MIRA INFORM REPORT

 

 

Report Date :

29.11.2012

 

IDENTIFICATION DETAILS

 

Name :

STAR WIRE (INDIA) LIMITED

 

 

Registered Office :

35, Link Road, 2nd Floor, Lajpat Nagar – III, Delhi – 110024

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.07.1963

 

 

Com. Reg. No.:

55-117600

 

 

Capital Investment / Paid-up Capital :

Rs.187.203 Millions

 

 

CIN No.:

[Company Identification No.]

U27109DL1963PLC117600

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALT00276D

 

 

PAN No.:

[Permanent Account No.]

AAECS1124Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers and Exporters of Steel Castings, Special Steel Rolled Products/ Forged Products, Forging Quality Ingot. 

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 6000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. It has achieved better increase in its revenue earned from operations and profits during 2011.

 

Trade relations are reported as decent. Business is active. Payment terms re usually correct and as per commitments.

 

The company can be considered 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 – 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

ICRA

Rating

Term Loan: BBB

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

February, 2012

 

 

Rating Agency Name

ICRA

Rating

Short Term Non Fund Based Limits: A2

Rating Explanation

Strong degree of safety and low credit risk.

Date

February, 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/ Head Office :

35, Link Road, 2nd Floor, Lajpat Nagar – III, Delhi – 110024, India

Tel. No.:

91-11-29832650/ 29832654

Fax No.:

91-11-29832542

E-Mail :

rekhacs@rediffmail.com

starwire@giasdl01.vsnl.net.in

splstar@id.etn.net

info@splsteel.com

csstarwire@gmail.com

Website :

http://www.splsteel.com

 

 

Factory :

21/4, Mathura Road, Ballabgarh – 121004, Haryana, India 

Tel. No.:

91-129-2242263/ 2241263/ 2241264/ 2240762 / 2240763/ 2246762/ 2246763, 2248262/ 2300462/ 2213365/ 2246463 / 5062143/ 5062144/ 5062145/ 5062146/ 5061751/ 5061752 / 5061753

Fax No.:

91-129-2241265

 

 

DIRECTORS

 

(AS ON 30.09.2011)

 

Name :

Mr. Mohindar Kumar Gupta

Designation :

Managing Director

Address :

A-11, Nizamuddin West, New Delhi – 110013, India

Date of Birth/Age :

01.12.1958

Date of Appointment :

16.03.1981

DIN No.:

00054110

 

 

Name :

Ms. Rekha Gupta

Designation :

Director

Address :

A-11, Nizamuddin West, New Delhi – 110013, India

Date of Birth/Age :

23.10.1963

Date of Appointment :

10.11.1993

DIN No.:

00054073

 

 

Name :

Ms. Abhishek Gupta 

Designation :

Whole Time Director

Address :

A-11, Nizamuddin West, New Delhi – 110013, India

Date of Birth/Age :

16.04.1987

Date of Appointment :

01.11.2010

DIN No.:

00054145

 

 

Name :

Mr. Mahima Gupta 

Designation :

Director

Address :

A-11, Nizamuddin West, New Delhi – 110013, India

Date of Birth/Age :

06.05.1987

Date of Appointment :

21.02.2011

DIN No.:

02237504

 

 

Name :

Mr. Samir Gupta

Designation :

Whole Time Director

Address :

A-11, Nizamuddin West, New Delhi – 110013, India

Date of Birth/Age :

01.10.1983

Date of Appointment :

01.04.2006

DIN No.:

00054308

 

 

KEY EXECUTIVES

 

Name :

Mrs. Rekha Sharma

Designation :

Company Secretary

Address :

E-35, Arya Samaj Road, Uttam Nagar, New Delhi

Date of Appointment :

25.04.2008

PAN No.:

AWTPS2736E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2011)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Mohinder Kumar Gupta

 

42030000

Minal Gupta

 

5000

Juhi Leasing and Finance Limited, India

 

5070000

Interglobal Steels Private Limited, India

 

16420000

Samir Gupta

 

26863125

Supersigma Alloys and Forggings Private Limited, India

 

5680000

Nipin Steels Private Limited, India

 

5395000

Abhishek Gupta

 

3355000

Rekha Gupta

 

