MIRA INFORM REPORT

 

 

Report Date :

14.12.2012

 

IDENTIFICATION DETAILS

 

Name :

AASTHA MINMET (INDIA) LIMITED

 

 

Formerly Known As :

AASTHA MINMET (INDIA) PRIVATE LIMITED

 

 

Registered Office :

No.W-204, 2nd Floor, Sunrise Chambers, Ulsoor Road, Bangalore – 560 042, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011 

 

 

Date of Incorporation :

07.05.2007

 

 

Com. Reg. No.:

08-042717

 

 

Capital Investment / Paid-up Capital :

Rs.9.871 millions

 

 

CIN No.:

[Company Identification No.]

U27105KA2007PLC042717

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRA09938F

 

 

PAN No.:

[Permanent Account No.]

AAGCA5748Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Dealer in Iron, Steel and Cement.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 330000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. The latest financial is missing from Government Department. And from the previous year record the profitability of the company appears to be low.

 

However, the performance capacity is good. Sales turnover seem to be appreciating. Trade relations are reported to be fair. Business is active. Payments are reported to be unknown.

 

The company can be considered for business dealings with some caution.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

No.W-204, 2nd Floor, Sunrise Chambers, Ulsoor Road, Bangalore – 560 042, Karnataka, India

Tel. No.:

91-80-41718154

Fax No.:

91-80-41718155

E-Mail :

finance@aail.co.in

accounts@aail.co.in

 

 

Corporate Office :

1116, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-43473202/ 03

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Mohit Agarwal

Designation :

Director

Address :

Plot # 50/51, R.H.B. Colony, 2nd Main, 2nd Cross, Mahadevapura, Bangalore – 560 048, Karnataka, India

Date of Appointment :

07.05.2007

DIN No.:

01374927

 

 

Name :

Shilpa Agarwal

Designation :

Director

Address :

No.50/51, 2nd Main, 2nd Cross, RHB Layout, Whitefield Road, Mahadevapura, Bangalore – 560 048, Karnataka, India

Date of Appointment :

07.05.2007

DIN No.:

01793857

 

 

Name :

Mr. Deepak Kumar Agarwal

Designation :

Additional Director

Address :

Mahanadi Vihar, Naya Bazar, Cuttack - 753 004, Orissa, India

Date of Birth/ Age :

03.08.1974

Date of Appointment :

02.11.2012

DIN No.:

00656960

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2012

 

Names of Shareholders

 

No. of Shares

 

Mohit Agarwal

 

4572770

Shilpa Agarwal

 

47725

Akansha Credit Capital Private Limited, India

 

67500

Rima lmplex Private Limited, India

 

20000

Best Way Hire Purchase Private Limited, India

 

125000

Gugnani Leasing and Hire Purchase Private Limited, India

 

125000

Maladevi Agarwal

 

500

Aastha Alloycorp Private Limited, India

 

1943925

Total

 

6902420

 

As on 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

33.05

Directors or relatives of directors

 

66.95

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Dealer in Iron, Steel and Cement.

 

 

Products :

Item Code No. (ITC Code)

721310

Product Description

Iron, Steel and Cement

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v  Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

v  IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v  Syndicate Bank, Shoolay Branch, 28, Ashok Nagar, Residency Road, Bangalore – 560 025, Karnataka, India

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Working Capital Borrowings

 

 

IDBI Bank

152.137

169.789

Total

152.137

169.789

 

Unsecured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Loans from Bank

1.635

4.787

Total

1.635

4.787

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Vikas Kumar Khaitan

Chartered Accountants

Address :

#115, SVR Flora, 32/11, Haralur Road, HSR Layout, Sector 2, Bangalore – 560 102, Karnataka, India

Income-tax PAN of auditor or auditor's firm :

AMKPK7957N

 

 

Associates :

v  Sree Balajee TMT Rod Mills Private Limited

v  Aastha Alloys Private Limited

v  Karma Strategies Private Limited

 

 

CAPITAL STRUCTURE

 

As on 29.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

11000000

Equity Shares

Rs.10/- each

Rs.110.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6902420

Equity Shares

Rs.10/- each

Rs.69.024 millions

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2500000

Equity Shares

Rs.10/- each

Rs.25.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

987054

Equity Shares

Rs.10/- each

Rs.9.871 millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

9.871

9.871

9.871

2] Share Application Money

60.000

0.000

0.000

3] Reserves & Surplus

12.631

10.139

10.114

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

82.502

20.010

19.985

LOAN FUNDS

 

 

 

1] Secured Loans

152.137

169.789

37.922

2] Unsecured Loans

1.635

4.787

8.562

TOTAL BORROWING

153.772

174.576

46.484

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

236.274

194.586

66.469

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

7.024

7.670

2.348

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

4.054

4.054

4.054

DEFERRED TAX ASSETS

0.272

0.231

0.193

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
82.540

46.548

20.140

 

Sundry Debtors
129.829

92.274

88.390

 

