MIRA
INFORM REPORT
|
Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
MUKAND LIMITED [w.e.f. 23.03.1989] |
|
|
|
|
Formerly Known
As : |
MUKAND IRON AND STEEL WORKS LIMITED |
|
|
|
|
Registered
Office : |
Bajaj Bhavan, Jamnalai Bajaj Marg, 226 Nariman Point, Mumbai – 400021,
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Country : |
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|
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Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.11.0937 |
|
|
|
|
Com. Reg. No.: |
11-002726 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.787.404 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1937PLC002726 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM19254E |
|
|
|
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PAN No.: [Permanent Account No.] |
AAACM5008R |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchange. |
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|
|
Line of Business
: |
Manufacturing,
Marketing and Exporting of iron and steel products. |
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|
|
|
No. of Employees
: |
2060
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 85000000 |
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|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Slow but Correct |
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|
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record. There
appears some loss in the current year. However, net worth of the company seems to be good. Trade relations
are reported to be fair. Business is active. Payments are reported to be slow
but correct. The company can be considered for normal business dealings at usual
trade terms and condition. |
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) |
|
|
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
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities :- (CARE) BB+ |
|
Rating Explanation |
(CARE) BB+ :- having moderate risk of
default regarding timely servicing of financial obligation. |
|
Date |
January 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Bajaj Bhawan, Jamnalal
Bajaj Marg, 226, Nariman Point, Mumbai 400 021, |
|
Tel. No.: |
91-22-61216666 / 61216629 |
|
Fax No.: |
91-22-22021174 |
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E-Mail : |
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|
Website : |
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Branch Office : |
Located at : ·
Bengaluru ·
Chennai ·
Delhi ·
Kolkata ·
Visakhapatnam |
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|
|
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Factory 1 : |
Thane-Belapur Road, Dighe, Kalwe, Thane - 400 605, Maharashtra, India |
|
Tel. No.: |
91-22-21727500/7700 |
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Fax No.: |
91-22-25348179 |
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|
|
|
Factory 2 : |
Ginigera, Karnataka 583 228, |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Niraj Bajaj |
|
Designation : |
Chairman and Managing Director |
|
Age : |
31 Years |
|
Qualification : |
B.COM.,M.B.A. ( |
|
|
|
|
Name : |
Mr. Rajesh V Shah |
|
Designation : |
Co-Chairman and Managing Director |
|
Age : |
35 Years |
|
Qualification : |
M.A.( |
|
|
|
|
Name : |
Mr. Dhirajlal S Mehta |
|
Designation : |
Board of Director |
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|
|
|
Name : |
Mr. Suketu V Shah |
|
Designation : |
Joint Managing Director |
|
Age : |
30 Years |
|
Qualification : |
B.COM.(HONS.),M.B.A. ( |
|
|
|
|
Name : |
Mr. Vinod S Shah |
|
Designation : |
Board of Director |
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|
|
|
Name : |
Dr. N P Jain, IFS (Retd.) |
|
Designation : |
Board of Director |
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|
|
|
Name : |
Mr. Narendra J Shah |
|
Designation : |
Board of Director |
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|
Name : |
Mr. N C Sharma |
|
Designation : |
Board of Director |
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|
|
|
Name : |
Mr. Prakash V Mehta |
|
Designation : |
Board of Director |
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|
|
|
Name : |
Mr. Pradip P Shah |
|
Designation : |
Board of Director |
|
|
|
|
Name : |
Mr. Amit Yadav |
|
Designation : |
Board of Director |
KEY EXECUTIVES
|
Name : |
Mr. K J Mallya |
|
Designation : |
Company Secretary |
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|
|
|
The Management Team : |
Corporate |
|
Name : |
Mr. Niraj Bajaj |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Rajesh V Shah |
|
Designation : |
Co-Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Suketu V Shah |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. S B Jhaveri |
|
Designation : |
Chief Financial Offi cer |
|
|
|
|
|
Steel Division |
|
|
|
|
Name : |
Mr. A M Kulkarni |
|
Designation : |
Chief Executive (Steel Plant, Thane) |
|
|
|
|
Name : |
Mr. R Sampath Kumar |
|
Designation : |
Chief Executive (Steel Plant, Ginigera) |
|
|
|
|
Name : |
Mr. C H Sharma |
|
Designation : |
Technical Advisor, Stee |
|
|
|
|
Name : |
Mr. Sidharth Shah |
|
Designation : |
Chief of Materials Management |
|
|
|
|
Name : |
Mr. V M Mashruwala |
|
Designation : |
Chief of Marketing (Alloy & Stainless Steel) |
|
|
|
|
|
Industrial Machinery Division |
|
Name : |
Mr. R Jagannathan |
|
Designation : |
Chief Executive |
SHAREHOLDING PATTERN
AS ON :30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
12284609 |
16.80 |
|
|
28623502 |
39.15 |
|
|
40908111 |
55.95 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
40908111 |
55.95 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
Mutual
Funds/UTI |
6007 |
0.01 |
|
|
101439 |
0.14 |
|
Insurance
Companies |
7452308 |
10.19 |
|
Foreign
Institutional investors |
1904984 |
2.61 |
|
|
9464738 |
12.95 |
|
|
|
|
|
|
7594635 |
10.39 |
|
|
|
|
|
|
9866631 |
13.49 |
|
|
4915439 |
6.72 |
|
|
364575 |
0.50 |
|
|
23421 |
0.03 |
|
Clearing
Members |
341154 |
0.47 |
|
|
22741280 |
31.10 |
|
|
32206018 |
44.05 |
|
Total (A)+(B) |
73114129 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
Total (A)+(B)+(C) |
73114129 |
100.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing,
Marketing and Exporting of iron and steel products. |
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Products : |
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PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bars, Rods and Coils of Special and Alloy Steel and Stainless Steel |
Tonnes |
640000# |
342024** |
|
Electrical Energy (Captive Power Generation) At Dighe – Fuel Oil based At Ginigera – Gas Based |
Tonnes |
22.10 M.W. 15.00 M.W. |
82.70 Million KWH 6.67 Million KWH |
|
Semi Finished Billets
and Blooms |
Tonnes |
970000## |
565413@@ |
Note :
** Steel production includes 5,334 Tonnes (7,591 Tonnes) converted outside.
@@ Includes 204,301 Tonnes (182,857 Tonnes) converted from customers’ material.
# Installed capacity of Bar Rods and Coils includes 140,000 Tonnes of installed capacity from Ginigera plant allotted for products of Mukand Limited under Strategic Alliance Agreement with Kalyani Steels Limited
## Installed capacity of
Semi Finished Billets and Blooms at Ginigera of 700,000 Tonnes, includes 289,
660 Tonnes of capacity allotted for products of Kalyani Steels Limited under
Strategic Alliance Agreement.
GENERAL INFORMATION
|
Customers : |
Original
equipment manufacturers (OEMs) ·
Motor Industries Company Limited ·
SKF India Limited ·
Maruti Udyog Limited ·
·
Bajaj Auto Limited ·
Sona Koyo Stearing Systems Limited ·
Honda Motor Cycle and Scooter India
Private Limited ·
Hi-Tech Gears Limited ·
Sundram
Fasteners Limited ·
Hero
Honda Motors Limited Government
sector in ·
Steel Authority of India Limited ·
National Aluminium Company Limited ·
Bharat Heavy Electricals Limited ·
State Electricity Boards ·
Nuclear Power Corporation Limited ·
National Thermal Power Corporation
Limited ·
National Hydro Power Corporation
Limited ·
Indian Space Research Organisation ·
Defence Research and Development
Organisation Non - government
sector in ·
Tata Group of companies ·
Larsenand
Toubro Limited ·
Hindustan
Aluminium Limited ·
Sterlite/Bharat Aluminium Company
Limited ·
Loesche ·
Ispat Industries ·
Essar Group ·Birla
Copper |
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|
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No. of Employees : |
2060
(Approximately) |
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Bankers : |
·
Axis Bank Limited |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Haribhakti and Company Chartered Accountant |
|
|
|
|
Subsidiaries : |
·
Mukand Global Finance Limited. ·
Mukand
International Limited (MIL) ·
Vidyavihar Containers Limited. (VCL) ·
Mukand Vijayanagar Steel Limited. ·
Mukand International FZE (MIFZE) w.e.f.
09.01.2011 |
|
|
|
|
Step-down
Subsidiary: |
·
Mukand International FZE (MIFZE) up to 08.01.2011 |
|
|
|
|
Other related
parties where control exists : |
·
Mukand Engineers Limited. (MEL) ·
Bombay Forgings Limited. (BFL) ·
Stainless India Limited. (SIL) ·
Hospet Steels Limited. (HSL) ·
Kalyani Mukand Limited. ·
Lineage Investments Limited. ·
Catalyst Finance Limited. ·
Econium Investments and Finance Limited. ·
Fusion Investments and Financial Services
Limited. ·
Primus
Investments and Finance Limited. ·
Conquest
Investments and Finance Limited. ·
Jamnalal
& Sons Private Limited. (JSPL). |
|
|
|
|
Joint Ventures : |
·
Mukand Vini Mineral Limited. (MVML), ·
Bekaert Mukand Wire Industries Private. Limited.
(up to 28.03.2011). |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
118000000 |
Equity Shares |
Rs.10/- each |
Rs.1180.000
millions |
|
7000000 |
Preference Shares |
Rs.10/- each |
Rs. 70.000 millions |
|
|
Total
|
|
Rs.1250.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
73159805* |
Equity Shares |
Rs.10/- each |
Rs.731.599 millions |
|
5626320 |
0.01% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 56.263
millions |
|
|
Total
|
|
Rs.787.862 millions |
Subscribed & Paid-up
|
No. of Shares |
Type |
Value |
Amount |
|
73114129 |
Equity Shares |
Rs.10/- each |
Rs.731.141 millions |
|
|
Add: Forfeited Shares, amounts originally paid up |
|
Rs.
0.100 million |
|
5626320 |
0.01% Cumulative Redeemable Preference Shares fully paid up |
Rs.10/- each |
Rs. 56.263
millions |
|
|
Total
|
|
Rs. 787.504 millions |
After 13.08.2012
Authorised Capital is Rs. 1500.000 millions
Paid-up Capital is Rs. 787.404 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
787.500 |
787.500 |
787.520 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
20470.800 |
21449.700 |
17724.792 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
21258.300 |
22237.200 |
18512.312 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12436.500 |
11710.200 |
13341.920 |
|
|
2] Unsecured Loans |
3710.900 |
2960.600 |
3489.719 |
|
|
TOTAL BORROWING |
16147.400 |
14670.800 |
16831.639 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
146.500 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
37405.700 |
37054.500 |
35343.951 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
23901.200 |
24321.900 |
20259.863 |
|
|
Capital work-in-progress |
1042.200 |
236.500 |
1218.209 |
|
|
|
|
|
|
|
|
INVESTMENT |
1096.700 |
1096.700 |
1061.762 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9963.100
|
9251.600 |
7711.636
|
|
|
Sundry Debtors |
8769.800
|
8703.500 |
7438.974
|
|
|
Cash & Bank Balances |
786.900
|
1043.800 |
1018.259
|
|
|
Other Current Assets |
512.200
|
512.200 |
0.000
|
|
|
Loans & Advances |
3500.600
|
2662.000 |
3740.247
|
|
Total
Current Assets |
23532.600
|
22173.100 |
19909.116 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7327.200
|
6253.100 |
2470.766
|
|
|
Other Current Liabilities |
4509.600
|
4115.000 |
3922.394
|
|
|
Provisions |
330.200
|
405.600 |
748.255
|
|
Total
Current Liabilities |
12167.000
|
10773.700 |
7141.415 |
|
|
Net Current Assets |
11365.600
|
11399.400 |
12767.701 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
36.416 |
|
|
|
|
|
|
|
|
TOTAL |
37405.700 |
37054.500 |
35343.951 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
25911.100 |
25486.500 |
19817.178 |
|
|
|
Other Income |
25.100 |
504.100 |
312.215 |
|
|
|
TOTAL (A) |
25936.200 |
25990.600 |
20129.393 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
13942.100 |
13791.400 |
8633.189 |
|
|
|
Changes in inventories of finished goods and work in progress |
(445.200) |
(1694.200) |
9329.079 |
|
|
|
Employee Benefit Expenses |
1318.500 |
1254.700 |
447.919 |
|
|
|
Other Expenses |
9772.800 |
9741.200 |
[10.645] |
|
|
|
Expenditure transfer to capital account / Capital work in
progress [including Trial Run
Expenditure (net)] |
(44.100) |
(19.800) |
[1041.091] |
|
|
|
TOTAL (B) |
24544.100 |
23073.300 |
17358.451 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1392.100 |
2917.300 |
2770.942 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1818.700 |
1626.400 |
1515.462 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(426.600) |
1290.900 |
1255.480 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
657.200 |
678.100 |
635.462 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(1083.800) |