6600000

Murnet India private Limited, India

 

7748000

Padmabh Steel Private Limited, India 

 

1350000

S. J. Tea and Traders Private Limited, India

 

1592000

Polylink Vinimay Private Limited, India 

 

1350000

Cornflower Vinimy Private Limited, India

 

1250000

Sita Ram Gupta

 

12500000

Shares under dispute

 

24589375

 

 

 

Total

 

161797500

 

 

 

 

(AS ON 10.01.2012)

 

Names of Allottees

 

 

No. of Shares Allotted

 

 

 

Juhi Leasing and Finance Limited, India

 

100000000

 

 

 

Total

 

100000000

 

 

 

(AS ON 30.09.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Bodies corporate

 

28.34

Directors or relatives of directors

 

71.66

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of Steel Castings, Special Steel Rolled Products/ Forged Products, Forging Quality Ingot. 

 

 

Products :

Products Description

Item Code No.

 

Steel Ingots

72

Steel Castings

73

Rolled Products

72

 

 

GENERAL INFORMATION

 

Customers :

Overseas Customers

 

v      Covendisa, Venezuela

v      Ata Muhammad Enterprises, Pakistan

v      Shekat Taulidi Yadaki Motors, Iran

v      Technostar S.r.l., Italy

v      Paradowsey AMP S.J., Poland

v      Edival S. A., Argentina

v      Ivam S.r.l., Italy

v      Supar Supap Ve Parca Sanayi Ticaret A.S., Turkey

v      Federal Mogul Valves (Pty) Limited, South Africa

v      Supsan Motor, Turka

v      Japan

v      Beslin, Germany

v      Gertiz, Germany

v      Canada

v      Enpar Limited, UK

 

Valve Steel Customers

 

v      Rane Engine Valves Limited, Chennai and Medchal

v      Kar Mobile Limited, Bangalore and Tumkur

v      Shriram Pistons and Rings Limited, Ghaziabad

v      Kirloskar Oil Engines Limited, Nashik

v      Duro Valves India (Private) Limited, Aurangabad

v      Vikram Valves and General Industries, Rajkot

v      Automotive Valves, Kad

v      TRW

 

Special Steel Customers

 

v      Motor Industries Company Limited, Bangalore and Jaipur

v      Shriram Fuel Injection Industries, Hyderbad

v      Atlas Copco India Limited, Pune

 

High Spped Steel Customers

 

v      Miranda Tools, Ankleshwar

v      Forbes Gohak Limited, Mumbai

v      I.T.M. (Zenith Limited) Mumbai

 

Forging Quality Ingot Customers

 

v      Bay Forge Limited

v      Bharat Forge Limited

v      Rajkumar Forge Limited

v      Choudhary Hammer

v      Echjay Forging

v      Pushpaman Forgings

v      Achme Forgings

 

Forged Products Customers

 

v      Manugraph India Limited

v      The Printer House Limited

v      Triveni Engg, Mysore

v      Flender

v      Eleon

 

 

No. of Employees :

 (Approximately)

 

 

Bankers :

·         State Bank of India

Commercial Branch, 6th Floor, Palm Court, Mahrauli Gurgaon Road, Gurgaon – 122001, Haryana, India

 

·         ICICI Limited

 

 

Facilities :

Secured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

 

 

 

Rupee term loans banks

470.413 (A)

340.921

Working capital loans banks

805.145 (B)

754.743

Loans taken for vehicles

4.862 (C)

2.397

 

 

 

Total

 

1280.420

1098.061

 

NOTE:

 

(A) a) Rupee Term Loan and Foreign Currency Term Loan from Bank are secured by way of an equitable mortgage on immovable properties both present and future and by a first charge by way of hypothecation of all the Company's movables (save and except book debts) including machinery, machinery spares, tools and accessories, present and future, subject to prior charges created in favour of Company's Bankers on the stock of raw material, goods in process, finished and manufactured goods together with components and spares towards security for working capital facilities. The Working Capital Advances, Rupee Term Loans and Foreign Currency Term Loan are also secured by the guarantees of Mr. M K Gupta, Mr. Samir Gupta and Mr. Abhishek Gupta Directors of the Company. Furthermore, Mr. M K Gupta, Mrs. Rekha Gupta and Mr. Samir Gupta Directors of the company have also pledged their Equity Shares holding of 4.530 Millions, 6.600 Millions and 10.000 Millions shares of the Company, respectively, with the Bank as collateral security. Further 0.510 Millions Preference Shares of the company held in the name of Juhi Leasing and Finance Limited have also pledged with the bank on the request of Board of Directors of the company.

