MIRA
INFORM REPORT
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Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
SAGE METALS LIMITED |
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Registered Office : |
346, Functional Industrial Estate, Patparganj, New Delhi – 110 092 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.03.1983 |
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Com. Reg. No.: |
015335 |
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CIN No.: [Company
Identification No.] |
U28998DL1983PLC015335 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS19216B |
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Legal Form : |
A closely held Public
Limited Liability Company. |
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Line of Business : |
Manufacturer of fully machined cast components made of Copper,
Aluminium, Zinc and Ferrous Alloys. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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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 3630000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and financially strong company but expected
to face slightly difficult time in current year due to high volatile metal
market in the current year. It is reported but there is a sharp reduction of
nearly 40% in the metal prices, globally. Trade relations are fair. Payments are usually correct and as per
commitment. The company can be considered
good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered/ Head Office : |
346, Functional Industrial Estate, Patparganj, New Delhi – 110 092,
India |
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Tel. No.: |
91-11-22169496/22169497/22169498/ 42141296/ 97 |
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Fax No.: |
91-11-22141104 |
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E-Mail : |
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Website : |
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Area : |
450 sq. meters. |
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Location : |
Owned |
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Factory 1 : |
Plot No. 123, Sector –
24, Faridabad, Haryana, India |
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Factory 2 : |
28/29 and 28/9/1/2, Libas
Pur, Delhi 110042, India |
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Factory 3 : |
28/29 and 28/9/1/2, Libas
Pur, Delhi 110042, India |
DIRECTORS
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Name : |
Mr. Vinod Kumar Agarwal |
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Designation : |
Managing Director |
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Address : |
D-14 A/8, Model Town,
Delhi - 110009, India |
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Date of Birth/Age : |
03.10.1953 |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mrs. Rekha Agarwal |
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Designation : |
Director |
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Address : |
D-14 A/8, Model Town, Delhi 110009, India |
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Date of Birth/Age : |
12.07.1960 |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mr. Shri Prakash Agarwal |
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Designation : |
Director |
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Address : |
D-14 A/8, Model Town, Delhi 110009, India |
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Date of Birth/Age : |
29.12.1958 |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mr. R. Krishnan |
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Designation : |
Director |
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Address : |
B – 44, 2nd Floor, Gulmohar Park, New Delhi – 110 049,
India |
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Date of Birth/Age : |
17.10.1955 |
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Date of Appointment : |
30.09.1995 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2007
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Names of Shareholders |
No. of Shares |
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Vinod Kumar Aggarwal |
51680 |
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Rekha Aggarwal |
17800 |
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Shri Prakash Aggarwal |
45800 |
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Seema Aggarwal |
23680 |
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Pushpa Devi Aggarwal |
30000 |
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R. Krishnan |
21120 |
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Aruna Krishnan |
21120 |
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Total |
211200 |
As on 29.09.2007
Equity share breakup (percentage of total equity)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of fully machined cast components made of Copper,
Aluminium, Zinc and Ferrous Alloys. |
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Products : |
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Exports : |
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Countries : |
USA, Canada, Germany, UK, and Australia. |
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Imports : |
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Countries : |
European Countries and Far East |
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Terms : |
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Selling : |
Cash, Credit (30-60 days) and L/C terms |
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Purchasing : |
Cash, Credit (30 days), L/C and other terms |
GENERAL
INFORMATION
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Customers : |
Wholesalers and Manufacturers |
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No. of Employees : |
About 800 |
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Bankers : |
Union Bank of India 625, Chandni Chowk, Delhi – 110 006, India |
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Facilities : |
Secured Loans :
Working Capital borrowings are secured by first charge on the entire stocks of Raw Materials, Work in Process and Finished Goods and Book Debts. Overdraft Account id secured by Fixed Deposit Receipts. These Bank Borrowings are additionally secured by
hypothecation of entire Plant and Machinery and mortgage of Land and
Buildings at 28/28 and 28/8/1/2, Libaspur, Delhi-42, and at Plot No.123,
Sector-24, Faridabad and personal guarantees of all the Directors of the
company. Unsecured Loans :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dinesh Aarjav and Associates Chartered Accountants |
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Address : |
8, Rishab Vihar, Delhi 110092, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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225000 |
Equity Shares |
Rs.100/- Each |
Rs.22.500 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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211200 |
Equity Shares |
Rs.100/-
Each |
Rs.21.120
millions |
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Of the above shares 186000 shares are allotted
as fully paid up by way of Bonus Shares by capitalization of General Reserves.
