MIRA
INFORM REPORT
|
Report Date : |
05.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
ARJUN STRIPS AND PIPES LIMITED |
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Registered
Office : |
No.19, 4th Cross, Khader Shariff Garden, Lalbagh Road,
Bangalore-560027, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
27.07.1994 |
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Com. Reg. No.: |
08-015984 |
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Capital Investment
/ Paid-up Capital : |
Rs. 11.096 millions |
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CIN No.: [Company Identification
No.] |
U25205KA1994PLC015984 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRA01143C |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer of Steel, Tubes and Pipes. |
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No. of Employees
: |
25 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 51000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 |
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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 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Anandan M |
|
Designation : |
Finance Head |
|
Contact No.: |
91-9845056519 |
|
Date : |
04.07.2011 |
LOCATIONS
|
Registered Office : |
No.19, 4th Cross, Khader Shariff Garden, Lalbagh Road,
Bangalore-560027, Karnataka, India |
|
Tel. No.: |
91-80-22292914 |
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Mobile No.: |
91-9845056519 (Mr. Anandan M) |
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Fax No.: |
91-80-28517394 |
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E-Mail : |
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Factory 1 : |
Unit No.8A and 8B
Hoskote Industrial Area, Hoskote, Bangalore, India |
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Location : |
Owned |
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|
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Factory 2 : |
No. 15, Bangalore
Co-operative Industrial Estate, Viginapura, Durwani Nagar, Bagalore, India |
|
Location : |
Rented |
DIRECTORS
AS ON 12.08.2010
|
Name : |
Mr. Ketan Gupta |
|
Designation : |
Managing Director |
|
Address : |
# 733, C.M.H. Road, Indiranagar, Bangalore-560038, Karnataka, India |
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Date of Birth/Age : |
04.03.1974 |
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Date of Appointment : |
14.03.2005 |
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DIN No : |
01880470 |
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Name : |
Ms. Nidhi Gupta |
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Designation : |
Director |
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Address : |
# 733, C.M.H. Road, Indiranagar, Bangalore-560038, Karnataka, India |
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Date of Birth/Age : |
11.07.1978 |
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Date of Appointment : |
26.06.2003 |
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DIN No : |
01880496 |
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Name : |
Mr. Surendra Kumar Goyal |
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Designation : |
Director |
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Address : |
#262, Bhoopa Road, Musafa Nagar-251001, Uttar Pradesh, India |
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Date of Birth/Age : |
15.05.1938 |
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Date of Appointment : |
10.10.2005 |
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DIN No : |
01567731 |
KEY EXECUTIVES
|
Name : |
Mr. Anandan M |
|
Designation : |
Finance Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 12.08.2010
|
Names of Shareholders |
No. of Shares |
|
Ketan Gupta |
219520 |
|
Kewal Gupta |
496500 |
|
Nidhi Gupta |
247100 |
|
Nisha Gupta |
66800 |
|
A Shahkar |
1000 |
|
Amandeep |
1000 |
|
Anand |
1000 |
|
Ashwani Sharma |
100 |
|
Deepak Bhatija |
1000 |
|
Execaids Private Limited, India |
10000 |
|
G Rahul |
1000 |
|
Gulshan Kumar |
5100 |
|
Harjeet Kaur |
2500 |
|
Jagdeep |
2000 |
|
James Mathews |
1000 |
|
Lalit Kumar Agarwal |
800 |
|
Mahaveer Chand |
1100 |
|
Manpreet Kaur |
23000 |
|
Monisha Sharma |
1500 |
|
Poornima K Poonja |
1000 |
AS ON 12.08.2010
|
Category |
Percentage |
|
Directors or relatives of Directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Steel, Tubes and Pipes. |
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Imports : |
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Products : |
·
Machine Parts |
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Countries : |
·
United Kingdom |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Plant (Single Shift) |
Tones |
-- |
7500 |
-- |
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GENERAL INFORMATION
|
Suppliers |
·
Aandinath Trading ·
Appro Lubes Private Limited ·
Do All Cutting ·
JSW Steel Limited ·
N R Steel ·
Shilpa Printers ·
Shekar Agencies ·
Sowmya Electricals ·
Silcon Steels Private Limited ·
J D Tubes ·
Ispat Transport Company ·
Kalarikal Agencies ·
Associates Marketing ·
K S Transports |
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Customers : |
·
Dealer and Distributors ·
Banashankri Pipes ·
Agro Steel ·
Arul and Company ·
H K Steels ·
Megh Steel Private Limited ·
N r Steels ·
Naveen Pipe Traders ·
Padav Trading Corporation ·
General Industries ·
CSK Tube Corporation ·
Eros Metal Works Private Limited ·
Ramson Veil Private Limited ·
Ramsons Garments ·
Rajvaibhav Enterprises |
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No. of Employees : |
25 (Approximately) |
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Bankers : |
·
Karnataka Bank Limited, Industrial Finance Branch,
Infantry Road, Banglore-560001, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K V Kumar and Company Chartered Accountant |
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Address : |
#64, D.V.G. Road, Basavanagudi, Banalore-560004, Karnataka, India |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity Shares |
Rs.10/- each |
Rs. 15.000 Millions |
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|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1109630 |
Equity Shares |
Rs.10/- each |
Rs. 11.096
Millions |
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|
|
|
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 |
11.096 |
11.096 |
11.096 |
|
|
2] Share Application Money |
0.150 |
0.150 |
0.150 |
|
|
3] Reserves & Surplus |
1.700 |
1.700 |
1.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12.946 |
12.946 |
12.946 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
27.286 |
28.940 |
20.098 |
|
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2] Unsecured Loans |
8.733 |
9.599 |
8.352 |
|
|
TOTAL BORROWING |
36.019 |
38.539 |
28.450 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
PROFIT AND LOSS ACCOUNT |
8.564 |
5.798 |
4.364 |
|
|
|
|
|
|
|
|
TOTAL |
57.529 |
57.283 |
45.760 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
19.060 |
18.712 |
16.479 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
25.079
|
24.025 |
31.032 |
|
|
Sundry Debtors |
17.538
|
9.188 |
18.678 |
|
|
Cash & Bank Balances |
0.355
|
0.344 |
0.218 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
12.675
|
10.944 |
9.486 |
|
Total
Current Assets |
55.647
|
44.501 |
59.414 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
16.711
|
5.571 |
29.478 |
|
|
Other Current Liabilities |
0.000
|
0.000 |
0.000 |
|
|
Provisions |
0.467
|
0.359 |
0.664 |
|
Total
Current Liabilities |
17.178
|
5.930 |
30.142 |
|
|
Net Current Assets |
38.469
|
38.571 |
29.272 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.009 |
|
|
|
|
|
|
|
|
TOTAL |
57.529 |
57.283 |
45.760 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
230.359 |
157.701 |
140.246 |
|
|
|
Other Income |
1.060 |
0.623 |
0.953 |
|
|
|
TOTAL (A) |
231.419 |
158.324 |
141.199 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
192.772 |
125.538 |
106.001 |
|
|
|
Excise Duty |
18.210 |
18.241 |
19.527 |
|
|
|
Expenses |
15.965 |
11.266 |
12.082 |
|
|
|
TOTAL (B) |
226.947 |
155.045 |
137.610 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4.472 |
3.279 |
3.589 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.532 |
0.565 |
1.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3.940 |
2.714 |
2.473 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1.147 |
1.073 |
0.618 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
2.793 |
1.641 |
1.855 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.86 |
9.14 |
-- |
|
|
Particulars |
|
|
31.03.2011 |
|
Sales Turnover (Approximately) |
|
|
280.000 |
|
|
|
|
|
The above information has been parted by Mr. Anandan M.
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.21
|
1.04 |
1.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.21
|
1.04 |
1.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.74
|
2.60 |
2.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.13 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.11
|
3.43 |
4.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.24
|
7.50 |
1.97 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT OUTLOOK
The company has achieved good turnovers and profits during the year as
expected in the previous year, in spite of rate fluctuation in the prices of
raw materials in the market.
The directors has taken calculated risk in achieving the good turnovers
and profits for the company. The directors are much hopeful to achieve good
profits for the company in the future coming years.
FORM 8
|
Corporate
identity number of the company |
U25205KA1994PLC015984 |
|
Name of the
company |
ARJUN STRIPS AND
PIPES LIMITED |
|
Address of the
registered office or of the principal place of business in |
No.19, 4th Cross, Khader Shariff Garden, Lalbagh Road, Bangalore-560027, Karnataka, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable
property Book debts Movable property
(not being pledge) |
|
Particular of
charge holder |
Karnataka Bank Limited, Industrial Finance Branch, Infantry Road, Banglore-560001, Karnataka, India |
|
Nature of
instrument creating charge |
Hypothecation
Agreement |
|
Date of
instrument Creating the charge |
04.11.2010 |
|
Amount secured by
the charge |
Rs. 41.500
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Interest @ 12.50%
p.a. (OD Rs. 25.000
million / BPC – Rs. 15.000 millions) Terms of repayment Repayable on
demand Margin Margin 25% on
stock and book debts for OD and for BG 15% cash margin Extent and operation of the charge 100% Till the
closure of the loan |
|
Short particulars
of the property charged (Including location of the property) |
Hypothecation of all
the present and future Stock in trade of raw materials, Semi finished goods
and finished goods and plant and machineries and other assets are stored at
No.8A and 8B Hoskote Industrial Area, Hoskote. No. 15, Bangalore
Co-operative Industrial Estate, Viginapura and No.73, B Narayanpura,
Bangalore and all the book debts receivables, claim etc. and extn of
Equitable mortgage of lease hold
rights of Industrial land and factory building at No. 8A and 8B Hoskote
Industrial Area, Hoskote belonging to the Company. |
|
Charge
identification number of the charge to be modified |
90200067 |
|
Particulars of
the present modification |
Renewal of OD
Limit Rs. 25.000 million / BPC Limited of Rs. 1.500 millions / BG Limit of Rs.
15.000 millions SSIDPN of Rs. 5.000 millions stands closed. Total Limit
Reduced from Rs. 46.500 millions to Rs. 41.500 millions (OD Rs. 25.000
millions/ BPC Rs. 1.500 millions / BG Rs. 15.000 millions) Extn of Equitable
Mortgage of a Lease hold rights of Industrial Land and Building at 8A and 8B
Hoskote Industrial Area, Hoskote. All other terms, conditions and Securities
continues for the Reduced limit of Rs. 41.500 millions |
FIXED ASSETS
·
Land
·
Factory Building
·
Plant and Machinery
·
Electrical Installation
·
Furniture and Fixtures
·
T. V. S. Sunny
·
Scooter
·
Mobile Telephone
·
Air Conditioner
·
Tempo
·
Santro
·
Generator Set
·
Computer
·
Motor Car
·
Office Equipment
·
Motor Car, Skoda
TRADE REERENCE:
·
Tube distributors Agency,
Kochi
·
Padav Trading Corporation,
Mangalore
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.44.45 |
|
|
1 |
Rs.71.52 |
|
Euro |
1 |
Rs.64.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
33 |
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.