MIRA INFORM REPORT
|
Report
Date : |
12.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
STEEL
AUTHORITY OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Ispat
Bhawan, Lodi Road, New Delhi – 110 003, India |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
24.01.1973 |
|
|
|
|
Com.
Reg. No.: |
55-6454 |
|
|
|
|
CIN
No.: |
U27109DL1973PLC006454 |
|
|
|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
DELS2116A |
|
|
|
|
PAN
No.: (Permanent
Account No.) |
AAAC57062F |
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|
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|
Legal
Form : |
Public Limited Liability Company. The company’s shares are
listed on the Stock Exchanges |
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|
|
|
Line
of Business : |
Manufacturing
and marketing of Pig Iron, Crude Steel, Saleable Steel and Calcium Ammonium
Nitrate. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
500000000 |
|
|
|
|
Status
: |
Satisfactory
|
|
|
|
|
Payment
Behaviour : |
Usually
Correct |
|
|
|
|
Litigation
: |
Clear |
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|
|
|
Comments
: |
Subject is Government of India Company and it has improved
its performance and business since 2003. Trade relations are fair. Payments
are now correct and as per commitments. The company has been doing well. It
can be considered good for any normal business dealings at usual trade terms.
It can be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered
Office : |
Ispat
Bhawan, Lodi Road, New Delhi – 110 003, India |
|
Tel.
No.: |
91-11-24367481
(14 lines) |
|
Fax
No.: |
91-11-24367015 |
|
E-Mail
: |
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|
Website
: |
|
|
Cable : |
STEELINDA |
|
|
|
|
Head
Office : |
v
Ispat
Bhavan, 40, Jawaharlal Nehru Road, Kolkata - 700 071, West Bengal, India
v
Ispat
Niketan, 52/1A Promothesh Barua Sarani, (Old Ballygunj Circular
Road), Kolkata – 700 019, West Bengal, India Phone 91-33- 2476 9986, 476 9987 Fax : 91-33-2479 9799 E-mail: edfin@sail-steel.com |
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|
|
|
International
Trade Division : |
Hindustan
Times House, 13th Floor, 18-20, Kasturba Gandhi Marg, New Delhi -
110 001, India |
|
Tel.
No.: |
91-11-2335
5733 |
|
Fax
No.: |
91-11-2332
1018, 2331 2774 |
|
E-Mail
: |
|
|
|
|
|
Factory
: |
Integrated Steel Plants
v
Bhilai
Steel Plant, Chhattisgarh – 490 001, India v
Durgapur
Steel Plant – 713 203, West Bengal, India v
Rourkela
Steel Plant – 769 011, Orissa, India v
Bokaro
Steel Plant – 827 001, Jharkhand v
P.
O. Hinoo, Ranchi – 834 002, Bihar, India Special Steel Plants
v
Alloy
Steel Plants, Durgapur – 713 208, West Bengal, India v
Salem
Steel Plant – 636 013, Tamilnadu, India v
Visvesvaraya
Iron & Steel Plant, Bhadravati, Karnataka, India |
|
|
|
|
Regional
and Zonal Offices : |
v
Antriksh
Bhavan, 10th Floor, 22 Kasturba Gandhi Marg, New Delhi - 110
001, India v
Jeevan
Sudha, 8th - 9th Floors, 42-C, Jawaharlal Nehru
Road, Kolkata- 700 071, West Bengal, India v
The
Metropolitan, Plot No. C-26/27, Bandra-Kurla Complex, Bandra (East), Mumbai-
400 051, Maharashtra, India v
Ispat Bhavan, 2 Kodambakkam High Road, Chennai - 600 034, Tamilnadu,
India 28259660 (LP) E-mail: rmfpsr@sail-steel.com, rmlpsr@sail-steel.com v
Ispat Bhavan, H.P. Bramhachari Road, Paltan Bazar, Guwahati - 781
008, Assam, India Phone: 91-361-2542756, 2545260,
2541519, 2541544 |
|
|
|
|
Branches
/ Sales Office : |
Agra Ispat Bhavan 85/4, Sanjay Place,
