MIRA
INFORM REPORT
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Report Date : |
04.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANKIT METALS AND POWER LIMITED |
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Registered Office : |
35, Chittaranjan Avenue, 4th Floor, Kolkata-700012, West
Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Year of Establishment : |
07.08.2002 |
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Com. Reg. No.: |
94979 |
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CIN No.: [Company
Identification No.] |
U27101WB2002PLC094979 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALA05741B |
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PAN No.: [Permanent
Account No.] |
AAECA5230B |
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Legal Form : |
Public Limited Liability Company. Company's Shares are Listed on the
Stocks Exchange |
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Line of Business : |
Manufacture, Trade, Import and Export of Steel Intermediates. |
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 2600000 |
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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 a well established and reputed company meeting its normal
commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
35, Chittaranjan Avenue, 4th Floor, Kolkata-700012, West
Bengal, India |
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Tel. No.: |
91-33-22119805/ 9806 |
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Fax No.: |
91-33-22114134 |
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E-Mail : |
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Website : |
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Corporate Office : |
33, Chittaranjan Avenue, Kolkatta-700012, India |
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Tel. No.: |
91-33-2211/0523/0524 |
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Fax No.: |
91-33-22110522 |
DIRECTORS
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Name : |
Mr. Suresh Kumar Patni |
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Designation : |
Chairman |
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Name : |
Mr. Ankit Patni |
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Designation : |
Managing Director |
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Name : |
Mr. Rohit Patni |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Sanjay Singh |
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Designation : |
Director Works |
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Name : |
Mr. Kailash Chand Jain |
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Designation : |
Director |
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Name : |
Mr. Vijay Kumar Jain |
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Designation : |
Director |
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Name : |
Mr. Jatindra Nath Rudra |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Chandra Kumar Jain |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.07.2007
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Category |
No. Of Share held |
% of Holding |
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A. PROMOTERS
HOLDING |
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1. PROMOTERS |
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a)
Indian Promoters |
21450500 |
65.25 |
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b)
Persons Acting in Concert |
1835000 |
5.58 |
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Sub Total |
23285500 |
70.83 |
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B. NON-PROMOTERS
HOLDING |
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INSTITUTIONAL INVESTORS |
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a)
Mutual Funds and UTI |
NIL |
NIL |
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b)
Banks, Financial Institutions, Insurance Companies (Central/State
Govt.lnstitutions/Non-Govt. Institutions) |
NIL |
NIL |
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Flls |
378925 |
1.15 |
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Sub Total |
378905 |
1.15 |
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OTHERS |
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a)
Domestic Corporate Bodies |
6429151 |
19.55 |
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b)
Resident individuals |
2449439 |
7.45 |
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c)
NRI's/OCBs |
17322 |
0.05 |
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d)
Any other Clearing Members |
315183 |
0.97 |
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Sub Total |
9211095 |
28.02 |
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Grand Total |
32875500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture, Trade, Import and Export of Steel Intermediates. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
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Sponge Iron |
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105000 |
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M.S. Ingots/Billets |
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65100 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactroy |
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Auditors : |
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Name : |
M/S R. Kothari and Company Chartered Accountant |
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Address : |
16A, Shakespeare Sarani, Kolkata-700071, India |
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Group Companies : |
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CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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35000000 |
Equity Shares |
Rs. 10/- each |
Rs. 350.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20975500 |
Equity Shares |
Rs. 10/-
each |
Rs. 209.755
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
209.755 |
209.755 |
129.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
315.361 |
209.944 |
94.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
525.116 |
419.699 |
