MIRA INFORM REPORT

 

 

Report Date :

31.12.2012

 

IDENTIFICATION DETAILS

 

Name :

A.S. STEEL TRADERS (VSP) PRIVATE LIMITED

 

 

Registered Office :

9-1-248, CBM Compound, Visakhapatnam – 530003, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

19.03.2003

 

 

Com. Reg. No.:

01-040683

 

 

Capital Investment / Paid-up Capital :

Rs. 20.000 Millions

 

 

CIN No.:

[Company Identification No.]

U27109AP2003PTC040683

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

VPNA01095D

 

 

PAN No.:

[Permanent Account No.]

AAFCA0796B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading in Iron and Steel.

 

 

No. of Employees :

Not Available

 

 

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 310000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The latest financial are not made available with the government department.

 

As per previous year’s, the profitability of the company appears to be low and huge external borrowing.

 

However, trade relations are reported to be fair. Business is active. Payments are unknown.

 

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

 

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

FITCH

Rating

Long term rating : (FITCH) BB-

Rating Explanation

Rating indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions overtime. 

Date

September 2012

 

 

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 :

9-1-248, CBM Compound, Visakhapatnam – 530003, Andhra Pradesh, India

Tel. No.:

91-891-6663365/ 6661365

Fax No.:

91-891-6631365

E-Mail :

pnrao56_cs@rediffmail.com

 

 

Stockyard :

Plot No. 2A, Ancillary Industrial Estate, Pedagantyada, VUDA Colony, Visakhapatnam – 530026, Andhra Pradesh, India

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Mahesh Anumalisetti

Designation :

Director

Address :

Plot No. 201, Sector-IV, MVP Colony, Visakhapatnam – 530017, Andhra Pradesh, India

Date of Birth/Age :

26.11.1966

Date of Appointment :

19.03.2003

DIN No.:

00176695

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U02710KA1996PTC020931

BLACKGOLD PROFILES PRIVATE LIMITED

Director

01/04/1997

01/04/1997

Active

NO

2

U65992AP2001PTC037726

A.S. STEELCITY CHITS (INDIA) PRIVATE LIMITED

Managing director

30/08/2001

30/08/2001

Active

NO

3

U27109AP2003PTC040683

A.S. STEEL TRADERS (VSP) PRIVATE LIMITED

Director

19/03/2003

19/03/2003

Active

NO

4

U70102AP2007PTC052419

AMRUTHA VALLEY ESTATES PRIVATE LIMITED

Managing director

20/01/2007

20/01/2007

Active

YES

5

U70102AP2008PTC057150

VISAKHA REALTY PRIVATE LIMITED

Managing director

01/02/2008

15/01/2008

Active

NO

6

U27310AP2011PTC076631

A.S.WIRE INDUSTRIES (VSP) PRIVATE LIMITED

Director

20/09/2011

20/09/2011

Active

NO

 

 

Name :

Mr. Nagesh Anumalisetty

Designation :

Director

Address :

Plot No. 201, Sector-IV, MVP Colony, Visakhapatnam – 530017, Andhra Pradesh, India

Date of Birth/Age :

07.10.1964

Date of Appointment :

19.03.2003

DIN No.:

00455700

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U02710KA1996PTC020931

BLACKGOLD PROFILES PRIVATE LIMITED

Managing director

05/08/1996

05/08/1996

-

Active

NO

2

U17119AP1972PLC001519

ANDHRA PRADESH FIBRES LIMITED

Director

05/03/2002

05/03/2002

-

Active

NO

3

U65992AP2001PTC037726

A.S. STEELCITY CHITS (INDIA) PRIVATE LIMITED

Director

01/04/2002

01/04/2002

-

Active

NO

4

U27104AP1995PTC021108

VIJAYALAKSHMI STEEL WIRES PRIVATE LIMITED

Director

15/07/2002

15/07/2002

-

Active

NO

5

U27109AP2003PTC040683

A.S. STEEL TRADERS (VSP) PRIVATE LIMITED

Director

19/03/2003

19/03/2003

-

Active

NO

6

U17229WB1996PTC080718

AAREN EXPORTERS PRIVATE LIMITED

Additional director

06/07/2007

06/07/2007

15/02/2008

Under Process of Striking off

NO

7

U27100AP2010PLC069543

SSG ALLOYS LIMITED

Director

20/07/2010

20/07/2010

-

Active

NO

8

U01119AP2010PTC071216

A.S. JUTE PRODUCT PRIVATE LIMITED

Director

15/11/2010

15/11/2010

-

Active

NO

9

U27310AP2011PTC076631

A.S.WIRE INDUSTRIES (VSP) PRIVATE LIMITED

Director

20/09/2011

20/09/2011

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

 

No. of Shares

 

Mahesh Anumali Setty

 

133500

Nagesh Anumali Setty

 

16500

Jagadish Anumali Setty

 

50000

Total

 

200000

 

 

AS ON 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trading in Iron and Steel.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

