MIRA INFORM REPORT

 

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

VICTORIA STEEL ENTERPRISES LIMITED

 

 

Registered Office :

Premises No.3, 2nd Floor, Preeth Complex, Opposite Mch Market, Ameerpet, Hyderabad – 500016, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

16.02.2000

 

 

Com. Reg. No.:

01-033585

 

 

Capital Investment/ Paid-up Capital:

Rs.26.930 Millions

 

 

CIN No.:

[Company Identification No.]

U27109A2000PLC033585

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDV03723G

 

 

PAN No.:

[Permanent Account No.]

AABCV5089Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Metal Service Centers and Other Metal Merchant Wholesalers

 

 

No. of Employees:

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1951000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Latest financial of the company are missing from the government department. Form the previous year 2010 it seems that profitability of the company appears to be low. However, trade relations are reported as 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

 

 

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 :

Premises No.3, 2nd Floor, Preeth Complex, Opposite Mch Market, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Tel. No.:

91-40-65976954

Fax No.:

Not Available

E-Mail :

victoriasteel@gmail.com

 

 

DIRECTORS

 

As on 29.09.2011

 

 

 

Name :

Mr. Sriniwas Reddy Katmula

Designation :

Director

Address :

8-4-379/4/368/5/1, Borabanda, HRR Puram, Hyderabad – 500018, Andhra Pradesh, India

Date of Birth/Age :

11.10.1975

Date of Appointment :

15.06.2007

Din No.:

01641417

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

U27109AP2000PLC033585

VICTORIA STEEL ENTERPRISES LIMITED

Director

29/09/2007

15/06/2007

-

Active

NO

2

U72200AP1994PLC017626

INTERNET COMMUNICATIONS INDIA LIMITED

Additional director

20/06/2007

20/06/2007

-

Strike off

NO

3

U74140AP2000PTC033407

SWAIN FINANCE AND TRADING PRIVATE LIMITED

Director

25/07/2008

25/07/2008

-

Active

NO

4

L18100AP1981PLC003199

SAMRAT SPINNERS LIMITED

Additional director

06/08/2008

06/08/2008

-

Dormant

NO

5

U24239AP2000PLC035648

PLATINA HEALTH TOURISM LIMITED

Additional director

03/08/2009

03/08/2009

-

Under Process of Striking off

NO

6

U67190AP2011PTC072907

CHEERFUL SECURITIES & TRADING PRIVATE LIMITED

Director

24/02/2011

24/02/2011

-

Active

NO

 

 

Name :

Mr. Atluri Subba Rao

Designation :

Director

Address :

#307, MLAs MPs Colony, Road No. 10C, Jubliee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

15.09.1955

Date of Appointment :

10.08.2012

Din No.:

00142803

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

U74210AP1988PTC008848

HYDERABAD DEVELOPERS PVT LTD.

Director

14/07/1988

14/07/1988

-

Strike off

NO

2

U14101KA1991PTC012102

APOLLO GRANITES (INDIA) PRIVATE LIMITED

Director

08/07/1991

08/07/1991

-

Dormant

NO

3

U24222KA1991PTC012448

GARDEN CITY RESORTS PRIVATE LIMITED

Director

15/01/2001

15/01/2001

-

Dormant

NO

4

U05005AP1983PLC004128

NEKKANTI SEA FOODS LTD.

Director

01/04/2006

01/04/2006

01/01/2010

Active

NO

5

U27109AP2000PLC033585

VICTORIA STEEL ENTERPRISES LIMITED

Additional director

10/08/2012

10/08/2012

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2011

 

Names of Shareholders

 

No. of Shares

Paturi Sriniwas

 

10

G.Samba Siva Rao

 

10

Rayapati Krishnaiar

 

10

Rayapati Archana

 

10

Rayapati Padmaja

 

10

Mupparaju Samba Siva Rao

 

10

Mupparaju Sasi

 

10

Prime Infoinvest Limited, Hyderabad

 

450550

Swain Finance and Trading Private Limited, Hyderabad

 

158700

M.H. Reddy

 

15000

G.B. Trading and Investment Private Limited, Hyderabad

 

368000

Bhagyanagar Invest,ent and Trading Private Limited, Hyderabad

 

455335

Golkonda Finance and Trading Private Limited, Hyderabad

 

494300

Infotech Infin and Trading Private Limited, Hyderabad

 

400000

Rama Krishna Varma

 

60323

Ganga Industrial Corporation Limited, Hyderabad

 

290765

Total

 

2693043

 

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

 

Category

 

Percentage

 

 

 

Bodies corporate

 

99.99

Directors or relatives of directors

 

0.01

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Metal Service Centers and Other Metal Merchant Wholesalers

 

 

 

 

 

 

GENERAL INFORMATION

 

 

 

No. of Employees :

Not Available

 

 

Bankers :

Allahabad Bank, Himayatnagar, Branch, Hyderabad – 500029, Andhra Pradesh, India

 

 

Facilities :