223.600 |
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LOAN FUNDS |
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1] Secured Loans |
777.740 |
559.342 |
162.300 |
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2] Unsecured Loans |
311.716 |
18.658 |
41.800 |
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TOTAL BORROWING |
1089.456 |
578.000 |
204.100 |
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DEFERRED TAX LIABILITIES |
52.362 |
18.560 |
0.000 |
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TOTAL |
1666.934 |
1016.259 |
427.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
528.354 |
534.887 |
11.000 |
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Capital work-in-progress |
554.874 |
65.254 |
385.400 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
480.850
|
214.904 |
0.000 |
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Sundry Debtors |
278.591
|
243.050 |
0.000 |
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Cash & Bank Balances |
49.675
|
9.423 |
6.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
307.257
|
224.033 |
65.700 |
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Total
Current Assets |
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|
72.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
535.547
|
276.456 |
41.900 |
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Provisions |
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|
0.000 |
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Total
Current Liabilities |
535.547
|
276.456 |
41.900 |
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Net Current Assets |
580.826
|
414.954 |
30.200 |
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MISCELLANEOUS EXPENSES |
2.880 |
1.164 |
1.100 |
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TOTAL |
1666.934 |
1016.259 |
427.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1942.286 |
582.562 |
0.000 |
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Other Income |
12.031 |
0.241 |
0.000 |
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Total Income |
1954.317 |
582.803 |
0.000 |
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Profit/(Loss) Before Tax |
161.152 |
53.609 |
0.000 |
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Provision for Taxation |
55.735 |
18.819 |
0.000 |
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Profit/(Loss) After Tax |
105.417 |
34.790 |
0.000 |
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Earnings in Foreign Currency : |
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FOB Value of Export |
123.281 |
0.000 |
0.000 |
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Imports : |
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Raw Materials |
0.000 |
24.582 |
0.000 |
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Stores & Spares |
1.690 |
0.197 |
0.000 |
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Total Imports |
1.690 |
24.779 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
1222.489 |
417.708 |
0.000 |
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Administrative Expenses |
19.186 |
5.826 |
0.000 |
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Raw Material Consumed |
505.733 |
117.386 |
0.000 |
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Financial Charges |
49.144 |
15.390 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[38.590] |
[39.213] |
0.000 |
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Payment to Auditors |
2.429 |
1.277 |
0.000 |
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Depreciation & Amortization |
29.476 |
10.820 |
0.000 |
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Exchange Fluctuation |
3.298 |
0.000 |
0.000 |
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Total Expenditure |
1793.165 |
529.194 |
0.000 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
Sales Turnover |
602.000 |
687.700 |
778.600 |
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Other Income |
3.100 |
2.800 |
4.200 |
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Total Income |
605.100 |
690.500 |
782.800 |
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Total Expenditure |
524.800 |
597.400 |
682.100 |
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Operating Profit |
80.300 |
93.100 |
100.700 |
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Interest |
15.500 |
16.300 |
18.300 |
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Gross Profit |
64.800 |
76.800 |
82.400 |
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Depreciation |
7.600 |
7.700 |
9.900 |
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Tax |
6.700 |
8.900 |
10.200 |
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Reported PAT |
50.500 |
60.200 |
62.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.76 |
1.22 |
0.66 |
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Long Term Debt-Equity Ratio |
1.42 |
1.02 |
0.63 |
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Current Ratio |
1.49 |
1.63 |
2.24 |
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TURNOVER
RATIOS |
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Fixed Assets |
3.77 |
2.28 |
0.00 |
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Inventory |
6.03 |
5.90 |
0.00 |
|
Debtors |
8.05 |
5.22 |
0.00 |
|
Interest Cover Ratio |
4.04 |
4.35 |
0.00 |
|
Operating Profit Margin(%) |
11.61 |
12.68 |
0.00 |
|
Profit Before Interest And Tax Margin(%) |
10.20 |
10.97 |
0.00 |
|
Cash Profit Margin(%) |
6.43 |
7.19 |
0.00 |
|
Adjusted Net Profit Margin(%) |
5.02 |
5.49 |
0.00 |
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Return On Capital Employed(%) |
16.43 |
9.78 |
0.00 |
|
Return On Net Worth(%) |
22.31 |
10.82 |
0.00 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY:
The company was incorporated on 7th August 2002 as Ankit Steel Works
Private Limited and was subsequently renamed as Ankit Metal and Power Private Limited
on 8th July 2004. Suresh Kumar Patni has promoted the company. Pursuant to
change in the corporate status of the Company from Private to Public, the name
of the company was further changed to Ankit Metal and Power Limited with effect
from 31st August 2004.
The company has setting up an Integrated Steel Plant at village Chhatna,
Jorehira in Bankura District of West Bengal. This project comprising of (i)
1,05,000 TPA Sponge Iron Plant (ii) 65,140 TPA Billet Casting Plant (iii)
1,00,000 TPA Re-Rolling Mill (iv) 8.5 MW Waste Heat Recovery Based (WHRB)
captive power plant (utilising the waste gases from the sponge iron plant) and
(v) 4 MW Atmospheric Fluidised Bed Combustion (AFBC) based captive power
plant.
The First Phase comprising of Sponge Iron Plant has commenced commercial
operations in October 2005. A part of the 2nd Phase comprising of Steel Melting
Shop for manufacturing of Ingots / Billets has started production in January
2006. The remaining of 2nd Phase comprising of Re-rolling mill and the WHRB
Captive Power Plant are estimated to be commissioned in July, 2007, whereas the
AFBC Captive Power Plant is estimated to start its operation from July, 2007.
COMPANY PROFILE:
AMPL is promoted by Mr. S. K. Patni, a well known figure in the Iron and
Steel sector with a strong presence as quality Ferro Alloy provider to the
steel industry in India and worldwide. Bolstered with a strategic advantage in
terms of both the desired depth of operational knowledge as well as the
required market visibility across geos, the group portfolio spans activities
like manufacture, trade, import and export of steel intermediates.
The Company has been incorporated with a view to setup an Integrated Steel
Plant with facilities to manufacture Sponge Iron, Pig Iron, M.S. Ingots and
Billets, Pellets, and finally variety of superior quality Rolled products along
with a Captive Power Plant.
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Particulars |
Capacity |
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Phase-I |
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Sponge Iron Plant |
105000 TPA |
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Phase-II |
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Induction Furnaces with Billet
Casting Plant |
614. TPA |
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Re- rolling Mill |
100000 TPA |
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Waste Heat Recovery Based
(WHRB) Captive Power Plant |
8.5 MW |
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Phase
-III |
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Atmospheric Fluidised Bed Combustion
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4MW |
The Plant is located at Jorehira in Bankura District of West Bengal with
a capacity to produce 100,000 MTPA of Rolled products (TMT), alongwith the
intermediate products Sponge Iron, M.S. Ingots/Billets and 12.5 MW Captive
Power Plant. Having its’ Sponge Iron unit operationalised in October’05,
presently, the unit has successfully implemented all the facilities, and has
started producing 100,000 mt of TMT bars (ISI Certified) annually under the
brand name of ‘ANKIT TMT’.
The Captive Power Plant is a combination of Waste Heat Recovery Based
and AFBC which entails the Company to generate power at a lower cost compared
to the State utilities, consequently resulting in overall lower cost of
production.
The Plant is enjoying a locational advantage by being positioned close to the
coal belt in Ranigunj and having linkage wih Coal India Limited for supply of
company’s annual coal requirement, thereby deriving cost savings in logistics
and transportation. The plant site has good linkages with state and national
highways, railways and ports thus ensuring an uninterrupted movement of raw
materials and finished products
GROUP PROFILE:
The first group company was Impex Metal and Ferro Alloys Pvt. Limited,
which was started in 1991 to import and trade in ferro alloys. Impex Ferro Tech
Limited set up in 1998, is a key regional player in ferro alloys –
manufacturing ferro manganese, ferro chrome and silico manganese.
The group is also setting up an integrated steel plant under the name Ankit
Metal and Power Limited. Another group company,
ROHIT FERRO - TECH LIMITED
A well-differentiated player in the Ferro Alloy manufacturing sector, Rohit
Ferro-Tech Limited (RFTL) operates with a vision that inspires, and a
business strategy that sustains. An active player in both domestic and
international markets, RFTL’s product mix is aimed at catering to the high
demand globally as well as maximizing on returns. The Company manufactures High
Carbon Ferro Chrome (H.C.FeCr), Ferro Manganese (FeMn) and Silico Manganese
(SiMn) through Submerged Arc Furnace (SAF) route.
RFTL had started it’s operations in October’03 with a Ferro Alloy plant
comprising of 2x9 MVA Submerged Arc Furnaces, and then, expanded it’s capacity
by installing further 2x9 MVA furnaces to produce 55,000 TPA of High Carbon
Ferro Chrome at Bishnupur in the state of West Bengal. Currently, the same unit
is again undergoing an expansion with another furnace of 9 MVA to enhance
Bishnupur plant’s total capacity to 70,000 TPA.
The Company has also set up another Ferro Alloy plant comprising of 4 x 16.5
MVA Submerged Arc Furnaces at Kalinganagar Industrial Complex, Jajpur in the
state of Orissa to produce 110,000 TPA of Ferro Alloys comprising of High
Carbon Ferro Chrome, Silico Manganese and Ferro Manganese with the versatility
of all the furnaces to produce any of these kinds of Chrome or Manganese based
ferro alloys.
GROUP COMPANIES:
Impex Metal and Ferro Alloys Limited
Promoted by Mr. S. K. Patni in 1991, this is the flagship Company of the group
with a motive to Import and Export of Ferro Alloy, Metals and Minerals.
Presently, the Company specializes in the import of various kinds of Ferro
Alloys from Bhutan, China and other parts of the world and supplying to all
over India with it’s own sales depots located in different parts of the
Country, a best known source for supplying of different kinds of ferro alloys
under one umbrella to the steel producers.
Impex Ferro Tech Limited
With over a decade-long presence in the Ferro Alloys manufacturing space, Impex
Ferro Tech Limited, the flagship company of the Impex Group had its inception
way back in June 1995. The company never looked back since then and has grown
in to a highly valued vendor to the Iron and Steel maker.
The Company is producing nearly 43200 tonnes of Manganese based ferro alloys
annually. Today Impex Ferro Tech is one of the fastest growing companies in the
Ferro alloy sector in eastern India with consistent profit-making since
inception.
Rohit Ferro-Tech Limited
A well-differentiated player in the Ferro Alloy manufacturing sector, Rohit
Ferro-Tech Limited (RFTL) operates with a vision that inspires, and a business
strategy that sustains.
An active player in both domestic and international market, RFTL’s product mix
is aimed at catering to the high demand globally as well as maximizing on
returns. The Company manufactures High Carbon Ferro Chrome (H.C.FeCr), Ferro
Manganese (FeMn) and Silico Manganese (SiMn) through Submerged Arc Furnace
(SAF) route.
RFTL had started it’s operations in October’03 with a Ferro Alloy plant with a
meagre capacity of 24,000 mtpa. Presently, within a short span of only 4 years,
the total capacity of the plant increased to 180,000 mtpa, the largest merchant
producer of High Carbon Ferro Chrome in India.
Rohit Ferro-Tech Limited was incorporated in April 2000 under the aegis of
Impex Group having interest in manufacturing, trading, import and export of
various kinds of Ferro Alloys. Since then, the Company has come a long way to
position itself as a leading producer of High Carbon Ferro Chrome. Being
accredited ISO 9001:2000 in August 2004 and receiving Two Star Export House
Status are some of the notable milestones in it’s journey.
PROMOTERS:
The company is promoted by Mr.
Suresh Kumar Patni, Chairman of the Company. With a formal education in
Commerce, Mr. Patni is associated with the steel sector for more than two
decades as a trader, manufacturer, importer and exporter of various kinds of
Ferro Alloys, Metals, Minerals and Steel related products with his promoted
ventures M/s. Impex Ferro-Tech Limited, Impex Metal and Ferro Alloys Limited
and Rohit Ferro-Tech Limited.
With his strong and established presence in the Ferro Alloys sector, the
promoters decided to diversify their focus into the Core consumer based Steel
sector, and promoted Subject to set-up an Integrated Steel Plant in the state
of West Bengal comprising of Sponge iron, Billets, and Rolled products.
Mr. Ankit Patni, CFA, started
his career by associating with the company as Executive Director in November
2004, and then promoted as Managing Director of the Company. His portfolio
includes controlling the overall affairs of the company with an expertise in
Finance and Marketing.
