MIRA INFORM REPORT
|
Report Date : |
02.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
ADHUNIK METALIKS LIMITED (w.e.f 09.08.2005) |
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Formerly Known As : |
NEEPAZ METALIKS LIMITED (w.e.f 18.02.2004) NEEPAZ METALIKS PRIVATE LIMITED |
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Registered Office : |
14 N S Road, 2nd Floor, Kolkata – 700 001, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
20.11.2001 |
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Com. Reg. No.: |
21-093945 |
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CIN No.: [Company
Identification No.] |
L28110WB2001PLC093945 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RCHN00117F |
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PAN No.: [Permanent
Account No.] |
AABCN5676P |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufactures a wide variety of Special Steel of International
Quality for different applications in Automobile, Construction and Engineering. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 24000000 |
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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 having fine
track. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
14 N S Road, 2nd Floor, Kolkata – 700 001, West |
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Tel. No.: |
91-33-22428551/8553 |
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Tele Fax No. : |
91-33-22428553 |
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Fax No.: |
91-33-22428551 |
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E-mail : |
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Website : |
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Head Office : |
2, |
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Tel. No.: |
91-657-2227001/7224 |
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Fax No.: |
91-657-2227980 |
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Corporate Office : |
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Tel. No.: |
91-33-30517100 (30 Lines) |
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Fax No.: |
91-33-22890285 |
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E-Mail : |
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Factory : |
Chadri Hariharpur, Kuarmunda,
Dist: Subdargarh, Orissa – 770039, |
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Tel. No.: |
91-661-3051300/2586001-04 |
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Fax No.: |
91-661-2586005 |
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Branch Offices : |
Located at:
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DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Ghanshyamdas Agarwal |
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Designation : |
Chairman |
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Date of Birth/Age : |
16.10.1957 |
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Name : |
Mr. Jugal Kishore Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
05.10.1951 |
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Name : |
Mr. Nirmal Kumar Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
11.11.1962 |
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Name : |
Mr. Mohanlal Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
10.05.1964 |
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Name : |
Mr. Mahesh Kumar Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
10.05.1966 |
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Name : |
Mr. Nihar Ranjan Hota |
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Designation : |
Director |
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Name : |
Mr. Lalit Mohan Chatterjee |
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Designation : |
Director |
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Name : |
Mr. Manoj Kumar Agarwal |
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Designation : |
Managing Director |
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Date of Birth/Age : |
06.08.1969 |
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Name : |
Mr. Ram Gopal Agarwal |
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Designation : |
Director |
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Name : |
Mr. Nandanandan
Mishra |
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Designation : |
Director |
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Name : |
Mr. Makhan Lal
Majumdar |
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Designation : |
Director |
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Name : |
Mr. Surendra
Mohan Lakhotia |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anand Sharma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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11,103,634 |
8.99 |
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57,459,667 |
46.53 |
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68,563,301 |
55.52 |
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Total shareholding of Promoter and Promoter Group (A) |
68,563,301 |
55.52 |
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(B) Public Shareholding |
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|
|
|
|
|
9,249,750 |
7.49 |
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|
4,342,366 |
3.52 |
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16,284,896 |
13.19 |
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29,877,012 |
24.19 |
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|
|
|
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6,072,804 |
4.92 |
|
|
|
|
|
|
6,107,152 |
4.95 |
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|
6,979,008 |
5.65 |
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|
5,900,259 |
4.78 |
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|
233,536 |
0.19 |
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|
202,543 |
0.16 |
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|
1,000 |
- |
|
|
5,463,180 |
4.42 |
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|
25,059,223 |
20.29 |
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Total Public shareholding (B) |
54,936,235 |
44.48 |
|
Total (A)+(B) |
123,499,536 |
100.00 |
|
(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) |
123,499,536 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufactures a wide variety of Special Steel of International
Quality for different applications in Automobile ,Construction and
Engineering. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production In
MT |
|
Sponge Iron |
Tonnes |
300000 |
199658 |
|
Pig Iron |
Tonnes |
213792 |
170310 |
|
Billets |
Tonnes |
445400 |
332254 |
|
Rolled Product |
Tonnes |
220000 |
152266 |
|
Silco and Ferro Alloys |
Tonnes |
46880 |
26848 |
|
Oxygen Gas |
M. Cu. |
35972000 |
26225625 |
|
Sinter |
Tonnes |
267300 |
209526 |
|
By-Product |
Tonnes |
-- |
531107 |
|
Trading Goods |
Tonnes |
-- |
41227 |
|
Miscellaneous |
Rupees |
-- |
-- |
Notes:
a) Licensed capacity is not applicable as the industry is delicensed
b) Installed Capacity is as certified by the Management and relied upon by the Auditors.
