MIRA
INFORM REPORT
|
Report Date : |
24.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
S.A.L. STEEL LIMITED |
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|
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Registered
Office : |
5/1, Shreeji House, Behind M. J. Library, Ashram Road, Ahmedabad –
380006, Gujarat |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
06.11.2003 |
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Com. Reg. No.: |
04-043148 |
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Capital
Investment / Paid-up Capital : |
Rs.849.667 Millions |
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CIN No.: [Company Identification
No.] |
L29199GL2003PLC043148 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMS07537F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Sponge Iron, Ferro Alloys, MS and SS Angle
and power. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 5400000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Exists |
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Comments : |
Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade
relation are fair. Business is active. Payment terms are slow. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term loan and working facilities : “D” (Suspended) |
|
Rating Explanation |
Lowest credit quality and low prospects of recovery |
|
Date |
August 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term non fund based letter of credit : “D” |
|
Rating Explanation |
Lowest credit quality and low prospects of recovery. |
|
Date |
August 2012 |
Reason for Suspension – absence of the requisite information from the
company
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 DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-79-26578030)
LOCATIONS
|
Registered Office : |
5/1, Shreeji House, Behind M J Library Ashram Road, Ahmedabad –
380006, Gujarat, India |
|
Tel. No.: |
91-79-26578030 |
|
Fax No.: |
Not Available |
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E-Mail : |
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|
Website : |
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Corporate Office : |
11th Floor, |
|
Tel. No.: |
91-79-66629100 |
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Fax No.: |
91-79-66629130 |
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E-Mail : |
|
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Factory: |
Survey No.245, Village Bharapar, Taluka Gandhidham, District Kutch,
Gujarat, India |
|
Tel. No.: |
91-2836-282194 |
|
Fax No.: |
91-2836-282196 / 282198 |
|
|
|
|
Administrative Office : |
Sal Corporate House, Sola-Kalol Road, Village Santej,
District Gandhinagar – 382721, Gujarat, India |
|
Tel. No.: |
91-2764-661100 |
|
Fax No.: |
91-2764-661110 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Rajendra V. Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K C Thatoi |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
05.01.1957 |
|
Qualification : |
M. Tech, Ph.D (in Sponge Iron Technology) |
|
Profile & Expertise
in Specific functional Areas : |
Has 32 years of rich experience of working on varied seniormost positions in various Steel Plants. |
|
|
|
|
Name : |
Mr. Sujal A. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Babulal M. Singhal |
|
Designation : |
Director |
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Date of Birth/Age : |
04.05.1957 |
|
Qualification : |
C.A, B.Com. |
|
Profile &
Expertise in Specific functional Areas : |
Being a chartered accountant, has expertise in matters involving accounts, taxation, banking, finance etc and has 32 years of experience in his carrier. |
|
|
|
|
Name : |
Mr. Piyush R. Chandrana |
|
Designation : |
Director |
|
Date of Birth/Age : |
07.07.1964 |
|
Qualification : |
B.Com. |
|
Profile & Expertise
in Specific functional Areas : |
Over 24 years of experience in Sales & Marketing Operations as core areas. |
|
|
|
|
Name : |
Anilkumar S. Pandy |
|
Designation : |
Director |
|
Date of Birth/Age : |
02.05.1955 |
|
Qualification : |
M. Sc, LL.B, PGDBM |
|
Profile &
Expertise in Specific functional Areas : |
35 years of vast experience and skills in handling HR and Administrative positions in various big organizations in his carrier. |
|
|
|
|
Name : |
Mr. Ambalal C. Patel |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.04.1944 |
|
Qualification : |
B.E (Metallurgy), B.Sc. |
|
Profile &
Expertise in Specific functional Areas : |
Has more than 41 years of carrier experience and has been associated with various Govt. and PSU’s Bodies like GMDC, GIIC etc on various senior technical posts. |
|
|
|
|
Name : |
Mr. Harshad M. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Jethabhai M. Shah |
|
Designation : |
Director |
|
Date of Birth/Age : |
11.08.1932 |
|
Qualification : |
B.Com |
|
Profile &
Expertise in Specific functional Areas : |
He has vast business understanding and experience in his career and has contributed a lot with his acumen and decision making. |
|
|
|
|
Name : |
Mr. Tejpal S. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shrikant N. Jhaveri |
|
Designation : |
Director |
|
Date of Birth/Age : |
20.12.1943 |
|
Qualification : |
M. S (Electrical), USA |
|
Date of Appointment : |
11.05.2011 |
|
Profile &
Expertise in Specific functional Areas : |
He has rich experience of serving government company for more than 27 overs. |
|
|
|
|
Name : |
Mr. Bhaskar Ghosh |
|
Designation : |
Director |
|
Date of Birth/Age : |
22.01.1968 |
|
Qualification : |
M. Tech |
|
Date of Appointment : |
04.07.2011 |
|
Profile &
Expertise in Specific functional Areas : |
He has more than 15 years experience in industries. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2013
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
42959889 |
50.56 |
|
|
42959889 |
50.56 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
42959889 |
50.56 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5000 |
0.01 |
|
|
5000 |
0.01 |
|
|
|
|
|
|
10411921 |
12.25 |
|
|
|
|
|
|
21669502 |
25.50 |
|
|
9611580 |
11.31 |
|
|
308808 |
0.36 |
|
|
286613 |
0.34 |
|
|
22195 |
0.03 |
|
|
42001811 |
49.43 |
|
Total Public shareholding (B) |
42006811 |
49.44 |
|
Total (A)+(B) |
84966700 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
84966700 |
100.00 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Promoter and Promoter Group
|
Name of Shareholder |
No. of Shares |
Percentage of Holding |
|
Shah Alloys Limited |
3,02,56,989 |
35.61 |
|
SAL Care Private Limited |
1,27,02,900 |
14.95 |
|
SAL Corporation Private Limited |
0 |
0.00 |
|
Total |
4,29,59,889 |
50.56 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Public and holding more than 1% of the total number of shares
|
Name of Shareholder |
No. of Shares |
Percentage of Holding |
|
Satellite Mercantiles Private Limited |
3566638 |
4.20 |
|
Gujarat NRE Coke Limited |
2737682 |
3.22 |
|
Lok Prakashan Limited |
0 |
0.00 |
|
Sanjay C Shah |
0 |
0.00 |
|
Total |
6304320 |
7.42 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sponge Iron, Ferro Alloys, MS and SS Angle
and power. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Sponge Iron |
MT |
180000 |
71738.000 |
|
Ferro Alloys |
MT |
61890 |
12175.000 |
|
Rolling Mill |
MT |
25000 |
1016.960 |
|
Power Plant |
MW |
40 MW P Hour |
95836.990 |
|
Iron Ore Fines |
-- |
-- |
31820.987 |
|
Coal Fine and Others |
-- |
-- |
10677.720 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
· Union Bank of India, Ashram Road, Branch, Ahmedabad, Gujarat, India · State Bank of India · State Bank of Hyderabad |
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Facilities : |
NOTE: LONG TERM
BORROWINGS Nature of security and terms of repayment
for secured borrowings Term loan: Term Loans are Secured by first charge on all the Immovable and Movable assets present and future ranking parri passu with charges created/to be created in favour of other institution/banks subject to second charge on current assets in favour of the company’s bankers for working capital borrowings. The Loan is further secured by pledge of 1,07,56,989 shares of SAL Steel Limited hold by Shah Alloys Limited and personal guarantees of (i) Shri Rajendrabhai V. Shah (ii) Smt. R.R. Shah ( iii) Shri Jayesh V. Shah (iv) and Corporate Guarantee of M/s Shah Alloys Limited.(Amounting to Rs. 2075.000 millions) Term Loan is repayable over a period of 6 years. Period and amount of default as on the
