MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
VARUN INDUSTRIES LIMITED (w.e.f. April, 2005) |
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Formerly Known
As : |
VARUN CONTINENTAL LIMITED |
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Registered
Office : |
13, Shankheshwar Darshan Co-Operative Society Limited, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
08.03.1996 |
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Com. Reg. No.: |
11-097945 |
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CIN No.: [Company Identification
No.] |
L28990MH1996PLC097945 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV05062B |
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PAN No.: [Permanent Account No.] |
AAACV3069F |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of Stainless Steel, House-ware, Steel-ware Products, Lifestyle
Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 16501000 |
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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 company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Kailash S. Agarwal |
|
Designation : |
Director |
|
Contact No.: |
91-9819909977 |
|
Date : |
25.02.2011 |
LOCATIONS
|
Registered/ Corporate Office : |
13, Shankheshwar Darshan Co-Operative Society Limited, A.G.
Pawar Cross Lane, Byculla (East), Mumbai – 400 027, |
|
Tel. No.: |
91-22-23727400 |
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Mobile No.: |
91-9819909977 (Mr. Kailash Agarwal) |
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Fax No.: |
91-22-23748686 |
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E-Mail : |
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Website : |
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Area : |
3500 sq ft (Approximately) |
|
Location : |
Owned |
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|
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|
Factory 1 : |
Houseware
Manufacturing Plant, Vasai S. No. 14/3, Village
Waliv, Vasai – Vajreshwari Road, Taluka Vasai, Vasai (East), District Thane –
401 208, Maharashtra, India |
|
Tel. No.: |
91-250-2451782/ 2453432 |
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Fax No.: |
91-250-2451781/ 2453434 |
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Factory 2 : |
Stainless Steel
Sheet Re-rolling Mill, E-371, Marudhar
Industrial Estate, Phase II, Basni, |
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Tel. No.: |
91-291-2746622/ 33 |
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Fax No.: |
91-291-2746644 |
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Wind Power Sites
: |
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34, Royal Park Apartments, Flat No.12, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Kiran N. Mehta |
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Designation : |
Founder, Chairman and Managing Director |
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Qualification : |
B.Com |
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|
Name : |
Mr. Kailash S. Agarwal |
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Designation : |
Co - Founder and Managing
Director |
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Qualification : |
B.Com |
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|
Name : |
Mr. Varun K. Mehta |
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Designation : |
Whole Time Director |
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Qualification : |
Post Graduate |
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Name : |
Mr. S. Rajagopal |
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Designation : |
Director |
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Name : |
Mr. S.K. Srivastav |
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Designation : |
Director |
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Name : |
Mr. K.L. Gopalakrishna |
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Designation : |
Director |
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Audit Committee : |
Mr. S. Rajagopal, Chairman Mr. D. K. Mukhopadhyay Mr. S. K. Srivastav Mr. K.L. Gopalakrishna Mr. Kiran N. Mehta |
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Shareholders’/Investors’
Grievances Committee : |
Mr. S. K. Srivastav, Chairman Mr. S. Rajagopal Mr. D. K. Mukhopadhyay |
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Remuneration
Committee : |
Mr. D. K. Mukhopadhyay,
Chairman Mr. S. Rajagopal Mr. S. K. Srivastav |
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Committee of
Directors : |
Mr. Kiran N. Mehta, Chairman Mr. Kailash S. Agarwal |
KEY EXECUTIVES
|
Name : |
Mr. Kiran N. Bade |
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Designation : |
Vice President (Legal) and
Company Secretary |
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Name : |
Mr. Rathnakar Hegde |
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Designation : |
Group Advisor |
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Name : |
Mr. Mayur Doshi |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Rodney Semotiuk |
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Designation : |
Chief Executive Officer
(Global Operations) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 21.02.2011
|
Category of Shareholder |
|
No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
18,920,569 |
64.99 |
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|
18,920,569 |
64.99 |
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Total
shareholding of Promoter and Promoter Group (A) |
18,920,569 |
64.99 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
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|
179,500 |
0.62 |
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|
660,000 |
2.27 |
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|
839,500 |
2.88 |
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|
|
|
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|
5,644,570 |
19.39 |
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|
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|
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|
1,634,823 |
5.62 |
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1,879,112 |
6.45 |
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|
195,371 |
0.67 |
|
|
149,918 |
0.51 |
|
|
45,353 |
0.16 |
|
|
100 |
- |
|
|
9,353,876 |
32.13 |
|
Total Public
shareholding (B) |
10,193,376 |
35.01 |
|
Total (A)+(B) |
29,113,945 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
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|
- |
- |
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Total
(A)+(B)+(C) |
29,113,945 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Stainless Steel, House-ware, Steel-ware Products,
Lifestyle Products. |
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Products : |
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Terms : |
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Selling : |
Cash and Credit (30/ 60/ 90 days) |
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Purchasing : |
Cash and Credit (30/ 60/ 90 days) |
GENERAL INFORMATION
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Customers : |
End Users and OEM’s |
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No. of Employees : |
192 (Approximately) |
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Bankers : |
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Facilities : |
Notes: i) Term Loan
from bank for Vasai Plant is secured by way of first charge on Equitable
Mortgage of Land and Building, Hypothecation of Plant and Machinery purchased
and to be purchased by availing such term loan and personal guarantees of
Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further
secured by second Pari Passu charge on the current assets of the Company. ii) Term Loan
from bank for Jodhpur Plant is secured by way of first charge on Equitable
Mortgage of Land and Building, Hypothecation of Plant and Machinery purchased
and to be purchased by availing such term loan and personal guarantees of
Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further
secured by second Pari Passu charge on the current assets of the iii) Term Loans
from bank for Wind Power Projects are secured by way of exclusive charge on
the Fixed Assets of the Wind Power Project, Fixed Deposits under lien with
bank and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S.
Agarwal. iv) Term Loans
from bank for Oil Rig is secured by way of exclusive charge on the Fixed
Assets of the Oil Rig and personal guarantees of Shri Kiran N. Mehta and Shri
Kailash S. Agarwal. v) Export
Packing Credit and FDBP Credit Limits are secured by first
charge/hypothecation of Stock/inventory, receivables including export
receivables and advances to suppliers of the Company as well as on immovable
properties (shops and flats) owned by its directors and Fixed Deposits under
lien with bank and second Pari Passu charge on Land and Building, Plant and
Machinery of Vasai Plant and Jodhpur Plant and personal guarantees of Shri
Kiran N. Mehta and Shri Kailash S. Agarwal. vi) Cash Credit
Limit of the Company is secured by first charge/hypothecation of
Stock/inventory, receivables including export receivables and advances to
suppliers of the Company as well as on immovable properties (shops and flats)
owned by its directors and Fixed Deposits under lien with bank and second
Pari Passu charge on Land and Building, Plant and Machinery of Vasai Plant
and Jodhpur Plant and personal guarantees of Shri Kiran N. Mehta and Shri
Kailash S. Agarwal. vii) Vehicle
Loans are secured by way of hypothecation of the respective vehicles. viii) Short Term
Loan is secured by first charge on the current assets and second charge on
the fixed assets of plant at Vasai and |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chunnilal and Company Chartered Accountants |
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Address : |
Mumbai |
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Subsidiaries : |
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Enterprises over which Key Managerial person have significant
influence : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22113945 |
Equity Shares |
Rs.10/- each |
Rs.221.139
millions |
|
|
|
|
|
Of
the above:
(1) 15,96,100
Equity shares have been issued as fully paid up for consideration other than
cash
(2)
1,14,73,700 Equity shares have been issued as fully paid up Bonus Shares by
capitalisation of General Reserve
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
221.139 |
221.139 |
221.139 |
|
|
2] Equity Share Warrants |
75.600 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3828.494 |
3577.896 |
3555.837 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
4125.233 |
3799.035 |
3776.976 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7418.508 |
5944.671 |
4196.406 |
|
|
2] Unsecured Loans |
881.298 |
776.587 |
329.688 |
|
|
TOTAL BORROWING |
8299.806 |
6721.258 |
4526.094 |
|
|
DEFERRED TAX LIABILITIES |
96.584 |
97.019 |
97.818 |
|
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|
|
|
|
|
|
TOTAL |
12521.623 |
10617.312 |
8400.888 |
|
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3853.381 |
3150.599 |
3131.569 |
|
|
Capital work-in-progress |
33.998 |
493.189 |
110.705 |
|
|
|
|
|
|
|
|
INVESTMENT |
74.264 |
73.225 |
105.787 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
999.275
|
1012.683 |
1053.823 |
|
|
Sundry Debtors |
6819.271
|
4480.534 |
2759.607 |
|
|
Cash & Bank Balances |
609.239
|
536.284 |
544.358 |
|
|
Other Current Assets |
99.964
|
111.639 |
203.124 |
|
|
Loans & Advances |
1533.711
|
1063.999 |
967.016 |
|
Total
Current Assets |
10061.460
|
7205.139 |
5527.928 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1435.642
|
258.266 |
422.828 |
|
|
Other Current Liabilities |
53.381
|
42.544 |
48.212 |
|
|
Provisions |
12.457
|
4.030 |
4.061 |
|
Total
Current Liabilities |
1501.480
|
304.840 |
475.101 |
|
|
Net Current Assets |
8559.980
|
6900.299 |
5052.827 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12521.623 |
10617.312 |
8400.888 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
15594.300 |
12204.286 |
8895.948 |
|
|
|
Other Income |
(182.580) |
(271.585) |
77.777 |
|
|
|
TOTAL (A) |
15411.720 |
11932.701 |
8973.725 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Good Sold |
13650.801 |
10569.442 |
7873.171 |
|
|
|
Personnel Cost |
134.179 |
105.720 |
83.685 |
|
|
|
Administrative & Other Expenses |
165.220 |
161.867 |
111.575 |
|
|
|
Selling & Distribution Expenses |
110.151 |
233.415 |
136.511 |
|
|
|
TOTAL (B) |
14060.351 |
11070.444 |
8204.942 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1351.369 |
862.257 |
768.783 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
808.561 |
551.102 |
361.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
542.808 |
311.155 |
406.983 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
184.480 |
110.488 |
75.095 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
358.328 |
200.667 |
331.888 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
120.155 |
72.472 |
118.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
238.173 |
128.195 |
213.745 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
457.737 |
483.609 |
201.851 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
33.171 |
22.114 |
33.170 |
|
|
|
Provision for Tax on Dividend |
5.509 |
3.758 |
5.637 |
|
|
|
Transfer to General Reserve |
11.909 |
-- |
21.375 |
|
|
BALANCE CARRIED
TO THE B/S |
645.321 |
457.737 |
355.414 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.77 |
5.80 |
12.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4045.900 |
8858.210 |
7544.320 |
|
Total Expenditure |
3689.730 |
8403.700 |
7251.840 |
|
PBIDT (Excl OI) |
356.170 |
454.510 |
292.480 |
|
Other Income |
32.250 |
14.220 |
48.950 |
|
Operating Profit |
388.420 |
468.730 |
341.440 |
|
Interest |
179.100 |
251.340 |
206.690 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
209.320 |
217.390 |
134.750 |
|
Depreciation |
45.990 |
46.690 |
47.920 |
|
Profit Before Tax |
163.330 |
170.700 |
86.830 |
|
Tax |
47.250 |
46.760 |
42.840 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
116.080 |
123.940 |
43.990 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
116.080 |
123.940 |
43.990 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.55
|
1.07 |
2.38 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.30
|
1.64 |
3.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.58
|
1.94 |
3.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.05 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.38
|
1.85 |
1.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.70
|
23.64 |
11.64 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE REVIEW
A global slow down
was witnessed by the world economy during the last two years; however,
In spite of the
volatile financial and currency markets, the Company achieved a better
performance. Markets improved slowly, but reduction in export incentives had an
adverse impact on export realization. Efforts were made to contain costs, as a
result of which, the Company recorded higher operative profit. It has also
undertaken diversification programmes which will bring about overall growth in
its business and profitability.
With a better
monsoon in the offing, the per capita income is likely to grow, which will have
a positive impact on the business environment.
During the year,
the Company recorded an income of Rs.15411.700 millions, as against
Rs.11932.700 millions in the previous year, representing an increase of 29%.
The profit before tax was higher by 79% at Rs.358.300 millions as against
Rs.200.700 millions for the previous year. The profit after tax at Rs.238.200
millions was higher by 86% as against Rs.128.200 millions for the previous
year.
FINANCIAL
RESOURCES
Convertible Equity
Warrants
On 27th
August 2009, the Board of Directors allotted 70,00,000 warrants convertible into
equal number of equity shares at a price of Rs. 43.20 per warrant. The details
of the said allotment are as under:
|
S. No. |
Names of warrant
allottees |
No. of warrants |
Amount paid per warrant on application (@25% of Rs. 43.20 per
warrant) |
|
1. |
Shri Kiran N. Mehta |
41,40,803 |
Rs.44.721
millions |
|
2. |
Shri Kailash S. Agarwal |
28,59,197 |
Rs.30.879
millions |
|
|
TOTAL |
70,00,000 |
Rs.75.600
millions |
The said warrants can
be converted into equal number of equity shares within 18 months from the date
of allotment. If the option to convert the warrants into equity shares is not
so exercised, the money paid on application shall be forfeited. The application
money was utilised for the purpose for which it was raised, namely, working
capital requirements.
Utilization of
internal accruals and IPO proceeds
The Company had,
vide its Prospectus dated 9th October 2007, made an Initial Public Offering
(IPO) of 90,00,000 Equity Shares of the face value of Rs. 10/- each at a
premium of Rs. 50/- per share. The amount of internal accruals and IPO proceeds
was finally utilised as follows, for which, the approval is being sought at the
Forthcoming Annual General Meeting:-
(Rupees in millions)
|
S. No. |
Particulars |
Utilization–Projected,
as per Prospectus |
Utilization–Actual,
as on 31-3-2010 |
|
i. |
the domestic markets |
100.000 |
64.750 |
|
ii.. |
Margin money for Working Capital requirements |
407.400 |
396.702 |
|
iii. |
Public Issue Expenses |
45.000 |
55.017 |
|
iv. |
Investments/Deposits/Working capital |
-- |
36.000 |
PROJECTS
Stainless Steel Kitchenware/Houseware
Manufacturing Plant and Warehouse Project
At the
state-of-the art manufacturing facility set up by the Company at Vasai, further
expansion of the facilities is being undertaken. This will allow the Company to
focus more on customization and enhancement of quality and also improve upon
the supply chain efficiency which is very vital to give the Company a
competitive edge in the export market.
The Retail
division is re-inventing itself to be more cost effective and to widen its
exposure pan
Backward
Integration Projects
The second phase
of expansion was successfully implemented at the Company’s Steel Re-Rolling
Plant at
As a step towards
further backward integration, the Board of Directors have approved setting up a
new state-of-the-art Stainless Steel cum Alloy steel complex at Rohat, Jodhpur
to manufacture flats, structurals, angles, rounds, wire rods, channels and long
products. The plant will be set up in two phases. The cost of the first phase
is estimated at Rs.2300.000 millions, which will have a capacity of 1,20,000 MT
per annum. Land to the extent of 150 acres has already been acquired and at
present actions have been initiated to obtain various licenses and approvals.
Bagalkote,
Karnataka
The Company had
made an application to the Government of Karnataka to set up a Steel Plant at
Bagalkote, which was approved at a high level Steering Committee of the
Government. The cost of the Plant is estimated at Rs.3040.000 millions. The
Government of Karnataka has also allotted to the Company land admeasuring 500
acres at Bagalkote to set up the unit.
The Company is committed
to optimize on its core area of competence which is steel and these plants will
catapult it into the elite league of large steel manufacturers.
Power Generation
Wind power
generation resulted in income of Rs.28.200 millions during the year. The Company
plans to set up a few more windmills during the year.
The Memorandum of
Understanding signed with the Government of Karnataka for setting up a plant
there makes the Company eligible for preferential allotments of mining licenses
in the state of Karnataka.
Oil and Natural
Gas
The charter hire
contract for a mobile drilling rig with ONGC is running smoothly. Maintenance
contract with ONGC for Ankleshwar and Karaikal sites is also running smoothly.
The Company is making efforts to secure business from ONGC, GAIL and IOC for
supply of materials and services.
International
Ventures
The Varun Group
has understood that to grow, it must cross boundaries and look at emerging
economies for opportunities. In order to acquire major interest in the areas of
uranium, oil and natural gas, the Company has recently set up three
subsidiaries in
• Varun Holdings
Limited
• Varun Mines and
Minerals Limited
• Varun Petroleum Limited
Varun Petroleum
Limited,
SARL,
Varun Mines and
Minerals Limited has entered into Agreements to acquire majority shares in
Madagascar Energy
Corporation and Varun International SARL,
Uranium prospects
The Varun Group
has acquired majority shares in certain companies which are engaged in
exploration, exploitation and out-put sale of 1,011 blocks (100 in process)
covering about 6,900 sq. kms., with estimated reserves of 17,00,000 tons of
uranium, 43,50,000 tons of thorium and traces of gold and gems.
The preliminary
research work has been completed and the evaluation of reserves will commence
shortly. The Group is optimistic of completion of the exploration phase before
the estimated 3-5 years.
The demand for
uranium is outstripping supply and the continuous need for alternative fuels to
meet the tremendous energy demands has resulted in several companies across the
world racing to be part of uranium exploration in the few remaining mineral rich
countries.
Oil and Natural
Gas Prospects
Varun Group has
acquired majority shares in certain companies which have acquired block 3101
covering about 6,800 sq. kms. in the highly prospective
Joint Venture in
the
Recently, it has
been decided to form a Joint Venture company by the name Varun Sp. Zoo in the
SUBSIDIARY
COMPANIES
Earlier, the
Company had four subsidiaries in India, viz., Varun Jewels Private Limited,
Shri Sai Jewels Private Limited, Varun Petroleum Corporation Private Limited
and Varun Minerals Corporation Private Limited. Recently, the Company acquired
the entire equity share capital of Nagina Hotel Private Limited, thereby making
it a wholly owned subsidiary. The said company was amalgamated with the Company
w.e.f. 1st January 2010, as per the orders of the Hon’ble Bombay High Court.
The Company has
three wholly owned subsidiaries in
Varun Petroleum
Limited,
EQUITY SHARE
WARRANTS
In terms of
approval of the members of the Company and as per applicable statutory
provisions including SEBI (Disclosure and Investor Protection) Guidelines 2000,
the Company on 27th August 2009, has issued 70,00,000 Equity Share Warrants on
preferential basis to promoters entitling them to apply for equivalent number of
fully paid up equity shares of Rs. 10/- each of the Company, at a price of Rs.
43.20 per equity share. The warrant holders have a right to apply for equity
shares within18 months from the date of allotment of such equity share
warrants. Subscribers have deposited non-refundable amount of Rs.75.600
millions, equivalent to 25% of total consideration which is shown as Equity
Share Warrants in the Balance Sheet, pending exercise thereof.
The amount so
received has been utilized for the purpose for which it was raised, namely,
working capital requirements of the Company.
AMALGAMATION
(i) During the
year, the Company has amalgamated with itself it’s wholly owned subsidiary viz.
Nagina Hotel Private Limited vide scheme of Amalgamation w.e.f. 1st
January 2010. The said scheme of Amalgamation has been approved by the
Honorable High Court of Mumbai vide it’s order passed on 25th June 2010. All
the assets and liabilities of the said subsidiary have been vested with the
Company at Book Values and the same have been accounted for in accordance with
AS-14 “Accounting for Amalgamations” issued by the Institute of Chartered
Accountants of India.
(ii) Current year
figures are after amalgamation of its 100% subsidiary (Nagina Hotel Private
Limited) w.e.f. 1st January 2010. Previous year figures are not comparable to
that extent.
MANAGEMENT DISCUSSION AND ANALYSIS
Overview
Subject has
evolved into a global conglomerate with several associate companies and multidimensional
business interests that include energy - oil, natural gas, uranium and wind,
mining, gems and jewelry, agro products and trading, besides its area of core
competence - stainless steel cookware, houseware, kitchenware, tableware etc.
The Company’s
strength is in steel and it has grown from manufacturer of steel ware to also
manufacturing stainless steel raw materials (sheets). Further, it has plans to
set up plants to manufacture flats, rounds and angles. The initiative is a part
of the Company’s backward integration plan to be self sufficient in raw
material supply and thereby improve its competitive edge in terms of quality
and pricing which would catapult the Company into the league of major steel
manufacturers.
The Company made
its foray into oil and natural gas as a supplier of rig, drilling, maintenance,
workover and related services to large oil and gas companies. Varun Petroleum
Limited,
Industry Structure
and Development
Stainless steel
has now found new usage in areas like infrastructure, public transport,
automobiles etc. and continues to replace less durable products resulting in
substantial increase in demand for stainless steel raw materials like flats,
angles and rounds. Indian stainless steel products (cookware, kitchenware,
tableware, houseware and hospitality, gifts and other items) are now preferred
to Chinese products due to better quality and delivery schedules, resulting in
growing demand from international markets.
Exploration and
production of oil and gas is critical for
Outlook, Risks and
Concerns
The Company has
the capability of producing stainless steel ware to suit the budgets and tastes
of customers across the globe and hence is optimistic of growth in both exports
and domestic market. It also enjoys customer loyalty and a large percentage of
its export business comes from long standing customers.
With expansion of
its Re-rolling Stainless Steel Plant and setting up of new steel plants in
Rajasthan and Karnataka, the Company will be less vulnerable to fluctuations in
raw material prices, quality or supply. With steel usage spiraling, the Company
is confident of good sales for the flats, angles, rounds and other value added
products scheduled to be manufactured.
Varun Group has an
excellent alliance with the
FIXED ASSETS:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture, Fixtures and
Office Equipments
·
Computer
·
Vehicles
·
Oil Rig
·
Wind Power Project
UN-AUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2010
(Rs.
in millions)
|
Particulars |
Quarter Ended 31.12.2010 |
None Months Ended 31.12.2010 |
|
1. Net Sales / Income from operations |
7544.323 |
20466.545 |
|
2.
Expenditure |
|
|
|
a) (Increase) / Decrease in stock in trade and work in
progress |
29.979 |
61.366 |
|
b) Consumption of raw materials |
303.588 |
920.171 |
|
c) Purchase of traded goods |
6782.227 |
17962.016 |
|
d) Employees cost |
36.282 |
110.106 |
|
e) Depreciation |
47.919 |
140.594 |
|
f) Other expenditure |
99.765 |
291.608 |
|
Total |
7299.760 |
19485.861 |
|
3. Profit from operations before other income, interest
and exceptional Items (1-2) |
244.563 |
980.684 |
|
4. Other income |
48.954 |
77.313 |
|
5. Profit before interest and exceptional Items (3+4) |
293.517 |
1057.997 |
|
6. Interest and other financial expenses |
206.689 |
637.131 |
|
7.
Profit after Interest but before Exceptional Items (5-6) |
86.828 |
420.866 |
|
8. Exceptional Items |
0.000 |
0.000 |
|
9.
Profit (+)/Loss(-) from Ordinary Activities before tax (7+8) |
86.828 |
420.866 |
|
10. Tax expense |
42.839 |
136.855 |
|
11.
Net Profit (+)/Loss(-) from Ordinary Activities after Tax
(9-10) |
43.989 |
284.011 |
|
12. Extraordinary Items (net of tax expenses) |
0.000 |
0.000 |
|
13. Net Profit (11-12) |
43.989 |
284.011 |
|
14. Paid up equity share capital (Face value of Rs.10/-
per share) |
221.139 |
221.139 |
|
15. Reserves excluding revaluation reserves as per balance
sheet of previous accounting year |
-- |
-- |
|
16. Earning per share (EPS) |
|
|
|
(a)
Basic |
1.99 |
12.84 |
|
(b)
Diluted |
1.99 |
12.84 |
|
17. Public shareholding |
|
|
|
Number of shares |
7662576 |
7662576 |
|
Percentage of shareholding |
34.65% |
34.65% |
|
18. Promoters and Promoters group Shareholding- |
|
|
|
a) Pledged /Encumbered |
|
|
|
Number of shares |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
Nil |
Nil |
|
Percentage of shares (as a % of total share capital of the
company) |
Nil |
Nil |
|
b) Non Encumbered |
|
|
|
Number of shares |
14451369 |
14451369 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100% |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
65.35% |
65.35% |
(Rs.
in millions)
|
Particulars |
Merchandise |
Petroleum/ Rig Hire |
Wind Power |
Total |
|
Revenue |
|
|
|
|
|
External Sales |
20373.188 |
75.516 |
17.841 |
20466.545 |
|
Inter Segment Sales |
-- |
-- |
-- |
-- |
|
Other Income |
77.313 |
-- |
-- |
77.313 |
|
Total Revenue |
20450.514 |
75.516 |
17.841 |
20543.858 |
|
|
|
|
|
|
|
Segment Results
(PBIT) |
1026.994 |
26.453 |
4.550 |
1057.997 |
|
Interest Expenses |
|
|
|
637.131 |
|
Income Tax |
|
|
|
136.855 |
|
Net Profit After
Tax |
|
|
|
284.011 |
|
|
|
|
|
|
|
Other
Information |
|
|
|
|
|
Segment Assets |
20222.909 |
285.432 |
438.725 |
20947.066 |
Notes:
1. The above results have been reviewed by the Audit Committee and approved
by the Board of Directors at their meeting held on Monday, 14th
February 2011.
2. The Statutory Auditors have carried out limited review of the above
results as required by Clause 41 of the Listing Agreement.
3. During the quarter, two investor complaints were received and
resolved. No investor complaint was pending either at the beginning or at the
end of the quarter.
4. The Company has opted for accounting the exchange difference of long
term foreign currency monetary items in line with Companies (Accounting
Standards) Amendment Rules 2009 notified on 31st March 2009.
Accordingly, the net exchange gain of Rs.0.187 million for the period ended on
31.12.10 relating to long term foreign currency monetary items has been added
to the cost of respective fixed assets.
5. Figures for the previous year have been regrouped, wherever
necessary, to correspond with those of the current year.
WEBSITE DETAILS:
PROFILE:
Subject has evolved from being India's steelware exporter to a highly
proactive multi-dimensional global conglomerate with business interests that
include steelware and steel raw materials, oil and natural gas, wind energy,
uranium, mining, gems and jewellery.
Established in 1989 as a small trading house it was incorporated as
Varun Continental Limited in March 1996 and changed to Varun Industries
Limited in April 2005.
An ISO 9001: 2008 company, Varun was listed in November 2007 on both
Bombay Stock Exchange and National Stock Exchange and has featured in the
list of Top 500 Indian companies in both 2008 and 2009 compiled by Dun and
Bradstreet , Economic Times and other reputed agencies. More important,
the group is currently touted as among the 50 fastest moving mid sized
Indian companies.
The Varun brand of stainless steel cookware, kitchenware, houseware and
other utility items is associated with quality, exclusivity and cost
effectiveness earning for it an iconic status as a premium steelware exporter
and consistently winning awards and accolades from the
Government, Federation of Indian Export Organizations and Export Council.
A range of over 1800 items is available. Varun has its own trading and
representative offices in several countries and designs have been customized
for specific budgets, cultures and countries in close consultation with buyers
across the world.
Success in international markets and the tremendous potential of the
Indian market encouraged the Company to move into the domestic
market under the brand name Premium
Kitchenware and More. The Company has several stores across
Varun’s Manufacturing Plants
To increase customer delight through impeccable quality,
service and cost effectiveness, Varun set up a state-of the art
finished products’ manufacturing and warehousing plant in Vasai , Maharashtra
and a stainless steel re-rolling plant in
Energized Growth
Since 2006, energy has been seen as an area of sustainable growth.
Varun provides efficient rig drilling and integrated work over services
including charter, hiring of drilling rigs and maintenance to leading Indian
and global oil and natural gas companies. The Group has now evolved from a
supplier of services to acquiring its own Oil and Natural Gas blocks and
Uranium blocks in
Wind turbine generators have been set up in Jaisalmer, Rajasthan
and expansion is planned in this area.
Mr. Kiran Mehta, CMD and Mr. Kailash Agarwal MD , founders of Varun are
the driving force behind the Group ably guided by an experienced Board of
directors comprising veterans from diverse fields and assisted by a highly
qualified Management team of professionals.
The Group is determined to explore the limitless possibilities beyond
core competencies and boundaries to ensure value addition throughaccelerated
growth for itself and its stakeholders.
Mr. Kiran N. Mehta
Founder, Chairman and Managing Director
Hailing from a well known business family of Rajasthan, Mr. Kiran Mehta
is a new age entrepreneur blessed with innate business acumen, tremendous
foresight, an indomitable will and a commitment to excel.
It is no exaggeration to consider him as the man with a Midas
touch as he has authored several success stories in the most diverse and
difficult areas. A man of action he firmly believes in the quote "
dream without vision is a nightmare and to dream without action is just a day
dream".
A Commerce Graduate, he looks after the Asset Management of the company
and has been successful in sustaining growth even during times of economic
slowdown. A finger constantly on the pulse of change, he is a firm
believer in being alert and seizing opportunities to convert to sustainable and
profitable businesses.
He is mainly responsible for taking the company beyond steel and
beyond India and putting the company on the list of India's top 500 companies
two years in a row.
It is primarily his efforts that have taken the Group into Madagascar
and to venture into highly profitable but prestigious acquirements of uranium,
oil and natural gas, precious metal and gems.
His meticulous eye for detail and commitment to quality has won the
company accolades and awards for Exports quality and service as well as
personal recognition and awards for excellent entrepreneurship.
He is known in business circles for his integrity, transparency , high
ethics ,commitment to convictions and belief in his team. A strict
disciplinarian with focus on value creation through hard work and honesty, he
is a role model for his team and ensures that every single employee conforms to
this dedication to quality and service that surpasses expectations. A
strong practitioner of macro management, Mr Mehta empowers his second and third
line managers to work independently and contribute creatively. A
philanthropist, he has supported social causes in his personal capacity and has
set up a family foundation to ensure that the less fortunate in the rural
areas of Rajasthan receive support. Social Responsibility is top priority with
Mr. Mehta and he strongly believes in value beyond profit. His alliance
with the Republic of Madagascar goes beyond business as he is committed to partner
with the government in its efforts to raise the GDP of the island and alleviate
poverty through providing job opportunities and improving the quality of life.
Varun's initiatives in wind energy and acquiring of uranium
reserves are part of Mr. Mehta's commitment to contribute to a clean planet.
BOARD OF DIRECTORS:
Mr. Kailash S. Agarwal
Co - Founder and Managing Director
Known in business circles for his impeccable business acumen, diplomatic and networking skills, Mr. Agarwal has a dynamic and warm personality which endears him to the team. A Commerce Graduate, he attributes his success to real time hands on experience in every intricacy of the steel business from an early age and in setting up of new projects and plants.
A connoisseur of good taste with an impeccable sense of aesthetics he is
responsible for several customized products. He believes in out of the
box thinking and is responsible for several innovations that have helped Varun
create new benchmarks in various areas of activity. He is very involved with
building the corporate image of the group and for adding on new ideas and lines
of activity.
A philanthropist, Mr. Agarwal primarily supports social causes in
his hometown Rajasthan . He is also a founder member of the Epilepsy
foundation of India an organization that seeks to eliminate the affliction
through education, treatment and support. His contributions to society and the
industry have been recognized and awarded over the years.
A man with diverse business interests, Mr Agarwal is now Honorary
Counsel for Macedonia in Maharashtra, an honour since it is testimony of the
government's faith in his diplomatic abilities to promote the good ties between
the countries.
Mr. Varun K. Mehta
Whole Time Director
The heir of a family of self-made business entrepreneurs, he has at a
young age several breakthrough achievements to his credit. He has for
several years headed the Group’s operations in China and Middle East and is
personally responsible for streamlining and strengthening the international
marketing of the Varun Group through innovative ideas , flexibility
and speed of execution. His ability to speak Arabic and Chinese have enabled
him to get an indepth knowledge of the needs and working styles of these
countries.
Management Graduate, he is blessed with a dynamic personality
complemented by independent thinking, foresight and optimism and is committed
to make the seemingly impossible possible through hard work and dedication.
Worked and Appreciated by the Red Cross Society. Supports several
charities in his personal capacity.
Mr. S. Rajagopal
Director
Shri S. Rajagopal, former Chairman and Managing Director, Bank of India
has contributed immensely to the improvement of the Indian Banking system.
Having been on the board of various Corporate and development funds of India
and abroad, Shri Rajagopal has in depth knowledge of Commerce, Industry,
Finance and Insurance. Shri Rajagopal is also an Advocate with specialization
in Company matters.
Shri Rajagopal has a brilliant academic record and holds a Master’s
degree in Economics, Degrees in Commerce and Law, besides professional
qualification from Indian Institute of Bankers. As the Chairman of Committee of
Economists of Indian Banks Association, he conducted studies on industries such
as tyre, sugar, granite, electronics and film industry among others. He is
closely associated with Academics and is currently a member of the Court of
Banaras Hindu University.
He is the Chairman of the Audit Committee and member of the
Shareholders’ / Investors’ Grievances Committee and the Remuneration Committee
of the Company.
Mr. S.K. Srivastav
Director
Shri Satish Kumar Srivastav, is a Science graduate and has acquired a
degree in business management and a master’s degree in law. He is a practicing
Solicitor at Bombay High Court, Delhi High Court, Supreme Court of India and
Supreme Court of England and Wales. He has vast experience in Civil, Corporate
Writ and Commercial matters. He is a member of Supreme Court Bar Association of
India, Law Society of England and Wales, International Bar Association and
International Council of Alternative Dispute Redressal. He is required to
travel widely in connection with his profession.
Mr. Satish Kumar Srivastav is a practising solicitor at Bombay High
Court, Supreme Court of India and Supreme Court of England and Wales.
He is the Chairman of the Shareholders’/Investors’ Grievances Committee
and member of the Remuneration Committee and Audit Committee of the Company.
Mr. K.L. Gopalakrishna
Director
Mr. K.L. Gopalakrishna, a former Executive Director of Corporation Bank,
has a very rich and diversified experience in the Banking Sector spanning about
four decades.
Mr. Gopalakrishna, a commerce graduate with a degree in Law also holds CAIIB
from the Indian Institute of Bankers.
He has valuable and versatile experience in the fields of Banking, Human
Resource Development and vigilance, apart from overall management of Banking
Institutions.
During his tenure with Corporation Bank, business of the Bank nearly
doubled and it was adjudged as one of the best Public Sector Banks.
Prior to Corporation Bank, he worked with Union Bank of India for about
34 years in various capacities at major Centres and held important assignments.
Key Personnel
Mr. Rathnakar Hegde
Group Advisor
Rich experience of 34 years in the banking field handling a gamut of
very important and sensitive portfolios including that of Executive Director in
Union Bank.
Mr. Mayur Doshi
Chief Financial Officer
A Management Graduate, he has rich experience of almost two decades in
all facets of Finance and is intimately involved in the company's Strategic and
Corporate Planning.
Mr. Rodney Semotiuk
CEO (Global Operations)
A graduate of the University of Alberta and has a Bachelor of Arts
Degree in Economics and Political Science.
Previously held senior positions in energy sector with over 20 years of
experience in technology development and commercialization
Focuses on building strategic partnerships, including the introduction and
transfer of advanced technologies to emerging markets via joint-ventures and
supplier relationships
MANUFACTURING
FACILITIES
The Varun brand has a
reputation for stringent quality and exclusivity of designs. The
customization of products is possible since the company has a full fledged
manufacturing set up complete with Designing Labs, R and D and Quality
Control. To rationalize costs the company has gone in for backward
integration by setting up a Steel Re – Rolling Plant.
Vasai Plant –
(Finished Products – Installed Capacity 30,000 MT per annum)
Sprawled over 10 acres of land in
Vasai (outskirts of Mumbai, Maharashtra State) plant plus warehouse has
been operational since September 2007 has helped improve operational
efficiency, in the area of manufacturing and inventory control.
· Integrated services from R and D to moulding, cutting, bronzing, packaging, warehousing and despatch all under one roof.
· Warehousing facilities are designed to enable simultaneous loading and unloading of 30 containers.
· The location (proximity to air, land and specially port) supports their impeccable logistics and delivery schedules.
· Impressive export and retail showrooms for product display.
· Well appointed conference rooms and visitor rooms
· Designed to facilitate brainstorming and interaction between personnel from different divisions for optimum results
· In-house Residential facility for large number of employees.
· The facility has its own helipad ready for use
AWARDS AND RECOGNITIONS
FIEO “Niryat Shree” Award for the year 2005-2006 Awarded by Hon’ble President of India, Smt Pratibha Devi Singh Patil
FIEO “Niryat Shree” Award Certificate for the year 2005-2006.
FIEO “Niryat Shree” Award for the year 2005-2006 Awarded by Hon’ble President of India, Smt Pratibha Devi Singh Patil
FIEO “Niryat Shree” Award Certificate for the year 2005-2006.
EEPC "Star Performer" Award for the year 2005-2006 Awarded by Hon’ble Shri Kamalnath, Minister of Commerce and Industry, Govt. Of India.
EEPC "Star Performer" Award Certificate for the year 2005-2006.
FIEO “Niryat Shree” Award for the year 2004-2005 Awarded by Hon’ble Shri Kamalnath, Minister of Commerce and Industry
FIEO “Niryat Shree” Award Certificate for the year 2004-2005.
FIEO “Niryat Shree” Award for the year 2004-2005 Awarded by Hon’ble Shri Kamalnath, Minister of Commerce and Industry
FIEO “Niryat Shree” Award Certificate for the year 2004-2005
FIEO “Niryat Shree” Award for the year 2004-2005 Awarded by Hon’ble Shri Kamalnath, Minister of Commerce and Industry
FIEO “Niryat Shree” Award Certificate for the year 2004-2005.
EEPC Star Performers award for the year 2004-05 awarded by Hon'ble Shri Kamalnath, Union Minister of Commerce and Industry
EEPC Star Performers Award Certificate for the year 2004-05.
EEPC Top Exporters Award for the year 2003-04 awarded by Hon'ble Shri Kamalnath, Union Minister of Commerce and Industry
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Top Exporters Award Certificate for the year 2003-04.
EEPC Top Exporters Award for the year 2002-03 awarded by Hon'ble Shri S. M. Krishna, Minister of Commerce and Industry
EEPC Top Exporters Award Certificate for the year 2002-03.
EEPC Top Exporters Award for the year 2001-02 awarded by Hon'ble Shri S. M. Krishna, Minister of Commerce and Industry
EEPC Top Exporters Award Certificate for the year 2001-02
FIEO Top Exporters "Niryat Shree" Trophy for the year 2000-01 awarded by Hon'ble Shri Bhairon Singhji Shekhawat, Vice President of India.
FIEO Top Exporters "Niryat Shree" award certificat for the year 2000-01.
EEPC Exporter Excellence Award for the year 2000-01 awarded by Hon'ble Shri Arun Jetli, Minister of Commerce and Industry
EEPC Exporter Excellence Award Certificate for the year 2000-01.
EEPC Exporter Excellence Award for the year 1999-2000 awarded by Hon'ble Shri Omar Abdulla, Minister of Commerce and Industry
EEPC Exporter Excellence Award Certificate for the year 1999-2000.
EEPC Top Exporters Award for the year 1998-99 awarded by Hon'ble Shri Omar Abdulla, Minister of Commerce and Industry
EEPC Top Exporters Award Certificate for the year 1998-99.
EEPC Exporter Excellence Award for the year 1998-99 awarded by Hon'ble Shri Murasoli Maran, Union Minister of Commerce and Industry
EEPC Exporter Excellence Award Certificate for the year 1998-99.
National Export Award for the year 1998-99 awarded by Hon'ble Shri Atal Bihari Vajpayee, Prime Minister of India.
National Export Award Certificate for the year 1998-99.
Best Exports Award for
Best Exports Award Certificate
for
National Export Award for the year 1997-98 awarded by Hon'ble Shri Atal Bihari Vajpayee, Prime Minister of India.
National Export Award Certificate for the year 1997-98.
EEPC Exporter Excellence Award for the year 1996-97 awarded by Hon'ble Shri Ram Krishna Hegde, Union Minister of Commerce.
EEPC Exporter Excellence Award
Certificate for the year 1996-97.
SUBSIDIARIES
Varun has diversified from steelware , its area of core competence, to several high growth areas to ensure sustainable profits either directly or through its subsidiary companies.
Varun Jewels Private Limited and Shri Sai Jewels Private Limited are two subsidiaries involved in the manufacturing, marketing, selling and trading of polished gems, diamonds, pearls , stones, jewellery, coins, bullions, antiques, manuscripts etc. in India and abroad.
The Gems and Jewellery Council expects the industry to touch new heights this year. With a steady 20% + growth rate this business is a profitable venture with good opportunities
Varun initially served the industry, in India and across borders, through its petroleum division but accelerating business prospects have motivated it to set up a 100% subsidiary – Varun Petroleum Corporation Private Limited. The company offers integrated services for all phases upstream , midstream and downstream and also tailor made solutions in the field of oil, drilling and work over services on outsourced or collaborative basis.
Varun Minerals Corporation Private Limited is a 100 % subsidiary of Subject engaged in the business of mining. The company aims at expanding into iron ore mining and exports.
Varun also holds 30% shares in Sai Shree Mines a Bangalore based company with mining interests in Karnataka.
Effective August 2009, the company incorporated three wholly owned subsidiaries in Mauritius
· Varun Holdings Limited,
· Varun Mines and Minerals Limited,
· Varun Petroleum Limited.
Varun Mines and Minerals
Limited has acquired majority shares in Varun International SARL,
Varun Petroleum
Limited has acquired majority shares in Varun Petroleum SARL,
The above is in compliance with Clause 36 of the Listing Agreement.
NEWS AND UPDATES
VARUN
GROUP IN JV WITH CLUFF RESOURCES PACIFIC
Madagascar Energy Corporation SARL based
in
Varun Mines and Minerals Limited based at
Cluff Resources Pacific NL, having its registered office in
In the above agreement the exploration, exploitation and marketing of the gold,
platinum and precious metals are covered. The exploration process has two
phases on completion of which the exploitation will begin. The agreement
is expected to result in substantial gain for Subject taking the Group to
new heights of value creation.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.99 |
|
|
1 |
Rs.73.23 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.