MIRA
INFORM REPORT
|
Report Date : |
19.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
HST STEELS PRIVATE LIMITED |
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Registered
Office : |
5-4-42 TO 50, Kanayalal Estate, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
21.03.1995 |
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Com. Reg. No.: |
01-19752 |
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CIN No.: [Company Identification
No.] |
U27109AP1995PTC019752` |
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|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
HYDH00539A |
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|
|
Legal Form : |
Private limited liability company. |
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Line of Business
: |
Stockist and Dealers of Iron and Steel. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1237996 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
5-4-42 TO 50, Kanayalal Estate, |
|
Tel. No.: |
91-40-27544242/255382121 |
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Fax No.: |
91-40-27542524 |
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E-Mail : |
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Website : |
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Office and Sales Depot : |
Plot No.40/A, Industrial Development Area (IDA), Balanagar,
Hyderabad-500 037, Andhra Pradesh, |
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Tel. No.: |
91-40-23720174/23720274 |
|
Fax No.: |
91-40-23720175 |
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E-Mail : |
DIRECTORS
AS ON 25.09.2010
|
Name : |
Mr. Arun Kumar Gagar |
|
Designation : |
Director |
|
Address : |
5-4-42 TO 50, Kanayalal Estate, |
|
Date of Birth/Age : |
10.03.1965 |
|
Date of Appointment : |
21.03.1995 |
|
|
|
|
Name : |
Mr. Anil Kumar Gagar |
|
Designation : |
Director |
|
Address : |
5-4-42 TO 50, Kanayalal Estate, |
|
Date of Birth/Age : |
03.09.1966 |
|
Date of Appointment : |
21.03.1995 |
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|
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|
Name : |
Mrs. Geeta Devi Gagar |
|
Designation : |
Director |
|
Address : |
5-4-42 TO 50, Kanayalal Estate, |
|
Date of Birth/Age : |
21.09.1946 |
|
Date of Appointment : |
13.10.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 25.09.2010
|
Names of Shareholders |
|
No.
of Shares |
|
Arun Kumar Gaggar |
|
275710 |
|
Anil Kumar Gaggar |
|
405100 |
|
Sunita Devi Gaggar |
|
236000 |
|
Anju Gaggar |
|
241250 |
|
Geeta Devi Gaggar |
|
90010 |
|
Raj Kumar Gaggar |
|
1930 |
|
Cyclo Investments Private limited, |
|
22500 |
|
Sympathy Merchentile Private limited, |
|
160000 |
|
Anil Gaggar HUF |
|
150000 |
|
Arun Gaggar HUF |
|
110000 |
|
Total
|
|
1692500 |
AS ON 25.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
11.23 |
|
Directors
or relatives of directors |
|
88.77 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Stockist and Dealers of Iron and Steel. |
GENERAL INFORMATION
|
Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Arvind Jain and Associates Chartered Accountants |
|
Address : |
25 to 29, Secound Floor, Hyderi Complex, Pan Bazar, Rani Gunj,
Secunderabad- 500 003, Andhra Pradesh, India |
CAPITAL STRUCTURE
As on 29.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1700000 |
Equity shares |
Rs.100/- Each |
Rs.170.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1692500 |
Equity shares |
Rs.100/- Each |
Rs.169.250
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
169.250 |
99.250 |
99.250 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
140.249 |
115.726 |
94.976 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
309.499 |
214.976 |
194.226 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
606.662 |
600.645 |
631.065 |
|
|
2] Unsecured Loans |
220.378 |
202.561 |
276.781 |
|
|
TOTAL BORROWING |
827.040 |
803.206 |
907.846 |
|
|
DEFERRED TAX LIABILITIES |
1.024 |
0.734 |
0.390 |
|
|
|
|
|
|
|
|
TOTAL |
1137.563 |
1018.916 |
1102.462 |
|
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|
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|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
75.135 |
51.660 |
31.372 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.000 |
2.000 |
2.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
740.267
|
525.746
|
457.176 |
|
|
Sundry Debtors |
393.899
|
546.892
|
672.694 |
|
|
Cash & Bank Balances |
1.410
|
1.013
|
4.135 |
|
|
Other Current Assets |
0.181
|
0.474
|
0.245 |
|
|
Loans & Advances |
29.369
|
16.938
|
42.081 |
|
Total
Current Assets |
1165.126
|
1091.063
|
1176.331 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
91.514
|
109.973
|
96.196 |
|
|
Other Current Liabilities |
0.000 |
0.000 |
0.000 |
|
|
Provisions |
12.184
|
15.834
|
11.045 |
|
Total
Current Liabilities |
103.698
|
125.807
|
107.241 |
|
|
Net Current Assets |
1061.428
|
965.256
|
1069.090 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1137.563 |
1018.916 |
1102.462 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6236.369 |
6089.273 |
5680.938 |
|
|
|
Direct Income |
5.712 |
11.373 |
4.250 |
|
|
|
Other Income |
1.411 |
0.526 |
0.000 |
|
|
|
TOTAL (A) |
6243.492 |
6101.172 |
5685.188 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
6081.626 |
5968.740 |
5591.375 |
|
|
|
Personal Expense |
19.428 |
14.277 |
6.098 |
|
|
|
Administrative Expenses |
12.428 |
11.079 |
11.374 |
|
|
|
Commission paid |
1.706 |
1.859 |
1.696 |
|
|
|
Cash Theft |
0.460 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
6115.648 |
5995.955 |
5610.543 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
127.844 |
105.217 |
74.645 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
81.133 |
63.383 |
47.324 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
46.711 |
41.834 |
27.321 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9.760 |
9.711 |
4.825 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
36.951 |
32.123 |
22.496 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
12.428 |
11.373 |
11.421 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
24.523 |
20.750 |
11.075 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
63.476 |
42.726 |
21.517 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
87.999 |
63.476 |
32.592 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.49 |
20.91 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.39
|
0.53
|
0.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.59
|
0.53
|
0.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.98
|
2.81
|
1.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.15
|
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.01
|
4.32
|
5.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
11.23
|
8.67
|
10.97 |
LOCAL AGENCY FURTHER INFORMATION
Financial Results:
The Profit and loss account of the company shows a net profit amounting
to Rs.32.123 millions.