 

(B) Working Capital Advances from Bank are secured by hypothecation of Company's stocks and book-debts, present and future and by a second charge on all the immovable properties of the company including plant and machinery spares, tools and accessories and other movables both present and future.

 

(C) Vehicle Loans are secured by hypothecation of specific vehicles purchased.

 

Unsecured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Loans directors

11.229

38.787

Deposits related parties

293.751

271.120

 

 

 

Total

 

304.980

309.907

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P D Mittal and Company

Chartered Accountants

Address :

70, Daryaganj, New Delhi – 110002, India

PAN No.:

AAGFP0579D

 

 

Holding/ Subsidiaries :

·         Star Wire (India) Engineering Limited

 

 

Enterprises over which Management Personnel and their relatives are able to exercise significant influence:

·         Supreme Comm. Enterprises Limited

·         Eagle International Limited

·         Inter Global Steels Private Limited

·         Mahawar Iron Stores Private Limited

·         Nipin Steel Private Limited

·         Star Wire Elect Private Limited

·         Star Wire (India) Biomass Private Limited

·         Super Sigma Alloy and Forgings Private Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 30.09.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

28720250

Equity Shares

Rs.10/- each

Rs.287.203 Millions

 

 

 

 

 

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.1/- each

Rs.190.000 Millions

6000000

Preference Shares

Rs.10/- each

Rs.60.000 Millions

 

 

 

 

 

Total

 

Rs.250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

161797500

Equity Shares

Rs.1/- each

Rs.161.798 Millions

2540500

Preference Shares

Rs.10/- each

Rs.25.405 Millions

 

 

 

 

 

Total

 

Rs.187.203 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

187.203

137.203

137.203

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1347.727

1122.428

924.569

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1534.930

1259.631

1061.772

LOAN FUNDS

 

 

 

1] Secured Loans

1280.420

1098.061

888.568

2] Unsecured Loans

304.980

309.907

248.744

TOTAL BORROWING

1585.400

1407.968

1137.312

DEFERRED TAX LIABILITIES

108.214

68.315

28.154

 

 

 

 

TOTAL

3228.544

2735.914

2227.238

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1533.461

1223.544

1109.100

Capital work-in-progress

208.325

227.191

0.000

 

 

 

 

INVESTMENT

7.628

2.429

0.429

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

633.783

665.427

553.440

 

Sundry Debtors

834.514

633.573

686.399

 

Cash & Bank Balances

65.466

51.699

44.216

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

217.587

153.119

95.033

Total Current Assets

1751.350

1503.818

1379.088

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

156.300

76.399

94.618

 

Other Current Liabilities

96.150

130.660

166.839

 

Provisions

19.985

14.269

0.000

Total Current Liabilities

272.435

221.328

261.457

Net Current Assets

1478.915

1282.490

1117.631

 

 

 

 

MISCELLANEOUS EXPENSES

0.215

0.260

0.078

 

 

 

 

TOTAL

3228.544

2735.914

2227.238

 


                                                                                                 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

3430.665

2787.013

3202.269

 

 

Other Income

54.775

59.054

122.780

 

 

TOTAL                                        (A)

3485.440

2846.067

3325.049

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

2123.594

1702.508

2611.368

 

 

Manufacturing service costs

340.135

280.888

230.393

 

 

Employee related expenses

318.327

260.387

47.316

 

 

Administrative selling other expenses

133.048

132.504

64.723

 

 

TOTAL                                        (B)

2915.104

2376.287

2953.800

 

 

 

 

 

Less

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

570.336

469.780

371.249

 

 

 

 

 

Less

FINANCIAL EXPENSES                        (D)

125.290

92.385

134.203

 

 

 

 

 

 

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

445.046

377.395

237.046

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    (F)

77.861

60.107

56.275

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

367.185

317.288

180.771

 

 

 

