MIRA
INFORM REPORT
|
Report Date : |
24.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
STERLITE INDUSTRIES (INDIA) LIMITED [w.e.f. 1986] |
|
|
|
|
Formerly Known
As : |
STERLITE CABLES LIMITED |
|
|
|
|
Registered
Office : |
SIPCOT Industrial Complex, Madurai Bypass Road, T.V. Puram P.O.,
Tuticorin-628002, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
08.09.1975 |
|
|
|
|
Com. Reg. No.: |
18-062634 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3361.200
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65990TN1975PLC062634 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MRIS01730B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS4955Q |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Copper Cathode, Continuous Cast Copper Rods and
Phosphoric Acid. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 920000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having excellent
track. Financial position of the company appears to be sound. Directors are reported
to experienced and respected businessman. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
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 : |
SIPCOT Industrial Complex, Madurai Bypass Road, T.V. Puram P.O., Tuticorin-628002,
Tamilnadu, India |
|
Tel. No.: |
91-461-4242591 (10 Lines) |
|
Fax No.: |
91-461-2340203 |
|
E-Mail : |
|
|
|
|
|
China Office : |
RM 2305, Wenshen Center, Wenjin Plaza, No. 1010 North Wenjin Road,
Luohu District, Shenzhen, Guangdong, China |
|
Tel. No.: |
86-755-25609246 |
|
Fax No.: |
86-755-25609246 |
|
E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Anil Agarwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Navin Agarwal |
|
Designation : |
Executive Vice Chairman |
|
|
|
|
Name : |
Mr. Gautam Bhailal Doshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Berjis Minoo Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sandeep H. Junnarkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Din Dayal Jalan |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Din Dayal Jalan |
|
Designation : |
Chief Finance Office |
|
|
|
|
Name : |
Mr. Anshu Goel |
|
Designation : |
Head Marketing |
|
|
|
|
Name : |
Mr. V. Krishnan |
|
Designation : |
Head Copper Concentrate Procurement |
|
|
|
|
Name : |
Mr. Mukul Agarwal |
|
Designation : |
AGM [Indirect Taxation] |
|
|
|
|
Name : |
Mr. P. Ramnath |
|
Designation : |
Chief Executive Officer [Copper] |
|
|
|
|
Name : |
Mr. Sridhar Narasimhan |
|
Designation : |
Associate Vice President [Finance] |
|
|
|
|
Name : |
Mr. Pankaj Kumar |
|
Designation : |
Associate Vice President [Operations] |
|
|
|
|
Name : |
Mr. Suresh Bose |
|
Designation : |
Head [Human Resources] |
|
|
|
|
Name : |
Mr. Ashok Varghese |
|
Designation : |
Head [Commercial] |
|
|
|
|
Name : |
Mr. Rajiv Choubey |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
834,160 |
0.03 |
|
|
119,953,559 |
4.09 |
|
|
120,787,719 |
4.12 |
|
|
|
|
|
|
1,671,144,924 |
56.99 |
|
|
1,671,144,924 |
56.99 |
|
Total shareholding of Promoter and Promoter Group (A) |
1,791,932,643 |
61.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
126,868,068 |
4.33 |
|
|
16,848,728 |
0.57 |
|
|
2,800 |
- |
|
|
164,096,951 |
5.60 |
|
|
390,470,814 |
13.32 |
|
|
698,287,361 |
23.81 |
|
|
|
|
|
|
208,198,979 |
7.10 |
|
|
|
|
|
|
112,788,340 |
3.85 |
|
|
30,501,581 |
1.04 |
|
|
90,824,226 |
3.10 |
|
|
6,285,180 |
0.21 |
|
|
72,123,850 |
2.46 |
|
|
3,046,761 |
0.10 |
|
|
8,629,502 |
0.29 |
|
|
72,000 |
- |
|
|
652,820 |
0.02 |
|
|
10,113 |
- |
|
|
4,000 |
- |
|
|
442,313,126 |
15.08 |
|
Total Public shareholding (B) |
1,140,600,487 |
38.89 |
|
Total (A)+(B) |
2,932,533,130 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
165,487,852 |
- |
|
|
263,186,552 |
- |
|
|
428,674,404 |
- |
|
Total (A)+(B)+(C) |
3,361,207,534 |
- |
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%20LIMITED%20-%20170286%2024-Feb-2012_files/image004.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Copper Cathode, Continuous Cast Copper Rods and Phosphoric
Acid. |
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|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed Capacity |
|
Continuous Cast Copper Rod |
MT |
268000 |
|
Copper Cathodes |
MT |
405000 |
|
Aluminium Cold Rolled Products |
MT |
20000 |
|
Phosphoric Acid |
MT |
230000 |
|
Sulphuric Acid |
MT |
1300000 |
Actual Production:
|
Particulars |
Unit |
Actual
Production |
|
Continuous Cast Copper Rod# |
MT |
187892 |
|
Copper Cathodes** |
MT |
303991 |
|
Phosphoric Acid |
MT |
968760 |
|
Sulphuric Acid*** |
MT |
154232 |
NOTE:
1.
