MIRA
INFORM REPORT
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Report Date : |
09.02.2012 |
IDENTIFICATION DETAILS
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Name : |
CRONIMET ALLOYS INDIA LIMITED (w.e.f. 20.12.2009) |
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Formerly Known
as : |
GMR FERRO ALLOYS AND INDUSTRIES LIMITED |
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Registered
Office : |
Vishnu Splendor, D. No. 8-3-979/123456, Survey No. 41,42, Flat No.
302, B-Block, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
23.03.2006 |
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Com. Reg. No.: |
01-049591 |
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Capital
Investment / Paid-up Capital : |
Rs.209.365 Millions |
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CIN No.: [Company Identification
No.] |
L27101AP2006PLC049591 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
VPNG00606E |
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PAN No.: [Permanent Account No.] |
AACCG7341P |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Trader of Metal Alloys. |
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No. of Employees
: |
238 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2600000 |
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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 to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Vishnu Splendor, D. No. 8-3-979/123456, Survey No. 41,42, Flat No. 302,
B-Block, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Factory : |
Ravivalasa
Village, Tekkali Mandal, Srikakulam District- 532 212, Andhra Pradesh, India |
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Tel. No.: |
91-8945 - 244701 / 244312 |
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Fax No.: |
91-8945 - 244545 |
DIRECTORS
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Name : |
Mr. Rajiv Saxena |
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Designation : |
Chairman |
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Name : |
Mr. Prashant Boorugu |
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Designation : |
Managing Director |
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Name : |
Mrs. Sarita Boorugu |
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Designation : |
Director |
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Name : |
Mr. S. Gajendran |
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Designation : |
Director |
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Name : |
Mr. K. Mallikarjuna Rao |
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Designation : |
Director |
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Name : |
Mr. M.V. Bhaskara Rao, IPS (Retd.) |
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Designation : |
Director |
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Name : |
Mr. A V L Narasimham |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Chandrashekhar Hegde |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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2070 |
- |
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2070 |
- |
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43292205 |
70.48 |
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|
43292205 |
70.48 |
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Total shareholding of Promoter and Promoter Group (A) |
43294275 |
70.48 |
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(B) Public Shareholding |
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|
2660 |
- |
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|
1188085 |
1.93 |
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|
1549355 |
2.52 |
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2740100 |
4.46 |
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4371618 |
7.12 |
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Individual shareholders holding nominal share capital up to Rs.0.100
Million |
7370912 |
12.00 |
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Individual shareholders holding nominal share capital in excess of
Rs.0.100 Million |
3143360 |
5.12 |
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506210 |
0.82 |
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295186 |
0.48 |
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|
760 |
- |
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201123 |
0.33 |
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|
9141 |
0.01 |
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15392100 |
25.06 |
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Total Public shareholding (B) |
18132200 |
29.52 |
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Total (A)+(B) |
61426475 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
61426475 |
- |
(1) Indian
Bodies Corporate
Non Resident IndiansBUSINESS DETAILS
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Line of Business : |
Manufacturer and Trader of Metal Alloys. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Ferro Alloy Products |
MT |
25000 |
25000 |
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Particulars |
Unit |
Actual
Production |
|
High Carbon Ferro Chrome |
MT |
26271.60 |
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Silico Mangenese |
MT |
-- |
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Ferro Silicon |
MT |
1785.60 |
GENERAL INFORMATION
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No. of Employees : |
238 (Approximately) |
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Bankers : |
·
State Bank of Travancore ·
UCO Bank ·
State Bank of India |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
S. Venkatadri and Company Chartered Accountants |
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Address : |
1408, Babukhan
Estate, Basheerbagh, Hyderabad - 500 001, Andhra Pradesh, India |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
38200000 |
Equity Shares |
Rs.10/- each |
Rs.382.000 Millions |
|
8000000 |
8% Preference Shares |
Rs.11/- each |
Rs.88.000 Millions |
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Total |
|