 

 

Less

TAX                                                                 (H)

121.900

105.161

57.104

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

245.285

212.127

123.667

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

519.507

331.648

228.050

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Preferences Shares

1.016

1.016

1.016

 

 

Equity Shares

16.180

11.180

11.180

 

 

Dividend Distribution Tax

2.790

2.073

2.073

 

 

Transfer to General Reserve

10.000

10.000

5.800

 

BALANCE CARRIED TO THE B/S

734.806

519.506

331.648

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

647.088

653.691

872.218

 

TOTAL EARNINGS

647.088

653.691

872.218

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

125.114

106.167

102.148

 

 

Capital Goods

55.815

10.017

120.087

 

TOTAL IMPORTS

180.929

116.184

222.235

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

1.96

1.89

1.10

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

7.04

7.45

3.72

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

10.70

11.38

5.65

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

11.17

11.63

7.27

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.23

0.25

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.21

1.29

1.32

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

6.43

6.79

5.27

 

 


 

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

Yes

17]

Major suppliers

No

18]

Major customers

Yes

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

 

NOTE:

 

The Registered office of the company has been shifted from A-11, Nizammuddin West ND-13, New Delhi, India, to the present address w.e.f. 01.06.2007.

 

 

PERFORMANCE OF THE COMPANY:

 

During the year, the company has recorded highest ever revenue and profits amidst challenging and volatile market conditions. Revenue earned and net profit after tax in the year is increased by 22.46% and 15.63 % as compared to previous year.

 

 

FUTURE OUTLOOK:

 

The Company is looking forward to do better operations during the current financial year as compared to the last year in view of good order booking for high value castings for power sectors and special steel materials for Nuclear Power Plants and for other applications.

 

Furthermore, Company has taken steps to increase its production capacity. Accordingly, during the second half of the year it will install one 20 MT capacity Electric Arc Furnace and one 25 MT capacity Laddle Refining Furnace to double its melting capacity. Company is also investing in other matching fixed assets to have better sales and profitability in the current financial year.

 

 

EXPANSION:

 

The Company has taken up major expansion plan for putting up additional plant and machineries toward forward integration for the manufacture of high valued sophisticated special steel used in Aerospace and Aviation Sector, Power Sector, Nuclear Power Plants and for defence applications. The project is spread over the period of two years and it is expected that after the completion of the project, the revenue of the company will take leap jump.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

 

a. Bills drawn on customers and discounted with banks at close of the year amounting to Rs.9.988 Millions (Rs. 27.780 Millions).

 

b. Demand Orders of Central Excise Authorities disputed by the Company amounting to Rs.32.188 Millions (Rs. 31.275 Millions).

 

c. The company has not deposited Local Area Development Tax (LADT) of Rs 6.474 Millions from 2004-05 to 2007-08 imposed by Haryana State Government as it was held by the Hon’ble Supreme Court of India vide its order dated 30.10.2009 detail as under:

 

“There will be no recovery of tax till further orders of this Court, subject to each and every assessed in this group of cases giving an undertaking to the State and to this Court that, in the event of their ultimately losing the matter, they shall pay the amount due with interest at the rate that may be fixed by this Court at the time of final hearing of the matters.”

 

d. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances), as certified by the management Rs.126.612 Millions (Rs.45.500 Millions).

 

e. Bank Guarantees outstanding at the close of the year amounting to Rs.98.839 Millions (Rs.81.038 Millions).

 

f. Letter of credit outstanding at the close of the year amounting to Rs. 148.038 Millions (Rs 79.826 Millions).

 

 

FORM 8

 

This form is for

Modification of charge

Charge identification number of the modified 

80007937

Corporate identity number of the company

U27109DL1963PLC117600

Name of the company

STAR WIRE (INDIA) LIMITED

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

35, Link Road, 2nd Floor, Lajpat Nagar-III, Delhi – 110024, India

rekhacs@rediffmail.com

Type of charge

Immovable Property

Book Debts

Movable Property

Floating Charge

Others: Current and Fixed Assets

Particular of charge holder

State Bank of India

Commercial Branch , 6th Floor, Palm Court ,Mehrauli Gurgaon Road, Gurgaon – 122001, Haryana, India

dileepyadav@sbi.co.in

Nature of description of the instrument creating or modifying the charge

C-2A (Supplemental Agreement of Hypothecation of Goods & Assets for increase in the overall Limit)

C-5 (Letter regarding the Grant of Individual Limits within the overall limit).

