MIRA INFORM REPORT

 

 

Report Date :

23.10.2008

 

IDENTIFICATION DETAILS

 

Name :

VIKI INDUSTRIES PRIVATE LIMITED

 

 

Registered Office :

No. 22 (Old No.12), First Cross Street, C.I.T. Colony, Mylapore, Chennai – 600004, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

16.08.1990

 

 

Com. Reg. No.:

18-19523

 

 

CIN No.:

[Company Identification No.]

U27209TN1990PTC019523

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEV02424C

 

 

PAN No.:

[Permanent Account No.]

AAACV2003P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Re-Rolled Products and Steel Ingots

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

 

 

 

Maximum Credit Limit :

USD 930000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Swaminathan

Designation :

Accountant

Contact No.:

91-9444446148

Date :

21.10.2008

 

 

LOCATIONS

 

Registered Office :

No. 22 (Old No.12), First Cross Street, C.I.T. Colony, Mylapore, Chennai – 600004, Tamilnadu, India

Tel. No.:

91-44-24986294 / 24990101

Mobile No.:

91-9444446148

Fax No.:

91-44-24987090

E-Mail :

ssviki@yahoo.co.in

kkachennai@rediffmail.com

Area :

2400 Sq. ft.

Location :

Rented

 

 

Factory :

D. I.-19, Sapcot Industrial Complex, Gummidi Poodi, Tiruvallar District 

Area :

25 Acre

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr Seetha Rama Reddy M

Designation :

Director

Address :

Anuthama Apartments, Chintalakuppam Village, SR Kandgriga,Gummidipoondi, Tiruvallur -601201, Tamilnadu, India

Date of Birth/Age :

30.03.1948

Date of Appointment :

06.01.2000

 

 

Name :

Mrs. Sajlaja Devi Reddy

Designation :

Whole Time Director

Address :

4, Nandanam Extn, 10th Street, Alwarpet, Chennai – 600035, Tamilnadu, India

Date of Birth/Age :

05.09.1957

Date of Appointment :

12.02.2007

 

 

Name :

Mr. Gautam Reddy Gunapati

Designation :

Whole Time Director

Address :

No.4, 6th Street, Sutlandgate, Nungambakkam, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

11.05.1970

Date of Appointment :

09.12.1999

 

 

Name :

Mr. Chandrashekhar Reddy Maramreddy

Designation :

Director

Address :

12/5, Janakiram Reddy Colony, 2nd Street, Villivakkam, Chennai – 600049, Tamilnadu, India

Date of Birth/Age :

01.07.1968

Date of Appointment :

03.12.2001

 

 

Name :

Mr. A Munikannaiah Konidala

Designation :

Director

Address :

No. 10, Raghavan Street, Choolaimedu, Chennai – 600 035, Tamilnadu, India

Date of Birth/Age :

05.04.1955

Date of Appointment :

10.04.2006

 

 

KEY EXECUTIVES

 

Name Name :

Mrs. Vasumathi Rajagopalan

Designation :

Secretary

Address :

Amrith Varhas, Old No. 26, New No. 18, Kaveris Street, Rajajinagar, Villiwakkkam,  Chennai – 600049, Tamilnady

Date of Birth/Age :

25.04.1969

Date of Appointment :

01.06.2006

 

 

Name :

Mrs. N Banumathy

Designation :

Secretary

Address :

Flat – C, 11th Floor, 2 – B, West Road West CIT Nagar, Chennai - 600035, Tamilnadu

Date of Birth/Age :

11.05.1969

Date of Appointment :

01.06.2001

 

 

Name :

Mr. Nitya Reddy

Designation :

Secretary

Address :

14, Nandanam 10th Street Extn, Nandanam, Chennai – 600035, Tamilnadu, India

Date of Birth/Age :

06.08.1978

Date of Appointment :

12.02.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 31.03.2007)

Names of Shareholders

No. of Shares

G Gautam Reddy

1407145

G Deepthi

2644635

M Seetha Rama Reddy

10

M/s Sheena Agro Farms Privavate Limited

1798200

M Chandrasekar Reddy

10

 

 

Total

5850000

 

Equity shares Breakup (percentage of total equity)

(As on 30.09.2007)

Category

Percentage

Bodies Corporate

30.74

Directors or Relative of director

69.26

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Re-Rolled Products and Steel Ingots

 

 

Products :

ITC Code

Product Description

721490

Steel

 

 

Imports :

 

Products :

Steel

Countries :

·         Eurpoe

·         USA

·         Australia

 

 

Terms :

 

Selling :

Credit (7 to 10 days maximum)

 

 

Purchasing :

L/C

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Steel Ingots

MT

120.000

120.000

-

Re-Rolled Products

MT

120.000

120.000

36557.01

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

·         Traders

·         Corporate

 

 

No. of Employees :

400 (In Office 30 and In Factory 370)

 

 

Bankers :

Indian Overseas Bank

Commercial and Institutional Credit Branch

98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India

 

Indian Bank

Peters Road Branch, 98, Peters Road, Madras – 600 086, Tamilnadu, India

Facilities :

 

Secured Loans

(As on 31.03.2007)

Rs. In millions

HP Loans from Banks

(Net of future hire charges)

(Secured against Hypothecation of the specific asset)

1.413

Term Loan

 

Indian Overseas Bank Term Loan

1.000

Interest accrued and due

(Secured (i) Against First charge on the entire current Assets of the company. (ii) Collateral security – Second charge on the entire current assets.

0.016

 

 

OCC Account :

 

Indian Overseas Bank C and IC Branch – OCC 90

(Secured (i) Against First charge on the entire current Assets of the company. (ii) Collateral security – Second charge on the entire current assets.

