MIRA INFORM REPORT

 

 

Report Date :

15.09.2012

 

IDENTIFICATION DETAILS

 

Name :

BGR MINING AND INFRA PRIVATE LIMITED

 

 

Registered Office :

16-II-380-B, Srinivasa, Agraharam, Nellore – 524002, Andhra Pradesh

 

 

Country :

India

 

 

Date of Incorporation :

18.04.2011

 

 

Com. Reg. No.:

073928

 

 

Capital Investment/ Paid-up Capital:

Rs.450.000 Millions

 

 

CIN No.:

[Company Identification No.]

U45400AP2011PTC073928

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDB04910D

 

 

PAN No.:

[Permanent Account No.]

AAECB5497R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Contractor of Over Burden Removal and Coal Extraction in Coal Mining

 

 

No. of Employees:

1500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 180000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a successor of B. Giriraja Pathi Reddy, a partnership concern started in the year 1988.

 

Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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.

 

INFORMATION PARTED BY

 

Name :

Mr. D Venkaram Reddy

Designation :

Finance Manager

Contact No.:

91-9177612060

Date :

13.09.2012

 

 

LOCATIONS

 

Registered Office :

16-II-380-B, Srinivasa, Agraharam, Nellore – 524002, Andhra Pradesh, India

Tel. No.:

91-240-2307023

Fax No.:

91-240-2307023

E-Mail :

Ho.hyd@bgrmining.com

cvreddy_associates@hotmail.com

Website :

www.bgrmining.com

Area :

1000sq.fts

Location :

Owned

 

 

Factory/Corporate Office :

8-2-596/R, Road No 10, Banjarahills Nearkarvey Junction, Hyderabad – 500034, Andhra Pradesh, India

Tel. No.:

91-40-23351932

Fax No.:

91-40-23351931

 

 

 

 

DIRECTORS

 

 

Name :

Mr. Bathina Umapathi Reddy

Designation :

Director

Address :

16/ II - 380b, Srinivasa Agraharam, Stonehousepeta, Nellore – 524003, Andhra Pradesh, India 

Date of Birth/Age :

01.06.1959

Date of Appointment:

18.04.2011

Din No.:

02202915

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

U55101AP2008PTC059882

BG REDDY HOTELS PRIVATE LIMITED

Managing director

22/09/2008

26/06/2008

-

Active

NO

2

U45400AP2011PTC073928

BGR MINING & INFRA PRIVATE LIMITED

Managing director

18/04/2011

18/04/2011

-

Active

NO

 

 

Name :

Mr. Induru Sudhakarareddy

Designation :

Director

Address :

24/II/424-I, Saraswathi Nagar, Dargamitta, Nellore 524003, Andhra Pradesh, India

Date of Birth/Age :

05.08.1954

Date of Appointment:

18.04.2011

Din No.:

02202931

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

U55101AP2008PTC059882

BG REDDY HOTELS PRIVATE LIMITED

Director

26/06/2008

26/06/2008

-

Active

NO

2

U45400AP2011PTC073928

BGR MINING & INFRA PRIVATE LIMITED

Director

18/04/2011

18/04/2011

-

Active

NO

 

 

Name :

Mr. Bathina Girijapathi Reddy

Designation :

Director

Address :

24/383-21D, Sujathamma Colony, Dargamitta, Nellore -524003, Andhra Pradesh, India 

Date of Birth/Age :

10.06.1956

Date of Appointment:

18.04.2011

Din No.:

02292691

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

U55101AP2008PTC059882

BG REDDY HOTELS PRIVATE LIMITED

Director

08/09/2008

08/09/2008

-

Active

NO

2

U45400AP2011PTC073928

BGR MINING & INFRA PRIVATE LIMITED

Director

18/04/2011

18/04/2011

-

Active

NO

 

 

 

 

KEY EXECUTIVES

 

Name :

Mr. D Venkaram Reddy

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

 

AS ON 11.04.2011

 

Names of Shareholders

 

No. of Shares

Bathina Girijapathi Reddy

 

2700000

Bathina Umapathi Reddy

 

10800000

Sudhakar Reddy

 