# (i) Net of 6 MT (Previous Year Nil) loss of material,
(ii) Includes 925 MT produced under Job work.
2.
** (i) Includes 1,87,397 MT (Previous Year 1,97,774
MT) used for captive consumption,
(ii) Net of 14 MT (Previous Year 28 MT) loss of material.
3. *** Includes 4,41,542
MT (Previous Year 5,60,628 MT) used for captive consumption.
GENERAL INFORMATION
|
Bankers : |
Not Available |
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|
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Facilities : |
NOTE: ·
Debentures referred at (A) above are secured by a
first charge on pari passu basis in favour of the Trustees for the Debentures
on the immovable properties situated at Tuticorin in the State of Tamil Nadu;
Lonavala and Pune in the State of Maharashtra, Chinchpada in the Union
Territory of Dadra and Nagar Haveli and Mouje Chatral of Kalol Taluka,
District Gandhinagar, Gujarat. As on 31 March 2011, 8.24% debentures are due
for redemption on 10 April 2013. ·
Buyer’s Credit at (B) above are secured by way of
first charge by hypothecation on the entire Stock of raw materials, goods in
process and all semi-finished, finished, manufactured articles together with
stores and spares and future book debts, receivables, claims and outstanding
bills etc. and such charge in favour of the banks ranking pari passu inter
se, without any preference or priority to one over the other. The charge on
the above assets is yet to be created. ·
Amount due within one year Rs.15094.400 Millions ·
Amount due within one year Rs.21179.400 Millions ·
Loans in D above represents commercial paper at
the end of the year of Rs.11745.400 Millions (Previous Year Rs. Nil). Maximum
amount outstanding at any time during the year was Rs.24745.400 Millions |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Entities Controlling the Company (Holding Companies): |
·
Twinstar Holding Limited ·
Vedanta Resources Holdings Limited ·
Vedanta Resources Plc. ·
Volcan Investments Limited |
|
|
|
|
Fellow Subsidiary: |
·
Sesa Goa Limited ·
The Madras Aluminium Company Limited ·
Konkola Copper Mines Plc. ·
Sesa Industries Limited ·
V S Dempo and Company Private Limited ·
Dempo Mining Corporation Private Limited ·
Sterlite Iron and Steel Company Limited |
|
|
|
|
Subsidiaries: |
·
Bharat Aluminium Company Limited ·
Sterlite Infra Limited ·
Copper Mines of Tasmania Pty Limited ·
Thalanga Copper Mines Pty Limited ·
Monte Cello B.V. ·
Sterlite Opportunities and Ventures Limited ·
Hindustan Zinc Limited ·
Sterlite Energy Limited ·
Fujairah Gold FZE ·
Talwandi Sabo Power Limited ·
Sterlite (USA) Inc. ·
THL Zinc Holding B.V. (w.e.f. 15 February 2011) ·
THL Zinc Namibia Holdings (Proprietary) Limited
(w.e.f. 03 December 2010) ·
Skorpion Zinc (Pty) Limited (w.e.f. 03 December
2010) ·
Skorpion Mining Company (Pty) Limited (w.e.f. 03
December 2010) ·
Namzinc (Proprietary) Limited (w.e.f. 03 December
2010) ·
Amica Guesthouse (Proprietary) Limited (w.e.f. 03
December 2010) ·
Rosh Pinah Health Care (Proprietary) Limited
(w.e.f. 03 December 2010) ·
Malco Power Company Limited (w.e.f. 19 February
2011, fellow Subsidiary from 16 April 2010 to 18 February 2011) ·
Malco Industries Limited (w.e.f. 04 March 2011
fellow Subsidiary from 22 April 2010 to 03 March 2011) ·
Black Mountain Mining (Proprietary) Limited
(w.e.f. 04 February 2011) ·
Vedanta Lisheen Finance Limited (w.e.f. 15
February 2011) ·
Vedanta Base Metals (Ireland) Limited (w.e.f. 15
February 2011) ·
Vedanta Lisheen Mining Limited (w.e.f. 15
February 2011) ·
Killoran Lisheen Mining Limited (w.e.f. 15
February 2011) ·
Killoran Lisheen Finance Limited (w.e.f. 15
February 2011) ·
Lisheen Milling Limited (w.e.f. 15 February 2011) ·
Killoran Concentrates Limited (w.e.f. 15 February
2011) ·
Killoran Lisheen Limited (w.e.f. 15 February
2011) ·
Azela Limited (w.e.f. 15 February 2011) ·
Killoran Lisheen Holdings Limited (w.e.f. 15
February 2011) ·
THL Zinc Ventures Limited (w.e.f. 19 November
2010) ·
THL Zinc Limited (w.e.f. 19 November 2010) ·
Vizag General Cargo Berth Private Limited (w.e.f.
20 April 2010) ·
Paradip Multi Cargo Berth Private Limited (w.e.f.