Mr. Rohit Patni, did his B.E.
from PESIT, Bangalore and MBA from Cardiff University, UK. He has joined the
Company in 2007 as Joint Managing Director with his good knowledge in Project
implementation, Project Planning and Mergers and Acquisitions.
OPERATIONAL
REVIEW:
The year was very good for the company as Sponge Iron division and
Induction AND Billet casting divisions has come under operation and thereby
turnover and profitability of the company has increased manifolds in comparison
to the last year.
The gross sales of the company have increased to Rs. 2099.370
Millions as against Rs. 634.280
Millions for the previous year. The Net Profit after taxes is Rs. 105.417
Millions i.e. 203% higher in comparison to previous year of Rs.34.790 Millions Cash
profit before tax of the company is Rs. 190.628 Millions in comparison to
previous year of Rs. 64.429 Millions
The company is installing a 5.5 MVA furnace to produce manganese based
ferro alloys with specialty grade at its existing plant facilities with a total
capital outlay of Rs. 87.000 Millions to be funded through bank loan and
internal accruals in debt equity ratio of 1.51.
With firm commitment and sustained efforts, THE company expects to
maintain persistent growth in the years to come.
BUSINESS REVIEW:
This year under report has witnessed a strong growth in overall economy
of the country. Manufacturing, Service, Trading and Allied sectors of economy
are reporting excellent performance. Foreign capital and enterprise are
increasing their participation. The Central Government is pushing forward
economic reforms whether it be Insurance, Aviation, Retail Trade, Banking,
Pension Funds or Infrastructure. Financial Institutions and Banks are extending
credit facilities on competitive terms. Indian entrepreneurs are either acquiring
or setting up business interests abroad. Foreign Exchange resources are at its
peak and Foreign Direct Investment is increasing day by day.
Demand and Production of Iron AND Steel has increased in 2006-07 but
prices remained by and large subdued putting pressure on profit margins. Steel
Industry has slowly come out of this temporary reduction in price realizations
and prices are now showing marked improvement. Demand for Iron and Steel
products is bound to increase in coming years due to strong emphasis of the
Government on development of infrastructure in the country.
Foreign steel behemoths like Mittal Steel and POSCO of South Korea AND
all large domestic players have announced plans to set up steel making
facilities in India, which shows that there is a great potential for steel
industry in this country.
PERFORMANCE REVIEW OF THE COMPANY:
The Company has improved its performance in the year 2006-07 compared to
the year 2005-06. The total income has gone up from Rs. 622.000 Millions to
Rs.1992.900 Millions and the net profit after tax from Rs. 34.800 Millions to
Rs.105.400 Millions. Earning Per Share has also increased from Rs. 1.66 in the
year 2005-06 to Rs. 5.03 in the year 2006-07. During the year 2006-07, total
production of Sponge Iron has increased to 43,402 M.T. as compared to 18,243
M.T. in the last year. The Company sold 15,007 M.T. in the open market and
24,851 M.T. of Sponge Iron was captively consumed for steel making. Similarly,
total production of Ingot/Billets has increased to 35,589 M.T. as against last
year's production of 5,476 M.T.
FIXED ASSETS:
- Land
- Factory
Building
- Other than
factory building
- Plant AND
Machinery
- Electrical
Installations
- Office
Equipments
- Computers
- Motor Cars
- Furniture AND
Fixtures
OPPORTUNITIES AND THREATS:
Opportunities abound in growing economies and opening of economy in India
has created opportunities for Indian enterprise to move beyond national
boundaries as well to create productive assets. Presently, the Company is
consolidating its gains out of creating additional production
capabilities.
The Company has already commissioned AND started production from its
Steel Melting Shop of 65,100 MTPA, Sponge Iron Plant of 1,05,000 MTPA, and
Rolling Mill of 1,00,000 MTPA AND the Power Plant of 12.5 MW is at an advanced
stage of implementation. Setting of High Carbon Ferro Manganese plant of 12,325
MTPA is at an early stage of implementation.