c) Include Production 45,134 MT ( 18,397 MT ) of Conversion Agent
d) After adjusting shortages
e) Include Trial Run Stock
f) Excludes materials captively consumed
g) Excluding own consumption / transferred to Raw Material
after rescreening
GENERAL INFORMATION
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Alliances : |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountants |
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Subsidiaries : |
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Partnership Firm (Joint Venture) : |
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Other Related Parties : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1452000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1451.800 millions |
|
2000 |
Preference Shares |
Rs. 100/- each |
Rs. 0.200 Million |
|
|
Total |
|
Rs. 1452.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
123499536 |
Equity Shares |
RS. 10/-
each |
Rs. 1234.995
millions |
|
|
|
|
|
|
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Total |
|
Rs. 912.312 millions |
Note:
1. 12,59,590 and 27,73,732
Equity Shares of Rs. 10 each issued to the shareholders of Vedvyas Ispat
Limited and Sri M.P. Ispat and Power Private Limited respectively under scheme
of amalgamation approved by the court dated 16.12.2009 and 16.09.2009
respectively.
2. 8,545,152 shares
issued and allotted as fully paid up Bonus shares by capitalisation of
Securities Premium and 4,000,000 shares issued for consideration other than
cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
30.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1234.995 |
912.312 |
912.312 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Share Warrants |
0.000 |
251.201 |
131.101 |
|
|
3] Reserves & Surplus |
4920.048 |
2005.587 |
2186.154 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
6155.043 |
3169.100 |
3229.567 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9726.964 |
9228.802 |
6663.150 |
|
|
2] Unsecured Loans |
2457.859 |
3983.283 |
2232.920 |
|
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TOTAL BORROWING |
12184.823 |
13212.085 |
8896.070 |
|
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DEFERRED TAX LIABILITIES |
1342.399 |
994.119 |
635.517 |
|
|
|
|
|
|
|
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TOTAL |
19682.265 |
17375.304 |
12761.154 |
|
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|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
13099.542 |
8604.170 |
4957.601 |
|
|
Capital work-in-progress |
355.903 |
1927.629 |
2997.802 |
|
|
Capital Expenditure |
24.722 |
651.313 |
518.870 |
|
|
|
|
|
|
|
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INVESTMENT |
2060.699 |
1781.100 |
1386.580 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4469.501
|
3723.522
|
2821.800 |
|
|
Sundry Debtors |
2061.516
|
1134.814
|
2160.560 |
|
|
Cash & Bank Balances |
995.388
|
855.011
|
479.848 |
|
|
Other Current Assets |
1485.866
|
132.944
|
62.487 |
|
|
Loans & Advances |
23.235
|
1902.478
|
772.082 |
|
Total
Current Assets |
9035.506
|
7748.769
|
6296.777 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1803.932
|
1395.253
|
|
|
|
Other Current Liabilities |
2878.215
|
1788.340
|
3261.342 |
|
|
Provisions |
211.960
|
141.290
|
135.134 |
|
Total
Current Liabilities |
4894.107
|
3324.883
|
3396.476 |
|
|
Net Current Assets |
4141.399
|
4423.886
|
2900.301 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19682.265 |
17375.304 |
12761.154 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12585.895 |
11637.924 |
11040.449 |
|
|
|
Other Income |
369.502 |
267.455 |
111.027 |
|
|
|
TOTAL (A) |
12955.397 |
11905.379 |
10156.929 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease) in Finished Goods |
(762.127) |
100.327 |
(789.756) |
|
|
|
Excise Duty on Stocks |
120.422 |
(12.707) |
40.043 |
|
|
|
Raw Material Consumed |
5923.698 |
4536.793 |
3702.557 |
|
|
|
Purchases of Trading Goods |
965.043 |
1681.493 |
2654.779 |
|
|
|
Manufacturing Expenses |
2649.016 |
2335.719 |
1974.051 |
|
|
|
Personnel Expenses |
423.219 |
304.268 |
203.742 |
|
|
|
Selling and Administrative Expenses |
979.508 |
1177.250 |
658.098 |
|
|
|
Preliminary Expenditure Written Off |
0.046 |
0.000 |
0.369 |
|
|
|
Share of
(Profit) / Loss in Partnership Firm |
(0.048) |
(0.026) |
(0.004) |
|
|
|
Prior period expenses |
15.118 |
5.308 |
(0.300) |
|
|
|
TOTAL (B) |
10313.895 |
10128.425 |
8443.579 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2641.502 |
1776.954 |
1713.350 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1380.220 |
1064.897 |
567.572 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1261.282 |
712.057 |
1145.778 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
582.345 |
369.386 |
232.472 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
678.937 |
342.671 |
913.306 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
139.869 |
41.199 |
108.738 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
539.068 |
301.472 |
804.568 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1839.123 |
1661.088 |
1065.060 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment
of loss pertaining to the amalgamating companies |
58.094 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