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 |
21.120 |
21.120 |
21.120 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
704.954 |
528.280 |
485.978 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
726.074 |
549.400 |
507.098 |
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LOAN FUNDS |
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1] Secured Loans |
239.575 |
89.023 |
80.523 |
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2] Unsecured Loans |
7.000 |
10.000 |
0.000 |
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TOTAL BORROWING |
246.575 |
99.023 |
80.523 |
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DEFERRED TAX LIABILITIES |
13.368 |
12.768 |
12.198 |
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TOTAL |
986.017 |
661.191 |
599.819 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
206.179 |
166.202 |
174.966 |
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Capital work-in-progress |
55.584 |
37.401 |
18.858 |
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INVESTMENT |
0.217 |
0.217 |
0.217 |
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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 |
346.757
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243.299 |
169.599 |
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Sundry Debtors |
313.465
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162.367 |
156.152 |
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Cash & Bank Balances |
42.668
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44.220 |
44.429 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
168.428
|
105.364 |
113.119 |
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Total
Current Assets |
871.318
|
555.250 |
483.299 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
25.619
|
19.477 |
26.706 |
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Provisions |
121.662
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78.402 |
50.815 |
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Total
Current Liabilities |
147.281
|
97.879 |
77.521 |
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Net Current Assets |
724.037
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457.371 |
405.778 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
986.017 |
661.191 |
599.819 |
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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 |
1061.760 |
566.937 |
465.879 |
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Other Income |
16.805 |
16.022 |
35.014 |
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Total Income |
1078.565 |
582.959 |
500.893 |
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Profit/(Loss) Before Tax |
248.375 |
83.725 |
69.635 |
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Provision for Taxation |
22.500 |
11.320 |
15.214 |
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Profit/(Loss) After Tax |
225.875 |
72.405 |
54.421 |
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Earnings in Foreign Currency : |
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Total Earnings |
1007.907 |
542.864 |
NA |
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Imports : |
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Raw Materials |
318.794 |
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Stores & Spares |
3.487 |
0.680 |
NA |
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Capital Goods |
40.235 |
11.880 |
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Total Imports |
362.516 |
190.102 |
NA |
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Expenditures : |
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Raw Material Consumed |
570.027 |
293.327 |
250.046 |
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Consumption of stores and spares parts |
20.650 |
14.989 |
14.667 |
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Increase/(Decrease) in Finished Goods |
(49.431) |
(10.941) |
(22.245) |
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Salaries, Wages, Bonus, etc. |
35.309 |
31.665 |
30.190 |
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Managerial Remuneration |
7.452 |
6.075 |
6.075 |
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Payment to Auditors |
0.134 |
0.112 |
0.075 |
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Interest |
9.890 |
0.626 |
2.697 |
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Insurance Expenses |
0.537 |
1.049 |
0.917 |
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Power & Fuel |
35.804 |
25.510 |
26.495 |
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Depreciation & Amortization |
27.749 |
26.077 |
25.006 |
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Other Expenditure |
172.069 |
110.745 |
97.335 |
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Total Expenditure |
830.190 |
499.234 |
431.258 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
20.94
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12.42 |
10.86 |
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Net Profit Margin (PBT/Sales) |
(%) |
23.39
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14.77 |
14.95 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
21.92
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11.03 |
10.28 |
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Return on Investment (ROI) (PBT/Networth) |
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0.34
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0.15 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.54
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0.36 |
0.31 |
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Current Ratio (Current Asset/Current Liability) |
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5.92
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5.67 |
6.23 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
