MIRA
INFORM REPORT
|
Report Date : |
23.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
MUKAND LIMITED |
|
|
|
|
Registered
Office : |
Bajaj Bhavan,
Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai-400021, |
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Country : |
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|
|
Financials (as
on) : |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
29.11.1937 |
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|
Com. Reg. No.: |
11-002726 |
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Capital
Investment / Paid-up Capital : |
Rs.787.520 millions |
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|
|
CIN No.: [Company Identification
No.] |
L99999MH1937PLC002726 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM19254E |
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PAN No.: [Permanent Account No.] |
AAACM5008R |
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Legal Form : |
It is a Public
Limited Liability Company. The company's
shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing,
Marketing and Exporting of iron and steel products. |
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|
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No. of Employees : |
4500
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 |
|
Maximum Credit Limit : |
USD 74049000 |
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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 a reputed 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 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Dharmesh Naik |
|
Designation : |
Accountant |
LOCATIONS
|
Registered/ Corporate Office : |
Bajaj Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai-400021, |
|
Tel. No.: |
91-22-22021060 / 2281 / 6524 / 3327 / 1025 / 22822222 / 61216666 |
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Fax No.: |
91-22-22021174 |
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E-Mail : |
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|
Website : |
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Factory 1 : |
Thane-Belapur Road, Dighe, P.O. Kalwe, District Thane-400605, |
|
Tel. No.: |
91-22-25347373 / 25348181 / 21727500 |
|
Fax No.: |
91-22-25410291 |
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E-Mail : |
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|
|
|
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Factory 2 : |
Ginigera - 583 228, |
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Sales – European Union : |
Kella 13-Batschuns 6832 Zwischenwasswr, Osterreich – |
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Tel. No.: |
+43 (0) 5522 45839 |
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Fax No.: |
+43 (0) 5522 45839 |
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E-Mail : |
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|
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Branch Office : |
Located at:
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DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Niraj Bajaj |
|
Designation : |
Chairman and Managing Director |
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|
|
|
Name : |
Mr. Rajesh V. Shah |
|
Designation : |
Co-Chairman and Managing Director |
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|
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|
Name : |
Mr. Dhirajlal S. Mehta |
|
Designation : |
Director |
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|
|
Name : |
Mr. Suketu V. Shah |
|
Designation : |
Joint Managing Director |
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|
Name : |
Mr. Vinod S. Shah |
|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Dr. N.P. Jain, IFS (Retired) |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Narendra J. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
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|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash V. Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pradip P. Shah |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K.J. Mallya |
|
Designation : |
Company Secretary |
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|
|
|
THE MANAGEMENT TEAM : |
Corporate |
|
Name : |
Mr. Niraj Balaj |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Rajesh V Shah |
|
Designation : |
Co-Chairman and Managing Director |
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|
|
|
Name : |
Mr. Sukefu V Shah |
|
Designation : |
Joint Managing Director |
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|
|
|
Name : |
Mr. S B Jhaveri |
|
Designation : |
Chief Financial Officer |
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|
|
Steel Division |
|
Name : |
Mr. I M D’Costa |
|
Designation : |
Technical Director (Steel Plant, Thane) |
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|
|
Name : |
Mr. R Sampath Kumar |
|
Designation : |
Chief Executive (Steel Plant, Ginigera) |
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|
Name : |
Mr. A M Kulkarni |
|
Designation : |
Chief Executive (Steel Plant, Thane) |
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|
Name : |
Mr. C H Sharma |
|
Designation : |
Technical Advisor, Steel |
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|
|
|
Name : |
Mr. Sidharth Shah |
|
Designation : |
Chief of Materials Management |
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|
|
|
Name : |
Mr. V M Mashruwala |
|
Designation : |
Chief of Marketing (Alloy and Stainless
Steel) |
|
|
|
|
Name : |
Dr. Amit Ganguly |
|
Designation : |
Chief of Business Excellence |
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|
|
