MIRA
INFORM REPORT
|
Report Date : |
14.03.2011 |
IDENTIFICATION DETAILS
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Name : |
NEZONE TUBES LIMITED |
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Registered Office : |
Ashoka House, 3A |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
04.08.1981 |
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Com. Reg. No.: |
21-98963 |
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CIN No.: [Company
Identification No.] |
U29120WB1981PLC098963 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALN00243F |
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PAN No.: [Permanent
Account No.] |
AABCN2550L |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Electric Resistance Welded Steel tubes, H.R. Pipes,
H.R. Tubes, Black ERW Pipes, Galvanized Pipes, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (48) |
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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 1200000 |
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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 a well 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 |
LOCATIONS
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Registered Office : |
Ashoka House, 3A |
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Tel. No.: |
91-33-22317280/82/83/ 85 |
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Fax No.: |
91-33-22317286 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Branch Office : |
D. D. Tower, 5th Floor, Christain Basti, |
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Tel. No.: |
91-361-254 1434/1252/0155 |
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Fax No.: |
91-361-254 4156 |
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E-Mail : |
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Location : |
Owned |
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Factory : |
Delhi Road Village-Chakundi, |
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Tel. No.: |
91-33-2659 6282/6283 |
DIRECTORS
As on 29.09.2010
|
Name : |
Mr. Radhey Shyam Agarwala |
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Designation : |
Director |
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Address : |
Mahavir Stores, |
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Date of Birth/Age : |
10.03.1937 |
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Date of Appointment : |
22.07.1982 |
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Name : |
Mr. Madanlal Beswal |
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Designation : |
Managing Director |
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Address : |
6N, |
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Date of Birth/Age : |
01.05.1940 |
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Date of Appointment : |
04.08.1981 |
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Name : |
Mr. Subhash Chandra Agarwala |
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Designation : |
Director |
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Address : |
Near Rajasthan Chhatrawas, Near Railway Gate No.5. |
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Date of Birth/Age : |
22.03.1950 |
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Date of Appointment : |
01.02.1984 |
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Name : |
Mr. Sanwar Mal Agarwala |
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Designation : |
Director |
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Address : |
Budhia Bhawan, 2nd Floor, |
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Date of Birth/Age : |
05.02.1949 |
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Date of Appointment : |
01.02.1984 |
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Name : |
Mr. Manoj Beswal |
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Designation : |
Director |
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Address : |
6N, |
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Date of Birth/Age : |
12.09.1967 |
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Date of Appointment : |
01.03.2005 |
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Name : |
Mr. Ashok Kumar Agarwala |
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Designation : |
Director |
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Address : |
Neha Apartment, 7B Block, |
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Date of Birth/Age : |
01.01.1961 |
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Date of Appointment : |
28.10.1994 |
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Name : |
Mr. Pradip Kumar Agarwal |
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Designation : |
Whole Time Director |
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Address : |
48/ 3, |
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Date of Birth/Age : |
10.01.1964 |
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Date of Appointment : |
28.10.1994 |
KEY EXECUTIVES
|
Name : |
Mr. Santosh Kumar Jha |
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Designation : |
Company Secretary |
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Address : |
Gopal Bhawan Apartments, Flat no.13, Battala Bye Lane, Post Hindhooghly,
West Bengal-712 233, India |
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Date of Birth/Age : |
03.01.1968 |
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Date of Appointment : |
26.08.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Laxmi Devi Agarwal |
|
65725 |
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Subhash Chandra Agarwala |
|
260250 |
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Bhagawati Devi Agarwala |
|
296419 |
|
Puja Vanijya Viniyog Limited, |
|
166165 |
|
Radhey Shyam Agarwal |
|
59700 |
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Mahavir Prasad Agarwal |
|
43200 |
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Gita Devi Agarwal |
|
15750 |
|
Anita Agarwal |
|
18793 |
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Ashok Kumar Agarwal |
|
18090 |
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Satyanarayan Modi |
|
18900 |
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Sumitra Devi Agarwala |
|
13500 |
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Suman Budhia |
|
12375 |
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Pradip Kumar Agarwala |
|
43020 |
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Baxiram Agarwala (HUF) |
|
10125 |
|
Bajaranlal Agarwal and Sons (HUF), |
|
4500 |
As on 29.09.2010
|
Category |
Percentage |
|
Bodies corporate |
33.15 |
|
Directors or relatives of Directors |
51.12 |
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Other top fifty shareholders |
15.72 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Electric Resistance Welded Steel tubes, H.R. Pipes,
H.R. Tubes, Black ERW Pipes, Galvanized Pipes, etc. |
