MIRA
INFORM REPORT
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Report Date : |
12.11.2012 |
IDENTIFICATION DETAILS
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Name : |
RATNAMANI METALS AND TUBES LIMITED |
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Registered
Office : |
17, Rajmugat Society, Naranpura Char Rasta, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
15.09.1983 |
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Com. Reg. No.: |
04-006460 |
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Capital
Investment / Paid-up Capital : |
Rs.92.831 millions |
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CIN No.: [Company Identification
No.] |
L70109GJ1983PLC006460 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMR01519A |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
The
company is engaged in manufacturing and marketing of Stainless Steel Tubes
and Pipes, Saw Pipes and Carbon Steel Tubes and Pipes. |
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No. of Employees
: |
12000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 21299000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having good track. It has achieved a healthy growth in
its revenue from operations and profits during 2012. It has strong
financial risk profile, marked by a robust networth. Trade relations
are reported as trustworthy. Business is active. Payments are reported to be regular and as
per commitments. The company can
be considered good 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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Source
: CIA |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
AA- (Long Term Rating) |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
May 11, 2012 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (Short Term Rating) |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
May 11, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
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Registered Office : |
17, Rajmugat Society, Naranpura Char Rasta, |
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Tel. No.: |
91-79-27415501/ 2/ 3/ 4 |
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Fax No.: |
91-79-27480999 |
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E-Mail : |
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Website : |
www.ratnamani.com |
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Mumbai Office : |
404-B
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Tel. No.: |
91-22-43334555 |
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Fax No.: |
91-22-43334575 |
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E-Mail : |
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Head Office / Factory 1: |
STAINLESS STEEL TUBES AND PIPES DIVISION Survey
No.769, Ahmedabad - Mehsana Highway, Village – Indrad, Near Chhatral GIDC,
Taluka – Kadi, District – Mehsana, Gujarat, India |
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Tel. No.: |
91-2764-232254/232263/233766 |
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Fax No.: |
91-2764-234105/233098 |
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E-Mail : |
info.sstp@ratnamani.com |
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Website : |
www.ratnamani.com |
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Factory 2: |
SAW PIPE DIVISION Plot
No.3306-3309, GIDC; Chhatral,Taluka – Kalol, District – Mehsana, |
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Tel. No.: |
91-2764-232234/233919/232409 |
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Fax No.: |
91-2764-233859 |
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Factory 3: |
Survey No.474,
Village – Bhimasar, Taluka – Anjar, District–Kutch, |
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Tel. No.: |
91-2836-285538/285539 |
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Fax No.: |
91-2836-285540 |
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Branch Office
: |
44, |
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Ratnamani Techno Casts Limited (RTCL) : |
Plot No.3310, GIDC Estate Chhatral, Phase IV, Ahmedabad –
Mehsana Highway, P.O. Chhatral, Taluka Kalol, District Gandhinagar – 382 729,
Gujarat, India |
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Tel. No.: |
91-2764-233327/ 234488 |
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Fax No.: |
91-2764-233165 |
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E-Mail : |
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Sales Office 1 :
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404-B, |
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Sales Office 2 :
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516, Ansal
Chamber, |
DIRECTORS
As on 31.03.2012
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Name : |
Mr. Prakash M. Sanghvi |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
Matriculation |
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Experience : |
35 Years |
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Date of Appointment : |
12.06.1989 |
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Name : |
Mr. Jayantilal M. Sanghvi |
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Designation : |
Whole-Time Director |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B.Com (FY) |
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Experience : |
32 Years |
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Date of Appointment : |
12.06.1989 |
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Name : |
Mr. Shantilal M. Sanghvi |
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Designation : |
Whole-Time Director |
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Date of Birth/Age : |
48 Years |
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Qualification : |
Under Graduate |
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Experience : |
30 Years |
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Date of Appointment : |
01.11.1998 |
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Name : |
Mr. Divyabhash Chandrakant Anjaria |
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Designation : |
Director |
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Date of Birth/ Age : |
66 Years |
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Qualification : |
PGDM (Finance) from IIM, Ahmedabad |
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Experience : |
20 years
experience with Citibank N. A. out of which 7 years in |
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Other
Directorship : |
1. 2. Gujarat
Narmada Valley Fertilisers Company Limited 3. Gujarat
International Finance Tec-city Company Limited 4. International
Financial Solutions Private Limited 5. Indian
Institute of Financial Services Private Limited 6. Gujarat
Techmarkets Private Limited |
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Name : |
Dr. Vinodkumar Mahavirprasad Agrawal |
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Designation : |
Director |
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Date of Birth/ Age : |
65 Years |
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Qualification : |
MBBS |
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Experience : |
Renowned doctor in practice since last 40 years |
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Name : |
Mr.
Pravinchandra M. Mehta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Virag Y. Joshi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of
Shareholder |
No. of Shares |
Percentage of
holding |
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(A) Shareholding of Promoter and Promoter Group |
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27791073 |
59.87 |
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27791073 |
59.87 |
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Total shareholding of Promoter and Promoter Group (A) |
27791073 |
59.87 |
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(B) Public Shareholding |
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|
594128 |
1.28 |
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|
330 |
0.00 |
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5540672 |
11.94 |
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6135130 |
13.22 |
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|
1067750 |
2.30 |
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3900942 |
8.40 |
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7065216 |
15.22 |
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|
455498 |
0.98 |
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394464 |
0.85 |
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56481 |
0.12 |
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4553 |
0.01 |
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12489406 |
26.91 |
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Total Public shareholding (B) |
18624536 |
40.13 |
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Total (A)+(B) |
46415609 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
46415609 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
The
company is engaged in manufacturing and marketing of Stainless Steel Tubes
and Pipes, Saw Pipes and Carbon Steel Tubes and Pipes. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011):-
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Stainless Steel Tubes and Pipes |
MT |
21900 |
12103 |
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Carbon
Steel Pipes |
MT |
350000 |
85695 |
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Coated
Pipes |
000
Sq. Mtrs |
1650 |
123 |
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Generation of Power using
Windmills (other than for captive consumption) |
‘000 Units |
27300 |
15644 |
GENERAL INFORMATION
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No. of Employees : |
12000 (approximately) |
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Bankers : |
v
Dena
Bank v
Punjab
National Bank v
State
Bank of v
IDBI
Bank Limited v
ICICI
Bank Limited |
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Facilities : |
Notes: LONG TERM
BORROWING – External
(Foreign) Commercial Borrowing of Rs.355.879 millions (P.Y. Rs.385.100 millions) from ICICI Bank
Limited Hong Kong branch is carrying interest for the first seven years @ 3M
Libor + 1.52% p.a., eighth year @ 3M Libor + 2.04% p.a., ninth year @ 3M
Libor + 2.54% p.a. The loan is repayable in 32 quarterly installments of USD
406250.00 each from 22.07.2008. The loan is secured by an exclusive charge
over all the 8 windmills along with related equipments / machineries situated
at Moti Sindholi, Kutch, – External
(Foreign) Commercial Borrowing of Rs.343.533 millions (P.Y. Rs.361.120 millions) from ICICI Bank
Limited Hong Kong branch is carrying interest @ 6M Libor + 4.52% p.a. The
loan is repayable in 12 half yearly installments of USD 666666.67 each from
22.07.2011. The loan is
secured by an exclusive charge over movable assets in respect of 3 Layer PE
Coating Line and Offline Welding and Finishing Lines for HSAW plant situated
at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch. – External
(Foreign) Commercial Borrowing of Rs. Nil (P.Y. Rs.23.699 millions) from ICICI Bank (UK)
Limited was carrying interest @ 3M Libor + 1.25% p.a. The loan was repayable
in 16 quarterly installments of USD 175000.00 each from 15.03.2007. The loan
was secured by first charge on the Company's entire immovable and movable
properties situated at Survey Nos.769, 780 and 787, Village Indrad, Chhatral,
Taluka Kadi, District Mehsana and Survey No. 474, Village Bhimasar, Tal.
Anjar, District SHORT TERM
BORROWINGS Working Capital
Loans are secured by - i) Hypothecation of Inventories, Books Debts, all
other movables; ii) Second charge on Fixed Assets of the Company except, a) 8
wind mills along with related equipments/ machineries situated at Moti
Sindholi, Kutch, Gujarat and, b) movable assets in respect of 3Layer PE
Coating Line and Offline Welding and Finishing Lines for HSAW plant situated
at Survey No. 474, Village Bhimasar, Taluka Anjar, District Kutch; iii)
Personal guarantees of Sh. P. M. Sanghvi, Chairman and Managing Director, Sh.
J.M. Sanghvi, Whole-time Director and Sh. S.M. Sanghvi, Whole-time Director,
of the Company; iv) Joint equitable mortgage of all immovable properties held
as free-hold and leasehold lands of the Company, except leasehold land
related to 8 wind mills situated at Moti Sindholi, Kutch and 3Layer PE
Coating Line and Offline Welding and Finishing Lines for HSAW plant situated
at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch. Additional
working capital loans in form of Buyer's Credits in Foreign Currencies of
Rs.347.065 millions (P.Y. Rs.844.948
millions) from ICICI Bank Limited are secured by i) Hypothecation of
Inventories, Books debts, all other movables by way of subservient charge.
