MIRA
INFORM REPORT
|
Report Date : |
25.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
ADHUNIK METALIKS LIMITED (w.e.f 09.08.2005) |
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|
|
|
Formerly Known
As : |
NEEPAZ METALIKS LIMITED (w.e.f 18.02.2004) NEEPAZ METALIKS PRIVATE LIMITED |
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|
Registered
Office : |
14 N S Road, 2nd Floor, Kolkata – 700 001, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
|
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Date of
Incorporation : |
20.11.2001 |
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|
|
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Com. Reg. No.: |
21-093945 |
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Capital Investment
/ Paid-up Capital : |
Rs. 1234.995 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L28110WB2001PLC093945 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RCHN00117F |
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|
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PAN No.: [Permanent Account No.] |
AABCN5676P |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business
: |
Manufacture and |
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|
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 25000000 |
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|
|
|
Status : |
Good |
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|
|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine
track. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 : |
14 N S Road, 2nd Floor, Kolkata – 700 001, West |
|
Tel. No.: |
91-33-22428551/8553 |
|
Tele Fax No. : |
91-33-22428553 |
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Fax No.: |
91-33-22428551 |
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E-Mail : |
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Website : |
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Head Office : |
2, |
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Tel. No.: |
91-657-2227001/7224 |
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Fax No.: |
91-657-2227980 |
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|
|
Corporate Office : |
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|
Tel. No.: |
91-33-30517100 (30 Lines) |
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Fax No.: |
91-33-22890285 |
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E-Mail : |
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|
Factory : |
Chadri Hariharpur, Kuarmunda,
Dist: Subdargarh, Orissa – 770039, |
|
Tel. No.: |
91-661-3051300/2586001-04 |
|
Fax No.: |
91-661-2586005 |
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|
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Branch Offices : |
Located at:
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DIRECTORS
AS ON 15.09.2011
|
Name : |
Mr. Ghanshyamdas Agarwal |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
16.10.1957 |
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|
|
|
Name : |
Mr. Jugal Kishore Agarwal |
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Designation : |
Director |
|
Date of Birth/Age : |
05.10.1951 |
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|
|
|
Name : |
Mr. Nirmal Kumar Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
11.11.1962 |
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|
|
|
Name : |
Mr. Mohan Lal Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
10.05.1964 |
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|
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|
Name : |
Mr. Mahesh Kumar Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
10.05.1966 |
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|
|
|
Name : |
Mr. Nihar Ranjan Hota |
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Designation : |
Director |
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|
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|
Name : |
Mr. Lalit Mohan Chatterjee |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Manoj Kumar Agarwal |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
06.08.1969 |
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|
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|
Name : |
Mr. Ram Gopal Agarwal |
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Designation : |
Director |
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|
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|
Name : |
Mr. Nandanandan Mishra |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Surendra Mohan Lakhotia |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anand Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11,103,634 |
8.99 |
|
|
60,029,787 |
48.61 |
|
|
71,133,421 |
57.60 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
71,133,421 |
57.60 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,715,608 |
3.82 |
|
|
4,958,216 |
4.01 |
|
|
7,555,079 |
6.12 |
|
|
17,228,903 |
13.95 |
|
|
|
|
|
|
11,207,529 |
9.07 |
|
|
|
|
|
|
7,305,396 |
5.92 |
|
|
10,748,684 |
8.70 |
|
|
5,875,603 |
4.76 |
|
|
321,583 |
0.26 |
|
|
89.840 |
0.07 |
|
|
1,000 |
- |
|
|
5,463,180 |
4.42 |
|
|
35,137,212 |
28.45 |
|
Total Public shareholding (B) |
52,366,115 |
42.40 |
|
Total (A)+(B) |
123,499,536 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
123,499,536 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacture and |
|
|
|
|
Products : |
v Auto
steel v Gear
steel v Spring
flat steel v Free
cutting v Non
hardened and tempered steel v Micro
alloyed steel |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production In
MT |
|
Sponge Iron |
Tonnes |
300000 |
203695 |
|
Pig Iron |
Tonnes |
213792 |
179338 |
|
Billets |
Tonnes |
445400 |
335036 |
|
Rolled Product |
Tonnes |
220000 |
159564 |
|
Silco and Ferro Alloys |
Tonnes |
46880 |
24456 |
|
Oxygen Gas |
M. Cu. |
35972000 |
30801498 |
|
Sinter |
Tonnes |
267300 |
243735 |
|
By-Product |
Tonnes |
-- |
489944 |
|
Trading Goods |
Tonnes |
-- |
5726 |
|
Miscellaneous |
Rupees |
-- |
-- |
* Includes sale of By-Products amounting to Rs. 0.142
Millions
Notes:
a) Licensed capacity is not applicable as the industry is delicensed
b) Installed Capacity is as certified by the Management and relied upon by the Auditors.
