MIRA
INFORM REPORT
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Report Date : |
24.10.2008 |
IDENTIFICATION DETAILS
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Name : |
A.R.S. METAL PRIVATE LIMITED |
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Registered Office : |
D-109, 2nd Floor, LBR Complex, Anna Nagar East, Chennai-600102,
Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
19.09.1990 |
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Com. Reg. No.: |
032178 |
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CIN No.: [Company
Identification No.] |
U27209TN1990PTC032178 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA09800A |
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PAN No.: [Permanent
Account No.] |
AAACA5351P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of TMT and CTD Bars used by construction Machinery |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 830000 |
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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. Payments are p reported
as usually made as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED BY
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Name : |
Mr. Prabu |
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Designation : |
Account manager |
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Contact No.: |
91-9444389907 |
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Date : |
23.10.2008 |
LOCATIONS
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Registered Office : |
D-109, 2nd Floor, LBR Complex, Anna Nagar East, Chennai-600102,
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Tel. No.: |
91-44-43500687 |
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Fax No.: |
91-44-43500593 |
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E-Mail : |
ksmredd67@yahoo.co.in ( Imports) lgautham@indiatimes.com (
Marketing Head) md@arsmetals.com ( Suggestion
and Complaints) |
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Website : |
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Area : |
3500 sq.ft ( Rented) |
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Factory : |
B-1/S, Sipcot Industrial Complex, Gummidipundi-602201, |
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Tel. No.: |
91-44-27922552 |
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Fax No.: |
91-44-27922846 |
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Area : |
14 Acre (Owned) |
DIRECTORS
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Name : |
Mr. Ashwani K Bhatia |
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Designation : |
Director |
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Address : |
B-1/50, Paschim Vihar, New Delhi-110063, |
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Date of Birth/Age : |
19.09.1960 |
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Date of Appointment : |
19.09.1990 |
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Name : |
Mr. Deepak K Bhatia |
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Designation : |
Director |
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Address : |
No. 1822, 1st Floor, 13th |
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Date of Birth/Age : |
04.12.1967 |
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Date of Appointment : |
05.01.2005 |
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Name : |
Mr. C.V.S Murthi |
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Designation : |
Director |
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Address : |
576, Anuthama Apartments, |
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Date of Birth/Age : |
13.07.1966 |
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Date of Appointment : |
01.11.2005 |
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Name : |
Mr. Prem Dutt Bhatia |
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Designation : |
Director |
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Address : |
237, Ambica Vihar, Paschim Vihar, New Delhi-110087, |
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Date of Birth/Age : |
06.08.1943 |
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Date of Appointment : |
10.12.1991 |
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Name : |
Mr. Darshan Lal Bhatia |
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Designation : |
Director |
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Address : |
B-3/385, Paschim Vihar, New Delhi-110063, |
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Date of Birth/Age : |
12.07.1940 |
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Date of Appointment : |
08.09.2008 |
KEY EXECUTIVES
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Name : |
Mr. Prabu |
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Designation : |
Account manager |
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Mobile No. : |
91-9444389907 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ahswinikumar Bhatia |
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100010 |
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Renu Bhatia |
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70010 |
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Shika Bhatia |
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70000 |
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Rajesh Bhatia |
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62400 |
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Swarna Bhatia |
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5000 |
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Agyawanti Bhatia |
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117100 |
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P D Bhatia |
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36000 |
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Others |
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500 |
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Kmlesh |
|
10 |
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Shriram Enterprises |
|
500 |
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Saroj Bhatia |
|
500 |
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Vikas Talwar |
|
500 |
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Dharshan Trading Company |
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100 |
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Vineet |
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100 |
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Prem Parvin |
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100 |
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Shashi Kant Bhatia |
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5000 |
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Anita Bhatia |
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500 |
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Shiv Kumar |
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250 |
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I C Talwar |
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10 |
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Usha Talwar |
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10 |
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Gandini Garments |
|
7000 |
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Total |
|
475600 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Bodies corporate (not mentioned above) |
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35.00 |
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Directors or relatives of directos |
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64.00 |
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Other top fifty (50) shareholders (other than listed above) |
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1.00 |
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Toal |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of TMT and CTD Bars used by construction Machinery |
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Exports : |
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Countries : |
·
Madgaskar ·
Shri Lanka |
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Imports : |
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Countries : |
·
Singapore ·
Malasia ·
UK ·
Dubai |
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Terms : |
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Selling : |
Credit |
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Purchasing : |
L/C |
GENERAL INFORMATION
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Customers : |
·
T.N.Police Housing Corp, Chennai ·
TANSI ·
DRDO, Ministry of Defense ·
District Rural Development Agencies ·
Southern Railways ·
Tsunami Relief Source, Cuddalore ·
Hitech
Carbon (Birla) ·
Adani Agri
Logistics (TATA Group) ·
Corramendal
Sugar ·
Dalmia
Cements ·
Dung Sung
Automotive Limited, ·
Anil fire
works-Group of companies (virudhunagar) ·
Vijaya
Shanthi Builders ·
LIC India. ·
Automic power project, kalpakkam ·
Neyveli
Lignite Corporation, Neyveli ·
Capricorn
food products ·
M.A.S.