Rs.470.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12285295 |
Equity Shares |
Rs.10/- each |
Rs.122.853
Millions |
|
7864700 |
8% Preference Shares |
Rs.11/- each |
Rs.86.512
Millions |
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Total |
|
Rs.209.365 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
209.365 |
209.365 |
209.365 |
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2] Convertible Warrrants |
135.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
316.966 |
198.230 |
155.025 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
661.331 |
407.595 |
364.390 |
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LOAN FUNDS |
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1] Secured Loans |
365.152 |
0.000 |
132.434 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
365.152 |
0.000 |
132.434 |
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DEFERRED TAX LIABILITIES |
38.039 |
44.425 |
37.190 |
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TOTAL |
1064.522 |
452.020 |
534.014 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
223.103 |
227.354 |
227.453 |
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Capital work-in-progress |
126.253 |
0.000 |
0.000 |
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INVESTMENT |
1.709 |
0.175 |
0.125 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
368.983
|
171.469 |
292.460 |
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Sundry Debtors |
260.222
|
53.214 |
44.888 |
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Cash & Bank Balances |
12.801
|
44.326 |
5.585 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
319.951
|
131.520 |
81.909 |
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Total
Current Assets |
961.957
|
400.529 |
424.842 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
79.565
|
55.712 |
23.215 |
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Other Current Liabilities |
87.175
|
79.046 |
95.148 |
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Provisions |
81.760
|
41.280 |
0.043 |
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Total
Current Liabilities |
248.500
|
176.038 |
118.406 |
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Net Current Assets |
713.457
|
224.491 |
306.436 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1064.522 |
452.020 |
534.014 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
1707.493 |
1147.539 |
1008.036 |
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Other Income |
3.801 |
4.740 |
2.128 |
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TOTAL (A) |
1711.294 |
1152.279 |
1010.164 |
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Less |
EXPENSES |
|
|
|
|
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Material Consumption |
1026.676 |
665.458 |
692.267 |
|
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|
Manufacturing, Selling Administrative Expenses |
432.035 |
368.220 |
326.392 |
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TOTAL (B) |
1458.711 |
1033.678 |
1018.659 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
252.583 |
118.601 |
(8.495) |
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|
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Less |
FINANCIAL
EXPENSES (D) |
29.726 |
3.973 |
15.996 |
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
222.857 |
114.628 |
(24.491) |
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|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
22.480 |
22.909 |
22.722 |
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PROFIT BEFORE
TAX (E-F) (G) |
200.377 |
91.719 |
(47.213) |
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Less |
TAX (H) |
66.458 |
32.373 |
(15.714) |
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PROFIT AFTER TAX
(G-H)
(I) |
133.919 |
59.346 |
(31.499) |
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|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
38.992 |
(4.213) |
27.285 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Preference Dividend |
6.921 |
13.842 |
0.000 |
|
|
|
Corporate Dividend Tax -Preference |
1.123 |
2.299 |
0.000 |
|
|
|
Equity Dividend |
6.143 |
0.000 |
0.000 |
|
|
|
Corporate Dividend Tax-Equity |
0.996 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
157.728 |
38.992 |
(4.214) |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
93.135 |
361.829 |
748.259 |
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TOTAL EARNINGS |
93.135 |
361.829 |
748.259 |
|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
90.494 |
0.000 |
46.293 |
|
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TOTAL IMPORTS |
90.494 |
0.000 |
46.293 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.25 |
3.52 |
2.19 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
|
Net Sales |
|
557.700 |
882.410 |
|
Total Expenditure |
|
489.260 |
810.190 |
|
PBIDT (Excl OI) |
|
68.440 |
72.220 |
|
Other Income |
|
2.860 |
3.140 |
|
Operating Profit |
|
71.300 |
75.360 |
|
Interest |
|
15.680 |
17.370 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
55.620 |
57.990 |
|
Depreciation |
|
5.940 |
6.640 |
|
Profit Before Tax |
|
49.690 |
51.350 |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
49.690 |
51.350 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
49.690 |
51.350 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.83
|
5.15 |
3.12 |
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
11.74
|
7.99 |
(4.68) |
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.91
|
14.61 |
(7.24) |
|
|
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.22 |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.93
|
0.43 |
0.69 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.87
|
2.27 |
3.59 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS AND PERFORMANCE
In the year the
Company has achieved a record production of 28,057 MT of Ferro Alloys products as
against 20,848 MT during previous year, an increase of 34.58%. The turnover of
Ferro Alloys product has increased to Rs.1707.493 Millions as compared to
Rs.1147.539 Millions during previous year, registering a growth of 48.80%. The
Company has registered a Profit after tax of Rs.133.919 Millions against
Rs.59.346 Millions of previous year.
