MIRA
INFORM REPORT
|
Report Date : |
03.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA UGINE STEEL COMPANY LIMITED |
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Registered Office : |
73/74, Ganesh Apartments, 7th Floor, Opposite Sitaladevi |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
19.12.1962 |
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Com. Reg. No.: |
11-12542 |
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Capital Investment / Paid-up Capital : |
Rs.324.800 Millions |
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CIN No.: [Company
Identification No.] |
L99999MH1962PLC012542 |
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TAN No.: [Tax
Deduction and Collection Account No.] |
MUMM20210B |
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PAN No.: [Permanent
Account No.] |
AAACM4998G |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the stock exchanges. |
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Line of Business : |
Manufacturers of Alloy Steel |
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No. of Employees
: |
1711 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 66000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered good for normal 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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 : |
73/74, Ganesh Apartments,7th Floor, Opposite Sitaladevi |
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Tel. No.: |
91-22-24444287 |
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Telefax No.: |
91-22-24458196 |
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E-Mail : |
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Website : |
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Factory : |
Steel Jagdishnagar, Khopoli - 410 216, District Raigad, Tel. No. :
91-2192-263318 / 263347 / 262487 / 262488 / 263589 Fax No. :
91-2192-263073 / 263076 / 268502 Stampings ·
371, Tel. No. : 91-2114-255289 / 294 Fax No. : 91-2114-255293 ·
Plot No. D-2, MIDC, Ambad, Nashik- 422 010, Tel. No. : 91-253-6613400 / 6613406 Fax No. : 91-253-6613409 ·
Tel No. : 91-5944-280921 |
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DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Keshub Mahindra |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Mr. Anand G. Mahindra |
|
Designation : |
Vice Chairman |
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Name : |
Mr. Udya Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. K. V. Ramarathnam |
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Designation : |
Managing Director |
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Name : |
Mr. Hemant Luthra |
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Designation : |
Director |
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|
Name : |
Mr. R. R. Krishnan |
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Designation : |
Director |
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Name : |
Mr. Harsh Kumar |
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Designation : |
Director |
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Name : |
Mr. S. Ravi |
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Designation : |
Director |
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Name : |
Mr. Manoj Kumar Maheshwari |
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Designation : |
Director |
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Name : |
Mr. Sanjiv Kapoor |
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Designation : |
Director |
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Name : |
Ms. Sarojini Dikhale |
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Designation : |
Nominee of LIC |
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Name : |
Mr. Daljit Mirchandani |
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Designation : |
Director |
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Name : |
Mr. Nikhilesh Panchal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Kadhao |
|
Designation : |
Company Secretary |
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E-mail : |
relationinvestors@mahindra.com |
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Name : |
Mr. Arjit Das |
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Designation : |
Chief Executive Officer – Stampings |
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Name : |
Mr. Partha Sarathi Roy |
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Designation : |
Chief Finance Officer |
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Audit Committee: |
·
Mr. Daljit
Mirchandani ·
Mr. R R Kirshnan ·
Mr. ·
Mr. Manoj Kumar
Maheshwari ·
Mr. Sanjiv Kapoor |
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|
|
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Remuneration Committee: |
·
Mr. Hemand Luthra ·
Mr. Sanjiv Kapoor ·
Mr. S. Ravi ·
Mr. Daljit
Mirchandani |
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|
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Investor’s Grievance Committee: |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
18,019,489 |
55.47 |
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|
18,019,489 |
55.47 |
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Total
shareholding of Promoter and Promoter Group (A) |
18,019,489 |
55.47 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
9,716 |
0.03 |
|
|
910 |
-- |
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|
1,777,770 |
5.47 |
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|
18,450 |
0.06 |
|
|
1,806,846 |
5.56 |
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|
|
|
|
|
1,306,699 |
4.02 |
|
|
|
|
|
|
7,488,682 |
23.05 |
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|
3,652,121 |
11.24 |
|
|
208,692 |
0.64 |
|
|
207,461 |
0.64 |
|
|
231 |
-- |
|
|
1,000 |
-- |
|
|
12,656,194 |
38.96 |
|
Total
Public shareholding (B) |
14,463,040 |
44.53 |
|
Total
(A)+(B) |
32,482,529 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
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|
-- |
-- |
|
Total
(A)+(B)+(C) |
32,482,529 |
-- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Alloy Steel |
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Products : |
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PRODUCTION STATUS
(As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity Per Annum |
Installed
Capacity Per
Annum |
Actual
Production |
|
Tool, alloy and Special steel |
M/T |
180000 |
180000 |
126232 |
|
Pressed Sheet metal components and assemblies |
M/T |
66400 |
66400 |
55275 |
GENERAL INFORMATION
|
Customers : |
·
Tata ·
Ashok Leyland ·
Maruti Suzuki ·
Flender ·
Silvertech Engineering LLC ·
BHEL ·
Siemens ·
Energy Alloys ·
Cummins ·
Suzlon ·
John Deere ·
Kran Rader Private Limited ·
Mahindra ·
Ingersoll Rand ·
Tata Steel ·
Ferromatik Milacron ·
·
SKF ·
Timken ·
Shanthi ·
Komatsu ·
NEI ·
FAG ·
Sandvik ·
WFI ·
Indian Railway ·
Supreme Rolls ·
Tata Bearings ·
Suzlon ·
PSL ·
Toyota Kirloskar Private Limited ·
TRW |
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No. of Employees : |
1711 (Approximately) |
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Bankers : |
·
State Bank of ·
Dena Bank ·
Bank of ·
Bank of ·
ING Vysya Bank Limited ·
Standard Chartered Bank ·
DBS Bank Limited ·
Yes Bank Limited ·
IDBI Bank Limited |
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Facilities : |
The above loans include interest accrued and due of Rs.9.700 millions;
(2009-2010 - Rs.10.700 millions).