balance sheet date The company has made a default in repayment of Principal amount of Term Loan to the extent of Rs. 24.560 millions as at the balance sheet date. The company has also defaulted in payment of interest on term loan to the extent of Rs.16.909 millions as at the balance sheet date. The period of default on repayment of principal and payment of interest is ranging for a period from 3 days to 87 days and 12 days to 47 days respectively. Vehicle loan: Vehicle loans from “banks” are secured by hypothecation of vehicles and are repayable over a period of 3 years carrying rate of interest 10 to 12% p.a. Vehicle loans from “financial institutions” are secured by hypothecation of vehicles and are repayable over a period of 3 years carrying rate of interest 10 to 12 %p.a. SHORT TERM BORROWINGS Nature of security provided for short
term borrowings: Cash Credit facilities are Secured by hypothecation of entire current assets of the company on parri passu basis with the consortium member banks and second charge on fixed assets of the company on parri passu basis with consortium member banks subject to first charge on parri passu basis with the Union bank of India, State bank of India and State bank of Hyderabad for their respective Loans. The Loans are further secured by personal guarantee of i) Shri Rajendrabhai V. Shah ii) Smt. R.R. Shah iii) Shri Jayesh .V. Shah and iv) Corporate guarantee of M/s Shah Alloys Limited(Amounting to Rs. 2075.000 millions) |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Talati and Talati Chartered Accountant |
|
Address : |
Ambica Chambers, Near Old High court, Navrangpura, Ahmedabad – 380009,
Gujarat, India |
|
|
|
|
Associate : |
Shah Alloys limited |
|
|
|
|
Promoter Group
company : |
· SAL Care Private Limited · SAL Corporation Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 1400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8,49,66,700 |
Equity Shares |
Rs.10/- each |
Rs. 849.667 Millions |
|
|
|
|
|
Note :
Reconciliation of
number of shares:
|
Particulars |
As at March 31, 2012 |
|
|
Number of shares |
Rs. In millions |
|
|
Equity Shares |
|
|
|
Shares outstanding at the beginning of the year |
84966700 |
849.667 |
|
Changes during the Year |
-- |
-- |
|
Shares Outstanding at the end of the year |
84966700 |
849.667 |
Terms/rights, preferences and restrictions
attached to securities:
Equity shares:
The company has one class of equity share having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of directors is subject to the approval of shareholders in the ensuing Annual general meeting, except in case of interim dividend. In the case of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
Details of
Shareholders holding more than 5% in the Company
|
Particulars |
As at March 31, 2012 |
|
|
Number of shares |
% of holding |
|
|
Shah Alloys Limited |
30256989 |
35.61 |
|
Rajendrabhai V. Shah* |
0 |
0.00 |
|
SAL Care Pvt Limited |
12702900 |
14.95 |
|
Total |
42959889 |
50.56 |
* Including 3.48% of holding as Karta
Terms of securities convertible into equity
shares:
Convertible warrants:
On February 3 2012, 3,20,00,000 convertible warrants were issued for cash at Rs.10/- each to strategic investors and to persons belonging to promoters and promoters group category agrregrating to Rs. 320.000 millions convertible into 3,20,00,000 no. of equity shares of face value of Rs. 10/- each, out of which the company has received amount equivalent to 25% of the total consideration per warrant. Accordingly company has received money to the extent of Rs. 80.000 millions and alloted 3,20,00,000 warrants of Rs. 10/- each on February 3, 2012. The lock in requirements of above warrants and/or equity shares arising on conversion of warrants into equity shares be in accordance with the provisions of SEBI(ICDR) Regulations , 2009 [at the sole option of warrant holder(s) at any time within a period of 18 months from the date of allotment of warrants.]
