MIRA
INFORM REPORT
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Report Date : |
04.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
RAMA STEEL TUBES LIMITED |
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Registered Office : |
15/1, 2nd Floor, Asaf Ali Road, Delhi – 110 002 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.02.1974 |
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Com. Reg. No.: |
55-007114 |
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CIN No.: [Company
Identification No.] |
U27201DL1974PLC007114 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR08845E |
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PAN No.: [Permanent
Account No.] |
AAACR0001P |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Steel Pipes, Steel Tubes, Black Steel
Pipes, Black Steel Tubes |
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 400000 |
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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 and reputed company having
satisfactory track. Trade relations are fair. Business is active. General
financials position is satisfactory. Payments are reported as usually correct
and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mrs. Minakshi Kapoor |
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Designation : |
E R P Executive |
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Date : |
27.09.2008 |
LOCATIONS
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Registered Office : |
15/1, 2nd Floor, Asaf Ali Road, New Delhi – 110 002, India |
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Tel. No.: |
91-11-23235458 / 23230459 / 23238439 |
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Mobile No.: |
91-9310411533 |
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Fax No.: |
91-11-23235553 |
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E-Mail : |
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Website : |
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Area : |
150 Sq.fts |
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Location : |
Rented |
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Factory : |
B -21, Site VI, Industrial Area, Sahibabad, Ghaziabad-201010, Haryana,
India |
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Area : |
20 Acre |
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Location : |
Owned |
DIRECTORS
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Name : |
Mrs. Richi Bansal |
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Designation : |
Director |
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Address : |
D -104, Preet Vihar, New Delhi – 110 092, India |
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Date of Birth/Age : |
10.09.1979 |
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Qualification : |
B Tech (Mechanical) |
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Date of Appointment : |
01.05.2007 |
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Name : |
Mr. Rakesh Kumar Bansal |
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Designation : |
Director |
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Address : |
39/41, Punjabi Bagh, New Delhi – 110 026, India |
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Date of Birth/Age : |
01.09.1962 |
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Date of Appointment : |
31.12.1996 |
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PAN No.: |
AADPB7360D |
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Name : |
Mr. Harbans Lal Bansal |
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Designation : |
Director |
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Address : |
39/41, Punjabi Bagh, New Delhi – 110 026, India |
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Date of Birth/Age : |
01.04.1930 |
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Qualification : |
B. Com |
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Date of Appointment : |
26.02.1974 |
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E-Mail : |
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Name : |
Mr. Naresh Kumar Bansal |
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Designation : |
Director |
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Address : |
D -104, Preet Vihar, New Delhi – 110 092, India |
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Date of Birth/Age : |
24.04.1954 |
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Qualification : |
B. Com |
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Date of Appointment : |
26.02.1974 |
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E-Mail : |
KEY EXECUTIVES
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Name : |
Mrs. Minakshi Kapoor |
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Designation : |
E R P Executive |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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(As on
30.09.2005) :- |
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Mr. Harbans Lal Bansal |
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31450 |
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Mr. Jaswant Rai |
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5300 |
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Mr. Rahkumar Mr. Ram Lal |
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3000 |
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Mr. Sudershan Kumar |
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2250 |
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Mr. Bansal Kumar Naresh |
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25000 |
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Mr. Ashok Kumar |
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3000 |
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Mr. Kanta Rani |
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13000 |
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Mrs. Kamla devi |
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4000 |
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Mr. Santosh Kumari |
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11100 |
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Mr. Raj Rani |
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4000 |
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Mr. Santosh Kumari |
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3000 |
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Mr. Ajay Kumar Bansal |
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14200 |
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Mr. Pradeep Kumar Bansal |
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4625 |
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Mr. Pramod Kumar Bansal |
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4625 |
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Mr. Virendra Kumar |
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3500 |