Agra - 282 002, Uttar Pradesh Allahabad Ispat Bhavan 22-A, Muir Road, Allahabad - 211 002,
Uttar Pradesh, India Chandigarh ISCO 27 Sector 26, Madhya Marg, Chandigarh - 160
019, India Faridabad Gobind Bhawan, Neelam Chowk, NIT, Faridabad -
121 001, Haryana, India Ghaziabad GDA
Commercial Complex, 1st Floor, Navyug Market, Ghaziabad - 201
001, Uttar Pradesh, India Jalandhar City JCC Bank
Building, 2nd Floor, Opposite GPO, GT Road, Jalandhar City -
144 001, Punjab, India Jammu OB-24, Railhead, Commercial Complex, Near
Panama Chowk, Jammu - 180 004, Himachal Pradesh, India Kanpur 16/98
Mahatma Gandhi Marg, LIC Building, 4th Floor, Kanpur - 208 001,
Uttar Pradesh, India Lucknow PICUP
Bhawan, North West Block, 2nd Floor, Gomti Nagar, Lucknow -
226 010, Uttar Pradesh, India Ludhiana Dhyan
Singh Complex, 2nd Floor, Opposite Bus Stand, Ludhiana - 141 001,
Punjab, India Mandi Gobindgarh GT Road,
Mandi, Gobindgarh - 147 301, India New Delhi Jeevan
Deep, 10 Sansad Marg, New Delhi-110 001, India Bhubaneshwar 271
Bidyut Marg, Unit 4, Shastri Nagar, Bhubaneshwar - 751 001, Orissa,
India Bokaro Ispat
Bhavan, CMO Complex, Mahatma Gandhi Road, Near Administrative
Building, Bokaro Steel City - 827 001 Phone:
91-6542-246439. Kolkata 4 India
Exchange Place, 5th Floor, Kolkata - 700 001, West
Bengal Dimapur Circular Road, Opposite Holy Cross
School, Dimapur - 797 112 Durgapur Surya Sen
Sarani, Durgapur - 713 208 Guwahati Ispat Bhavan, H.P. Bramhachari Road, Paltan
Bazar, Guwahati - 781 008, Assam, India Fax:
91-361-254 1519. Patna Luv Kush
Tower, 5th Floor, Exhibition Road, Patna - 800 001, Bihar,
India Rourkela F-10,
Sector-2, Rourkela - 769 006 Ahmedabad GHB
Complex, 1st Floor, Ankur, Naranpura, Ahmedabad - 380 013,
Gujarat, India Baroda Marble
Arch, 8th Floor, Race Course Circle, Baroda - 390 007,
Gujarat, India Bhilai Equipment Chowk, Sector-1,
Road-1, Bhilai- 490 001, Madhya Pradesh, India Fax: 91-788-222 0389 E-mail: bmbhi@sail-steel.com Gwalior Gulati
Sadan, Moti Mahal Road, Padav, Gwalior - 474 002, Madhya Pradesh,
India Indore Arcade
Silver 56, 3rd Floor, 1 New Palasia, Indore - 452 001, Madhya
Pradesh, India Fax:
91-731-243 2689. Jabalpur 500
Marhatal, Jabalpur - 482 002, Madhya Pradesh, India Jaipur Anand
Bhawan, 1st Floor, S.C.Road, Jaipur - 302 001, India Kota New LIC
Building, 17 Jhalwar Road, Chhauni Choraha, Kota - 32 4007, Rajasthan, India Phone:
91-744-245 0127, 232 6722 Mumbai Swastik
Chambers, 1st Floor, Sion Trombay Road, Chembur, Mumbai - 400
071, Maharashtra, India Fax:
91-22-2522 6935, 2522 4718 Nagpur Shree Mohini Complex, 345, S.V.Patel
Marg, Nagpur - 440 001, Maharashtra, India Phone:
91-712-253 5734, 252 4276, 252 2103 Pune Savarkar
Udyog Bhavan, 2nd Floor, Congress House Road, Shivaji
Nagar, Fax:
91-20-2553 8054, 2553 9548. Bangalore Shankarnarayana
Building, 2nd Floor, 25 Mahatma Gandhi Road, Bangalore - 560 001,
Karnataka, India Belgaum Shanbhag
Chambers, 4th Floor, Kirloskar Road, Belgaum - 590 002 Chennai Ispat
Bhavan, 2 Kodambakkam High Road, Chennai - 600 034, Tamilnadu, India Coimbatore Cheran
Towers, 2nd Floor, 6/25 Arts College Road, Coimbatore - 641 018,
India Hyderabad 5-9-13,
Tara Mandal, 9th Floor, Saifabad, Hyderabad - 500 004, Andhra
Pradesh, India Kochi GCDA
Commercial Complex, 3rd Floor, Shanmugham Road, Marine
Drive, Kochi - 682 031, Kerala, India
Tiruchirapalli Esspee
Complex, 52 Heber Road, Cantonment, Tiruchirapalli - 620 001 Vijayawada GVR
Towers, 1st Floor, Opp. Vinayaka Theatre, Bharathi Nagar, Ring
Road, Vijayawada - 520 008, Andhra Pradesh, India Visakhapatnam Plot No.
