|
Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
RASHTRIYA ISPAT
NIGAM LIMITED |
|
|
|
|
Registered Office : |
Administrative
Building, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
18.02.1982 |
|
|
|
|
Com. Reg. No.: |
01-003404 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.78273.200 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27109AP1982GOI003404 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
VPNR00283D /
VPNR00392A / VPNR00010D / VPNR00393B / VPNR00389E |
|
|
|
|
Legal Form : |
Public Limited Liability
Company. The company’s entire capital is held by Government of India |
|
|
|
|
Line of Business : |
Manufacturing and
Marketing of steel products |
|
|
|
|
No. of Employees : |
17829
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 530000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a government of The company can be considered good for normal 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Debt Programme) |
|
Rating Explanation |
Having adequate degree of safety regarding
timely servicing of financial obligation it carry low credit risk. |
|
Date |
October 2011 |
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.
INFORMATION DENIED
Management non Co-operative (91-891-2518325)
LOCATIONS
|
Registered
Office : |
Administrative
Building, Vishakhapatnam – 530 031, |
|
Tel. No.: |
91-891-2518325/
538/ 2888360/ 390/ 2888247/ 2518360 |
|
Fax No.: |
91-891-2518753/
756/ 2888316/ 2518321 |
|
E-Mail : |
|
|
Website |
|
|
Area: |
22685 sq. m. |
|
Location: |
Owned |
|
|
|
|
Regional
Office1 : |
1, |
|
|
|
|
Regional
Office 2 : |
101, Free Press
House, Nariman Point, Mumbai - 400 021, |
|
|
|
|
Regional
Office 3 : |
184, Anna Salai,
Chennai - 600 006, |
|
|
|
|
Regional Office
4 : |
15, |
|
|
|
|
Factory 1 : |
Vishakhapatnam,
District Vishakhapatnam, |
|
|
|
|
Factory 2 : |
Jaggayyapeta,
District Krishna, |
|
|
|
|
Factory 3 : |
Madharam,
District Khamman, |
|
|
|
|
Guest House: |
1, |
|
Tel. No.: |
91-33-2242 2856 /
2242 1968 / 2334 4034 (Res.) |
|
Fax No.: |
91-33-2242 7896 |
|
|
|
|
Guest House: |
Khanji Bhavan,
10-3-311/A, Masab Tank, Ground Floor, |
|
Tel. No.: |
91-40-2353 5167 /
6267 / 2406 9207 (Res.) |
|
Fax No.: |
91-40-2353 2167 |
|
|
|
|
Northern
Region : |
·
6TH Floor, Prakash Deep Building 7,
Tolstoy Marg, New Delhi - 110 001, India ·
Block No.38/4-B, F-10 and 11, Near
Punjab and Sind Bank, Friends Centre, Sanjay Place, Agra - 282 002, Delhi,
India ·
117/L/452,Channi House, 1st
Floor, Naveen Nagar, Near Double Pullia, Kanpur - 208 025, Uttar Pardesh,
India ·
S.C.O.No.141-142, 2nd Floor, Sector
8-C, Chandigarh - 160 018, Punjab, India ·
SCO-3, 1st Floor, HUDA
Complex,Sec-19, Mathura Road(NH-2), Faridabad - 121 001, Haryana, India ·
B-5, RDC, Shri Ravi Shankar Plaza, Rajnagar,
Ghaziabad - 201 001 (Uttar Pradesh), India ·
Meghalaya Towers, 3rd Floor,
Opposite All Saint Church, C-300,
Sansarvilla, MI Road, Jaipur - 302 001, Rajasthan, India ·
Master Chambers, 5th Floor, 19, Firoz
Gandhi Market, Ludhiana - 141 001, Punjab, India ·
33/20,Ganapati Kunj, Circular Road
Dalanwala, Dehradun-248 001, Uttarakhand, India |
|
|
|
|
Eastern
Region: |
·
1, Acharya J.C.Bose Road, Kolkata - 700 020, West Bengal, India ·
IPICOL House, Annexe Building, 2nd Floor ,Janpath,
Bhubaneswar - 751 022, Orissa, India ·
West Boring Canal Road, Patna - 800 001, Bihar, India |
|
|
|
|
Western
Region: |
·