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Mr. Arun Kumar Bansal |
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4500 |
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Mr. Rajesh Kumar Bansal |
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5000 |
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Mr. Rakesh Kumar Bansal |
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19500 |
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Mr. Harbans Lal HUF |
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15700 |
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Mr. Parveen Bansal Mr. Shajay Kumar Bansal |
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6500 |
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Mr. Taruna Bansal Mr. Rakesh Bansal |
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7600 |
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Mrs. Reeta Rani |
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2200 |
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Mr. Kumud Bansal |
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3000 |
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Mr. Richi Bansal |
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5500 |
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Mr. Nikhil Naresh Bansal |
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3500 |
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Mr. Vipul Ajay Bansal |
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4300 |
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Mrs. Shweta Bansal |
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2900 |
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Mrs. Ridhi Bansal |
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3100 |
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Mr. Raman Garg |
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1300 |
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Mr. Sanjay Garg |
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1400 |
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Mr. Manju Garg |
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1800 |
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Mr. Rishav Garg |
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1300 |
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Mr. Ashish Bansal |
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1300 |
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Mr. Abhishek Bansal |
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1300 |
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Mr. Rakesh Kumar HUF |
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5000 |
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Mr. Rama Garg |
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2000 |
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Naresh Kumar and Sons |
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3000 |
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Ajay Kumar and Sons |
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4550 |
Equity Share Breakup (Percentage of Total Equity):-
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Category (As on 30.09.2007) |
Percentage |
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Directors or relative of directors |
85.07 |
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Other top fifty (50) shareholders |
14.93 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Steel Pipes, Steel Tubes, Black Steel
Pipes, Black Steel Tubes |
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Products : |
Steel Pipes
and Tubes · Pre Galvanized Pipes and Tubes · Electrical Conduit Pipes and Tubes
Structural Steel
Products
PVC Pipes and Fittings · Selfit PVC-U Pipes and Fittings
Turnkey Projects |
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Brand Names : |
“T.T.T.” |
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Exports : |
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Countries : |
Germany, UAE |
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Terms : |
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Selling : |
L/C, Credit |
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Purchasing : |
L/C, Credit (180 days) |
GENERAL
INFORMATION
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Customers : |
OEM’s |
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No. of Employees : |
125 |
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Bankers : |
Canara Bank, Quazi Hauz, Delhi – 110 006, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Prem Gupta and Associates (Mr. T Subrahmanyam) Chartered Accountants |
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Address : |
2, T.C., Jaina Complex, 1st Floor, Netaji Subhash Chand
Marg, Darya Ganj, New Delhi – 110 002, India |
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Associates/Subsidiaries : |
· Hi Tech Pipes Limited · Harso Steel Private Limited |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
248900 |
Equity Shares |
Rs. 10/- each |
Rs. 2.489
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
2.489 |
2.489 |
2.489 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
73.883 |
56.165 |
50.098 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
76.372 |
58.654 |
52.587 |
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LOAN FUNDS |
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1] Secured Loans |
188.997 |
152.189 |
84.427 |
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2] Unsecured Loans |
67.462 |
56.025 |
34.691 |
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TOTAL BORROWING |
256.459 |
208.214 |
119.118 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
332.831 |
266.868 |
171.705 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
77.646 |
37.772 |
38.895 |
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Capital work-in-progress |
14.600 |
16.562 |
0.319 |
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INVESTMENT |
0.500 |
0.500 |
0.501 |
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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 |
131.536
|
108.918 |
114.899 |
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Sundry Debtors |
146.884
|
124.386 |
92.495 |
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Cash & Bank Balances |
7.027
|
6.574 |
5.002 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
40.249
|
43.207 |
23.456 |
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Total
Current Assets |
325.696
|
283.085 |
235.852 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
85.611
|
71.051 |
103.626 |
|
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Provisions |
0.000
|
0.000 |
0.236 |
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Total
Current Liabilities |
85.611
|
71.051 |
103.862 |
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Net Current Assets |
240.085
|
212.034 |
131.990 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
332.831 |
266.868 |
171.705 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1424.876 |