39, Opp. R.K.Beach, Beach Road, Visakhapatnam - 530 003, Andhra
Pradesh, India |
DIRECTORS
|
Name : |
Mr. V S Jain |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. S K Bhattacharyya |
|
Designation
: |
Managing Director |
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|
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|
Name : |
Mr. Sanak Mishra |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. U P Singh |
|
Designation
: |
Managing Director |
|
|
|
|
Name : |
Mr. R P Singh |
|
Designation
: |
Managing Director |
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|
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|
Name : |
Mr. S K Roongta |
|
Designation
: |
Director (Commercial) |
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|
Name : |
Mr. G C Daga |
|
Designation
: |
Director (Finance) |
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|
Name : |
Mr. K K Khanna |
|
Designation
: |
Director (Technical) |
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|
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|
Name : |
Mr. V K Agarwal |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. P K Sengupta |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Amit Mitra |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Arun Kumar Rath |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. J P Singh |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. G. Ojha |
|
Designation
: |
Functional Directors – Personnel |
|
|
|
|
Name : |
Mr. Nilotpal Roy |
|
Designation
: |
Managing Director – [IISCO Steel Plant] |
|
|
|
|
Name : |
Mr. V. Shyamsundar |
|
Designation
: |
Managing Director – [Durgapur Steel Plant] |
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|
|
|
Name : |
Mr. B. N. Singh |
|
Designation
: |
Managing Director – [Rourkela Steel Plant] |
|
|
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|
Name : |
Mr. V. K. Srivastava |
|
Designation
: |
Managing Director – [Bokaro Steel Plant] |
|
|
|
|
Name : |
Dr. S. C. Jain |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Professor R. P. Sengupta |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Dr. Velu Annamalai |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Mr. Siddharth Kak |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Mr. Shyamal Ghosh |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Mr. S. N. P. N. Sinha |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Mr. Mohammad Yusuf Khan |
|
Designation
: |
Independent Directors |
|
|
|
|
Name : |
Professor Deepak Nayyar |
|
Designation
: |
Independent Directors |
|
|
|
|
OTHER
PERSONAL |
|
|
Name : |
Mr. Devinder Kumar |
|
Designation
: |
Company Secretary |
|
|
|
|
Name : |
Mr. G. Elias |
|
Designation
: |
Joint Secretary [Ministry of Steel, Government
of India] |
|
|
|
|
Name : |
Mr. A. K. Rath |
|
Designation
: |
Additional Secretary & Financial Adviser
[Ministry of Steel, Government of India] |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter’s Holding |
|
|
|
Indian
Promoters |
3544690285 |
85.82 |
|
Sub Total |
3544690285 |
85.82 |
|
|
|
|
|
Non Promoter’s Holding |
|
|
|
Institutional
Investors |
|
|
|
Mutual
Funds and UTI |
173115128 |
4.19 |
|
Banks,
Financial Institution, Insurance Companies |
94614311 |
2.29 |
|
FIIS |
65100843 |
1.58 |
|
Sub Total |
332830282 |
8.06 |
|
|
|
|
|
Others |
|
|
|
Private
Corporates Bodies |
65603382 |
1.59 |
|
Indian
Public |
182777195 |
4.43 |
|
NRIs /
OCBs |
1587101 |
0.04 |
|
GDR/ADR |
2912300 |
0.07 |
|
Sub Total |
252879978 |
6.13 |
|
Grand Total |
4130400545 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and marketing of Pig Iron, Crude Steel,
Saleable Steel and Calcium Ammonium Nitrate. |
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|
Products
: |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Imports
from : |
Argentina, Australia, Austria, Belgium, Brazil, Canada,
China, CIS, Czech Republic, Denmark, Finland, France, Germany, Israel, Italy,
Japan, Korea, Luxembourg, Netherlands, Russia, Singapore, Slovenia, Spain,
Sweden, Switzerland, U.K., Ukraine and U.S.A. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Main Steel Plants |
|
|
|
|
Pig Iron |
Tones |
1740000 |
555732 |
|
Crude
Steel |
Tones |
12987000 |
13177546 |
|
Saleable
Steel |
Tones |
10990000 |
11623033 |
|
|
|
|
|
|
Alloy Steels Plants |
|
|
|
|
Pig Iron |
Tones |
58000 |
20065 |
|
Crude
Steel |
Tones |
339078 |
292966 |
|
Saleable
Steel |
Tones |
456000 |
427279 |
GENERAL INFORMATION
|
No. of
Employees : |
137496 |
|
|
|
|
Bankers
: |
v
State
Bank of India, Madam Cama Road, Mumbai – 400 021, Maharashtra, India v
State
Bank of India, Rourkela – 769 011, Orissa, India v
State
Bank of India, Salem – 636 001, Tamil Nadu, India v
Punjab
National Bank, New Delhi, India v
United
Bank of India, New Delhi, India v
Bank
of Baroda, New Delhi, India v
Syndicate
Bank, New Delhi, India v
Union
Bank of India, New Delhi, India v
Bank
of India, New Delhi, India v
Canara
Bank, New Delhi, India v
Indian
Overseas Bank, New Delhi, India v
State
Bank of Patiala, New Delhi, India v
Bank
of Maharashtra, New Delhi, India v
Oriental
Bank of Commerce, New Delhi, India v
Punjab
& Sind Bank Limited, New Delhi, India v
Jammu
& Kashmir Bank, New Delhi, India v
State
Bank of Saurashtra, New Delhi, India v
Central
Bank of India, New Delhi, India v
State
Bank of Hyderabad, New Delhi, India v
State
Bank of Bikaner & Jaipur, New Delhi, India v
State
Bank of Indore, New Delhi, India v
State
Bank of Mysore, New Delhi, India v
HDFC
Bank, New Delhi, India v
Allahabad
Bank, New Delhi, India v
UCO
Bank, New Delhi, India v IDBI Bank Limited |
|
|
|
|
Facilities : |
Secured Loans : Working Capital Borrowings from Banks :
Rs. 3432.600 millions |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
v
S.
