MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

NAVA KARNATAKA STEELS PRIVATE LIMITED

 

 

Registered Office :

Bhuwalka Centre, No. 71, 3rd Cross, Residency Road, Bangalore-560025, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.09.1972

 

 

Com. Reg. No.:

08-002239

 

 

Capital Investment / Paid-up Capital :

Rs.65.798 Millions

 

 

CIN No.:

[Company Identification No.]

U27100KA1972PTC002239

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of TMP Bars.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1870000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

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

 

As per previous year’s record, the profitability of the company seems to be low. The external borrowing seems to be increasing over a year.

 

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

 

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.

 

 

LOCATIONS

 

Registered Office :

Bhuwalka Centre, No. 71, 3rd Cross, Residency Road, Bangalore-560025, Karnataka, India

Tel. No.:

91-80-25599797

Fax No.:

91-80-42427000/25596030/25599090/41123010

E-Mail :

bsil@bhuwalkagroup.com

Website :

http://www.bhuwalkagroup.com

 

 

Factory :

Bisilahally Village, Ananthpur Road, Bellary District, Karnataka, India

Tel No.:

91-8392-260738/260739

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Suresh Kumar Bhuwalka

Designation :

Director

Address :

No. 2996, 12th A Main, 5th Cross, Hal II Stage, Indiranagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

01.11.1950

Date of Appointment :

25.03.1991

Din No.:

00092058

 

 

Name :

Mr. Ajay Kumar Bhuwalka

Designation :

Whole Time Director

Address :

No. 2996, 12th A Main, 5th Cross, Hal II Stage, Indiranagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

08.02.1976

Date of Appointment :

14.08.2001

Din No.:

00092042

 

 

Name :

Mr. Ankit Bhuwalka

Designation :

Whole Time Director

Address :

No. 2996, 12th A Main, 5th Cross, Hal II Stage, Indiranagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

02.09.1981

Date of Appointment :

29.06.2004

Din No.:

00092052

 

 

Name :

Mr. Kondaiah Chinna Kodiganti

Designation :

Director

Address :

Flat No. 121, The Embassy, 15 Ali Askar Road, Bangalore-560052, Karnataka, India

Date of Birth/Age :

10.07.1950

Date of Appointment :

29.11.2005

Din No.:

00546478

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

 

No. of Shares

Suresh Kumar Bhuwalka

 

49675

Ajay Kumar Bhuwalka

 

7800

Indira Devi Bhuwalka

 

6323

Ankit Bhuwalka

 

2000

 

 

 

TOTAL

 

65798

 

AS ON 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of TMP Bars.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Indian Overseas Bank, Bangalore City Branch, No. 7, Srisailam, 1st Main Road, Gandhinagar, Bangalore-560009, Karnataka, India

 

 

Facilities :

Secured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Rupee term loans banks

50.917

70.432

Working capital loans banks

281.568

62.984

TOTAL

332.485

133.416

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

T C Goud and Company

Chartered Accountants

Address :

HKR Petrol Bunk Building, Bellary-583101, Karnataka, India

PAN No:

AAAFT6236F

 

 

Other Related Parties :

  • Bhuwalka Ispat Limited
  • Bhuwalka Metal Industries Private Limited
  • Bhuwalka Trade Links Private Limited
  • Bhuwalka Steel Industries Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

70000

Equity Shares

Rs.1000/- each

Rs.70.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

65798

Equity Shares

Rs.1000/- each

Rs.65.798 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

65.798

65.798

65.798

2] Share Application Money

150.000

0.000

0.000

3] Reserves & Surplus

252.949

46.145

31.918

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

468.747

111.943

97.716

LOAN FUNDS

 

 

 

1] Secured Loans

332.485

133.416

189.531

2] Unsecured Loans

68.325

305.940

15.395

TOTAL BORROWING

400.810

439.356

204.926

DEFERRED TAX LIABILITIES

3.745

2.533

1.111

DEFERRED LIABILITY

0.000

0.000

162.930

 

 

 

 

TOTAL

873.302

553.832

466.683

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

370.242

190.420

195.552

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.562

0.562

0.562

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

686.442

455.913

300.132

 

Sundry Debtors

75.088

48.149

87.746

 

Cash & Bank Balances

5.239

4.076

28.988

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

62.290

58.342

34.437

Total Current Assets

829.059

566.480

451.303

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

240.136

111.967

133.204

 

Other Current Liabilities

82.744

87.220

45.582

 

Provisions

3.681

4.443

1.948

Total Current Liabilities

326.561

203.630

180.734

Net Current Assets

502.498

362.850

270.569

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

873.302

553.832

466.683

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Total Turnover

1450.993

1439.237

1882.252

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

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

113.362

67.931

55.723

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

77.499

33.194

32.682

 

 

 

 

 

 

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

35.863

34.737

23.041

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

15.351

15.217

20.857

 

 

 

 

 

 

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

20.512

19.520

2.184

 

 

 

 

 

Less

TAX                                                                  (H)

4.321

5.294

(11.974)

 

 

 

 

 

 

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

16.191

14.226

14.158

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

43.894

29.668

15.510

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

60.085

43.894

29.667

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

246.07

216.20

215.17

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

Return on Total Assets

(PBT/Total Assets}

(%)

1.71

2.57

0.34

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.17

0.02

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.85

3.92

2.10

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.54

2.78

2.50

 

 

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

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

31]

PAN of Proprietor/Partner/Director, if available

No

32]

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

Yes

33]

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

No

34]

External Agency Rating, if available

No

 

OPERATIONS:

 

During the year, total turnover of the company was Rs.1450.993 Millions as against Rs.1439.239 Millions for the previous year and Profit after Tax was RS.16.191 Millions as against Rs. 14.226 Millions.

 

 

Unsecured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Rupee term loans others

51.301

210.659

Other debt

17.024

95.281

TOTAL

68.325

305.940

 

 


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 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.54.34

UK Pound

1

Rs.82.55

Euro

1

Rs.70.10

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

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

4

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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.