Subaiah College ·
D.S.R.
Engineering College (sivakasi) ·
Consolidation
Construction Corporation Limited ·
Appasamy
Real Estate ·
SAS Hotels ·
SAS
Realtors ·
Vasudha
Enterprises ·
Aswini
Apartments ·
True Value
Homes ·
Corramendal
Engineering ·
Southern
Pressing ·
Subbaiah
Constructions (Madurai) ·
Samson
Foundation ·
Prestige
Group of Companies ·
Ten Square
Developers, Chennai ·
Landmark
Constructions, Chennai ·
Navin's
Developers. Chennai ·
Ceebros
developers, Chennai ·
Ramaniyam Group, Chennai ·
KGEYES Residency Private Limited ·
Citilights
Properties Private Limited, Chennai ·
RPP
Constructions, Erode ·
A.R.Properties,
Chennai ·
A.I.Enterprises,
Chennai ·
Thenmalai
Steel Corporation ·
Modern
Mat.School, Nagoore. |
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No. of Employees : |
200 |
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Bankers : |
Canara Bank, Anna Nagar East Branch, Door No. 12 and 13 II Avenuel,
Round Tana, Chennai-600102, Tamilnadu, India |
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Facilities : |
CC Rs. 60.000 Millions TL Rs. 25.000 Millions LC Rs. 200.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ram and Kumar Chartered Accountant |
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Address : |
J.V.L Towers, New No. 51, Old No. 117, Nelson Manickam Road,
Chennai-600029, Tamilnadu, India |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs. 10/- each |
Rs. 15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1330000 |
Equity Shares |
Rs. 10/-
each |
Rs. 13.300
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
13.300 |
13.300 |
13.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
153.755 |
89.063 |
72.605 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
167.055 |
102.363 |
85.905 |
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LOAN FUNDS |
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1] Secured Loans |
112.457 |
167.865 |
72.461 |
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2] Unsecured Loans |
100.628 |
44.436 |
95.610 |
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TOTAL BORROWING |
213.085 |
212.301 |
168.071 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
380.140 |
314.664 |
253.976 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
111.571 |
106.637 |
107.931 |
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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 |
170.398
|
117.435 |
102.526 |
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Sundry Debtors |
116.586
|
75.012 |
37.099 |
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Cash & Bank Balances |
63.140
|
34.196 |
21.528 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
60.608
|
40.177 |
24.635 |
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Total
Current Assets |
410.732
|
266.820 |
185.788 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
149.262
|
67.136 |
44.636 |
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Provisions |
7.788
|
1.692 |
1.395 |
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Total
Current Liabilities |
157.050
|
68.828 |
46.031 |
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Net Current Assets |
253.682
|
197.992 |
139.757 |
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MISCELLANEOUS EXPENSES |
14.887 |
10.035 |
6.288 |
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TOTAL |
380.140 |
314.664 |
253.976 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
1471.195 |
964.313 |
473.299 |
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Other Income |
4.651 |
2.199 |
0.000 |
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Total Income |
1475.846 |
966.512 |
473.299 |
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Profit/(Loss) Before Tax |
31.255 |
17.989 |
[13.715] |
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Provision for Taxation |
7.633 |
2.525 |
2.168 |
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Profit/(Loss) After Tax |
23.622 |
15.373 |
[15.883] |
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Expenditures : |
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Manufacturing Expenses |
1379.767 |
864.351 |
0.000 |
|
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Administrative Expenses |
56.824 |
47.102 |
0.000 |
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|
Increase/(Decrease) in Finished Goods |
[2.999] |
[26.653] |
0.000 |
|
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Depreciation & Amortization |
10.999 |
10.417 |
8.246 |
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Other Expenditure |
0.000 |
0.000 |
478.768 |
