 |
28.146 |
20.347 |
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Insurance Expenses |
2.665 |
1.755 |
1.258 |
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Power & Fuel |
10.308 |
6.837 |
4.442 |
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Depreciation & Amortization |
7.972 |
5.900 |
4.760 |
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Other Expenditure |
132.487 |
153.233 |
107.082 |
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Total Expenditure |
453.526 |
427.261 |
395.851 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
4.11
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5.62 |
3.68 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.46
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7.38 |
6.56 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.96
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5.36 |
6.17 |
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Return on Investment (ROI) (PBT/Networth) |
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0.24
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0.29 |
0.29 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.91
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4.35 |
3.59 |
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Current Ratio (Current Asset/Current Liability) |
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2.32
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1.97 |
2.52 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
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Corporation identity number or foreign company registrations number of
the company |
L74899DL1985PLC021377 |
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Name of the company |
GALLIUM
INDUSTRIES LIMITED |
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Address |
876, Sector
A Pocket C Vasant Kunj, New Delhi – 110 070, India |
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This Form is for |
Modification of charge |
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Type of Charges |
· Immovable Property · Movable Property · Others |
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Particular of the charge holder
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ABN Amro Bank NV Address: Hansalya Building, 15 Barakhamba Road, New Delhi – 110 001,
India E-Mail: in.bs.delhi@in.abnamro.com
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Nature or description of the instrument creating charge |
Memorandum of entry |
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Date of the instrument creating charge |
10.10.2007 |
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Amount Secure by the charge |
Rs. 85.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest: As per bank Rules from time to time Terms of repayment:
Margin: As per bank rules from time to time Extent and operation of the charge: The charge operates as a security by way of first Pari passu charge in
favour of ABN Amro Bank NV with other lenders. Others: This is to secure credit facilities of ABN Amro Bank NV Aggregating
Rs. 85 millions |
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Short Particulars of the Property charged |
First pari passu charge on all the movable fixed assets , immovable
assets , stocks, and book debts of the company both present and future. |
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Particulars of the present modification |
Credit limits of ABN Amro bank are collaterally secured by equitable
mortgage by extension of mortgage by re-deposit by constructive delivery of
title deeds of immovable property of
the company (with ICICI Bank Limited in favour of ABN Amro Ban NV and
others), particularly land and building located 117, HSIDC Industrial Estate,
Sector – 59, Faridabad HR together with building and other structures , fixed
plant and machineries , fixtures and fittings, constructed / installed or to
be constructed / installed thereon . |
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Name of the
company |
GALLIUM INDUSTRIES LIMITED |
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Presented By |
Mr. Aniq Husain , Director |
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1) Date and
description of instrument creating the change |
Letter of hypothecation
general counter guarantee , Indemnity dated 20.07.2005 {Rs. in millions} |
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2) Amount secured
by the charge/amount owing on the securities of charge |
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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
stocks book debts and exclusive first
charge on the current assets, equitable mortgaged factory land and building at plot No. 117 Sector 59 EM of plot
Under lease at SEZ Plant and Machinery
as Rs. 28.747 millions, etc |
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4) Gist of the terms
and conditions and extent and operation of the charge. |
As per terms and conditions mentioned all
the agreement of intt. at BPLR presently 11% p.a |
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5) Name and
Address and description of the person entitled to the charge. |
Indian Overseas Bank, Market No. 1 NIT ,
Faridabad, Haryana, India |
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6) Date and brief description of instrument
modifying the charge |
NA |
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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. |
NA |
It is in trade terms
with :-
Ø Siemens India, New Delhi
Ø Maansman Rexroth, Ahmedabad, Gujarat
Ø Yuken System
Ø SKF Bearing, New Delhi
Ø NTN, Singapore
Ø TISCO Tube Division
Ø DEMAG, New Delhi
Ø NUSCO System, Japan
Ø ITEC, Germany
Ø Atlas Cycle Industries Limited, India
Ø Avon Cycle Limited, India
Ø Tata Iron and Steel Company Limited, India
Ø Steel Stripes and Tubes Limited, India
Ø Tube Products of India, India
Ø Tata Bhushan
Ø Welspun, Mumbai
Ø Zenith, Mumbai
BUSINESS:
The company supplies complete tube mills, tube finishing equipments, tollings and cold drawing plants.
The company designs, manufacturers, supplies and commission equipments/lines in very wide ranges comprising of Tube Mills alongwith complete cold drawing plant and other strip processing lines like HR/CR slitting lines and other related equipments.
Subject has a formidable client list to support its commitments to quality. They are actively supplying world class equipments to UK, USA, Spain, Poland, Turkey, China, Nepal, Japan, Greece Jordan, Oman, Taiwan, Thailand, Phillipines, Malaysia, Zimbabwe, Uruguay and many other countries.
It offers wide range of tube mills with latest features like quick change mechanisms, helical gear boxes for distribution of power at high efficiencies to individual driven stands, oscillating type OD based cutting tools for long life, inline 19 roll straitner for high degree of straightness, SG cast stands for excellent damping properties. Precision machined nitrited spindles housed in self aligning bearings, computerised roll setting for side setting (optional). Simultaneous screw down of top spindle. 4 roll driven shaping stands for sectional tubing. Rotary turks head for precise straightness and roundness. Centralised lubrication system for mill gear boxes. On line strerch reducing mills for small dia tubes.
WEBSITE DETAILS:
The company was established in 1985 by qualified and experienced professionals to cater to the sophisticated equipment requirements of the Tube Industry worldwide. During this period tube plants available in the country were either being imported from USA, Germany and other advanced countries, or they were being locally fabricated which could not match the ever growing demands of the Tube Industry. Subject was initiated a new era in the field of tubes produced in India. The first mill manufactured by the company was for 100 m/min. line speed with sophisticated entry line and computerised length control system for the flying cut off. Since then company has successfully supplied mills with line speed 150 m/min. or more.
Subject has now emerged as the leading Tube Plant Manufacturer in the world supplying tube mills alongwith complete cold drawing plants and other Strip Processing Lines like HR/CR Slitting lines and more.
In the International front the company manufactured equipment are working in 29 countries including developed countries like USA, UK, Japan, Australia, Brazil, Iran, Egypt, Malaysia, China, Taiwan, Thailand, Oman, Jordan, Zimbabwe, Pakistan and many other countries. A number of repeat orders have been received from these companies.
Subject is amongst a very few companies in the world who can
offer complete Tube Plants and services including all toolings and turnkey
solutions by providing plant engineering for all utilities and auxiliary
equipment.
They have become an ISO 9001 certified company.
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.42.85 |
|
UK Pound |
1 |
Rs.84.74 |
|
Euro |
1 |
Rs.67.36 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--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 |
|