The Company has fully utilised money received against issue of convertible warrant of Rs. 80.000 millions towards working capital requirements.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
849.667 |
849.667 |
|
(b) Reserves & Surplus |
|
411.012 |
406.822 |
|
(c) Money
received against share warrants |
|
80.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
1340.679 |
1256.489 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
1516.824 |
1871.903 |
|
(b) Deferred tax liabilities (Net) |
|
94.893 |
90.023 |
|
(c) Other long term liabilities |
|
70.000 |
70.000 |
|
(d) long-term provisions |
|
4.319 |
3.437 |
|
Total Non-current Liabilities (3) |
|
1686.036 |
2035.363 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
458.396 |
352.225 |
|
(b) Trade payables |
|
680.555 |
523.348 |
|
(c) Other current
liabilities |
|
644.906 |
250.076 |
|
(d) Short-term provisions |
|
5.329 |
8.893 |
|
Total Current Liabilities (4) |
|
1789.186 |
1134.542 |
|
|
|
|
|
|
TOTAL |
|
4815.901 |
4426.394 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
1529.079 |
1684.178 |
|
(ii) Intangible Assets |
|
4.266 |
6.572 |
|
(iii) Capital
work-in-progress |
|
1340.445 |
1206.573 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
483.695 |
505.347 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
3357.485 |
3402.670 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
712.402 |
528.528 |
|
(c) Trade receivables |
|
489.899 |
125.089 |
|
(d) Cash and cash
equivalents |
|
65.729 |
63.416 |
|
(e) Short-term loans and advances |
|
188.097 |
305.534 |
|
(f) Other current assets |
|
2.289 |
1.157 |
|
Total Current Assets |
|
1458.416 |
1023.724 |
|
|
|
|
|
|
TOTAL |
|
4815.901 |
4426.394 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
849.667 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
404.095 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1253.762 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1394.315 |
|
|
2] Unsecured Loans |
|
|
819.605 |
|
|
TOTAL BORROWING |
|
|
2213.920 |
|
|
DEFERRED TAX LIABILITIES |
|
|
85.275 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3552.957 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1872.353 |
|
|
Capital work-in-progress |
|
|
1376.766 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
719.185 |
|
|
Sundry Debtors |
|
|
106.856 |
|
|
Cash & Bank Balances |
|
|
85.879 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
250.281 |
|
Total
Current Assets |
|
|
1162.201 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
555.926 |
|
|
Other Current Liabilities |
|
|
303.679 |
|
|
Provisions |
|
|
4.090 |
|
Total
Current Liabilities |
|
|
863.695 |
|
|
Net Current Assets |
|
|
298.506 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
5.332 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3552.957 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3275.758 |
3200.910 |
2984.824 |
|
|
|
Other Income |
63.613 |
23.779 |
57.413 |
|
|
|
TOTAL (A) |
3339.371 |
3224.689 |
3042.237 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2113.309 |
2025.489 |
|
|
|
|
Purchases of stock-in-trade |
50.802 |
0.000 |
|
|
|
|
Changes in inventories of finishedgoods, work-in-progress and stock-in-trade |
21.715 |
37.237 |
|
|
|
|
Employee benefits expense |
90.267 |
75.237 |
|
|
|
|
Other expenses |
637.941 |
651.397 |
|
|
|
|
Prior period items |
5.589 |
2.159 |
|
|
|
|
TOTAL (B) |
2919.623 |
2791.519 |
2555.780 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
419.748 |
433.170 |
486.457 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
231.169 |
221.381 |
268.772 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
188.579 |
211.789 |
217.685 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
180.593 |
194.405 |
196.027 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
7.986 |
17.384 |
21.658 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3.796 |
14.657 |
8.914 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
4.190 |
2.727 |
12.744 |
|
|
|
|
|
|
|
|
|
Less |
Prior Period
Adjustments |
-- |
-- |
4.463 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
118.491 |
115.764 |
107.483 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
122.681 |
118.491 |
115.764 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
172.747 |
126.165 |
74.281 |
|
|
TOTAL IMPORTS |
172.747 |
126.165 |
74.281 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.05 |
0.03 |