612.800 |
620.018 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(148.800) |
(146.200) |
0.625 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(935.000) |
466.600 |
619.393 |
|
|
|
|
|
|
|
|
|
|
Prior Period Adjustments (net) |
N.A |
[0.070] |
(0.641) |
|
|
|
Excess/ (Short) provision for tax |
N.A |
0.282 |
1.174 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
302.359 |
300.629 |
0.000 |
|
|
|
|
N.A |
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred from Debenture Redemption
Reserve |
N.A |
62.500 |
125.000 |
|
|
|
Transferred to Debenture Redemption
Reserve |
N.A |
[22.356] |
(58.750) |
|
|
|
Proposed Preference Dividend |
N.A |
[0.006] |
(0.006) |
|
|
|
Proposed Equity Dividend |
N.A |
[73.114] |
(73.114) |
|
|
|
Tax on Preference/ Equity Dividend |
N.A |
[11.862] |
(12.427) |
|
|
|
Transfer to General Reserve |
N.A |
[420.000] |
(300.000) |
|
|
BALANCE CARRIED
TO THE B/S |
(632.641) |
302.359 |
300.629 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export (FOB) |
2169.500 |
1535.369 |
770.560 |
|
|
|
Income from engineering contracts |
0.000 |
0.000 |
0.000 |
|
|
|
Dividends |
2.300 |
11.405 |
18.169 |
|
|
|
Others |
4.700 |
20.081 |
1.364 |
|
|
TOTAL EARNINGS |
2176.500 |
1566.855 |
790.093 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3834.500 |
4684.074 |
3604.911 |
|
|
|
Stores, Spare Parts, Components and Fuel |
615.900 |
538.177 |
491.210 |
|
|
|
Goods for trade |
0.000 |
63.028 |
0.582 |
|
|
|
Capital Goods |
424.500 |
15.914 |
14.679 |
|
|
TOTAL IMPORTS |
4874.900 |
5301.193 |
4111.382 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.79 |
6.38 |
8.48 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
6275.470 |
5254.390 |
|
Total Expenditure |
6166.770 |
5212.370 |
|
PBIDT (Excl OI) |
108.700 |
42.020 |
|
Other Income |
7.480 |
93.040 |
|
Operating Profit |
116.180 |
135.060 |
|
Interest |
496.580 |
498.710 |
|
Exceptional Items |
0.000 |
1083.260 |
|
PBDT |
(380.400) |
719.610 |
|
Depreciation |
158.740 |
159.280 |
|
Profit Before Tax |
(539.140) |
560.330 |
|
Tax |
(162.330) |
162.330 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(376.820) |
398.010 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(376.820) |
398.010 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.60
|
1.80 |
3.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.18
|
2.40 |
3.13 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.28
|
1.32 |
1.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.03 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.33
|
1.14 |
1.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93
|
0.20 |
2.78 |
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
No |
|
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 |
Gross Sales,
Services and Other Income:
The gross sales
from the operations and other income for the year was at Rs.28280.000 million as
against Rs.2840.000million in the previous year.
Revenues from
exports rose by over 41% at Rs.2169.500 million during the year as against
Rs.1535.400million in the previous year.
Performance:
During the year, the loss after writing back deferred tax was Rs.935.000
million as against the profit after tax of Rs.466.600 million for the previous
year
The loss was
mainly on account of lower iron ore supply consequent to the banning of mining
and transport of iron ore in some of the districts in Karnataka.
The salient
features of the operating performance in each segment during the year are
discussed in the following paragraphs.
Specialty Steel
Division:
The net sales of
alloy, special and stainless steel long products were at Rs.22910.000 million
compared to Rs.2240.000 million in the previous year. Increase in selling
prices and improved product mix enabled the company to maintain its turnover
similar to that of the previous year. However, the sales in volume declined due
to the paucity of iron ore in the state of Karnataka where the company operates
one of its steel making facilities.
Input prices rose
during the year under report. Iron ore prices increased by over 60%, crude oil
prices moved up by more than 25%. The power generation from the captive power
plant at Dighe, Thane,
The supply of iron
ore from the iron ore rich mines in the state of Karnataka has become scarce
since last two years, especially in the year under report.