c) After adjusting shortages
d) Include Trial Run Stock
e) Excludes materials captively consumed
f) Excluding own consumption / transferred to Raw Material
after rescreening
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v State Bank of v Allahabad Bank v Canara Bank v HDFC Bank v ICICI Bank v IDBI Bank v Indian Overseas
Bank v Punjab National
Bank v Bank of v Corporation Bank v Syndicate Bank v State Bank of v UCO Bank v Union Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S R Batliboi and Company Chartered Accountants |
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Subsidiaries : |
v
Adhunik Power Transmission Limited (Formely Unistar Galvanisers and Fabricators Private Limited) v
Adhunik Power and Natural Resources Limited v
Neepaz V Forge ( v
Orissa Manganese and Minerals Limited |
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|
|
|
Partnership Firm (Joint Venture) : |
v
United Minerals |
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|
|
|
Other Related Parties : |
v Adhunik Alloys and Power Limited v Adhunik Corporation Limited v Adhunik Infotech Limited v Adhunik Industries Limited (w.e.f. 05.01.2010) v Adhunik Meghalaya Steels (Private) Limited v Adhunik Steels Limited v Futuristic Steels Limited v Mahananda Suppliers Limited v
Neepaz B.C. Dagara Steels Private Limited v Sungrowth Shares and Stock Limited v Swarnarekha Steel Industries Limited v
Zion Steel Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
145180000 |
Equity Shares |
Rs. 10/- each |
Rs. 1451.800 Millions |
|
2000 |
Preference Shares |
Rs. 100/- each |
Rs. 0.200 Million |
|
|
Total |
|
Rs. 1452.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
123499536 |
Equity Shares |
Rs. 10/- each |
Rs. 1234.995
Millions |
|
|
|
|
|
Notes:
Issued, Subscribed and Paid-up Capital
includes 8,033,322 Equity Shares of Rs. 10/- each issued for consideration
other than cash and 8,545,152 shares issued and allotted as fully paid up Bonus
shares by capitalization of 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 |
1234.995 |
1234.995 |
912.312 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Share Warrants |
0.000 |
0.000 |
251.201 |
|
|
3] Reserves & Surplus |
5173.653 |
4920.048 |
2005.587 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6408.648 |
6155.043 |
3169.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12700.944 |
9726.964 |
9228.802 |
|
|
2] Unsecured Loans |
743.004 |
2457.859 |
3983.283 |
|
|
TOTAL BORROWING |
13443.948 |
12184.823 |
13212.085 |
|
|
DEFERRED TAX LIABILITIES |
1471.302 |
1342.399 |
994.119 |
|
|
|
|
|
|
|
|
TOTAL |
21323.898 |
19682.265 |
17375.304 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
12633.496 |
13099.542 |
8604.170 |
|
|
Capital work-in-progress |
673.596 |
355.903 |
1927.629 |
|
|
Capital expenditure on new Projects and Trial Run expenses |
159.753 |
24.722 |
651.313 |
|
|
|
|
|
|
|
|
INVESTMENT |
2070.733 |
2060.699 |
1781.100 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6577.903
|
4469.501 |
3723.522
|
|
|
Sundry Debtors |
2973.714
|
2061.516 |
1134.814
|
|
|
Cash & Bank Balances |
586.032
|
995.388 |
855.011
|
|
|
Other Current Assets |
238.533
|
23.235 |
132.944
|
|
|
Loans & Advances |
1209.948
|
1485.866 |
1902.478
|
|
Total
Current Assets |
11586.130
|
9035.506 |
7748.769
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3032.081
|
1803.932 |
1395.253
|
|
|
Other Current Liabilities |
2538.589
|
2878.215 |
1788.340
|
|
|
Provisions |
229.140
|
211.960 |
141.290
|
|
Total
Current Liabilities |
5799.810
|
4894.107 |
3324.883
|
|
|
Net Current Assets |
5786.320
|
4141.399 |
4423.886
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21323.898 |
19682.265 |
17375.304 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14373.005 |
12585.895 |
11637.924 |
|
|
|
Other Income |
524.705 |
369.502 |
267.455 |
|
|
|
TOTAL (A) |
14897.710 |
12955.397 |
11905.379 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease) in stocks |
(2051.697) |
(762.127) |
100.327 |
|
|
|
Excise Duty on Stocks |
31.684 |
120.422 |
(12.707) |
|
|
|
Raw Material Consumed |
8360.051 |
5923.698 |
4536.793 |
|
|
|
Purchases of Trading Goods |
151.483 |
965.043 |
1681.493 |
|
|
|
Manufacturing Expenses |
3518.016 |
2649.016 |
2335.719 |
|
|
|
Personnel Expenses |
577.822 |
423.219 |
304.268 |
|
|
|
Selling and Administrative Expenses |
1092.004 |
979.508 |
1177.250 |
|
|
|
Preliminary Expenditure Written Off |
0.000 |
0.046 |
0.000 |
|
|
|
Share of
(Profit) / Loss in Partnership Firm |
0.103 |
(0.048) |
(0.026) |
|
|
|
Prior period expenses |
3.193 |
15.118 |
5.308 |
|
|
|
TOTAL (B) |
11682.659 |
10313.895 |
10128.425 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3215.051 |
2641.502 |
1776.954 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1673.229 |
1380.220 |