ii) Personal guarantee of Sh. P.M. Sanghvi, Chairman and Managing Director of
the Company. Other Loans and
Advances from banks payable on demand are secured by personal guarantee of
Sh. P.M. Sanghvi, Chairman and Managing Director of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1 : |
Mehta Lodha and Company Chartered Accountants |
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Address : |
63, Hirabhai Market, |
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Name 2 : |
S.R. Batliboi and Associates Chartered Accountants |
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Address : |
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Cost Auditors : |
N.D. Birla and Company Cost Accountants |
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Enterprises
owned or significantly influenced by key management personnel or their
relatives : |
v
Ratnamani
Food Products Private Limited v
Ratnamani
Marketing Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity Shares |
Rs.2/- each |
Rs.150.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
46415609 |
Equity Shares |
Rs.2/- each |
Rs.92.831 millions |
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|
Reconciliation of the
Equity Shares outstanding at the beginning and at the end of the reporting
period
|
|
(Rs.
in millions) |
|
At the beginning of the year |
92.750 |
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Add: Issued during the year- ESOS |
0.081 |
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Outstanding at
the end of the year |
92.831 |
|
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|
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At the beginning of the year |
46374959 |
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Add: Shares issued on exercise of Employee Stock Options |
40650 |
|
Equity Shares at
the end of the year |
46415609 |
Terms/Rights
attached to Equity Shares
– The Company has
only one class of Equity Shares having a par value of Rs.2/- per share. Each
holder of Equity Shares is entitled to one vote per share. The Company declares
and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors
is subject to approval of the Shareholders at the ensuing Annual General
Meeting. In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts.
The distribution will be in proportion to the number of Equity Shares
held by Share holders.
Details of
Shareholders holding more than 5% Equity Shares in the Company
|
Name of the
Shareholder |
No.
of Shares |
%
held |
|
Nalanda India Equity Fund Limited |
3906664 |
8.42% |
|
Prakash M. Sanghvi |
3111668 |
6.70% |
|
Jayanti M. Sanghvi |
2506435 |
5.40% |
Shares Reserved
for issue under option
The Company reserved
issuance of 2250000 Equity Shares of Rs.2/- each for offering to eligible
employees of the Company under Employees Stock Option Scheme 2006 at a price of
Rs.59.40 per option plus all applicable taxes, as may be levied in this regard
on the Company. The options were granted on 31st October, 2006 and have vested
completely. Out of the reserved Equity Shares, 1415609 Equity Shares have been
issued till date. The maximum exercise period is 8 years from the date of grant
of options.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
92.831 |
92.750 |
91.887 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5232.024 |
4277.107 |
3524.771 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5324.855 |
4369.857 |
3616.658 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1657.579 |
1815.575 |
2704.994 |
|
|
2] Unsecured Loans |
1087.784 |
580.500 |
496.471 |
|
|
TOTAL BORROWING |
2745.363 |
2396.075 |
3201.465 |
|
|
DEFERRED TAX LIABILITIES |
356.642 |
536.819 |
580.940 |
|
|
Employee Stock options outstanding |
0.000 |
0.000 |
30.575 |
|
|
|
|
|
|
|
|
TOTAL |
8426.860 |
7302.751 |
7429.638 |
|
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|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3667.786 |
3486.210 |
3599.396 |
|
|
Capital work-in-progress |
283.296 |
121.789 |
29.712 |
|
|
|
|
|
|
|
|
INVESTMENT |
65.128 |
70.087 |
500.493 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2838.061
|
3518.056
|
1675.677
|
|
|
Sundry Debtors |
2288.886
|
1747.180
|
1663.088
|
|
|
Cash & Bank
Balances |
706.911
|
474.123
|
243.016
|
|
|
Other Current
Assets |
22.374
|
0.323
|
0.000
|
|
|
Loans &
Advances |
271.383
|
532.850
|
814.253
|
|
Total
Current Assets |
6127.615
|
6272.532
|
4396.034
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
955.126
|
1978.949
|
739.947
|
|
|
Other Current
Liabilities |
549.192
|
514.516
|
135.020
|
|
|
Provisions |
212.647
|
154.402
|
221.030
|
|
Total
Current Liabilities |
1716.965
|
2647.867
|
1095.997
|
|
|
Net Current Assets |
4410.650
|
3624.665
|
3300.037
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8426.860 |
7302.751 |
7429.638 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from
Operations (net) |
12217.402 |
8136.728 |
8519.509 |
|
|
|
Other Income |
58.339 |
226.568 |
14.829 |
|
|
|
TOTAL (A) |
12275.741 |
8363.296 |
8534.338 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
7862.393 |
|
6844.271 |
|
|
|
Purchase of Stock-in-trade |
34.985 |
156.025 |
|
|
|
|
Changes in Inventories of Finished Goods, Work-in-Process |
47.811 |
(455.105) |
|
|
|
|
Employee Benefits Expense |
567.471 |
492.583 |
|
|
|
|
Other Expenses |
1654.008 |
877.399 |
|
|
|
|
TOTAL (B) |
10166.668 |
6651.920 |
6844.271 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2109.073 |
1711.376 |
1690.067 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
292.547 |
184.479 |
17.498 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1816.526 |
1526.897 |
1672.569 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
424.915 |
399.946 |
368.823 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1391.611 |
1126.951 |
1303.746 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
277.192 |
295.216 |
489.475 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1114.419 |
831.735 |
814.271 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
718.735 |
521.746 |
325.729 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
500.000 |
500.000 |
|
|
|
Proposed Dividend with dividend tax |
161.836 |
134.746 |
118.254 |
|
|
BALANCE CARRIED
TO THE B/S |
1171.318 |
718.735 |
521.746 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN EXCHANGE |
|
|
|
|
|
|
|
Export at F.O.B. value |
2885.870 |
500.079 |
666.038 |
|
|
TOTAL EXPORTS |
2885.870 |
500.079 |
666.038 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3257.849 |
4507.351 |
3267.929 |
|
|
|
Components and Spare Parts |
50.892 |
15.809 |
106.741 |
|
|
|
Capital Goods |
216.386 |
214.559 |
85.081 |
|
|
TOTAL IMPORTS |
3525.127 |
4737.719 |
3459.751 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
24.02 |
17.98 |
18.00 |
|
|
|
- Diluted |
23.90 |
17.89 |
17.95 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 (1st
Quarter) |
30.09.2012 (2nd
Quarter) |
|
Net Sales |
|
2822.850 |
3017.840 |
|
Total Expenditure |
|
2349.880 |
2426.270 |
|
PBIDT (Excl OI) |
|
472.970 |
591.570 |
|
Other Income |
|
29.240 |
206.290 |
|
Operating Profit |
|
502.210 |
797.860 |
|
Interest |
|
99.250 |
31.880 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
402.960 |
765.980 |
|
Depreciation |
|
101.310 |
101.610 |
|
Profit Before Tax |
|
301.650 |
664.370 |
|
Tax |
|
98.220 |
219.590 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
203.430 |
444.780 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
203.430 |
444.780 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.07
|
9.95 |
9.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.39
|
13.85 |
15.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.21
|
11.55 |
16.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.25 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.84
|
0.61 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.57
|
2.37 |
4.01 |
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) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
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 (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
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 |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
REVIEW OF
OPERATIONS
General
The financial year 2011-12 has been challenging for the Indian economy.
It witnessed a slowdown due to weak industrial activity coupled with a
contraction in investments. Factors such as persistent and high inflation,
monetary tightening, expansion of trade deficits, weakening of the rupee,
negative global developments and domestic political uncertainty have also
contributed to it. There has been slowdown in the advanced economies as well.
Despite of the challenges, the company has outperformed during the year and
posted encouraging results. The performance had established a new milestone for
the Company. The Company's efforts for all round improvement helped in
increasing the profitability.
Financial
Performance
The Company could achieve revenue from operations of Rs.12217.400
millions with a PBT of Rs.1391.600 millions and PAT before prior period item of
Rs.943.100 millions during the year as compared to revenue from operations of
Rs.8136.700 millions with a PBT of Rs.1127.000 millions and PAT before prior
period item of Rs.821.100 millions during the previous financial year. The Net
Profit post addition of prior period item is Rs.1114.400 millions for the year
as compared to Rs.831.700 millions during the previous financial year.
Operations
The Company’s products enjoy applications in various industries
including oil and gas explorations, refineries and petrochemicals, power
industries i.e. thermal, nuclear and solar power plants, chemical, fertiliser,
desalination, aerospace and atomic energy, water and sewerage, paper and pulp
industries, etc. During the year, there has been good demand for both stainless
steel tubes and pipes as well as carbon steel pipes from various sectors
resulted into optimum utilisation of capacities and robust performance during
the year.
MANAGEMENT DISCUSSION AND ANALYSIS
Global economy
The global economy contracted in 2009 and recovered in 2010 even as
there was financial uncertainty in the Euro zone, slower recovery in advanced
economies, high unemployment, tightening credit and rising risk premia. While
most businesses in mature markets focused on cost savings, investment sentiment
remained better in emerging economies. The global economy is forecast to expand
by around 4% in 2012, growth being driven by emerging markets.
Indian economy
The manufacturing sector remained volatile with seven out of the 22
industry groups responding negative growth during April-February 2011-12. The
services sector increased its GDP share from 58% in 2010-11 to 59% in 2011-12.
Global steel tubes
and pipes
The performance of the steel pipes and tubes industry are intertwined
with the performance of the construction, oil and gas and infrastructure
sectors. The increasing energy security investments of global governments are
likely to catalyse the demand for steel pipes. Driven by increased activity in
the oil and gas and construction sectors and the rise in infrastructure
development projects, the global demand for steel tubes and pipes is forecast
to reach 151 million tonnes by 2017.
Indian steel tubes
and pipes
Stainless steel: In 2010, the
Indian stainless steel melt production reached 2.9 million tonnes and finished
products touched 2.6 million tonnes. The volume of production was 162 times
higher than in 1978, 13 times higher than in 1990 and almost three times higher
than in 2000.
Carbon steel: In
Sector optimism
Oil and gas:
The demand for petroleum products is projected to cross 300 million
tones of oil equivalent (mtoe) by 2017, up from the present 175 mtoe.
Gas pipeline infrastructure: Currently,
Refineries:
2010-11. Fuel demand is projected to rise by four to five per cent per
annum in the Twelfth Five Year Plan (2012- 2017). With
Pharmaceuticals: The Indian
pharmaceutical market has grown at a CAGR of 15% over the past five years and
is expected to reach USD 20 billion by 2015. The Indian pharma industry has
grown at an average of 15-18% for the last couple of years, while MNCs have
grown only at about 8-12%. With strong growth in domestic and US formulation
segments, the sector is expected to witness healthy growth.
Power:
Fertiliser: After a 7.6%
contraction in 2008-09, global fertiliser consumption started to recover
(+5.4%) in 2009/10, reaching 163.9
Sugar:
Aerospace: Massive
investments in airport infrastructure have led to world class airports, the
symbol of
Atomic energy: With the prospect
of conventional energy sources diminishing drastically in the next two decades,
nuclear energy is gaining ground as a viable energy source.
BUSINESS DIVISION
1
Overview
The Company’s SS division comprises two main products – seamless and
welded tubes and pipes. The Company is one of the largest SS tube and pipe
manufacturers in
Highlights,
2011-12
The Company emerged as the only Indian company approved by Nuclear Power
Corporation of India Limited for the manufacture of the critical heat exchanger
and instrumentation tubes used in nuclear reactors.
Product strengths
v
High tensile strength
v
High corrosion resistance
v
Light weight
v
Wide range of sizes
v
Quality surface (inside and outside)
Facilities
Process facilities: Ratnamani invested in the best imported equipment
and testing facilities. The Company is among few global manufacturers with a
hot extrusion facility, empowering the Company to manufacture tubes and pipes
of higher outer diameter and harder tube finish.
Critical
applications
Power generation: The Company
possesses the competence to manufacture low-pressure feed water tubes, high
pressure feed water tubes and condenser tubes in welded and seamless
construction. It can manufacture tubes upto 36 metres single length in a bright
annealed condition across grades.
Desalination
plants: The Company specialises in the manufacture of ferratic grade tubes. Oil
and gas: The Company’s instrumentation tubes in bright annealed condition are
used in the oil and gas and nuclear sectors.
Road ahead
v
Focus on value-added products of higher grades,
catering to niche and critical applications.
v
Lay the foundation for cold finishing line
expansion in Indrad and
v
Ensure higher value engineering
v
Replace manual tube loading with automation leading
to increased productivity
v
Increase share in the markets of presence
v
Increase product range in high-end application
requirements
BUSINESS DIVISION
2
CARBON STEEL PIPES
Overview
This division specialises in the manufacture of carbon steel pipes. The
division makes submerged arc welded (SAW) and high-frequency electricresistant
welded (ERW) pipes. The division also manufactures API 5L up to X 80 grade
pipes or their equivalent.
Over the years, the Company strengthened its value proposition through
superior quality, the ability to cater to wide sectoral requirements and the
graduation from line piping to projects piping. The Company strengthened its
performance through a higher order booking and a corresponding increase in
capacity utilisation.
Highlights,
2011-12
v
Manufactured alloy steel pipes of ASTM-A6 91
quality for the first ever time
v
Executed a 200 km pipeline order for a client
v
Increased ERW pipe yield by modifying the welder
and coil feeding unit
v
Added clients for 64”x19.1” SAW pipe of X-70 grade
Product strengths
v
Applicable across a number of downstream sectors
v
High tolerance level
v
Mechanically and technically tested
Road ahead
v
Generate additional revenues through the
manufacture of ERW pipes (18” diameter)
v
Increase productivity
v
Expand the domestic and global presence
BUSINESS DRIVER 1
INTELLECTUAL CAPITAL
Overview
In a business where the competitive edge is derived from the ability to
make a superior product, the strength of the Company lies in the quality of its
people. The Company’s employee base comprises people with the desired
competence.
Key initiatives
At Ratnamani, we inculcate a sense of teamwork and belonging among their
employees through the initiatives:
v
The Company organised various events at multiple
locations to facilitate employee engagement
v
The Company established a system with streamlined
talent requisition, sourcing methodologies with a clear focus on the talent
needs vis-ŕ-vis business
v
The Company reintroduced Employees Performance
Management System facilitating an alignment of functions towards meeting the
Company’s goals
v
The Company strengthened training and induction
around business and functional orientation through specialised faculty
v
The Company implemented steps to enhance the
welfare and motivation of team members, including helping survivors of the
deceased.
Outlook
The Company is on the verge of an integration of the HR function through
an online system.
BUSINESS DRIVER 2
INFORMATION TECHNOLOGY
Overview
In a business where success is derived from informed decision-making,
the strength of the Company lies in its ability to draw information from
various sources and provide it on tap for onward planning, reconciliation,
visibility and strategic accuracy. The Company kept itself abreast with
prevailing business requirements and accordingly aligned its IT environment.
BUSINESS DRIVER 3
RAW MATERIAL MANAGEMENT
Overview
In a business where a commoditised raw material needs to be adequately
available and comprehensively enriched to manufacture a specialized end
product, success is derived from the ability to manage this input in a
consistent manner for predictable results.
At Ratnamani, their supply chain sources adequate raw material of the
right quality at the lowest possible cost with the objective to keep its
production lines running at all times.
Highlights,
2011-12
v
The Company sources raw material from some of the
largest and most respected carbon steel and stainless steel manufacturers
globally
v
The Company is engaged in relevant
value-engineering to strengthen the input-output ratio and reduce waste
v
The Company eliminated non valueadding processes,
reduced processes and material costs
v
The Company’s just-in-time sourcing reduced
material accumulation
BUSINESS DRIVER 4
QUALITY AND TESTING
Overview
In a business where the end product is manufactured in large quantities,
success is derived from the ability to ensure that a high quality is consistent
from batch to batch in line with precise customer needs.
At Ratnamani, a high quality consistency is derived from its
comprehensive quality and testing discipline without interrupting
production/sales flow. Over the years, the Company invested in stringent
testing procedures benchmarked with international standards, progressively
raised the bar and complied with a number of process certifications.
Key initiatives,
2011-12
v
The Company strengthened the nondestructive testing
process to ascertain pipe cracks, pin holes, dents and laminations
v
The Company manufactured alloy steel pipes adhering
to the ASTMAS-91 quality grade
v
The Company streamlined quality checks, reducing
rework to less than one per cent
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
a) Bills discounted and not matured |
17.876 |
146.070 |
|
b) ESI Liability (excluding interest leviable, if any) |
19.686 |
17.525 |
|
c) Consolidated Tax payable to GIDC, Chhatral |
1.783 |
2.493 |
|
d) Disputed
Statutory Claims/levies for which the Company has preferred appeal in respect
of (excluding interest leviable, if any) : |
|
|
|
- Income tax |
-- |
8.155 |
|
- Excise Duty |
185.146 |
180.423 |
|
- Central Sales Tax |
-- |
3.218 |
UNAUDITED FINANCIAL RESULTS
FOR THE 2ND QUARTER ENDED ON 30TH SEPTEMBER, 2012
(Rs.
in millions)
|
Particulars |
Quarter Ended |
|
Half Year Ended |
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1. Income from
Operations |
|
|
|
|
Net Sales/Income
from Operations (Net of Excise Duty) |
3017.841 |
2822.853 |
5840.694 |
|
2. Expenses |
|
|
|
|
a) Cost of
Materials Consumed |
1607.575 |
1901.941 |
3509.516 |
|
b) Purchases of
Stock-in-trade |
18.436 |
10.358 |
28.794 |
|
c) Change in
inventories of Finished Goods, work-in-progress and stock-in-trade |
185.447 |
(193.520) |
(8.073) |
|
d) Employee
benefit expenses |
203.965 |
151.186 |
355.151 |
|
e) Depreciation
and amortisation expenses |
101.609 |
101.312 |
202.921 |
|
f) Other
Expenditure |
410.854 |
356.211 |
767.065 |
|
g) Foreign
Exchange (Gain)/Loss |
(158.863) |
134.375 |
(24.488) |
|
Total expenses |
2369.023 |
2461.863 |
4830.886 |
|
3. Profit from Operations
before Other Income, finance cost and Exceptional Items (1-2) |
648.818 |
360.990 |
1009.808 |
|
4. Other Income |
47.427 |
29.241 |
76.668 |
|
5. Profit from
Ordinary activities before finance cost and Exceptional Items (3+4) |
696.245 |
390.231 |
1086.476 |
|
6. Finance cost |
31.879 |
88.578 |
120.457 |
|
7. Profit from
Ordinary activities after finance cost but before Exceptional Items (5-6) |
664.366 |
301.653 |
966.019 |
|
8. Exceptional
Items |
-- |
-- |
-- |
|
9. Profit from Ordinary
Activities before Tax (7-8) |
664.366 |
301.653 |
966.019 |
|
10. Tax Expenses
|
219.587 |
98.219 |
317.806 |
|
11. Net Profit
from Ordinary Activities after tax (9-10) |
444.779 |
203.434 |
648.213 |
|
12. Prior period
items |
-- |
-- |
-- |
|
13. Net Profit
from Ordinary Activities (11-12) |
444.779 |
203.434 |
648.213 |
|
14. Paid up
Equity Share Capital Face Value Rs.2/-
per share |
92.831 |
92.831 |
92.831 |
|
15. Reserves excluding
Revaluation Reserve (as per Balance Sheet of previous accounting year) |
-- |
-- |
-- |
|
16. Earnings per
Share (EPS) before and after Extraordinary Items for the period and for the
previous year (in Rs., Not
annualised) |
|
|
|
|
Basic |
9.58 |
4.38 |
13.97 |
|
Diluted |
9.53 |
4.36 |
13.89 |
|
PART-II |
|
|
|
|
A PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. Public
Shareholding |
|
|
|
|
Number of Shares
|
18624536 |
18819536 |
18624536 |
|
Percentage of
Shareholding |
40.13% |
40.55% |
40.13% |
|
2. Promoters and
Promoter Group Shareholding |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
Number of Shares
|
400000 |
400000 |
400000 |
|
Percentage of
Shares (as a % of the total shareholding of Promoter and Promoter Group) |
1.44% |
1.45% |
1.44% |
|
Percentage of
Shares (as a % of the total share capital of the Company) |
0.86% |
0.86% |
0.86% |
|
b)
Non-Encumbered |
|
|
|
|
Number of Shares
|
27391073 |
27196073 |
27391073 |
|
Percentage of Shares
(as a % of the total shareholding of Promoter and Promoter Group) |
98.56% |
98.55% |
98.56% |
|
Percentage of
Shares (as a % of the total share capital of the Company) |
59.01% |
58.59% |
59.01% |
|
B INVESTORS
COMPLAINTS |
|
|
Pending at the
beginning of the quarter |
-- |
|
Received during
the quarter |
1 |
|
Disposed of
during the quarter |
1 |
|
Remaining
unresolved at the end of the quarter |
-- |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE 2ND
QUARTER ENDED ON 30TH SEPTEMBER, 2012
(Rs.
in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1. Segment Revenue |
|
|
|
|
a. Steel Tubes
and Pipes |
2965.315 |
2772.000 |
5737.315 |
|
b. Windmills |
52.526 |
50.853 |
103.379 |
|
Total |
3017.841 |
2822.853 |
5840.694 |
|
Less:- Inter segment
Revenue |
-- |
-- |
-- |
|
Net Sales /
Income from Operations |
3017.841 |
2822.853 |
5840.694 |
|
|
|
|
|
|
2. Segment Results (Profit before Interest and
Tax) |
|
|
|
|
a. Steel Tubes
and Pipes |
625.747 |
331.264 |
1015.015 |
|
b. Windmills |
28.278 |
29.726 |
71.461 |
|
Total |
654.025 |
360.990 |
1086.476 |
|
Add:- Interest
& Dividend Income |
42.220 |
29.241 |
71.461 |
|
Less:- Interest
& Finance charges |
31.879 |
88.578 |
120.457 |
|
Profit before
tax |
664.366 |
301.653 |
966.019 |
|
3. Capital Employed (Segment Assets - Segment
Liabilities) |
|
|
|
|
a. Steel Tubes
and Pipes |
5976.238 |
6485.438 |
5976.238 |
|
b. Windmills |
765.217 |
820.856 |
765.217 |
|
c. Unallocable |
(768.387) |
(1778.005) |
(768.387) |
|
Total |
5973.068 |
5528.289 |
5973.068 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs.
in millions)
|
Particulars |
30.09.2012 (Unaudited) |
|
A. EQUITY
AND LIABILITIES |
|
|
1. Shareholders'
Funds |
|
|
Share Capital |
92.831 |
|
Reserves and
Surplus |
5880.237 |
|
Sub-total shareholders fund |
5973.068 |
|
|
|
|
2. Non-current
Liabilities |
|
|
Long-term
Borrowings |
485.365 |
|
Deferred Tax
Liabilities (net) |
355.009 |
|
Sub-total Non-current liabilities |
840.374 |
|
|
|
|
3. Current
Liabilities |
|
|
Short-term
Borrowings |
1367.520 |
|
Trade Payables |
1315.175 |
|
Other Current
Liabilities |
998.634 |
|
Short-term
Provisions |
173.272 |
|
Sub-total - Current liabilities |
3854.601 |
|
|
|
|
TOTAL EQUITY AND
LIABILITIES |
10668.043 |
|
|
|
|
B. ASSETS |
|
|
1. Non-current
Assets |
|
|
Fixed Assets |
4015.335 |
|
Non-current
Investments |
0.084 |
|
Loans and
Advances |
75.527 |
|
Sub-total Non-current assets |
4090.946 |
|
|
|
|
2. Current
Assets |
|
|
Current
Investments |
1246.108 |
|
Inventories |
2531.682 |
|
Trade
Receivables |
2007.718 |
|
Cash and Bank
Balances |
230.700 |
|
Short-term Loans
and Advances |
533.733 |
|
Other Current
Assets |
27.156 |
|
Sub-total Current assets |
6577.097 |
|
|
|
|
TOTAL ASSETS |
10668.043 |
Notes:
1. The aforesaid results,
as reviewed by the Audit Committee, were approved by the Board of Directors in
its meeting held on 1st November, 2012.