Further,
consequent to the Karnataka Lokayukta Report and Petition filed in the
Honorable Supreme Court, alleging illegal mining, encroachment of forest areas
and other related charges, the apex court suspended mining operations,
transportation and sale of iron ore in Bellary District in July 2011 and
subsequently, in Tumkur and Chitradurga Districts out of 166 mines in the three
districts of Karnataka.
In September 2011,
the Hon’ble Supreme Court permitted transportation and sale of existing stocks
of iron ore available with mines and stockyards and also permitted mining
operations in only the two mines of National Mineral Development Corporation
(NMDC). To-date, the industry currently depends exclusively on e-auctions
conducted by the Monitoring Committee of the stock as mentioned and from the
ongoing production of the two NMDC mines. This does not meet the industry’s
demand.
The ban on mining and transportation in July
2011, forced the company to close down its steel making facility in Hospet,
Karnataka for 35 days. The commencement of e-auctions of iron ore enabled the
company to restart its Karnataka operations initially to 40% of its capacity
and gradually improve it to 75%.
After strenuous
efforts by the user industry and others, the Honorable Supreme Court has
permitted category ‘A’ mines to reopen after getting approval of their
Reclamation and Rehabilitation plans and complying with other conditional ties. It is expected that
category ‘A’ mines will open by July 2012 and ‘B’ category mines by September
2012. The Honorable Supreme Court appointed Central Empowered Committee to
categorize 166 mines in Karnataka into ‘A’, ‘B’ and ‘C’ category mines
depending on the level of violations, if any.
Due to rising
input costs, the company had to raise its selling prices in the month of
October 2011. Unfortunately, increases in selling prices were lower than the
increase in input costs. Moreover, the company expects its prices to continue
to be under pressure due to increase in supply emanating from expansion in
capacities by existing players, entry of new players in the alloy steel market
and cheaper imports. Therefore, further rise in input prices may not be
recovered by increase in selling price.
The auto industry
grew by 12 per cent per annum in the year under report and is expected to
continue this growth in the year in progress. This strong outlook in the growth
of user industry is however currently faced with short-term challenges in the
form of inflation, high interest rates, uncertainty of fuel prices and rising
tax burden.
The company’s
continuous Endeavour to tap new markets has resulted in higher exports and the company
plans to enhance the same in the year FY 2012-13.
The sales in
volume and value of stainless steel products too rose during the year under
report. The company has plans to improve the sales in this segment with the
introduction of new value added products.
Industrial
Machinery Division:
At the beginning
of the year under report, the Division had orders on hand amounting to
Rs.3610.000million. However, by the end of the year, the division was unable to
achieve higher turnover as many of the major customers, particularly, in the
steel sector, delayed their projects which in turn delayed the placement of new
orders during the year. This had the effect of marginally reducing the turnover
of the division at Rs.2530.000 million as compared to Rs.2660.000 million in
the previous year. At the end of the year the division had orders
aggregating to
Rs.2750.000 million on hand.
Some of the major
equipment manufactured and commissioned by the division in 2011-12 include,
Level luffing traveling tower crane for a large shipyard, Electrical level
luffing cranes for ports, Rotating trolley cranes for a steel plant, EOT cranes
of more than 100 tonne lifting capacity, Large capacity ladles and ladle
transport cars for a steel plant in co-operation with Siemens VAI. The division
is also gearing for the development and manufacture of new equipment to widen
its market.
The Division
expects to book several new orders in the first quarter of 2012-13 thereby
ensuring that there is adequate order book for execution in the next three
quarters of the year in progress. The actual sales would however depend on the
movement of finished goods for the steel sector where the progress of projects
unfortunately continues to be slow. The Division is making all efforts to book
export orders to increase the share of exports of cranes and process equipment.
MANAGEMENT DISCUSSION AND
ANALYSIS
The year under
report experienced turmoil in most of the global economies in Europe and
Performance:
Despite
maintaining its turnover, the company recorded a loss in the year that has
been. Scarcity of iron ore, a major input for steel making and its rising cost,
depreciation of the rupee resulting in higher costs of imports, escalating fuel
and interest costs, inflation and slow growth in the economy have all had a
negative impact on the performance of the company.
Steel:
Mukand is in the
business of specialty steel long products. The special and alloy steels, which
forms the lion’s share of Mukand’s steel production in terms of volume,
primarily feeds the automobile and auto component sector while the stainless
steel products feed into the exports, engineering, automobile, nuclear, etc.
sectors. The Indian automobile industry has maintained its growth rate despite
several negative factors. It is to be seen if the industry can sustain this growth
in the year in running, despite the rising fuel and finance costs.