67.097

 

Unsecured Loans

(As on 31.03.2007)

Rs. In millions

Sales Tax Deferral

17.599

 

 

Total

 17.599

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

P.A. Reddy and Company

Chartered Accountants

Address :

24 II / 422 A, Saraswathi Nagar, Nellore – 524003, Andhra Pradesh, India

 

 

Phone :

91-861-2326666

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

6000000

Equity Shares

Rs.10/- each

Rs.60.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5850000

Equity Shares

Rs.10/- each

Rs.58.500 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

58.500

58.500

58.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

127.088

121.333

126.831

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

185.588

179.833

185.331

LOAN FUNDS

 

 

 

1] Secured Loans

69.526

71.547

42.779

2] Unsecured Loans

17.600

26.315

36.028

TOTAL BORROWING

87.126

97.862

78.807

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

272.714

277.695

264.138

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

105.842

110.680

121.695

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

3.371

5.431

5.331

DEFERREX TAX ASSETS

0.952

3.901

4.094

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
98.336

104.573

66.179

 

Sundry Debtors
75.811

65.378

58.760

 

Cash & Bank Balances
1.359

2.258

4.455

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
137.000

108.657

89.560

Total Current Assets
312.506

280.866

218.954

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
115.723

105.687

71.391

 

Provisions
34.234

17.496

14.545

Total Current Liabilities
149.957

123.183

85.936

Net Current Assets
162.549

157.683

133.018

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

272.714

277.695

264.138

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2007

31.03.2006

Sales Turnover

 

865.073

889.242

Other Income

 

0.000

0.000

Total Income

 

865.073

889.242

 

 

 

 

Profit/(Loss) Before Tax

 

9.645

(5.113)

Provision for Taxation

 

3.891

0.385

Profit/(Loss) After Tax

 

5.754

(5.498)

 

 

 

 

Total Expenditure

 

855.428

894.355

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
0.67

(0.62)

NA

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.11

(0.57)

NA

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.31

(1.31)

NA

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.05

(0.03)

NA

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.28

1.23

0.89

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.08

2.28

2.55

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trade References

 

·         Chitrakoot Steels and Power Private Limited, Chennai

 

Form No. 8

 

Name of the company

VIKI INDUSTRIES PRIVATE LIMITED

Presented By

V Sridhar Reddy, Director

1) Date and description of instrument creating the change

Agreement dated 4th November, 1994 being instrument of hypothecation of movable property goods.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.10.000 millions against hypothecation of movable property goods.

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All raw materials, semi finished, finished goods, work in process, spares and consumables.

 

4) Gist of the terms and conditions and extent and operation of the charge.

Interest @ 7.25% p.a. over the Reserve Bank of India rate with a minimum of 19.25% shall be calculated on daily balances with quarterly rests or at such rates and rests as may be revised as per the instructions of Reserve Bank of India from time to time.

5) Name and Address and description of the person entitled to the charge.

Indian Bank

Peters Road Branch, 98, Peters Road, Madras – 600 086, Tamilnadu, India

6) Date  and brief description of instrument modifying the charge

7th January, 1995

Agreement for increase of Cash Credit Limit

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Increase in borrowing limit from Rs.10.0000 millions 20.000 millions.

 

 

Corporate identity number (CIN) Foreign company registration number

U27209TN1990PTC019523

Name of the Company

VIKI INDUSTRIES PRIVATE LIMITED

Address

No. 12, Cross Street, C.I.T. Colony, Mylapore, Chennai – 600004, Tamilnadu

This form is for

Modification of Charge

Type of Charge

·         Book Debts

·         Movable Property (not being pledge),

Particular of charge holder

Indian Overseas Bank

Commercial and Institutional Credit Branch

98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India

Nature of instrument creating charge

Letter of Hypothecation dated 23.04.2008

Date of instrument Creating the charge

23.04.2008

Amount secured by the charge

Rs.550.000 millions

Brief of the principal terms and conditions 

·         Rate of Interest

Cash Credit: Interest BPLR (presently 13.25% per annum at present)

Terms Loan: BPLR (Minimum 13.25% per annum at present).

 

·         Terms of repayment

Cash Credit : repayable on demand

Term Loan 180 millions : 72 monthly instalments of Rs.2.500 millions

Term Loan 10 millions : 36 monthly instalments of Rs.0.278 million

 

·         Margin

Term Loan – 25%

Cash Credit - 25% on stock and receivables.

Letter of Credit – 10%

 

·         Extent and operation of charge

The charge operates for all the monies due by the Borrower including additional interest, penal interest, compound d interest.

Particulars of the property charged

Cash Credit : First charge on the entire current assets of the Company.

Term Loan : First charge on the fixed assets of the Company, First paripassu Charge on the fixed assets of integrated steel project, Naidupet.

Letter of Credit : Documents of title to goods / accepted hundies / first charge on the entire current assets of the Company.

Collateral : Charge on residual value of current assets of term loan and charge on residual value of fixed assets for working capital limits.

Particular of the present modification 

Nature of Facility

Enhanced Limits

Existing Limits

Term Loan

10.000 millions

30.000 millions

Cash Credit

130.000 millions

110.000 millions

Term Loan

180.000 millions

Nil

Letter of Credit

230.000 millions

180.000 millions

 

Fixed Assets

 

·         Escorts Hydraulic Crane

·         Land

·         Factory Building

·         Plant and Machinery

·         Electrical Installation

·         Plant and Machinery DG

·         Office Equipment

·         Computers

·         Furniture and Fixtures

·         Vehicles

 

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.49.29

UK Pound

1

Rs.80.40

Euro

1

Rs.63.35

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions