MIRA
INFORM REPORT
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Report Date : |
14.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SOCIEDADE DE FOMENTO INDUSTRIAL LIMITED |
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Registered Office : |
Villa Flores Da Silva, Erasmo Carvalho Street Post Box No. 31, Margao,
Goa – 403 601 |
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Country : |
India |
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Date of Incorporation : |
03.08.1967 |
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Com. Reg. No.: |
000075 |
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CIN No.: [Company
Identification No.] |
U31200GA1967PTC000075 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS08606D |
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PAN No.: [Permanent
Account No.] |
44-011-CY- |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Iron Ore, Ferro manganese Ore. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company. Company’s financials are
missing from the Government registry. The management parted some general information,
but declined to part with financials. Payments are reported as usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Villa Flores Da Silva, Erasmo Carvalho Street Post Box No. 31, Margao,
Goa – 403 601 |
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Tel. No.: |
91-832-2732346 - 49 /2512856 / 2730651 / 2731573 |
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Fax No.: |
91-832-2730651 |
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E-Mail : |
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Website : |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Auduth Timblo |
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Designation : |
Director |
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Name : |
Mr. Dilip Timblo |
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Designation : |
Director |
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Date of Birth/Age : |
55 years |
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Qualification : |
Post Graduate |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Iron Ore, Ferro manganese Ore. |
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Exports : |
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Products : |
All products |
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Countries : |
Japan, China, Romania |
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Imports : |
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Products : |
Machinery |
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Countries : |
US, Japan |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C, Cash |
GENERAL
INFORMATION
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Suppliers : |
· Hosch Equipments (India) Private limited, (Kolkata, and its various branches) · Indomer Coastal Hydraulics (P) Limited, Chennai · Terra – Firma Environment Consultants Private limited · Chamundi Explosive Private limited, Nagpur, Maharashtra · Durga Metal Profiles, Belgaum · Geominexim , Hyderabad |
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No. of Employees : |
600 |
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Bankers : |
· State Bank of India · Syndicate Bank · Exim Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
H K Aparanji and Company Chartered Accountants |
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Memberships: |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
· Academy of Culinary Education · Fomento Barges Private Limited · Fomento Corporation · Fomento Foundation · Fomento Resorts and Hotels Limited · Marmagoa Maritima Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity shares |
Rs.10/- each |
Rs. 2.5000 millions |
Issued, Subscribed & Paid-up Capital : Not Available
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2007 |
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Sales Turnover (approximately) |
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1100.000 |
LOCAL AGENCY
FURTHER INFORMATION
OTHER INFORMATION:
The company is engaged in mining of iron ores (including mining of bamatita, magnatita, limonite, sidarite or taranite etc. which are valued chiefly for iron content. Production of sintered iron ores is also included.
The Generic Names of the Principal Products of the company are :
Ø Iron Ore Concentrates, Non Agglo, Others
Ø Iron Ore Fines (62% Fa and above)
Ø Iron Ore Lumps (60% and above)
Website details:
Subject has emerged internationally as a highly
reputed mining, ore benefication and allied technology Development Company poised
to export over two million tons per year of super grade iron ore and
concentrates. Over the last three decades, they have established prized
associations as accredited suppliers to major Japanese Steel mills. Nippon
Steel Corporation and Sumitomo Metal Industries, giants in the world of steel,
has expressed their full confidence in their quality and customer loyalty.
Sumito Metal Industries rewarded them through an 'Evergreen Convenant' -
ie suppliers in perpetuity.They have tapped the emerging Chinese steel industry
and they are now set to make forays into the other up-and-coming steel
industries in Asia and beyond.
Subject presently operates five iron ore mines in Goa
and two mines in Karnataka. Besides, it has other leases kept as reserves, which
include newly acquired mines in the mineral-rich belt of the Sandur-Hospet
region in Bellary district of Karnataka State (South India). The total reserves
accessible to Subject are estimated at over 100 million tonnes.
The company has three benefication plants. The two
that operate in Goa have a feed capacity of two million tons per year. One of
them is a 100% export oriented unit. The third benefication plant has a feed
capacity of 300M/T per hour and operates at Yeshwantnagar in Karnataka State.
