MIRA INFORM REPORT
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Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
|
Correct Name : |
GEOSTEEL SHPS |
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Registered Office : |
David
Gareji Street 36, Rustavi 3700 |
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Country : |
Georgia |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
25.05.2006 |
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Com. Reg. No.: |
436/024 Sh |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Manufacturers
of Thermo Mechanical
Treatment steel |
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 |
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Maximum Credit Limit : |
LARI 1,500,000 |
|
Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
Georgia |
c1 |
c1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company NAME
Geosteel ShPS (Correct)
Geosteel LLC (Requested)
company ADDRESS
Street :
David Gareji Street 36
Town :
Rustavi 3700
Country :
Georgia
Telephone : (995 34) 141 011 / Mobile (995 95)
489 601 (Jaspal Singh) / (995 91) 207 010 (Zaza
Sharmanashvili)
Fax :
(995 34) 141 011
E-Mail :
jsingh@geosteel.com.ge / zsharmanashvili@gmail.com
Website :
www.geosteel.com.ge
English
Translation : Geosteel Ltd
SENIOR COMPANY PERSONNEL
Name Position
1.
Hardeep Singh Managing Director
2.
Jaspal Singh Chief Financial Officer
3.
Zaza Sharmanashvili Chief Accountant
Total
Employees : 620
PAYMENTS
No
complaints have been heard regarding payments from local suppliers
or
banks.
Subject
was established in May 2008 and commenced production in June 2009. However
subject is a member of a well-established JSW Group of companies headed by JSW
Steel Ltd, India, which is chaired by Sajjan Jindal a well known businessman in
India. JSW is part of US $10 billion O.P.Jindal Group. It has grown to US$ 5
billion in little over a decade and has presence across various sectors –
Steel, Energy, Minerals, Port & Infrastructure, Cement, Aluminium and IT.
JSW Steel, the flagship company of the JSW Group, is today an integrated
steel manufacturer. JSW Steel is the largest private sector steel manufacturer
in terms of installed capacity.
Associations
inspire confidence and we consider it is acceptable to
deal
with subject for LARGE amounts, although it is normal accepted
practice for international suppliers to deal on secured terms with Georgian
importers.
Opinion
on maximum credit : LARI 1,500,000 (higher amounts can be considered with
assurances from shareholders)
Trade
risk assessment : Normal
PRINCIPAL BANKERS
NAME : BANK OF GEORGIA
Branch : Baratashvili Street 8
Town : Rustavi
Telephone:
(995 24) 158 025
Fax : (995 24) 158 025
The
company also has an account with :
Bank
Republic
Megobroba
Avenue 20
Rustavi
Tel:
(995 24) 125 555
Fax:
(995 24) 125 555
FINANCIAL INFORMATION
Private companies in Georgia are not required to
publish or disclose balance sheets. However, the subject interviewed offered the
following information :
Sales Turnover : LARI 72,000,000 - 2010 - exact
Net Profit : not given but stated to be
profitable
Financial
year ends 31 December.
Stand-alone
balance sheet as at 31 March 2010 applies to JSW Steel Ltd :
31 March 2010 31 March 2009
( Rupees
in crores)
SOURCES
OF FUNDS
Shareholders Funds:
Share
Capital
527.11 537.01
Reserves
and Surplus 9,179.23
7,422.24
Total 9,706.34
7,959.25
Loan
Funds
Secured
Loans 8,987.51
8,214.61
Unsecured
Loans 2,597.59
3,058.02
Deferred Tax Liability 1,964.95 1,421.16
Total 23,256.39
20,653.04
APPLICATION
OF FUNDS
Fixed
Assets
Gross
Block 21,795.58
16,896.75
Less:
Depreciation 4,929.44
3,810.31
Net
Block 16,866.14
13,086.44
Capital
Work-in-Progress 6,684.27
9,242.06
Total 23,550.41
22,328.50
Investments 1,768.35 1,250.11
Current
Assets, Loans and Advances
Inventories 2,585.77
2,051.42
Sundry
Debtors 563.25 398.14
Cash
and Bank Balances 287.11 419.96
Loans
and Advances 2,123.39
1,744.88
Other
Current Assets –
17.24
Total 5,559.52
4,631.64
Less:
Current Liabilities
and
Provisions:
Liabilities 7,357.67
7,476.28
Provisions 264.22 80.93
Total 7,621.89
7,557.21
Net
Current Assets (2,062.37)
(2,925.57)
Total: 23,256.39
20,653.04
STAND-ALONE
PROFIT AND LOSS ACCOUNT
31 March
2010 31 March 2009
( Rupees
in crores)
INCOME:
Domestic
Turnover 16,460.61
10,680.50
Export
Turnover 2,935.82
4,450.21
Sale
of Carbon Credits 60.21 48.58
Total 19,456.64
15,179.29
Less:
Excise duty 1,254.16
1,178.04
Net
Turnover 18,202.48
14,001.25
Other
Income 532.84 259.56
Total
income 18,735.32
14,260.81
EXPENDITURE:
Materials 10,460.68
8,450.10
Employees
Remuneration and Benefits 365.20 288.75
Manufacturing
and Other Expenses 3,103.70
2,429.29
Interest
and Finance Charges (net) 862.68 797.25
Depreciation 1,123.41
827.66
Total 15,915.67
12,793.05
Profit
before Taxation 2,819.65
1,467.76
Exceptional Items
Exchange Loss - 790.13
Profit before Taxation 2,819.65 677.63
Provision
for Taxation
(including
Wealth Tax) 796.91 219.13
Profit
after Taxation 2,022.74 458.50
Profit
brought forward
from
earlier years 3,883.15
3,505.86
Amount
available for Appropriation 5,905.89
3,964.36
Appropriations:
Transferred
from Debenture
Redemption
Reserve (125.00) 20.45
Transfer to Capital Redemption
reserve – (9.90)
Dividend
on Preference Shares (28.92)
(28.99)
Proposed Final Dividend
on Equity Shares (177.70) (18.71)
Corporate
Dividend Tax (34.31)
(8.11)
Transfer
to General Reserve (202.28)
(45.85)
Balance
carried to Balance Sheet 5,327.78
3,883.15
Financial Year ends 31 March.
LEGAL STATUS AND HISTORY
Date
Started : 25 May 2006
History : The
subject company was established in Georgia on 25 May 2006 and commenced production
in
June 2009.
C.R.
No. : 436/024 Sh.P.S. (Tax
Inspection of Rustavi)
ID
Code : 216425919
Authorised
Capital : US DLRS 24,000,000 (increased from US DLRS 14,000,000 in 2010)
Paid
up Capital : US DLRS 24,000,000 (increased from US DLRS 14,000,000 in 2010)
Shazguduli
Pasukhismbgeblobis Sazagadoeba (limited liability
company)
with the following shareholders :
1.
Georgian Steel Holding Group Ltd
51%
British Virgin Islands
2.
JSW Steel (Netherlands) B.V.
49%
Claude Debassilian Street 24
Amsterdam
The Netherlands
JSW
Steel (Netherlands) B.V.is a wholly owned subsidiary of :
JSW
Steel Ltd
5A,
Dr. G.Deshmukh Marg
Mumbai
400 026
Maharashtra
India
Tel:
(022) 235 13000
Fax:
(022) 235 26400
JSW is part of US $10 billion O.P.Jindal Group. It has grown to US$ 5
billion in little over a decade and has presence across various sectors –
Steel, Energy, Minerals, Port & Infrastructure, Cement, Aluminium and IT.
JSW Steel, the flagship company of the JSW Group, is today an integrated
steel manufacturer. JSW Steel is the largest private sector steel manufacturer
in terms of installed capacity.
ACTIVITIES
The
Company is involved in the following activities :
Manufacturers
of Thermo Mechanical
Treatment steel.
NACE
Code: 2410
Production capacity:
200,000 metric tons of liquid steel per year.
Imports
from Germany, UK and India.
Exports
to Armenia, Azerbaijan, Sri-Lanka, India and Iran.
Subject
has closed the $28-million debt financing for setting up a
steel
plant in Georgia. A JSW official said the European Bank for
Reconstruction
and Development (EBRD) and the State Bank of India
(SBI)
have financed the debt and the money has been disbursed.
The
JSW Steel stated that the financing has been finalised under a
dual
structure, with the first part of $14 million being provided by
EBRD
and the second part of an equal amount sanctioned by SBI. The
total
cost of the project is estimated to be $42 million and the
balance
$14 million will be raised through equity.
FACILITIES
The
Company has the following facilities :
Office
premises, a steel plant and storage facilities located at the heading address.
REGISTERED OFFICE
Davit
Gareji Street 36
Rustavi
SPECIAL NOTE
You
enquired on : Geosteel LLC. Please note that this name applies to
an
English translation of the subject's name. Subject's correct
registered
name is as per heading.
Interviewed:
Jaspal Singh (Chief Financial Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.33 |
|
UK Pound |
1 |
Rs.74.14 |
|
Euro |
1 |
Rs.65.78 |
RATING EXPLANATIONS
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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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.