MIRA
INFORM REPORT
|
Report Date : |
05.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
STERLITE TECHNOLOGIES LIMITED (w.e.f.
14.07.2007) |
|
|
|
|
Formerly Known
As : |
STERLITE OPTICAL TECHNOLOGIES LIMITED |
|
|
|
|
Registered
Office : |
Survey No. 68 / 1, Rakholi Village, Madhuban Dam Road, Silvassa –
396 230, Dadar Nagar Haveli |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
24.03.2000 |
|
|
|
|
Com. Reg. No.: |
54-000340 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.712.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300DN2000PLC000340 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTS01199C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECS8719B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 40000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
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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. Fundamentals are strong
and healthy. 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 dealing 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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/Factory 1 : |
Survey No. 68 / 1, Rakholi Village, Madhuban Dam Road, Silvassa –
396 230, Dadar Nagar Haveli, India |
|
Tel. No.: |
91-260-6612000 |
|
Fax No.: |
91-260-6612013 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
Optical Fiber, E2, E3, MIDC, Waluj,
Aurangabad-431136, |
|
Tel. No.: |
91-240-2564599 |
|
Fax No.: |
91-240-2564598 |
|
|
|
|
Factory 3 : |
Optical Fiber, AL-23, Shendra MIDC SEZ, |
|
Tel. No.: |
91-240-2622020 |
|
Fax No.: |
91-240-2564598 |
|
|
|
|
Factory 4 : |
Copper Telecom Cables and Structured Data Cables, Survey No. 33 / 1 /
1, |
|
Tel. No.: |
91-260-6452959 |
|
Fax No.: |
91-260-6612122 |
|
|
|
|
Factory 5 : |
Power Transmission Conductors, Survey No. 99, Rakholi
Village, Madhuban Dam Road, Silvassa
– 396230, Union Territory of Dadra and Nagar Haveli, India |
|
Tel. No.: |
91-260-6612200 |
|
Fax No.: |
91-260-6612260 |
|
|
|
|
Factory 6: |
Plot 2D, Sector 10, IIE SIDCUL, Haridwar –
249403, |
|
Tel. No.: |
91-1334-239463 |
|
Fax No.: |
91-1334-239375 |
|
|
|
|
Factory 7: |
Burkhamunda, Jharsuguda -
768 202, |
|
|
|
|
Factory 8 : |
Power Cables, No. 5, Vardhaman Industrial
Estate, Haridwar – 249 402, |
|
|
|
|
Sales, Marketing and Representative Offices: |
Located at: ·
·
·
·
·
·
·
·
·
·
|
|
|
|
|
Corporate Office : |
4th Floor Godrej Millenium 9, |
|
Tel. No.: |
91-20-30514000 |
|
Fax No.: |
91-20-26138083 |
|
E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Anil Agarwal |
|
Designation : |
Non - Executive Chairman |
|
|
|
|
Name : |
Mr. Arun Todarwal |
|
Designation : |
Non - Executive and Independent Director |
|
|
|
|
Name : |
Mr. A. R. Narayanaswamy |
|
Designation : |
Non - Executive and Independent Director |
|
|
|
|
Name : |
Mr. Haigreve Khaitan |
|
Designation : |
Non - Executive and Independent Director |
|
|
|
|
Name : |
Mr. Pravin Agarwal |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Anand Agarwal |
|
Designation : |
Chief Executive Officer and Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Anupam Jindal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Sandeep Deshmukh |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. K. S. Rao |
|
Designation : |
Chief Operating Officer (Telecom) |
|
|
|
|
Name : |
Mr. Rajendra Mishra |
|
Designation : |
Chief Operating Officer (Power) |
|
|
|
|
Name : |
Mr. Mandeep Bhatia |
|
Designation : |
Chief Operating Officer (Telephone Infrastructure) |
|
|
|
|
Name : |
Mr. Pratik Agarwal |
|
Designation : |
Head – Infrastructure Business |
|
|
|
|
Name : |
Mr. Prasanth Puliakottu |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. Dharmendra Jain |
|
Designation : |
Assistant Vice President – Finance
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
860,810 |
0.22 |
|
|
4,764,295 |
1.21 |
|
|
5,625,105 |
1.43 |
|
|
|
|
|
|
209,402,750 |
53.26 |
|
|
209,402,750 |
53.26 |
|
Total
shareholding of Promoter and Promoter Group (A) |
215,027,855 |
54.69 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
22,473,980 |
5.72 |
|
|
21,661,614 |
5.51 |
|
|
850 |
- |
|
|
914,737 |
0.23 |
|
|
5,671,135 |
1.44 |
|
|
50,722,316 |
12.90 |
|
|
|
|
|
|
22,734,483 |
5.78 |
|
|
|
|
|
|
86,172,563 |
21.92 |
|
|
12,889,359 |
3.28 |
|
|
5,643,251 |
1.44 |
|
|
4,488,289 |
1.14 |
|
|
200 |
- |
|
|
6,705 |
- |
|
|
832,912 |
0.21 |
|
|
85,550 |
0.02 |
|
|
133,245 |
0.03 |
|
|
96,350 |
0.02 |
|
|
127,439,656 |
32.41 |
|
Total Public
shareholding (B) |
178,161,972 |
45.31 |
|
Total (A)+(B) |
393,189,827 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
393,189,827 |
- |
BUSINESS DETAILS
|
Line of Business : |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
|
Power Transmission Line –
Distribution Conductor ** |
MT |
N.A. |
160000 |
|
Copper Telecom Cables |
CKM |
9500000 |
2828400 |
|
Fiber Optic cables* |
FKM |
5309059 |
4500000 |
|
Optical Fiber |
KM |
12000000 |
12000000 |
|
Broadband Access Networks |
NOS. |
1500000 |
1000000 |
* Based on Average Fibre
KM.