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|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Mumbai, |
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Solicitors : |
Khaitan and Company |
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Fellow Subsidiaries : |
·
Mahindra Forgings Limited ·
Mahindra Intertrade Limited ·
Mahindra Navistar Automotives Limited ·
Bristlecone India Limited ·
Mahindra Gujarat Tractors Limited ·
Mahindra logistics Limited ·
Mahindra Gears and Transmission Private Limited ·
Mahindra Vehicle Manufacturers Limited (Formerly
Mahindra Automotive Limited) ·
Mahindra Steel Service Centre Limited ·
Mahindra Castings Limited (Formerly Mahindra
Hinoday Industries Limited) ·
Mahindra Automobile Distributors Private. Limited
(Formerly Mahindra Renault Private Limited) ·
Falkenroth umformtechnik GMBH ·
Mahindra Consulting Engineers Limited ·
Mahindra Metalcastello Sri. ·
Gesenkschmiede Schneider GmbH ·
Mahinra Holidays and Resorts India Limited ·
Mahindra First Choice Wheels Limited ·
Mahindra Engineering and Chemical Products
Limited ·
Mahindra First Choice Services Limited |
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|
|
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Holding Company : |
·
Mahindra and Mahindra Limited |
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|
|
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Group Companies : |
·
Mahindra Comppsites Limited ·
Mahindra Sona Limited (Joint Venture of Holding
Company) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
119000000 |
Equity Shares |
Rs.10/- each |
Rs.1190.000 millions |
|
3100000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.310.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.1500.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
32482529 |
Equity Shares |
Rs.10/- each |
Rs.324.800
millions |
(16466789 equity
shares are held by Mahindra and Mahindra Limited (M and M), the Holding
Company. As at 31st March 2008, the holding
company was Mahindra Holdings and Finance Limited (MHFL) and held the
same number of equity shares. MHFL was merged with the ultimate Holding Company
M and M during 2008-09).
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
324.800 |
324.800 |
324.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Employees Stock Options Outstanding |
12.600 |
13.000 |
13.000 |
|
|
4] Reserves & Surplus |
1314.700 |
1374.300 |
1365.600 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1652.100 |
1712.100 |
1703.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1931.900 |
2071.300 |
2184.800 |
|
|
2] Unsecured Loans |
1503.400 |
1328.400 |
1174.300 |
|
|
TOTAL BORROWING |
3435.300 |
3399.700 |
3359.100 |
|
|
DEFERRED TAX LIABILITIES |
65.200 |
98.500 |
68.900 |
|
|
|
|
|
|
|
|
TOTAL |
5152.600 |
5210.300 |
5131.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2867.700 |
3046.300 |
2222.400 |
|
|
Capital work-in-progress |
141.600 |
14.700 |
1037.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
140.900 |
140.900 |
140.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1631.500
|
1540.800
|
1243.100
|
|
|
Sundry Debtors |
2659.200
|
2319.500
|
1752.300
|
|
|
Cash & Bank Balances |
19.200
|
50.400
|
162.500
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
577.000
|
478.500
|
352.700
|
|
Total
Current Assets |
4886.900
|
4389.200
|
3510.600
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1422.600
|
1116.100
|
984.700
|
|
|
Other Current Liabilities |
1371.200
|
1166.500
|
708.400
|
|
|
Provisions |
90.700
|
98.200
|
87.200
|
|
Total
Current Liabilities |
2884.500
|
2380.800
|
1780.300
|
|
|
Net Current Assets |
2002.400
|
2008.400
|
1730.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5152.600 |
5210.300 |
5131.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13405.200 |
10878.800 |
10734.200 |
|
|
|
Other Income |
23.900 |
14.600 |
17.600 |
|
|
|
TOTAL (A) |
13429.100 |
10893.400 |
10751.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and other Expenses |
12872.900 |
10247.900 |
10318.300 |
|
|
|
Increase/(Decrease) in Finished Goods |
(86.200) |
(157.800) |
110.600 |
|
|
|
TOTAL (B) |
12786.700 |
10090.100 |
10428.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
642.400 |
803.300 |
322.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREDST (D) |
423.900 |
408.300 |
360.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
218.500 |
395.000 |
[37.700] |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
314.500 |
308.700 |
247.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(96.000) |
86.300 |
(285.100) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(36.300) |
39.600 |
(96.800) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(59.700) |
46.700 |
(188.300) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
462.500 |
453.800 |
642.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
0.000 |
32.500 |
0.000 |
|
|
|
Tax on Dividend |
(0.100) |
5.500 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
402.900 |
38.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
269.100 |
63.700 |
75.700 |
|
|
|
Freight and insurance |
6.200 |
1.800 |
1.700 |
|
|
TOTAL EARNINGS |
275.300 |
65.500 |
77.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1781.400 |
1437.900 |
2151.200 |
|
|
|
Stores & Spares |
97.000 |
88.000 |
52.300 |
|
|
|
Capital Goods |
3.500 |
0.000 |
8.500 |
|
|
TOTAL IMPORTS |
1881.900 |
1525.900 |
2212.000 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(loss) Per Share (Rs.) |
(1.84) |
1.44 |
(5.80) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
3715.370 |
|
Total Expenditure |
|
|
3507.890 |
|
PBIDT (Excl
OI) |
|
|
207.480 |
|
Other Income |
|
|
3.060 |
|
Operating
Profit |
|
|
210.540 |
|
Interest |
|
|
119.310 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
91.230 |
|
Depreciation |
|
|
80.300 |
|
Profit
Before Tax |
|
|
10.930 |
|
Tax |
|
|
5.890 |
|
Provisions
and contingencies |
|
|
0.000 |
|
Profit
After Tax |
|
|
5.040 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
5.040 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(0.44)
|
0.43
|
(1.75) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.72)
|
0.79
|
(2.66)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.24)
|
1.16
|
(4.97)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.06)
|
0.05
|
(0.17)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.83
|
3.38
|
3.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.84
|
1.97
|
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
The Indian economy has maintained its growth momentum by posting a 8.6%
growth for the year . The alloy steel industry also recovered from the slow down
of the previous year. However, the recovery of the alloy steel industry was
affected in the second half of the year
due to the sharp rise in cost of input raw material, power and fuel. The
Company was able to recover from its customer’s only part of the rise in these
costs. Further, due to inflationary and liquidity pressure on the economy, the
cost of borrowing witnessed rise and impacted the overall performance of the
Company, in general and particularly the steel business
During the year the Company
suffered a net loss of Rs.59.700 Millions as compared to net profit of Rs46.700
Millions earned in the corresponding previous year. The gross income of the
Company grew by 23.28% from Rs.10893.400 Millions to Rs.13429.100 Millions. The
earnings before other Income, Interest and depreciation (EBIDTA) for the year
was Rs.618.500 millions as compared to Rs.788.700 millions in the previous
year.
STEEL AND RING
BUSINESSES:
During the year , the Company sold 1,23,447 tonnes of alloy steel
products as compared to 1,21,654 tonnes sold in the previous year, registering
a growth of around 1.5%. The Company registered sales revenue of Alloy and
Steel products aggregating Rs.7497.900 Millions for the year as compared to
Rs.6176.100 Millions of the previous year posting a growth of 21%. The rise in
sales revenue is largely attributable to enriched product mix in the year
2010-11 as compared to that of the previous year.
The Company also registered sales of 2785 tonnes of Ring (Bearing Races)
for a value of Rs.243.200 Millions during the year as compared to sales of 983 tonnes for a
value of Rs.84.900 Millions recorded in the previous year.
During the year , the Company has stabilized the production of the
Continuous Mill. The Company is also expected to derive benefit of lower power
cost from second half of financial year (FY) 2011-12, once the regulatory
approvals are in place, at an agreed rate from Wardha Power Company Limited, in
whose equity the Company has invested. The management continuously takes all
efforts and initiatives to improve the volume, value added products,
productivity, efficiency and input cost of production to maintain growth of the
business.
STAMPINGS
BUSINESS:
During the year , the sales volume of the Stampings business of the
Company grew from 50,013 MT (previous year) to 55,364 MT registering a growth
of 10.70%. The sales value for the Stampings business for the year was
Rs.4734.900 Millions as compared to Rs.3749.600 Millions recorded in the
previous year, registering a growth of around 26%. The robust growth witnessed
by the Stampings business is on account of various initiatives taken by the
management to expand its business and, by exploiting the growth in the
automobile industry.
The growth of the Stampings business is expected to remain firm in the
near future, as it has product orders in the pipeline for new models of
Mahindra and Mahindra Limited and Tata Motors Limited. The Pantnagar Project is
expected to start operation in the financial year 2011-12, which will further
strengthen the business volumes of the Stampings division. The Stampings
Division is committed to improve its performance by improving customer
centricity, quality and efficiency. The stampings business is expected to Post
better performance in financial year 2011-12 by participating in the growth momentum of the automobile
industry.
FINANCE:
During the year ,
the liquidity position of the Company was satisfactory. In-spite of spurt in cost
of borrowing in the year , the Company comfortably met its borrowing need for
capital expenditure as well as for working capital requirements through its
bankers.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY OVERVIEW
Mahindra Ugine
Steel Company Limited (MUSCO) operates in business segments:
- Alloy steel long products and ring
rolling — located at Khopoli,
- Stampings (Pressed Sheet metal
components and assemblies) — located at Kanhe and
Mahindra and
Mahindra Limited (MandM) holds 50.69% of the share capital in the company
whereas promoter holding stands at 547% of the total paid up share capital.
