MIRA
INFORM REPORT
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Report Date : |
22.10.2008 |
IDENTIFICATION DETAILS
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Name : |
NIDHI PIPES LIMITED |
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Registered Office : |
SCO 44, Sector 26, Madhya Marg, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.04.1991 |
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Com. Reg. No.: |
03-11252 |
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CIN No.: [Company
Identification No.] |
U27203CH1991PLC011252 |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacture of Square
/ Rectangular Pipes, Scaffolding Pipes, Grooved Pipes, O.D. Series (Black /
G.I. Pipes) etc. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 40 days |
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Litigation : |
Clear |
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Comments : |
Mr. Rohit Mittal almost agreed to part require details but never did
it. Subject is an established company having moderate track. It’s payments
are slow by average 40 days. Financial position is moderate. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
INFORMATION PARTED BY
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Name : |
Mr. Rohit Mittal |
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Contact No.: |
91-9915400970 |
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Date : |
20.10.2008 |
LOCATIONS
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Registered Office : |
SCO 44, Sector 26, Madhya Marg, |
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Tel. No.: |
91-1762-790136 / 636790 |
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Mobile No.: |
91-9356055711 / 9814099970 |
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Fax No.: |
91-1762-654946 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Factory : |
Opposite Focal Point, Derrabassi, |
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Tel. No.: |
91-1762-280179 / 280479 |
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Fax No.: |
91-1762-280179 |
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E-Mail : |
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Area : |
Owned |
DIRECTORS
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Name : |
Mr. Vijay Mittal |
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Designation : |
Director |
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Address : |
1082, Sector 27B, |
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Date of Birth/Age : |
30.05.1956 |
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Qualification : |
B. Com. |
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Date of Appointment : |
05.04.1991 |
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Name : |
Mr. Yash Paul Jindal |
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Designation : |
Director |
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Address : |
243, Sector 19 A, |
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Date of Birth/Age : |
21.01.1957 |
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Qualification : |
Graduate |
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Date of Appointment : |
03.04.1991 |
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Name : |
Mr. R. K. Mahendru |
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Designation : |
Director |
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Date of Birth/Age : |
21.06.1996 |
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Qualification : |
Engineer |
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Name : |
Mr. Jagjit Singh |
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Designation : |
Director |
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Address : |
91, Sec – 19A, |
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Date of Birth/Age : |
04.07.1952 |
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Date of Appointment : |
22.07.1998 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2005
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Names of Shareholders |
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No. of Shares |
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Vijay Kumar Mittal |
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440045 |
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Yash Paul Jindal |
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172110 |
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Nidhi Mittal |
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15350 |
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Jatinder Paul |
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21750 |
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Jagdish Rai |
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43530 |
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Jaswant Rai |
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8000 |
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Rohit Mittal |
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40400 |
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Pooja Jindal |
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5300 |
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Shelly Jindal |
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3250 |
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Harish Jindal |
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3650 |
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Sunita Garg |
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4900 |
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Bhagwant Rai Jindal |
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9990 |
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Tejwant Rai |
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4000 |
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Sushila Devi |
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22310 |
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Seema Mittal |
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265930 |
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Karuna Jindal |
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60975 |
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Kusum Jindal |
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2000 |
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PSIDC |
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76500 |
AS ON 29.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Public Financial Companies |
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6.33 |
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Directors or relatives of directors |
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93.67 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Square
/ Rectangular Pipes, Scaffolding Pipes, Grooved Pipes, O.D. Series (Black /
G.I. Pipes) etc. |
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Products : |
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GENERAL INFORMATION
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Customers : |
Government Department |
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No. of Employees : |
20 |
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Bankers : |
Not Available |
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Financial
Institution : |
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Auditors : |
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Name : |
Jain and Associates Chartered Accountants |
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Address : |