** N.A. – Delicenced vide
notification no. 477 (E) Dated 27th July, 1991.
|
Particulars (including for captive
consumption) |
Unit |
Actual Production |
|
Copper Telecom Cables |
CKM |
720524 |
|
Fiber Optic cables |
FKM |
3775878 |
|
Optical Fibre* |
KM |
9130523 |
|
Power Transmission Line –
Distribution Conductor (AAC/ACSR) ** |
MT |
125530 |
* It includes 3,742,671 KM (2,906,150 KM) produced
for captive consumption
** Current Year 140,952 KM (129,036 KM)
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Axis Bank ·
Bank of Baroda ·
Bank of India ·
Bank of Maharashtra ·
Barclays Bank ·
Citibank ·
Corporation Bank ·
DBS Bank ·
EXIM Bank ·
HDFC Bank ·
ICICI Bank ·
Kotak Mahindra Bank ·
Oriental Bank of Commerce ·
Punjab National Bank ·
State Bank of India ·
Union Bank ·
Yes Bank |
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|
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Facilities : |
Note: Working capital loans and Other loans from Banks are secured by hypothecation
of Raw materials, Work-in-Progress, Finished Goods and Sundry Debtors.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
|
|
|
Subsidiaries: |
·
Sterlite
Display Technologies Private Limited (formerly known as Sterlite
Infrastructure Private Limited) ·
Sterlite Infratech Limited ·
East
North Interconnection Company Limited ·
Sterlite Transmission
Projects Private Limited ·
Jabalpur
Transmission Company Limited (*) ·
Bhopal
Dhule Transmission Company Limited (*) ·
Sterlite
Global Ventures ( ·
(*) No transactions have
been entered into with these parties during the year. |
|
|
|
|
Entities where Key Management Personnel /
relative of key management personnel has significant
influence : |
·
Sterlite
Industries ( ·
·
Bharat Aluminium
Company Limited ·
Hindustan
Zinc Limited ·
Sterlite
Energy Limited ·
Vedanta
Aluminium Limited |
|
|
|
|
Investing Company: |
Twin Star Overseas Limited, |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
750000000 |
Equity shares |
Rs.2/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
356382129 |
Equity Shares |
Rs.2/- each |
Rs.712.800 Millions |
|
|
|
|
|
Of the above:
1.
139781397
(139781397 of Rs.2 each fully paid-up) Equity Shares of Rs.2 each were allotted
to the shareholders of Sterlite Industries (India)
Limited upon demerger pursuant to the scheme of
arrangement sanctioned by the Honourable High Court
of Judicature at Bombay, being shares issued for consideration other than cash.
2.
During
the financial year 2009-10, 16125000 Share Warrants were converted into
32250000 fully paid-up Equity Shares of Rs.2 each, which includes 16125000
Equity Shares issued as bonus shares.
3.
During
the year 863619 of Rs.2 each (2159294 Equity shares of Rs.2 each) shares were
issued to employees of the company under ESOP Scheme.
4.
Of the
above Equity Shares 178191065 shares of Rs.2 each were allotted as fully
paid-up bonus shares by utilisation of Rs.356.400
millions from Securities Premium.