EXPANSION PROGRAM
Strategic Acquisition/Merger: In line with the Company’s strategy to
expand its product portfolio and to maintain its leadership position in the domestic
market, the Company has over a period, successfully enhanced its activities and
acquired mines in Turkey and also acquiring mines in India for getting ore for
manufacturing activities.
SHIFTING OF
REGISTERED OFFICE
Effective from
07.10.2010, the Registered Office of the Company has been shifted from
Ravivalasa Village – 532 212 Tekkali Mandal, Srikakulam District, Andhra
Pradesh to ‘Vishnu Splendor’, D. No. 8-3-979/123456, Survey No.41, 42, Flat
No.302, ‘B’ Block, Yellareddyguda, Hyderabad – 500 073, Andhra Pradesh, India
ISSUE OF
CONVERTIBLE WARRANTS
To Pursue
expansion plans beyond the domestic boundaries and in order to meet the
increasing fund requirements, the Company has raised capital through private
placement by issuing 54,00,000 warrants of Rs.100/- each convertible into
equity shares of Rs.10/- each with a premium of Rs.90/- each.
MANAGEMENT
DISCUSSION AND ANALYSIS
PROSPECTS
Ferro Alloy is a
crucial raw material of the Steel Industry (Stainless Steel) and hence the
demand and supply of Ferro Alloys is decided based on the prospects of
stainless steel industry. The Indian Economy is expected to grow at an
accelerated growth rate of 7-8 percent, steel production would also
simultaneously witness a growth. The massive destruction by tsunami in Japan,
the demand for rebuilding will result in increased demand for stainless steel
which in turn will result in demand for Ferro Alloys. The constrained situation
of electricity in South Africa, which is the main Ferro Alloys producing
country, is expected to continue for several years and their electricity price
is expected to double in the coming years. These factors would create new
opportunities for Indian Ferro Alloys producers. In India, buoyed by the
favorable demand outlook, both domestic and international steel producers have
announced large steel projects.
Further, India’s
increase in export duty on chrome ore has led to focus on indigeneous
ferrochrome production, which will boost the requirement in capacity
enhancement in India.
OPPORTUNITIES AND THREATS
The Company has
more than twenty five years track record in manufacturing and marketing of
Ferro Alloys and having developed state of art process and established wide
external network globally and domestic market, stands in sound position to
avail the opportunities in the Industry. However, supply of quality power at
competitive cost may pose some difficulties. Since the Company has concessional
tariff and initiating similar tie-up for concessional price in Orissa, it is
confident of mitigation this factor.
Contingent
Liabilities not provided for an account of (As on 31.03.2011)
a) Bank Guarantees – Rs.1.360 Millions
b) Claims made by Government
Departments against the Company not acknowledged as debts. – Rs.12.469
Millions
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
BUSINESS DESCRIPTION
Subject, formerly GMR Ferro Alloys and Industries Limited, is an India-based company. The Company is engaged in the manufacturing and trading of metal alloys. It produces high carbon ferro chrome, silico mangenese and ferro silicon. The Company’s plant is located at Ravivalasa Village, Tekkali Mandal, Srikakulam, Andhra Pradesh. For the nine months ended 31 December 2010, Cronimet Alloys India Limited's revenues increased 69% to RS1.27B. Net income increased 52% to RS102.3M. Revenues reflects an increase in income from operations and higher other income. Net income reflects a decrease in depreciation charges and lower interest and finance charges. The Company is engaged in the manufacture of high carbon ferro-chrome and it is also produce silico mangenese and ferro silicon.