13.477 |
-- |
80.457 |
|
|
|
Proposed Dividend |
154.374 |
105.506 |
109.477 |
|
|
|
Dividend Tax |
25.640 |
17.931 |
18.606 |
|
|
BALANCE CARRIED
TO THE B/S |
2126.606 |
1839.123 |
1661.088 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
29.844 |
662.326 |
804.783 |
|
|
TOTAL EARNINGS |
29.844 |
662.326 |
804.783 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
805.931 |
1236.391 |
|
|
|
Stores & Spares |
NA |
59.767 |
97.920 |
|
|
|
Capital Goods |
NA |
0.000 |
231.531 |
|
|
TOTAL IMPORTS |
NA |
865.698 |
1565.842 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
4.80 |
3.30 |
8.82 |
|
|
|
Diluted |
4.74 |
2.90 |
8.34 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3275.440 |
3372.500 |
3423.400 |
|
Total Expenditure |
2504.870 |
2683.760 |
2813.040 |
|
PBIDT (Excl OI) |
770.570 |
688.740 |
610.360 |
|
Other Income |
4.570 |
5.570 |
0.000 |
|
Operating Profit |
775.140 |
694.310 |
610.360 |
|
Interest |
329.150 |
340.150 |
317.250 |
|
PBDT |
446.000 |
354.160 |
293.110 |
|
Depreciation |
217.310 |
220.040 |
220.290 |
|
Profit Before Tax |
228.690 |
134.120 |
72.820 |
|
Tax |
45.580 |
26.730 |
15.310 |
|
Profit After Tax |
183.110 |
107.390 |
57.510 |
|
Net Profit |
183.110 |
107.390 |
57.510 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.16
|
2.53 |
7.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.39
|
2.94 |
8.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.07
|
2.10 |
8.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.11 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.77
|
5.22 |
3.81 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.85
|
2.33 |
1.85 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year,
the Company witnessed a robust growth in sales and profit figures, coupled with
wider geographic extension of customer base and extension of the product mix to
growing sectors. The production of billets increased from 2,48,811 MT in the
last year to 3,32,254 MT in year 2010. The Company during the year commissioned
3rd ferro alloy plant and 2 kilns of 150 TPD having achieved the technical
parameters of operation and stabilisation of production efficiency which
culminates into reduction of production cost to a great extent and
substantially benefits the operations by insulating from volatility.
M/s Sri M P Ispat
and Power Private Limited and M/s Vedvyas Ispat Limited were amalgamated with
the Company with effect from April 1, 2008 as per order dated 16.09.2009 of the
Hon'ble Calcutta High Court and order 16.12.2009 of the Hon'ble Orissa High
Court sanctioning the scheme of amalgamation respectively. M/s Sri M P Ispat
and Power Private Limited was setting up two set of coke oven batteries having
capacity of 120,000 MT. The coke oven batteries have started commercial
operation in last quarter of the financial year. M/s Vedvyas Ispat Limited had
two DRI kilns of 100 TPD each with total capacity of 60,000 MT of which 1 DRI
kiln of 100 TPD started commercial operation in the last quarter of the
financial year 2009-10. The amalgamation will result in backward integration of
the operations of the Company and considerably reduce operational costs. The
Company will be able to operate more economically and effectively resulting in
better turnover and profits.
The Company is
implementing one DRI kiln of 350 TPD along with CPP of 45 MW and 7 lakh tons
coal washery in next couple of years’ time to meet its increased metaliks and
power requirement.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDIAN ECONOMY
Following the
slowdown in GDP growth that started from the second half of 2008-09, the Indian
economy registered a comeback in 2009-10 with a GDP growth of 7.4% (6.7% in
2008-09). This rebound was largely owing to a timely economic stimulus that
catalysed investment and consumption. The country’s mining and manufacturing
sectors grew 8.7% and 8.9% in 2009-10. Going ahead,
IRON
Two Tons Of Iron
Indian scenario:
Chhattisgarh,
Jharkhand, Karnataka, and Orissa.
Indian
steel-makers projected an increase in capacity from the current 60 million tons
to 90-100 million tons by 2012, strengthening ore demand from 90 million tons
to about 150 million tons (Source:
Reuters, 11.03.2010).
– low-quality
grades made up about 70% of last year's output of 222 million tons
– prompted
companies to invest in pelletisation plants, using lower-grade powdery iron ore
fines ideal for blast furnaces and improved input-output efficiency.
Price trends: The global prices of iron ore surged more
than two-fold over the last year to US$130 per ton, owing to a strong demand
from China and a mild economic recovery in Europe and the United States (Source: Reuters, 11.03.2010). The
major factor driving iron ore prices was
iron ore trade)
resulted in tightening ore prices (Source:
CLSA research). The
Indian government doubled tax on iron ore lump exports to 10% and added a 5%
levy on fines in December 2009 (Source:
Reuters, 11.03.2010).
Exports:
29.03.2010). The country’s exports increased to US$4.4 billion during April- January
2009-10 as against US$3.9
billion during the
corresponding period of 2008-09 (Source:
Projects monitor) and are projected at about 100 million tons in 2010-11
(Source: Economic Times, 07.05.2010).
Outlook:
MANGANESE
Ten Kgs Of
Manganese Ore Are used to manufacture one ton of steel. Around 100-150 kg of
manganese alloy
is required to
produce one ton of special steel. Manganese is the world’s fourth-largest
consumed metal after iron, aluminium and copper (Source: wallstreetreporter, 22.03.2010). Manganese serves as a desulphurising, deoxidising
and conditioning agent during iron ore smelting; as an alloying element in
steel, manganese increases toughness, strength and hardness of steel. The iron
and steel industry consumes 90-95% of manganese ore with no substitutes.
Reserves: Manganese is the 12th-most abundant element in the earth’s crust.
while
International
manganese trade has long been linked with demand from industrialised economies
in Europe, North America,
Price trend: The cost of medium / high grade manganese
ore decreased from Rs. 0.010 million to in 2008-09 to Rs. 0.006 million in
2009-10 Applications: In steel
manufacture, manganese is added in ferro-alloy form to impart the desired
strength, durability, anti-corrosion and anti-stain properties. The battery
sector is currently the second-largest consumer of manganese. Besides, it is
used in animal feed and fertilisers, colorants for various cosmetics, plastics
and artists’ glazes, pigments for bricks, frits, glass, paints tiles and
textiles and water treatment chemicals.
ALLOY STEEL
Alloy-Steel Is A
Carbon-Based Steel comprising chromium, cobalt, copper, manganese, nickel
tungsten or vanadium. These steels possess greater strength, hardness,
wear-resistance and toughness over carbon steel. These attributes facilitate a
growing downstream use by the demanding segments of the automobile, equipment
(drilling and mining), locomotive engine and aviation sectors. Alloy steel
consumption is a fair index of a region’s development. Higher alloy steel
offtake implies quicker industrial growth, especially in the industrial
consumer, consumer durables and automobile sectors.
disposable
incomes, attractive financing schemes and sustained growth in automobiles
ownership. The Indian automobile sector, the second-fastest growing auto market
after
the domestic auto
components industry expected to grow to US$40-45 billion by then (Source: Business Line, 12.02.2010). Among
major automakers, Hyundai uses
Construction sector: Construction
activity is an integral part of a country’s growth. The Indian construction
sector growth declined from 10% in 2008 to 5.9% in 2009. However, following the
economic rebound, the construction sector’s contribution to GDP increased from
5.9% in 2008-09 to 6.5% in 2009-10 (Source:
Economic Survey, 2009-10). The
Tenth Plan investment of US$217 billion increased 2.36 times to US$514 billion
in the Eleventh Five Year Plan and an estimated US$1010 billion the Twelfth
Five Year Plan (Source: infrastructure.gov.in). These
investments will be progressively invested in the modernisation and upgradation
of roads and highways, railways, metro railway, real estate, power sector,
rural roads, ports, airports, telecom, IT, irrigation and urban infrastructure.
In just 10 years,
Forgings sector: The Indian forgings industry evolved as a
major contributor to the manufacturing sector. The key demand driver is the
automobile industry with applications in cars, suspension and steering systems
among others. The other industries that use forgings include Railways, Defence,
oil exploration, cement, steel and other engineering industries. The organized
sector accounts for about 65-70% of the total forgings production in the
country, while unorganised players (small units) cater mainly to job work and
the replacement market (Source:
www.indianforging.org). Based
on automobile sector growth, it is estimated that forgings production will
touch 12.1 lakh tons by FY2010, strengthening forging-driven alloy-steel demand
from an estimated 12.8 lakh tons in 2007-08 to 15.5 lakh tons by 2009-10 (Source: KRC Research). Oil and gas
sector: In India, the penetration level of pipelines in oil and gas
transportation is low at 32% with 59% in
Power sector:
power sector for
2007-12 (Eleventh Plan), which, when commissioned, will catalyse the demand for
steel.
Railways sector: The investment of the US$18 billion Indian
Railways industry was US$29.91 billion in the Tenth Plan, which increased by
118% in the Eleventh Five Year Plan to US$65.45 billion (Source: Planning Commission). Going ahead, private investment
in railways could increase from the current US$217.88 million to US$1.08
billion in three years (Source: IBEF).
Moreover, the World Bank is planning to finance the international expansion of
Indian Railways to bring transport infrastructure to African countries and
other developing nations. The World Bank earmarked US$2 billion for the project
(Source: IBEF).
STEEL
Global scenario: Steel is at the Centre of economic
progress. Global steel production was 1,220 MT in 2009, a decline of 8% over
2008 (Source: Ministry of Steel).
2009, despite a
decline in nearly all major steel producing countries.
Asian growth: Growth in infrastructure creation
strengthened Asian steel consumption. Asia’s share of world steel production
increased from 58% in 2008 to 65% in 2009, based on 790 MT of crude steel
production (Source:
SEAISI). As per the World Steel Association, this recovery was made possible
because of government stimulus packages and recovery in emerging Asian
economies, especially
Indian overview: The iron and steel industry contributes
around 2% of
Outlook:
-
By 2015-16,
-
-
Private and international companies are showing
interest in investing in
-
Various states signed a total of 222 MoUs for
planned capacity of around 276 million tons (Source: Ministry of Steel)
-
Indian steel-makers are set to make the most of the
booming global demand for steel pipes and tubes with the government withdrawing
the 10% duty on the exports of these products (Source: IBEF)
-
With the growing need for oil and gas
transportation infrastructure, a US$118-billion opportunity is waiting to be
addressed by steel manufacturers in five years (IBEF)
STAINLESS STEEL
Stainless Steel is
an Alloy Made of two or more chemical elements used in applications with high
corrosionresistant properties owing to chromium content (around 11-20% of the
alloy). When combined with oxygen, chromium forms a chrome-oxide surface that resists
oxidation (staining or rusting). The addition of nickel strengthens corrosion
resistance. The presence of molybdenum (Mo) improves localised corrosion
resistance. Stainless steel is manufactured in three grades – series 200, 300
and 400.
Global overview:
Stainless steel
represents less than 2% of global steel production. World stainless steel
production fell to its lowest level since 2000 to 4.8 million tons in Q1 2009,
owing to poor demand from the global construction and automotive sectors.
Global production tumbled 40% in Q1 2009, except in
Indian overview:
Growth drivers
-
India’s per capita income increased from Rs. 0.039
million in 2008-09 to Rs. 0.041 million in 2009-10, an increase of 5.3% over
the previous year (Source: Economic Survey, 2009-10)
-
The Commonwealth Games 2010 in
-
Infrastructure investment will be Rs. 20270000.000
millions in the Eleventh Plan, increasing to around Rs. 50000000.000 millions
in the Twelfth Plan
Outlook: The major sectors to drive the stainless
steel industry will be process, construction, railways, infrastructure,
durables, and automobile sectors. New airport and railway metro projects will
require large stainless steel quantities.
Operations
Highlights, 2009-10
-
Reported a 34% production increase from 2,48,811
tons in 2008-09 to 3,32,254 tons
-
Enhanced capacity utilisation from 75% in 2008-09
to 83%
-
Sri M P Ispat and Power Private Limited and Vedvyas
Ispat Limited amalgamated with Subject with effect from 01.04.2008
-
Commissioned a 9 MVA ferro alloy plant, one kiln of
100 TPD, two kilns of 150 TPD, 20 ton induction furnace, two sets of coke oven
batteries and a railway siding
Overview
In the business of
integrated steel manufacture, it is imperative to ensure that all production
arms are working in sync and at a high efficiency leading to the most effective
resource utilization and the lowest cost of production.
Adhunik is a
secondary steel manufacturer with the following installed capacities: 4,50,000
TPA of steel, 3,00,000 TPA of sponge iron, 2,13,792 TPA of pig iron, 46,880 TPA
of ferro alloy, 2,67,300 TPA of sinter plant, 1,20,000 TPA coke oven plant and
34 MW captive power plant.
RAW MATERIAL
MANAGEMENT
Highlights, 2009-10
-
Stabilised freight costs through multivendor
development
-
Created a railway siding for stronger logistics
management
Overview
In the business of
steel manufacture, where four tons of raw material are required to manufacture
a ton of the end-product, it is critical to aggregate all raw material sources
proximate to steel manufacture and ensure that material is available at all
times for continuous process manufacture.
The Company’s
strategic location in Sundergarh, Orissa, makes it possible for 90% of all raw
materials (iron ore,
coal, coke,
limestone, power, and manganese ore, among others) to be procured from within
200 km of its manufacturing unit.
Iron ore: Adhunik’s captive iron ore mine in Keonjhar
(Orissa) is expected to start in the second half of FY 2011. This will meet
around 15% of the total required of iron ore in FY 2011, which will increase to
60% in FY 2012. The
Company’s captive
iron ore mine possesses an estimated reserve of 25 mn tons and is expected to
provide material for 30 years. Currently 40% of the requirement is procured
from the merchant mines of OMML, which are
only 120 km away.
Coal: The Company procures noncoking coal through
a linkage with Mahanadi Coalfields Limited and eauction. Coking coal is
imported from
Limestone: The Company procures limestone and dolomite
from the Katni and Gomadi mines and captively from
United Minerals
(partnership status). Manganese ore: The Company sources manganese from OMML’s
807-hectare Patmunda mine, one of the largest of its kind in
Power: The Company meets 40% of its power
requirement from its 34-MW captive power plant and the rest from
the state grid.
Quality
Highlights, 2009-10
-
Witnessed a decline in quality rejections by 50 bps
-
Received approvals for auto-grade products for use
in crank shaft, crown wheel and sub axle from TATA Motors
-
Received approval from Vedanta Aluminium for
collector bars
Overview
In the business of
alloy steel manufacture, the end-product addresses demanding requirements of
end customers. The cost of nonconformance
can often be high not only on account of the waste in raw material and process
cost, but also probable customer attrition. Adhunik’s 80-member quality team
ensured globally benchmarked quality standards across all production stages
from incoming raw material to the manufacture of intermediate products to the
production of finished goods. This was facilitated by proactive investments in
state-of-the-art quality control equipment: vacuum de-gasser, electromagnetic
stirrer, LECO hydrogen, nitrogen and oxygen analyser and metallographic
polishing machines, among others. The Company was ISO 9001:2000-certified and
received other coveted certificates like TS 16949, BIS (IS: 2830/IS: 2831) and
RDSO.
Power Generation
Highlights, 2009-10
-
Commenced operations at the second 17 MW captive
power plant
-
Increased total power generation to 34 MW Achieved
a PLF of 77% against 65% in 2008-09
Overview
Captive
generation: A ton of steel requires 1,000 units of power, making steel
manufacture power-intensive. While Adhunik’s two captive power plants
(cumulative capacity 34 MW) provide 40% of the Company’s power needs, the rest
is sourced from the state grid. The power plant uses waste generated from the
DRI plant, waste char (around 20% carbon) and coal washery rejects, which
helped reduce per unit generation cost to Rs. 2.05 compared with grid purchases
at Rs. 3.28 per unit.
Merchant power: Through subsidiary Adhunik Power and
Natural Resources Limited (APNRL), the Company is
foraying into the
merchant power generation. It is establishing a 1,080- MW plant across three
phases in Jharkhand. In the first two phases, two plants of 270 MW each will be
commissioned between January 2012 and April 2012.
The project update
for the first two phases comprises the following points: _ Acquired 300 acres;
the acquisition of 150 acres under progress
-
Only 1 km from the 400 KVA substation of PGCIL and
1.5 km from the JSEB 220 KVA sub-station
-
Awarded a BTG (boiler, turbine, generator) contract
to BHEL for 540 MW and placed orders for balance of plant (BoP)
-
Allotted a captive coal mine (share 69 mn tons)
with TATA Steel
-
Received MoEF clearance and noobjection clearance
from the State Pollution Control Board for 270 MW
-
Received a no-objection certificate for chimney
height clearance from AAI
-
Received approvals for sourcing water from a
perennial river 10 km away for generating 1,000 MW (35.6 mcm)
-
Received permission for constructing a railway
siding
-
Signed long-term power purchase agreement for 100
MW with TPTCL at Rs. 2.75 per unit with an upside share (85:15)
-
Signed a bulk power transmission agreement with
PGCIL for open access of 850 MW
-
Received coal linkage from Central Coalfields for
entire 540 MW
-
Definitive agreement signed with IDFC Project Equity
for investing Rs. 2500.000 millions to part-finance the equity requirement of
the project
MINING
Highlights, 2009-10
-
Received forest and environmental clearances for
the captive iron ore mine of AML
-
Increased production from merchant iron ore mines
(OMML) from 0.18 mn tons in 2008-09 to 1.15 mn tons
-
Enhanced medium/high grade manganese ore mine
(OMML) production from 75,501 mn tons in 2008-09 to 95,197 mn tons
-
Improved the product mix of manganese ore with
65.53% medium/high grade manganese ore against 23.36% in 2008-09
-
Registered an increase in average iron ore
realisation from Rs. 0.001 million per ton in 2008-09 to Rs. 0.002 million per
ton
-
Recorded an increase in average manganese ore
realisation from Rs. 0.003 million per ton in 2008-09 to Rs. 0.005 million per
ton
Overview
Adhunik enjoys a
decade-long mining experience. The Company, through its subsidiary, possesses
iron ore and
manganese ore
mines with estimated reserves of 97 mn tons and 53 mn tons respectively. These
reserves are expected to last over 30 years at the Company’s post-commissioning
throughput. The iron ore and manganese ore mines are open-cast with a low
stripping ratio. The ratio of lumps to fines is 60:40. Some of the Company’s
major clients are Bhushan Steel, Electrosteel Castings, Jindal Stainless and
Rohit Ferro Tech, among others.
Marketing
Highlights, 2009-10
-
Revenues increased 4.84% from Rs. 12834.400
millions in 2008-09 to Rs. 13455.000 millions
-
Increased sales volume of finished steel 24.86%
from 2,40,980 tons in 2008-09 to 3,00,880 tons
-
Increased the contribution to revenue from
value-added products from 30% in 2008-09 to 45%
-
Strengthened average manganese ore realisations
increased from Rs. 0.003 million per ton in 2008-09 to Rs. 0.005 million per
ton
-
Strengthened average iron ore realisations from Rs.
0.001 million per ton in 2008-09 to Rs. 0.002 million per ton
-
Received product approvals from Honda Siel, Bajaj
Auto, Dana, L and TKomatsu and Swaraj Mazda
Overview
In a business
where it is critical for selling the right product at right time, marketing
plays a key role. Adhunik’s 50-member marketing team enabled it to reach
customers demanding alloysteel and other products. The Company is present in
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Quarter ended 31.12.2010 (Unaudited) |
Nine Months Ended 31.12.2010 (Unaudited) |
|
Income |
|
|
|
Gross sales / income
from operations |
3723.959 |
10963.965 |
|
Less: excise duty |
311.806 |
929.715 |
|
a) Net Sales / Income from Operations |
3412.153 |
10034.250 |
|
b) Other Operating Income |
11.244 |
23.338 |
|
Total Operating Income |
3423.397 |
10057.588 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
(761.463) |
(1867.169) |
|
(b) Consumption of Raw Materials |
2274.361 |
5844.116 |
|
(c) Purchase of traded goods |
3.347 |
145.963 |
|
(d) Employees Cost |
151.805 |
421.651 |
|
(e) Stores and Spares consumed |
334.529 |
978.351 |
|
(f) Depreciation |
220.287 |
657.636 |
|
(g) Other Expenditure |
810.462 |
2465.004 |
|
Total Expenditure |
3033.328 |
8645.552 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
390.069 |
1412.036 |
|
Other Income |
- |
10.139 |
|
Profit/(Loss) before Interest and Exceptional items |
390.069 |
1422.175 |
|
Interest and Finance Charges |
317.249 |
986.547 |
|
Profit / (Loss)
before Tax |
72.820 |
435.628 |
|
Tax Expenses |
|
|
|
- Current Tax |
15.311 |
87.620 |
|
- Income tax relating to earlier years |
- |
- |
|
- Fringe enefit Tax |
- |
- |
|
Net Profit/(Loss) for the period |
57.509 |
348.008 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
1234.995 |
1234.995 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Earning per share |
|
|
|
-Basic |
0.47 |
2.82 |
|
-Diluted |
0.47 |
2.82 |
|
Aggregate of Public Share Holding |
|
|
|
- Number of Shares |
54936235 |
54936235 |
|
- Percentage of shareholding |
44.48 |
44.48 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
11100000 |
11100000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
16.19 |
16.19 |
|
- Percentage of shares(as a % of the total share capital of the company) |
8.99 |
8.99 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
57463301 |
57463301 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
83.81 |
83.81 |
|
- Percentage of Share (as a % of the total share capital of the company) |
46.53 |
46.53 |
Notes:
- The above results have been reviewed by
the Audit Committee and approved by the Board of Directors at their
respective meetings held on 11.02.2011.
- In terms of the dictated order dated
29.03.2010 of the Hon'ble High Court of Calcutta, net deferred tax
liability amounting to Rs. 32.305 millions for the quarter and Rs. 108.468
millions for nine months ended 31.12.2010 has been adjusted against
Securities Preimum Account.
- The above financial results do not
include the consolidated financial results of the Company. The
consolidated results of the company and its subsidiaries are being
published separately
- As the Company's business activity
falls within a single primary business segment, viz."Iron and Steel
Products", the disclosure requirements of Accounting Standard - 17
"Segment Reporting", as notified by the Companies (Accounting
Standards) Rules 2006 (as amended) are not applicable.
- In terms of amended clause 41 of the
listing agreement, details of number of investor complaints for the
quarter ended 31.12.2010: beginning - nil, received and disposed off - 29,
Closing Nil.
- There are no exceptional /
extraordinary items during the period reported above.
- Pursuant to the scheme of amalgamation
as sanctioned by The Hon’ble High Court of Calcutta and the Hon’ble High
Court of Orissa vide their Orders dated 16.09.2009 and 16.12.2009
respectively, Sri M.P. Ispat and Power Private Limited and Vedvyas Ispat
Limited have been amalgamated with the Company with effect from 01.04.2008
(being the appointed date) in the last quarter of the financial year
2009-10. To the extent of the above amalgamation, the results of the
current quarter/period are not comparable to that of the corresponding
previous quarter/period in the previous year.
- Prior Period Figures have been
regrouped/rearranged wherever necessary.
Fixed Assets :
·
·
Buildings
·
Plant
and Machinery
·
Vehicles
·
Computers
·
Furniture
and Fixtures
·
Office
Equipments
·
Leasehold
land
·
Rolling
stock
·
Railway
siding
·
Computer
software
WEB DETAILS:
PROFILE:
Subject, the INR
35000.000 millions conglomerate, is one of the fastest growing groups in
The Group has
steel manufacturing facilities in the states of West Bengal, Orissa, Jharkhand
and a cement unit in Meghalaya and presently has a chain of value added
products including carbon and alloy steel billets, auto grade steel rolled
products, rounds and flats (3,30,000 tpa), TMT bars and wire rods (1,50,000
tpa), sponge iron (4,20,000 tpa), pig iron (2,00,000 tpa), ferro alloys
products i.e. ferro manganese, silico manganese, ferro silicon (50,000 tpa) and
stainless steel products (1,20,000 tpa). The Group also has the power
generation capacity of 84 MW which is being captively consumed, and it is also
setting up an additional 45 MW which is expected to be in operation by 2012.
Moreover, the Group has ventured into manufacturing of high value added
products viz. transmission and sub station towers for power sector.
The Group has
embarked upon a very ambitious plan in the power sector. It is implementing a
1080 MW power plant in the state of Jharkhand.
Subject has a mining
company, having iron ore and manganese ore mines in the states of Jharkhand and
Orissa, respectively. The Group has mining resources viz. iron ore, coal,
manganese ore, lime stone which are in fact the key inputs of production. Over
the years the Group has shown robust operational results with an excellent
track record of growth and profitability.
PRESS RESLEASE
Adhunik Metaliks’s consolidated net profit for 9M FY11 at Rs 1469.000
Millions up 8O.2%
Adhunik Metaliks Limited
Consolidated Results Highlight
Q3FY11 vs. Q3FY1O
- Net Sales at Rs 4351.000 millions vs. Rs 3633.000 millions (Up 19.7%)
- Net Profit at Rs 541.000 millions vs. Rs 383.000 millions (Up 41.4%)
- EPS for the quarter stood at Rs 4.38 as against Rs 3.44 in Q3FY1O (Up 27.3%)
9MFY11 vs. 9MFY1O
- Net Sales at Rs 12421.000 millions vs. Rs 10067.000 millions (Up 23.4%)
- Net Profit at Rs 1469.000 millions vs. Rs 815.000 millions (Up 80.2%)
- EPS stood at Rs 119.000 as against Rs 78.000 in 9MFY1O (Up 52.4%)
KOLKATA, India, 14.02.2010 - Adhunik Metaliks Limited (referred to as “Adhunik” or the “Company”, NSE: ADHUNIK, BSE: 532727), one of India’s fastest growing integrated alloy, special and construction steel manufacturing and mining companies, announced its Unaudited Consolidated and Standalone Third Quarter and 9-Months Results for Fiscal 2011, in accordance with Indian GAAP on 11.02.2011.
Adhunik reported Rs 4351.000 millions Consolidated Net Sales in Q3FYII as against Rs 3633.000 millions in the corresponding quarter of last year, registering a rise of 19.7%. Consolidated EBITDA stood at Rs 1467.000 millions, 28.3% up from Q3FYIO. Consolidated Net Profit for the quarter stood at Rs 541.000 millions as against Rs 383.000 millions, recording an increase of 41.4%. Consolidated EBIDTA margin for the quarter stood at 33.7% as against 31.5% in the same period of last quarter. This was primarily due to improved volumes and price realizations in the mining segment and stable performance of steel segment inspite of increasing raw material prices.
For the nine months ended 31.12.2010, Adhunik reported Consolidated Net Sales of Rs 12421.000 millions on a Consolidated Net Profit of Rs 1469.000 millions as against Rs 10067.000 millions of sales and Rs 815.000 millions profit in the previous corresponding nine month period.
Commenting on the results, Mr. Manoj Kumar Agarwal, Managing Director, Adhunik Metaliks Limited, said, “Our mining business is performing well with higher manganese ore production coupled with improved price realizations across both manganese ore and iron ore. Over the coming quarters, both manganese ore and iron ore production is poised to increase significantly from current levels as additional in mining and processing capacities conic online.
In our steel business, management is focused on increasing revenues from high value added rolled products. Exports of special steel are expected to make a meaningful contribution in the near tern,.”
Media Enquiries:
Arun Kedia, Adhunik Metaliks Limited +91 333051 7100
Sudhir Shetty, Adfactors PR +91 22 2281 3565
For further information on Adhunik Metaliks visit www.adhunikgroup.com
About Adhunik
Metaliks Limited
Adhunik Metaliks is one of
Adhunik expects to start operation of its captive iron ore mines in the coming quarters. These mines will supply up to 50% of its requirements resulting in improved operating margins. The Company is well positioned in the Indian steel industry through its cost efficient model. Adhunik also ensures better cost management in its steel plant by reusing various waste products generated during the steel manufacturing process.
Adhunik ventured into merchant mining through the
acquisition of OMML in 2007. OMML has mining leases for extraction of minerals
including iron ore and manganese in the states of Jharkhand and Orissa. The
total iron ore reserve is estimated to be 97 million MT, manganese ore reserve
is estimated to be 53 million
In QI FY2O11, OMML entered into a 50:50 Joint Venture for
the ownership and management of Suleipat Iron
Adhunik also ventured into the power generation business
recently, through its majority owned subsidiary, Adhunik Power and Natural
Resources Limited. The Company is currently in the process of establishing a
540MW coal based power plant at
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.44.38 |
|
|
1 |
Rs.73.88 |
|
Euro |
1 |
Rs.65.83 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.