MIRA INFORM REPORT

 

 

Report Date :

17.03.2011

 

IDENTIFICATION DETAILS

 

Name :

JAIPRAKASH ENGINEERING AND STEEL COMPANY LIMITED

 

 

Registered Office :

510, 3rd A Cross Road, 2nd Main 3rd Block, Rajamahal Vilas – II Dollars Colony, Bangalore – 560094, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

01.09.1993

 

 

Com. Reg. No.:

08-014694

 

 

CIN No.:

[Company Identification No.]

U00337KA1993PLC014694

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Steel

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 2309900

 

 

Status :

Moderate

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Nagarjuna Fertilizers and Chemicals Limited. It is a well established company having moderate track. The company is yet to commence its business activities. However, trade relations are reported as fair. Payments are reported to be usually correct.

 

In view of a strong holding company. Subject 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

 

 

 

LOCATIONS

           

Registered Office :

510, 3rd A Cross Road, 2nd Main 3rd Block, Rajamahal Vilas – II Dollars Colony, Bangalore – 560094, Karnataka, India

E-Mail :

tvamsikrishna@nagarjunagroup.com

 

 

 

DIRECTORS

 

Name :

Mr. Kanumuru Satyanarayana Raju

Designation :

Director

Address :

“Digvijayam”, Plot No.933A, Road No.47, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh

Date of Birth/Age :

29.06.1950

Date of Appointment :

02.09.1995

DIN :

00008177

 

 

Name :

Mr. Kallepalli Soma Raju

Designation :

Director

Address :

2-2-23/22/25, B/h Ahobil Mutt, Hyderabad, Andhra Pradesh

Date of Birth/Age :

15.07.1951

Date of Appointment :

01.09.2003

DIN :

00018539

 

 

Name :

Mr. Pashupati Singh

Designation :

Director

Address :

Plot No.144, Road No.72, Jubilee Hills Phase III, Hyderabad – 500033, Andhra Pradesh

Date of Birth/Age :

15.01.1941

Date of Appointment :

28.01.2001

DIN :

00051401

 

 

Name :

Mr. Vijayanand Yelluri

Designation :

Director

Address :

Sargam, 1-55/32, DCL Camelot Layout, MAsjid Banda, Kondapur, Hyderabad – 500084, Andhra Pradesh

Date of Birth/Age :

17.08.1947

Date of Appointment :

07.03.2009

DIN :

00594503

 

 

KEY EXECUTIVES

 

Name :

Mr. Datla Srinath Raju

Designation :

Manager

Address :

104, Nagarjuna Residency, Plot No.2 and 3, Rajeev Nagar, Hyderabad – 500045, Andhra Pradesh

Date of Birth/Age :

15.06.1958

Date of Appointment :

01.05.2008

PAN NO.:

ABPPD1501R

 

 

Name :

Mr. Vamsi Krishna Tadepalli

Designation :

Secretary

Address :

Plot No.104 A, 2nd Floor, Gandhi Nagar, SBI Colony, Hyderabad – 500080, Andhra Pradesh

Date of Birth/Age :

01.07.1981

Date of Appointment :

23.02.2007

PAN NO.:

AQDPK2321D

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.04.2010

 

Names of Shareholders

 

No. of Shares

K Rahul Raju

 

1

Shri A N Chidamber

 

1

Shri T V Dwarkanath

 

1

Shri A Vyasa Maheshwar Rao

 

1

Nagarjuna Fertilizers and Chemicals Limited, Andhra Pradesh

 

22561693

You and Me Trading Private Limited, Mumbai

 

28880

Shailendra Kant Dixit

 

625

Rekha Dixit

 

625

Gaur Jai Prakash

 

376

Gaur Manoj

 

1250

Gaur Sameer

 

1250

Gaur Anoop

 

1250

Gaur Rita

 

1250

Total

 

22597203

 

As on 28.04.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

99.90

Other top fifty shareholders

 

0.10

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Steel

 

 

GENERAL INFORMATION

 

Bankers :

Not Divulged

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M Bhaskara Rao and Company

Chartered Accountant

Address :

 5-D, Fifth Floor, Kautilya 6-3-652, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Tel. No.:

91-40-23311245 / 23393900

Email :

Mbr_co@hathway.com

PAN No.:

ABIPV1791L

 

 

Holding Company :

Nagarjuna Fertilizers and Chemicals Limited

CIN : L24129AP1976PLC001983

 

 

Fellow Subsidiaries :
  • Kakinada Fertilizers Limited
  • Nagarjuna Oil Corporation Limited

 

 

CAPITAL STRUCTURE

 

As on 28.04.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

23,000,000

Equity Shares

Rs.10/-each

Rs.230.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

22,597,203

Equity Shares

Rs.10/-each

Rs.225.972 millions

 

(out of the above 22561693 equity shares are held by Nagarjuna Fertilizers and Chemicals Limited, the holding company)

 

 

 

 

 

 

 

 

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

225.972

225.972

225.972

2] Share Application Money

351.218

351.218

351.218

3] Reserves & Surplus

0.285

0.285

0.285

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

577.475

577.475

577.475

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

4.256

4.256

4.256

TOTAL BORROWING

4.256

4.256

4.256

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

581.731

581.731

581.731

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2.883

2.883

2.883

Expenditure pending allocation as per account statement

388.698

388.572

388.354

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

0.000

0.000

0.000

 

Cash & Bank Balances
2.588

2.725

0.098

 

Loans & Advances
191.301

191.216

193.995

Total Current Assets
193.889

193.941

194.093

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
3.677

3.610

3.599

 

Other Current Liabilities
0.000

0.000

0.000

 

Provisions
0.062

0.055

0.000

Total Current Liabilities
3.739

3.665

3.599

Net Current Assets
190.150

190.276

190.494

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

581.731

581.731

581.731

 

 KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.01

0.01

0.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
51.86

52.92

53.93

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Activities of the Company

 

The Company is considering implementing various infrastructure projects to utilize the available land appropriately and gainfully.

 

 

Contingent Liabilities :

 

NO provision has been made in the accounts in respect of income tax demand for the assessment years 1986-87 to 1995-96. Appeal pending before the income tax authorities, lucknow. Tax liability ascertained Rs.9.466 million (previous year Rs.9.466). Tax paid Rs.4.546 million.

 

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 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

UK Pound

1

Rs.75.58

Euro

1

Rs.63.13

 

 

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

5

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

36

 

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.