K. Mittal & Company Chartered Accountants v
Ray
& Ray Chartered Accountants v
Dass
Maulik Mahendra K Agrawala & Company
Chartered Accountants |
|
|
|
|
Associates
: |
v
All
Government of India Undertaking Companies v
SAIL,
Bansal Service Centre Limited v
Metaljunction.Com
Private Limited v
UEC
SAIL Information Technology Limited v
North
Bengal Dolomite Limited v
NTPC
SAIL Power Company Private Limited v
Bokaro
Power Supply Company Private Limited v
Bhilai
Electric Supply Company Private Limited |
|
|
|
|
Subsidiaries |
v
The
Indian Iron & Steel Company Limited v
IISCO
- Ujjain Pipe & Foundry Company Limited v
Maharashtra
Elektrosmelt Limited v
SAIL
Power Supply Company Limited (SPSCL) v
Bhilai
Oxygen Limited (BOL) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity
Shares |
Rs.10/- each |
Rs. 50000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
4130400545 |
Equity
Shares |
Rs.10/- each |
Rs. 41304.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
41304.000 |
41304.000 |
41304.000 |
|
|
3]
Reserves & Surplus |
84710.100 |
61762.500 |
9072.700 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
126014.100 |
103066.500 |
50376.700 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
11221.600 |
16039.800 |
33784.800 |
|
|
2]
Unsecured Loans |
31754.600 |
41658.100 |
53102.800 |
|
TOTAL
BORROWING
|
42976.200 |
57697.900 |
86887.600 |
|
|
DEFERRED
TAX LIABILITIES |
14844.600 |
18443.100 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
183834.900 |
179207.500 |
137264.300 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
121621.400 |
124850.700 |
131538.500 |
|
Capital work-in-progress
|
7579.400 |
3664.800 |
3822.000 |
|
|
|
|
|
|
|
INVESTMENT
|
2920.000 |
6067.100 |
5431.700 |
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
62100.600
|
42206.900
|
30814.400 |
|
|
Sundry Debtors
|
18817.300
|
19084.500
|
15499.600 |
|
|
Cash & Bank Balances
|
61726.400
|
61321.200
|
20171.600 |
|
|
Interest
Receivable/Accrued
|
854.800
|
1421.800
|
861.800 |
|
|
Other Current Assets
|
0.000
|
0.000
|
1710.500 |
|
|
Loans & Advances
|
30338.200
|
19301.900
|
12955.400 |
Total Current Assets
|
173837.300
|
143336.300
|
82013.300 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
51917.000
|
47806.700
|
44060.000 |
|
|
Provisions
|
72364.400
|
53854.000
|
45266.200 |
Total Current Liabilities
|
124281.400
|
101660.700
|
89326.200 |
|
Net
Current Assets
|
49555.900
|
41675.600
|
(7312.900) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
2158.200 |
2949.300 |
3785.000 |
|
|
|
|
|
|
|
TOTAL
|
183834.900 |
179207.500 |
137264.300 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
293921.700 |
297671.700 |
221750.800 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
57057.400 |
93653.500 |
26282.100 |
Provision for Taxation
|
16927.700 |
25483.800 |
1161.300 |
Profit/(Loss) After Tax
|
40129.700 |
68169.700 |
25120.800 |
|
|
|
|
|
Export Value
|
10916.400 |
13354.300 |
16883.900 |
|
|
|
|
|
Import Value
|
61481.800 |
46170.400 |
24300.200 |
|
|
|
|
|
Total Expenditure
|
236757.800 |
203399.200 |
195122.000 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
30.12.2006 (3rd Qtr.) |
|
Sales Turnover |
74164.300 |
85390.900 |
85370.7 |
|
Other Income |
1512.700 |
2260.600 |
2230.9 |
|
Total Income |
75677.000 |
87651.500 |
87601.6 |
|
Total Expenditure |
50779.300 |
62057.700 |
61054.3 |
|
Operating Profit |
24897.700 |
25593.800 |
26547.3 |
|
Interest |
936.700 |
924.100 |
905.7 |
|
Gross Profit |
23961.000 |
24669.700 |
25641.6 |
|
Depreciation |
2958.800 |
3034.600 |
3299.4 |
|
Tax |
8281.900 |
7652.900 |
6879.3 |
|
Reported PAT |
13864.100 |
14428.100 |
14711.9 |
Notes
2006-06
Quarter 1
Other Income Includes Interest Earned Rs 1433.20
million Other Income Rs 79.50 million Expenditure Includes (Increase) /
Decrease in Stock in Trade Rs (8953.70) million Consumption of Raw Materials Rs
28745.60 million Staff Cost Rs 11875.60 million Consumption of stores &
spares Rs 6163.40 million Power & Fuel Rs 6324.20 million Other Expenditure
Rs 6624.20 million Tax Includes Provision for Current Tax Rs 8221.00 million
Fringe Benefit Tax Rs 60.90 million Deferred Tax Rs (1143.80)million EPS is
Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 21 Complaints disposed off during the quarter 20
Complaints unresolved at the end of the quarter 01 1. The above results for the
quarter ended June 30, 2006 were taken on record at the Board of Directors
meeting held on July 28, 2006. 2. Pursuant to the amalgamation of the Indian
Iron & Steel Company Limited, with the Company with effect from February 16,
2006, from the appointed date i.e. April 01, 2005, previous year's figures for
the quarter have been re-grouped. 3. Net sales/income from operations for the
current quarter includes Rs 5581.70 million, for the earlier periods,
consequent to the effect of price escalations finalized with a major customer.
2006-09
Quarter 2
Other Income Includes Interest Earned Rs 2019.50
million Other Income Rs 241.10 million Expenditure Includes (Increase) /
Decrease in Stock in Trade Rs 2341.10 million Consumption of Raw Materials Rs
30470.20 million Staff Cost Rs 10411.80 million Consumption of stores &
spares Rs 6478.20 million Power & Fuel Rs 6372.90 million Other Expenditure
Rs 5983.50 million Tax Includes Provision for Current Tax Rs 7902.70 million Fringe
Benefit Tax Rs 61.10 million Deferred Tax Rs (445.90) million Earlier Years Rs
(310.90) million EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter 01 Complaints Received during the quarter 25 Complaints disposed off
during the quarter 26 Complaints unresolved at the end of the quarter Nil 1.