ANALYSIS OF STEEL AND RINGS (BEARING RACES)
BUSINESS SEGMENT
Industry Structure and Development
The Indian economy
recorded a GDP growth rate of 8.6% in the financial year 2010-11 due to strong
domestic demand, timely and effective monetary management by the Reserve Bank
of
A sharp rise in
input raw material costs of commodities namely iron scrap, iron ore and coke were
witnessed in the financial year . Steel companies were unable to pass on the
total input cost hike to the customers thereby experiencing a margin squeeze in
the second half the financial year 2010-11.
The alloy steel
demand in
The Government
Plan to speed up infrastructure development augurs well for the growth of alloy
steel industry. Moreover, global Original Equipment Manufacturers (OEMs) in
various market segments are increasingly looking forward to strengthen their
footprints in
PERFORMANCE, OPPORTUNITIES AND OUTLOOK
Steel and Rings (Bearing Races) business
Performance
Performance
In the financial
year 2010-11, the Steel and Rings business of the Company recorded a growth in sales
revenue by 24% on year to year basis. Despite the improvement in sales, the
business recorded lower operating profit before interest cost (PBIT) of
Rs.19.600 Millions in the financial year 2010-11 (as compared to operating
profit (PBIT) of Rs. 257.400 Millions recorded in the financial year 2009-10)
due to high input costs which could not be passed on to the customers.
In the first half
of the financial year 2010-11, the steel business (standalone without rings
business) recorded an overall improvement in the financial performance although
the sales volume was lower than expected due to a shortfall in orders from the
railways (long drawn production outage due to equipment breakdown at the
customer’s end) and slower pick up of ring sales.
The second half of
the financial year 2010-11 witnessed an improvement of sales volume as railways
commenced their production while healthy demand persisted from automobile,
bearing and the engineering segments. However, this half of the fiscal year
2010-11 experienced a sharp increase in the commodity prices thereby increasing
raw material input costs for steel making as well as a spiral up in other major
input costs especially that of electricity and furnace oil. Such increase in
input costs could not be passed on to the customers. Also, the fixed cost of
operation increased in the financial year 2010-11 as compared to that in the
financial year 2009-10 mainly on account of certain major overhauls carried out
during the year as well as increase in personnel cost.
Production and
sales of ring products fell short of plan largely because all existing products
required recertification from customers as the plant was shifted to its current
location at Khopoli after acquisition by the Company. Additionally, customers
started procuring machined rings instead of just forged rings. In absence of
in-house machining facility, MUSCO Rings had to develop a number of machining
vendors across the country resulting in a longer approval time from customers.
Managing logistics to so many vendors resulted in some instability in the
supply chain. All these resulted in loss of rings sales in financial year
2010-11 but the order pipeline, post product approvals, from both domestic and
export customers remains robust. A major overseas Original Equipment
Manufacturer (OEM) of Bearings has placed orders of rings with the Company,
while all major auto OEMs prefer MUSCO Rings since it has a captive steel
source and the approval of steel and rings can happen together.
Summarised
operational performance of Steel and Rings business for financial year 2010-11
is given below:
Sales increased
from 1,22,637 tonnes in financial year 2009- 10 to 1,26,232 tonnes in financial
year 2010-11 registering a growth of around 3%.
The sales revenue
from steel and rings products was As. 7741.100 Millions in the financial year
2010-11 as compared to Rs.6261.0 Millions recorded in financial year 2009-10
registering growth of around 24% on year to year basis.
Direct export
increased to 2373.5 tons valued at Rs268.200 Millions in the financial year
2010-11 as compared to export of 619.3
tons valued at Rs62.7 Millions recorded in the financial year 2009-10,
respectively.
The operating
margin (EBITDA) in the financial year 2010-11 declined to Rs.191.900 Millions
as compared to Rs.418.900 Millions recorded in the financial year 2009-10.
Average Power cost increased from Rs 5.11/KWH in financial year 2009-10 to
Rs.5.63/KWH in financial year 2010-11
There was foreign
exchange loss of Rs.5.600 Millions to
the Company in the financial year 201 0-1 1.
The financial
benefit that was supposed to be received by the Company from third quarter of
the financial year 2010-11 onwards due to lower contracted electricity price
with Wardha Power Company Limited did not materialise as a result of project
time overrun and pending regulatory approvals. The Company initiated many
improvement projects for reducing costs, increasing productivity and improving
quality. Process de-bottlenecking projects have been started to improve
production volume and delivery reliability.
OPPORTUNITIES AND OUTLOOK
The alloy steel
consumption in
- With a stronger order book for steel
and rings products, the Company is expected to return a strong operating
and financial performance going forward. Key management initiatives
include:
- Utilisation of full potential of recent
investments in continuous mill, steel melting shop and ring rolling and
forging equipment through completion of the de-bottlenecking and quality
improvement projects.
- Cost improvement in the area of energy
efficiency and yield improvement.
- More customers to be covered by a
pricing scheme wherein input price increases are automatically recovered
via a surcharge on commodity raw materials. This surcharge will move in
tandem with input price volatility.