2. The Statutory
Auditors have carried out limited review of the above financial results.
3. Figures of previous
periods have been regrouped, wherever considered necessary to make them
comparable.
FIXED
ASSETS:
Tangible Assets
v
v
v Buildings
v Plant and Machinery
v Furniture and Fixtures
v Office Equipments
v Vehicles
Intangible Assets
v Software
WEBSITE DETAILS
MILESTONES
1985
Commenced production of Stainless Steel
Welded Pipes and Seamless Tubes, as a twin small-scale units.
1991
Established facilities for manufacturing
Stainless Steel Electric Fusion Welded [EFW] Pipes.
1993
Listed on Mumbai (BSE) and Ahmedabad Stock
Exchange (ASE)
1995
Commenced production of Submerged Arc
Welded [SAW] Pipes
1997
Received API 5L Monogramming License
1999
Commenced production of Stainless Steel
Tubes for Automobile Exhaust Systems.
2000
First
2001
Quality Management System accredited to
ISO 9002 Under Lloyd’s Register Quality Assurance (LRQA).
Addition of API 2B Monogramming License
2002
AD 2000 - Merkblatt W 0 Certification
Under RWTUV
Recognition as a well known Tube / Pipe
Maker Under IBR
2003
- Pressure Equipment Directive [PED]
Certification Under LRQA
- Approval from Nuclear Power Corporation of
India Limited for the Supply of Critical Instrumentation Seamless Tubes
and Primary Piping for Nuclear Reactors
- Up-gradation of ISO 9002 Certification to ISO
9001-2000 under LRQA
2004
- Delivered Duplex Stainless Steel Seamless
Tubes as per SA 789 / UNS 31803 and UNS 32205
- Officially Implemented Safety, Health and
Environment Policy [SHE]
- Enhancement of Current Capacity by
establishing new manufacturing facilities @ Kutch,
2005
Commenced manufacturing of Welded Cold
Drawn Duplex Steel Tubes as per SA 789 / UNS 31803 and UNS 32205.
BOARD OF DIRECTORS:
Ratnamani has a board comprising of eminent individuals from diverse
fields. The board acts with autonomy and independence in exercising strategic
supervision, discharging its fiduciary responsibilities, and in ensuring that
the management observes the highest standards of ethics, transparency and
disclosure.
Their Directors are experts in the diversified fields of engineering,
human resource development, business strategy, finance and economics. They
review all information relating to significant business decisions, including
strategic and regulatory matters. Every member of the board, including the
non-executive directors, has full access to any information related to the
company.
Mr. Prakash Sanghvi - Chairman and Managing Director
Mr. Prakash Sanghvi has vast business experience in the metal industry.
He leads the core team that is driving the company's growth and transformation
from a company predominantly selling Tubes and Pipes to achieving its vision of
becoming a technology-led global engineering company.
Mr. Sanghvi has played a vital role in the company's evolution. He has
been the architect of the company's projects and expansion strategy. He has
helped create new platforms of growth for Ratnamani increasing shareholder and
societal value while decreasing the company's environmental footprint.
Mr. Jayanti Sanghvi - Whole Time Director
Mr. Jayanti Sanghvi is one of the key members of the core team
responsible for creation and setting up of Development Centres, Resources,
Staffing and Training, Facilities and Infrastructure Management and
Administration.
Mr. Jayanti Sanghvi is constantly focused on process improvements for
enhancing productivity.
Mr. Shanti Sanghvi - Whole Time Director
Mr. Shanti Sanghvi is a thought leader on marketing strategy and
customer related issues in
Mr. D C Anjaria – Director
Mr. Anjaria is an independent non-executive Director on the Board of the
company having stupendous experience in the field of international finance and
corporate finance. Mr. Anjaria is an MBA from IIM, Ahmedabad and has worked
with Citibank and UTI.
Dr. Vinodkumar Agrawal - Director
He is an independent non-Executive Director on the Board of the Company.
Mr. P M Mehta - Director
Mr. Mehta is an independent non-Executive Director on the Board of the
Company. He is Mechanical Engineer by qualification, has mammoth experience in
engineering industry, having spent his entire career in the leading engineering
corporate. M/s Larsen and Toubro. He was an Executive Director on Board of
Larsen and Toubro. At the time of his retirement, he was in-charge of nine
different business units located all over the country. He is extensively
experienced in the area of modern technologies, and international businesses.
At the helm of the entire operations is the experience and able
direction of the people who make it all happen. Ratnamani acknowledges their
inspiring stewardship and indefatigable work.
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 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.54.34 |
|
|
1 |
Rs.86.97 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.