101, Free Press House, Free Press
Journal Road, Mumbai - 400 021, Maharashtra, India ·
NBCC Hours, 1st Floor, Near
Sahajanand College, Opposite Kamadhenu, Complex, Ambawadi, Ahmedabad - 380
015, Gujarat, India · 107-109, Rafael Towers, 812,Old Palasia, Indore - 452 001, Madhya Pradesh, India ·
3025/8, Shreenidhi Chambers, 1st Floor,
Senapati Bapat Marg, Pune - 411 016, Maharashtra, India ·
317, Rabindranath Tagore Road, Civil
Lines, Nagpur - 440 001, Maharashtra, India |
|
|
|
|
Southern
Region: |
·
India Garage Building, 184, Anna
Salai, Chennai - 600 006, Tamilnadu, India ·
303, 3rd Floor, Mohan Towers, 50,
Residency Road, Bangalore - 560 025, Karnataka, India ·
Suguna Building,1st Floor,
707,Avanashi Road, Coimbatore - 641 037, Tamilnadu, India ·
Chakos Tower, 2nd Floor, Padma Junction, Padma
Pulleppady Road ·
457/1B1, Deshpande Nagar, Hubli - 580
029, Karnataka, India |
|
|
|
|
Andhra Region:
|
· 10-3-311/a, Khanij Bhavan, NMDC Building, Hyderabad - 500 028, Andhra Pradesh, India · D-Block, Project Office Complex, Visakhapatnam - 530 031, Andhra Pradesh, India |
|
|
|
|
D-Block, Project Office , Visakhapatnam - 530 031, Andhra Pradesh, India |
|
|
|
|
|
Marketing
Department Visakhapatnam Steel Plant Main Administrative Building, Visakhapatnam – 530 031, Andhra Pradesh, India |
DIRECTORS
As on : 31.03.2011
|
Name : |
Mr. A.P. Choudhary |
|
Designation : |
Chairman-Cum-Managing Director (w.e.f. 01.08.2011) |
|
Address : |
Kalyani Apartments, A-108, Sector – 6, Vasundhara, Gaziabad – 201012, |
|
Date of Birth/Age : |
26.12.1953 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. P K Bishnoi |
|
Designation : |
Chairman-Cum-Managing Director (upto 31.07.2011) |
|
Date of Birth/Age : |
03.07.1951 |
|
Address : |
Steel House, Directors Bungalow , Sector – 7, |
|
Qualification : |
BE, MBA |
|
Date of Appointment : |
01.04.2004 |
|
|
|
|
Name : |
Mr. Umesh Chandra |
|
Designation : |
Director – (Operations) |
|
Address : |
D-1, Ukkunagaram, |
|
Date of Birth/Age : |
02.07.1954 |
|
Date of Appointment : |
01.11.2008 |
|
|
|
|
Name : |
Mr. A.P. Choudhary |
|
Designation : |
Director – (Projects) (upto
31.07.2011) |
|
Address : |
Kalyani Apartments, A-108, Sector – 6, Vasundhara, Gaziabad – 201012, |
|
Date of Birth/Age : |
26.12.1953 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. P. Madhusudhan |
|
Designation : |
Director – (Finance) |
|
Address : |
D-3, Director’s Bunglow, Sector – 7, Ukkunagaram, |
|
Date of Birth/Age : |
09.04.1958 |
|
Date of Appointment : |
02.11.2009 |
|
|
|
|
Name : |
Mr. T K Chand |
|
Designation : |
Director – (Commercial) (w.e.f. 22nd September, 2010) |
|
|
|
|
Name : |
Mr. Y. Manohar |
|
Designation : |
Director – (Personnel) (upto 30th
September, 2010) |
|
Address : |
D-1, Director’s Bunglow, Sector – 7, Ukkunagaram, |
|
Date of Birth/Age : |
15.09.1950 |
|
Date of Appointment : |
20.03.2007 |
|
|
|
|
Name : |
Mr. Y R Reddy |
|
Designation : |
Director – (Personnel) (w.e.f. 22nd
December, 2010) |
|
|
|
|
Name : |
Mr. S. Machendra Nathan |
|
Designation : |
Government Director (w.e.f. 24th May, 2010) |
|
Address : |
A-1-5, Koyembedu, South Asia Games, |
|
Date of Birth/Age : |
07.03.1954 |
|
Date of Appointment : |
24.05.2010 |
|
|
|
|
Name : |
Mr. Dilip Singh |
|
Designation : |
Government Director |
|
Address : |
L-31, Nevedita Kunj, Sector – 10, R.K. Puram, |
|
Date of Birth/Age : |
09.04.1956 |
|
Date of Appointment : |