BOARD OF DIRECTORS
Rajiv Saxena
(Non-Executive Chairman of the Board)
Mr. Rajiv Saxena is Non-Executive Chairman of the Board of subject. He has 25 years of experience, including 5 years as practising Chartered Accountant and partner in a professional practice, in the metals and ferrous alloys business, entertainment, hospitality and construction industries and in the financial services industry. He is Director of Six Sigma Investments Limited, Matrix Entertainment Limited, Matrix Metal Limited, XPO Gulf Limited, New Tasmatt Resources Limited, Comunique Limited, Dato Consult Limited, World Media Group Limited, Oceanic Enterprises Limited, Matrix Investments Limited, Matrix Properties Limited, Bossoe Offshore Limited.
Sarita Boorugu
(Non-Executive Independent Director)
Mrs. Sarita Boorugu is Non-Executive Independent Director of subject.
She servesd as Managing Director of the Company till October 25, 2010. She has
Over 10 Yeras experience in Top Level Management. Enterpreneur and floated
several companies in the filed of Ports, Infrastructure, IT, Sugar. Textiles
etc. She is Director of Satidham Syntex Limited, Sri. Vasavi Holdings and
Investments Limitd, e-soft Consulting Limited SPS Textiles and Industries
Limited. She holds MBA from UK.
A. V. L. Narasimham
(Non-Executive Independent Director)
Mr. A. V. L. Narasimham is Non-Executive Independent Director of
subject. He has 40 years of experience in Production and Operation of Ferro
Alloys. He is Technical Advisor to Sri Vasavi Industries Limited.
K. Mallikarjuna Rao
(Non-Executive Independent Director)
Mr. K. Mallikarjuna Rao is Non-Executive Independent
Director of subject. He is has over 35 years experience to his credit. Former
head of Finance of GMR Group and joined GER Group of Companies in 2005 and
taken the responsibility of Finance. Widely travelled and in finance
management.
M. V. Bhaskara Rao
(Non-Executive Independent Director)
Mr. M. V. Bhaskara Rao is Non-Executive Independent Director of subject.
He is Retired Director General and Inspector General of Police, Government of
A.P. and former Principal Secretary to Home Department, A. P. Has over 35 years
experience in the areas of Administration, Management, Legal etc., Awardee of
Indian Police Medal for Meritorious Service in 1970.
PRESS RELEASES
Postal
Ballot
India, January 12 -- Cronimet Alloys India Limited has informed the Exchange that Sri B Sudhindra Kumar, Company Secretary in practice who was appointed as Scrutinizer has submitted Report dated January 11, 2012 stating that the resolutions mentioned in the notice of the postal ballot with regard to change of name of the Company from Cronimet Alloys India Limited to "Metkore Alloys and Industries Limited" was passed with requisite majority.
India's
Cronimet to Supply Ferro Chrome to JSL Stainless
MUMBAI,
November 3 Asia Pulse - Cronimet Alloys India (BSE:532990) said it has signed
an agreement with JSL Stainless to sell 24,000 tonnes of ferro chrome per
annum, amounting to around Rs.1500.00 Millions (US$30.5 million) at current
market prices.
"The
company will sell 80 per cent of the total production of ferro chrome to JSL
Stainless. The agreement shall come in force from January 1, 2012, for a
minimum period of 12 months," Cronimet Alloy (formerly known as GMR Ferro
Alloys and Industries) said in a statement Tuesday.
"Based
on the current market prices, the annual revenue to the company from the supply
of high carbon ferro chrome under this MoU will be approximately Rs1500.000
Millions," it added.
Cronimet
Alloys said that JSL Stainless would be purchasing at least 2,000 tonnes of
high carbon ferro chrome lumps per month (or 24,000 tonnes in a year), from the
company and both the companies have joined hands for long-term sale and
purchase agreement.
It
added that price of the vital stainless steel making raw material will be
decided on monthly basis.
Cronimet
currently produces 30,000 tonnes of ferro chrome per year from its plant in
Andhra Pradesh.