1252.500 |
1375.520 |
|
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Other Income |
1.354 |
0.741 |
1.705 |
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Total Income |
1426.230 |
1253.241 |
1377.225 |
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Profit/(Loss) Before Tax |
22.555 |
10.614 |
12.104 |
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Provision for Taxation |
7.695 |
5.065 |
16.104 |
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Profit/(Loss) After Tax |
14.860 |
5.549 |
[4.000] |
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Export Value |
118.229 |
119.077 |
124.584 |
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Expenditures : |
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Raw Material Consumed |
986.034 |
930.803 |
1035.112 |
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Purchases made for re-sale |
142.095 |
25.081 |
78.213 |
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Consumption of stores and spares parts |
29.876 |
27.325 |
36.649 |
|
|
Increase/(Decrease) in Finished Goods |
[39.553] |
3.133 |
[34.758] |
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Salaries, Wages, Bonus, etc. |
10.402 |
8.881 |
8.522 |
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Managerial Remuneration |
5.400 |
2.100 |
2.100 |
|
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Payment to Auditors |
0.011 |
0.011 |
0.011 |
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Interest |
20.115 |
14.418 |
11.377 |
|
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Insurance Expenses |
1.173 |
1.729 |
1.326 |
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|
Power & Fuel |
16.273 |
14.687 |
0.211 |
|
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Depreciation & Amortization |
8.477 |
5.424 |
4.612 |
|
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Other Expenditure |
223.372 |
209.035 |
221.746 |
|
Total Expenditure |
14036.675 |
1242.627 |
1365.121 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.04
|
0.44 |
0.29 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.58
|
0.85 |
0.88 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.39
|
3.14 |
4.39 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.18 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.48
|
4.76 |
4.24 |
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|
Current Ratio (Current Asset/Current Liability) |
|
3.80
|
3.98 |
2.27 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Corporate
identity number of the company |
U27201DL1974PLC007114 |
|
Name of the
company |
RAMA STEEL TUBES
LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
15/1, 2nd Floor, Asaf Ali Road, New Delhi – 110 002, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
· Immovable Property · Book Debts · Movable Property · Floating Charge |
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Particular of
charge holder |
Canara Bank,
Quazi Hauz, Delhi – 110 006, India E-Mail: ca_rcg@yahoo.co.in |
|
Nature of
instrument creating charge |
Bank Letter dated
30.04.2008. |
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Date of
instrument Creating the charge |
30.04.2008 |
|
Amount secured by
the charge |
Rs. 143.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : @ 12.50% p.a
compounded monthly Terms of Repayment : Payable on Demand
Margin : 25% against stock
and 40% against book debts. Extent and Operation of the charge : 100% Others : To secure all
amounts payable under reduced OCC/ODBD Limit of Rs. 143.000 millions enjoyed
by the company. |
|
Short Particulars
of the property charged |
Hypothecation of
steel pipes and tubes and such other commodities belonging to the borrower
and all book debts of the company – both present and future. Collaterally
secured by all plant and machinery, motor vehicles and tools and accessories
and equitable mortgage of immovable properties of the Company situated at
Sahibabad Industrial Area, Sahibabad, Ghaziabad, Uttar Pradesh, India. |
|
Particulars of
the present modification |
The OCC/ODBD
limit reduced from Rs. 158.000 millions to Rs. 143.000 millions consequent
upon the liquidation of liability under an Adhoc enhancement of Rs. 15.000
millions granted on 07.04.2007 or merger of enhancement with a regular
enhanced limit now being granted to the company. Other terms and
conditions remained the same. |
WEBSITE DETAILS:-
Company Profile
The company is an ISO 9001 Company is one of the leading Manufacturers
of steel pipes, steel tubes, black steel pipes, black steel tubes, etc. in
India. Established in 1974, the company is one of the most trusted and established
name in the steel tube industry in the country. It has an ever-increasing
client-base in overseas markets. With its 20% exports rate, the company has
global presence in the Countries like United Kingdom, UAE, Sri Lanka, Ethiopia,
Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana etc. being its
prime markets.
The company's products include its range of MS ERW pipes (Black and Galvanized)
in 15mm to 200mm diameter pipes confirming to IS: 1239, IS: 1161, IS: 3589, IS:
3601 and IS: 4270 and other international standards - BS:1387 and 1139, DIN
2440, 2441, ASTM A-53, etc. Subject has a research and development cell (R and
D) which is constantly collecting market feedback and subsequently working
accordingly to the rapidly changing market and its clients. The company strives
to give the consumer the best value for money and thus build an ever-lasting
relationship with them.
Infrastructure
Subject has its state-of-the-art plant in the industrial belt of Sahibabad,
about 10km from the Indian capital, New Delhi. It is perhaps the best plant
producing steel pipes like black steel pipes, black steel tubes, etc. with the
hi-tech machinery and sophisticated testing equipment. The company has a strong
and extensively experienced staff whose expertise goes into the making of the
products.
The company works hard to maintain the quality of its products and at every
stage of its production has meticulous checks, tests and controls. A large and
dedicated quality-control team spends all its time and effort in making sure
that the products are of the highest grade.
Today, Subject has found place in several sectors ranging from the railways and
the army to power plants, telecom applications and irrigation projects. All due
to the best quality products and on-time delivery which the company strictly
adhers to in order to maintain a cordial and growing relationship with its
clients.
Quality and Certification
Quality is of foremost concern in their operations. To this end, they
have instituted a quality management system that ensures taht their high
standards of quality are maintained at all times. The ISO 9001:2000
certification of their operations is a vindication of their dedication and
commitment to quality.
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.46.88 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.64.99 |
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|