0.10 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
30.06.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
1169.300 |
862.300 |
879.200 |
895.800 |
740.300 |
|
Total Expenditure |
1089.200 |
875.200 |
850.100 |
907.400 |
770.800 |
|
PBIDT (Excl OI) |
80.100 |
(12.900) |
29.100 |
(11.600) |
(30.500) |
|
Other Income |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
80.100 |
(12.900) |
29.100 |
(11.600) |
(30.500) |
|
Interest |
68.400 |
80.400 |
78.700 |
91.000 |
74.800 |
|
Exceptional Items |
(4.100) |
01.200 |
(00.400) |
0.600 |
0.000 |
|
PBDT |
7.600 |
(92.100) |
(49.900) |
(102.100) |
(105.300) |
|
Depreciation |
47.400 |
47.600 |
49.000 |
49.000 |
48.200 |
|
Profit Before Tax |
(39.800) |
(139.700) |
(98.900) |
(151.000) |
(153.500) |
|
Tax |
(11.500) |
(45.700) |
(32.000) |
(54.300) |
(38.300) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(28.300) |
(94.000) |
(66.900) |
(96.700) |
(115.300) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(28.300) |
(94.000) |
(66.900) |
(96.700) |
(115.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.13
|
0.08
|
0.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.24
|
0.54
|
0.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.23
|
0.54
|
0.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.01
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.47
|
1.77
|
1.77 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82
|
0.90
|
1.35 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Current Maturities of Long term Debt |
395.755 |
173.140 |
NA |
|
|
|
|
|
|
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
No |
|
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 |
LITIGATION
DETAILS
|
HIGH COURT OF GUJARAT MISC.CIVIL APPLICATION (STAMP NUMBER) No. 1203 of
2010 [GROUP 01197-01204] In SPECIAL CIVIL APPLICATION/ 6299/ 2008 (
DISPOSED ) On : 18/03/2010 |
||||||||
|
Status : PENDING |
CCIN No : 001018201001203 |
|||||||
|
Last Listing Date: 20/07/2010 |
||||||||
|
Coram |
HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE HARSHA DEVANI |
Not Before |
HONOURABLE MR.JUSTICE C.K.BUCH |
|||||
|
S.NO. |
Name of the Petitioner |
Advocate On Record |
||||||
|
1 |
UNION OF INDIA |
(MR RM CHHAYA) for: Applicant(s) |
||||||
|
S.NO. |
Name of the Respondant |
Advocate On Record |
||||||
|
1 |
SAL STEEL LIMITED |
|
||||||
|
|
||||||||
|
Presented On |
: 04/05/2010 |
Registered On |
: 04/05/2010 |
|||||
|
Bench Category |
: DIVISION BENCH |
District |
: KACHCHH |
|||||
|
Case Originated From |
: THROUGH ADVOCATE |
Listed |
: 2 times |
|||||
|
StageName |
: FOR ORDERS |
|||||||
|
Office Details |
||||||||
|
S. No. |
Filing Date |
Document Name |
Advocate Name |
Court Fee on Document |
Document Details |
|||
|
1 |
04/05/2010 |
APPLICATION |
(MR RM CHHAYA) ADVOCATE |
20 |
- |
|||
UNSECURED LOANS
|
PARTICULARS |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred payment liabilities: |
|
|
|
Deferred sales tax liability |
13.579 |
13.578 |
|
Loans and advances from related parties: |
|
|
|
Inter corporate Deposit |
500.000 |
700.000 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans and advances from related parties: |
|
|
|
From directors |
8.319 |
8.319 |
|
Inter corporate deposit |
27.795 |
0.000 |
|
Deposits: |
|
|
|
Inter corporate deposit |
120.044 |
0.000 |
|
Total |
669.737 |
721.897
|
NOTE:
LONG TERM
BORROWINGS
Deferred sales tax liability :
Deferred sales tax liability is interest free and payable in six equal annual installments of Rs. 2.263 millions each payable from 1st May, 2016
Loans and advances from related parties:
The company has taken an interest free inter corporate deposit.
SHORT TERM BORROWINGS
Inter corporate loan:
The company has taken loan during the year from two related
parties as mentioned herewith: (a) SAL Care Private Limited of Rs. 17.500
millions and (b) SAL Corporation Private Limited of Rs.10.000 millions. These
parties are covered under the register maintained under section 301 of the Companies
Act , 1956.
CORPORATE
INFORMATION
The company is engaged in manufacturing Sponge Iron, Ferro Alloys, MS and SS Angle and power and the same are sold in the domestic market. Because of the Captive power generation, company has advantage of low power cost per unit of manufacturing. Company is also generating 40 MW Power from waste Heat recovery Boiler and Fluidized Bed Combustion boiler with economic price. Power generated is used for captive consumption and surplus power is sold resulting profit.
OPERATIONAL
OVERVIEW
During the year Net Turnover of the Company has been increased to ` 327.58 Crores as compared to previous year’s turnover which was ` 320.09 Crores. Company’s profit after tax (PAT) has also increased marginally. However, decline in net profit margin is mainly attributed to factors like higher basic raw materials prices like Coal and Iron ore, inflationary conditions, cost burdens, shortage of working capital and lower margin etc..
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
India has remained world’s largest producer of sponge iron since 2002. In the last four years the Indian Sponge Iron industry grew at an annual rate of 9.8%.
The performance of the domestic Ferro Alloy sector has been in line with the Indian and global steel industry. Production has been increased at annual average rate of 9.5% during the last four years.
Sponge Iron (DRI) is now recognized as a high purity, top quality charge material throughout the world. In comparison with scarp, the use of DRI/HBI is now known to offer many benefits like consistency in composition, low trace elements due to its porous nature and environment – friendliness. Power generation through waste gases at very low cost is one of the biggest advantages the sponge iron industry is enjoying with. This provides power at the low cost per unit which helps the unit to generate more profit than the sale of sponge iron in real sense.
The Company operates two kilns with an installed capacity of 1,80,000 tonnes per annum to produce sponge iron. While manufacturing sponge iron, the significant amount of heat energy generated from waste gases of Kilns is recovered in waste heat recovery boilers to generate steam, which then passes through the steam turbine generator for producing power. Company is also operating two power plants, based on both coal and waste heat recovery from kilns with a combined generation capacity of 40 MW. The Power generated is being consumed both captively as well as used for wheeling to other users by means of State Grid. This revenue also contributed to bottom line.
The Company also has 61890 MTPA installed capacity for Ferro Alloys Production. The Company is chiefly manufacturing Ferro Chrome, Ferro Manganese, Ferro Silico manganese etc. which have its application in the production of steel as deoxidants and used as alloying agents to impart particular physical properties to finished steel products. Depending upon the process of steel making and the type of steel being made, the requirement of different Ferro Alloys varies within a wide range. The demand/consumption for Ferro-alloys has a direct correlation with the growth in the Steel Industry and hence Steel Industry mainly drives the growth of Ferro Alloys Industry.
In addition to above, the Company has 25000 MTPA capacity of Rolling Mill where presently M S Angle, S.S Angle, Round Bar etc are being manufactured.
The company also has a 40 MW Coal based Captive Power Plant.
FUTURE OUTLOOK
Sponge Iron and Steel Making Industries goes hand in hand. The future of Sponge Iron Industry and its prospects are dependent on Steel demand coupled with the availability of its substitute i.e. steel scrap in the market. While considering that there is enormous scope for increasing steel consumption in almost all sectors in India, it may be said that the prospects for the Sponge Iron Industries are bright.
On the other hand, Ferro-Alloys Industry envisages power intensive production. In the absence of competitively available electrical power, the domestic industry may face stiff competition from imports leading to possible closure or underutilization of the capacity in the industry. To support power intensive production and steady power supplies to the Industry at a stable price, Company has its own 40 MW power plant and is focusing on its captive power generation for cheaper availability of electricity.
During 2011-12, Supreme Court had banned iron ore mining in Karnataka due to environmental worries and allegations of illegal mining. However, NMDC was still allowed to mine within the region and since the Company is having its long term procurement tie-ups with NMDC, the availability of basic raw material viz. Iron Ore would not be a problem in the near future.
Company also tends to procure its other basic raw materials like Chrome Ore, Manganese Ore, Coke etc. from renowned Public Sector Undertakings like MOIL, OMCL etc and as such the consistency in availability raw materials is ensured for them also. In Union Budget 2012-13, government has provided certain fiscal benefits to boost the Industry such as reduction of customs duty on imported plant and machinery from 7.5% to 2.5%; reduction of Custom Duty on goods required for Coal Mining Projects to Nil and reduction of custom duty on thermal Coal to Nil from 5%. These benefits may be seen further to reduce the prices of raw materials like
Coal and may help the Industry in the long run.
