MIRA
INFORM REPORT
|
Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
BAHETI METAL AND FERRO ALLOYS LIMITED |
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Registered Office : |
A/2/3 L R Appartment, Opp. Police Commissioner Office, Shahibaug,
Ahmedabad – 380 004, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.12.1994 |
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Com. Reg. No.: |
04-24001 |
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CIN No.: [Company
Identification No.] |
U27109GJ1994PLC024001 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMB00015B |
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PAN No.: [Permanent
Account No.] |
AAACB4626L |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of Alloys |
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 310000 |
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Status : |
Satisfactory |
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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 reported as
usually correct and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Manish |
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Designation : |
Accounts Executive |
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Date : |
10.09.2008 |
LOCATIONS
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Registered Office : |
A/2/3 L R Appartment, Opp. Police Commissioner Office, Shahibaug, Ahmedabad
– 380 004, Gujarat, India |
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Tel. No.: |
91-79-22870213 / 25627681 / 25627682 |
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Fax No.: |
91-79-25627683 |
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E-Mail : |
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Location : |
Owned |
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Corporate Office : |
311, Gvmsa Limited, Odhav Road, Ahmedabad – 382 415, Gujarat, India |
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Tel. No.: |
91-79-22870213 / 25627681 |
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Factory : |
196, 197, Shreenath Industrial Estate, Post Sampat Behgam |
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Tel. No.: |
91-2716-23162123 |
DIRECTORS
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Name : |
Mr. Shanker B Shah |
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Designation : |
Managing Director |
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Address : |
6, Jivraj Nagar Society, Shahi Baug, Ahmedabad – 380 004, Gujarat,
India |
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Date of Birth/Age : |
17.02.1966 |
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Date of Appointment : |
28.12.1994 |
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Name : |
Mrs. Rupal B Shah |
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Designation : |
Director |
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Address : |
6, Jivraj Nagar Society, Shahi Baug, Ahmedabad – 380 004, Gujarat,
India |
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Date of Birth/Age : |
17.09.1942 |
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Date of Appointment : |
27.12.1996 |
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Name : |
Mrs. Savita S Shah |
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Designation : |
Director |
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Address : |
6, Jivraj Nagar Society, Shahi Baug, Ahmedabad – 380 004, Gujarat,
India |
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Date of Birth/Age : |
10.07.1968 |
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Date of Appointment : |
01.03.1998 |
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Name : |
Mr. Bansilal G Shah |
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Designation : |
Director |
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Address : |
23 Jay Gujarat Society, Opp. Police Com, Office Shahhibaug, Ahmedabad
– 380 004, Gujarat, India |
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Date of Birth/Age : |
05.09.1954 |
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Date of Appointment : |
15.02.2005 |
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Name : |
Mr. Jamnalal M Maliwal |
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Designation : |
Director |
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Address : |
B 304, Vasant Vihar, Near Dafnala Shahibaug, Ahmedabad – 380 004,
Gujarat, India |
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Date of Birth/Age : |
15.05.1968 |
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Date of Appointment : |
15.02.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
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Bodies corporate |
20.90 |
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Directors or relatives of directors |
79.10 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Alloys |
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Imports : |
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Countries : |
Gulf Countries |
GENERAL
INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
37 (In Office 12 and In Factory 25) |
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Bankers : |
State Bank of India GVMSAV Limited, Odhav Branch, Odhav, Ahmedabad – 382 415, Gujarat,
India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Wadhawan Pandya and Company Chartered Accountants |
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Address : |
213, Sampanna Complex, Opp. Havmor Restorent, Navrangpura, Ahmedabad –
380 009, Gujarat, India |
CAPITAL STRUCTURE
(As on 30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000 |
Equity Shares |
Rs.10/- each |
Rs.40.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3750000 |
Equity Shares |
Rs.10/- each |
Rs.37.500
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
37.500 |
37.500 |
37.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
24.398 |
22.576 |
16.422 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
61.898 |
60.076 |
53.922 |
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LOAN FUNDS |
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1] Secured Loans |
82.434 |
82.620 |
68.391 |
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2] Unsecured Loans |
6.922 |
4.785 |
3.045 |
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TOTAL BORROWING |
89.356 |
87.405 |
71.436 |
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DEFERRED TAX LIABILITIES |
4.544 |
4.696 |
5.193 |
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TOTAL |
155.798 |
152.177 |
130.551 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
24.563 |
25.468 |
26.670 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.656 |
0.656 |
0.056 |
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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 |
77.408
|
46.325 |
59.847 |
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Sundry Debtors |
54.429
|
78.488 |
69.297 |
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Cash & Bank Balances |
0.811
|
6.023 |
4.547 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
23.100
|
21.481 |
10.211 |
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Total
Current Assets |
155.748
|
152.317 |
143.902 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
16.147
|
20.179 |
36.201 |
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Provisions |
9.022
|
6.085 |
3.899 |
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Total
Current Liabilities |
25.169
|
26.264 |
40.100 |
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Net Current Assets |
130.579
|
126.053 |
103.802 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.023 |
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TOTAL |
155.798 |
152.177 |
130.551 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
686.390 |
629.107 |
476.336 |
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Other Income |
11.173 |
6.512 |
2.147 |
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Total Income |
697.563 |
635.619 |
478.483 |
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Profit/(Loss) Before Tax |
8.062 |
9.105 |
4.950 |
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Provision for Taxation |
(2.827) |
2.883 |
1.949 |
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Profit/(Loss) After Tax |
10.889 |
6.222 |
3.001 |
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Expenditures : |
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Raw Material Consumed |
577.304 |
521.344 |
353.344 |
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Purchases made for re-sale |
0.000 |
0.000 |
30.740 |
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Consumption of stores and spares parts |
0.519 |
0.398 |
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Increase/(Decrease) in Finished Goods |
(0.941) |
(0.279) |
(1.671) |
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Salaries, Wages, Bonus, etc. |
2.156 |
1.440 |
1.509 |
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Managerial Remuneration |
0.670 |
0.880 |
0.505 |
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Payment to Auditors |
0.067 |
0.067 |
0.055 |
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Interest |
8.599 |
8.075 |
6.181 |
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Insurance Expenses |
0.265 |
0.291 |
0.201 |
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Power & Fuel |
1.266 |
1.110 |
1.235 |
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Depreciation & Amortization |
1.696 |
1.562 |
1.676 |
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Other Expenditure |
97.900 |
91.626 |
79.758 |
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Total Expenditure |
689.501 |
626.514 |
473.533 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.56
|
0.98 |
0.63 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.17
|
1.45 |
1.04 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.47
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5.12 |
2.90 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13
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0.15 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.85
|
1.89 |
2.07 |
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Current Ratio (Current Asset/Current Liability) |
|
6.19
|
5.80 |
3.59 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Corporate
identity number of the company |
U27109GJ1994PLC024001 |
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Name of the
company |
BAHETI METAL AND FERRO ALLOYS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
A/2/3 L R Appartment, Opp. Police Commissioner Office, Shahibaug,
Ahmedabad – 380 004, Gujarat, India |
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This form is for |
Modification of
charge |
|
Type of charge |
·
Immovable
property ·
Book Debts ·
Movable
property (not being pledge) ·
Others |
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Particular of
charge holder |
State Bank of India GVMSAV Limited, Odhav Branch, Odhav, Ahmedabad – 382 415, Gujarat,
India |
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Nature of
instrument creating charge |
·
Supplemental
Agreement of Loan cum Hypothecation dated 23.06.2008 ·
Memorandum
for recording extension of mortgage by deposit of title deeds covering Enhanced limits and/or creation of equitable mortgage on additional
properties for existing limits and enhanced limits and additional facilities
dated 23.06.2008 ·
Sanction /
Renewal of credit facilities letter dated 12.06.2008 |
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Date of
instrument Creating the charge |
23.06.2008 |
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Amount secured by
the charge |
Rs.108.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
interest Working Capital : Interest ·
Terms of
repayment Repayable on Demand ·
Margin Raw Materials : 25% Stock in Process : 25% Finished Goods : 25% Book Debts / Receivables (Cover period 90 days) : 40% Bank Guarantee : 20% ·
Extent and
operation of the charge The existing credit facilities enhanced from Rs.98.500 millions to
Rs.108.500 millions secured by Hypothecation of entire stocks of RM, SIP, FG,
Other consumable stores, spares, book debts / receivables, all other current
asset and plant and machinery, Effluent Plant, Boilers, Electric installation
etc. both present and future of the company. The details of credit facilities as under: DCC (STC and B D) – 100.000 millions DCC (Book Debts) – (55.000) millions Bill Disc/DDB – (22.500), SLC – 7.500 millions BG – Rs.100.000 millions ·
Others The credit facilities of Rs.108.500 millions have been also secured by
memorandum for recording extension of mortgage by deposit of title deeds,
dated 23.06.2008 over factory land and building the company situated at Mouje
Sapa, Tal. Dehgam, Registration Dist. Ahmedabad Block No. 176, Adms.6393 Sq. Mts. Block No. 197, Adms.12793 Sq. Mts. Block No. 198, Adms 11100 Sq. Mts. Aggregate Adms. 30290 Sq. Mts. Together with super structure of
factory land and building thereon. |
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Particulars of
the property charged |
Hypothecation of entire
stock of RM, SIP, FG, Other consumable stores, spares, book debts/
receivables, all other current asset and plant and machinery located at Mouje
Sapa, Tal. Dehgam, Registration Dist. Ahmedabad |
|
Particulars of
the present modification |
By Execution of
aforesaid documents, the existing credit facilities enhanced from Rs.98.500
millions to Rs.108.500 millions secured by Hypo. Of entire
stocks of RM, SIP, FG, other consumables stores, spares, book debts /
receivables, all other current assets Plant and
machinery, Effluent plant, boilers, electric installation etc. both present
and future of Company Extension of
Equitable mortgage on immovable property of the company now the charge on
movables and immovables properties have been increased to Rs.108.500
millions. |
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.45.12 |
|
UK Pound |
1 |
Rs.79.60 |
|
Euro |
1 |
Rs.63.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
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 |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|