07.11.2008 |
|
|
|
|
Name : |
Mr. A P V N Sarma |
|
Designation : |
Independent Directors - (w.e.f. 30th
September, 2010) |
|
|
|
|
Name : |
Mr. H S Chahar |
|
Designation : |
Independent Directors - (w.e.f. 30th
September, 2010) |
|
|
|
|
Name : |
Mr. Swashpawan Singh |
|
Designation : |
Independent Directors - (w.e.f. 1st
October, 2010) |
|
|
|
|
Name : |
Dr. U D Choubey |
|
Designation : |
Independent Directors - (w.e.f. 11th
October, 2010) |
KEY EXECUTIVES
|
Name : |
Mr. P. Mohan Rao |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 24.07.2010
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
The President of |
|
48898456 |
|
P.K. Bishnoi |
|
3 |
|
P. Madhusudan |
|
1 |
|
S. Machendranathan |
|
1 |
|
Dilip Singh, IAS |
|
1 |
|
|
|
|
|
Total |
|
48898462 |
|
Names of Shareholders (Preferences Shares) |
|
No. of Shares |
|
The President of |
|
29374700 |
|
|
|
|
|
Total |
|
29374700 |
Equity Share Breakup (Percentage of Total Equity)
As on : 24.07.2010
|
Category |
Percentage |
|
Government
(Central and State ) |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of steel products |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
Rabars: Vizar TMT Strycturals:
Vizag Ukku |
||||||||
|
|
|
||||||||
|
Agencies Held : |
Sold through own Branches |
PRODUCTION STATUS ( AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Wire Rods |
Tonnes in ‘000s |
850 |
1016 |
|
Light and Medium
Merchant Products-Bar Mill |
Tonnes in ‘000s |
710 |
868 |
|
Saleable Billets |
Tonnes in ‘000s |
246 |
35 |
|
Medium Merchant
Structural Mill |
Tonnes in ‘000s |
850 |
1044 |
|
|
|
|
|
|
Pig Iron |
Tonnes in ‘000s |
556 |
318 |
|
Granulated Slag |
Tonnes in ‘000s |
1440 |
1336 |
|
Coke Ovens
By-products |
Tonnes in ‘000s |
186 |
167 |
Note:
Licensed capacity not applicable in terms of Government of India notification
No. S.O.477(E), dated 25Th July, 1991.
GENERAL INFORMATION
|
No. of Employees : |
17829
(Approximately) |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State
Bank of ·
Andhra
Bank, Vishakhapatnam, ·
Bank
of ·
Canara
Bank ·
UCO
Bank ·
Central
Bank of ·
Dena
Bank ·
·
Oriental
Bank of Commerce ·
State
Bank of ·
State
Bank of Saurashtra ·
State
Bank of ·
Indian
Overseas Bank ·
Indian
Bank ·
HSBC
Bank Limited ·
IDBI
Bank Limited ·
Allahabad
Bank ·
Axis Bank ·
IndusInd Bank ·
HDFC Bank ·
Deutsche Bank ·
Bank of ·
Bank of ·
Citi Bank ·
Standard Chartered Bank ·
HSBC Bank |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B. V. Rao and Company Chartered Accountants |
|
Address : |
Flat No. FF-01, |
|
|
|
|
Joint Venture : |
·
International Coal Ventures Private Limited ·
RINMOIL Ferro Alloys Private Limited |
CAPITAL STRUCTURE
As on: 24.07.2010
Authorised Capital : Rs.80000.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.65.423 Millions
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48900000 |
Equity shares |
Rs.1000/- each |
Rs.48900.000 millions |
|
31100000 |
Preference Shares |
Rs.1000/- each |
Rs.31100.000 millions |
|
|
Total |
|
Rs.80000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48898462 |
Equity shares |
Rs.1000/- each |
Rs.48898.462 millions |
|
29374700 |
7 % Non -
Cumulative Redeemable preference shares |
Rs.1000/- each |
Rs.29374.700 millions |
|
|
Total |
|
Rs.78273.162 Millions |
Note:
Of the above 2180612 Equity Shares of Rs. 1000
Each were allotted as fully paid-up for consideration other than cash.
