MIRA INFORM REPORT

 

 

Report Date :

07.07.2011

 

IDENTIFICATION DETAILS

 

Name :

BAJAJ STEEL INDUSTRIES LIMITED

 

 

Registered Office :

Imambada Road, Nagpur – 440018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

14.02.1961

 

 

Com. Reg. No.:

011936

 

 

Capital Investment/ Paid-up Capital:

Rs.22.000 Millions

 

 

CIN No.:

[Company Identification No.]

L27100MH1961PLC011936

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NGPB00112A / NGPB00111G

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Machinery for Cotton Ginning and Pressing and Pressing used for preparing Textile Fabrics

 

 

No. of Employees:

1000 (In office 80 + In factory 920)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1852756

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INFORMATION PARTED BY

 

Name :

Mr. Manish Sharma 

Designation :

Accounts Manager

 

LOCATIONS

 

Registered Office :

Imambada Road, Nagpur – 440018, Maharashtra, India

Tel. No.:

91-712-2720071 / 80

Mobile No.:

91-9890860170 [Mr. Chetan Kaushal]

Fax No.:

91-712-2728050 / 2723068

E-Mail :

Kaushal.chetan@bajajngp.com

cs@bajajngp.com

bsi@bajajngp.com  

mks@bajajngp.com 

Website :

http://www.bajajngp.com

Area :

Owned

 

 

Factory 1 :

C-108, MIDC, Hingna Industrial Area, Nagpur  - 440028

 

 

Factory 2 :

D-5/2, MIDC, Hingna Industrial Area, Nagpur – 440028

 

 

Factory 3 :

[Under Construction] G  108, Butibori, MIDC Industrial, Nagpur - 441122

 

 

Regional Office :

Godown No. 72, Sahajanand Estate, Co-operative Housing Society, Near Lalmulji Trasport, Sarkhej. Ahmedabad (G.S), Pin-332210

 

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

Mr. Hargovind Bajaj

Designation :

Chairman

 

 

Name :

Mr. Rohit Bajaj

Designation :

Managing Director

 

 

Name :

Mr. Sunil Bajaj

Designation :

Director

 

 

Name :

Mr. Vinodkumar Bajaj

Designation :

Director

 

 

Name :

Madam Ramadevi Ruia

Designation :

Director

 

 

Name :

Mr. Mohan Agarwal

Designation :

Director

 

 

Name :

Mr. Rajkumar Lohia

Designation :

Director

 

 

Name :

Mr. Deepak Batra

Designation :

Director

 

 

Name :

Mr. Ashish Bajaj

Designation :

Director

 

 

Name :

Mr. Lalchand Mutha

Designation :

Director

 

 

Name :

Mr. Kamal Kishore Kela

Designation :

Director

 

 

Name :

Mr. Alok Goenka

Designation :

Director

 

 

Name :

Mr. Rajiv Ranka

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Jadish Shirke

Designation :

Company Secretary

 

 

Name :

Mr. Mr. Manoj Dhoot

Designation :

Chief Financial Executive

 

 

Name :

Mr. Manish Sharma 

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

651,650

27.73

Bodies Corporate

209,000

8.89

Sub Total

860,650

36.62

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

860,650

36.62

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,900

0.12

Financial Institutions / Banks

100

-

Foreign Institutional Investors

23,986

1.02

Sub Total

26,986

1.15

(2) Non-Institutions

 

 

Bodies Corporate

569,564

24.24

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

615,846

26.21

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

57,400

2.44

Any Others (Specify)

219,554

9.34

Clearing Members

130,391

5.55

Non Resident Indians

89,163

3.79

Sub Total

1,462,364

62.23

Total Public shareholding (B)

1,489,350

63.38

Total (A)+(B)

2,350,000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

2,350,000

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Machinery for Cotton Ginning and Pressing and Pressing used for preparing Textile Fabrics

 

 

Products :
  • Ginning and Pressing Machinery
  • Baling Presses for Other Applications
  • Tractor Attachments for Cotton Ginning Industry
  • Delinting and Decorting Machinery
  • Components and Machined Parts
  • Electrical Panels and Accessories
  • Structural Fabrication
  • Mechanical Conveyors and Elevators
  • Humidification Systems
  • Dust / Waste Handling Systems
  • Engineering and Construction Projects

 

 

Exports :

 

Products :

Cotton Ginning and Pressing

Countries :
  • Tanzania
  • Zimbabwe

 

 

Imports :

 

Products :

Raw Materials

Countries :
  • Germany
  • Taiwan

 

 

Terms :

 

Selling :

L/C, Cash, Credit 

 

 

Purchasing :

L/C, Cash, Credit 

 

 

GENERAL INFORMATION

 

Customers :

Corporates 

 

 

Employees :

1000 (In office 80 + In factory 920)

 

 

Bankers :
  • Karur Vysya Bank, Branch Central Avenue, Nagpur
  • Axis bank, Branch Civil Lines, Nagpur
  • State Bank of India, Branch Kingsway Nagpur

 

 

Facilities :

CC Rs. 100.000 Millions

 

Secured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Term Loans from :

SlCOM Limited

Secured by first charge on the fixed assets and entire movable assets present and future, situated at Plot No. C- IOB.MIDC, Hingna, Nagpur and floating charge on all other assets of the Company and by personal guarantee of the Managing and Executive Director of the company

 

Working Capital Loans from :

a) State Bank of India

Secured by pari passu first charge on Stocks and Book debts and second charge on the fixed assets  of the company situated at Sausar and lmambada Road, Nagpur and by personal guarantee of the Managing, Executive and two other Directors and C.E.0, of Superpack Division of the company

 

b) Karur Vysya Bank Limited

Secured by first charges on current assets of steel Division, collateral security by way of extension of First and exclusive charge on the entire Fixed assets, present and future situated at plot No. G-108, Butibori, MIDC. Nagpur (Collateral Secunty pending documentation and Registration and by personal guarantee of the Managing and Executive Directors of the company)

 

Overdraft from :

a) HDFC Bank Limited

b) Wardhanarn Co-operative Bank Limited

c) AXIS Bank Limited

d) Karur Vysya Bank Limited

- Secured by pledge of certain Fixed Deposit Receipts

 

Vehicle Loans from :

a) IClCl Bank Limited

b) HDFC Bank Limited

C) AXIS Bank Limited - Secured by hypothecation of vehicles financed by them

 

75.000

 

 

 

 

 

 

 

 

 

 

 

61.948

 

 

 

 

 

 

 

 

 

 

46.271

 

 

 

 

 

 

 

 

 

 

 

 

 

17.124

15.222

 

3.014

9.074

 

 

 

 

0.077

8.453

1.720

 

 

20.800

 

 

 

 

 

 

 

 

 

 

 

42.131

 

 

 

 

 

 

 

 

 

 

0.000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.686

9.020

 

2.219

0.000

 

 

 

 

0.955

3.990

0.000

 

Total

237.906

87.985

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Fixed Deposits

From Bodies Corporate

10.867

211.392

19.158

200.167

Total

222.258

219.324

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. Chhawchharia and Company

Chartered Accountants

 

 

Associates/Subsidiaries :

Super Pack, Nagpur

Activities : They are into cotton Ginning and Pressing

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Shares

Rs.10/- each

Rs.150.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2200000

Equity Shares

Rs.10/- each

Rs.22.000 Millions

 

 

 

 

 

(The above Includes5 10,000 Equity Shares Issued as fully paid Bonus snares by capitalisation of General Reserve)

 

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

22.000

22.000

22.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

441.189

343.877

197.900

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

463.189

365.877

219.900

LOAN FUNDS

 

 

 

1] Secured Loans

237.906

87.985

140.000

2] Unsecured Loans

222.258

219.324

204.300

TOTAL BORROWING

460.164

307.309

344.300

DEFERRED TAX LIABILITIES

4.060

8.837

0.000

 

 

 

 

TOTAL

927.413

682.023

564.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

317.239

305.525

144.700

Capital work-in-progress

103.554

45.954

92.400

 
 
 

 

INVESTMENT

2.783

16.463

16.500

DEFERREX TAX ASSETS

0.000

0.000

0.600

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
458.024
273.886

374.700

 

Sundry Debtors
155.573
160.191

180.400

 

Cash & Bank Balances
233.755
161.040

143.900

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
100.512
47.441

60.600

Total Current Assets
947.864
642.558

759.600

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors 

277.193
145.072

421.900

 

Other Current Liabilities
147.019
152.116

 

 

Provisions
19.815
31.289

27.700

Total Current Liabilities
444.027
328.477

449.600

Net Current Assets
503.837
314.081

310.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

927.413

682.023

564.200

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2245.395

2558.863

1873.200

 

 

Processing Charges

0.375

1.315

0.000

 

 

Other Income

36.471

56.434

22.800

 

 

TOTAL                                     (A)

2282.241

2616.612

1896.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Materials

1315.542

1518.714

1360.200

 

 

Purchases 

208.415

19.958

13.800

 

 

Power and Fuel 

11.733

10.861

78.100

 

 

Stock Adjustments

(128.973)

83.319

(38.400)

 

 

Other Manufacturing Expenses

141.423

130.352

180.700

 

 

Personals 

158.795

125.201

0.000

 

 

Excise Duty 

136.992

269.459

37.300

 

 

Cost of Borrowing 

55.999

44.729

0.000

 

 

Other Expenses

178.349

137.476

93.600

 

 

TOTAL                                     (B)

2078.275

2340.069

1725.300

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

203.966

276.543

170.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

0.000

40.700

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

203.966

276.552

130.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

51.392

43.138

21.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

152.574

233.405

108.200

 

 

 

 

 

Less

TAX                                                                  (I)

50.131

85.255

39.500

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

102.443

151.148

68.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

18.587

12.586

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Provision for Proposed dividend

4.400

40.400

NA

 

 

Corporate Dividend Tax

0.730

0.747

NA

 

 

Transfer to General Reserve

80.000

140.000

NA

 

BALANCE CARRIED TO THE B/S

35.899

18.587

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

46.56

68.70

--

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

 

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 Sales Turnover

295.580

565.920

726.210

456.110

 Total Expenditure

290.590

513.890

582.330

432.640

 PBIDT (Excl OI)

4.990

52.030

43.880

23.470

 Other Income

3.660

2.940

3.430

5.750

 Operating Profit

6.650

54.970

47.310

29.220

 Interest

15.360

12.350

14.790

16.590

 Exceptional Items

0.000

0.000

0.000

0.000

 PBDT

(6.710)

42.620

32.520

12.630

 Depreciation

12.500

13.110

15.450

13.700

 Profit Before Tax

(19.220)

29.500

17.060

[1.070]

 Tax

0.000

3.400

5.800

0.000

 Reported PAT

(19.220)

26.100

11.260

[1.070]

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

(19.220)

26.100

11.260

[1.070]

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.49

5.78

3.62

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
6.79

9.12

5.78

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
12.06

24.62

11.96

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.33

0.64

0.49

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.95
1.74

3.61

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.13
1.96

1.69

 

 

LOCAL AGENCY FURTHER INFORMATION

 

WORKING B FUTURE PROSPECTS:

 

The Company's performance was effected due to a very long dry spell in the country. During the year under review, the turnover of the Company has been gradually decreased from Rs.2616.600 Millions in the year 2008-09 t Rs.2282.200 Millions in the year 2009-10 representing a fall of 12.78% The profitability of the Company has also been affected as the profit of the Company has decreased from Rs.151.100 Millions for the year 2008-09 to Rs.102.400 Millions in 2009-10. The Board of Directors are trying their best to improve the performance of the Company. The working of both the division of the Company is given below:

 

STEEL DIVISION:

 

The steel division is concentrating in its core business of manufacturing cotton ginning  and Pressing machines which has a great potential to expand, considering the increasing cotton cultivation in India and abroad The company is also exploring addition Newer machines and developing new technologies it, coming days.

 

PLASTIC DIVISION (SUPERPACK):

 

The Sale I Disposal of Super pack Division has been approved by the Shareholders of the company on 10th July, 2009 and authorized the Board of Directors to dispose off the Division at such price as it may deem fit. Pursuant to the approval, the sale / disposal of the Super pack Division is under process and expected to complete during the current financial year.

 

PREFRENTIAL ALLOTMENT:

 

The Company is in the process of expanding its business activities by way of expansion plans. In view of the need of Long term working capital to cater the need of the consistent expansion plans undertaken by the Company, the company has issued and allotted 30000.000 Millions Share Warrants on 71st May, 2070 to meet the funds requirement. The Company has passed the special resolution Under Section 81 ( I A ) of the Companies Act, 1956 and pursuant to SEBl Regulations vide Extra-ordinary general Meeting held on 30rt'April, 201 0. The Company has received 25% application money towards share warrants amounting to Rs.19.800 millions. The aforesaid share warrants will be convertible into equity share on exercise of conversion option by the allottees within the period of 18 months from the date of allotment and balance payment thereof.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Future Trend and Opportunities:

 

The technological envelopments on Ginning and Pressing Machinery has acted as an driving force in structural shin from old outdated to more productive advance machinery. By and large the good pace of technology development and dissemination has been witnessed in India in the last 10 years. The continuous thrust of Government, research institutes like Central Institute for Research on Cotton Technology, organizations like Cotton association of lndia and machinery manufactures towards technological developments will prove a driving force for the further improvement of cotton ginning and pressing machinery future. The growth rate for utilization of cotton is about 10-15%, at present and among all the natural fibers cotton constitutes about 80% of the total consumption of natural fibers in the world. There are various possibilities to increase the use of cotton for diversified product manufacture, thus the requirement of modernization machinery is going to increase which will improve the working of the company in the core business. Further, the company has planned to take up the other areas of cotton ginning and pressing factories such as building structures, electrical panels, fire diversion, humidification systems and advanced material handling systems which will result in substantially higher value for orders as compared to earlier orders only for core machinery.

 

The Company has also started manufacturing Delinting and Decorticating Plant Machineries as well as 0th !r items for the same on turnkey basis under technical collaboration with M/s. Continental Eagle Corporation USA, this will also result in additional business.

 

INDUSTRY STRL ZTURE AND DEVELOPMENT:

 

Primarily, the Company is consisting two Divisions viz Steel Division and Super pack (Plastic) Division. Steel Division of the Company is having distinguished manufacturing facilities in lndia for Cotton Ginning and Pressing Plants located at lmarnbada Road and C-108, Hingana Industrial Area, Hingana, Nagpur. However, during the year 2009-10, the Company has also started export of Cotton Bales through its Cotton Division.

 

The Super pack Division of the Company is for manufacturing of Master Batches. However, the Super pack Division, pursuant to approval of the Shareholders dated 70.07.2009, is under process of dispose off and expected to complete the process of disposing the same during the current financial Year. The Major thrust of the Management is on the operation of Steel Division of the Company which is its core business.

 

The strong vision and dedication of the promoters has put the Company as one of the biggest manufactures of Cotton Ginning and Pressing Machineries with distinction of having only company in the world with capabilities for manufacturing Cotton Ginning Machines for all the three major cotton ginning technologies being used in the world and enjoying more than two - thirds of the market share in India while rapidly expanding wings in the other cotton growing countries of the world.

 

The company has entered technical collaborations to manufacture the Cotton Processing Machines with Following companies/ institutes:

 

Sr. No.

Name of Machines

Name of Collaborators

 

Continental Products

Continental Eagle Corporation. USA

 

Ginning and Pressing Machines

Central Institute for Research on Cotton Technology

(CIRCOT), ICAR, Government of India Mumbai

 

Humidification System

Samuel Jackson lnc. of USA

 

 

These collaborations have enabled the company to expand its goodwill and to tap new areas of business.

 

DEVELOPMENT AND EXPANSION:

 

The Company is having distinguished manufacturing facilities in India for Cotton Ginning and Pressing Plants I Machineries. The facilities are equipped with state of art machines with latest technologies and managed by team of engineers. Moreover, the Company is in the process of expanding its business activities by way of expansion plans. The Company has acquired land admeasuring 38757.50 sq. meters at Plot No.G-108 at Beriberi Industrial Area, Nagpur, where the Company is planning to manufacture new machineries like Cotton Seed Delinting Machines Decorticating Machines, Oil Mill Machineries, steel structure buildings and Electrical Intelligent Panels for increased volume.