Rs. In Millions

Secured Loans

As on 31.03.2010

Rs. in millions

As on 31.03.2009

Rs. in millions

Cash credit limit from Allahabad Bank, Himayatnagar, Branch,

Hyderabad against mortgage of property of Smt. Dhanlaxmi and further secured by the personnel guarantees of all the directors

14.227

14.769

Hire purchase loans secured against hypothecation of vehicles

0.403

0.782

 

14.630

15.551

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

G.V. Suryanarayana Murthi

Chartered Accountant

Address :

B-166, Sanjeeva Reddy Nagar Colony, Hyderabad – 500038, Andhra Pradesh, India

Tell No.:

91-44-66828975

Mobile No.:

91-9866644480

Pan No.:

AJDPM5800C

 

 

 

 

CAPITAL STRUCTURE

 

As on 29.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000000

Equity Shares

Rs.10/- each

Rs.30.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2693043

Equity Shares

Rs.10/- each

Rs.26.930 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

26.930

10.530

10.530

2] Share Application Money

134.562

134.562

0.000

3] Reserves & Surplus

326.359

94.933

93.875

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

487.851

240.025

104.405

LOAN FUNDS

 

 

 

1] Secured Loans

14.630

15.551

16.248

2] Unsecured Loans

255.000

260.000

50.000

TOTAL BORROWING

269.63

275.551

66.248

DEFERRED TAX LIABILITIES

0.711

0.826

0.695

 

 

 

 

TOTAL

758.192

516.402

171.348

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5.404

6.520

6.475

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

6.088

6.837

6.837

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

53.518

53.518

14.003

 

Sundry Debtors

912.744

559.455

122.281

 

Cash & Bank Balances

82.865

2.075

0.548

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

1870.419

1368.452

437.873

Total Current Assets

2919.546

1983.500

574.705

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

1904.971

1145.943

230.353

 

Other Current Liabilities

266.950

334.114

186.055

 

Provisions

0.933

0.411

0.281

Total Current Liabilities

2172.854

1480.468

416.689

Net Current Assets

746.692

503.032

158.016

 

 

 

 

MISCELLANEOUS EXPENSES

0.008

0.013

0.020

 

 

 

 

TOTAL

758.192

516.402

171.348

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

 

31.03.2008

 

SALES

 

 

 

 

 

Income

6148.941

4001.273

4242.905

 

 

Other Income

0.006

0.000

0.291

 

 

TOTAL                                    

6148.947

4001.273

4243.196

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases

6102.177

4011.201

4218.637

 

 

Selling and Administrative Expenses

42.961

26.838

12.185

 

 

Preliminary Expenses Written off

0.001

0.001

0.001

 

 

Pre-operative Expenses written off

0.005

0.005

0.005

 

 

Increase / Decrease in stock

0.000

(39.515)

10.131

 

 

TOTAL                                    

6145.144

3998.530

4240.959

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

3.803

2743

2.237

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

1.159

1.143

0.737

 

 

 

 

 

 

PROFIT BEFORE TAX

2.644

1.600

1.500

 

 

 

 

 

Less

TAX                                                                 

0.933

0.290

0.281

 

 

 

 

 

 

PROFIT AFTER TAX

1.711

1.190

1.219

 

 

 

 

 

Less

PROVISION FOR DEFERRED TAX

0.000

0.132

0.224

 

 

 

 

 

Add

PROVISION FOR DEFERRED TAX ASSET

0.116

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4.664

3.606

2.611

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

6.491

4.664

3.606

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

129.641

Nil

Nil

 

 

 

 

 

 

IMPORTS

 126.052

Nil

Nil

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

0.64

1.13

1.16

 

Diluted

1.44

1.13

1.16

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

0.03

0.03

0.03

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.04

0.04

0.04

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.09

0.08

0.26

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.01

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

5.01

7.32

4.63

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.34

1.34

1.38

 

 

 

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

No

Type of Business

Yes

Line of Business

Yes

Promoters background

Yes

No. of Employees

Yes

Name of Person Contacted

No

Designation of contact person

No

Turnover of firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

-

Estimation for coming financial year

No

Capital the business

Yes

Details of sister concerns

No

Major Suppliers

No

Major Customers

No

Payment Terms

No

Export / Import Details [If Applicable]

No

Market Information

-

Litigations that the firm / promoter involved in

-

Banking Details

Yes

Banking Facility Details

Yes

Conduct of the banking account

-

Buyer visit details

-

Financials, if provided

Yes

Incorporation details, if applicable

Yes

Last accounts filed at ROC

Yes

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 : Registered Office of the company has been shifted from 50-1-40/13, APSEB Colony, Seethammadhara, Vishakapatnam to the present address w.e.f. 19.03.2005

 

COMPANY PERFORMANCE:

During the period, the company has achieved a turnover of Rs.6148.941 millions (Previous Year Rs.4001.273 million) and earned a net profit of Rs1.710. million (Previous Year Rs. 1.189 million) after providing for all expenses. The directors are hopeful to project better financial results in the forth coming years.

 

FIXED ASSETS:

  • Computer
  • Office Equipment
  • 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.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

27

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.