08 February 2011) ·
Pecvest 17 Proprietary Limited (w.e.f. 26
November 2010) ·
Lisheen Mine Partnership (w.e.f. 15 February
2011) ·
THL Zinc Co-Operatief U.A (w.e.f. 01 December
2010) |
|
|
|
|
Associates: |
Vedanta Aluminium Limited (Fellow Subsidiary and associate) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity Shares |
Re.1/- each |
Rs.5000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3361207534 |
Equity Shares |
Re.1/- each |
Rs.3361.200
Millions |
NOTE:
1. Of the above equity shares:
(a) 2,10,000 Equity
Shares of Rs.10 each were allotted as fully paid-up pursuant to a contract
without payment being received in cash before buy back, extinguishment,
sub-division and issue of bonus shares.
(b) 232,43,52,742 Equity
Shares of Rs.1 each (Previous Year 32,19,73,026 Equity Shares of Rs.2 each)
were allotted as fully paid-up bonus shares by way of capitalization of General
Reserve and Security Premium.
(c) 27,33,675
Equity Shares of Rs.10 each were allotted pursuant to scheme of Amalgamation
without payment being received in cash before buy back, extinguishment,
sub-division and issue of bonus shares.
(d) 40,99,400
Equity Shares were allotted as fully paid upon conversion of 50,000 Foreign
Currency Convertible Bonds before sub-division and issue of bonus shares.
(e) 10,92,72,684
(Previous Year 12,49,92,080) American Depository Shares (ADS) representing
43,70,90,736 underlying equity shares of Rs.1 each (Previous Year 12,49,92,080
of Rs.2 each) post bonus and split during the year. One (1) American Depository
Share represents Four (4) Equity Shares of Rs.1 each.
2. Refer Note
Number 3 of Schedule 21 in respect of reduction of Issued, Subscribed and
Paid-up capital and in respect of sub-division and issue of bonus shares.
3. Of the above
equity shares, 183,66,32,776 (Previous Year 45,31,23,492) equity shares
(including equity shares representing ADS) are held by Company’s holding
company and 10,24,53,600 (Previous Year 2,56,13,400) by a fellow subsidiary of
the Company.
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 |
3361.200 |
1680.800 |
1417.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
228927.800 |
221000.000 |
138981.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
232289.000 |
222680.800 |
140398.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
15694.400 |
1000.000 |
3038.000 |
|
|
2] Unsecured Loans |
41915.900 |
52222.000 |
35262.400 |
|
|
TOTAL BORROWING |
57610.300 |
53222.000 |
38300.400 |
|
|
DEFERRED TAX LIABILITIES |
4328.600 |
3638.100 |
3336.500 |
|
|
|
|
|
|
|
|
TOTAL |
294227.900 |
279540.900 |
182035.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14672.100 |
15608.200 |
16136.600 |
|
|
Capital work-in-progress |
7203.500 |
2658.100 |
321.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
62378.500 |
109841.700 |
116618.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
31898.700
|
19940.400 |
14069.000 |
|
|
Sundry Debtors |
7979.800
|
3851.100 |
5268.900 |
|
|
Cash & Bank Balances |
18912.800
|
22849.100 |
17378.400 |
|
|
Other Current Assets |
879.700
|
1139.100 |
349.200 |
|
|
Loans & Advances |
188859.500
|
121361.500 |
28377.000 |
|
Total
Current Assets |
248530.500
|
169141.200 |
65442.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
29998.100
|
8989.100 |
7558.300 |
|
|
Other Current Liabilities |
2226.300
|
2059.000 |
2171.400 |
|
|
Provisions |
6332.300
|
6660.200 |
6754.200 |
|
Total
Current Liabilities |
38556.700
|
17708.300 |
16483.900 |
|
|
Net Current Assets |
209973.800
|
151432.900 |
48958.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
294227.900 |
279540.900 |
182035.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
152950.000 |
131142.800 |
115659.900 |
|
|
|
Other Income |
16240.900 |
11355.800 |
8099.300 |
|
|
|
TOTAL (A) |
169190.900 |
142498.600 |
123759.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Traded Goods |
172.000 |
932.200 |
757.000 |
|
|
|
Manufacturing and Other Expenses |
146061.300 |
125475.900 |
100164.800 |
|
|
|
Personnel |
885.700 |
772.800 |
822.800 |
|
|
|
Selling & Distribution |
868.300 |
919.000 |
956.600 |
|
|
|
Administration & General |
1119.700 |
1444.400 |
1353.200 |
|
|
|
Exceptional Items |
0.000 |
2735.300 |
(553.100) |
|
|
|
Variation in Stock |
(2960.000) |
(3397.900) |
3165.400 |
|
|
|
TOTAL (B) |
146147.000 |
128881.700 |
106666.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
23043.900 |
13616.900 |
17092.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2774.600 |
2632.500 |
2039.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
20269.300 |
10984.400 |
15053.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1526.500 |
1506.400 |
1661.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
18742.800 |
9478.000 |
13391.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4545.700 |
1163.000 |
1027.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
14197.100 |
