MIRA
INFORM REPORT
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Report Date : |
21.06.2007 |
IDENTIFICATION DETAILS
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Name : |
STERLITE COPPER LIMITED |
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Registered Office : |
Sipcot Industrial, Complex, |
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Country : |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
30.01.2003 |
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Com. Reg. No.: |
050263 |
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CIN No.: [Company
Identification No.] |
L31300TN2003PLC050263 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS16234B |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Copper Wires and Cables of all kinds. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
USD 1824 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively small company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are however
reported as usually correct and as per commitments. The company can be considered for small business dealings at usual
terms and conditions. |
LOCATIONS
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Registered Office : |
Sipcot Industrial, Complex, |
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Tel. No.: |
91-461-2340951 |
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Fax No.: |
91-461-2340129 |
DIRECTORS
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Name : |
Mr. Anil Kumar Agarwal |
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Designation : |
Director |
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Address : |
113 / 114, Samudra Mahal, Worli, Mumbai – 400018, |
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Date of Birth/Age : |
07.09.1952 |
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Date of Appointment : |
13.01.2003 |
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Name : |
Mr. Navin Kumar Agarwal |
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Designation : |
Director |
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Address : |
321, Samudra Mahal, Worli, Mumbai – 400018, |
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Date of Birth/Age : |
11.01.1961 |
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Date of Appointment : |
13.01.2003 |
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Name : |
Mr. C V Krishnan |
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Designation : |
Director |
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Address : |
26, St Mary’s Road, RA Puram, Chennai – 600028, TAmilnadu |
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Date of Birth/Age : |
09.03.1950 |
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Date of Appointment : |
13.01.2003 |
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Name : |
Mr. Tarun Jain |
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Designation : |
Director |
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Address : |
411, Akshay Giri Kunj, |
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Date of Appointment : |
23.08.2005 |
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Name : |
Mr. Kuldip Kumar Kaura |
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Designation : |
Director |
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Address : |
3, |
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Date of Appointment : |
23.08.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Sterlite Industires ( |
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99988 |
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Mr. Anil Agarwal |
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2 |
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Mr. Navin Agarwal |
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2 |
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Mr. C V Krishnana |
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2 |
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Mr. Dwarkaprasad Agarwal |
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2 |
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Mr. Tarun Chandmal Jain |
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2 |
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Category |
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Percentage of
Holding |
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Bodies Corporate |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Copper Wires and Cables of all kinds. |
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Products: |
Item Code No.: 7403 11 Product Description: Copper Cathodes Item Code No.: 7408 11 Production Description: Continuous Cast Copper Rods |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
B.N. Kedia and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500
million |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.500 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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(0.014) |
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NETWORTH |
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0.486 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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0.486 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.000 |
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Capital work-in-progress |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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0.499 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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0.000 |
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Total
Current Assets |
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0.499 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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0.041 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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0.041 |
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Net Current Assets |
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0.458 |
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MISCELLANEOUS EXPENSES |
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0.028 |
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TOTAL |
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0.486 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2004 |
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Sales Turnover |
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0.000 |
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Other Income |
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0.000 |
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Total Income |
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0.000 |
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Profit/(Loss) Before Tax |
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0.014 |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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0.014 |
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Expenditures : |
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Filling and Registration Fees |
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0.024 |
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Printing and Stationery |
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0.006 |
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Payment to Auditors |
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0.010 |
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Total Expenditure |
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0.040 |
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KEY RATIOS
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PARTICULARS |
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31.03.2004 |
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Return on Investment (ROI) (PBT/Networth) |
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0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.08 |
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Current Ratio (Current Asset/Current Liability) |
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11.17 |
LOCAL AGENCY FURTHER INFORMATION
Company Details:
Subject
is a leading producer of copper in
Subject performance makes it one of the
fastest-growing companies with sales increasing from Rs.9220 million (US$ 217
Mn) in 1997-98 to Rs.67,921 million (US$ 1,527 Mn) in 2005 - 2006, recording a
CAGR of 28%.
Subject consistent product quality and high
standard of customer service has earned it an enviable 43% share in the
domestic market by volume in 2005 - 06. The hallmark of its success has been
the stress on quality and constant benchmarking with the best in the world,
giving it the distinction of being a low-cost, high quality, high-efficiency
producer by global standards.
Subject places a very strong emphasis on the
following:
- Quality
Assurance
All SIIL facilities are equipped with the latest technology backed by thorough quality assurance systems. This is evident from the fact that SIIL is an ISO 14001 (1996), OHSAS 18001 (1999) and ISO 9001 (2000) certified organization. - People
At SIIL, people are its major strength, helping transform the SIIL vision into reality. Attracting, nurturing and retaining the best and the brightest are the cornerstone of its HR policy. - State-of-the-art-Technology
SIIL constantly endeavours to keep ahead of the Technology curve. Constantly investing in the latest in Technology and Innovation, SIIL facilities are comparable with the best in the world. - Environmental
Consciousness
As part of its growth, SIIL will focus on environment protection. Investing in environment friendly technology, SIIL has carried out extensive work including setting up a 5000 cubic meters capacity Rainwater Harvesting System and extending the Green Belt around its facilities extensively. - Social
Consciousness
SIIL operates with a Social Consciousness. There are several initiatives undertaken to give back to society. SIIL takes its role as a Responsible Corporate Citizen very seriously. - Growth
Growth is a way of life at SIIL. This is visible in the achievements over the last 5 years. SIIL has gone from strength to strength and continues to look for new opportunities to achieve returns and active growth.
Mines
SIIL
owns two mines which together supplied 127,196 tons of concentrate in 2005 -
06. However, one of its mines has closed since July 2005.
Smelter
The
Smelter at Tuticorin, Tamilnadu is based on a proven energy efficient and
environment friendly technology, IsaProcess™ from MIM,
Refinery
The
anode produced by the smelter is processed in the Refinery at Dadra Nagar Haveli,
Silvassa using IsaProcess™ sourced from MIM, Australia. The copper cathodes
produced are LME ‘A’ grade certified. A new refinery also using the IsaProcess™
is being added at Tuticorin for scaling up operations.
Copper Rods Plant
State-of-the-art
continuous cast copper rod plant based on technology and equipment from
Continuous Properzi,
Sulphuric Acid Plant
The Sulphuric Acid Plant, with designed capacity to produce 1,068,000
tonnes of Sulphuric acid per annum, is set up with basic engineering from
Phosphoric Acid Plant
The phosphoric acid plant with HDH process has a production capacity of
180,000 tonnes per annum. Technology and basic engineering for this plant has
been sourced from HydroAgri International,
- To harness
technology to its full potential in a safe and clean environment in the
entire business cycle and integrate quality with continuous improvements.
- To harness
the profitable and growing CCR market from 125 KMT to 300 KMT per annum.
- To achieve
and sustain cost leadership in the global market.
- To become a
vibrant, learning organisation by building skills and competencies of
employees for growth.
- To be a
responsible and respectable corporate citizen.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.82 |
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1 |
Rs.81.18 |
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Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
3 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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