The Company also
expects to derive the benefit of lower electricity tariff through power
purchase agreement during the next financial year 2011-12.
Despite the
setbacks suffered by the Company in financial year 2010-11 and specifically
during the second half of the last fiscal, the outlook for the financial year
2011-12 holds lot of promise owing to improved domestic demand for alloy steel,
stable domestic economic prospects and readiness of the Company to tap the
potential business opportunities.
PERFORMANCE
PERFORMANCE, OPPORTUNITIES AND OUTLOOK
The stampings
business had a strong growth in financial year 2010-11 in line with the growth
of the auto and farm equipment markets. The performance of the business
improved significantly as it provided economic solutions to its customers and
also increased capacity to meet their needs.
Sales and
operating income increased from Rs.4502.6 Millions in financial year 2009-10 to
Rs.5537.8 Millions in financial year 2010-11 posting a growth of 23%.
Operating margin
(EBIDTA) increased from Rs.369.800 Millions in financial year 2009-10 to
Rs.426.5 Millions in financial year 2010-11 posting a growth of 15.3 %.
In financial year
201 0-11, the Stampings business achieved the highest ever operating income,
even surpassing the then highest income achieved in financial year 2009-10.
OPPORTUNITIES AND OUTLOOK
With significant investments
slated for the automobile manufacturing sector over the next few years, the
prospects for
Steel is expected
to remain the dominant material for auto body components due to its
versatility. Steel provides a wide range of properties through the choice of
appropriate combination of composition and processing. Further, the high
recyclability of sheet metal makes it competitive vis-a-vis other substitutes
like aluminium and plastics.
The Stampings
division is fully equipped to take advantage of the above mentioned growth of
Indian automobile industry through its proven core competencies of providing
sheet steel stampings, assemblies, tools and dies to its customers. MUSCO
Stampings have been constantly upgrading skills and equipment and now have the
ability to manufacture diverse and state-of-the-art sheet steel products such
as fuel tanks with favourable quality-price ratio. In financial year 2010-11
the stampings business grew by seizing such opportunities and all efforts
towards identifying and exploiting these opportunities will continue in
financial year 2011- 12 and beyond.
To leverage this
performance and the increased customer demand, the Stampings business proposes
to expand manufacturing capacity by about 70-80% in coming years. Stampings
division’s investments at Nashik, Kanhe, Rudrapur units and new plant at
Pantnagar are expected to go on line during financial year 2011- 12 and
financial year 2012-13 bringing in extra capacities and will support the
continuous growth of stampings business.
While capacity is
being increased in response to increased demand, management has focused on
areas of value addition and cost reduction to address competitive pressures.
Use of robotics in manufacturing process is one of the ways of improving
manufacturing competitiveness, and Stampings business is continuing to extend
automation of presses at all plants. The Company expects to consolidate the
excellent results achieved in the last two fiscal years in financial year
2011-12 by leveraging its core competency of providing economical sheet metal
solutions to its customers.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2010
(Rs. in millions)
|
Particulars |
Quarter Ended |
|
30.06.2011 |
|
|
|
(Unaudited) |
|
Gross
Sales/Income from Operations |
4038.300 |
|
Less: Excise
duty |
341.826 |
|
1. a. Net Sales/Income from Operations |
3696.474 |
|
b. Other Operating Income |
18.896 |
|
Total Income (1a+1b) |
3715.370 |
|
|
|
|
2. Expenditure |
|
|
a. (Increase)/Decrease in stock in trade and work in progress |
(143.717) |
|
b. Consumption of raw materials (including processing charges) |
2541.027 |
|
c. Employees cost |
234.776 |
|
d. Depreciation |
80.299 |
|
e. Power and Fuel |
499.612 |
|
f. Other expenditure |
376.194 |
|
Total |
3588.191 |
|
|
|
|
3. Profit (+)/Loss (-) from Operations before Other Income and Interest
(1-2) |
127.19 |
|
4. Other Income |
3.055 |
|
5. Profit (+)/Loss (-) before Interest & Exceptional Items (3+4) |
130.234 |
|
6. Interest |
119.314 |
|
7. Profit/ Loss After Interest but Before Exceptional Items (5-6) |
10.920 |
|
8. Exceptional Item |
0.000 |
|
9. Profit/ Loss from ordinary Activities before Tax (7+8) |
10.920 |
|
10. Tax expense |
|
|
a. Current Tax Charge |
2.200 |
|
b. Deferred Tax Charge/ Credit |
1.598 |
|
c. Prior Period Tax charge/ (credit) |
2.078 |
|
Total |
5.876 |
|
11. Net Profit/ loss from Ordinary Activities After tax (9-10) |
5.044 |
|
12. Extraordinary Item |
0.000 |
|
13. Net Profit/ Loss for the period (11-12) |
5.044 |
|
14. Paid-up Equity share Capital (Face value of the share Rs. 10 each) |
324.825 |
|
15. Reserve excluding Revaluation Reserve as per balances sheet of
previous accounting year |
0.000 |
|
16. Earnings Per Share (EPS) (in Rs.) |
|
|
a. -Basic (not annualised) |
0.16 |
|
b. -Diluted (not annualised) |
0.16 |
|
17. Public shareholding |
|
|
-Number of
shares |
14463040 |
|
-Percentage of
shareholding |
44.53 |
|
18. Promoters and
promoter group shareholding |
|
|
a.