8315.000 |
12364.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
25909.800 |
26834.100 |
19441.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer (from)/ to Debenture Redemption
Reserve |
(85.000) |
29.000 |
30.000 |
|
|
|
General Reserve |
5000.000 |
5000.000 |
2040.000 |
|
|
|
Proposed Dividend on Equity Shares |
3697.300 |
3151.500 |
2479.700 |
|
|
|
Tax on Proposed Dividend |
599.800 |
523.400 |
421.500 |
|
|
|
Additional dividend for previous year |
0.000 |
461.700 |
0.000 |
|
|
|
Tax on additional dividend for previous
year |
0.000 |
73.700 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
30894.800 |
25909.800 |
26834.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
62890.300 |
59210.700 |
45657.900 |
|
|
|
Management Fees |
9.100 |
172.300 |
45.300 |
|
|
|
Others |
3636.500 |
816.900 |
98.500 |
|
|
TOTAL EARNINGS |
66535.900 |
60199.900 |
45801.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
143578.300 |
120738.800 |
81488.900 |
|
|
|
Stores & Spares |
339.200 |
371.100 |
481.200 |
|
|
|
Capital Goods |
13.100 |
57.100 |
192.100 |
|
|
TOTAL IMPORTS |
143930.600 |
121167.000 |
82162.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (Basic) |
4.22 |
2.60 |
17.45 |
|
|
|
Earnings Per
Share (Rs.) (Diluted) |
3.81 |
2.46 |
17.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
|
41726.300 |
48017.500 |
45844.700 |
|
Total Expenditure |
|
39509.800 |
47356.400 |
44987.600 |
|
PBIDT (Excl OI) |
|
2216.500 |
661.100 |
857.100 |
|
Other Income |
|
4193.800 |
4592.000 |
4588.700 |
|
Operating Profit |
|
6410.300 |
5253.100 |
5445.800 |
|
Interest |
|
1141.000 |
1110.900 |
1091.200 |
|
PBDT |
|
5269.300 |
4142.200 |
4354.600 |
|
Depreciation |
|
378.400 |
375.100 |
363.600 |
|
Profit Before Tax |
|
4890.900 |
3767.100 |
3991.000 |
|
Tax |
|
1462.300 |
1195.400 |
1147.800 |
|
Profit After Tax |
|
3428.600 |
2571.700 |
2843.200 |
|
Net Profit |
|
3428.600 |
2571.700 |
2843.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.39
|
5.84 |
9.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.25
|
7.23 |
11.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.12
|
5.13 |
16.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.04 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.41
|
0.32 |
0.39 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.45
|
0.96 |
3.97 |
LOCAL AGENCY FURTHER INFORMATION
Financial performance
During the year, the
gross turnover of the Company increased by 18.85% from Rs.136764.700 Millions
to Rs.162538.800 Millions. The increase in turnover by 18.85% was primarily due
to the increase in the average Copper LME prices from US$ 6,112 / MT to US$
8,138 / MT.
TC / RC (Treatment
Charges and Refining Charges) realisation in the financial year 2011 was 11.90
USC / lb, as compared to the 13.54 USC / lb in the previous year due to
suppressed spot TC / RCs market. The earnings before interest, tax depreciation
and amortization for the same period increased by 40.92% from Rs.16352.200
Millions to Rs.23043.900 Millions and the Net Profit increased by 70.74% from
Rs.8315.000 Millions to Rs.14197.100 Millions in the current year.
Operational Performance
The year was very
challenging due to lower TC / RC and higher input costs, thereby reducing the
product margin. Sulphuric acid and phosphoric acid realisation was higher as
compared to the previous year in line, with the increasing sulphur prices.
Production was also affected due to planned bi-annual maintenance shutdown and
also due to temporary stoppage of the Tuticorin copper smelter as per the
Honourable Madras High Court order, dated 28 September 2010 for closure of
Tuticorin copper unit.
During the year,
the Company consolidated its leadership position in domestic copper with record
sales of 2,06,653 MT. Production of cathodes was 3,03,991 MT in the financial
year 2011, lower by 9% year on year reflecting both the impact of the planned
maintenance undertaken, the effect of lower copper grades in concentrate on
production and temporary stoppage following the High Court order in end
September 2010. On the Special Leave Petition (SLP) filed by the Company,
Honourable Supreme Court of India stayed the operation of the order of Madras
High Court directing closure of Copper Smelter at Tuticorin. The unit is
currently operational at it's full capacity. The Company also exported 96,674
MT of copper, including exports of 31,377 MT of copper rods.
Projects
Copper Smelter -
Four Lakh Tonnes Per Annum (4 LTPA) and 2 x 80 - 160 MW Captive Power Plant The
construction of the Captive Power Plant at Tuticorin is in progress and the
first unit is now scheduled for commissioning in Q4 of the financial year
2011-12. While the Ministry of Environment & Forest (MoEF) clearance is in
place for the 4 LTPA, the Copper Smelter Expansion Project at Tuticorin is
being rescheduled, awaiting the consent from the State Pollution Control Board.