Mukand produces
special and alloy steel through the mini blast furnace route using iron ore as
one of the major inputs. This facility is based in Ginigera which is situated in
the iron ore rich state of Karnataka. However, it was severely affected by the
Supreme Court ruling to ban mining in all the three iron ore producing
districts in Karnataka since July 2011. In the month of September 2011 iron ore
was available through e–auction but at a much higher price.
The subsequent
order by the Supreme Court dated 20th April 2012 permitting category “A” mines
to re-open after approval of reclamation and rehabilitation plans is expected
to open up the supply by July 2012 and likely to ease the unwarranted pressure
on the prices as well as availability of this raw material. But the ban, and
the subsequent developments however caused a dip in the production of the
company’s alloy steel in the year due to the total closure of the facility for
35 days in the second quarter and partial closure in the third and fourth
quarter of the year.
The company
produces stainless steel through the ultra high power furnace route in Dighe,
Thane,
Cost saving
measures introduced by the company will fructify in the year in running. In a
study conducted by Bureau of Energy Efficiency on the energy consumption per
tonne of steel produced, Mukand’s energy consumption level was the fourth
lowest amongst 67 steel companies in
Industrial Machinery:
In a recessionary
economy, the debate between austerity vs. growth has brought own governments
and propped up others across the world. It is a debate that perhaps has no clear solutions just like
the chicken and egg scission. In
The year under report began on a positive note
with order bookings reaching Rs.361 million. However, at the end of the year
the division only achieved a turnover of Rs.2530.000 million as some of the
customers postponed the delivery dates of their orders. The orders booked
during the year were lower due to depressed market. The division continues to hold orders worth Rs.2750.000
million at the end of the year and hopes to further its order book position in
the first quarter of the year in running. A major market for the products of
the division comes from the steel sector where there is a marked slowdown
in the execution of brown and green
field projects which will inadvertently
effect the performance of the industrial machinery division of the
company. The division is also looking at increasing its presence in
international markets such as Africa
and the
The division
expects to book several new orders based on tenders quoted he actual execution
will depend on the progress of various new as well as expansion projects of the customers. The
company has been involved in enhancing its technical skills and widening the
product range. Strategic technical collaborations with global leaders are
under
consideration which will fructify into financial benefits in the future. The
division also achieved a 10% reduction in costs through improved product
designs and better sourcing during the last one year and is also working on the possibilities of reduction in
other costs to become more competitive in the
current market.
These efforts would rigorously continue in the year in running.
Total Quality
Management:
Focus on business
excellence through total quality management (TQM) activities has been Mukand’s
mantra for decades. This strategy has paid rich dividends in terms of market
share, brand reputation and superior quality of
products over the
years. The steel and industrial machinery divisions continue in conformation to
the ISO 14001:2004 standard which
relates to the environment management system. The steel division also continues
its conformity to the ISO/TS 16949 standard which is specific to steel
suppliers for the global automotive industry
while the industrial machinery division conforms to the ISO 9001:2008
quality management system. The quality control laboratories of the steel
division to continued its ISO/IEC
17025:2005 quality management systems enabling it to be considered as an accredited system for
undertaking any metallurgical analysis of global standards.
TQM activities
form an important part of o r every day life in Mukand. The worker group
quality circles have won several laurels in national and state competitions including the Par Excellence
and Excellence awards at the
national level
held by the Quality Circle Forum of India.
Internal control systems:
Adequate systems
for internal controls provide assurances on the efficiency of operations,
security of assets, statutory compliances, appropriate authorization, reporting
and recording of transactions. The management and
audit department
prepare regular reports on the review of the systems and procedures. The scope
of the audit activity is broadly guided by the annual audit plan approved by
the Audit Committee. The Chairman and Managing Director of the Company
regularly reviews significant audit observations, discusses corrective measures
with the senior managers. The Chief of Management Audit monitors the
implementation of these suggested measures.
Employing the
Intellectual capital:
So as we move
towards the 75th anniversary, perhaps, we will not be misconstrued if we look
within and analyze the contribution to society and perhaps even the country.
Today, countries are realizing that measuring GDP alone does not give the whole
picture and are exploring new pursuits that reflect society’s broader goals
like measuring the happiness levels of its citizens. Perhaps, the time is ripe
for us at Mukand to focus a little on the
happiness and
welfare of the employees along with the financial reports.
