MIRA INFORM REPORT

 

 

Report Date :

12.06.2012

 

IDENTIFICATION DETAILS

 

Name :

KHANNA DELTA STEEL PRIVATE LIMITED

 

 

Registered Office :

210, Sant Tukaram Road, Masjid Bunder, Mumbai 400009, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

14.08.2003

 

 

Com. Reg. No.:

141751

 

 

Capital Investment / Paid-up Capital :

Rs. 0.204 million

 

 

CIN No.:

[Company Identification No.]

U27100MH2003PTC141751

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK13291F

 

 

PAN No.:

[Permanent Account No.]

AACCK2956L

 

 

Legal Form :

Private Limited Liability Company 

 

 

Line of Business :

Trader of Iron and Steel

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 61596

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an 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. 

 

Profit and Loss accounts are not available.

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 :

210, Sant Tukaram Road, Masjid Bunder, Mumbai 400009, Maharashtra, India

Tel. No.:

91-22-23482101 / 23482102

Fax No.:

91-22-23482103

E-Mail :

deltasteel@vsnl.net

kdodecha@yahoo.co.in

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Dhanesh J Mehta

Designation :

Director

Date of Birth/Age :

24.10.1960

Date of Appointment :

22.04.2004

 

 

Name :

Mr. Akshay R Jain

Designation :

Director

Date of Birth/Age :

04.03.1960

Date of Appointment :

14.08.2003

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

No. of Shares

 

Akshay R Jain

3300

Dhanesh J Mehta

3300

Delta Iron and Steel Company Private Limited, India

1900

Mehta D Shruti

2900

Jain B Rajendra

1900

Fairdeal Polly Tex Private Limited, India

1900

Jain Akshay Rajshree

1900

Jain Akshay HUF

3300

Total

20400

 

AS ON 30.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader of Iron and Steel

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

The Kapole Co Operative Bank Limited, L J Branch, Ground Floor, Steel Centre, S T Road, Karnac Bunder, Mumbai 400009, Maharashtra, India

 

 

Facilities :

Rs. In Millions

 

SECURED LOAN

31.03.2011

 

31.03.2010

 

The Kapol Co-operative Bank Limited CC/133

[Secured Against Hypothecation of Stock]

27.554

32.432

The Kapol Co-operative Bank Limited CCB/82

[Secured Against Hypothecation of Book Debts]

34.957

25.365

Total

62.511

57.797

 

 

 

UNSECURED LOAN

 

 

From Members

0.450

0.450

Inter Corporate Deposit

10.916

5.916

Total

11.366

6.366

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalpesh Sunil and Associates

Chartered Accountant

Address :

2 Naval Palace, Nariman Road, Vile Parle (East), Mumbai 400057, Maharashtra, India

 

 

Name :

Lakhani and Company

Chartered Accountant

Address :

Jeevan Udyog, 278 D N Road, 2nd Floor, Fort, Mumbai 400001, Maharashtra,  India

 

 

Associates/Subsidiaries :

·         Delta Iron and Steel Company Limited

·         ARK Industries Private Limited

 


 

CAPITAL STRUCTURE

 

AS ON 30.09.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs. 10 each

Rs.1.000 million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

20400

Equity Shares

Rs. 10 each

Rs. 0.204 million

 

 

 

 

 

 

 


 

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

0.204

0.204

0.204

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

15.195

13.973

12.185

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

15.399

14.177

12.389

LOAN FUNDS

 

 

 

1] Secured Loans

62.511

57.797

59.655

2] Unsecured Loans

11.366

6.366

5.916

TOTAL BORROWING

73.877

64.163

65.571

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

89.276

78.340

77.960

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

0.025

0.037

0.054

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

16.403

15.862

0.200

DEFERREX TAX ASSETS

0.001

0.040

0.046

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

23.211

69.007

21.682

 

Sundry Debtors

51.440

95.521

55.374

 

Cash & Bank Balances

0.298

0.103

0.473

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

70.995

63.128

69.697

Total Current Assets

145.944

227.759

147.226

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

65.520

120.943

68.351

 

Other Current Liabilities

5.662

43.070

0.524

 

Provisions

1.915

1.345

0.691

Total Current Liabilities

73.097

165.358

69.566

Net Current Assets

72.847

62.401

77.660

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

89.276

78.340

77.960

 

 


 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

Debt Equity Ratio

(Total Liability/Networth)

 

9.54

16.18

10.90

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.99

1.37

2.11

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

Registered office of the company has been shifted from Ashom House 40 Baroda Street, Mumbai 400009, Maharashtra, India to the present address w.e.f. 16.04.2007

 

FORM 8

 

Corporate identity number of the company

U27100MH2003PTC141751

Name of the company

KHANNA DELTA STEEL PRIVATE LIMITED

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

210, Sant Tukaram Road, Masjid Bunder, Mumbai 400009, Maharashtra, India

This form is for

Modification of charge

Type of charge

Book debts

Particular of charge holder

The Kapole Co Operative Bank Limited, L J Branch, Ground Floor, Steel Centre, S T Road, Karnac Bunder, Mumbai 400009, Maharashtra, India

Email: kapol_cad@rediffmail.com

Nature of instrument creating charge

Agreement of hypothecation of book debts dated November 28, 2010 and letter of hypothecation of goods dated November 28, 2010

Date of instrument Creating the charge

28.11.2010

Amount secured by the charge

Rs. 70.000 millions

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

Rate of interest

14% p.a.

 

Terms of repayment

On Demand

 

Margin

40% cost/market price, whichever is lower.

50% of Book Debts not exceeding 90 days.

 

Extent and operation of the charge

Cash Credit facility granted against Hypothecation of Stocks of H.R.Coil/Sheets/Plates (Iron and Steel) and Book Debts.

 

To secure the due repayment of the loan limits and for interest and other charges thereon, the collateral charge on residential Flat No. 101, 10th floor, Venus Apartment at Cuff Parade, next to President Hotel, Mumbai - 400 005  having Market value of around Rs.53.680 millions.

Short particulars of the property charged (Including location of the property)

Collateral charge on residential Flat No. 101, 10th floor, Venus Apartment at Cuff Parade, next to President Hotel, Mumbai - 400 005  having Market value of Rs.53.680 millions (approx).

Particulars of the present modification

The Original Charge dt. 19-5-07 for Rs. 40.000 millions now modified  this modification Secured Loan Limits are enhanced from Rs 40.000 millions to Rs 70.000 millions as stated under :

Cash Credit :

Hypothecation of Stock              Rs     35.000 millions,

Hypothecation of Book Debts     Rs     35.000 millions,

 

The total charge stands modified to Rs 70.000 millions

 

 

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

--

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

Yes

30) Major Shareholders, if available

Yes

 

 

 


 

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.55.24

UK Pound

1

Rs.85.93

Euro

1

Rs.69.82

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

45

 

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.