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Products : |
·
Idlers
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GENERAL INFORMATION
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Customers : |
End Users and Distributors |
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No. of Employees : |
500 (In office – 40, In factory – 460) Approximately |
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Bankers : |
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Facilities : |
Secured Loans :
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Banking
Relations : |
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Auditors : |
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Name : |
R. Kothari and Company Chartered Accountants |
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Address : |
16A, Shakespeare Sarani, Kolkata – 700 071, West |
CAPITAL STRUCTURE
As on 29.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6900000 |
Equity Shares |
Rs.10/- each |
Rs.69.000 millions |
|
10000 |
Preference Shares |
Rs.100/- each |
Rs.1.000 million |
|
|
Total
|
|
Rs.70.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5695470 |
Equity Shares |
Rs.10/- each |
Rs.56.955
Millions |
Including 837000 Equity Shares issued as Bonus Shares out of General Reserve
and 496620 Equity Shares issued on consideration other than cash
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 |
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|
|
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|
1] Share Capital |
56.955 |
56.955 |
44.454 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
241.051 |
192.014 |
124.592 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
298.006 |
248.969 |
169.046 |
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
441.904 |
179.855 |
312.140 |
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2] Unsecured Loans |
144.045 |
137.675 |
56.927 |
|
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TOTAL BORROWING |
585.949 |
317.530 |
369.067 |
|
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DEFERRED TAX LIABILITIES |
15.090 |
17.452 |
13.182 |
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TOTAL |
899.045 |
583.951 |
551.295 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
93.412 |
100.620 |
72.551 |
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Capital work-in-progress |
3.132 |
1.707 |
6.114 |
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INVESTMENT |
0.559 |
0.558 |
0.159 |
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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 |
363.014
|
167.084 |
212.683 |
|
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Sundry Debtors |
355.731
|
253.640 |
248.118 |
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Cash & Bank Balances |
11.768
|
6.807 |
12.570 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
112.682
|
80.949 |
36.545 |
|
Total
Current Assets |
843.195
|
508.480 |
509.916 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
23.999
|
21.917 |
|
|
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Other Current Liabilities |
5.385
|
5.361 |
37.445 |
|
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Provisions |
11.869
|
0.136 |
0.000 |
|
Total
Current Liabilities |
41.253
|
27.414 |
37.445 |
|
|
Net Current Assets |
801.942
|
481.066 |
472.471 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
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|
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TOTAL |
899.045 |
583.951 |
551.294 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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|
SALES |
|
|
|
|
|
|
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Income |
2502.977 |
2100.756 |
1542.805 |
|
|
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Other Income |
12.449 |
12.805 |
8.539 |
|
|
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TOTAL (A) |
2515.426 |
2113.561 |
1551.344 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
2190.462 |
1861.978 |
1399.920 |
|
|
|
Payments to and for Employees |
22.550 |
24.964 |
17.876 |
|
|
|
Manufacturing Expenses |
63.063 |
58.918 |
42.747 |
|
|
|
Repairs and Maintenance |
1.040 |
2.245 |
1.126 |
|
|
|
Administrative, Selling and Other Expenses |
83.807 |
76.119 |
37.461 |
|
|
|
Managerial Remuneration |
8.608 |
0.671 |
0.631 |
|
|
|
Miscellaneous Expenses Written off |
0.000 |
0.000 |
0.025 |
|
|
|
Prior Period Adjustments (Net) |
0.483 |
(0.072) |
0.011 |
|
|
|
Increase/(Decrease) in Finished Goods |
(3.845) |
(4.722) |
(11.331) |
|
|
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TOTAL (B) |
2366.168 |
2020.101 |
1488.466 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
149.258 |
93.460 |
62.878 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
52.838 |
42.188 |
32.026 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
96.420 |
51.272 |
30.852 |
|
|
|
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|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.128 |
5.396 |
4.706 |
|
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|
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|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
85.292 |
45.876 |
26.146 |
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Less |
TAX (H) |
29.614 |
16.874 |
9.165 |
|
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|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
55.678 |
29.922 |
16.981 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
84.877 |
59.955 |
47.974 |
|
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|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
(5.000) |
(5.000) |
|
|
|
Dividend |
0.000 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
(0.946) |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
133.914 |
84.877 |
59.955 |
|
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|
|
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|
Earnings Per Share
(Rs.) |
9.78 |
6.54 |
4.92 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.21
|
1.42 |
1.09 |
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
3.39
|
2.18 |
1.69 |
|
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|
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|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.11
|
7.53 |
4.49 |
|
|
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|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.18 |
0.15 |
|
|
|
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|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
43.22
|
28.69 |
39.63 |
|
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|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
20.44
|
18.55 |
13.62 |
LOCAL AGENCY FURTHER INFORMATION
Operation:
During the year, the company has achieved turnover of Rs.2790.656
millions as compared to Rs.2412.807 millions in the previous year and earned
profit before interest and Depreciation Rs.149.258 millions against Rs.93.459
millions in the previous year.