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 |
712.800 |
711.000 |
322.700 |
|
|
2] Share Application Money |
271.200 |
271.100 |
0.000 |
|
|
3] Employee Stock Option Outstanding |
29.800 |
39.100 |
52.600 |
|
|
4] Reserves & Surplus |
9345.200 |
8139.100 |
5834.100 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10359.000 |
9160.300 |
6209.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1749.800 |
2323.000 |
4678.900 |
|
|
2] Unsecured Loans |
4447.900 |
1258.600 |
287.000 |
|
|
TOTAL BORROWING |
6197.700 |
3581.600 |
4965.900 |
|
|
DEFERRED TAX LIABILITIES |
660.100 |
601.600 |
559.500 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7061.700 |
6264.300 |
5453.200 |
|
|
Capital work-in-progress |
1607.600 |
569.700 |
1113.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
1088.400 |
1061.100 |
920.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1913.800
|
1709.100
|
1003.700 |
|
|
Sundry Debtors |
8665.000
|
6289.700
|
5458.900 |
|
|
Cash & Bank Balances |
1300.600
|
2097.100
|
778.900 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
3503.400
|
1566.600
|
2011.500 |
|
Total
Current Assets |
15382.800
|
11662.500
|
9253.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4872.200
|
4422.200
|
2979.600 |
|
|
Other Current Liabilities |
2685.700
|
1281.300
|
1811.000 |
|
|
Provisions |
365.800
|
510.600
|
214.400 |
|
Total
Current Liabilities |
7923.700
|
6214.100
|
5005.000 |
|
|
Net Current Assets |
7459.100
|
5448.400
|
4248.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
22625.500 |
24316.300 |
22892.300 |
|
|
|
Other Income |
159.700 |
228.800 |
61.600 |
|
|
|
TOTAL (A) |
22785.200 |
24545.100 |
22953.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
17855.900 |
18130.500 |
18687.200 |
|
|
|
Personnel Expenses |
825.600 |
580.100 |
512.400 |
|
|
|
Selling and Distribution expenses |
930.000 |
783.600 |
756.300 |
|
|
|
Administration and General Expenses |
311.900 |
952.800 |
535.300 |
|
|
|
Research and Development Expenses |
45.700 |
59.800 |
59.600 |
|
|
|
TOTAL (B) |
19969.100 |
20506.800 |
20550.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2816.100 |
4038.300 |
2403.100 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCE CHARGES (D) |
474.100 |
381.200 |
904.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2342.000 |
3657.100 |
1498.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
560.100 |
482.600 |
425.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1781.900 |
3174.500 |
1073.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
376.600 |
713.800 |
171.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
1405.300 |
2460.700 |
901.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6080.500 |
4073.900 |
3357.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
140.600 |
246.100 |
90.200 |
|
|
|
Proposed Dividend on Equity Shares |
196.500 |
177.800 |
80.700 |
|
|
|
Tax on Proposed Dividend |
31.300 |
30.200 |
13.700 |
|
|
|
BALANCE CARRIED
TO THE B/S |
7117.400 |
6080.500 |
4073.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
6998.500 |
5542.200 |
5925.800 |
|
|
|
FOB Value of Deemed Exports |
928.500 |
2648.600 |
3456.400 |
|
|
TOTAL EARNINGS |
7927.000 |
8190.800 |
9382.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3728.500 |
5936.800 |
5521.100 |
|
|
|
Stores Spares and
Consumables |
122.900 |
104.000 |
74.400 |
|
|
|
Capital Goods |
785.000 |
268.400 |
781.100 |
|
|
TOTAL IMPORTS |
4636.400 |
6309.200 |
6376.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.95 |
7.61 |
2.80 |
|
|
|
Diluted |
3.72 |
7.34 |
2.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Type |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
5473.300 |
7072.800 |
6635.300 |
|
Total Expenditure |
5171.400 |
6568.800 |
6113.000 |
|
PBIDT (Excl OI) |
301.900 |
504.000 |
522.300 |
|
Other Income |
138.000 |
31.500 |
33.300 |
|
Operating Profit |
439.900 |
535.500 |
555.600 |
|
Interest |
218.500 |
207.500 |
231.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
221.400 |
328.000 |
323.800 |
|
Depreciation |
146.300 |
156.000 |
196.200 |
|
Profit Before Tax |
75.100 |
172.000 |
127.600 |
|
Tax |
22.800 |
45.400 |
32.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
52.300 |
126.600 |
94.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
52.300 |
126.600 |
94.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.17
|
10.03
|
3.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.88
|
13.06
|
4.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.94
|
17.71
|
7.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.35
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
1.07
|
1.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.94
|
1.88
|
1.85 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
Fiscal year
2010-11 closed with revenues of Rs.22630.000 millions, EBITDA of Rs.2820.000
millions, PAT of Rs.1410.000 millions and EBITDA margins of 12%. The telecom
business revenues of Rs.6570.000 millions at an EBITDA margin of 26% and the
power business revenues of Rs.16060.000 millions at an EBITDA margin of 7%.