Date of instrument Creating the charge

26.09.2012

Amount secured by the charge

Rs.2216.800 Millions

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

Rate of Interest

FBWC:-BR+2.50% presently effective @12.25% p.a ,TL(I),(II)&(III) :-@11.75% p.a.,TL(IV):-BR+2.65% presently effective @12.40% p.a.,SLC WC :- BR +3.50% presently effective @13.25% p.a  .

 

Terms of Repayment

Working capital :- on demand

TLs Existing 1,2 & 3:- as per existing repayment schedule

Term Loan(IV) :- In 20 quarterly installment  {8 installment of Rs.12.100 Millions each next 11 installment of Rs.24.300 Millions each and last installment of Rs.23.500 Millions}

 

Margin

Raw-materials - 25%

Stock in process -30%

Finished goods -30%

stores & spares -30%

Book-debts -35% ( cover period 120 days for Govt. &90 days for others)

EPC/PCFC -25%

LC & BG -5%

 

Extent and Operation of the charge

First pari passu charge on entire current assets.

First charge on entire fixed assets barring financed by SCB.

Credit Facilities :-

CC ( Stocks ) Rs.1000.000 Millions

CC ( Book-debts ) Rs.(350.000) Millions

EPC/PCFC Rs.(300.000) Millions 

FBP/FBD Rs.(110.000) Millions

TLs Existing Rs.23.300 Millions +138.500 Millions +74.400 Millions = 236.200 Millions

TL (IV) -Rs.387.600 Millions

FLC/LC/buyers credit Rs.250.000 Millions

 

Others

SLC  Rs.50.000 Millions

 BG Rs.180.000 Millions

Forward contract Rs.113.000 Millions

Total 2216.800 Millions 

 

Interest on will be charge on monthly basis and interest on term loan will be charged as and when due.

Short particulars of the property charged

Working Capital :-First pari passu charge with other WC lenders on all the current assets of the company includes hypothecation on the co's entire stocks of raw materials, stores, spares, stocks in process, finished goods etc. lying/ kept / stored in factory/godowns/ elsewhere and including those in transit , book-debts / receivables both present and future .

 

Extension of charge over fixed assets of the company including EM of factory land and building measuring 106 kanals,4 biswas and 4 biswanis (54361 sq mtrs ) at plot No.21/4 Delhi

 

Mathura Road Ballabhgarh and Extension of charge over fixed assets of the company at Village Chhainsa barring assets financed by Standard Chartered Bank.

 

Term Loans:-First charge over the entire fixed assets, present and future including Equitable mortgage of factory land and building at plot No.21/4 Delhi Mathura Road Ballabgarh measuring 106 kanals,4 biswas and 4 biswanis (54361 sq mtrs ).

 

First charge over the fixed assets present and future including EM of factory L&B measuring 32.756 acres in the name of the company situated at village Chainsa, Distt Ballabgarh. Extension of charge on entire current assets of the company both present and future.

Particulars of the present modification 

Total credit facilities sanctioned to the company modified from Rs.2693.300 Millions to Rs.2216.800 Millions.

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Factory

·         Plant and Machinery

·         Other Equipments

·         Furniture and Fixtures

·         Vehicles

 

 

WEBSITE DETAILS:

 

PROFILE:

 

Subject is one of the Mini Steel Plant is engaged in the manufacturing of Alloy Steels, Stainless Steel and Special Steels for diversified engineering application in shape of castings, forging and rolled products. Plant is fully equipped with modern equipments and testing facilities which have created confidence and ability for manufacturing various sophisticated grades of steel conforming to international and National standards.


It has its own research and development centre to facilitate the manufacturing activities and also catering to engineering and manufacturing industries for failure analysis and other analytical activities.


The plant is situated in Ballabgarh, about 37 KMs from Delhi - Capital of India on Main Mathura Road (NH No. 2). The location is at easy approach by Air, Rail and Road.

 

 

 

 


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.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

6

--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

 

49

 

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.