Pledged/Encumbered |
|
|
Number of shares |
0.000 |
|
Percentage of
Shares (as a %of the total shareholding of promoter and promoter group) |
0.000 |
|
Percentage of Shares
(as a % of the total share capital of the company) |
|
|
b.
Non-encumbered |
|
|
Number of shares |
18019489 |
|
Percentage of
Shares (as a %of the total shareholding of promoter and promoter group) |
100 |
|
Percentage of Shares
(as a % of the total share capital of the company) |
55.47 |
|
Earning before
Other Income, interest, depreciation and tax (1-2+2(d)) |
207.478 |
Notes:
1. The Company has commenced stamping operations at its Pantangar plant
on June 30, 2011
2. The above financial results were reviewed by the Audit Committee and
approved by the Board of Directors of the Company at their respective meetings
held on July 27, 2011.
3. During the quarter ended June
30, 2011, two investor complaints were received, which was promptly
attended by the company. No complaints were pending either at the beginning or
at the end of the period.
SEGMENT - WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Particulars |
Quarter Ended |
|
30.06.2011 |
|
|
|
(Unaudited) |
|
Segment Revenue |
|
|
a) Steel |
2111.993 |
|
b) Stamping |
1603.377 |
|
Total |
3715.370 |
|
Less: Inter
Segment revenue |
0.000 |
|
Total Income |
3715.370 |
|
Segment Results (Profit(+)/Loss(-)
before interest and tax from each segment) |
|
|
a) Steel |
27.918 |
|
b) Stamping |
126.252 |
|
Total |
154.170 |
|
Less: 1.
Interest |
117.696 |
|
2. Other un-allocable
Expenditure net of un-allocable Income |
25.554 |
|
Profit(+)/
Loss(-) Before Tax |
10.920 |
|
|
|
|
Capital Employed
(Segment Assets - Segment Liabilities) |
|
|
a) Steel |
2993.505 |
|
b) Stamping |
2076.502 |
|
Total |
5070.007 |
Note: Steel
segment and stamping segment comprises of sale of alloy steel and sale and
processing of pressed metal components, respectively.
Fixed Assets
·
Freehold land
·
Leasehold land
·
Buildings
·
Plant and Machinery
·
Furniture, fixtures and office equipment
·
Vehicles
As Per Website Details:
Profile
Subject, under SYSTECH sector, belonging
to the Mahindra Group is the
pioneer and well known manufacturers of alloy steel in the country. Subject is
the most trusted brand when alloy steel is referred to. The company also has
three stampings division to manufacture pressed sheet metal components and
assemblies, one at Kanhe about 1.5Km off Mumbai-Pune Highway, a major
automobile manufacturing center in the country, second at Nashik catering to all
auto products of M and M and Renault of France, and the third unit has
successfully started commercial production from October 2007 , from the modern
state-of-art new plant along with paint shop in Rudrapur (Uttarakhand
State) for many new products of customers in North India.. Mr. Keshub Mahindra
is the Chairman and Mr. Anand Mahindra is the Vice-Chairman of subject.
The Company was incorporated on 19th
December 1962. The Company commenced its operations in 1964 with a
licenced capacity of 24,000 tons per annum (tpa) capacity. In 1981, Subject
raised it's capacity to 75,000 tpa. Further in 1990, the Perin process which
was being used was replaced by the Ladle Metallurgy Technology. The current
capacity of the plant is 1,80,000 tpa. Subject is a subsidiary of Mahindra and
Mahindra Limited, the group boats of 92 companies and seven sectors namely,
Auto, Farm Equipment, Trade And Finance, Infrastructure, I.T. , Mahindra
Integrated Limited and Systech.
The steel plant is located at picturesque town of
Subject
has its well-defined Quality
Policy and Quality Objectives
and follows it strictly. The steel division, was first among all steel
manufacturing in the country to get ISO certification and was successfully re
certified for ISO 9001-2000 Certification in the year 2002 from RWTUV. In
August 2005, it has also been certified for ISO/TS 16949:2002. Both the
stampings division have also been certified for TS16949 certification since
June 2005.
The
steel division has implemented in May 2001, ERP system of SAP version 4.6c for
7 modules and has reaped immense benefits. The I.T. infrastructure is very
strongly built on LAN connecting 250 workstations and 80 network printers for
user online access of SAP servers, internal and external mail, file server for
shared information. A very secure VPN enables connectivity to external world
for the consulting partners, secretarial office and branch offices to access
SAP and mails.
Subject has
ushered in the new era of SAP by becoming the 1st manufacturing company in
Subject's
Steel Division located at Khopoli is a pioneer and a premier Alloy Steel
producer and also a single source supplier to a large number of multinationals
and other important customers in
The Chairman - Mr.