The Company
achieved the highest sales volumes historically for all its core businesses –
power conductors, optical fibers and telecommunication cables.
During the year,
good Tier-1 clients were added for all businesses, across geographies. Revenue
from international sales in FY11 accounted for Rs.7000.000 millions, which is
31% of net revenues in FY10 and this has been achieved with a right mix of
repeat orders from current clients and addition of new eminent global clients.
Subject has
achieved its target capacity expansion of 160,000 MT for power conductors,
through productivity enhancements at its facilities at Rakholi
and Haridwar and with the setup of a green-field
facility at Jharsuguda, Orissa.
The Company’s
ongoing capital project for capacity enhancement of optical fiber to 20
million-km is well on track for completion and is expected to be fully
operational during FY12.
As part of its
efforts to enhance its global footprint, Subject formed a joint venture company
Jiangsu Sterlite Tongguang Fiber Company Limited in China to
manufacture, market and distribute optical fiber used in the production of
fiber optic cables.
During the year,
Subject increased the breadth of its portfolio by introducing new products and
solutions like bend-free fiber, OPGW cables and FTTx
solutions. The Company has enhanced its intellectual property portfolio with
the grant of 7 more patents, taking the total up to 30.
SHIFTING OF
REGISTERED OFFICE FROM STATE OF
The shareholders
of the Company had approved by postal ballot, shifting of the registered office
of the Company from the State of
SUBSIDIARY
COMPANIES
As at year-end,
the Company has eight Subsidiary Companies, the details of which are given
below:
Sterlite Display Technologies Private Limited (formally, Sterlite Infrastructure Private Limited)
During the year,
the Company increased its holding in Sterlite Display
Technologies Private Limited (SDTPL) from 58.70% to 85.34%.
SDTPL initially
had plans to enter into a business of a telecom service provider. The Company
is currently working on various growth opportunities including liquid crystal
displays (LCDs) glass manufacturing and other related
products.
Sterlite Infra-Tech Limited
As reported in the
previous year’s report, Sterlite Infra-Tech Limited
(SITL) was floated for capacity expansion of optical fiber manufacturing under
the SEZ scheme. The manufacturing facility at Shendra,
Sterlite Transmission Projects Private Limited
During the year,
the Company floated wholly-owned subsidiary viz. Sterlite
Transmission Projects Private Limited (STPPL) with the objective of consolidating
all the bulk power transmission business under one entity.
STPPL has been
aggressively participating in competitive bidding process under Independent
Power Transmission model. STPPL was awarded two mega projects to establish the
Transmission System associated with “System Strengthening Common for Western
Region and Northern Region” and “System Strengthening for Western Region”, by
PFC Consulting Limited, a subsidiary of Power Finance Corporation of India
Limited.
East-North
Interconnection Company Limited
As reported in the
previous year, East-North Interconnection Company Limited (ENICL), a special
purpose vehicle created for the East-North interconnection mega transmission
project was acquired during FY10. The project involves establishment of two 400
kV Double Circuit transmission lines that would respectively connect the Indian
states of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the transmission
lines would be commissioned within 3 years and the Company would operate and
maintain the same for a minimum tenure of 25 years.
During the year,
ENICL successfully achieved the financial closure of Rs.7000.000 millions Debt
Syndication for the said project.
Bhopal Dhule Transmission Company Limited
STPPL acquired the
entire holding of Bhopal Dhule Transmission Company
Limited (BDTCL) from PFC Consulting Limited, a subsidiary of Power Finance
Corporation of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 35 years thereafter.
Jabalpur Transmission Company Limited
STPPL also
acquired the entire holding of Jabalpur Transmission
Company Limited (JTCL) from PFC Consulting Limited, a subsidiary of Power
Finance Corporation of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 35 years thereafter.