The above results for the quarter/half year ended September 30, 2006 were taken
on record at the Board of Directors meeting held on October 30, 2006. 2.
Pursuant to the amalgamation of the Indian Iron & Steel Company Limited
(ISP), with the Company with effect from February 16, 2006, from the appointed
date i.e. April 01, 2005, the previous year's figures for the quarter/half year
have been regrouped by including ISP's figures. 3. Net sales/income from
operations for the current half year includes Rs 5581.70 million (considered in
1st quarter) for the earlier periods, consequent to the effect of price
escalations finalized with a major customer. 4. The figures of previous periods
have been re-grouped to conform to current quarter/half year's classification.
200612 Quarter 3
EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 10 Complaints disposed off
during the quarter 09 Complaints unresolved at the end of the quarter 01 1. The
above results for the quarter/nine months ended December 31, 2006 have been
taken on record at the Board of Directors meeting held on January 29, 2007 and
are subject to limited review by the statutory auditors. 2. Pursuant to the
amalgamation of the Indian Iron & Steel Company Ltd (ISP), with the Company
with effect from February 16, 2006, from the appointed date i.e. April 01,
2005, the figures for the quarter/nine months of the previous year have been
regrouped by including ISP's figures. 3. The Board of Directors have approved
interim dividend @16% of the paid-up equity share capital for the financial
year 2006-07. The record date for payment of interim dividend has been fixed as
February 03, 2007. 4. The figures of previous periods have been re-grouped to
conform to current quarter/nine months classification.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.44 |
0.94 |
2.86 |
|
Long Term Debt-Equity Ratio |
0.40 |
0.83 |
2.28 |
|
Current Ratio |
1.17 |
0.99 |
0.75 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.14 |
1.15 |
0.87 |
|
Inventory |
6.27 |
8.80 |
7.07 |
|
Debtors |
17.25 |
18.52 |
15.04 |
|
Interest Cover Ratio |
13.20 |
15.36 |
3.76 |
|
Operating Profit Margin(%) |
22.58 |
34.80 |
19.49 |
|
Profit Before Interest And Tax Margin(%) |
18.89 |
31.28 |
14.84 |
|
Cash Profit Margin(%) |
15.97 |
24.81 |
15.06 |
|
Adjusted Net Profit Margin(%) |
12.28 |
21.29 |
10.41 |
|
Return On Capital Employed(%) |
38.03 |
68.77 |
25.34 |
|
Return On Net Worth(%) |
35.04 |
88.85 |
66.43 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 113.900/- |
|
Low |
Rs. 110.00/- |
LOCAL AGENCY FURTHER INFORMATION
Incorporated
in 1973, the Steel Authority of India (SAIL) is a giant among the steel majors
in India. It is the largest steel conglomerate in the country and the world's
ninth-largest steelmaker. It manages and operates five integrated steel plants
at Bhilai, Madhya Pradesh; Bokaro, Bihar; Durgapur, West Bengal; Rourkela, Orissa;
and Burnpur, West Bengal. It also has four units for special and alloy steels
and ferro alloys at Durgapur, West Bengal; Salem, Tamilnadu; Chandrapur,
Maharashtra; and Bhadravati, Karnataka.
Subject operates nine iron ore, five limestone, three dolomite and three coal
mines besides generating 700 MW of captive power. The Central Marketing
Organization, with its head quarters at Calcutta, monitors its domestic market
through an expanding network of stockyards, dockyards, branch sales offices and
consignment agents while the International Trade Division looks after its
export of world-class steel to as many as 70 countries across the globe, by
establishing close liaison with buyers abroad.
The company is the only producer of extra-wide (up to 3200 mm) and heavy
plates, catering to the needs of the construction, automobile, shipbuilding,
engineering and other sectors.
The subsidiaries of SAIL are The Indian Iron & Steel Company Limited and
Maharashtra Elektrosmelt Limited, Bhilai Oxygen Limited, which was one of the
subsidiary company was wound-up by the order of dated 27th May 2005
of Hon'ble High Court of Delhi.
Subject's plants and units have received ISO 9002/1 certifications and are
well-equipped with the state-of-the-art technology to meet advanced needs and
applications. ISO 9002-certified stainless steel is exported to several
developed countries.
The Government of India has approved the Financial and Business Restructuring
of SAIL involving waiving of loans advanced to it from Steel Dvpt Fund to a
value of Rs. 50730 millions and Rs. 3810 millions from Government of India;
Provision of Government guarantees with 50% interest subsidy for loan and
interest thereon on Rs.1500 millions to be raised by SAIL from the market to
finance reduction in manpower through voluntary retirement scheme; Provision of
Government guarantee for loan and interest thereon of Rs.1500 millions
(incl.Rs.500 millions already agreed) to be raised by SAIL from the market
primarily for meeting repayment obligation on past loans during 1999-2000. To
initiate the process of divestment of the following non-core assets into a
joint venture with protecting jobs of the existing employees SAIL has decided
to sell, lease or dispose of by way of divesting the following undertakings of
the company either through joint venture arrangement or otherwise. Captive
Power Plants at Rourkela, Durgapur and Bokaro; Oxygen Plant-2 of Bhilai Steel
Plant; Salem Steel Plant, Salem; Alloy Steels Plant, Durgapur; Visvesvaraya
Iron and Steel Plant, Bhadravati; Rourkela Fertilizer Plant, Rourkela.