Training for
achievement:
Training and
development is part and parcel of every company in order to harvest the
potential value of employees. Mukand is no different. Up gradation of technical
skills training is periodically given to employees as per identified
requirements while employees are encouraged to participate in personality
development, soft skills enhancement programmers, etc.
Total Quality
Management activities are also a very important aspect in the every day life of
Mukand. Employees undergo training in TPM, ISO or Damming award preparation and
are given opportunities to participate in quality circles, Kaize , suggestions schemes, etc
Future Plan of Action :
• Studies with
respect to type and occurrence of
Titanium inclusions in our Ti stabilized stainless steel grades through
inclusion characterization using EDAX analysis.
• Studies related
to leaded micro alloyed steels for improvement in both mechanical properties
and machine ability for CRDI system
application in the automotive sector.
• To carry out feasibility
for manufacture of Super Duplex
Stainless Steels.
• Studies on the
development of low carbon Chrome Nickel steel for fuel injection application.
• Improved
carburizing steels for high end automobile
gear application.
STANDALONE FINANCIAL
RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2012
Rs.in millions
|
|
Particulars |
Three months ended |
Six Month Later |
|
|
(1) |
INCOME |
30.09.2012 (Un audited) |
30.06.2012 (Un audited) |
30.09.2012 (Un audited) |
|
|
Net Sales
and Other Operating Income |
|
|
|
|
a) |
Gross Sales |
5269.355 |
684174.000 |
12111.095 |
|
|
Less : Excise Duty Recovered |
518.080 |
677.553 |
1195.633 |
|
|
Net Sales |
4751.275 |
6164.187 |
10915.462 |
|
b) |
Other Operating Income |
503.114 |
111.288 |
614.042 |
|
|
Net
Sales and Other Operating Income |
5254.389 |
6275.475 |
11529.864 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
|
|
|
|
|
a) |
Cost of materials consumed |
2701.911 |
3779.283 |
6481.494 |
|
b) |
Changes in inventories of finished goods and
work-in-progress |
315.870 |
(409.038) |
(93.168) |
|
c) |
Stores, Spares, Components, Tools, etc. consumed |
731.264 |
967.161 |
1698.425 |
|
d) |
Power & Fuel |
395.080 |
493.182 |
888.262 |
|
e) |
Employee benefits expense |
325.890 |
353.806 |
679.696 |
|
f) |
Depreciation and Amortisation expenses |
159.280 |
158.741 |
318.021 |
|
g) |
Unrealised Foreign Exchange Loss / (Gain) |
(839.941) |
171.123 |
8718.200 |
|
h) |
Other Expenditure |
742.358 |
810.961 |
1553.319 |
|
|
Total
Expenditure |
5287.712 |
6325.519 |
11613.231 |
|
(3) |
Profit / (Loss) from Operations before Other Income ,
Finance Costs & Net Exceptional income |
(33.323) |
(50.044) |
(83.367) |
|
|
|
|
|
|
|
(4) |
Other Income |
9.100 |
7.480 |
16.580 |
|
|
|
|
|
|
|
(5) |
Profit/(Loss)
from Ordinary Activities before Finance Costs & Exceptional
income |
(24.223) |
(42.564) |
(66.787) |
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
(6) |
Finance Costs
(net) |
498.707 |
496.581 |
995.288 |
|
|
|
|
|
|
|
(7) |
Profit/(Loss)
from ordinary activities before Exceptional income |
(522.930) |
(539.145) |
(1062.075) |
|
|
|
|
|
|
|
(8) |
Net Exceptional
- Income / (Expenditure) |