Jiangsu Sterlite Tongguang Fiber Company Limited
The Company has
entered into Joint Venture with Tongguang Group of
Sterlite Global Ventures (
The Company
floated a special purpose vehicle named Sterlite
Global Ventures (
MANAGEMENT
DISCUSSIONS AND ANALYSIS
MOBILE DATA
TRAFFIC – IT’S NOT JUST ABOUT SMS ANYMORE
Mobile users expect
to be able to stay connected with family, friends and work in real time –
anywhere and anytime. As smart-phones have become a mainstream product, mobile
communication has evolved into much more than just voice and text messages.
Users now demand multi-dimensional
services – e-mail, instant messaging, photograph and video sharing, social
networking, blogging and a host of other
applications. The smart phone of today is an ‘Information Swiss knife’.
Conventionally, a
mobile user starts using Entertainment VAS first. As they evolve and become
more mature, comes the usage of information VAS while mCommerce
tops the hierarchy among conventional VAS categories. Mobile Apps, the most
recent category tops the complexity of service as well as need evolved and
involved mobile user. The chart, depicts relation between maturity of mobile
user and complexity of VAS they use.
It is expected
that the growth of mobile data traffic will be at a much faster pace than its
counterparts. Cisco forecasts 90% CAGR growth in mobile data traffic over the
next 5 years.
OPTICAL FIBER: THE
MEDIUM FOR TRANSMITTING HIGH-SPEED DATA
The early form of
optical fiber was developed as early as 1950’s. It was nearly a decade later
that the thought of using optical fibers for communication was conceived,
though the commercial use happened much later. Optical fibers are widely used
in fiber optic communications, which permits transmission over longer distances
and at higher bandwidths (data rates) than other forms of communication.
When they talk
about a network backbone capable of transmitting data across the globe in real
time, the sole medium capable of making it possible is optical fiber. As
communication has evolved over the past two decades, both in quality and
quantity. The case for deploying more fiber has also increased. This can be
better judged by simply having a look at the fiber deployments that have taken
place in the last twenty years. The fiber industry has grown at a steady pace
and is expected to continue along a similar path. As per estimates from CRU,
the global fiber demand last year was about 185 million-fkm.
If they observe the fiber deployment pattern globally over the last 20 years,
different regions have contributed to the growth in fiber demand at periodic
intervals depending upon the stage of network evolution they were in. The last
few years have seen a mammoth growth in fiber deployments in
They believe that
the
SOME KEY
DEVELOPMENTS IN THE GLOBAL TRANSMISSION AND DISTRIBUTION SPACE
The
Russia’s Ministry
of Energy has estimated that the Russian power grids may need RUB 20 Trillion
(US$ 700 billion) investments by 2030, of which RUB 11 Trillion (US$ 385
billion) would be needed in the next ten years.
In
For emerging
economies like
As per
PGCIL, the nodal
transmission utility in the country continues with its mega plan of building a
pan-India, high capacity transmission network in the country. Though
historically, the Company has underachieved from its planned targets, however
we are seeing improvement in % achievement year on year.
In the 12th plan
PGCIL plans to spend Rs.1,200 billion for:
·
Enhancing the capacity of the interregional
transmission grid from 37,000 MVA to 75,000 MVA.
·
Building a High Capacity Transmission Corridor
(HCTC) which will help transport electricity to the main load centres from 48 new IPP s located in coal belt coastal
areas and hydroelectric-rich areas. PGCIL plans to spend Rs.496.3 billion, on
HCTC of which Rs.300.7 billion, 60% of the total, is expected to be spent on
transmission lines.
After the State
Electricity Board (SEB) unbundling process, state utilities are also investing
in transmission infrastructure. The state grids are being upgraded or revamped
after years of neglect and lack of investment. Rising power requirements have
forced many State Transmission Utilities (STUs) to
set up high capacity intra-state power transmission systems. Based on the
mid-term appraisal of the 11th plan, SEBs are
expected to spend Rs.1,835.7 billion on the power sector. As per preliminary
estimates, SEBs will have to spend Rs.1,000 billion
on transmission and distribution infrastructure during the 12th plan.
The opening up of
power sector with the enactment of Electricity Act, 2003 was one of important
steps towards bridging the gap between demand-supply of power in the country.
The Private sector in the country responded with keen interest and has been
very active in investing and setting up new generation facilities.
On similar lines,
the government decided to open up the transmission space for private players by
introducing Independent Private Transmission Company (IPTC) projects. The state
transmission utilities (STUs, SEBs
or their successor entities) and the central transmission utility (Power Grid)
identify transmission projects for the intrastate and the
inter-state/interregional transmission of power respectively.