Keshub Mahindra, and The Vice Chairman and Managing Director - Mr. Anand
Mahindra of M and M are very well known as leading industrialists in
Mr. Keshub
Mahindra, a Wharton MBA with rich management experience is on the board of
several reputed industries and organisations like Tata Steel, Tata Chemicals,
Bombay Dyeing, Infrastructure Leasing and Financial Services Limited, Housing
Development Finance Corporation Limited, United World Colleges International
Limited, to name a few.
Mr. Anand
Mahindra, a Harvard MBA is the Chairman of Kotak Mahindra Finance Limited (One
of the largest finance companies in
·
M and M, is the Largest Utility Vehicle
Manufacturer in
·
M and M, is also the Largest Tractor Manufacturer
in
·
The origins of M and M's MUV division lie in the
collaboration (in 1954) between the company and the US-based Willys Overland
Corporation.
·
Other activities of M and M include Auto
Components, Finance, Telecom, Infrastructure, International Trading, IT and
Software Consultancy, Steel Manufacturing etc.
·
FORD started manufacturing cars in
·
The group turnover increased during F2003 by 13 %
to Rs.61949.800 millions from Rs.54726.800 millions in the previous year. The
consolidated profit after tax during F2003 at Rs.2161.800 millions recorded a
growth of 75 % over the previous year level of Rs.1233.100 millions.
Milestone
·
Company incorporated - 19th December 1962
·
Production commenced - 1967.
·
Capacity extended with addition of 45 T Electric
Arc Furnace and Blooming Mill in 1980.
·
Company received Letter of Intent from Government
of India, to increase licensed capacity from 60,000 MT per annum to 1,50,000 MT
per annum
·
Continuous Casting Machine and LF - VD - VOD
Facilities added in 1991 with automatic ferro alloys and core wire feeding.
·
Slide gate tapping in EAF added in 1996.
·
·
Got ISO/TS 16949:2002 certificate in August 2005.
·
Second Ladle Furnace and 20 ton/hour Walking Beam
Furnace commissioned in 2006.
·
50 t/40 MVA EBT Electric Arc Furnace commissioned
in 2007 with new Fume Extraction System (FES).
·
Implementation of world class ERP, mySAPERP 2005
(ECC 6.0) which is the latest version of ERP application with 8 functional
modules in 2007.The "GO-LIVE" was on 2nd April'07. Subject has become
the 1st manufacturing company in
Business
Description
Subject is a manufacturer of alloy steel. MUSCO operates in two
segments: alloy steel long products and ring rolling, which is located at
Khopoli, Maharashtra, and Stampings (pressed sheet metal components and
assemblies), which is located Kanhe and
Boards of
Directors
Mr. Keshub
Mahindra
Non Independent
Non-Executive Chairman of the Board
Mr. Keshub Mahindra, Esq., is Non Independent Non-Executive Chairman of
the Board of Subject He has been the Chairman of Mahindra and Mahindra Limited.
since 1963. A graduate from Wharton,
Mr. Anand G. Mahindra
Non Independent
Non-Executive Vice Chairman of the Board
Mr. Anand G. Mahindra is Non Independent Non-Executive Vice Chairman of
the Board of Subject He graduated with Honours (Magna cum laude) from
Mr. Uday Gupta
Managing Director,
Additional Director
Mr. Uday Gupta is Managing Director, Additional Director of Mahindra
Ugine Steel Co Limited He holds degree of Bachelors of Engineering with 1st
class honors,
Mr. Sanjiv Kapoor
Independent
Non-Executive Director
Mr. Sanjiv Kapoor is an Independent Non-Executive Director of Subject He
is a Commerce Graduate and Fellow member of Institute of Chartered Accountants
of India (F.C.A.). Mr. Sanjiv Kapoor is the senior partner of M/s. S. K. Kapoor
and Company, Chartered Accountants, one of the Accountancy firm. As a partner
of the firm, he has conducted audits of a number of Corporates/lnstitutions
such as R.B.I., L.I.C., N.T.RC., Indian Oil, U.T.I., Banks etc. He is having
knowledge and experience in field of Finance, Accounts, Taxation and management
of affairs of organizations. Mr. Sanjiv Kapoor is on the Boards of several
companies and is also a Member of Committees of the Board, details whereof are
given in the Chapter on Corporate Governance in the Annual Report.
