MIRA
INFORM REPORT
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Report Date : |
19.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
CORE MINERALS |
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Formerly Known as : |
WELL BRINES CHEMICALS |
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Registered Office : |
TVH Beliciaa Towers, Phaze II, 5th Floor, 94, MRC Nagar,
Chennai – 600 028, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1986 |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners. |
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Line of Business : |
Mining and Exports of Iron Ore, Coal and Bauxite. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established Concern and part of Archean Group, Medium
Sized group in South India. Partners are reported as experienced, respectable
and having satisfactory means of their own. Trade relations are fair.
Payments are reported as usually correct and as per commitments. The Concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
TVH Beliciaa Towers, Phaze II, 5th Floor, 94, MRC Nagar,
Chennai – 600 028, Tamilnadu, India. |
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Tel. No.: |
91-44-43033444 |
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Fax No.: |
91-44-28156797 |
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E-Mail : |
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Mining : |
Located at : Orissa, Jharkhand, Gujarat |
PARTNERS
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Name : |
Mr. S. Madhan |
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Designation : |
Managing Director |
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Name : |
Mr. K Jaishankar |
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Designation : |
Executive Vice President |
BUSINESS DETAILS
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Line of Business : |
Mining and Exports of Iron Ore, Coal and Bauxite. |
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Exports : |
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Products : |
Iron Ore |
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Countries : |
China |
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Imports : |
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Products : |
Machinery |
PRODUCTION STATUS
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Particulars |
Actual
Production |
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Bauxite |
200000 Metric
tonnes |
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Iron Ore |
1800000 Metric
tonnes |
GENERAL
INFORMATION
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No. of Employees : |
50 (Office) |
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Bankers : |
v ICICI Bank
Limited v Indian Overseas
Bank v HDFC Bank v Standard
Chartered Bank v Citi Bank,
Chennai |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Not Available |
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Subsidiaries / Sister Concerns : |
v Archean Granites
Private Limited v Good Earth Mari
Time Limited v Jakhau Salt
Company Private Limited |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 500.000 millions |
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Borrowed : |
-- |
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Total : |
Rs. 500.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2007 |
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Sales Turnover (Group) |
10000.000 |
LOCAL AGENCY
FURTHER INFORMATION
Profile:
Archean Group’s mineral export unit, Core Minerals was established in 1986 to export iron ore, bauxite and other minerals to a growing world market. The concern has been a pioneer in the export of iron ore to China and has seized every opportunity to grow its business far and wide.
The concern is focused on mining, quarrying and exporting iron ore and has
joint ventures with mine owners in the Indian states of Orissa, Jharkhand and
Gujarat. Core Minerals has the requisite expertise in both manpower and
technical skills for mining operations and this has stood us in good stead to
execute large shipments to the overseas buyers. The concern is targeting an
export of 2 million metric tons of iron ore in the financial year of 2006-07.
Additionally, Core Minerals is also expanding its mineral business to include
export of bauxite and has targeted an annual volume of one million metric tons.
The concern is currently mining in a twenty hectare area and has access to an
additional 40 hectares. Presently, they are geared up to handle an annual
production capacity of the order of 200,000 metric tons, which can be increased
to meet customers’ requirements with proven reserves of over 2 million metric
tons.
Furthermore, Core Minerals is also involved in coal mining and trading with exclusive access to coal producers in South Africa and Indonesia. The concern plans to trade about 1 million metric tons in this first year and then scale it up to 2 million metric tons.
Core Minerals exports in excess of 1.8 million tons of iron ore mainly to China from their own mining operations. The Company operates 3 Metso Crushers in the States of Jharkhand and Orissa in India producing about 7000 to 9000 metric tons of iron ore per day. The iron ore is consistently of 63.5% Fe2O3 content. Core Minerals owns a string of mines in the mineral rich belt of Jharkhand and Orissa about 350 km off Paradip Port in addition to the mines in Gujarat.
The stockyards for these mines are located at Haldia, Paradip and
Vishakhapatnam on the east coast and Mangalore and Karwar on the west coast of
India. This flexibility has facilitated the company to quickly ship the cargo
to any part of the world with ease and efficiency.
Subsidiaries:
The Archean Granites Private limited was started in 1984 at a time when the Portuguese held sway over the world markets in a near monopolistic stronghold on the industry. They have come a long way since the inception over two decades to be recognized as a significant player in the world market reputed for quality, customer satisfaction and punctuality. The company specializes in landscape granite stones and has an annual production of 200,000 tons of cobblestones and kerbstones.