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge identification
number of the modified |
90262536 |
|
Corporate
identity number of the company |
U27109AP1995PTC019752 |
|
Name of the
company |
HST STEELS
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
5-4-42 TO 50, Kanayalal Estate, |
|
Type of charge |
|
|
Particular of
charge holder |
State Bank of India,
MCLAU, 3-6-281/A/1, Hyderguda Main Road, Hyderabad-500 029, Andhra Pradesh,
India |
|
Nature of
description of the instrument creating or modifying the charge |
Letter for Grant
of Individual Limits Within Overall Limits |
|
Date of
instrument Creating the charge |
31.03.2009 |
|
Amount secured by
the charge |
Rs.600.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 1.75% over SBAR Terms of
Repayment Present sanction is
valid for 12 months. Margin Raw material -
25% Receivables - 40%
(Cover period 90 days) Extent and
Operation of the charge Charge operates
as security for entire limits of Rs.600 millions availed by the company Primary - Charge on
all current assets of the company Colleteral -
Charge on fixed assets of the company |
|
Short particulars
of the property charged |
Primary Security
- Hypothecation of all chargeable Current Assets of the Company Collateral
Security (1) 1st Charge on
all Fixed Assets of the Company. (2) Other
properties |
|
Date of latest
modification prior to the present modification |
27.10.2007 |
|
Particulars of
the present modification |
The Limits have
been modified as follows: 1. Cash
Credit - Existing Rs. 500.000
millions, Enhanced Limits Rs.600.000 millions 2. Books Debts (as a sublimit of OCC) - Existing Rs.(200.00) millions, Enhanced
Limits Rs.(300.000) millions 3. Inland LC and
Bill Discounting Limits - Existing Rs.300 millions Revised Limits Nil Total Limits
Rs.600.000 millions |
|
Corporate
identity number of the company |
U27109AP1995PTC019752 |
|
Name of the
company |
HST STEELS
PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in |
5-4-42 TO 50, Kanayalal Estate, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book Debts Movable Property |
|
Particular of
charge holder |
STATE BANK OF |
|
Nature of
instrument creating charge |
Supplemental
Agreement of Loan for Increase in the Overall Limit Supplemental
Agreement of Hypothecation of Goods and Assets for Increase in the overall
Limit |
|
Date of
instrument Creating the charge |
13/12/2010 |
|
Amount secured by
the charge |
Rs.996.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest C.C 4% above Base
Rate (Present Effective rate 11.60% p.a with monthly rests) SLC 1% above CC
applicable rate Terms of
Repayment on Demand, valid
for one year Margin FG 25% LC (90 days
usance) 10% Book Debts-Cover
period 60 days coverage 40% Extent and Operation
of the charge Charge Operates
entire Security for repayment of entire limits of of Rs. 996.000 Millions
along with Interest and charges accrued thereon |
|
Short particulars
of the property charged |
For Working
Capital: CC (Hyp), LC, SLC and CEL: Primary Security: Hypothecation charge on
all current assets of the Company. Collateral: i) Hypothecation
charge on the fixed assets of the company(excluding hire purchase loans). ii) EM 16 properties belonging to various
individuals and property belonging to Uttam Dhatu and Ispat Private Limited ii) Lien on cash
deposit of Rs.0.70 crores. iv) Additional
Collaterals (Rs.14.000 Millions) now offered to make good shortfall in
realisable value of the properties offered at the tome of last renewal v) Pledge of
4,52,421 shares (works out to 30% of promoters shares) standing in the name
of promoters of Rs.100/- each. |
|
Date of
instrument modifying the charge |
31/03/2009 |
|
Particulars of
the present modification |
Particulars Existing Change (Rs. in
Millions) CC(Hyp) 60.00 800.000 CC(Book
Debts) (30.00) (300.000) L.C 10.00 140.000 SLC ---- 50.000 CEL ----- 6.000 Total 70.00 996.000 |
Fixed Assets:
·
Air Conditioner
·
Car
·
Cellular Phone
·
Commercial Vehicle
·
Computer
·
Cycle
·
Generator
·
Xerox Machine
·
Television
·
Water Cooler
·
Plant and Machinery
·
Pager
·
Welding Machine
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.18 |
|
|
1 |
Rs.73.04 |
|
Euro |
1 |
Rs.61.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.