Mr. R. R. Krishnan
Non Independent
Non-Executive Director
Mr. R. R. Krishnan is Non Independent Non-Executive Director of Subject
Mr. Krishnan is an Honours graduate in Mathematics from
Mr. Harsh Kumar
Non-Independent
Non-Executive Director
Mr. Harsh Kumar is Non-Independent Non-Executive Director of Mahindra
Ugine Steel Company Limited He was appointed as an Additional Director of the
Company with effect from 23rd January, 2009. Mr. Harsh Kumar is the Managing
Director of two Mahindra group companies: Mahindra Intertrade Ltd (MIL) and
Mahindra Steel Service Centre Ltd (MSSCL). MIL's primary focus is in the area
of processing and trading steel, with operations in
Mr. Hemant Luthra
Non Independent
Non-executive Director
Mr. Hemant Luthra is Non Independent Non-executive Director of Subject
He is a graduate of the Indian Institute of Technology,
Mr. Manoj Kumar
Maheshwari
Independent
Non-Executive Director
Mr. Manoj Kumar Maheshwari is an Independent Non-Executive Director of
Mahindra Ugine Steel Company Limited He was appointed as an Additional Director
of the Company with effect from 23rd October, 2008. He is a graduate from the
Mr. Daljit
Mirchandani
Independent
Non-Executive Director
Mr. Daljit Mirchandani is an Independent Non-Executive Director of
Mahindra Ugine Steel Co Limited He is a Graduate Engineer from Birla Institute
of Technology. Beginning his career in 1971 as Graduate Trainee Engineer, in
1992 he rose to the position of Executive Director in Kirloskar Oil Engines,
the flagship company of the Kirloskar Group. Between 1992 and 1997, for the
Kirloskar Group, he set up the first in a kind, Pig Iron plant with a capacity
of 500 thousand ton integrated to a state -ofthe- art Foundry with a capacity
of 60 thousand tons per annum. In 1998, he joined Ingersoll-Rand India as the
Chairman and Managing Director and retired in 2008. In 2005, he was the
Chairman of the Kamataka State Council of the Confederation of Indian
Industries (CM), and in 2007 was nominated by the CM to be the Chairman of the
Task Force formed by the Ministry of Agriculture, to examine and recommend
policy interventions and set technical standards for the formation of the Cold
Chain Infrastructure in India for Fresh Fruits and Vegetables. Implementation
of these recommendations has been initiated by the Ministry of Agriculture.
Presently he is working on the development of a scalable model in the space of
primary and secondary education for the poorest of the poor in Rural India. He
serves on the advisory and statutory Board of various Companies in the space of
Bio Fuels, Infrastructure Development, Infrastructure Finance, Forgings and a
MNC. Mr. Daljit Mirchandani is on the Boards of other companies and is also the
Chairman and Member of Committees of the Board of Mahindra Forgings Limited,
details whereof are given in the Chapter on Corporate Governance in the Annual
Report.
Mr. Nikhilesh
Panchal
Independent
Non-Executive Director
Mr. Nikhilesh Panchal is an Independent Non-Executive Director of
Mahindra Ugine Steel Co Limited He holds masters degree in law and is
practicing as an Advocate for 15 years. He is a Solicitor registered as Patent
and Trademark Attorney. He is member of Bar Association of Maharashtra and Goa,
Incorporated Law Society and the Supreme Court of England and
Mr. Sethurathnam
Ravi
Independent
Non-Executive Director
Mr. Sethurathnam Ravi is an Independent Non-Executive Director of
Subject He is a Post Graduate in Commerce and is a Chartered Accountant by
Profession. He has promoted the firm Ravi Rajan and Company in 1989, which is
presently empanelled with Reserve Bank of
PRESS RELEASE:
Mahindra Ugine
zooms on commencing commercial operations at Pantnagar stamping unit
05 July 2011
Mahindra Ugine is currently trading at Rs. 48.10, up by 1.45 points or
3.11% from its previous closing of Rs. 46.65 on the BSE. The scrip opened at
Rs. 46.25 and has touched a high and low of Rs. 49.40 and Rs. 46.25
respectively. So far 12153 shares were traded on the counter.The BSE group 'B'
stock of face value Rs. 10 has touched a 52 week high of Rs. 78.00 on 23-Jul-2010
and a 52 week low of Rs. 44.50 on 23-Jun-2011.Last one week high and low of the
scrip stood at Rs. 50.75 and Rs. 45.35 respectively. The current market cap of
the company is Rs.1515.300 Millions. The promoters holding in the company stood
at 55.47% while Institutions and Non-Institutions held 5.57% and 38.96%
respectively. Mahindra Ugine Steel Company has commenced its commercial
operations at the manufacturing unit of stampings division of the company
located at Pantnagar in Uttarakhand. The Pantnagar stamping unit was set up to
meet the demand of stamping Components of automotive business situated in and
around Pantnagar and Rudrapur in Uttarakhand. The company is engaged in the
manufacturing of alloy and special steel through Electric Arc Furnace (EAF)
route and caters to the automotive, engineering, bearing and other industries.
The company manufactures a wide array of products including skin components,
underbody components, critical assemblies, chassis components and car body
sheet metal (Body in White) parts with a total capacity of 30,000 metric tons.
Mahindra Ugine
commences commercial operations at Pantnagar stamping unit
05 July 2011
Mahindra Ugine Steel Company has commenced its commercial operations at
the manufacturing unit of stampings division of the company located at
Pantnagar in Uttarakhand. The Pantnagar stamping unit was set up to meet the
demand of stamping Components of automotive business situated in and around
Pantnagar and Rudrapur in Uttarakhand. The company is engaged in the manufacturing
of alloy and special steel through Electric Arc Furnace (EAF) route and caters
to the automotive, engineering, bearing and other industries. The company
manufactures a wide array of products including skin components, underbody
components, critical assemblies, chassis components and car body sheet metal
(Body in White) parts with a total capacity of 30,000 metric tons.
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 :
The market
survey revealed that the amount of compensation sought by the subject is fair
an
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
|
1 |
Rs.78.73 |
|
Euro |
1 |
Rs.67.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.