For Salem Steel Plant of subject the Company has sought expression of interest
from interested parties for setting up of stainless steel melting, refining and
casting facilities and also option for interest in Salem Steel Plant itself
along with the above facilities.
The company has signed a joint venture agreement with Tata Iron & Steel and
Kalyani Steel for the creation of a company to manage their steel
e-marketplace, metaljunction.com.
The company tied-up with the National Building Construction Corporation (NBCC)
for formation of a consortium to help reconstruction activity in quake-hit
Gujarat. The combine will initially concentrate on building low-cost, quake-hit
and cyclone-resistant dwelling units suitable for rural Gujarat.
The company has completed the Modernisation Programme at Bhilai Steel Plant and
also the Upgradation of Durgapur Steel Plant has also been completed during
2001-02. At Bokaro Steel Plant the equipment work is in progress and the
Furnace was commissioned in 2002-03. The company incurred a capital expenditure
of Rs.2410 millions. The Company has entered into an agreement with Corus
Consulting Limited UK for Long Rail facility and the UK company will provide a
technical back up support for SAIL.
During 2004-05 the company projects worth Rs.30000 millions at various stages
of implementation and approval in the company. Some of the major ongoing
schemes are Rebuilding of Coke Oven Battery-5, Upgradation of Blast Furnace-7
and Revamping of B-Strand of Wire Rod Mill at Bhilai Steel Plant: Bloom Caster
with Associated facilities at Durgapur Steel Plant: Rebuilding of Coke Oven
Battery-1, Capital Repair of BF-4 and Upgradation of ERW Pipe Plant at Rourkela
Steel Plant: Rebuilding of Coke Oven Battery-5, Revamping/modification of Mae
West Block System and housing machining in Finishing Stands F6-F12 at Bokaro
Steel Plant. Some of the projects under approval are Up gradation of Slab
Caster, RH Degassing and Ladle Furnace, Modernization of Sinter Plant-II &
Desulphurisation Unit in SMS-II at Bhilai Steel Plant: Coal Dust Injection in
Blast Furnace(3&4) at Durgapur Steel Plant: Installation of Hot Metal
Desulphurisation Unit at SMS-II at Rourkela Steel Plant: Upgradation of Tandem Mill
& Pickling Line in cold Rolling Mill (CRM) and Installation of Coal Dust
Injection in Blast Furnace (2 and 3).
FINANCIAL
REVIEW
The company has recorded sales turnover of Rs. 322800 millions during the year
compared to Rs. 318050 millions in the previous year. The profit before tax was
Rs. 57060 millions for the year 2005-06 as compared to Rs. 93650 millions in
the previous year. The profit after tax during the current year stood at Rs.
40130 millions as compared to Rs. 68170 millions in the previous year. Increase
in prices of coking coal, demurrage rates, freight rates on iron ore &
fluxes and lower steel prices has adversely affected the profitability of the
company. However, this has been partially offset by higher production,
improvement in techno-economic parameters, reduction in interest charges and
higher interest earnings on investment of surplus funds.
World over, the trend in industry has been towards mergers and consolidation
leading to creation of greater value for stakeholders. Pursuant to the scheme
of amalgamation under Section 391 to Section 394 of the Companies Act, 1956, as
approved by the Central Government vide its Order dated 15th
February, 2006, effective from 16th February, 2006, the Indian Iron
& Steel Company Limited (IISCO), an erstwhile wholly owned subsidiary
company, has been amalgamated with the Company, with effect from the appointed
date i.e. 1st April, 2005. the amalgamation has been accounted for
under the 'Pooling of interest method' being an amalgamation in the nature of
merger, as prescribed by the Accounting Standard (AS)-14 issued by the
Institute of Chartered Accountants of India. Accordingly, all the assets,
liabilities, reserves and accumulated losses of IISCO as on 1st
April, 2005 have been merged with those of SAIL under the appropriate heads.
The accounts of the Company for the current year, have been prepared after
incorporation of the accounts of IISCO Steel Plant (ISP). With the above
merger, SAIL has grown in size and now has five integrated steel plants under
its fold. This merger will help the Company to build better synergy resulting
in faster growth.
Thrust on reduction in borrowings continued with a reduction of Rs. 14720
millions during the year. The debt-equity ratio improved from 0.58:1 as on
31.03.2005 to 0.35:1 as on 31.03.2006. With the invested surplus funds in short
term deposits with banks being more than the total borrowings as on 31.03.2006,
the company is virtually a debt-free company. The Company earned interest of
Rs. 4090 millions on short term deposits with banks during the year. The
interest charges on operation account for the year were lower by Rs. 1370
millions over the previous year.
Impetus on cost reduction, revenue maximization and productivity improvement
through systematic application of new technology and deep awareness to reduce
cost at all levels of operation, was maintained. Cost control savings were
achieved in major areas of operation i.e. reduction in specific energy
consumption, reduction in specific usage of raw materials and improvement in
other techno-economic parameters. The Institute of Cost & Works Accountants
of India (ICWAI) under its National award for excellence in Cost
Management-2005, conferred upon the Company 'Good Performance Award' as recognition
to Company's efforts in the areas of cost management and attainment of cost
consciousness in the organization. This is the third consecutive year, where
SAIL'S endeavor in the area of cost reduction has been recognized.