FORM 8
|
Corporate
identity number of the company |
U29120WB1981PLC098963 |
|
Name of the
company |
NEZONE TUBES LIMITED |
|
Address of the
registered office or of the principal place of business in |
Ashoka House, 3A |
|
This form is for |
Modification of Charge |
|
Charge
identification number of the modified |
80021972 |
|
Type of charge |
Book Debts Movable Property Floating Charges Others All Current Assets and Movable Fixed Assets. |
|
Particular of
charge holder |
State Bank of |
|
Nature of description
of the instrument creating or modifying the charge |
i) Supplemental Agreement of Hypothecation of Goods and Assets for
Increase in the Overall Limit - (Form - C.2-A). ii) Letter Regarding the Grant of Individual Limits With the Overall
Limit - (Form - C.5). |
|
Date of
instrument Creating the charge |
11.03.2010 |
|
Amount secured by
the charge |
Rs.610.600 Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of interest Cash Credit: At 0.25% above SBAR, present effective rate @12.00% p.a.
with monthly rests. Rate of Interest as applicable to other limits are specified in
Form-C.5 (attached). Terms of repayment Working Capital Limit is repayable on Demand. The existing term loan of Rs.35.100 millions is repayable as per the
existing terms of sanction. Margin As stipulated by the Bank for the respective assets from time to time. Raw Materials : 25%, Stock-in-Process : 25%, Finished goods : 25%, Receivables (cover period 90 days) : 25%, Term Loan : 33.33% and LC and BG : 10%, However, the Bank shall be entitled at any time
during the currency of the LC and BG to demand and recover any margin till
the full extent of 100% on the LC and BG. Extent and operation of the charge The charge operates as first charge
basis on the whole of the hypothecated current assets including stocks and
book-debts and movable fixed assets of the Company, both present and future
to secure the maximum amount under the said charge fixed at Rs.61,06,00,000/-
together with interest, costs and charges thereon. Others The Borrower shall not do or allow anything which may prejudice the
security and shall comply with the terms and conditions of the Agreements. All other terms and conditions continue to remain as before in full
force and effect. |
|
Short particulars
of the property charged |
First charge on Stocks, Book Debts
and other current assets of the Company, both present and future. Entire moveable fixed assets, both present
and future, of the Company. |
|
Date of latest
modification prior to the present modification |
25.03.2009 |
|
Particulars of
the present modification |
By this modification, the overall
limit is enhanced from Rs.560.000 millions to Rs.610.600 millions as stated
under and charge on hypothecated current assets and moveable fixed assets
extended to secure the enhanced overall limit together with interest, costs
and charges thereon: Cash Credit : Rs.340.000 Millions Term Loan : Rs. 35.100 Millions Letter of Credit : Rs.100.000
Millions Bank Guarantee : Rs.30.000 Millions Ad-hoc Letter of Credit : Rs.50.000
Millions SLC : Rs.50.000 millions Forward Contract: Rs.55.000 millions. |
FIXED ASSETS:
- Land and Site Development
- Building (Non Factory)
- Building Factory
- Plant and Machineries
- Electrical Installation
- Furniture and Fixtures
- Other Equipments
- Vehicles
- Air Conditioner
- Computer
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.45.21 |
|
|
1 |
Rs.72.55 |
|
Euro |
1 |
Rs.62.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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.