Ferro
chrome is an alloy of chromium and iron and is mainly used for the production
of stainless steel.
"We
plan to sell 80 per cent of our total production of Ferro chrome to JSL
Stainless Limited, which in turn will increase the demand to raise production.
The new venture will surely help us to become the market leader in
manufacturing high carbon Ferro-chrome," Cronimet Alloys' managing
director Prashant Boorugu said.
Besides
this, the company is also planning to increase its capacity to 1,95,000 tonnes
per annum at an estimated investment of Rs 3300.000 Millions as it feels that
the demand of the raw material is increasing day-by-day, the statement said.
This
will be done through a new ferro chrome plant in Orissa. Shares of Cronimet
Alloys closed at Rs.165 apiece on the BSE, down 1.76 per cent from previous
close.
Cronimet
signs pact with JSL Stainless to supply ferro chrome
Mumbai,
November 01, 2011 (PTI) -- Cronimet Alloys India today said it has signed an
agreement with JSL Stainless to sell 24,000 tonnes of ferro chrome per annum,
amounting to around Rs.1500.000 Millions at current market prices.
"The
company will sell 80 per cent of the total production of ferro chrome to JSL
Stainless. The agreement shall come in force from January 1, 2012, for a
minimum period of 12 months," Cronimet Alloy (formerly known as GMR Ferro
Alloys and Industries) said in a statement.
"Based
on the current market prices, the annual revenue to the company from the supply
of high carbon ferro chrome under this MoU will be approximately Rs 1500.000
Millions," it added.
Cronimet
Alloys said that JSL Stainless would be purchasing at least 2,000 tonnes of
high carbon ferro chrome lumps per month (or 24,000 tonnes in a year), from the
company and both the companies have joined hands for long-term sale and
purchase agreement.
It
added that price of the vital stainless steel making raw material will be
decided on monthly basis.
Cronimet
currently produces 30,000 tonnes of ferro chrome per year from its plant in
Andhra Pradesh.
Ferro
chrome is an alloy of chromium and iron and is mainly used for the production
of stainless steel.
"We
plan to sell 80 per cent of our total production of Ferro chrome to JSL
Stainless Limited, which in turn will increase the demand to raise production.
The new venture will surely help us to become the market leader in
manufacturing high carbon Ferro-chrome," Cronimet Alloys' Managing
Director Prashant Boorugu said.
Besides
this, the company is also planning to increase its capacity to 1,95,000 tonnes
per annum at an estimated investment of Rs 3300.000 Millions as it feels that
the demand of the raw material is increasing day-by-day, the statement said.
This
will be done through a new ferro chrome plant in Orissa.
Shares
of Cronimet Alloys closed at Rs.165 apiece on the BSE, down 1.76 per cent from
previous close.
Shares
of JSL Stainless also closed down by 1.07 per cent at Rs.92.65 apiece from the
previous close
Cronimet
Alloys inks MoU with JSL Stainless Steel
India, November 01 -- Indian ferro chrome maker, Cronimet Alloys India has signed a Memorandum of Understanding (MoU) with JSL Stainless Steel on October 02, 2011 for supply of a quantity of 24000 MT per annum High Carbon Ferro Chrome effective from January 01, 2012.The company is also engaged in setting up a 165,000 tonne high carbon ferro chrome project at Kolathpangi in Orissa. Two-third of the project cost of Rs.3300.000 Millions will be financed by a consortium of banks including SBI, State Bank of Travancore, Central Bank of India and UCO Bank. Cronimet, formerly known GMR Ferro Alloys consumes about 3,500 units of power to make a tonne of ferro chrome. The company buys power from the Andhra Pradesh State Electricity Board at an average cost of 2.75 a unit. Cronimet Alloys India is engaged in the manufacture of high carbon ferro-chrome for use in the stainless steel industry. The company's plant has an installed capacity of 25,000 MT with one 6 MVA and one 9 MVA furnace. It manufactures two standard grades of ferro chrome i.e. high silicon and low silicon.
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.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.