The Company has paid interim dividend @ 12.5% of the paid-up equity share
capital during the year. The directors have further recommended a final
dividend @ 7.5% subject to approval of Shareholders, thus making the total
dividend @ 20% of paid up equity capital for the year 2005-06. A sum of Rs.
3100 millions has been transferred out of the profit of the company to the
general reserve during the year.
PRODUCTION REVIEW
The Company achieved strong growth in physical performance during the year,
with improvement in volume of production and efficiency parameters. All the
blast furnaces were operated to maximize production leading to best ever 14.6
million tones (MT) of hot metal, 13.5 million tones of crude steel and 12.1
million tones of saleable steel, with growth of 11%, 8% and 6.6% respectively
over previous year, considering ISP's performance in both the financial years
The product-mix was enriched with all time high finished steel production of
9.78 million tones, higher by 2% over previous year. Production of value added
products went up, such as, Wheel & Axle by 6%, CRNO by 24%, Galvanised
Sheets by 7% and Spiral Welded Pipes by 76%. Bhilai Steel Plant produced 260
meter long rail panels for Railways for the first time. Subject supplied DMR
249 A grade steel plates to Indian Navy for manufacture of indigenous aircraft
carrier. The techno-economic parameters improved further. Coke rate reduced by
6 kg per tone of hot to lowest ever 543 kg per tone of hot metal. Energy
consumption reduced by 1.2% to 7.24 G.cal / per tone of crude steel. Special
thrust was given to improving internal logistics at the plants. The detention
of railway wagons was reduced by 25%. Overall rail traffic handled went up by
10% to 60.3 million tones.
AWARDS
& ACCOLADES
Known
for nurturing creativity and innovation, subject received various awards /
accolades for excellence in a number of fields. Besides winning the Prime
Minister's Trophy for Best Performing Integrated Steel Plant by Bhilai Steel
Plant for the 7th time for 2004-05, Subject was conferred upon the 'SCOPE Award
for Excellence and Outstanding contribution to the Public Sector Management -
Institutional Category' for the year 2004-05. Subject has also been conferred
with 'SCOPE Meritorious Award for Environmental Excellence and Sustainable Development
for the year 2004-2005'. subject also bagged five Vishwakarma Rashtriya
Puraskar in recognition of the extraordinary contribution of 13 employees for
bringing improvements in their work area.
The company's efforts towards Research and Development were appreciated in the
form of 'National Award for R&D efforts in Industry' to Research and
Development Centre for Iron & Steel (RDCIS) for pioneering contributions in
design, development and application of new special steel products for the year
2005, instituted by Department of Science and Industrial Research, Ministry of
Science and Technology.
As a socially responsive corporate citizen, the company has always been in the
forefront in its efforts in Corporate Social Responsibility (CSR) initiatives
towards making a meaningful difference to people's lives. Recognition has
flowed from various bodies such as Confederation of Indian Industry (CII) which
conferred the first ever sustainability award to Bhilai Steel Plant in the
independent unit category for excellence in social, economic and environmental
performance. Rourkela Steel Plant (RSP) received the Indira Priyadarshini
Vrikshamitra Award - 2003 from Ministry of Environment and Forests, Government
of India for its commendable efforts in afforestation activities. Besides, RSP
was also awarded the Golden Peacock Environment Management Award - 2005 by
World Environment Foundation for excellence in effective environment
system.
The company is in trade terms with :
v
Vijayan
& Vijayan Retreading Limited
v
Hydrokrimp
A.C. Private Limited
v
Vijaya
Hot Top Products
v
Vijaya
Industrial Products
v
Pragathi
Industrial Products
v
Ferro
Insulation (Private) Limited
The company
has joint ventures with the following :
v
SAIL,
Bansal Service Centre Limited
v
Metaljunction.Com
Private Limited
v
UEC
SAIL Information Technology Limited
v
North
Bengal Dolomite Limited
v
NTPC
SAIL Power Company Private Limited
v
Bokaro
Power Supply Company Private Limited
v
Bhilai
Electric Supply Company Private Limited
The company’s fixed assets of important value include land
(freehold & leasehold), right & patents, railway lines, railway
sidings, roads, bridges, culverts, buildings, plant & machinery, furniture,
fittings, vehicles, water supply & sewerage, EDP equipments and miscellaneous
articles
AS PER WEBSITE
Company Profile
Subject is the leading steel-making company in India. It is
a fully integrated iron and steel maker, producing both basic and special
steels for domestic construction, engineering, power, railway, automotive and
defence industries and for sale in export markets.
Ranked amongst the top ten public sector companies in India
in terms of turnover, SAIL manufactures and sells a broad range of steel
products, including hot and cold rolled sheets and coils, galvanised sheets,
electrical sheets, structural, railway products, plates, bars and rods,
stainless steel and other alloy steels. SAIL produces iron and steel at four
integrated plants and three special steel plants, located principally in the
eastern and central regions of India and situated close to domestic sources of
raw materials, including the Company's iron ore, limestone and dolomite mines.
Subject's wide range of long and flat steel products are
much in demand in the domestic as well as the international market. This vital
responsibility is carried out by Subject's own Central Marketing Organization
(CMO) and the International Trade Division. CMO encompasses a wide network of
38 branch offices and 47 stockyards located in major cities and towns
throughout India.