MANAGEMENT DISCUSSION AND ANALYSIS
General Economic Outlook
Global economic
growth exceeded their expectation in the financial year 2010-11, although the
global economy remained volatile. Commodity prices declined at the start of the
year but recovered in the second half as European Sovereign debt concerns receded
and developed economies started to stabilise. Demand from Asian Economies
remained robust and was key driver of growth.
The strong growth
story in India with consumption of basic commodities increasing throughout the year.
From Subjects perspective this meant their sustained investment in the
down-turn of 2008-09, reaped rewards. Against the backdrop of this favourable
increase in demand and strong prices, they delivered record production and a
very strong set of results across their business as they focused on delivering
operational excellence and sustained volume growth.
The strong growth
story in India with consumption of basic commodities increasing throughout the
year. From Subjects perspective this meant their sustained investment in the
down-turn of 2008-09, reaped rewards. Against the backdrop of this favourable
increase in demand and strong prices, they delivered record production and a
very strong set of results across their business as they focused on delivering
operational excellence and sustained volume growth. Similar to last year,
overall Indian copper demand grew by 4% in the financial year 2010-11. The
demand of refined copper has been average in the second half of 2010-11, on
account of rising LME and increasing gap between primary and secondary copper.
Compared to the financial year 2009-10, in the domestic market, Subject
recorded a 9% rise in sales of copper cathodes. There has been an increase in
the consumption of refined copper to the extent of 5% in the transformer
segment. SIIL enjoyed nearly 50% share across all the major segments–winding
wire, transformers & cable segments during the financial year 2010-11.
Growth in these major segments is well supported by the fact of increasing
investments in the power sector in India. 32,512 MW of power capacity has been
already added under the eleventh five year plan'. Yet, over the span of the
year, the Indian economy posted a remarkable recovery, not only in terms of
overall growth figures but, more importantly, in terms of certain fundamentals,
which justify optimism for the Indian economy in the medium to long term. The
Company also feels that the worst is over and is fully geared to take advantage
of the improved economic indicators.
SUBSIDIARY COMPANIES
The Company had 36
subsidiary companies as on 31 March 2011. The shareholders may refer to the
statement under Section 212 of the Companies Act, 1956 and information on the
financial statements of subsidiaries appended to the above Statement under
Section 212 of the Companies Act, 1956 in this Annual Report for further
information on these subsidiaries. The Company undertakes that annual accounts
of the subsidiary companies and the related detailed information be made
available to shareholders of the holding and subsidiary companies seeking such
information at any point of time. The annual accounts of the subsidiary
companies are also kept for inspection by any shareholders at the registered
office of the holding company and of the subsidiary companies
concerned at the
respective companies’ registered offices. A hard copy of details of accounts of
subsidiaries to any shareholder shall be provided on demand. Members may write
to the Company Secretary at Subject Industries (India) Limited, SIPCOT
Industrial Complex, Madurai By-pass Road, Tuticorin – 628 002 to obtain a copy
of the financial statements of the subsidiary companies. The consolidated
financial statements, in terms of Clause 32 of the Listing Agreement and in
terms of Accounting Standards 21, as prescribed by Companies (Accounting
Standards) Rules, 2006 issued by Ministry of Corporate Affairs vide
notification no. G.S.R. 739 (E)
dated 07 December 2006.
Commercial Energy
Business
The Subject Group
has set up and operating captive power plants since 1997. Subject is currently
developing a commercial power generation business in India that leverages its
experience in setting up and operating captive power plants that support its
primary businesses. As at March 31, 2011, the total surplus power generation
capacity of its thermal power plants and wind power plants was 1,041 MW of
which approximately 870 MW was from coalbased thermal captive power plants.
Their wholly-owned subsidiary Subject Energy is setting up a 2,400 MW thermal
coal-based power facility (comprising four units of 600 MW each) in Jharsuguda
in the State of Orissa. The 2400 MW Independent Power Plant Jharsuguda, Orissa
at a cost of Rs.84840.000 Millions is under progress and is expected to
complete by end of FY 2012. First unit of 600 MW has been capitalized in March,
2011. The Company’s commercial power generation business also includes the wind
power plants. The establishment of additional wind power plants of 150 MW was
announced by HZL, of which 48 MW have already been commissioned during the year
taking the wind generation capacity to 171 MW as on 31 March 2011. The power
generated from these wind power plants is proposed to be sold to state
electricity boards in India. This project is anticipated to be funded through
internal resources and would provide tax incentives under the Income Tax Act.
Ports and
Infrastructure Business
The Company was
the successful bidder for mechanisation of the coal handling facilities at the
outer harbour of
Vishakapatnam port
on the east coast of India, which is based on the Public Private Partnership
(PPP) model. The Company has a seventy four percent equity interest in VIZAG
General Cargo Berth Pvt Limited (VGCB), a special purpose vehicle formed as a
joint venture between the Company and Leighton Contractors India (Private)
Limited. The
initial capacity of the upgraded berth will be 10.2 million tonnes per annum
with flexibility to upgrade to 12.5 million tonnes per annum. VGCB entered into
a concessionaire agreement on October 08, 2010 with Vishakapatnam Port Trust,
for mechanisation the coal handling facilities and upgrade the general cargo
berth on a build-operate-transfer basis for 30 years commencing on the date of
award of concession. Vishakapatnam Port Trust will receive a share of the
revenue earned from the berth. The expected costs for the project is
Rs.6750.000 Millions (US$ 150 million) and construction has commenced with
completion of the berth expected by mid 2012.
Overview
Global economy
growth exceeded most expectations in the financial year although the global
economy remained volatile. Commodity prices declined at the start of the year
but recovered in the second half as European sovereign debt concerns receded
and developed economies started to stabilise. Demand from Asian economies remained
robust and was the key driver of growth. Growth story in India continues to
remain strong with increased consumption demand of commodities. They remain
focused on delivering operational excellence and sustained volume growth. On
the backdrop of this favourable increased demand and strong prices they
delivered record productions and a very strong set of results across their
businesses.
During the year
2010-11, they completed the acquisition of Zinc assets of Anglo- American Plc.
(Anglo Zinc) comprising its Skorpion mines in Namibia, Lisheen mines in Ireland
and 74% owned Black Mountain mines in South Africa, which includes the Black
Mountain mine and the Gamsberg project. Subject is the world’s largest
integrated zinc-lead producer and has significant operating expertise with
zinc. The acquired zinc assets is an excellent operational and strategic fit
with their existing business and is expected to create significant long term
value.
During the year
all their businesses delivered volume growth, with significant increase in zinc
and commercial power production. Their ongoing cost reduction measures have
helped to contain the impact of higher input prices while higher volumes have
also benefited unit operating costs. Stronger commodity prices for copper,
aluminium
and zinc have also
contributed to the increase in PBDIT during the year.
They have made
excellent progress during the year in executing their project led organic
growth programme. Their focus on continued asset optimisation and reduction of controllable
costs remains key to delivery excellent results and long term value.
Performance – Copper
Market Overview
Global refined
copper production in 2010 was reported as 19.1 million tonnes, an increase of
about 4%, over the 2009 figure of 18.4 million tonnes. Global refined
consumption exceeded supply by about 2,50,000 tonnes. Global mine production
growth slowed to 0.8% in 2010, hampered by falling copper grades and labour
disputes. Global copper consumption is estimated to increase by about 5% during
2011. Similar to last year, overall Indian copper consumption grew by 4% in the
financial year 2011, constrained by increased imports of finished electrical
machinery. They sold 68% of production in their local market and the remaining
32% was exported to China, South East Asia and the Middle East.
Growth in the
power sector in India, and increased spending on infrastructure including
housing, continued to drive the growth of copper consumption. Over the medium
to long term it is expected to grow at about 8-9% per annum.
Production Performance
Production of
cathodes at their Copper— India business was 304 kt in the financial year 2011,
lower by 9% year on year, reflecting the impact of bi-annual shutdown of
smelter undertaken and temporary shutdown following the Hon’ble Madras High
Court order in end of September 2010. The Company’s Special Leave Petition
(SLP) challenging the High Court order is being heard by the Hon’ble Supreme
Court, and the unit is currently operational at its full capacity. During the
year they also stabilised the precious metal refinery and rod plant at
Fujairah. Mined metal production at their Australian mines was 4.2% lower at 23
kt in the financial year 2010-11.
Financial
Performance
PBDIT for the
financial year 2010-11 was Rs.10430.000 Millions, 40% higher than the PBDIT of
Rs.7440.000 Millions for the financial year 2009-10. This was primarily due to
higher LME prices and lower unit costs at Copper India and with the improved
byproduct realisation.
Outlook
The global market
is expected to grow at around 5% in current year with higher demand from
developing countries to support the infrastructure growth. They expect stable
operating performance at their smelter in India and their mines in Australia.
Performance - Zinc and Lead
Market Overview
Global zinc demand
rebounded strongly in 2010, growing by 14.8% following a fall of 9.4% in 2009,
at 11.6 MT. Urbanisation and increased spending on infrastructure in developing
countries have continued to be the key driver for demand. While long-term
global demand is expected to grow at 3-4% per annum, the near term demand
growth in Asia (excluding China), their key export market, is poised to grow at
7%. India, where their major zinc facilities are located, continues to present
a promising growth trajectory on the back of low per capita zinc consumption at
0.45 kg as compared to the global average zinc consumption of 1.8 kg per capita
zinc. Hindustan Zinc Limited (HZL), their Indian zinc-lead-silver business, has
been successful in maintaining around 82% market share in the local zinc
market, registering a 7% year on year growth.
Production
Performance
Zinc India Operations:
Improved
operational performance and ramp up of enhanced capacity at their mines contributed
to an increase in mined metal production of zinc and lead in the financial year
2010-11, up 9.0% to 840 kt. The new mill at the mine achieved 84% capacity
utilisation in March 2011. Refined zinc production also rose substantially to
712 kt, an increase of 23.2%, primarily due to additional volumes from the
newly commissioned zinc smelter at Dariba. Lead production was 57 kt, a
decrease of 7 kt over the previous year. Higher silver content in the Ore was
the key factor behind the record silver production of 4.76 million ounces in
the financial year 2010-11, 6.7% higher than the 4.46 million ounces produced
in the financial year 2009-10.
Financial
Performance
Increased
production volumes, higher prices and by-product credit contributed to a strong
increase in PBDIT for the financial year 2010-11, up 18% to Rs.55560.000
Millions, compared with the financial year 2009-10. This increase was partially
off-set by increased net operating costs and royalties. The positive impact of
higher volumes, rupee appreciation against US dollar and stable operating cost,
contributed significantly to company’s operating margins.
Outlook
Zinc India
continues to be on a volume growth path having recently reached its targeted
mining capacity, equivalent to 1 MT of refined metal, and the ramp-up of the
Sindesar Khurd mine is expected to increase silver content in concentrate.
Commissioning of the lead smelter at Dariba will help conversion of lead
concentrate to lead metal. The outlook for demand remains positive in their
target markets and globally and their new acquisition, Zinc International, is
expected to deliver steady performance.
Performance – Aluminium
Market Overview
The global
aluminium industry recorded a 12.8% growth in production and 16.7% growth in
consumption during the year after a turbulent period. Globally the industry is
facing the challenge of rise in costs and other input costs. This is also re
ected in the increase in aluminium LME prices. Their aluminium facilities are
located in India in the state of Orissa and Chattisgarh where there are
abundant bauxite and coal deposits. This underscores India’s unique advantage
of being rich in natural resources required to produce aluminium at a
competitive cost. Subject emerged as the largest producer of aluminium in India
and, within a short period, acquired industry leading market share of 39%
(including VAL production) in the local Indian market. The Indian aluminium
market is dominated by growing demand from the power sector. Over time, the
relative share of aluminium applications in other segments is expected to pick
up with rapid urbanisation and construction sector growth. Subject’s plants had
focused on value added products like wire rods, rolled product and billets to
capitalise on market growth and optimise returns.
Financial
Performance
PBDIT for the
financial year 2010-11 was Rs.6160.000 Millions, 3% higher than the financial
year 2009-10. This improved performance was primarily driven by LME prices,
partially off-set by higher carbon and coal costs, which were further increased
by around 30% by Coal India in March 2011 and a new green tax on coal.
Outlook
They expect to
increase volumes at their alumina refinery in Lanjigarh and improve operating
performance at the new Jharsuguda smelter post stabilisation. They will
continue to focus on value added products to optimise returns.
Performance – Energy
Operational
Performance
During the
financial year 2011, they sold 2,035 million units of power, compared with
1,416 million units in the previous year. This growth in volume was mainly on
account of surplus power sales from 270 MW power plant at BALCO and
commissioning of first unit of 600 MW commencing power generation at
Jharsuguda, SEL.
Financial
Performance
Revenue (net of
inter-segment transfers) for the financial year 2011 was Rs.7280.000 Millions,
compared with Rs.6570.000 Millions in the previous year and PBDIT for the FY
2010-11 was Rs.3350.000 Millions as against Rs.4180.000 Millions in the
previous year. PBDIT was lower primarily due to higher operating costs,
primarily coal and lower sales prices.
Overall Business
Outlook
The medium and
long term outlook for the resource sector remains positive. They have a strong
growth pipeline and all their expansion projects are on track to deliver
industry leading organic growth. They remain confident that they are on track
to deliver superior results going forward.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
(a) Disputed liabilities in appeal: |
|
|
|
(i) Income Tax (No cash outflow is expected in the near future) |
522.500 |
807.000 |
|
(ii) Sales Tax (relating to sale value) |
72.600 |
72.600 |
|
(iii) Custom Duty (No cash outflow is expected in the near future) |
62.300 |
102.000 |
|
(iv) Excise Duty
(Mainly on account of difference in valuation of intermediate products meant
for captive consumption at other locations and clearance of intermediate
products to other locations on job basis. No cash outflow is expected in the
near future). |
383.900 |
383.900 |
|
(v) Claim
against the Company not acknowledged as debt (No outflow is expected in the
near future) |
225.800 |
244.800 |
|
(vi) Service Tax
(On account of credit taken on outward freight paid to goods transport agent
and no outflow is expected in the near future) |
185.700 |
185.700 |
|
(vii) FERA / FEMA (No outflow is expected in the near future) |
599.000 |
599.000 |
|
(viii) Others (No outflow is expected in the near future) |
100.900 |
100.900 |
|
(b) Unexpired Letters of Credit (These are established
in favour of vendors but cargo / material under the aforesaid Letter of
Credit are yet to be received as on year end date. Cash outflow expected on
the basis of payment terms as mentioned in Letter of Credit). |
17081.800 |
11471.200 |
|
(c) Bank Guarantees (Bank guarantees
are provided under contractual / legal obligation. No cash outflow is
expected) |
1857.600 |
1164.800 |
|
(d) Sales Bill Discounted |
12140.400 |
9207.000 |
|
Total |
33232.500 |
24338.900 |
FIXED ASSETS:
·
Land
·
Building
·
Building Leasehold
·
Plant and Machinery
·
Furniture and Fixtures
·
Data Processing
Equipments
·
Office Equipments
·
Electrical Fittings
·
Vehicles
·
Computer Software
·
Technical Know-How
WEBSITE DETAILS:
MANAGEMENT:
Mr. Anil Agarwal – Chairman
Mr. Agarwal, who founded the Vedanta/Subject group in 1976, is our Chairman and was appointed to our Board of Directors in 1978. Based in the United Kingdom, he is also the Executive Chairman of Vedanta Resources Plc and the Director of BALCO, HZL, VAL. He has over 30 years of experience as an industrialist and has been instrumental in our growth and development since our inception.
Mr. Navin Agarwal - Executive Vice-Chairman
Mr. Agarwal was appointed to our Board of Directors in August 2003. His
responsibilities include executing our business strategy and monitoring the
overall performance and growth of our organisation. Mr. Agarwal has been with
the Company since its inception. He is also the Chairman of KCM and MALCO,
Deputy Executive Chairman of Vedanta Resources Plc and Director BALCO, HZL,
VAL.
Mr. Navin Agarwal has over 20 years of experience in strategic
management. He holds a Bachelor of Commerce degree from Sydenham College,
Mumbai, and has also completed the Owner/President Management Program at
Harvard University.
Mr. Berjis Minoo Desai - Non - Executive Director
Mr. Desai, is a Non-executive Director and was appointed to our Board of
Directors in January 2003. He holds a Masters Degree in law from the University
of Cambridge and has been the managing partner of Messrs J. Sagar Associates
since 2003. His expertise lies in laws relating to mergers and acquisitions,
securities, international commercial arbitration and in financial and
international business law. Before 2003, he was a partner at Messrs Udwadia,
Udeshi and Berjis.
Mr. Gautam Bhailal Doshi - Non Executive Director
Mr. Doshi, is an Independent Nonexecutive Director and was appointed to
our Board of Directors in December 2001. Since August 2005, he has been
employed with Reliance ADA Group Private Limited. Before that, he was a partner
of RSM and Co. in India from September 1997 to July 2005. Mr. Doshi has 24
years of experience in audit, finance and accounting. Mr. Doshi is a Fellow Member
of the Institute of Chartered Accountants of India and was a member of the
Central Council and the Western India Regional Council of the Institute of
Chartered Accountants of India.
Mr. Sandeep H. Junnarkar - Non Executive Director
Mr. Junnarkar, is our Non-executive Director and was appointed to our
Board of Directors in June 2001. He is a solicitor and a partner of Messrs
Junnarkar and Associates. Earlier, he was a partner at Messrs Kanga and Co.
from 1981 to 2002. Mr. Junnarkar specializes in banking and corporate law. He
has a Bachelor of Science (Honours) degree followed by a Bachelor of Law
degree, both from the University of Mumbai and is a member of the Bombay
Incorporated Law Society.
Mr. Mahendra Singh Mehta-Chief Executive Officer
Mr. Mahendra Singh Mehta is currently Chief Executive Officer of Vedanta
Resources Plc. He is also designated as the Group CEO. Mr. Mehta joined the
Vedanta Group in April 2000 and held various leadership positions within our
group, including as the CEO and Whole-Time Director of Hindustan Zinc Limited
(HZL) and was also the Commercial Director for base metals. Mr. Mehta has a
Bachelor of Mechanical Engineering from MBM Engineering College, Jodhpur, and a
Master of Business Administration from the Indian Institute of Management,
Ahmedabad. He has over 30 years of experience with companies in the steel,
mining and non-ferrous metal sectors.
Mr. Din Dayal Jalan – Whole Time Director and Chief Financial Officer
Mr. Jalan joined Subject in 2001 as President – Australian Operations,
responsible for TCM and CMT mines. He has over 27 years of experience with
various companies in the engineering, mining and non-ferrous metal sectors. Mr
Jalan has been associated with the Aditya Birla Group in various capacities and,
from 1996 to 2000, was in charge of commercial and financial activities at the
copper smelter business of Indo-Gulf Fertiliser Limited Mr Jalan are a member
of the Institute of Chartered Accountants of 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.49.25 |
|
|
1 |
Rs.77.19 |
|
Euro |
1 |
Rs.65.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
71 |
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.