1064.897 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1541.822 |
1261.282 |
712.057 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
875.761 |
582.345 |
369.386 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
666.061 |
678.937 |
342.671 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
97.452 |
139.869 |
41.199 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
568.609 |
539.068 |
301.472 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2126.606 |
1839.123 |
1661.088 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment
of loss pertaining to the amalgamating companies |
0.000 |
58.094 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
28.430 |
13.477 |
0.000 |
|
|
|
Proposed Dividend |
185.249 |
154.374 |
105.506 |
|
|
|
Dividend Tax |
0.852 |
25.640 |
17.931 |
|
|
BALANCE CARRIED
TO THE B/S |
2480.684 |
2126.606 |
1839.123 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1047.117 |
29.844 |
662.326 |
|
|
TOTAL EARNINGS |
1047.117 |
29.844 |
662.326 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2089.506 |
1138.961 |
805.931 |
|
|
|
Stores & Spares |
104.580 |
81.909 |
59.767 |
|
|
TOTAL IMPORTS |
2194.086 |
1220.870 |
865.698 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
4.60 |
4.80 |
3.30 |
|
|
|
Diluted |
4.60 |
4.74 |
2.90 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
3rd
Quarter |
|
Sales Turnover |
3324.41 |
3473.65 |
3797.74 |
4023.90 |
|
Total Expenditure |
2577.96 |
3307.47 |
3078.86 |
3860.98 |
|
PBIDT (Excl
OI) |
746.45 |
166.18 |
718.88 |
162.92 |
|
Other Income |
0.00 |
0.00 |
6.16 |
656.19 |
|
Operating
Profit |
746.45 |
166.18 |
725.04 |
819.11 |
|
Interest |
485.81 |
509.04 |
445.15 |
617.49 |
|
Exceptional
Items |
0.00 |
0.00 |
0.00 |
(65.22) |
|
PBDT |
260.64 |
(342.86) |
279.89 |
136.40 |
|
Depreciation |
222.03 |
226.61 |
227.47 |
224.14 |
|
Profit
Before Tax |
38.61 |
(569.47) |
52.42 |
(87.74) |
|
Tax |
7.74 |
(301.70) |
(155.61) |
(32.93) |
|
Reported PAT |
30.87 |
(267.77) |
208.03 |
(54.81) |
|
Extraordinary Items |
0.00 |
0.00 |
0.00 |
0.00 |
|
Prior Period Expenses |
0.00 |
0.00 |
0.00 |
0.00 |
|
Other Adjustments |
0.00 |
0.00 |
0.00 |
0.00 |
|
Net Profit |
30.87 |
(267.77) |
208.03 |
(54.81) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.82
|
4.16
|
2.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.63
|
5.39
|
2.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.75
|
3.07
|
2.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.11
|
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.00
|
2.77
|
5.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.00
|
1.85
|
2.33 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions of the firm |
Yes |
|
4. Premises details |
Yes |
|
5. Type of Business |
Yes |
|
6. Line of Business |
Yes |
|
7. Promoter’s background |
Yes |
|
8. No. of Employees |
No |
|
9. Name of person contacted |
No |
|
10. Designation of contact person |
No |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
-- |
|
14. Estimation for coming financial year |
No |
|
15. Capital in the business |
Yes |
|
16. Details of sister concerns |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
No |
|
21. Market information |
-- |
|
22. Litigations that the firm / promoter involved |
-- |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
-- |
|
26. Buyer visit details |
-- |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
Yes |
MANAGEMENT
DISCUSSION AND ANALYSIS
Indian economic
review
The Indian economy rebounded from the global economic slowdown of 2008, its
GDP rebounding from 8% in 2009-10 to 8.6% in 2010-11, following a recovery in
agriculture, and sustained momentum in its manufacturing sector. The country’s
manufacturing growth remained constant at 8.8% while mining declined 6.2% in
2010-11 against 6.9% in 2009-10.
Iron ore
Iron ore is the primary source of iron for the world's iron and steel
industries. It is essential for steel production, which in turn is critical for
a strong industrial base. Almost all (98%) iron ore is used in steel-making.
Iron ore is mined in about 50 countries. The seven largest of these countries
account for about three-quarters of the total world production.
Global scenario: It is estimated
that there are 800 billion tonnes of global iron ore resources containing more
than 230 billion tonnes of iron. Of this, the
Indian scenario: The Indian iron
ore industry is fragmented. A total of 577 mining leases are in force, which
produces around 225m tonnes of iron ore, implying an average of 0.4m tonnes
from each lease.
Outlook: Developing Asia
(including
Manganese ore
Demand for manganese is primarily driven by the steel industry, which
consumes 94% of the manganese ore produced the world over in the form of
manganese alloys. Globally, manganese reserves are estimated at 5.2 billion
tonnes (75% of reserves in
others.
Manganese ore deposits are relatively widespread across more than 40
countries. Manganese is the twelfth most abundant element in the earth’s crust.
Nevertheless, it is rarely found in concentrations high enough to form a
manganese ore deposit. Among 300 minerals containing manganese, only a dozen
are of mining significance. Current estimates of world manganese reserves
(including low grade ore) reached several billion tonnes. But if only high
grade ores (defined as having more than 44% Mn content) are considered, then
reserves are in the range of 680 million tonnes of ore, primarily situated in
the southern hemisphere with Australia, Brazil, Gabon and South Africa catering
to over 90% of the international market demand.
Alloy steel
Alloy steel is a type of steel to which one or more elements besides
carbon are added to produce a desired physical property or characteristic.
Common elements added to make alloy steel comprise molybdenum,\ manganese,
nickel, silicon, boron, chromium and vanadium. Alloy steel is often subdivided
into high and low alloy steels.
Indian alloy steel
market
v
The Indian alloy and special steel long products
demand grew sharply in the past few years, following a boom in the automotive,
capital goods and engineering goods industries.
v
Consumption could have been higher but for the lack
of adequate production facilities, quality and pricing issues.
v
Indian alloy steel units are small by global
standards, in which an increased operational scale will enhance
competitiveness.
v
The Indian alloy steel industry largely caters to
the growing automobile sector followed by the railways and defence sectors.
Steel
Global steel industry: In 2010, the global steel industry remained
stable compared with the volatility in steel and raw material prices during the
financial crisis. Timely support by the governments of major economies through
stimulus packages provided the base for a global sectoral recovery. World crude
steel production reached 1,414 million metric tonnes (mmt) in 2010, an increase
of 15% compared with 2009. All major steel-producing countries and regions
showed double digit growth in 2010.
Indian steel
overview:
Production:
producers. The Indian crude steel production recorded a compounded
annual growth rate of 9.2%
Consumption: In 2010-11, steel
consumption grew at a healthy 10% from 59 million tonnes in 2009-10 to 65
million tonnes in 2010-11, owing to strong demand from the infrastructure,
construction, automobile, industrial and manufacturing sectors. Rising
production capacities reduced
Stainless steel
The key differentiator of stainless steel from other steel types is its
corrosion resistance. There are close to 150 grades of stainless steel (15
commonly used).
Global overview: Stainless steel
production is concentrated in
Indian industry
overview:
demand), consumer durables, transport, construction and tubes. With the
government’s focus on infrastructure development and growing consumer
affluence, stainless steel consumption is slated to grow rapidly and
OPERATIONS
Highlights 2010-11
v
Increased production from 3,32,254 tonnes in
2009-10 to 3,35,036 tonnes
v
Sales volume of value-added rolled products
increased by 12.43% from 1,34,057 tonnes in 2009-10 to 1,50,716 tonne in
2010-11
v
Initiated total productive maintenance (TPM) to
minimise downtime
Overview
Adhunik invested in a fully-integrated business model with captive mines
and power plants, captive railway sidings and rakes, among others, comprising
the following capacities: 445,400 TPA of steel, 3,00,000 TPA of sponge iron,
2,13,792 TPA of pig iron, 46,880 TPA of ferro alloys, 267,300 TPA of sinter,
1,20,000 TPA coke oven plant and a 34-MW captive power plant
In a business where the price of end products is market-dependent,
profitability is derived from cost control across core processes and by-product
and waste utilisation. Road ahead Going ahead, the Company expects to further
increase the capacity utilization of its various facilities, bringing about
operational efficiency
Quality
Management:
Highlights 2010-11
v
Reduced quality rejects from 3.45% in 2009-10 to
2.25%
v
Products were approved by all major Indian OEMs
Overview
Quality is critical in a business where products are supplied to major
automobile OEMs, resulting in longstanding relationships. Adhunik’s six-member
quality team ensured strict conformance with globally-benchmarked quality
standards across various operational functions. The Company invested in a
state-of-theart quality control laboratory, equipped with sophisticated
equipment (vacuum de-gasser, electromagnetic stirrer, LECO hydrogen, nitrogen
and oxygen analyser and metallographic polishing machines, among others). The
Company is ISO 9001:2000-certified and also received coveted certificates like
TS 16949, BIS (IS: 2830/IS: 2831) and RDSO.
Road ahead
Going ahead, the Company will remain focused on maintaining and
enhancing its product quality
Mining
Highlights 2010-11
v
Increased manganese ore sales volume to 193,015 in
2010-11 from 145,279 in 2009-10, recording an increase of 32.85%
v
Manganese ore realisations increased significantly
by 85.14 % from Rs. 0.005 millions in 2009-10 to Rs. 0.009 millions in 2010-11,
due to increased focus on high grade manganese ore mining
v
Iron ore realisations increased significantly by
70.17% from Rs. 0.002 millions in 2009-10 to Rs. 0.002 millions in 2010-11
v
OMM received working permission for three
non-operative manganese mines in Orissa; commenced development
v
The 1.2-million tonne iron ore beneficiation plant
commenced operations in March 2011. The progress on the 1.2 million tonne
pellet plant is on track
Overview
The Company, through its subsidiary, possesses iron ore and manganese
ore mines with estimated resources of 97 mn tonnes and 53 mn tones
respectively. These resources are expected to last over 30 years based on the
Company’s post-commissioning throughput. The iron ore and manganese ore mines
are open cast with a low stripping ratio. The ratio of lumps to fines is 60:40.
Some of the Company’s major clients comprise Bhushan Steel, MSP Sponge Iron,
Jindal Stainless and Rohit Ferro-Tech, among others. The Company is investing
in a 1.2-MTPA iron ore beneficiation plant and pellet plant to convert iron ore
fines into pellets and enhance revenues. The iron ore beneficiation plant was
already commissioned in March 2011 and the pellet plant is expected to commence
operations by the second half of 2012.
Road ahead
Going ahead, the Company expects to commission the pelletisation plants.
The Company is also focused on commissioning the captive coal, iron ore and
Suleipat iron ore mines on schedule.
Marketing
Highlights 2010-11
v
Increased revenues 16.10% from Rs. 1,3455.000
millions in to Rs. 1,5621.900 millions
v
Increased sales volume of finished steel 5.51% from
3,00,880 tonnes in 2009-10 to 3,17,476 tonnes
v
Strengthened average manganese ore from Rs. 4,836
per ton to Rs. 9,010 per ton
v
Strengthened average iron ore realisations from Rs.
1,588 per ton in 2009-10 to Rs. 2,703 per ton
v
Introduced eddy current and automotive multiprobe
ultrasound facility in the plant, which will enable the Company to manufacture
quality products
Overview
Adhunik’s 50-member marketing team enables it to identify customers and
provide them with the right products.
The Company is present in
Road ahead
Going ahead, the Company will seek approvals from more OEMs. The Company
is already in the process of receiving an approval from Hero Honda
v
Operations
The Company continues to progress well as a result of their focus on
high value-added rolled products despite recent raw material cost pressures.
The Company also benefited from the continued strong demand of steel in the
auto, infrastructure and engineering sectors during the year. In the mining
business, they continued to ramp up their production and focused on medium to
high grade manganese ore which helped improve average price realisations. Iron
ore prices also increased significantly during the year, which also contributed
to an increase in margins of the mining business. The first phase of power
venture is expected to commence production by March 2012.
The Company achieved net sales of Rs. 14373.000 millions in FY 2011, an
increase of 14.2% compared to the prior year primarily due to an increase in
sales volumes and prices. Profit after tax also increased to Rs. 568.600
millions in FY 2011 against Rs. 539.000 millions in FY 2010. The Company’s
sales volume of billets and rolled products increased from 3,00,880 MT in FY
2010 to 3,17,892 MT in FY 2011.
The Company’s consolidated net sales increased to Rs. 17934.100 millions
in FY 2011, an increase of 23.7% compared with the prior year, driven by strong
performance in the mining segment. The consolidated profit after tax also increased
from Rs. 1373.500 millions to Rs. 1843.100 millions in FY 2011, recording a
jump of 34.2%.
Deposits
The Company did not accept any deposits within the meaning of Section
58A of the Companies Act, 1956 and the rules made there under.
Transfer to Reserves
In compliance with sub-section (2-A) of section 205 of the Companies
Act, 1956 and in accordance with The Companies (Transfer of Profits to
Reserves) Rules, 1975, it is proposed to carry an amount of Rs. 28.430 millions
(Rs. 13.476 millions) to the General Reserves.
Dividend
The Directors recommended a dividend of Rs. 1.50 per share (last year
Rs. 1.25 per share) subject to approval of the shareholders at the ensuing
Annual General Meeting. The dividend will be paid on 12,34,99,536 equity shares
in line with the applicable regulations. The dividend will be paid to the
members whose name appear in the Register of Members as on August 31, 2011; in
respect of shares held in dematerialised form, it will be paid to members whose
names are furnished by National Securities Depository Limited and Central
depository Services (India) Limited, as beneficial owners. The total dividend
outflow is Rs. 215.301 millions, as against Rs. 180.014 millions in the
previous year.
Deferred tax
In terms of Accounting Standard on ‘Accounting for Taxes on Income’
(AS-22) issued by Institute of Chartered Accountants of India and in compliance
with Hon’ble Calcutta High Court order dated May 7, 2007, and order dated March
29, 2010 the Securities Premium Account was utilised towards net deferred tax
liability amounting to Rs. 128.903 millions (Rs. 354.532 millions) during the
year.
Management’s
Discussion and Analysis Report
Management’s Discussion and Analysis Report for the year, as stipulated
under Clause 49 of the Listing Agreement with the Stock Exchanges, is presented
in a separate section forming part of the Annual Report. The Company has
executed the Mining Lease with Government of Orissa, Department of Steel and
Mines, for iron ore over an area of 33.803 hectares in village - Deojhar, Kulum
and Mahadevnasa under Champua sub-division of Keonjhar district. These
strategies and initiatives are aimed at ensuring that Adhunik delivers
long-term sustainable growth and creates unprecedented value for all its
stakeholders.
Subsidiaries
The Company has four subsidiaries viz.:
v
Adhunik Power Transmission Limited (Formerly
Unistar Galvanisers and Fabricators Limited) became a subsidiary of the Company
with effect from July 17, 2006. During the year, the name of Unistar Galvanisers
and Fabricators Limited was changed to Adhunik Power Transmission Limited vide
ROC Certificate dated January 4, 2011 issued pursuant to section 23(1) of the
Companies Act, 1956.
v
Orissa Manganese and Minerals Limited became a
subsidiary of the Company with effect from April 5, 2007
v
Neepaz V Forge (
v
Adhunik Power and Natural Resources Limited became
subsidiary of the Company with effect from November 14, 2008. However with
effect from December 24, 2010 Adhunik Power and Natural Resources became a
subsidiary of Orissa Manganese and Minerals Limited, the wholly-owned
subsidiary of the Company.
During 2010-11, Adhunik Power and Natural Resources Limited which is in
the process of implementing 270 MW X 2 thermal power project in the state of
Jharkhand also received equity commitment of Rs. 1250.000 millions from SBI
Macquarie Infrastructure Fund. This was in addition to Rs. 2500.000 millions of
equity commitment from IDFC Project Equity Fund.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the balance sheet, profit and loss
account and other documents of the subsidiary companies namely Orissa Manganese
and Minerals Limited, Adhunik Power and Natural Resources Limited, Neepaz
VForge (India) Limited and M/s Adhunik Power Transmission Limited (formerly M/s
Unistar Galvanisers and Fabricators Limited) are not being attached with the
balance sheet of the Company. The annual accounts of the subsidiary companies
and the related detailed information is available on the Company’s website. The
Company will make available the annual accounts of the subsidiary companies and
the related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
companies will also be kept open for inspection at the Registered Office of the
Company and of the subsidiary companies concerned. The consolidated financial
statements presented by the Company include the financial results of its
subsidiary companies. The statement as required under General Circular No.
2/2011 dated February 8, 2011 issued by the Ministry of Corporate Affairs with
respect to disclosure of certain information in the consolidated balance sheet
in aggregate for each subsidiary including subsidiaries of subsidiaries is
annexed, and forms part of consolidated balance sheet.
FIXED ASSETS:
Tangible Assets
v
v
v Buildings
v Plant and Machinery
v Vehicle
v Computers
v Furniture and Fixtures
v Office Equipments
v Rolling Stock
v Railway Siding
Intangible Assets:
v
v Computer Software
AS PER WEBSITE
DETAILS
PROFILE:
Subject, the INR 35000.000
millions conglomerate, is one of the fastest growing groups in
The Group has
steel manufacturing facilities in the states of West Bengal, Orissa, Jharkhand
and a cement unit in Meghalaya and presently has a chain of value added
products including carbon and alloy steel billets, auto grade steel rolled
products, rounds and flats (3,30,000 tpa), TMT bars and wire rods (1,50,000
tpa), sponge iron (4,20,000 tpa), pig iron (2,00,000 tpa), ferro alloys
products i.e. ferro manganese, silico manganese, ferro silicon (50,000 tpa) and
stainless steel products (1,20,000 tpa). The Group also has the power
generation capacity of 84 MW which is being captively consumed, and it is also
setting up an additional 45 MW which is expected to be in operation by 2012.
Moreover, the Group has ventured into manufacturing of high value added
products viz. transmission and sub station towers for power sector.
The Group has
embarked upon a very ambitious plan in the power sector. It is implementing a
1080 MW power plant in the state of Jharkhand.
Subject has a
mining company, having iron ore and manganese ore mines in the states of
Jharkhand and Orissa, respectively. The Group has mining resources viz. iron
ore, coal, manganese ore, lime stone which are in fact the key inputs of
production. Over the years the Group has shown robust operational results with
an excellent track record of growth and profitability.
PRESS RELEASE
17th Feb 2012
Adhunik Metaliks
Limited -News Verification
News Verification : The media had reports that Adhunik Metaliks Limited is in talks to sell its forging arm to Amtek Auto Limited. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company. Adhunik Metaliks Limited has vide its letter inter-alia stated, "We do not comment on these speculative media reports. In case, any matter relating to our business and that of our subsidiaries is taken up by the Board of Directors of the company, we will intimate the Stock Exchanges and media, on such events or matters which have a bearing on the operational/ performance of the company as well as price sensitive information."
NEEPAZ V FORGE
SOLD TO
Subject, sold its forging subsidiary, Neepaz V
Forge, to Nagpur Automotive Industries Private Limited for Rs 2300.000 millions
($44 million), outlaying a strategy to divest non-core assets. Neepaz V Forge
manufactures forged products for automobile players such as Tata Motors, Ashok
Leyland, Renault and Mahindra and Mahindra. Subject is backed by Clearwater
Capital Advisors.
Neepaz's revenue is said to be Rs 1160.000
millions with Ebitda of Rs 200.000 millions, and net profit of Rs 48.000
millions. Its product profile includes front axle beams, crank shafts, cam
shafts, connecting rods, stub axles, steering knuckles, axle arms, differential
case, differential covers, differential housings, pistons, yokes, gears, track
links etc.
The current deal values the company at 11.4
times its previous-year Ebitda and 48-times its net profit.
The advisors for the deal were Enam for
Subject and ICICI Securities for Nagpur Automotive.
In September 2007, Subject had acquired V Cube
Forge India Limited for an undisclosed amount in September 2007 and later
renamed it as Neepaz V Forge. The Kolkata-based Adhunik is a $1 billion group
with business interests in steel, power and mining. Subject is a public listed
firm.
Earlier transactions of Subject included the
Deepak Cables India Limited acquisition of Adhunik Power Transmission Limited
from Subject. Subject Power Transmission (formerly Unistar Galvanisers and
Fabricators Limited) is a manufacturer of fabricated and galvanised items.
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED 31ST MARCH 2012
|
Sr. No. |
Particular |
Quarter Ended |
Twelve Months
Ended |
|
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
|
1. |
Income from Operations |
|
|
|
|
a. |
Net Sales/Income from Operations |
4006.477 |
3770.764 |
14524.146 |
|
b. |
Other Operating Income |
17.419 |
21.138 |
74.361 |
|
|
Total Income from
operations (net) |
4023.896 |
3791.902 |
14598.507 |
|
2 |
Expenditure |
|
|
|
|
i |
Cost of Raw Material |
2280.700 |
1810.328 |
7631.872 |
|
ii |
Purchase of Stock- in- trade |
141.235 |
194.125 |
707.350 |
|
iii |
Changes in inventories of finished goods, work in
progress and stock-in-trade |
119.715 |
(75.090) |
(395.642) |
|
iv |
Employee benefit expenses |
113.734 |
117.100 |
485.949 |
|
v |
Consumption of
stores and spares |
280.669 |
332.977 |
1192.668 |
|
vi |
Depreciation and amortization expenses |
224.137 |
227.471 |
900.248 |
|
vii |
Other Expenses |
924.934 |
601.923 |
2976.841 |
|
|
Total Expenses |
4085.124 |
3208.834 |
13499.286 |
|
3 |
Profit from Operations
before Other Income, Finance costs and Execeptional item |
(61.228) |
583.068 |
1099.286 |
|
4 |
Other Income |
656.194 |
89.451 |
855.115 |
|
5 |
Profit/ Loss from Ordinary
Activities before Finance costs and Execeptional item |
594.966 |
672.519 |
1954.336 |
|
6 |
Finance costs |
617.485 |
573.390 |
2375.436 |
|
7 |
Profit/ Loss from
Ordinary Activities after Finance costs but Execeptional item |
(22.519) |
99.129 |
(421.100) |
|
8 |
Execeptional
item |
65.225 |
46.706 |
145.089 |
|
9 |
Profit/ Loss from Ordinary Activities
before tax |
(87.744) |
52.423 |
(566.189) |
|
10 |
Tax Expenses |
|
|
|
|
a) |
Current Tax |
-- |
-- |
-- |
|
b) |
MAT Credit
Entitlement |
-- |
-- |
(293.969) |
|
c) |
Deferred Tax
Charge/ Credit |
(32.933) |
(155.612) |
(188.545) |
|
11 |
Net Profit/ Loss from Ordinary Activities
after tax |
(54.811) |
208.035 |
(83.675) |
|
10 |
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
1234.995 |
1234.995 |
1234.995 |
|
11 |
Reserves
excluding revaluation reserves (as per last audited balance sheet) |
|
|
|
|
12 |
Earnings per
share - Basic and diluted (of Rs. 10/- each) (not annualized) |
(0.44) |
1.68 |
(0.68) |
|
PART II SELECT INFORMATION
FOR THE QUARTER AND TWELVE MONTHS ENDED 31ST MARCH 2012 |
||||
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public
shareholding |
|
|
|
|
a) |
Number of
Shares |
52366115 |
52895128 |
52366115 |
|
b) |
Percentage of Shareholding |
42.40 |
42.83 |
42.40 |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
16946000 |
14286000 |
16946000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
23.82 |
20.23 |
23.82 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
13.72 |
11.57 |
13.72 |
|
|
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
|
- Number of
Shares |
54187421 |
56318408 |
54187421 |
|
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
76.18 |
79.77 |
76.18 |
|
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
43.88 |
45.60 |
43.88 |
|
|
Particulars |
Quarter Ended 31st
March 2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
15 |
|
|
Disposed of during the quarter |
15 |
|
|
Remaining unresolved at the end of the quarter |
-- |
NOTES:
(1) Standalone Statement of Assets and Liabilities
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
A. EQUITY AND LIABILITIES |
Unaudited |
Audited |
|
|
1.