The benefication techniques employed at these plants include magnetic
separation, to produce concentrates of the highest grade. To enhance iron
content and iron recovery, and to expand its benefication capacity still
further, the company is commissioning by mid-1998, the Secondary Benefication
Section (SBS-II) the 1st of its kind in India.
Fomento
Increased Recovery Rates with Magnetic Separation
Metso Minerals has now won Subject trust over twice. A
decade long association with India’s progressive iron ore mining company added
an extra dimension recently when Metso installed its second HGMS for Subject at
The Greater Ferromet Beneficiation plant in South Goa, India.
Subject is a highly reputed mining, ore beneficiation and
allied technology development company in India, with exports of over 2.50
million tons per year of high grade sinterfeed, calibrated lumps and
concentrates.
Subject presently
operates four iron ore mines in Goa and two mines in Karnataka. Besides, it has
other non-operating mines kept as reserves. Subject also has a significant
presence in the mineral-rich belt of the Sandur-Hospet region in Bellary
district of Karnataka State (South India). The total reserves accessible to
Subject are estimated at over 200 million tonnes.
Subject has been running their beneficiation plant since
1986, Ferromet Concentrates, at Cudegal that produces BF iron ore lumps and
fines. This was modernized in 1997. While doing this, the plant was producing
more than 150 tph of slurry/tails, called cyclone overflow, which was sent to
the tailing ponds for settling the particles and returning the water. The
slurry assayed about 52-57% Fe.
Subject evaluated various options of the available
technology to recover iron values from the slurry going to the tailing stack.
Subject in house R and D, as well as, the test work done with various research
laboratories revealed that magnetic separation techniques would increase the
iron values reporting as concentrates.
Metso approached Subject in 1996 and requested for their
participation in the process by offering their experience in building iron ore
plants, and offered HGMS as a prospective equipment. Metso also offered to
carry out extensive test work on various Fomento ore types.
YS Reddy, Fomento Chief Superintendent of Mines and
Director, felt that “HGMS was the only matrix based separator which could
handle particle sizes from 500 to 5 microns with a higher throughput capacity.
HGMS's strength was also found in its ability to work on ores of various
magnetic susceptibility, since the magnetic field is developed by an
electromagnet” A go ahead for the test work was given by Subject.
The Chairman of the Fomento Group, Auduth Timblo, gave the
mandate to the project team to “acquire mineral resources by either physical
acquisition or through the technology in mineral enrichment”. His support and
keen involvement has been vital to initiate the relationship that now spans
over a decade.
After 6 months of elaborate test work, Metso came up with a
proposal for upgrading the slurry to a suitable level of >64% Fe with Fe
Recovery > 70%. The final tailing grade could be brought down to 38- 45%
levels.
Metso’s proposal was to install a 250-05 Single Head HGMS to
handle the required tonnage. This unit having a single head could generate a
magnetic strength up to 5000 Gauss at an input power of 40 Kw DC. The weight of
the head was more than 22 tonnes. As a protection from Magnetite entering the
HGMS, Metso further recommended the use of LIMS WS1212 CC ahead of the HGMS.
Subject, convinced with the suitability of the application,
ordered the Single Head HGMS system for the plant in 1996. The system was
supplied and commissioned in 1997.
With the expansion of the plant in 2006, Subject ordered the
second head of the processing line of HGMS from Metso Minerals. The second unit
was successfully installed and commissioned in March 2007.
Prashant Sardessai, Director Technical, Fomento comments:
“Installing the second head allows Subject to process an additional capacity
and new types of ores, and prepares them for treating ores liberated by
grinding, which will be the next step at the company.
"The uniqueness of their relationship with Metso lies
in the fact that the company strives hard to contribute more than what they
expect from them. Professionalism of the team, readiness to adopt challenges
and ability to offer the best in class products is what has kept them ahead in
their peer group. Their placing the second order of HGMS and choosing Metso
came as a logical sequence to Fomento plans, riding on the good experiences
with their existing installation and their great service support,” Sardessai
continues.
Sunil Yadav, Vice President, Projects and Systems, Metso Minerals,
adds: “Repeated orders are more cherished as they build an everlasting bond
between the companies. Metso Minerals is proud to be a part of Subject success
story."
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.39 |
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UK Pound |
1 |
Rs.81.31 |
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Euro |
1 |
Rs.57.44 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
YES |
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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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52 |
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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