 

EXPORT POTENTIAL OF GINNING MACHINES:

 

Like Indian economy, agriculture always remains the base of most of the developing countries. The company

has silccessfully exported its cotton processing machines to Peru, Tajikistan, Srilanka, Myanmar. Bangladesh, Egypt. Pakistan, Madagascar, Nigeria, Zimbabwe, Zambia, Uganda, Tanzania etc.

 

The demand for spare parts for ginning machines and allied equipments are increasing manifold. In order to meet this demand, the company has opened a depot at Ahmedabad and planning to open more depots in other cotton growing areas in India.

 

SEGMENT WlSE - PRODUCT WlSE PERFORMANCE:

 

The Steel Division of the Company consists of manufacturing of Cotton Ginning and Pressing machineries and its spare parts and accessories.

 

During the year, the Steel Division has achieved a Turnover of Rs.1378.500 Millions and Super pack Division has achieved a turnover of Rs.676.000 Millions. The turnover of Cotton Division in domestic sale and export of Cotton Bales during the year is Rs.226.500 Millions. The Total Turnover of the Company during the year 2009-10 is Rs.2245.300 Millions.

 

Trade Reference

 

  • Amit Cotton 

 

 

AS PER WEBSITE

 

History:

 

Subject is a professionally managed organization is engaged in offering a technically advanced solution to the cotton Ginning and Pressing Industry. Backed by well-furnished CNC Turning Centers from Taiwan, CNC Planomillers, Drilling and Assembly Centers, they have been designing high tech Cotton Processing Machine for higher as well as accurate production. The more than 100 years of experience assists them in developing machines to gin and press cotton at lowest per unit cost at optimum capital investment.


Using advanced manufacturing practices, they design ginning and pressing machines under Technical Collaboration from Central Institute for Research on Cotton Technology (CIRCOT ICAR), the Pioneer Technical Body of Government of India in respect to Cotton Ginning and Pressing Technology. The machines give highest production at lowest cost with best fiber parameters and lowest electrical power consumption per unit of production in trouble free manner. Today, they have carved a niche as one of the key Decorticator Manufacturers and Auto Feeder Machine Suppliers based in India.


Adhering to ethical business policies, they have become an approved supplier, under Technology Mission on Cotton and Technology up gradation fund for cotton ginning and pressing plant machinery by Ministry of Textiles, Government of India. On the grounds of the right wok ethics, they have spread the business regime to all over India, Bangladesh, Egypt, Kenya, Madagascar, Malaysia, Myanmar, Nigeria, Pakistan, Peru, South Africa, Tajikistan, Tanzania, Uganda, Zambia, Zimbabwe and many other countries. Last but not the least, they always endeavor to maintain a long lasting relationship of trust with the esteemed clients.

 

Subject is a significant part of Bajaj Group of Industries, Nagpur was established in the year 1961, as a manufacturer and exporter of cotton pressing and ginning machines. Under the guidance of Mr. M. K. Sharma, the President of the organization, they have set a strong foothold in the global market. His experience and knowledge has assisted them in achieving specialization in the manufacturing of Ginning and Pressing Equipment. Today, they are counted among the Decorticating Machines Suppliers and Hull Beater Exporters in India.


The Achievements

 

  • "Largest and modern Cotton Ginning and Pressing Machinery Manufacturer in India " awarded by Hon'ble Union Minister of Textiles, Government of India, Shri. Shankar Sighji Waghela in the year 2008 and SICOM awarded the company best performer award
  • Bajaj Steel industries Limited has been awarded "Late Lalit Doshi memorial award in Recognition of their outstanding Performance".
  • Bajaj Steel and Continental Eagle, USA Sign Manufacturing Agreement
  • Technical Collaboration with Central Institute for Research on Cotton (CIRCOT) ICAR, Mumbai, Government of India
  • Process of recertification of ISO/TS 16949 is in process due to relocation of the plant


R and D


They have a full-fledged R and D set up with a dedicated, qualified and experienced research and development team. The R and D unit works on modernization of Cotton Ginning and Pressing Equipments to improve the quality of the machines.

 

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.44.38

UK Pound

1

Rs.71.24

Euro

1

Rs.64.16

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

51

 

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

-

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.