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Total Expenditure |
1444.591 |
948.523 |
487.014 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
1.60
|
1.59 |
[3.36] |
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Net Profit Margin (PBT/Sales) |
(%) |
2.12
|
1.87 |
[2.89] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.98
|
4.82 |
[4.67] |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.18 |
[0.16] |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.22
|
0.89 |
2.49 |
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Current Ratio (Current Asset/Current Liability) |
|
2.62
|
3.88 |
4.04 |
LOCAL AGENCY FURTHER INFORMATION
The Registered office of the company has been shifted from 163/ 1, K
Sons Complex, Praklasham Salai, Brodway, Chennai-600108, Tamilnadu, India to present
address w.e.f 10.06.2008
Trade References:
·
Mxco Steel Agency, Chennai
·
Steel and Tubes, Chennai
PRODUCTION AND
SALES PERFORMANCE
The outlook for Steel Industry appears to be optimistic in view of the higher
cumulative average growth rate (CAGR) in the Steel Segment. Development of
infrastructure, roads reconstruction activities and continuance of incentives
to housing sector will act as catalyst for further increase in demand for steel
and steel related products.
The rolling mill for manufacturing of TMT and CTD bars was successfully
running. The company has also branded their products as ‘ARS POWER’ and
obtained ISI certification besides the Quality certificate from AQSR, Michigan
USA. In view of the growth in Demand, the company is taking steps to improve
the efficiency, Quality standards and saving of energy.
Due to the improvement in the country’s economic scenario the steel
sector gained considerably. Being the second year of operation of Rolling mill
the company has gained a profit of Rs. 18.000 Millions, (Previous Year loss Rs.
13.700 Millions), from the turnover of Rs. 964.300 Millions (Previous Year Rs.
473.300 Millions). During the year the company has performed well in all facets
of business and the outstanding performance of the company paved the way of the
improvement in bottom line to Rs. 18.000 Millions from the loss of Rs. 13.700
Millions in the previous year.
Fixed Assets:
·
Lease Hold Land
·
Factory Building
·
Air Conditioner
·
LAB Equipments
·
Office Equipments
·
Refrigirator
·
Vaccum Cleaner
·
Furniture and Fittings
·
Electrical Equipments
·
Telephone
·
Vehicles
·
Generators
·
Handling Equipments
·
Plant and Machinery
·
Shrreeding Machine
·
Computer
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U27209TN1990PTC032178 |
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Name of the
company |
A.R.S. METAL PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
D-109, 2nd Floor, LBR Complex, Anna Nagar East,
Chennai-600102, Tamilnadu, India |
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Type of charge |
Book Debts Movable Property Floating Charge |
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Particular of
charge holder |
Canara Bank, Anna Nagar East Branch, Door No. 12 and 13 II Avenuel, Round
Tana, Chennai-600102, Tamilnadu, India |
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Nature of
description of the instrument creating or modifying the charge |
Common
Hypothecation Agreement |
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Date of
instrument Creating the charge |
06.02.2008 |
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Amount secured by
the charge |
Rs. 241.400
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per the
sanction letter and Agreements executed on 06.02.2008 Terms of
Repayment As per the
sanction letter and Agreements executed on 06.02.2008 Margin OCC : 25% ODB : 40% I/FLC : 10% BG : 10% TL : Margin has
already been met and projects have been completed Extent and
Operation of the charge As per sanction
letter as mentioned in column No. 14 of this eform 8 Others
All other term
and conditions as per sanction letter and agreements executed on 06.02.2008 |
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Short particulars
of the property charged |
Hypothecation by
way of EXCLUSIVE FIRST CHARGE in favour of the Bank as this being take over
finance form oriental bank of commerce, overseas branch, nandanam, Chennai-35
with sanction of additional limits. ·
All
stocks and Book debts of the company, both present and future ·
All
plant and machinery, both present and future ·
All
other movable assets of the Company |
AS PER WEBSITE:
Profile:
Driven by its inner power. Subject has chosen to be an integrated
steel plant which is all set out to introduce ARS power TMT and CTD bars
produced with internationally accepted.