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 |
78273.200 |
78273.200 |
78273.200 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
54019.000 |
50576.800 |
45925.900 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
132292.200 |
128850.000 |
124199.100 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2748.900 |
3873.200 |
9077.200 |
|
|
2] Unsecured
Loans |
8618.700 |
8452.300 |
1000.400 |
|
TOTAL BORROWING
|
11367.600 |
12325.500 |
10077.600 |
|
|
DEFERRED TAX
LIABILITIES |
799.700 |
978.200 |
1244.900 |
|
|
|
|
|
|
|
TOTAL
|
144459.500 |
142153.700 |
135521.600 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
15298.900 |
14653.500 |
12220.600 |
|
Held for disposal
|
0.300 |
0.500 |
0.500 |
|
Capital work-in-progress
|
95367.100 |
75069.000 |
46520.000 |
|
|
|
|
|
|
|
Investments
|
3616.000 |
2.500 |
0.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
32547.100 |
24515.200 |
32152.800 |
|
|
Sundry Debtors
|
3306.100 |
1811.800 |
1912.700 |
|
|
Cash & Bank Balances
|
19988.900 |
54155.400 |
66241.700 |
|
|
Other Current Assets
|
759.600 |
1374.000 |
2589.100 |
|
|
Loans & Advances
|
19650.400 |
13650.200 |
15696.900 |
Total Current Assets
|
76252.100 |
95506.600 |
118593.200 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
11176.900 |
12652.500 |
11494.400 |
|
|
Current Liabilities
|
21537.400 |
16067.000 |
14113.500 |
|
|
Provisions
|
13360.600 |
14358.900 |
16205.300 |
Total Current Liabilities
|
46074.900
|
43078.400
|
41813.200
|
|
Net Current Assets
|
30177.200 |
52428.200 |
76780.000 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
144459.500 |
142153.700 |
135521.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
104711.800 |
98091.500 |
91283.800 |
|
|
|
Other Income |
5255.600 |
7368.100 |
9236.700 |
|
|
|
TOTAL (A) |
109967.400 |
105459.600 |
100520.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
71883.600 |
55351.100 |
58962.500 |
|
|
|
Depletion / (Accretion) to Stock of
Semi-finished/Finished goods |
(5323.200) |
4153.500 |
(9166.500) |
|
|
|
Employees' remuneration & benefits |
12729.500 |
13997.400 |
11573.500 |
|
|
|
Stores & spares consumed |
4712.200 |
4664.800 |
5012.300 |
|
|
|
Power & fuel |
4250.300 |
4082.700 |
3403.100 |
|
|
|
Repairs & maintenance |
1451.800 |
1421.300 |
1498.100 |
|
|
|
Freight outward |
3007.200 |
3126.500 |
2865.300 |
|
|
|
Other expenses & provisions |
3970.200 |
3139.100 |
3244.600 |
|
|
|
Wealth tax |
4.900 |
4.500 |
8.900 |
|
|
|
Inter account adjustments-raw material mining cost |
(491.000) |
(432.600) |
380.600 |
|
|
|
TOTAL (B) |
96195.500 |
89508.300 |
77021.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13771.900 |
15951.300 |
23499.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1645.500 |
775.500 |
874.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12126.400 |
15175.800 |
22624.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2659.400 |
2771.700 |
2404.600 |
|
|
|
|
|
|
|
|
|
|
Profit for the
year |
9467.000 |
12404.100 |
20220.000 |
|
|
|
|
|
|
|
|
|
Add |
Prior
period adjustments |
349.600 |
72.400 |
45.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9816.600 |
12476.500 |
20265.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
3231.700 |
4509.800 |
6910.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
6584.900 |
7966.700 |
13355.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21178.300 |
16538.300 |
36525.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
1000.100 |
0.000 |
|
|
|
Proposed Dividend (Final) |
2714.700 |
1852.800 |
3391.800 |
|
|
|
Tax on Interim Dividend |
0.000 |
166.100 |
0.000 |
|
|
|
Tax on Proposed Dividend
(Final) |
440.400 |
307.700 |
576.400 |
|
|
|
Reserve for Redeeming
Preference Share Capital |
0.000 |
0.000 |
29374.700 |
|
|
BALANCE CARRIED
TO THE B/S |
24608.100 |
21178.300 |
16538.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
4209.800 |
3509.400 |
783.200 |
|
|
|
Other Earnings |
16.500 |
7.900 |
2.300 |
|
|
TOTAL EARNINGS |
4226.300 |
3517.300 |
785.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
405.600 |
1121.900 |
1010.500 |
|
|
|
Raw Materials |
39667.800 |
26898.800 |
35528.600 |
|
|
|
Capital Goods |
4428.400 |
7555.300 |
3566.400 |
|
|
TOTAL IMPORTS |
44501.8 |
35576.000 |
40105.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
85.79 |
113.89 |
223.93 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.99
|
7.55 |
13.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.37
|
12.72 |
22.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.72
|
11.33 |
15.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.10 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.43 |
0.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65
|
2.22 |
2.84 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
Yes |
|
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 |
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Contractors / Suppliers / Customers |
4752.900 |
6867.700 |
|
Local Authorities - State Govt. |
232.000 |
90.600 |
|
Sales Tax matters * |
14683.200 |
13626.100 |
|
Income Tax |
1513.300 |
822.500 |
|
Customs / Excise duty |
1695.300 |
921.000 |
|
R and D Cess |
33.800 |
33.800 |
|
Others |
3261.200 |
70.900 |
(*) No liability is expected to arise as the movement of goods were on stock transfer and Sales Tax has been paid on eventual sales.
FIXED ASSETS:
Year 2010-11
The year 2010-11
was a defining year as far as steel business models are concerned, when quarterly
pricing mechanism was adopted by oligopoly of international coal suppliers -
passing on short term volatility in coal markets to steel industry which left
steel producers struggling to fine tune their business models. Also, the steel
markets worldwide were sluggish due to higher availability, and prices remained
under pressure for most part of the year, which further had a negative impact
on profitability of steel producers.
Against this
backdrop, RINL recorded its best ever turnover of Rs.115170.000 Millions in
2010-11 and achieved an overall performance that qualifies the company for
"Excellent" rating for eighth time in the last 10 years as per the
MOU with Government of India.
The year 2010-11
saw a steep increase in prices of major raw materials viz coking coal and Iron
ore by about 22% and 55% respectively. A growth of 13% achieved in Net Sales
Realisation (NSR), was not sufficient to maintain the level of profitability
achieved in 2009-10.
Focus of the
company, during the year when profitability was under pressure, was on
maximizing production and sales of value added steels and cost cutting in all
areas through judiciously planned cost reduction measures.
During the year,
the Company recorded a growth of 1% in production of Crude Steel in spite of
the unprecedented rains during the month of November 2010 resulting in
disruption of operations for some time during the period.
The year was
particularly significant in so far as the progress on expansion front is
concerned as the works on major units of expansion have progressed towards last
leg of equipment erection and trial runs and commissioning tests for various
equipments and auxiliary areas have already commenced. Stage-I units of
expansion will be commissioned progressively in 2011-12.
BUSINESS PERFORMANCE:
PRODUCTION
The year gone by,
was challenging for the company in as much as it has surpassed some of the
previous best achieved milestones for any year while it also fell short of last
year achievements in few areas mainly due to the unprecedented rains in
November 2010.
The unprecedented
rains tested our crisis management skills, and it was with team working and
leadership of highest quality, that, in spite of inundation of units catering
to critical production facilities, a quick recovery could be staged and adverse
impact on overall production was minimized.
FINANCIAL REVIEW:
The company
increased production of value added steel and achieved the saleable steel
production of 2.96 Million Tons representing 112% of capacity utilization. With
the help of various management initiatives taken, the company achieved a
turnover of Rs11517.000 Millions during 2010-11, which is higher by 8% over
last year. The company has also undertaken expansion and modernization plan,
which is expected to be completed by 2012-13, with focus on higher production
of value added products.
The profit of the
company for the year 2010-11 was affected adversely, mainly due to adverse
impact of input prices consisting of Iron ore, imported coal and indigenous
coal. However, the adverse impact on profitability was partially offset by
higher volume of saleable steel production, increase in net sales realization
of saleable steel, better product mix and higher value added steel production.
During the year,
the company continued its thrust on better fund management. Treasury Management
initiatives exploited the interest rates scenario and leveraged well the
investment yield and cost of working capital loans. During the year, the
company has raised working capital loans worth Rs.14000.000 Millions by way of
Commercial Papers (CP) at attractive rates (weighted average cost of 6.12%).
The company has
continued to maintain its virtual debt-free status with term deposits with
Banks of Rs.19550.000 Millions as against working capital loans of Rs.11370.000
Millions as on 31-03-2011.
For third
consecutive year, the Board of Directors is pleased to recommend the dividend.
For the year 2010-11 the Board of Directors have recommended dividend of Rs.2056.200 Millions to 7% Preference
Shareholders and 10% on PAT Rs.658.500 Millions) to Equity Shareholders.
The company has
successfully cleared long pending issues and obtained refunds/benefits to the
extent of Rs.400.000 Millions during the year 2010-11, through effective
representations before the Tax and Appellate authorities.
CREDIT RATING :
FITCH and CRISIL
(Credit Rating Agencies) have maintained highest rating for short term loans
"F1+" and "P1+" respectively and a very good rating of
"AA (Ind)" for long term loans.
MAJOR MILESTONES ACHIEVED DURING 2010 - 11 :
In the area of
Expansion and other projects, cold trial runs being a part of commissioning
activity have begun in the year 2010-11 and following activities were
accomplished:
AWARDS AND ACCOLADES:
v "Navratna" status was
conferred on Subject in November, 2010.
v The First Steel Minister's trophy for the year
2006-07 was presented by the Union Minister for Steel to Subject on 10th May
2010.
v During 2010-11,
VSP participated in the survey conducted by the Great Place to Work® Institute
India, in association with "The Economic Times", as a part of the "India's Best Companies to Work For -
2011" study across various organizations in India. Subject -VSP was
ranked top 31st company and 5th in Manufacturing and Production Category.
v Subject was
selected for the award of Certificate of Merit1 of 'Global Human Resource
Development Awards- 201O by "International Federation of Training and
Development Organizations"(IFTDO), London.
v Subject bagged
Award for 'Best Management Practices'
instituted by Government of Andhra Pradesh for performance in the areas of
Production, Productivity, Labour practices, Industrial relations and CSR. The
award was received on 1st May, 2010
v Subject was
awarded the Certificate for "Excellent
Water Efficient Unit" during a National competition for Excellence in
Water Management-2010 organized at Hyderabad by Cll.
v Subject won the
second prize amongst the integrated steel plants of the 'National Sustainability Award' of the Ferrous Division of Indian
Institute of Metals on 14th November 2010 in Bangalore.
v Subject received 'Indira Gandhi Rajbhasha shield' in New
Delhi on 14th September, 2010.
v Subject was
awarded First prize in the contest on "INSSAN
Award for Organizational Excellence in Suggestion Scheme" in Steel
Units' category.
v Subject bagged 5
Nos of the prestigious Prime Minster's 'Shram
Awards' presented by Ministry of Labour, Govt, of India, given annually to
the excellently performing workers. 1 'Shram
Bhushan' (50 % among all PSUs and 25 % among all sectors) and 4 'Shram
Veer' awards (67 % among all PSUs and 33% among all sectors) were awarded to
SUBJECT.
v Subject achieved
two Class-C Viswakarma Rashtriya
Puraskar (VRP) - 2008 (Performance year 2008) Awards for innovative
suggestions from Sinter Plant and Engineering Shops and Foundry departments.
The Company has won this distinction SIXTH time in a row.
v Teams from Subject
bagged 20 Gold, 7 Silver and 2 Bronze Medals at the 10th Chapter Convention of
Quality Circle (CCQC) Forum of India held at Visakhapatnam.
v All the Seven
'Quality Circle' (QC) teams and Four '5S' teams of Subject bagged 'Gold Medals' at the 'International
Convention on Quality Concept Circles (ICQCC)- 2010' held at Hyderabad in
Oct' 10.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Economic Environment :
Changing economic and
business conditions and rapid technological innovation are creating an
increasingly competitive market environment that is driving corporations to
transform their operations. Consumers of products and services are increasingly
demanding better quality products and lower prices. Companies are focusing on
their core competencies and are using state of art technology. The role of
technology has evolved from supporting corporations to transforming them.
The year 2010
witnessed calm after the storm, i.e. slowly recovering from the turbulence pain
and panics from the unprecedented Economic and Financial Crisis adversely
impacting the Global Economic growth.
INDIAN ECONOMY :
The Indian economy
is projected to grow by 8.5% in 2010-11, the fastest in three years, on the
back of a sharp recovery in farm out put, but high inflation remained as an
area of concern all through the year. For 2010-11, the average inflation was
9.5%.
Weathering the
global slow down, the Indian Economy managed to expand by 8% in 2009-10 and
6.8% in 2008-09.
The Government
initiatives and liberalization measures resulted in tremendous response and
growth in the FDI Equity inflows and by middle of March 2011,
There has been
overall growth in other Sectors of the Economy as well and during 2011-12, it
is expected to be better, making
GLOBAL STEEL INDUSTRY :
World crude steel
production in 2010 registered highest ever yearly production of 1414 Mt - a
growth of 15% over 2009, which is 5% higher than the previous peak of 1346 Mt
in 2007. Developing countries like
The majority of
countries have recorded double-digit percentage rises in 2010 relative to 2009.
The largest of these are found in the more economically developed regions.
European Union, North America and
The economic
outlook for 2011 is cautiously optimistic. In the West, certain sectors of the
economy are performing well. However, the construction market remains depressed
and this continues to dampen demand for steel, especially long products.
Government spending cuts and the fragile financial situation could pose further
negative risks.
In 2011, strong
growth in steel production is expected in South America and the
INDIAN STEEL SCENARIO :
Steel Industry
plays a major role in the economic growth of
With demand driven
by expanding consumer market, the Indian Steel Industry is likely to receive
huge domestic and foreign investments, MOUs (nearly 222) for planned capacity
of around 276 mt have been signed by Steel Investors with various State
Governments mostly in Odisha, Jharkhand, Chhattisgarh and
Finished Steel
Production was registered at 62.69 Mt during 2010-11 in the country as per JPC
and the production is expected to be nearly 110 mt by 2012-13. A Compound
annual growth rate (CAGR) of 8.4% during the five years (2005-06 to 2009-10)
was recorded.
The consumption of
Steel domestically was recorded at 65.61 Mt and shown an increase of 11 %
during 2010-11 as compared to the same period of the previous year.
Government
initiatives included (a) approval by Planning Commission a total outlay of US $
9.5 Billion for the development and promotion of the Iron and Steel Sector; (b)
Scheme for the promotion of research and development in the Iron and Steel
Sector with Budget provision of US$ 24.6 Million (c) review of National Steel
Policy 2005 and process for drafting a 'National Steel Vision' has been
initiated and (d) Five year strategy has been prepared for promotion of Steel
Sector in the country.
The Ministry of
Steel, in association with United Nations Development Programme (UNDP) is
carrying out a Project on "Removal of Barriers to Energy Efficiency
Improvement in Steel Re-rolling Mill Sector in
OUTLOOK FOR THE COMPANY IN 2011-12 :
Notwithstanding
the steep increase in the raw material prices in 2010-11, the outlook for
2011-12 suggests a quantum jump once again, fuelled significantly by the
unprecedented rains and flooding of North - Eastern parts subject 36 of
FINANCIAL OVERVIEW
The Global steel industry slowly started to recover from the melt down
and the second half of 2010-11 has been encouraging for the steel industry as
the demand has started to increase. SUBJECT registered an increase in the turnover
of 8.30% over the previous year.
FINANCIAL
PERFORMANCE
Profit before tax of Rs.9820.000 Millions was lower by Rs.2660.000
Millions over previous year Rs.12480.000 Millions). The profit margins strained
during the current year due to steep increase of raw material prices especially
basic raw materials such as Coal and Iron Ore.
AS PER WEBSITE
DETAILS:
PRESS RELEASE:
DATE 31.08.2012
SECRETARY, DPE LAUDS
RINL ‘S Human Resources Strength
Sri OP Rawat, IAS,
Secretary, Department of Public Enterprises (DPE), Government of India, praised
the strength of Human Resources which is a key element in the success of
SUBJECT. Sri Rawat arrived to a warm welcome on his maiden visit to SUBJECT to
participate in one day workshop on “Performance Management System” held at
Centre for HRD today.
Sri Rawat
witnessed a corporate presentation of RINL and interacted with the top
management in the evening at VSP. Speaking on the occasion, Sri Rawat said the
sustainability development plan, CSR activities, future expansion plans, Human
Resources initiatives, business diversification plans of RINL are extremely
laudable. The DPE will always support RINL in enhancing the corporate
governance and added that the CSR initiatives focusing on human care, education
are unique and wonderful. He expressed his great satisfaction after visiting
the plant for the first time and observed that the “workforce are quite
enthusiastic and energetic” Sri Rawat earlier visited various production and
expansion units in the plant.
Sri AP Choudhary,
CMD expressed his gratitude to Sri Rawat for taking keen interest in visiting
RINL and said that strong workforce helped RINL to scale to new heights. Faster
decisions has helped the growth of the Company. He mentioned that the raw
material expenditure of 72% of total cost is strongly hitting the bottom line
due to lack of captive mines.
Sri YR Reddy,
Director (Personnel), Sri NS Rao, Director (Projects), Sri Siddharthakumar, CVO
and senior officers of RINL participated in the interactive session. Photo
Captions: 1) Sri OP Rawat, Secretary, DPE interacting with the top management
of RINL as Sri Sri AP Choudhary, CMD, RINL looking on.
2 and 3) Sri OP
Rawat, Secretary, DPE visited Coke Ovens and Blast Furnace along with senior
officials of RINL.
DATE 16.06.2012
DISTRICT COLLECTOR
REVIEWS SITUATION IN VSP
Sri Lav Agrawal,
IAS, District Collector, Visakhapatnam had a meeting with senior management of
RINL S/Shri Umesh Chandra, Director (Operations), P Madhusudan, Director (Finance),
Sri TK Chand, Director (Commercial), Sri YR Reddy, Director (Personnel), Sri NS
Rao, Director (Projects) on steps for post incident management.
RINL Directors
briefed District Collector on steps taken for treatment of injured persons. Out
of 7 patients taking treatment in Seven Hills and Care Hospitals, FIVE patients
have been sent by Air Ambulance to Super-Specialized Hospital viz., National
Burns Institute, Mumbai. They also briefed him about the proposed steps for
review and strengthening safety – particularly with reference to units that are
undergoing commissioning trials. RINL Management is also taking speedy action
to handover compensation as well as employment to the dependent of deceased.
RINL Directors also informed that employees of other agencies like Dastur
Company, Blue Star and SMS Siemag are also settling the compensation and are
also offering employment to the dependent of deceased.
Sri AP Choudhary,
CMD, RINL who is expected to reach Vizag by Sunday directed the Directors and
other Senior Management for expedition of all possible medical help and support
to the injured persons. He personally monitoring the situation and giving
suggestions for confidence building measures.
District Collector
directed RINL management to extend all support to the families of victims and
advised speedy action on payment of compensation, employment to dependents,
specialized medical treatment and attendant support to the injured. He also
directed management of RINL to take visible steps in matters of safety and fix
responsibility for lapses. It was decided in the meeting to have continuous
review of the matter. In late night RINL Directors visited the patients taking
treatment in Seven Hills and also visited houses of bereaved and interacted
with dependents assuring them of all support.
RINL Management
and entire collective expressed their grief at the tragic demise of their
valuable colleagues and conveyed their sympathies to the bereaved family
members. Meanwhile different employee’s organizations in VSP are conducting
prayers for speedy recovery of the injured and peace for the departed souls and
blessing for the dependents. Out of the 5 patients flown to Mumbai for special
medical care, 2 employees have succumbed to injuries in Mumbai and one employee
also succumbed at Vizag today.
DATE 06.06.2012
RINL BAGS ISPAT
RAJBHASHA SHIELD
RINL- Visakhapatnam Steel Plant has been awarded Ispat Rajbhasha Shield for the effective implementation of Official language in the organization. RINL has achieved this Shield consecutively for the last two years. Sri Beni Prasad Verma, Hon’ble Union Minister of Steel presented the Shield to Sri AP Choudhary, CMD, RINL at a meeting of Hindi Salahkar Samithi held at Parliament House in New Delhi. The Minister appreciated the efforts taken by the Company in implementation of Official language at Vizag Steel.
Sri Lalan Kumar, AGM (Hindi) received an Appreciation Letter from the Hon’ble Minister of Steel. The meeting was held to review the implementation of Official Language in the organization under the Ministry of Steel which was attended by Sri DRS Chaudhary, Secretary, Steel, Hindi Salahkar Samithi members, senior officials of Ministry of Steel and Heads of organizations under MOS.
A special issue “Abhyuday” in Hindi containing various activities of RINL-VSP was released by the Hon’ble Steel Minister. Sri AP Choudhary, CMD and other Directors of RINL congratulated RINL collective for achieving the award.
DATE 05.06.2012
POSITIVE PERFORMANCE
BY RINL
· Increase in Liquid Steel Production
· Increase in Captive Power Generation Grew
· High Turnover in May 2012
· Fulfillment of MOU Target in Turnover
Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant, the second largest government owned steel company in India achieved positive performance in production, turnover etc. during May 2012.
On the Production front, RINL’s Hot Metal, Liquid Steel, Captive Power Generation and Coke production increased despite the production being hampered several times due to power interruptions in the State Grid and “Zero” power situation during May 2012.
MARKETING PERFORMANCE
RINL’s sales turnover in May’ 12, has been the highest since inception for the month of May and registering growth over the corresponding period of last year. The Iron and Steel sales volume registered a growth when compared to the corresponding period of last year. The By Products sales has also been the most best since inception.
Notable growth in sales is mainly due to RINL’s penetration in project sales segment. With the above positive performance in sales, RINL has fulfilled its MOU target in May 2012.
It may be mentioned that during the last financial year, RINL has recorded high sales turn over consecutively for 8 months and during the current financial year, the Company has started recording strong sales turn over from the beginning of the months of April and May.
EXPANSION ACTIVITIES:
The 2nd Caster in the Continuous Casting Shop was commissioned successfully during the month of May’12. The Convertor Shop is getting ready for supplying Liquid Steel to Continuous Casters and the lining of the Convertors has already been completed. This caster is a high speed caster with casting speeds up to 4.0 Mtrs/Min. and can cast 150 and 200 square billets which enhances the production capacity of RINL/VSP by another one million tons per annum.
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.52.70 |
|
|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.