Shareholders Funds |
|
|
|
|
a] Share Capital |
1234.995 |
1234.995 |
|
|
b] Reserves and Surplus |
5454.752 |
5173.652 |
|
|
Sub-total –
Shareholders’ funds |
6689.747 |
6408.647 |
|
|
|
|
|
|
|
2. Non-current Liabilities |
|
|
|
|
a] Long term Borrowings |
6431.564 |
7473.634 |
|
|
b] Deferred Tax Liabilities |
917.983 |
1471.301 |
|
|
c] Long term provisions |
50.869 |
42.313 |
|
|
Sub-total -
Non-current Liabilities |
7400.416 |
8987.248 |
|
|
|
|
|
|
|
3. Current Liabilities |
|
|
|
|
a] Short term Borrowings |
4444.640 |
4757.040 |
|
|
b] Trade Payables |
7399.675 |
5123.956 |
|
|
c] Other Current Liabilities |
5202.865 |
1600.655 |
|
|
d] Short Term Provision |
0.852 |
186.787 |
|
|
Sub-total - Current Liabilities |
17048.032 |
11668.438 |
|
|
TOTAL - EQUITY
AND LIABILITIES |
31138.195 |
27064.333 |
|
|
|
|
|
|
|
B ASSETS |
|
|
|
|
1. Non-current assets |
|
|
|
|
a] Fixed assets |
13601.182 |
13466.845 |
|
|
b] Non-current investment |
1043.875 |
2070.734 |
|
|
c] long Term loans and Advances |
812.576 |
609.911 |
|
|
d] Other non-current assets |
45.543 |
146.320 |
|
|
Sub-total – Non- current assets |
15503.176 |
16293.81 |
|
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
|
|
Current Investments |
260.013
|
0.000 |
|
|
Inventories |
8532.047
|
6577.903 |
|
|
Trade Receivables |
3000.754
|
2955.970 |
|
|
Cash & Bank Balances |
357.617
|
447.261 |
|
|
Short Term loans and advances |
2447.714
|
558.401 |
|
|
Other Current Assets |
1036.874
|
230.988 |
|
Sub-total – Current Assets |
15635.019
|
10770.523 |
|
|
|
|
|
|
|
TOTAL - ASSETS |
31138.195 |
27064.333 |
|
(2) The auditors of the Company have carried out a Limited Review of the Standalone Financial Results for the quarter ended 31st March 2012 in compliance with Clause 41 of the Listing Agreement. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 15th May 2012.
(3) The Company has entered into an agreement on 26th April 2012, with an investor for sale of its entire holding of 93,73,042 equity shares of Rs. 27.74 per share in one of its subsidiaries, namely Neepaz V Forge (India) Limited. The transfer of above shares will result in a net loss to the Company of Rs. 264.484 millions. Accordingly, the Company has provided for diminution in the value of such investments to the tune of Rs. 264.484 millions (included in other expenses above) in the current quarter’s financial results.
(4) Other income includes Rs. 546.195 millions being gain on sale of certain long-term investments to one of its Subsidiary Company.
(5) As in the previous quarter, the Company has recognized net deferred tax assets of Rs. 32.933 millions in the statement of profit and loss during the current quarter. Although the Company, in terms of the order of the Hon’ble High Court of Calcutta had utilized the securities premium account towards meeting the net deferred tax liability it he earlier years, yet based on a legal opinion, net deferred tax assets of Rs. 32.933 millions for the quarter ended 31st March 2012 (after adjusting deferred tax liability of Rs. 6.020 millions for the quarter) has been adjusted in the statement of profit and loss instead of securities premium account.
(6) The Auditors in their limited review report on the Company’s unaudited financial results for the quarter ended 31st December 2011 had drawn attention on quantification and recoverability of claims receivables of Rs. 245.000 millions accounted for by the company towards supply of inferior quality of raw materials by its vendors, pending acceptance by the concerned parties. The management is confident of realising the claims in due course.
(7) The financial results for the current quarter have been adversely affected due to steep and significant depreciation in the value of Indian Rupee against Foreign Currencies. Consequently, loss for the current quarter is higher by Rs. 65.225 millions (Rs.145.089 millions for the twelve months ended 31st March 2012) on account of net foreign exchange fluctuation on operating balances/ forward exchange contracts and the same has been considered as an exceptional item.
(8) As the
Company's business activity falls within a single primary business segment,
viz. "Iron and Steel Products", the disclosure requirements of
Accounting Standard - 17 "Segment Reporting", as notified by the
Companies (Accounting Standards) Rules 2006 (as amended) are not applicable.
(9) There are no
extraordinary items during the periods reported above.
(10) Prior Period
Figures have been regrouped/rearranged wherever necessary.
(11) The Company
has extended its current Accounting year from 12 months ended 31st March 2012
to 15 months ending 30th June 2012.
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. 56.29 |
|
|
1 |
Rs. 88.26 |
|
Euro |
1 |
Rs. 70.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
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 |
YES |
|
--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.