Cash & Bank Balances
14.330

19.442

4.990

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
16.326

30.182

5.194

Total Current Assets
243.025

188.446

118.714

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
16.754

0.711

58.878

 

Other Current Liabilities
0.000

5.129

0.000

 

Provisions
1.359

0.000

0.000

Total Current Liabilities
18.113

5.840

58.878

Net Current Assets
224.912

182.606

59.836

 

 

 

 

MISCELLANEOUS EXPENSES

0.012

0.025

0.038

 

 

 

 

TOTAL

236.274

194.586

66.469

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

780.251

312.890

633.747

 

 

Other Income

1.785

3.296

1.163

 

 

TOTAL                                     (A)

782.036

316.186

634.910

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

746.650

295.888

617.687

 

 

Administrative & General Expenses

5.998

6.156

5.560

 

 

Selling & Distribution Expenses

0.709

0.398

2.597

 

 

Preliminary Expenses Written off

0.013

0.013

0.013

 

 

TOTAL                                     (B)

753.370

302.455

625.857

 

 

 

 

 

Less

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

28.666

13.731

9.053

 

 

 

 

 

Less

INTEREST & FINANCIAL EXPENSES               (D)

23.888

11.499

5.424

 

 

 

 

 

 

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

4.778

2.232

3.629

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.967

0.714

0.475

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

3.811

1.518

3.154

 

 

 

 

 

Less

TAX                                                                  (H)

1.319

0.486

0.580

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2.492

1.032

2.574

 

 

 

 

 

Less

Prior period adjustment

0.000

(1.007)

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4.064

4.039

1.465

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

6.556

4.064

4.039

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Trading Items (Purchases)

22.479

10.575

0.677

 

TOTAL IMPORTS

22.479

10.575

0.677

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.53

1.05

2.61

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
0.32

0.33

0.41

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.49

0.49

0.50

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.52

0.77

2.61

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.05

0.08

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.08

9.02

5.27

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
13.42

32.27

2.02

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

No

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

Yes

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

No

 

 


Note:

The registered office of the company has been shifted from Flat # 402, Motati Meadows, 4th Floor, Old Madras Road, C.V. Raman Nagar, Bangalore – 560 093, Karnataka to the present address w.e.f. 07.03.2012.

 

PERFORMANCE HIGHLIGHTS

 

The profit after tax during the year amounted to Rs.2.492 millions as compared to Rs.1.031 millions during previous year which is primarily due to increase in their top line from Rs.310.000 millions to Rs.780.000 millions. After brought forward surplus of Rs.4.064 millions, the net surplus of Rs.6.556 millions is proposed to be carried to the Balance Sheet. In order to conserve the available resources, the Directors do not propose to declare any dividend.

 

OPERATIONS

The turnover of the Company has more than doubled in terms of quantity and value. The prices of the steel are also expected to go up because of - increasing demand from infrastructure and construction sectors, aggressive government spending on various social welfare and development projects, shortage of raw materials like iron ore etc. The company is thus poised to be on growth path in terms of both turnover and profitability.

 

FINANCE

 

During the year, the Company has continued to avail financial assistance from IDBI Bank, Bangalore, its esteemed Bankers, by way of Working Capital limits on extremely competitive terms for its operational requirements. The said credit facilities were sanctioned vide letter dated 02.12.2009 with an overall sanctioned limit of Rs.150.000 millions including both Fund Based and Non Fund Based Limits. The Directors confirm that the funds obtained by the Company by way of working capital borrowings have been duly utilized for working capital requirement.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U27105KA2007PTC042717

Name of the company

AASTHA MINMET (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

No.W-204, 2nd Floor, Sunrise Chambers, Ulsoor Road, Bangalore – 560 042, Karnataka, India

E-Mail: finance@aail.co.in

This form is for

Creation of charge

Type of charge

Others (Fixed Deposits)

Particular of charge holder

CIN No.: L65190MH2003PLC143249

Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

E-Mail: shareholders@yesbank.in

Nature of description of the instrument creating or modifying the charge

Deed of Hypothecation

Date of instrument Creating the charge

29.06.2012

Amount secured by the charge

Rs.315.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

LC/BC: Commission: 0.5% p.a.

 

Terms of Repayment:

LC-Usance: Usance: 180 days, Validity: 225 days(including usance period)

LC-Sight: Validity: 60 days

BC: Tenor: Maximum 12 months from the date of shipment

 

Margin:

NA

 

Extent and Operation of the charge:

First exclusive charge on Fixed Deposit in the name of borrower

Short particulars of the property charged

First exclusive charge on Fixed Deposit in the name of Borrower

 

FIXED ASSETS:

 

v  Land

v  Gold Coin

v  Office Equipment

v  Furniture and Fixtures

v  Computers

v  Vehicles

 

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.54.23

UK Pound

1

Rs.87.53

Euro

1

Rs.70.94 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

27

 

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.