The STUs and the Central Transmission Utility (CTU) could
invite private companies to implement these projects through an IPTC or on a
joint venture basis. The role of the IPTC would be to the construct, own and
maintain transmission systems. Operations of the grid, including load despatch, scheduling and monitoring will be undertaken by
the STUs and the CTU at the intrastate and
inter-state/inter-regional levels, respectively. The CTU and STUs would be
involved in the development phase for obtaining project approvals and various
regulatory and statutory clearances.
Opening up of this
space has invited interest of many private players in the country and they are
actively participating in the competitive bidding process to become a part of T
and D infrastructure build up in the country.
In the 11th Plan,
investment of Rs.200000.000 millions has been envisioned from the private
sector directed towards expanding interstate transmission network. Several PPP
projects have been awarded by state utilities including Haryana,
Rajasthan,
Subject has been
playing a pivotal role over the last few years in building the Transmission
infrastructure in the country and today is the largest manufacturer globally
for overhead transmission conductors. The Company has also taken the lead to
participate as infrastructure owners by taking a portfolio of 3 Ultra mega
transmission projects (with combined investments of about US$ 1 billion) and is
poised to play a leading role in growing transmission space in the country and
globally.
BOARD OF DIRECTORS
ANIL AGARWAL- NON-EXECUTIVE CHAIRMAN
Anil Agarwal founded the Sterlite
Group in 1976 and has been overseeing its operations since its inception. He is
the Executive Chairman of Vedanta Resources Plc. He is also Chairman of Sterlite Industries (
ARUN TODARWAL - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Arun Todarwal, partner of Todarwal and
Todarwal, a Mumbai-based firm of Chartered
Accountants, is a member of The Institute of Chartered Accountants of India. He
has a rich and varied experience spanning over three decades in Management
Consultancy, Finance and Audit.
HAIGREVE KHAITAN - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Haigreve Khaitan, partner of Khaitan and
Company a Mumbai-based firm of lawyers, holds a bachelors degree in legislative
laws. He has varied experience spanning a decade in commercial and corporate
laws, tax laws, mergers and acquisitions, restructuring, foreign collaboration
and licensing.
PRAVIN AGARWAL - WHOLE-TIME DIRECTOR
Pravin Agarwal has been closely involved with the Sterlite Group’s operations in
A. R. NARAYANASWAMY - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
A. R. Narayanaswamy is a Chartered Accountant and Management
Consultant providing Management, Financial and Information Technology
consulting services to Corporates in pharmaceutical,
chemical, engineering and hospitality verticals. His experience spans over
three decades.
ANAND AGARWAL – CHIEF EXECUTIVE OFFICER AND WHOLE-TIME DIRECTOR
Anand Agarwal joined subject in 1995 and has held various
positions, including manufacturing, quality assurance and business development.
Prior to joining subject, he worked with Siemens. He completed his B. Tech in
metallurgical engineering from IIT Kanpur and was
awarded Masters and PhD from the Rensselaer Polytechnic Institute,
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31,
2011
(Rs. in Millions)
|
Particulars |
Quarter ended |
Nine
Months ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Net
Revenue |
6635.300 |
7072.800 |
19181.400 |
|
Total
Expenditure |
6309.200 |
6724.800 |
18351.700 |
|
a) (Increase) / Decrease in
Stock in Trade & WIP |
(489.600) |
(302.400) |
(1161.100) |
|
b) Consumption of Raw
materials |
5104.600 |
5361.600 |
14669.900 |
|
c) Staff Cost |
255.400 |
251.500 |
720.000 |
|
d) Depreciation &
Impairment |
196.200 |
156.000 |
498.500 |
|
e) Other Expenditure |
1242.600 |
1258.100 |
3624.400 |
|
Operating Profit before
Other Income, Interest and Tax |
326.100 |
348.000 |
829.700 |
|
Other Income |
33.300 |
31.500 |
202.800 |
|
Profit before Interest and
Tax |
359.400 |
379.500 |
1032.500 |
|
Interest Cost |
231.800 |
207.500 |
657.800 |
|
Net Profit
before Tax |
127.600 |
172.000 |
374.700 |
|
Provision for : |
|
|
|
|
Current Tax |