SCO 819-820, Sector – 22, |
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E-Mail : |
CAPITAL STRUCTURE
AS ON 29.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1250000 |
Equity Shares |
Rs. 10/- each |
Rs. 12.500 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1250000 |
Equity Shares |
Rs. 10/- each |
Rs. 12.500 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 |
12.500 |
12.500 |
12.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.436 |
2.436 |
2.436 |
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4] (Accumulated Losses) |
(29.644) |
(23.479) |
(24.540) |
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NETWORTH |
(14.708) |
(8.543) |
(10.104) |
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LOAN FUNDS |
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1] Secured Loans |
25.338 |
25.581 |
29.305 |
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2] Unsecured Loans |
10.817 |
10.959 |
3.602 |
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TOTAL BORROWING |
36.155 |
36.540 |
32.907 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
21.447 |
27.997 |
22.803 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
11.768 |
12.561 |
11.995 |
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Capital work-in-progress |
0.000 |
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 |
18.337
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15.832 |
7.333 |
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Sundry Debtors |
4.759
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1.288 |
5.511 |
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Cash & Bank Balances |
1.058
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2.296 |
4.051 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
3.695
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3.929 |
2.949 |
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Total
Current Assets |
27.849
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23.345 |
19.844 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
18.034
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7.909 |
9.036 |
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Provisions |
0.136
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0.000 |
0.000 |
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Total
Current Liabilities |
18.170
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7.909 |
9.036 |
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Net Current Assets |
9.679 |
15.436 |
10.808 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
21.447 |
27.997 |
22.803 |
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PROFIT & LOSS
ACCOUNT
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 |
(%) |
(4.71)
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(2.11) |
(1.65) |
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Net Profit Margin (PBT/Sales) |
(%) |
(4.68)
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(2.00) |
(1.65) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(15.48)
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(3.26) |
(4.57) |
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Return on Investment (ROI) (PBT/Networth) |
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(0.42)
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(0.14) |
(0.14) |
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Debt Equity Ratio (Total Liability/Networth) |
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(3.69)
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(5.20) |
(4.15) |
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Current Ratio (Current Asset/Current Liability) |
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1.53
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2.95 |
2.20 |
LOCAL AGENCY FURTHER INFORMATION
AS PER WEBSITE
Subject has been licensed to manufacture pipes under BIS Licence No. CM/L-9147176 for use in Irrigation, Water Supply, Fire Fighting and Sprinkler Irrigation. Pipes are made as per IS:11722 from tested Cold Rolled Steel Strips ('O' Grade; IS:513) with ERW process. The pipes are Hot Dip Galvanized in accordance with IS:4736 and are approved by the Defence.
Subject is made with finest quality Steel and Zinc Coating is done with High
Grade Zinc. Highest quality controls are exercised with the latest rolling mill
till the finishing of the product. Being ISO 9001-2000 company, their's is
Perfect Quality Control System which starts right from the arrival of raw
material till finished product is ensured without any compromise on quality and
they have in house testing facility and required laboratory.
Subject is an ISO 9001-2000 certified Company, member of NP
Group, is well established pipe manufacturing company since 1993. The Company
is located at industrial town of Derabassi near Chandigarh. The group is
managed by an efficient, dynamic and dedicated team of entrepreneurs committed
to excellence, in manufacture of galvanized steel pipes besides all types of
Papers and Boards.
To Save Time and Money and to make the customers aware of latest Standards and easy techniques, the group has pioneered into manufacture of Collared End Steel Pipe (CSP) with innovative and state of art Pipe Technology as per International Standards.
Subject has been licenced to manufacture these pipes under BIS Licence No. CM/L-9147176, which can be used in Irrigation, Water Supply, Fire Fighting and Sprinkler Irrigation and are made as per IS:11722 from tested Cold Rolled Steel Strips (IS:513) with ERW process. These pipes are Hot Dip Galvanized in Accordance with IS:4736 and are approved by the Defence.
The company, apart from above is also manufacturing MS & GI Pipes conforming to IS:1239; PART-I, under BIS Licence No. CM/L-9043164 since 1993 besides Scaffolding and Structural pipes.
Subject is an ISO 9001-2000 certified company, member of NP
group, is well established pipe manufacturing company since 1993. The company
is located at industrial town of Derabassi near Chandigarh. The group is
managed by an efficient, dynamic and dedicated team of entrepreneurs committed
to excellence, in manufacture of galvanized steel pipes besides all types of
papers and boards.
To save time and money and to make the customers aware of latest standards and easy techniques, the group has pioneered into manufacture of Collared End Steel Pipe (CSP) with innovative and state of art pipe technology as per international standards.
Subject has been Licenced to manufacture these pipes under BIS Licence no. CM/L-9147176, which can be used in irrigation, water supply, fire fighting and sprinkler irrigation and are made as per IS:11722 from tested cold rolled steel strips (IS:513) with ERW process. These pipes are Hot Dip Galvanized in Accordance with IS:4736 and are approved by the Defence.
The company, apart from above is also manufacturing MS & GI pipes conforming to IS:1239; PART-I, under BIS Licence no. CM/L-9043164 since 1993 Besides Scaffolding and Structural Pipes.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.12 |
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UK Pound |
1 |
Rs.79.95 |
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Euro |
1 |
Rs.62.41 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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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 |
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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 |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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33 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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