Archean Granites is the largest supplier of cobblestones to the US and European
markets and is recognized for its stellar exports by the government of India
through numerous awards and recognitions.
Backed by a professional team and an unmatched infrastructure Archean Granites has won the confidence of its customers across the world. The commitment to quality and timely delivery has left the customers with a smile on their faces that have reflected in repeat orders which have spurred the team to seek and achieve bigger contracts for the company.
Edinburgh Edinburgh
Waterfront Sandstone K Club
Dublin Germania
Waterfront Pillar
Entrance to Carolyn House Grey
Hand Dressed Setts
Kerbing
Good Earth Maritime Limited
Initially, the ever-increasing need to
character a wide range of vessels for the group companies led to the founding
of Goodearth Maritime Limited. With an initial investment in a dry bulk
carrier, more followed ... a second vessel being of the 33,000 DWT class. As
the business and opportunities kept expanding the company embarked into the
maritime business of owning ships that cater to not just the group’s businesses
but also to the requirements of other companies across the world as a full
fledged business activity.
Today, Goodearth owns and operates a fleet of six ships, professionally managed and supported by well-trained and skilled staff. The company places highest premium on timely movement and safe delivery of cargo to any port across the world.
With a view to expanding its capabilities and to capitalize on the boom in the
global freight market, the company has entered an allied maritime activity,
namely building new vessels. Goodearth has entered into a 15 year ship-building
agreement with India’s premiere ship building company, Hindusthan Shipyard
Limited at Vizag, India. In the first phase the company has ordered a series of
four 30,000 DWT and six 53,000 DWT vessels. The total capital outlay is
estimated to be at Rs. 1200 Crores (USD 266 Millions) with the first batch of
ships scheduled to be delivered by the end of year 2006.
Goodearth is also the first Indian company to boast of a inhouse design team which caters to the requirements of the company and also for consulting.
Goodearth Maritime Limited is a truly global company, deriving revenues from international business. The fleet comprises 6 Dry Bulk Cargo vessels - made of 3 Panamax and 3 Handymax vessels.
Goodearth Maritime Limited has three main business activities: Sea Logostics,
Chartering and Ship building. The shipping business is involved in
transportation of Cement, Granites, Steel, Iron Ore, Coal, Wheat, Fertilisers
and many types of dry bulk commodities.
Goodearth Maritime Limited is one of the world's leading integrated sea
logistics companies, being an end-to-end sea logistics provider, with a special
focus on transportation solutions. The success is strengthened by a
strong management team of experienced marine professionals that steer the
company, with world-class operations, an impressive safety record and a
consistently rewarding financial performance.
The fleet handles an annual average of 1,588,077 tonnes of dry cargo.
Jakhau Salt Co.
Private Limited
Jakhau Salt Co. Private Limited., formerly known as Well brines Chemicals was established in the year 1989 to produce solar salt. The company established its first refinery in 1989 and since then Jakhau Salt has invested immense resources in developing India’s largest salt fields at Jakhau in the Indian state of Gujarat.
The company boasts of a 15,000 acre salt production site and port facility with
state-of-the-art infrastructure to produce 1.5 million metric tons of salt
every year. The company is the largest producer of solar salt in Asia and is reputed
to be the second largest of land owners in the state of Gujarat in India.
Jakhau Salt places a high premium on quality and reliability. The modern
infrastructure and process ensures highest quality and most efficient
turnaround time for the clients. This has earned us the confidence of diverse
clients spread across the world and in India
Jakhau Salt operations covers over 15,000 acres of salt pans
and crystallizers employing over 200 staff at site. The salt fields are
completely mechanized with harvesters and loaders. Production and quality
parameters are vigorously monitored by regular, automated, sampling, testing
and inspection stations situated throughout the salt works.
An onssite laboratory staffed with well qualified chemists and engineers ensures
consistent high quality of the products that has won us accolades from the
customers.
Jakhau Salt’s captive loading facilities at Jakhau port ensures quick turnaround of vessels with an average loading rate of 10, 000 tons per day.
Jakhau Salt Company has recently been awarded the ISO 9001:2000
certification for Quality Management Standards by the prestigious International
Certification Limited, Auckland, New Zealand.
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 :
The 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.
The 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. 39.96 |
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UK Pound |
1 |
Rs. 78.66 |
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Euro |
1 |
Rs. 63.31 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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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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63 |
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. |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
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