19.100 |
38.800 |
78.700 |
|
Minimum Alternate Tax |
(78.700) |
0.000 |
(78.700) |
|
Deferred Tax |
92.500 |
6.600 |
101.100 |
|
Net
Profit after Tax |
94.700 |
126.600 |
273.600 |
|
Paid-up Equity Capital (Face
value Rs.2 per share) |
786.400 |
786.100 |
786.400 |
|
Reserves excluding
revaluation reserves |
|
|
|
|
Earning Per Share (Rs.)- Basic (not annualised) |
0.24 |
0.32 |
0.70 |
|
Earning Per Share (Rs.)- Diluted (not annualised) |
0.24 |
0.32 |
0.70 |
|
Aggregate of Public Share
Holding |
|
|
|
|
Number
of Shares |
178161972 |
178040956 |
178161972 |
|
Percentage
of Shareholding |
45.3% |
45.3% |
45.3% |
|
Promotors and promoter group
Shareholding |
|
|
|
|
Pledged/Encumbered |
|
|
|
|
Number
of Shares |
-- |
-- |
-- |
|
Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
Percentage of Shares (as a % of the total share
capital of the company) |
-- |
-- |
-- |
|
Non-encumbered |
|
|
|
|
Number
of Shares |
215027855 |
215027855 |
215027855 |
|
Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
100.0% |
100.0% |
100.0% |
|
Percentage of Shares (as a % of the total share
capital of the company) |
54.7% |
54.7% |
54.7% |
(Rs. in Millions)
|
Segment Reporting |
Quarter ended |
Nine Months ended |
|
|
|
31.12.2011 (unaudited) |
30.09.2011 (unaudited) |
31.12.2011 (unaudited) |
|
Segment Revenue Power Transmission Business Telecom Products & Solutions |
4757.000 1878.300 |
5147.100 1925.700 |
13846.400 5335.000 |
|
Total |
6635.300 |
7072.800 |
19181.400 |
|
Profit before Interest, Depreciation and
Tax Power Transmission Business Telecom Products & Solutions |
257.200 298.400 |
235.700 299.800 |
575.500 955.500 |
|
Total |
555.600 |
535.500 |
1531.000 |
|
Profit before Interest and Tax Power Transmission Business Telecom Products & Solutions |
203.000 156.400 |
182.500 197.000 |
420.700 611.800 |
|
Total Interest Cost |
359.400 231.800 |
379.500 207.500 |
1032.500 657.800 |
|
Profit before Tax |
127.600 |
172.000 |
374.700 |
|
Capital Employed (Segment Assets-Segment Liabilities) Power Transmission Business Telecom Products & Solutions Unallocable |
6381.800 10291.400 2718.000 |
7810.700 9584.400 1243.700 |
6381.800 10291.400 2718.000 |
|
Total |
19391.200 |
18638.800 |
19391.200 |
NOTES
1. In terms of clause 41 of the listing
agreement, details of number of investor complaints for the quarter ended
December 31, 2011: Beginning - 0 , Received – 7.300 Millions, Disposed off
-7.300 Millions , Pending - 0.
2. During the year 2005-06, the CESTAT had
upheld a demand of Rs.18,80.000 Millions (including penalties and excluding
interest) thereon in the pending Excise matter. The auditors have expressed
their qualification on this matter. The Company is contesting this case and the
matter is pending the decision of the Hon'ble Supreme
Court.
3. In accordance with the nature of the
business, the company had changed its method of valuation of inventories of aluminium conductors used in power transmission business
from "Weighted Average" to "Specific Identification method"
from March 31, 2011. Had "Weighted Average Method" been used during
the period ended December 31, 2011, the inventory would have been lower by
Rs.8.900 Millions and the resultant net profit after tax would have been higher
by Rs.6.900 Millions.
4. In the current quarter, the Company has
recognised a total amount of Rs.38.100 Millions for
quarters ended June 30, 2011 and September 30, 2011 towards recovery of
expenses and interest on loans provided to certain wholly owned subsidiaries of
the Company. Said amount has been netted off against the expenditure incurred
under various heads.
5. Sterlite
Infra- Tech Limited (SITL), a wholly owned subsidiary, has been merged with the
Company effective April 1, 2011 vide order of the Bombay High Court dated
October 21, 2011. The impact of merger has been given in the results with
effect from April 1, 2011; and accordingly, the results of the Company for the
quarter and nine months ended December 31, 2011 are lower by Rs.66.300
Millions. To this extent results for the quarter and nine months ended December
31, 2011 are not comparable with the results for the prior periods presented
6. The above results have been reviewed by
the Audit Committee. The Board of Directors at its meeting held on January 25,
2012 approved the above results.