SAGE METALS LIMITED |
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Presented By |
Mr. V.K. Agarwal |
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Amount secured by the charge/amount owing on the securities of charge |
Rs.2.000 millions |
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Name and Address and description of the person entitled to the charge. |
Union Bank of India 625, Chandni Chowk, Delhi – 110 006, India |
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Date and brief description of instrument modifying the charge |
Letter of
Hypothecation of Bills dated 07.02.2002 and Union Bank of India’s Sanction
Advice dated 30.01.2002. |
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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. |
FDBP/ FUDBP/
AFUDBC (against order) limit reduced from Rs.33.000 millions to Rs.15.000
millions. With usual interest and Nil Margin. Other terms and
conditions remaining the same. |
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This form is for |
Modification of
charge |
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Charge
identification number of the modified
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90052217 |
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Corporate
identity number of the company |
U28998DL1983PLC015335 |
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Name of the
company |
SAGE METALS LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
346, Functional Industrial Estate, Patparganj, New Delhi – 110 092,
India |
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Type of charge |
Immovable
Property Book Debts |
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Particular of
charge holder |
Union Bank of India 625, Chandni Chowk, Delhi – 110 006, India E-Mail: webmaster@unionbankofindia.com |
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Nature of
description of the instrument creating or modifying the charge |
Composite Hypothecation
Deed (Sd-20) against the stocks of electric wiring accessories and sanitary
fittings, hardware for export. |
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Date of
instrument Creating the charge |
14.02.2007 |
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Amount secured by
the charge |
Rs.250.000
millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
Terms of
Repayment: Repayable on
demand together with interest thereon. Margin:
Extent and
Operation of the charge: First charge by way of hypothecation of all the
company’s stock of raw materials, goods in process, semi finished goods,
finished goods, stores and spares now or at any time hereinafter belonging to
or at the disposal of the company and which are now stored or which hereafter
may, from time to time, be brought into or stored at company’s at Sahibabad,
Libaspur or at any other place and all the Company’s book debts. |
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Short particulars
of the property charged |
As per memorandum of deposit of title deeds |
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Date of latest
modification prior to the present modification |
29.09.2006 |
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Particulars of
the present modification |
Present modification was made on 14.02.2007 as follows:
Total of
Rs.250.000 millions. |
FIXED ASSETS:
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Computers
- Vehicles
WEBSITE DETAILS:
BUSINESS
Sage is a manufacturer of fully machined cast
components made of copper, aluminium, zinc and ferrous alloys. The Company’s
corporate headquarters is in Delhi, India. It has Manufacturing facilities in
and around Delhi.
The Company Specialises in:
Sand Casting
High
Pressure Die Casting
Investment
Casting
Gravity
Die Casting
Stamping
Forging
of Tubes
The Company Serves among other industries Electrical Wiring Fittings,
Sanitary Fittings, Plumbing, Builders' Hardware, Automobile, Mechanized
Agriculture, Industrial Valves, Medical aids.
Sage Exports its products to USA, Canada, Germany, Australia and China.
PRODUCTS:
Sage specialises
in manufacture of fully machined sand/die cast components made of Copper,
Aluminium, and Zinc alloys. These components are used in various industries and
applications. The products manufactured can be broadly classified as follows:-
Copper Alloy Based
a) Bronze Ground Clamps for Bare wire and Direct Burial.
b) High/ Low Voltage Terminal Bushings
c) Spade Terminals and Tank Ground Connectors
Aluminium / Zinc
Alloys Based
a) Service Entrance Heads
b) Conduit Fittings
Zinc Alloys Based
a) Liquid tight Fittings
b) EMT Couplings and Connectors
c) Squeeze Connectors
Compression Connectors
b) d) Water Tight Hubs
c) Romex/Myers Connectors
Offset Nipples
f) Pull Elbows Stainless Steel Water Tight Hubs Steel
Tubes based EMT Connectors and Couplings
Steel Compression Connectors. Plastic Based Liquid
Tight Fittings
Copper Alloy (Bronze) / Cast Iron/Stainless Steel and
Aluminium
a) Parapet/ Balcony Drain in Bronze
b) Parapet/ Balcony Drain in Cast Iron
c) Drain Fittings for Vinyl Floors in Bronze and Iron
d) Rain Water Outlets in Aluminium and Bronze
e) Hydrant Boxes in Bronze
f) Strainers in Bronze and Stainless Steel
STAMPINGS
and TUBULAR COMPONENTS
a) EMT Steel Fittings
b) Channel Bars
c) Foot Butons And Latches
d) Clamps And Brackets
e) Model No.5
a) Bronze Flow Control Valves and Presser.
b) Bronze Wedges for Valves.
c) Bronze Butterfly Discs for Valves.
d) Other Pumps Used In Mechansed irrgation.
a) Aluminium Die Cast Anti Vibration Mounts
for Passanger Cars
b) Bracket for Automobile A/C Compressors.
c) Door Handles Parts.
STAINLESS STEEL INVESTMENT CASTING
a) Cyclones
b) Handles
c) Water Tight Hubs
a) PPR - Pipe Jointing And Cuters .
b) Zinc Alloy Coupling Boxes
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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
|