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Industrial Machinery Division |
|
Name : |
Mr. R Jagannathan |
|
Designation : |
Chief Executive |
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|
|
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|
Road Construction Division |
|
Name: |
Mr. R Sankaran |
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Designation: |
Chief Coordinator |
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|
|
|
Name : |
Mr. Dharmesh Naik |
|
Designation : |
Accountant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
12,156,155 |
16.63 |
|
|
28,125,973 |
38.47 |
|
|
40,282,128 |
55.09 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
40,282,128 |
55.09 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6,027 |
0.01 |
|
|
231,439 |
0.32 |
|
|
7,452,308 |
10.19 |
|
|
2,031,703 |
2.78 |
|
|
9,721,477 |
13.30 |
|
|
|
|
|
|
8,139,145 |
11.13 |
|
|
|
|
|
|
9,894,631 |
13.53 |
|
|
4,833,448 |
6.61 |
|
|
243,300 |
0.33 |
|
|
19,361 |
0.03 |
|
|
223,939 |
0.31 |
|
|
23,110,524 |
31.61 |
|
Total Public shareholding (B) |
32,832,001 |
44.91 |
|
Total (A)+(B) |
73,114,129 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
73,114,129 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 MillionsBUSINESS DETAILS
|
Line of Business : |
Manufacturing, Marketing
and Exporting of iron and steel products. |
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Products : |
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Exports : |
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Products : |
Steels |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bars, Rods and Coils of Special and Alloy Steel and Stainless Steel |
Tonnes |
640000 |
308282 |
|
E.O.T. Cranes, Portal Cranes, Metallurgical Equipment, Machinery for Crushers, Grinders, Processing and Handling of Bulk Material |
Tonnes |
9410 |
10422 |
|
Electrical Energy (Captive Power Generation) |
Tonnes |
22.10 M.W. |
86.81 Million Kwh |
|
Semi Finished Billets
and Blooms |
Tonnes |
970000 |
522448 |
GENERAL INFORMATION
|
Suppliers : |
· Amit Refractories Private Limited · A-One Chemicals · B.D. K. Engineers and Fabricators · Chandrika Engineering Works · DB Power Electronics Private Limited · Excel
Engfab ( · Sansid
Polbro Chemicals ( · Satish Engineering Company Private Limited · Ferro Insulation Private Limited · · TIS Thermo Instruments · Tuff Tools · JSL Refractories Limited · Maxworth Industries · Moulds and Dies Private Limited · |
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Customers : |
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No. of Employees : |
4500
(Approximately) |
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Bankers : |
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Facilities : |
# Includes funded interest term loans in respective categories.
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Banking Relations
: |
Unknown |
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Auditors : |
|
|
Name : |
Dalal and Shah Chartered
Accountants |
|
|
|
|
Name : |
Hari Bhakti and
Company Chartered
Accountants |
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|
|
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Memberships: |
Confederation of Indian Industry |
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Associates: |
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Subsidiaries : |
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Parent company: |
Mukand Holdings and Finance Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
118000000 |
Equity Shares |
Rs.10/- each |
Rs.1180.000 millions |
|
7000000 |
Preference Shares |
Rs.10/- each |
Rs.70.000 millions |
|
|
Total
|
|
Rs.1250.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
73159805*
|
Equity Shares |
Rs.10/- each |
Rs.731.599
millions |
|
5626320 |
0.01% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.56.263
millions |
|
|
Total
|
|
Rs.787.862 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
73114129 |
Equity Shares |
Rs.10/- each |
Rs.731.141
millions |
|
|
Add: Forfeited Shares, amounts originally paid up |
|
Rs.0.116
million |
|
5626320 |
0.01% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.56.263
millions |
|
|
Total
|
|
Rs.787.520 millions |
* Includes 28031 Equity Shares which have been kept in abeyance by the
Stock Exchange Authorities.
As on 28.07.2010
Authorised Capital : Rs. 1500.000
Millions
Subscribed & Paid-up Capital : Rs. 787.404 Millions
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 |
787.520 |
787.520 |
787.520 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
17724.792 |
17190.413 |
6953.812 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
18512.312 |
17977.933 |
7741.332 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13329.815 |
12398.588 |
10987.499 |
|
|
2] Unsecured Loans |
3489.719 |
1522.031 |
1958.954 |
|
|
TOTAL BORROWING |
16819.534 |
13920.619 |
12946.453 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
594.622 |
|
|
|
|
|
|
|
|
TOTAL |
35331.846 |
31898.552 |
21282.407 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
20259.863 |
18883.462 |
6628.762 |
|
|
Capital work-in-progress |
1218.209 |
2717.728 |
2421.158 |
|
|
|
|
|
|
|
|
INVESTMENT |
1061.762 |
1049.392 |
1115.995 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7711.636
|
6227.423 |
6960.795 |
|
|
Sundry Debtors |
7438.974
|
6414.879 |
5741.511 |
|
|
Cash & Bank Balances |
1018.259
|
1044.378 |
1392.190 |
|
|
Other Current Assets |
32.977
|
44.671 |
331.393 |
|
|
Loans & Advances |
3707.270
|
3717.555 |
3647.385 |
|
Total
Current Assets |
19909.116
|
17448.906 |
18073.274 |
|
|
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2530.802
|
|
6122.330 |
|
|
Other Current Liabilities |
3762.112
|
4129.865 |
|
|
|
Provisions |
860.606
|
739.162 |
890.600 |
|
Total
Current Liabilities |
7153.520
|
8250.842 |
7012.930 |
|
|
Net Current Assets |
12755.596
|
9198.064 |
11060.344 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
36.416 |
49.906 |
56.148 |
|
|
|
|
|
|
|
|
TOTAL |
35331.846 |
31898.552 |
21282.407 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19629.420 |
19188.903 |
19267.880 |
|
|
|
Other Income |
312.215 |
295.027 |
222.752 |
|
|
|
TOTAL (A) |
19941.635 |
19483.930 |
19490.632 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
8420.088 |
10247.292 |
9679.258 |
|
|
|
Operating and other expenses |
9310.668 |
8847.215 |
8756.634 |
|
|
|
Variation in
opening and closing stock |
(1009.899) |
361.110 |
(1453.001) |
|
|
|
Purchase of goods for trade (including
semi-finished) |
447.919 |
251.919 |
276.429 |
|
|
|
Capital work-in progress |
(10.645) |
(109.847) |
(348.109) |
|
|
|
Other Expenditure |
8.602 |
414.815 |
(90.213) |
|
|
|
TOTAL (B) |
17166.733 |
20012.504 |
16820.998 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2774.902 |
(528.574) |
2669.634 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1522.537 |
1352.346 |
1191.260 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1252.365 |
(1880.920) |
1478.374 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
632.347 |
578.419 |
579.426 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
620.018 |
(2459.339) |
898.948 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.625 |
(585.972) |
304.968 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
619.393 |
(1873.367) |
593.980 |
|
|
|
|
|
|
|
|
|
|
Prior Period Adjustments (net) |
(0.641) |
(14.672) |
NA |
|
|
|
Excess/ (Short) provision for tax |
1.174 |
0.956 |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
1230.383 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred from Debenture Redemption
Reserve |
125.000 |
62.500 |
NA |
|
|
|
Transferred to Debenture Redemption
Reserve |
(58.750) |
-- |
NA |
|
|
|
Proposed Preference Dividend |
(0.006) |
(0.006) |
NA |
|
|
|
Proposed Equity Dividend |
(73.114) |
-- |
NA |
|
|
|
Tax on Preference/ Equity Dividend |
(12.427) |
(0.001) |
NA |
|
|
|
Transfer to General Reserve |
(300.000) |
594.207 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
300.629 |
656.700 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export (FOB) |
770.560 |
1629.844 |
1751.828 |
|
|
|
Income from engineering contracts |
0.000 |
13.434 |
19.131 |
|
|
|
Dividends |
18.169 |
0.000 |
|
|
|
|
Others |
1.364 |
1.537 |
1.209 |
|
|
TOTAL EARNINGS |
790.093 |
1644.815 |
1772.168 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3604.911 |
4682.857 |
4807.328 |
|
|
|
Stores, Spare Parts, Components and Fuel |
491.210 |
483.167 |
443.191 |
|
|
|
Goods for trade |
0.582 |
49.025 |
11.736 |
|
|
|
Capital Goods |
14.679 |
195.608 |
433.941 |
|
|
TOTAL IMPORTS |
4111.382 |
5410.657 |
5696.196 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.48 |
(20.14) |
5.91 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
5533.320 |
5971.720 |
6662.390 |
|
Total Expenditure |
4795.590 |
5575.640 |
6018.110 |
|
PBIDT (Excl OI) |
737.730 |
396.080 |
644.280 |
|
Other Income |
15.480 |
394.660 |
23.390 |
|
Operating Profit |
753.210 |
790.740 |
667.680 |
|
Interest |
419.980 |
379.690 |
388.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
333.230 |
411.050 |
279.180 |
|
Depreciation |
159.120 |
162.130 |
168.450 |
|
Profit Before Tax |
174.110 |
248.920 |
110.720 |
|
Tax |
33.350 |
74.070 |
39.720 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
140.760 |
174.850 |
71.000 |
|
Extra Ordinary 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 |
140.760 |
174.850 |
71.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.11
|
(9.61) |
3.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.16
|
(12.82) |
4.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.54
|
(6.77) |
3.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
(0.14) |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.29
|
1.23 |
2.58 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.78
|
2.11 |
2.58 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, a multi-product company was incorporated on 29th
November 1937 at Mumbai, multi-division company involved in the business of Steel
Manufacturing, Industrial Machinery Manufacturing and Highway Construction. The
Company is a supplier of alloy steel to the automobile and auto component
industry and a leader in the manufacture of high grade stainless steel in
PERFORMANCE:
The Company maintained the net sales and other income for the year at Rs.19942.000 millions as against Rs.19484.000 millions in the previous year.
The profit before net forex gains / losses, interest, depreciation, exceptional items and taxes was higher at Rs.2776.900 millions as compared to Rs.101.980 millions in the previous year.
Exports during the year were lower at Rs.771 millions as against Rs.1630.000 millions in the previous year as a direct impact of the continued global recessionary trends.
The salient features of the operating performance of each segment during the year are discussed in the following paragraphs.
Specialty Steel
Division:
The net sales of alloy, special and stainless steel long products stood at Rs.16331.000 millions compared to Rs.16502.000 millions in the previous year. However, the sale of specialty steel products in terms of volume was higher by 26%o at 295,946 metric tons as compared to 235,225 metric tons in the previous year. This disproportion between value and volume was mainly due to the reduction in the rate of excise duty and reduced selling prices of the specialty steel products consequent to the fall in input prices during the first half of the year.