With technical and managerial expertise and know-how in
steel making gained over four decades, Subject's Consultancy Division (SAILCON)
at New Delhi offers services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for
Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and
develop new technologies for the steel industry. Besides, SAIL has its own
in-house Centre for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organization at Ranchi. The captive mines are under
the control of the Raw Materials Division in Calcutta. The Environment
Management Division and Growth Division of SAIL operate from their headquarters
in Calcutta. Almost all our plants and major units are ISO Certified.
Press Release
Steel Minister commissions 3 new
production facilities at Bhilai
New Delhi, November 18, 2006
Union Minister for Chemicals & Fertilizers and Steel Mr.
Ram Vilas Paswan today commissioned three new production facilities set up at a
total cost of Rs. 1870 millions at Bhilai Steel Plant (BSP) of Steel Authority
of India Limited (SAIL). Presently under stabilization, the facilities have
been added as part of subject’s Rs. 37,0000 millions expansion plan that is
currently under implementation. SAIL Chairman Mr S.K. Roongta has accompanied
the Minister on his visit to Bhilai.
Bhilai’s four-strand continuous Wire Rod Mill with the
capacity to produce 0.4 million tones per annum (mtpa) of wire rods from rolled
billets was commissioned in 1967. Strands ‘C’ and ‘D’ had been revamped in
1995. The proposal to revamp the ‘B’ strand at a cost of around Rs. 750
millions was approved by the SAIL Board in December 2004. Modernization of the
strand has provided the Mill with facilities to produce wire rods of TMT grade
and smaller section of 5.5 to 7.0 mm with consistent productivity besides
improving tolerance, ovality and yield of the rods. Morgardshammar AB of Sweden
was the technology supplier for the project that was executed in three packages.
Other companies which participated in the project are BEC Limited of Bhilai,
ABB Limited of Bangalore and HSCL.
The Plate Mill of Bhilai Steel Plant, commissioned in 1983,
is a two-stand continuous mill with capacity to produce 0.95 mtpa of plates in
thicknesses ranging from 5 to 120 mm from cast slabs. The SAIL Board had
approved the proposal for installation of hydraulic automatic gauge control
(HAGC) and plan view rolling (PVR) in Plate Mill at a cost of around Rs. 520
millions in January 2005. The benefits that will accrue to the Mill due to the
new facilities include production of plates with closer thickness tolerances,
achievement of high rectangularity of plates, yield improvement, cropping at
exact length, etc. The project was executed on turnkey basis by Danieli
Automation SpA, Italy along with their consortium member Danieli Engineering
India Limited of Kolkata.
Equipped with three 12 MW turbo-generators, 10 turbo-blowers
and six boilers, Power & Blowing Station (PBS) of BSP meets the captive
power requirements of critical units and supplies air blast to blast furnaces
as well as process steam through steam boilers for meeting the needs of various
shops. The proposal to install a 15 MW turbo-generator at a cost of around Rs.
480 millions, in place of turbo generator # 3 of PBS that had outlived its use,
was approved by the SAIL Board in May 2004.
SAIL shareholders vote
on IISCO’s amalgamation with SAIL
New Delhi, November 8,
2005
Shareholders of the subject exercised their
right of franchise on the scheme of amalgamation of the company’s wholly-owned
subsidiary Indian Iron & Steel Company Limited (IISCO) with subject at an
Extraordinary General Meeting (EGM) held for the purpose at the IAF auditorium
in Subroto Park here this afternoon.
IISCO has an integrated steel plant at Burnpur
in West Bengal and iron ore and coal mines/washeries in Jharkhand and Bengal.
The main products of IISCO are structural, bars & rods and pig iron.
Following the approval of the Government of
India in June 2005, and subsequent clearance given by the Board of Industrial
& Financial Reconstruction (BIFR), to the Ministry of Steel’s proposal for
the amalgamation of IISCO with SAIL, the matter had been referred to the
Ministry of Company Affairs (MoCA) for approval. The MoCA had directed SAIL to
hold its shareholders’ meeting to obtain their consent to the proposed
amalgamation under the provisions of Article 391-94 of the Companies Act, 1956.
It had also nominated Mr V.S. Jain, Chairman, SAIL, as the chairman of the
meeting of the company’s shareholders.
The outcome of the poll will be made public
shortly, when the chairman submits his report to the MoCA. IISCO had emerged
from a long loss-making spell in 2003-04 by recording net profit of Rs. 270 millions.
In 2004-05, the company declared a PAT of Rs. 46.60 millions on a turnover of Rs. 1,4870 millions. The company has 16,218 employees on its rolls as on
1.4.05.
IISCO’s iron ore mines at Chiria in Jharkhand
are rich in quality and quantity. Their strategic location would be
advantageous for SAIL. Availability of large infrastructure facilities with
IISCO will help expansion of capacity. Inter-plant synergy can be better
exploited for improved and complementary product-mix. Moreover, IISCO has
experienced manpower with good work culture. And SAIL has financial and
managerial capabilities that can be pooled for faster growth of SAIL, including
IISCO.
Subject has recently approved a plan to invest
around Rs. 8,0000 millions for technological up gradation of IISCO, taking its annual
hot metal production capacity to 2.5 million tones by 2011-12 from the present
level of 0.85 million tones.
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. 44.17 |
|
UK Pound |
1 |
Rs. 86.10 |
|
Euro |
1 |
Rs. 57.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |