MIRA
INFORM REPORT
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Report Date : |
02.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHARDA ISPAT LIMITED |
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Registered Office : |
Kampetee Road, Nagpur-440026, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.09.1960 |
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Com. Reg. No.: |
011830 |
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CIN No.: [Company
Identification No.] |
L74210MH1960PLC011830 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPS00659B/ NGPS07599E |
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PAN No.: [Permanent
Account No.] |
AABCS8628N/ AABCS8628N |
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Legal Form : |
A Public Limited Liability Company. The company’s Shares are listed on
Stock Exchange. |
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Line of Business : |
Manufacturer of Rolled Products, Iron and Steel etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Poor |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Financial position of the company is poor. Payments are slow and
delayed, Ways and Meare position of the company is difficult. The company can be considered for any business dealings on safe and
secured trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
Kampetee Road, Nagpur-440026, Maharashtra, India |
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Tel. No.: |
91-712- 2640071 |
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Factory: |
T-1/1, MIDC, Hingna Road, Nagpur-440016, Maharashtra, India |
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Tel. No.: |
91-712-2640071/ 236991 |
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Fax No.: |
91-7104-236995 |
DIRECTORS
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Name : |
Mr. J K Sarda |
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Designation : |
Managing Director |
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Name : |
Mr. N K Sarda |
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Designation : |
Joint Managing Director |
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Name : |
Mr. G D Sarda |
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Designation : |
Whole- Time Director |
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Name : |
Mr. H K Das |
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Designation : |
Director |
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Name : |
Mr. A K Mukerjee |
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Designation : |
Director |
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Name : |
Mr. J C Saboo |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters’ holding: |
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Indian Promoters |
461920 |
10.87 |
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Persons acting in concept |
2652820 |
62.42 |
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Others |
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Private Corporate Bidies |
323560 |
7.61 |
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Indian Public |
811700 |
19.10 |
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Total |
4250000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Rolled Products, Iron and Steel etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Licensed
Capacity |
Installed
Capacity |
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Kamptee Road Unit |
MT |
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100000 |
100000 |
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Hingna Road Unit |
MT |
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100000 |
50000 |
GENERAL
INFORMATION
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No. of Employees : |
150 |
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Bankers : |
·
IDBI Bank ·
State Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Loya Bagri and Company Chartered Accountant |
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Address : |
Gandhibagh, Nagpur-440002, Maharashtra, India |
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Internal
Auditor: |
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Name : |
Mr. M M Jain Chartered Accountant |
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Address : |
Kingsway, Nagpur-440001, Maharashtra, India |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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4250000 |
Equity Shares |
Rs. 10/-
each |
Rs. 42.500
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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4250000 |
Equity Shares |
Rs. 10/-
each |
Rs. 42.500
Millions |
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Less: |
Unpaid allotment Money other than directors |
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Rs. 0.121
Millions |
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Total |
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Rs. 42.379 Millions |
Note:
(Out of above 750000 Equity Shares Were issued
as bonus shares by way of capitalization of general reserve)
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 |
42.379 |
42.379 |
42.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
33.611 |
33.611 |
[214.000] |
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4] (Accumulated Losses) |
[300.855] |
[256.594] |
0.000 |
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NETWORTH |
[224.865] |
[180.604] |
[171.600] |
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LOAN FUNDS |
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1] Secured Loans |
255.994 |
255.992 |
256.000 |
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2] Unsecured Loans |
156.830 |
100.594 |
56.800 |
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TOTAL BORROWING |
412.824 |
356.586 |
312.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
187.959 |
175.982 |
141.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
113.223 |
125.337 |
136.600 |
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Capital work-in-progress |
1.780 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
0.000
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0.000 |
118.900 |
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Sundry Debtors |
0.000
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0.000 |
61.100 |
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Cash & Bank Balances |
0.000
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0.000 |
7.800 |
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Other Current Assets |
226.855
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175.181 |
0.000 |
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Loans & Advances |
142.588
|
120.855 |
23.900 |
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Total
Current Assets |
369.443
|
296.036 |
211.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
296.487
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245.391 |
202.900 |
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Provisions |
0.000
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0.000 |
4.200 |
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Total
Current Liabilities |
296.487
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245.391 |
207.100 |
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Net Current Assets |
72.956
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50.645 |
4.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
187.959 |
175.982 |
141.200 |
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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 |
857.956 |
1028.564 |
1518.400 |
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Other Income |
2.365 |
1.445 |
2.800 |
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Total Income |
860.321 |
1030.009 |
1521.200 |
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Profit/(Loss) Before Tax |
[44.133] |
[8.822] |
[9.100] |
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Provision for Taxation |
[88.326] |
[0.201] |
0.000 |
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Profit/(Loss) After Tax |
[44.260] |
[9.023] |
[9.100] |
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Expenditures : |
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Cost of Goods Sold |
77.992 |
[38.019] |
0.000 |
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Manufacturing Expenses |
143.557 |
122.369 |
41.900 |
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Selling and Administration Expenses |
0.000 |
0.000 |
48.900 |
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Employee Cost |
0.000 |
0.000 |
8.100 |
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Miscellaneous Expenses |
0.000 |
0.000 |
6.800 |
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Raw Material Consumed |
509.572 |
871.732 |
1207.600 |
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Excise Duty |
0.000 |
0.000 |
152.700 |
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Power and Fuel |
0.000 |
0.000 |
68.200 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
[22.300] |
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Salaries, Wages, Bonus, etc. |
11.814 |
10.560 |
0.000 |
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Operating Expenses |
36.086 |
33.264 |
0.000 |
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Interest |
110.624 |
24.458 |
4.100 |
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Prior year adjustment |
0.068 |
0.010 |
0.000 |
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Depreciation & Amortization |
14.741 |
14.457 |
14.300 |
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Total Expenditure |
904.454 |
1038.831 |
1530.300 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
0.85 |
0.73 |
0.54 |
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TURNOVER RATIOS |
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Fixed Assets |
3.11 |
3.82 |
5.08 |
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Inventory |
8.15 |
9.56 |
19.04 |
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Debtors |
12.31 |
21.64 |
33.74 |
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Interest Cover Ratio |
0.60 |
0.65 |
[1.22] |
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Operating Profit Margin(%) |
8.64 |
2.65 |
0.61 |
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Profit Before Interest And Tax Margin(%) |
7.08 |
1.39 |
[0.33] |
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Cash Profit Margin(%) |
[3.13] |
0.48 |
0.34 |
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Adjusted Net Profit Margin(%) |
[4.68] |
[0.78] |
[0.60] |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
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Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Incorporated as Sharda Industries and Engineering Works Private Limited
in Sep.'60, Sharda Ispat became a public limited company on 12 Mar.'85. It
acquired its present name in Oct.'89. The company product range includes hot
rolled products of all grades. It also set-up another unit at Hingna in 1982-83
with an installed capacity of 25,000 tpa. The present promoters of the company
are J K Sarda, G D Sarda.
For the proposed expansion, the company came out with a public issue of
19,50,000 equity shares of Rs 10 each for cash at a premium of Rs 10 each per
share aggregating to Rs 39.000 Millions.
In 1995-96, the company has come out with modernisation-cum-expansion for iron
and steel to increase the installed capacity by 35,000 tpa. The New project of
automatic rerolling mill at Kamptee Road and modernisation project at Hingna
have been completed.
Due to the general slow down in economy accompanied by declinig demand for
steel, during the year 1999, the company is going to make reference to the BIFR
for a Sick Company and measures for rehabilitation.
As mentioned in the previous the company has been delcared sick and the company
is expecting that with the rehabilitation measures and support from bank and
financial institutions,the company will come out from its present crisis within
a short period and regain its position.
Review of
Operations:
During the year the iron and steel market conditions were better as
compared to the last year. The bfavourable market conditions backed by increase
in conversion job works services of the company helped by the company to
witness the encouraging results.
During the period, the production of rolled products and by products in
conversion account was increased by 182% and that of in own account where the
sale value results on higher side, was reduced by 85%. Deposit the said modes
of Production the company could post sales turnover of Rs. 945.787 Millions
(Own Unit : Rs. 811.317 Millions ands Conversion/ Services Rs. 134.470
Millions) ( 71529 MT) as against Rs. 1151.032 Millions (Own Unit : R.s 111.305
Millions and Conversion Services Rs. 49.727 Millions ( 64711 MT) during the
previous year.
Nevertheless, due to provisioning for the interest liability on the
working capital loan of the Company for the financial year 2006-2007, the
Company incurred net loss after taxation provision, of Rs. 44.260 Millions. As
such the Company earned profit before depreciation, interest and tax of Rs.
812.994 Millions.
Directors:
Mr. J.C Saboo and Mr.H. K. Das retire by rotation and being eligible,
offer themselves for reappointment.
During the year , the Board of Directors of the Company at their meeting
held on 02.03.2007 re-appointed Mr. Jugalkishore Sarda, Mr. Nandkishore Sarda
and Mr, Ghanasyam Sarda as Managing Director, Joint Managing Director and
Whole-Time Director of the Company respectively for the period of five years
effective from 01.04.2007 till 31.03.2012 on the terms and conditions as are
set out in the respective agreement entered into between the Company and the
said appointees. The Said appointments were duly approved by the Central
Government under section 269, 198(4), 309(3) and 637(A) of the Companies Act
1956 to the said appointments was obtained by the Company on 27.07.2007.
CONTINGENT
LIABILITIES:
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Particulars |
31.03.2007 |
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i) Letter of Bank Guarantee |
0.386 |
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ii) Claims not Acknowledged as debts by the company on account of : |
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a) Labour Cases |
1.375 |
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b) Interest on unpaid Lease Rent |
0.733 |
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c) Various Claims made by customers |
0.001 |
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d) Gram Panchayat Tax |
0.449 |
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ii) Sales Tax Matters under appeals for which the Company denies
liability |
1.940 |
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iv) Excise Duty matters under appeals for which Company denies
liability |
3.560 |
Fixed Assets:
·
Land
·
Freehold Land
·
Leasehold Land
·
Building
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Plant and Machinery
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Furniture and Fixture
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Office Equipments
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Vehicles
·
Computers
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.46.96 |
|
UK Pound |
1 |
Rs.83.91 |
|
Euro |
1 |
Rs.66.365 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
-- |
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OPERATING SCALE |
1~10 |
1 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
1 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
-- |
|
--LEVERAGE |
1~10 |
2 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
-- |
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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 |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
13 |
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 |
|