Most of the commodity prices began to rise from the second half of the year. The Coke prices that were falling in the first half of the year began to steadily move upwards from USD 265 per metric ton in the month of July 2009 to USD 395 in the month of February 2010. However, in the month of March 2010, the prices rose sharply from USD 395 to USD 460 per metric ton. These prices are likely to firm-up further during the year in progress. The prices of other major inputs, like, nickel, furnace oil, Ferro-alloys, melting scrap, etc. which were falling at the beginning of the year also moved up in the fourth quarter. The Company also had to procure iron ore from the market at an additional cost due to the paucity in the supplies of iron ore from their contracted source.
In the second half of the year, the Company completed the capital expenditure programme thereby bringing its specialty steel making and rolling capacity, to half a million ton per annum. The investment made by the Company vis-a-vis the increase in capacity is fairly low. Not only that, the Company also managed the expansion activities in a running facility without interrupting its production line.
In the Ginigera, Karnataka facility, the Company expects to commission the 15 mega watt captive power plant based on waste gases emitted from a mini blast furnace by the month of July 2010.
The first quarter of the year in progress saw an increased momentum in automobile sales resulting in an increased demand for their specialty steel products. The Company continues to focus on developing highly specialized grades of alloy and stainless steel products that command a premium in the market.
The Company has received approvals from renowned domestic and international customers to supply various grades of specialty steels. The Company has also developed several grades which were hitherto entirely imported.
The demand for specialty steel products has improved consequent to higher demand in the automotive and engineering sectors. This growth is expected to accelerate in the year in progress.
Industrial Machinery
Division:
During the year, this Division reported a turnover of Rs.3031.000 millions as against Rs.2441.000 millions in the previous year. Though the market conditions remained subdued during the year, the Division achieved an increase in the turnover on account of the orders in hand at the beginning of the year. The Industrial Machinery Division has been showing continuous improvement in its performance and has orders on hand
aggregating Rs.4661.000 millions as at the end of the year.
The Division continues its focus on the design, manufacture, erection and commissioning of heavy duty cranes and equipment for ports and process plants. It has, in the year, successfully completed the supply and erection of a 500 metric ton four girder double trolley crane for a power plant, electric level luffing and large capacity electric overhead traveling cranes for a large engineering company, and level luffing cranes for several sea ports in the Country. The Division commissioned a 60 metric ton carrying capacity, 55 meter radius level luffing traveling tower crane for a shipyard along with Messer Obe Machinery of Japan. Supplies for the second and third crane for the same customer are under progress. The Division also proudly supplied and commissioned 11 rotating trolley cranes for a steel plant in the Country.
The division started the dispatches of equipment for IISCO for their Universal Mill Project and plans to complete the majority of the supplies during the next financial year. It has also supplied electrical packages to various power plants for NTPC and expects to complete all supplies during the next financial year.
Road Construction
Division:
The revenue from this Division was lower for the year at Rs.285.000 millions as compared to Rs.377.000 millions in the previous year as the project is nearing completion. As on March 31, 2010, the Division completed 296 km of two lanes of the main carriage way and 70 km of service roads; representing 99% of the total work of both the Projects.
Of the two
Projects, one near
The Company has incurred losses in this segment of the business due to incremental jobs executed, cost escalations, time-overruns, etc. Although the full financial outcome of the Division's activity cannot be estimated with certainty at present, the management has accounted for the losses currently expected till the close of the year, keeping in mind the claims made by the Company.
Finance:
The working capital borrowings in the second half of the year have gone up on account of the need to fund the increased cost of inputs like metallurgical coke, iron ore, ferro-alloys, furnace oil, etc. On achieving better utilization of capacity and improvement in margins, the Company expects to reduce its dependence on borrowed capital.
JOINT VENTURES:
For stainless steel
wires:
For the manufacture of stainless steel wires, the Company invested a total of Rs.130.000 millions in a Joint Venture company, Mukand Bekaert Wire Industries Private Limited, including Rs.11.300 millions during the year under report. The joint venture company achieved 60% capacity utilization of the 6,000 metric ton installed capacity as on March 2010. Investments for installation of the additional 6,000 metric tons capacity will be made when the current utilization reaches SOI.
This joint venture company has made inroads into the domestic as well as the export markets for its products. The Company is the primary source for the supply of stainless steel wire rods for this Joint Venture and a total of 1,014 metric tons of stainless steel wire rods have been supplied in F.Y. 2009-10.
For coal mining:
The Ministry of Coal, Government of India, allocated a coal block of 10.05 millions tons in the Rajahara North (Central and Eastern), Jhorkhand coal mines to a joint venture company. Mukand's share in this joint venture amounts to 5.87 million tons of coal. This joint venture company is actively coordinating with Central Coalfields Limited to complete the required formalities with Central / State Government Agencies.
MANAGEMENT DISCUSSION
AND ANALYSIS
On the bounce
The ultimate goal of every Company during a downturn is to maintain its financial strength and sharpen its competitive position. At Mukand they strived to do just that in the year that has gone by.
The recent slump in the global economy resulted in a shift
of the economic activity to countries
such as
The BRIC nations,
Specialty steel:
The specialty steel industry perhaps is one of the first to be hit in a downturn as the automotive industry slows down. Specialty steel, being a product that is linked to virtually every industry, is more susceptible to the fluctuations of the economy. In the year, it was only in the last quarter of the financial year 2010 that companies began to experience ripples of activity across many industries, ringing in the promise of a better tomorrow.
The specialty steel
produced by the Company is mainly linked
to the fortunes of the
automotive and engineering
industries. Fortunately for
The specialty steel division maintained its net sales at Rs.16331.000 millions as against Rs.16502.000 millions in the previous year. The segment profit before interest and tax was at Rs.1631.180 millions compared to a loss of Rs.1085.580 millions in the previous year.
In the year that has gone by, Mukand concentrated on sharpening its competitive edge. The Company absorbed new technology and upgraded its processes enabling it to develop new grades for its customers. Studies to improve surface quality, enhance mechanical properties and develop import substitutions for various grades of specialty steel were successfully completed and the suggestions implemented for bulk production. These developments will definitely help Mukand cater to the high value segments of the domestic and international markets. These endeavours began to bear fruits with the Company recording an average increase of over 85 sales in the cold headed quality and specialty steel wire rods, both value added products.
The year under report also witnessed the successful commissioning and capacity achievement of the enhanced specialty steel making, rolling, heat treatment, pickling, bright drawing, peeling and wire facilities of the Company. The Company today has a capacity to produce half a million tons of specialty steel long products that are on par with the best in the world. As mentioned before, the Company's products feed into the automotive and engineering sectors which today are on a steady path to growth. The Company will utilize its added capacity to meet the growing needs of these sectors.
Rising input costs and a paucity of some of the inputs required for specialty steel making are however, causes for concern. Prices of inputs such as metallurgical coke, iron ore, nickel, ferro chrome, shredded scrap began to rise from the second half of the year under report.
Availability of Iron ore, a major input for the specialty steel making process, is also a cause for concern. Increase in the global demand for iron ore resulted in the bulk of the Country's mineral wealth being exported. Close to 50% of the iron ore produced in the country is exported. This has in turn put pressure on the price and more importantly, availability of iron ore in the growing domestic specialty steel market.
India also faces a huge shortage of coking coal, another important component of steel making. It is expected that the demand for coking coal will increase on the back of a strong steel industry, which in turn will lead to higher imports and higher prices.
The growing demand for the Company's products enabled the Company to mitigate the rising input costs by increasing its selling prices by 12-15% during the year. Increased domestic capacity, competition from cheaper imports as a fall out of the lower demand from developed nations, reduction in the import duty and strengthening of the Indian rupee will constantly put pressure on the Company's product pricing. The Company however, hopes to increase its selling prices, from time to time, to meet the rising raw material prices.
Cost management will remain the key driving factor for profitability for any company. The Company reduced its operating and over head costs through improving productivity and yield, conserving energy and water, process development, etc.. The Company also installed downstream facilities to improve its product mix and made investments to reduce cost of production. As part of its long term investments for sustainability, the Company installed a 15 mega watt captive power plant based on waste gasses emitted from a mini blast furnace which will be commissioned in July 2010 bringing down the energy costs of the facility. The Company is also in the process of setting up a coke oven plant near its facility in Ginigera, Karnataka.
In order to maintain its leadership position in the market, the Company is focusing its efforts on receiving the internationally reputed Deming Prize. The Company has also initiated the process for certification of the environment management system ISO 14001:2004.
Industrial Machinery:
The Division has maintained its leadership position in the design, manufacture and assembly of heavy duty cranes, bulk handling and process plant equipment. The Division recorded a 24% growth in the turnover despite sluggish market conditions. This growth was attainable mainly due to the good order book in hand at the beginning of the year.
The net sales of this Division was Rs.3031.000 millions as against Rs.2441.000 millions in the previous year. The segment profit before interest and lax stood at Rs.735.700 millions as compared to Rs.696.630 millions in the previous year.
The Division, along with Obe Machinery, Japan, completed the supply and erection of a 60 metric ton carrying capacity, 55 metre radius level luffing traveling tower crane for a modern shipyard in the Country. Orders for two more similar cranes from the same customer are in progress. The Company has also installed a 500 ton four girder double trolley crane for a power plant, 11 numbers of rotating trolley cranes for an integrated specialty steel plant and electrical level luffing cranes for major ports.
A consortium of companies including the Company, SMS Germany and Siemens India, were awarded the manufacture and erection of equipment for a new universal section mill for Indian Iron and Steel Company (IISCO). The total project cost is Rs.9000.000 millions of which the Company's share amounts to Rs.1500.000 millions. The Company also received orders from National Thermal Power Corporation for the supply, installation and commissioning of electrical equipment, cabling hardware, including design, supply and installation of lighting systems for super thermal power plants.
With the recessionary markets showing signs of recovery, the Government of India has resumed its infrastructure building activities in all major sea ports and public sector manufacturing enterprise. Large private manufacturing companies, who had hitherto put their expansion programmes either on hold or on a slow pace, are also expected to release their plans to gear up for a better tomorrow. This renewal of activity will enhance the order book of the Division.
The company is in
trade terms with:-
Ř
A. N.
Instruments Private Limited
Ř
A. S.
Industries
Ř
Aeroflex
Industries Private Limited
Ř
Aero-Tech
Ducon Systems Private Limited
Ř
Alliance
Engineering Company
Ř
Allied
Instruments and Thermocouples,
Ř
Ř
National
Engineering Corporation
Ř
Navjeevan
Engineering Works
Ř
Pallave
Chemical Industries
Ř
Kumar
Industries
Ř
S. N.
Engineering Works
Ř
Pipe
Supports
Ř
Universal
Oil Seals Manufacturers Company Private Limited
Ř
Vimtex
Machinery
Ř
Vinil
Process Controls Private Limited
Ř
Windston
Springs Private Limited
The company has
Joint Venture with Mukand International Limited,
STANDALONE
FINANCIAL RESULTS (UNAUDITED) FOR THE QUARTER AND NINE MONTH ENDED DECEMBER 31,
2010
(Rs. in millions)
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
Gross
Sales |
7210.323 |
19672.253 |
|
Less:
Excise Duty Recovered |
618.216 |
1748.726 |
|
(a) Net
Sales / Income from operations |
6592.107 |
17923.527 |
|
(b)
Other Operating Income |
70.286 |
209.996 |
|
Total
Income |
6662.393 |
18133.523 |
|
Expenditure |
|
|
|
(Increase)
/ Decrease in stock in trade and work in progress |
(473.526) |
(1411.5950 |
|
Consumption
of raw materials |
3721.413 |
9924.061 |
|
Purchase
of traded goods |
112.924 |
253.804 |
|
Stores,
spares, components, tools etc consumed |
914.624 |
2553.668 |
|
Employees
cost |
349.167 |
872.833 |
|
Power
and fuel |
465.823 |
1289.910 |
|
Other
expenditure |
927.685 |
2591.260 |
|
Depreciation |
168.453 |
489.703 |
|
Total |
6186.563 |
16563.644 |
|
Profit
from operations before write off, other income, interest and exceptional
items |
475.830 |
1569.879 |
|
Bad
debts/ advances written off |
-- |
(280.126) |
|
Profit
from operations before other income, interest and exceptional Items |
475.830 |
1289.753 |
|
Other
income |
|
|
|
Net
income form transfer of land |
-- |
384.990 |
|
Other
income |
23.392 |
47.181 |
|
Finance and lease charges (net) |
(388.500) |
(1188.169) |
|
Exceptional
items (net) – Income/ (Expenditure) |
-- |
-- |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
110.722 |
533.755 |
|
Tax
expense |
39.720 |
147.145 |
|
Profit
from ordinary activities after tax |
71.002 |
386.610 |
|
Prior
period adjustments (net) |
-- |
-- |
|
Net
Profit (+) / Loss (-) for the year period |
71.002 |
386.610 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
731.257 |
731.257 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be annualised) |
0.97 |
5.29 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
0.97 |
5.29 |
|
Public
shareholding |
|
|
|
Number of shares |
32835745 |
32835745 |
|
Percentage of shareholding |
44.91 |
44.91 |
|
|
|
|
|
Shares
held by promoter and promoter group Nos. |
-- |
40278384 |
|
Percentage
of total share capital |
-- |
55.09 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
-- |
16224415 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
22.19 |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
40.28 |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
-- |
24053969 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
32.90 |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
59.72 |
Rs. in Millions
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
Unaudited |
Unaudited |
|
Segment Revenue
(Net of Excise Duty) |
|
|
|
Steel |
5931.867 |
15897.407 |
|
Industrial Machinery |
639.120 |
1968.710 |
|
Road Construction |
29.111 |
81.809 |
|
Total |
6600.098 |
17947.926 |
|
Less: Inter Segment Revenue |
(7.991) |
(24.399) |
|
Total segment revenue (net of excise duty) |
6592.107 |
17923.527 |
|
|
|
|
|
Segment Results |
|
|
|
Steel |
380.424 |
1198.043 |
|
Industrial Machinery |
184.544 |
505.565 |
|
Road Construction |
(40.221) |
(75.026) |
|
Less: Inter segment margin |
(0.437) |
(1.881) |
|
Total segment results |
524.310 |
1626.701 |
|
Add/ Less |
|
|
|
Other net unallocable (expenditure) / Income |
(25.088) |
95.223 |
|
Profit before interest and exceptional items |
499.222 |
1721.924 |
|
Add / Less: Finance / Lease charges (Net) |
(388.500) |
(1188.169) |
|
Exceptional items (Net expenditure) / Net Income |
-- |
-- |
|
Profit after prior period adjustment and before tax |
110.722 |
533.755 |
|
|
|
|
|
Capital Employed
|
|
|
|
Steel |
-- |
28051.976 |
|
Industrial Machinery |
-- |
3544.072 |
|
Road Construction |
-- |
1913.475 |
|
Unallocable (Net) |
-- |
(14463.174) |
|
Total |
-- |
19046.349 |
Note:
1. During the quarter, Company has concluded a comprehensive waqe settlement
with its Union of Daily Rated Workmen for its Plant at Diqhe for a period of
four years and eight months effective from November 2010. This result includes
a charge aggregating Rs 43.300 Millions
on account of ex-gratia / adhoc amounts under the settlement and payment
of incentives to other employees amounting to Re 18.000 Lakhe.
2. Management’s response to the qualifications of the auditors on tii
financial statements for the year ended 31.03.2010
a) Advances due from and investments made in Vidyavihar Containers
Limited (VCL), aggregating Rs.1106.379 Millions
has reduced to Rs.1097.599 Millions
as at 31st December 2010. The Company, barring any
significant uncertainties in future, relies upon the VCL management’s
estimation of realizable values of the financial assets of VCL, and the Company
also relies upon VCL management’s estimation of its additional expected
realization from its real estate development arrangement with a developer, to
be able to recover its Exposures;
b) Investments made in and outstanding loans to Mukand Global Finance
Limited (MGFL), aggregating Rs. 268.195 Millions has remained same at Rs.268.495 Millions as at 31st December 2010. The
Company is in the process of disposing off this investment and is negotiating
the sale;
c) The debts due from Bombay Forgings Ltd. (BFL), aggregating Rs.803.336
Millions has reduced to Rs.720.685
Millions as at 31 December 2010. The
Company,’ considering its long-term view on the Exposures, barring any
significant uncertainties in future relies upon the projected future earnings
from the business activities of BFL which arc considered by the management t to
be adequate.
d) The debts and advances due from Stainless India LW. (SIL), aggregating
Rs. 586.990 Millions has reduced to Rs.397.801
Lakln as at 31st December 2010, The Company, barring any significant
uncertainties relies upon the estimated realizable value 01 We unencumbered
assets of SIL as at 31St December 2010 which are considered by the management
to be adequate.
e) In view of the substantially large outstanding claims by the Company
for incremental jobs executed, escalations and time overruns for Road
Construction Division, amounting to Rs. 1191.933 Millions which have reduced to Rs. 1187.802
Millions as at. 31st December
2010, losses currently expected are recognized as per the judgment of the
management and the shortfall, if any, will be adjusted only on final settlement
of claims which is expected by 30 September 2011.
3. Tax expenses include provision for current tax, deferred tax arid
wealth tax.
4. Figures in respect of previous quarter / nine months / year have been
regrouped / recast wherever necessary.
5. During the quarter, 12 complaints were received from investors which
have been resolved. No complaints of investors were pending at the beginning of
the quarter as well as at the end of the quarter.
6. The above results have been reviewed by the Audit Committee and
approved by the Board of Directors at their meeting held 7th
February 2011. Statutory Auditors have carried out a “Limited Review” of the
financial results of the quarter as shown above.
Contingent
Liabilities not provided for
|
Particulars |
31.03.2010 (Rs. in
millions) |
|
Disputed matters in appeal/contested in respect of: |
|
|
-Income Tax |
203.566 |
|
- Excise Duty, Customs Duty etc. |
27.231 |
|
- Sales Tax, Works Contract Tax etc. |
141.189 |
|
- Other matters |
2.416 |
|
(ii) Claims against the Company not acknowledged as debts as these are
disputed and pending disposal at various fora. For items (i) and (ii) The Company has taken legal and other steps to protect ifs interest in
respect of these matters, which is based on legal advice and/or precedents in
its own/other cases, It is not possible to make any further determination of
the liability which may arise in these matters. |
168.383 |
|
(iii) Bills discounted with the Bankers and others-Sale Bills
discounted |
132.170 |
|
(iv) Guarantees and Counter guarantees given by the Company on behalf
of |
|
|
- Other Companies |
517.539 |
|
(v) Bonds / Undertakings given by the Company under concessional duly/
exemption to Customs / Excise Authorities (Net of redemption applied for) |
6.569 |
|
(vi) Bonds given by the Company against import of machinery under EPCG
Scheme. (Net of redemption applied for) |
256.004 |
FIXED ASSETS:
- Railway Siding
- Buildings and Roads
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Intangible Assets - Software
WEBSITE DETAILS:
HISTORY:
Mukand Iron and Steel Works Limited, re-christened ‘Mukand Limited' on
and from March 23, 1989, was registered on November 29, 1937. The Company then
operated re-rolling mills and foundry in
The Steel Plant at Kalwe commenced operations in 1965. A structural shop,
later re-christened ‘Machine Building Division' was also set up at Kalwe by the
same year. The Company established its leadership in the two businesses, steel
and machine building, fairly quickly.
The history of Subject is the history of its resilience, continual renewal and
resurgence.
STEEL TECHNOLOGY
Subject's leadership in steel technology is built on a long history of
pioneering, kept alive by adaptive absorption of advanced technology's
sustained in-house research and development.
Subject was
Subject was the first in
Mukand's steel plant is the fourth in the world to introduce the ‘easy draw
continuous cooling' system for wire rods.
Subject has a record of proven leadership in building the machines that
build the sinews of economic power.
As machine builders, Subject has worked with the best and the biggest
companies in their fields in the world : Dravo Wellman Company (United States
of America), Fives-Cail Babacock (France), Hitachi Limited (Japan), Lurgi
Chemie (Germany), Peiner (Germany), SKET Export-Import (Germany), Skodaexport
(Czech republic), Syprim SA (France). It has supplied plant and equipment all
over
Subject's track record of unique ‘firsts' in machine building in
- The largest India-designed and manufactured gantry crane of 80-tonne capacity and 60-metre span, with monobox girder and underslung trolley
- Four girder ladle crane
- Computer-controlled crane
- Ship loader and ship unloader
- A
34-metre long and 4.2-metre dia. rotary dryer, the largest now in use in
- A 40-metre high structure that moves on wheels, weighing about 700 tonnes, with multi-level folding platforms and remote-controlled doors for vertical assembly of augmented satellite launch vehicle (ASLV) – a ‘vertical workshop' with an array of electronically controlled equipment at various levels – for the Indian Space Research Organisaion.
- Open gantry area : 6,000 sq.mtrs.
Mukand's outstanding achievements won for it the Confederation of
Engineering Industry's prestigious award in the area of technology and
innovation.
PRESS RELEASES:
7 February 2011
Press note
40% INCREASE IN SALES
Mukand Ltd. recorded a 40% increase in net sales in the third quarter ended December 31, 2010 at Rs 6662.400 Millions as against Rs. 4776.600 Millions of the corresponding period in the previous year.
The turnover of steel division recorded an increase of 50% as against the corresponding period in the previous year, while the Industrial Machinery division recorded a decrease in revenues by Rs 71.000 Millions in the same period. of the growing domestic and global markets.
The payments made to the workers as the result of a comprehensive wage settlement that the company entered into for a period of four years and eight months effective from November 2010, the incentive payments made to other employees of the company and forex losses during this quarter all contributed in the PAT witnessing a decrease of 53% as against the corresponding period in the previous year.
Anna Abraham
Chief, Corporate Communications
Mukand Ltd.
July 28, 2010
MUKAND RECORDS 26%
INCREASE IN TURNOVER
Mukand Limited recorded a 26% increase in the gross sales including
other operating income at Rs.6080.000 millions in the quarter ended June 30, 2010
as against Rs.4790.000 millions for the same period in the previous year. The
profit before tax rose by 22% at Rs.174.100 millions in the first quarter of
the current year, as against Rs.142.300 millions for the same period in the
previous year.
The significant growth in the auto sector, resulted in a 33% increase in
the Company's speciality steel net sales at Rs.4780.000 millions in the current
quarter, as against Rs.3580.000 millions in the corresponding quarter of the
previous year. The Company envisages a quarter by quarter growth in sales on
the basis of the growth plans of its key automobile customers. The Company has
completed its modernization and expansion programme and is poised to feed the
requirements of the growing domestic and global markets.
The first quarter of the year, saw the Industrial Machinery division
focusing on the installation and commissioning of several large orders
including an electric level luffing crane for Kochi shipyard which is the
largest such crane in the country, two level luffing cranes for Tuticoron port,
etc. The division has an outstanding order book of Rs.4130.000 millions as on
June 30,2010 and expects to maintain its compounded yearly growth of 18%.
Mukand has installed a 15MW capacity power plant at its facility in
Hospet, Karnataka. This power plant is based on the waste gases from the mini
blast furnace thus reducing the Company's dependency on power generated from
conventional forms while also reducing its energy costs.
Mukand Limited is happy to announce that it received the SKF supplier
excellence award 2009 for excellent quality performance. The Company is the
only steel company in the world to have received this award from this global
giant this year.
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.44.93 |
|
|
1 |
Rs.72.91 |
|
Euro |
1 |
Rs.64.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
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 |
|
67 |
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.