CONTINGENT LIABILITIES
(TO THE EXTENT NOT PROVIDED FOR):
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
(i) Claims against the company not acknowledged as debts: |
|
|
|
With Government Authorities |
263.560 |
36.564 |
|
Others |
53.589 |
50.007 |
|
(ii) Guarantees: |
|
|
|
Corporate guarantee given for Shah Alloys Limited Note: The guarantee
amount keeps on reducing to the extent SAL Steel Limited repays Inter
corporate deposit to Shah Alloys Limited. The Guarantee ceases to exist upon
repayment of entire amount of Inter corporate deposit to Shah Alloys Limited |
800.000 |
800.000 |
|
Bank guarantee given |
1.127 |
2.627 |
|
(iii)Other money for which company is contingently liable: |
|
|
|
Letter of credit |
75.970 |
49.375 |
FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30TH JUNE 2013
|
Sr. No. |
Particulars |
Quarter
Ended |
Year ended |
|||
|
|
|
|
30-Jun-13 |
31-Mar-13 |
30-Jun-12 |
31-Mar-13 |
|
|
|
|
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
|
1 |
|
Income from Operations |
|
|
|
|
|
|
a |
Net Sales/ Income
from operations |
735.608 |
895.343 |
1165.113 |
3794.487 |
|
|
b |
Other Operating Income |
4.717 |
0.435 |
4.171 |
12.231 |
|
|
|
Total Income from Operations (net) |
740.325 |
895.778 |
1169.284 |
3806.718 |
|
2 |
|
Expenses |
|
|
|
|
|
|
a |
Cost of Materials consumed |
520.713 |
616.855 |
805.740 |
2427.369 |
|
|
b |
Purchase of stock-in-trade |
11.194 |
60.918 |
114.933 |
450.101 |
|
|
c |
Changes in inventories of finished
goods, work-in-progess and stock-in-trade |
33.894 |
0.266 |
(33.885) |
(63.356) |
|
|
d |
Employee benefits expense |
26.633 |
34.515 |
28.679 |
121.548 |
|
|
e |
Depreciation and amortisation
expenses |
48.244 |
48.973 |
47.421 |
192.951 |
|
|
f |
Consumption of stores & Spares |
14.636 |
22.890 |
15.712 |
66.991 |
|
|
g |
Power Cost and cost of power
generation |
94.652 |
123.808 |
109.447 |
536.546 |
|
|
h |
Other Expenses |
69.060 |
47.561 |
52.638 |
185.492 |
|
|
|
Total Expenses |
819.026 |
955.786 |
1140.685 |
3917.642 |
|
3 |
|
Profit/ (Loss) from operations
before other income, finance costs and |
(78.701) |
(60.008) |
28.599 |
(110.924) |
|
|
|
execeptional items(1-2) |
|
|
|
|
|
4 |
|
Other Income |
- |
- |
|
- |
|
5 |
|
Profit/ (Loss) from ordinary
activities before finance costs and exceptional |
(78.701) |
(60.008) |
28.599 |
(110.924) |
|
|
|
items (3+4) |
|
|
|
|
|
6 |
|
Finance Costs |
74.829 |
91.012 |
68.379 |
318.462 |
|
7 |
|
ProfitZ(Loss) from ordinary activities
after finance costs but before |
(153.530) |
(151.020) |
(39.780) |
(429.386) |
|
|
|
exceptional items (5-6) |
|
|
|
|
|
8 |
|
Exceptional items |
- |
- |
- |
- |
|
9 |
|
Profit / (Loss) from ordinary
activities before tax (7-8) |
(153.530) |
(151.020) |
(39.780) |
(429.386) |
|
10 |
|
Tax Expenses |
(38256) |
(54.338) |
(11.447) |
(143.462) |
|
11 |
|
Net Profit/ (Loss) from ordinary
activities after tax (9-10) |
(115.274) |
(96.682) |
(28.333) |
(285.924) |
|
12 |
|
Extraordinary items |
- |
- |
- |
- |
|
13 |
|
Net Profit/ (Loss) for the period
(11 -12) |
(115.274) |
(96.682) |
(28.333) |
(285.924) |
|
14 |
|
Paid-up Equity Share
Capital (Face Value of Rs.10/- each per
share) |
849.667 |
849.667 |
849.667 |
849.667 |
|
15 |
|
Reserve excluding Revaluation
Resereves as per balance sheet of previous |
|
|
|
125.088 |
|
|
|
accounting year |
|
|
- |
|
|
16 |
|
Earnings per share |
|
|
|
|
|