7. Previous period figures have
been regrouped / rearranged wherever considered necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
As on 31.03.2011 Rs. in Millions |
|
1. Disputed Liabilities in Appeal |
|
|
a) Sales Tax |
5.900 |
|
b) Excise Duty (Including
Excise duty case in Supreme Court |
2470.700 |
|
c) Customs Duty |
743.100 |
|
d) Service Tax |
24.800 |
|
e) Claims lodged by a Bank
Against the company (*) |
188.700 |
|
f) Claims against the company not
acknowledged as Debt |
0.000 |
|
2. Outstanding amount of Export
obligation against Advance License |
871.900 |
|
3. The company has given Corporate Guarantee to
the Income Tax Department on behalf of group companies. The outstanding
amount is Rs.1140.000 millions (Rs.1140.000 millions) on this account as at
the year-end. The company has given
Corporate Guarantee to Long Term Transmission Customers on behalf of its
subsidiary company. The outstanding amount is Rs.300.000 millions (Rs. Nil) on this account as at the year-end. |
|
The Company has not provided for disputed Sales
Tax, Excise Duty, Customs Duty and Service Tax arising from disallowances made
in assessments which are pending with Appellate Authorities for its decision.
It is not practicable to indicate the uncertainties
which may affect the future outcome and estimate the financial effect of the
above liabilities.
(*) In an earlier year, one of the Bankers of the
Company had wrongly debited an amount of Rs.188.700 millions, towards import
consignment under Letter of Credit not accepted by the Company, owing to
discrepancies in the documents. The Company has filed the case against the bank
in the High Court of Mumbai. The bank has also filed a claim against the
Company in the Debt Recovery Tribunal. The Company does not believe that any
liability will arise to the Company.
FIXED ASSETS
·
·
Leasehold land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Data Processing Equipment
·
Office Equipment
·
Electric Fittings
·
Vehicles
·
Software / Licences
WEB DETAILS
PRESS RELEASES
Pune, India – January 25, 2012:
Sterlite Technologies
Limited “Sterlite” [BSE:532374, NSE:STRTECH], a
leading global provider of transmission solutions for the power and telecom
industries, today announced its results for the quarter ended December 31,
2011.
Financial
highlights for Q3 FY12
• Net revenue of
Rs.66.400 Millions.
• EBITDA of Rs.5.600
Millions, PAT of Rs.95.000 Millions.
• Power business
revenue of Rs.47.600 Millions and telecom business revenue of Rs.18.800
Millions.
Strong order book
During Q3 FY12,
the Company received new orders valued at about Rs
68.000 Millions (~US$ 151 million) for its telecom and power products. The open
order book for the Company at the start of Q4FY12 stands at over Rs 240.000 Millions (~US$ 533 Million), which is
significantly higher than that at the start of Q4 last fiscal.
Business
highlights for 9-months
• Focused efforts in
product development have lead to the introduction of ACCC conductors, G657
optical fiber and blown fiber optic cables amongst many more.
• Market entry into
new geographies like North America and Latin America.
• Revenues from
international sales currently account for about 30% of total revenues.
• Good progress is
being made in the execution of the Company’s three power infrastructure
projects.
Industry Outlook
• The Government of
India has plans to provide financial assistance to State Governments to set up
transmission networks that would facilitate evacuation of renewable energy
being generated within the State. Thus opportunities from PGCIL, SEB’s and the private sector are very optimistic.
• 2011 witnessed the
highest ever demand for optical fiber at 215 Mnfkm
with Europe, US, China and Brazil as the biggest contributors to this growth.
• The Union
Government of India has formed a special purpose vehicle, ‘Rajiv
Gandhi National Information Super-Highway’, for setting up a National Fiber
Optic Network (NFON). The Government has approved an investment of Rs200000.000
Millions towards broadband connectivity to Panchayats,
egovernance, online banking and health services
initiatives.
Says Pravin Agarwal, Wholetime Director - Sterlite
Technologies Limited, “Although this has not been one of the best fiscal
periods for our Company, we continue to be very bullish and optimistic in our
direction, our growing global reach and our increased participation with
clients requirements - from fiber to bandwidth and from conductors to actual
power transmission.”
“We would continue
to build organizational capability, focus on economies of scale, costs and
technology advancements, to ensure our business progress”, he adds.
About Sterlite Technologies Limited
Sterlite Technologies
Limited (“Sterlite”) [BSE: 532374, NSE: STRTECH], is
a leading global provider of transmissionsolutions
for the power and telecom industries. Equipped with a product portfolio that
includes power conductors, optical fibers, telecommunication cables and a
comprehensive telecom systems / solutions portfolio, Sterlite's
vision is to 'Connect every home on the planet'. Sterlite
is also executing multi-million dollar power transmission system projects,
pan-India.
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.