6750000

V Raghurami Reddy

 

4500000

Vijayalakshmi B

 

4050000

Rohit Reddy Bathina

 

4050000

Bathina Karthik

 

4050000

Deepak induru

 

4050000

Dheeraj Induru

 

4050000

Total

 

45000000

 

 

BUSINESS DETAILS

 

Line of Business :

Contractor of Over Burden Removal and Coal Extraction in Coal Mining

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

1500 (Approximately)

 

 

Bankers :

·         Syndicate Bank, G N T Road, Dargamitta Branch, Nellore - 524003, Andhra Pradesh, India

·         Bank of Baroda, # 3-6-262/2 Corporate Financial service Branch, Tirumala Estates, 3rd  Himayat Nagar  Hyderabad – 500029, Andhra Pradesh, India

·         Kotak Mahindra Bank, Hyderabad

 

 

Financial Institution:

·         Shriram Equipment Finance  Company Limited, Mookambika Complex, 3rd Floor, No.4, Lady Desika Road, Mylapore, Chennai – 600004,Tamilnadu, India

·         L and T Finance Limited, L and T House, Ballard Estate,, Mumbai - 400001, Maharashtra, India

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sunder Rajarao and Company

Chartered Accountant

 

 

CAPITAL STRUCTURE

 

BGR MINING AND INFRA PRIVATE LIMITED

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

45000000

Equity Shares

Rs.10/- each

Rs.450.000 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

B. GIRIRAJA PATHI REDDY (PARTNERSHIP CONCERN)

 

Particulars

 

 

31.03.2012

31.03.2011

Sales Turnover (Approximately)

 

1750.000

2200.000

 

 

 

 

 

 

BGR MINING AND INFRA PRIVATE LIMITED

 

Expected Sales (2012-2013): Rs.3000.000 Millions

 

The above information has been parted by D Venkaram Reddy (Finance Manager)

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

Available in Report [Yes/No]

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the firm

Yes

Premises details

Yes

Type of Business

Yes

Line of Business

Yes

Promoters background

Yes

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of contact person

Yes

Turnover of firm for last two years

Yes

Profitability for last three years

No

Reasons for variation <> 20%

-

Estimation for coming financial year

Yes

Capital the business

Yes

Details of sister concerns

No

Major Suppliers

No

Major Customers

No

Payment Terms

Yes

Export / Import Details [If Applicable]

No

Market Information

-

Litigations that the firm / promoter involved in

-

Banking Details

Yes

Banking Facility Details

No

Conduct of the banking account

-

Buyer visit details

-

Financials, if provided

No

Incorporation details, if applicable

Yes

Last accounts filed at ROC

No

Major Shareholders, if applicable

Yes

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

Yes

PAN of Proprietor/Partner/Director, if available

No

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

No

External Agency Rating, if available

No

 

NOTE:

 

The registered office address of the company has been shifted from D No 8-2-596/R, Road No 10, Banjarahills Nearkarvey Junction, Hyderabad – 500034, Andhra Pradesh, India to present address w.e.f. 25.06.2011

 

FORM 8

 

Corporate identity number of the company

U45400AP2011PTC073928

Name of the company

BGR MINING AND INFRA PRIVATE LIMITED

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

16-II-380-B, Srinivasa Agraharam, Nellore – 524002, Andhra Pradesh, India

Email: cvreddy_associates@hotmail.com

This form is for

Creation of charge

Type of charge

Book debts

Others

Particular of charge holder

U65910TN2009PLC073914

Shriram Equipment Finance  Company Limited, Mookambika Complex, 3rd Floor, No.4, Lady Desika Road, Mylapore, Chennai – 600004,Tamilnadu, India

Email: vivekmadhukar.a@stfc.in

Nature of instrument creating charge

Loan Cum Hypothecation Agreements dated 31st July, 2012.

Date of instrument Creating the charge

31.07.2012

Amount secured by the charge

Rs.45.500 Millions

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

Rate of interest

14.00%p.a.

 

Term of Payment:

1st EMI of Rs.106179/-, 33 EMI of Rs.0.087 Million and last i.e. 35th EMI of Rs.0.087 Million - for 15 assets and 1st EMI of Rs.0.340 Million, 33 EMI of Rs.0.280 Million and last i.e. 35th EMI of Rs.0.280 Million - for 1 asset.

 

Margin

17% p.a. Margin for 15 assets and 27% p.a. Margin for 1 asset.

 

Extent and operation of the charge

The Charge is operative to the extent of Rs.45.500 Million

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

Excavator- ZX670LCH- TELCON- for 1 asset

 

TIPPER- 4840K- MERCEBENZ- for 15 assets

 

AS PER WEB SITE DETAILS

 

PROFILE

 

Established in 1988, BGR Mining and Infra Private Limited made its presence in the sphere of Over Burden Removal and Coal extraction in coal mining. In all these years BGR made an impressive growth that is hinged on its philosophy and commitment towards quality and value addition to the client's business.


The company's financial turnover as well as mineral excavation have witnessed tremendous growth over the years through optimum utilization of resources, cost controlling measures, inventory management and asset up-gradation.

 

Over the years BGR has emerged as one of the leading mining excavation companies in the country. The major excavation works executed and in progress by BGR are over burden removal for coal mines, coal excavation and extraction for all public sector enterprises like Singareni Collieries Company Limited, subsidiaries of Coal India Limited. Repeated orders from these reputed firms outsourcing their mining requirements to BGR are testimony for its reliability in excavation and efficiency in operations. BGR is one of the pioneering entrepreneurs to introduce high capacity excavator dumper combination in OB removal operations

 

 

Headquartered in Hyderabad, BGR has around 2,000 employees spread across the country.
BGR is now geared up to the next phase of significant growth by diversifying into the excavation/extraction of other major minerals such as Iron Ore, Bauxite, Limestone


to cater to the requirements of Steel, Aluminum, Sponge Iron and Cement industries.

 

HISTORY

 

Apioneer in the open cast coal mining, B. Girijapathi Reddy and Company, was established in the year 1988. The company believes in high standards of quality in professional mining operations and it is this philosophy that has continued to foster the creation of a strong resources group that is characterized by BGR today.

The company has the record of successfully executing several civil engineering (irrigation) works and open cast coal mining (excavation of Over Burden and Coal).

 

His visionary leadership of more than two decades and experience in Contract Management and
Administration mining works is steering the company into the next level of mining

 

ACHIEVEMENTS

 

BGR has executed several OB removal works in Coal India Limited and Singareni Collieries Company Limited, Kothagudem, A.P. for the past two decades and executed several millions of cubic meters of over burden removal and coal extraction

 

Diligent planning led to developing virgin mines into production of coal within a period of 3 to 6 months from the award of work.


Progressive mechanization and modernization of mining operation have paid rich dividends to clients and other stakeholders. All past contracts and projects have been delivered on time and on budget.

 

For the financial year ended 31st March 2010, about 62 million Cum of over burden removal and coal extraction. For 2010-11, they are targeting extraction and removal of 100 million Cum.


The skilled manpower and scientific business practices have been adding to the company's productivity and reliability.

Virgin mines in Western Coal Fields Limited (Districts of Chandrapur and Nagpur) and Singareni Collieries Company Limited were brought into coal production - at times before the given timeframe. This helped the companies to exceed their targets, profits and profitability.

 

OPERATIONS

 

The depth of their company's expertise enhances its ability to efficiently execute operations in excavation works. With vast experience BGR Mining and Infra Private Limited has established a clear competitive edge over other players in the market place. They focus on achieving operational efficiencies by taking utmost care in handling every aspect of mine design, operations planning, equipment maintenance which finally lead to achieving the targeted quantities well before time and completion of projects in a time bound manner.



They are at the forefront of advanced mineral excavation technologies. They are equipped with sophisticated and technologically advanced machinery that enables us to excavate and develop virgin mines in a more cost-effective manner and on schedule.


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.54.73

UK Pound

1

Rs.88.61

Euro

1

Rs.71.34

 

 

INFORMATION DETAILS

 

 

Information Gathered by :

SBA

 

 

Report Prepared by :

BYI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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.