i |
|
(a) Basic and Diluted EPS before
extraordinary items (not annualised) |
(1.3567) |
(1.1379) |
(0.3100) |
(3.3651) |
|
ii |
|
b) Basic and Diluted EPS after
extraordinary items (not annualised) |
(1.3567) |
(1.1379) |
(0.3100) |
(3.3651) |
PART – II
SELECT INFORMATION FOR THE QUARTER ENDED
ON 30.06.2013
|
A |
PARTICULARS
OF SHAREHOLDING |
Quarter
Ended |
Year ended |
||||
|
|
|
|
30-Jun-13 |
31-Mar-13 |
30-Jun-12 |
31-Mar-13 |
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
|
|
|
- Number of Shares |
42,006,811 |
42,006,811 |
42,006,811 |
42,006,811 |
|
|
|
|
- Percentage of shares |
49.44% |
49.44% |
49.44% |
49.44% |
|
|
|
2 |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
|
|
|
|
- Number of Shares |
42,959,889 |
42,959,889 |
42,959,889 |
42,959,889 |
|
|
|
|
- Percentage of shares (as a % of
the total shareholding of promoter and |
100.00% |
100.00% |
100.00% |
100.00% |
|
|
|
|
promoter group) |
|
|
|
|
|
|
|
|
- Percentage of share (as a % of the
total Share Capital of the Company) |
50.56% |
50.56% |
50.56% |
50.56% |
|
|
|
|
b) Non-encumbered |
|
|
|
|
|
|
|
|
- Number of Shares |
- |
- |
- |
- |
|
|
|
|
- Percentage of shares (as a % of
the total shareholding of the promoter and |
0.00% |
0.00% |
0.00% |
0.00% |
|
|
|
|
promoter group) |
|
|
|
|
|
|
|
|
- Percentage of share (as a % of
the total Share Capital of the Company) |
0.00% |
0.00% |
0.00% |
0.00% |
|
|
B |
PARTICULARS |
3 Months Ended 30- June -13 |
|
|
INVESTOR COMPLAINTS
(Nos.) |
|
|
|
Pending at the beginning of the Quarter |
NIL |
|
|
Received during the quarter |
NIL |
|
|
Disposd of during the quarter |
NIL |
|
|
Remaining unresolved at the end of the quarter |
NIL |
Notes:
The above results were reviewed by the Audit Committee and approved by Board of
Directors in its meeting held on 14th August, 2013.
Previous period frigures have been regrouped and/ or rearranges wherever necessary to make their classification comparable with the current period.
The Company is manufacturing Ferro Alloys and Sponge Iron, which is basically used in Iron and Steel industry. Further power generated in the company in its power plant is used for captive as well as trading purpose. In view of this, the company has to consider" Iron and Steel" and "Power" as Primary Reportable business segment, as per Accounting Standard -17, Segment Reporting issued by The Institute of Chartered Accountants of India. However, due to substantial competition, risk, on-going position of Company and largely in the interest of the Company as well as interest of the stake holders involved, the management has not made disclosure of Primary Reportable segment as per Accounting Standard -17. Further, in view of the fact that the Company has its business within the geographical territory of India, Company has considered "INDIAN GEOGRAPHY" as the only secondary reportable business segment, as per the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.
FIXED ASSETS
v
Tangible
Assets
· Freehold Land
· Buildings
· Plant and Machineries
· Furniture and Fixutres
· Vehicles
· Office Equipment
· Computer
v
Intangible
Assets
·
Software
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 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.66.69 |
|
|
1 |
Rs.100.80 |
|
Euro |
1 |
Rs.86.30 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
28 |
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.