State Bank of India, Overseas Branch, # 9-1-57, G.N.T. Road, Visakhapatnam – 530013, Andhra Pradesh, India

 

 

Facilities :

 

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

Rupee term loans banks secured

151.768

0.000

Working capital loans banks secured

228.696

195.922

Loans taken for vehicles secured

1.619

1.960

Total

382.083

197.882

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

E.R Somayajulu

Chartered Accountant

Address :

Sri Rama - Kothagraharm, 3rd Lane, Vizianagaram, Andhra Pradesh, India

Tel. No.:

91-8922-226343/ 222343/ 222334

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

AAAPE9890J

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200,000

Equity Shares

Rs. 100/- each

Rs. 20.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200,000

Equity Shares

Rs. 100/- each

Rs. 20.000 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

20.000

7.500

7.500

2] Share Application Money

1.200

7.000

0.000

3] Reserves & Surplus

56.378

36.105

24.153

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

77.578

50.605

31.653

LOAN FUNDS

 

 

 

1] Secured Loans

382.083

197.882

102.587

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

382.083

197.882

102.587

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

459.661

248.487

134.240

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3.536

4.292

1.975

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

59.967

84.000

11.575

 

Sundry Debtors

296.629

245.777

260.038

 

Cash & Bank Balances

1.190

7.846

0.406

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

155.910

2.543

5.840

Total Current Assets

513.696

340.166

277.859

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

52.771

89.975

144.287

 

Other Current Liabilities

0.000

0.000

0.000

 

Provisions

4.800

5.996

1.321

Total Current Liabilities

57.571

95.971

145.608

Net Current Assets

456.125

244.195

132.251

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.014

 

 

 

 

TOTAL

459.661

248.487

134.240

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

 

 

 

 

 

TURNOVER

2959.200

2592.424

2705.328

 

 

 

 

 

 

PROFIT BEFORE TAX

30.839

18.606

12.637

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

Return on Total Assets

(PBT/Total Assets}

(%)

5.96

5.40

4.52

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.40

0.37

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

5.67

5.81

7.84

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

8.92

3.54

1.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

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

No

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

Yes

 

 

REVIEW OF PERFORMANCE:

 

During the year, the company has achieved a turnover of Rs.2959.200 Millions through trading in Iron and Steel. The company earned a Net Profit of Rs.30.839 Millions after depreciation and finance charges.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U27109AP2003PTC040683

Name of the company

A.S. STEEL TRADERS (VSP) PRIVATE LIMITED

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

9-1-248, CBM Compound, Visakhapatnam – 530003, Andhra Pradesh, India

Email: pnrao56_cs@rediffmail.com

This form is for

Modification of charge

Charge identification number of the modified 

10210732

Type of charge

Book debts

Movable property (not being pledge)

Others [Hypothecation of Book Debts etc]

Particular of charge holder

State Bank of India, Overseas Branch, # 9-1-57, G.N.T. Road, Visakhapatnam – 530013, Andhra Pradesh, India

Email: sbi.08974@sbi.co.in

Nature of description of the instrument creating or modifying the charge

1. Letter regarding the grant of individual Limits within the Overall Limit (Form C.5)

Date of instrument Creating the charge

26.11.2012

Amount secured by the charge

Rs. 452.600 Millions

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

Rate of Interest

For Cash Credit (Hyp): 3.75% p.a. above Base Rate.

 

Terms of Repayment

Cash Credit limit shall be repayable on demand

 

Margin

Raw Materials: 25%

Finished Goods: 25%.

Book Debts (Cover period 90 days): 25%.

Letter of Credit: 20%.

Bank Guarantee: 20%.

 

Extent and Operation of the charge

It is a continuous charge until the repayment of the entire loan.

 

Others

The aggregate Limit of Rs.452.600 Millions consists of :

CC (Hyp): 300.000 Millions.

LC: Rs.150.000 Millions.

BG: Rs.40.000 Millions (sub-limit of Cash Credit Limit).

Forward Contract: Rs.2.600 Millions.

Short particulars of the property charged

Hypothecation of Stocks, Book Debts, Receivables and all other chargeable Current Assets of the Company (both present and future).

Date of Modification

02.02.2012

Particulars of the present modification 

In addition to the existing Credit Facilities, now the Bank has sanctioned forward contract Limit of Rs.260.000 Millions and there is no change in Cash Credit (Hyp) Facility of Rs.300.000 Millions with-in-which a sub-limit of Bank Guarantee of Rs.40.000 Millions and the LC limit of Rs.150.000 Millions Now, the Overall Limits increased to Rs.452.600 Millions. All the existing securities be and are hereby extended to revised limits also.

 

 

FIXED ASSETS:

 

Ř       Furniture and Fixture

Ř       Air Conditioner

Ř       Fan

Ř       Printer

Ř       Scooter

Ř       Vehicle

Ř       Computer

Ř       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. 54.85

UK Pound

1

Rs. 88.40

Euro

1

Rs. 72.63

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

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.