Belgium and AQSR, Michigan., USA and American Technology has
made thus new generation ribbed reinforcement bar possible and separates it
from traditional bar and other TMT and CTD bars in its techniques of
manufacturing consequently, its properties to all the international Standards.
The Company found its modest beginning in the year 1992. It entered into the
manufacturing of MS casting at Gummidipoondi and later one at Pondicherry.
Knowing the widespread acceptance from the steel bar manufactures throughout
south India, the company decided to start its own automatic rolling mill with
latest technology and well equipped infrastructure.
Subject is an ISO 9002 certified company, the largest single integrated mill
and is one of the few quality conscious companies of Southern India.
The Plant
The fact that superior ARS power, produced with superior TEMPCORE
technology. TEMPCORE and quality management by AQSR, Michigan, USA, Separated
its identity from the competitors, ARS power is produced in a large speed mill
with production speed of 27 and capacity of 15000m/s per month.
This is one of the most advanced and largest mill in south India.
The mill has three zone, soaking cum heating furnace, which is controlled by
microprocessor based PLC controllers, This ensures the uniform soaking and
heating of the billets which makes the behavior of more predictable, once it
passes the stands. This is repeater based billet mill and has the capacity of
30tms/hr.
ARS
Power Stands Apart
TMT reinforced bars (Thermo Mechanical Treated
Bars) / Grade FE 415 – grade Fe 600 CTD
reinforcement bars(cold twisted deformed bar)
ARS Power has found its firmness under the revolutionary technology of
TEMPCORE. This is the reason of its standing firm and standing apart from
competition, in terms of.
World’s best technology
·
They use
TEMPCORE technology of Belgium
·
High pressure
water flow with whirlpool effect around the bar in quenching box, resulting in
uniform quenching
·
American air
spray system is being used immediately after the quenching box.
·
By virtue of
the above process they get required Fe grade and very high flexibility
uniformly throughout the bar.
In-house raw materials
They have 4 induction furnaces
with casters to produce raw-material of required quality.
Uniformed Strength
·
The Acid test
conducted with the bars reveals the truth of quality obtained throughout the
bars.
·
Proper
uniform ring shows the uniform whirlpool effect that has done throughout the
bar in the process
·
This ring
confirms to the uniformed strength obtained by the brand which is not the case
in all other brands.
Earth Quake Resistant
·
Owing to
Shock Absorbing Properties (SAP technology) the bars are more resistant to
earth quakes.
·
After the
quenching the outer surface of the bar becomes hard, whereas , the inner core
remains soft resulting in high strength and flexibility at the same time.
Fire Resistant
Tests results have shown that
there is no loss in yield strength up to 500 c.
Corrosion Resistant
·
With the
advanced technology they are making CRS quality (special chemical composition
is being used)
·
In cold
twisting the scale layer formed on the bar is removed whereas in TMT the scale
layer is intact with the bar. This layer keeps the bar corrosion free.
Superior Weldability
·
The bars has
higher weldbility as they restrict the carbon percentage below 0.25 max.
·
No loss of
strength at weld joints
·
No
pre-heating or post heating is required during welding
Superior bonding
·
Superior
bonding strength between the bar and the concrete layer because of scientific
external ribs.
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.49.79 |
|
UK Pound |
1 |
Rs.81.27 |
|
Euro |
1 |
Rs.63.91 |
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 |
YES |
|
--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 |
|