Competition in steel industry is escalating and technological changes
will spur or drag the forward march of individual units in steel industry.
Supply side could also be an issue in next few years because of increase in
production capacity by steel industry in India and expression of interest by
foreign companies to setup new steel making units.However, coming years are
also going to witness substantial additions particularly in the Asian regions.
The Company's thrust on improving productivity and reducing cost of production
will, in such a scenario, help in forging ahead in a globally competitive
environment.
OUTLOOK:
The present production capacity of the Company is as under:
Sponge Iron : 1,05,000 MTPA
Steel Melting Shop : 65,100 MTPA
Besides, settings up of following projects will create/enhance
production capacities as mentioned below:
Ferro Manganese Plant : 12,325 MTPA
Re-Rolled Projects : 1,00,000 MTPA
Power Plant : 12.5 MW
The basic aim of the Company is to be able to product Sponge Iron and
Steel Products as per market requirements and be able to manage market trends
to it's advantage.
FINANCIAL MANAGEMENT:
The requirement of funds for projects under implementation is reviewed by
senior management periodically and after assessing the financial market,
decisions are taken to identify the lenders. A part of fund requirement is
arranged by way of borrowing from Banks on competitive terms and balance is met
from internal accruals.
Accounts and Finance department is working at Kolkata AND Factory
establishment and is manned by qualified and experienced personnel.
All financial transactions are properly recorded by the department and
proper financial reports are periodically sent to the senior management. Proper
controls are in place and audit is conducted regularly.
SUBSIDY
- The Company
is registered under the West Bengal
Incentive Scheme 2000 and 2004 of The Director of
Industries, Goverment of West Bengal. Under the said scheme the Company is
entitled to receive Capital Investment Subsidy, Interest Subsidy,
Employment Generation Subsidy, Remission of stamp duty and registration
fee. These shall be accounted for in the year of receipt.
- The Company
has been granted eligibility certificate under the West Bengal Incentives
to Power Intensive Industries Scheme, 2005, promulgated by the Department
of Commerce and Industries, Government of West Bengal, Vide notification
no. 276-Q/0/lncentive/052/05/I dt. 19.05.2005, effective from 1 st April
2004. under the said scheme , the company is entitled to receive Incentive
on energy charges which has been
accounted for in the books on accural basis.
NOTES ON OCCOUNT
1. Contingent Liabilities not provided for in the books of Accounts:
a) In respect of Bills discounted, outstanding as on 31st March, 2007,
amounting to Rs. 134.938 Millions (Previous year- Rs. 5.000 Millions).
b) In respect of Letter of
Credit opened in favour of Suppliers and WBSEB amounting to Rs. 18.500 Milions
(Previous year - Rs. 7.440 Millions) and Bank Guarantee amounting to Rs. 10.000
Millions (Previous year - Rs. 9.000 Millions) against which Rs. 7.125 Millions
(Previous year - Rs. 1.860 Millions) of Fixed Deposits are pledged with
Bankers.
c) Commitments against Capital Expenditure not provided in the accounts
(Net of Advances) Rs. 91.502 Millions ( Previous year - Rs. 304.561 Millions).
2. The company has started the Commercial Production of Sponge Iron and
Billet Division. Re-rolling and Power plants are yet to start commercial
activity, therefor all the related expenses in the nature of administrative
expenses as identified by the management, have been transferred to
Pre-operative Expenses Account. (Refer note no. B-8 hereunder)
3. Interest of Rs. 1.028 Millions (Previous year - Rs. 26.349 Millions)
capitalized during the year as identified for acquisition and construction of
qualifying assets. Rs. 34.324 Millions (Previous year - Rs. 9.961 Millions)
transferred to Pre-operative Expenses as a Borrowing Cost.
4. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured
Loan and Advances are subject to confirmation.
5. In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have a value on realisation in the ordinary course of business,
at least equal to the amount at which they are stated in the accounts.
CMT REPORT
(Corruption, Money Laundering AND 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.42.53 |
|
UK Pound |
1 |
Rs.83.44 |
|
Euro |
1 |
Rs.65.18 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|