108.364 |
- |
1083.264 |
|
|
|
|
|
|
|
(9) |
Profit/(Loss)
from ordinary activities before Tax |
560.334 |
(5439.145) |
21.189 |
|
(10) |
Less : Tax
Expense (Deferred Tax) |
162.326 |
(162.326) |
- |
|
(11) |
Net Profit /
(Loss) from ordinary activities after Tax |
398.008 |
(376.819) |
21.189 |
|
|
|
|
|
|
|
(12) |
Paid-up Equity
Share Capital (Face value Rs 10/- per share) |
731.257 |
731.257 |
731.257 |
|
|
|
|
|
|
|
(13) |
Reserves
(excluding Revaluation Reserve) |
- |
- |
- |
|
|
|
|
|
|
|
|
- Including
exceptional items |
0.544 |
(0.515) |
0.029 |
|
|
- Excluding
exceptional items |
(0.715) |
(0.515) |
(1.453) |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
|
|
|
|
|
(1) |
Public
Shareholding |
|
|
|
|
|
Number of Shares |
- |
- |
32206.018 |
|
|
Percentage of
Shareholding |
- |
- |
44.05% |
|
|
|
|
|
|
|
(2) |
Disclosure
in respect of pledged shares of Promoters and Promoter
Group |
- |
- |
- |
|
|
|
|
|
|
|
|
Shares held by
Promoters & Promoter Group - Nos. (A) |
- |
- |
40908111 |
|
|
Percentage of
Total Share Capital |
- |
- |
55.95% |
|
|
Pledged /
Encumbered - No. of Shares |
- |
- |
18328179 |
|
|
Percentage of
Total Share Capital |
- |
- |
25.07% |
|
|
Percentage of
(A) |
- |
- |
44.80% |
|
|
|
|
|
|
|
|
Non Encumbered -
No. of Shares |
- |
- |
22579932 |
|
|
Percentage of
Total Share Capital |
- |
- |
30.80% |
|
|
Percentage of
(A) |
- |
- |
55.20% |
|
|
|
|
|
|
|
|
SEGMENT
RESULT |
|
|
|
|
|
|
|
|
|
|
1) |
Steel |
4439.604 |
5402.464 |
9842.068 |
|
|
|
|
|
|
|
2) |
Power
Generation |
59.858 |
81.252 |
141.110 |
|
|
|
|
|
|
|
3) |
Industrial Machinery |
324.252 |
320.250 |
644.502 |
|
|
|
|
|
|
|
4) |
Road Construction |
- |
444.442 |
444.442 |
|
|
|
|
|
|
|
|
Sub
Total |
4823.714 |
6248.408 |
11072.122 |
|
|
|
|
|
|
|
|
Less
: Inter Segment Revenue |
(72.439) |
(84.221) |
(156.660) |
|
|
|
|
|
|
|
|
Total
Segment Revenue (net of Excise Duty) |
4751.275 |
6164.187 |
10915.462 |
|
|
|
|
|
|
|
|
SEGMENT
RESULT |
|
|
|
|
|
|
|
|
|
|
(1) |
Steel |
(266.377) |
(173.980) |
(56.850) |
|
|
|
|
|
|
|
(2) |
Power
Generation |
44.435 |
68.448 |
44.145 |
|
|
|
|
|
|
|
(3) |
Industrial
Machinery |
12.111 |
75.538 |
286.670 |
|
|
|
|
|
|
|
(4) |
Road
Construction |
(17.505) |
(17.708) |
(35.213) |
|
|
|
|
|
|
|
|
Less
: Inter segment margin |
(1.339) |
- |
(1.339) |
|
|
|
|
|
|
|
|
Total
Segment Result |
(228.675) |
(47.702) |
(276.377) |
|
|
|
|
|
|
|
|
Add
/ (Less) : |
|
|
|
|
|
|
|
|
|
|
|
Other
net un-allocable (expenditure) / income |
204.452 |
513.800 |
209.590 |
|
|
|
|
|
|
|
|
Profit
before Finance costs |
498.707 |
(42.564) |
(663.787) |
|
|
|
|
|
|
|
|
Less
: |
|
|
|
|
|
|
|
|
|
|
|
Finance
costs (net) |
498.707 |
496.581 |
995.288 |
|
|
|
|
|
|
|
|
Net
Exceptional - Income / (Expenditure) |
1083.264 |
- |
1083.264 |
|
|
|
|
|
|
|
|
Profit
/ (Loss) after Prior period adjustments and before tax |
560.334 |
(539.145) |
21.189 |
|
|
|
|
|
|
|
|
Capital
Employed as on |
- |
- |
30.09.2012 |
|
|
|
|
|
|
|
1) |
Steel |
- |
- |
33248.270 |
|
2) |
Power
Generation |
- |
- |
491.780 |
|
3) |
Industrial
Machinery |
- |
- |
406.095 |
|
4) |
Road
Construction |
- |
- |
1732.165 |
|
5) |
Un
allocable (net) |
- |
- |
(18520.67) |
|
|
|
|
- |
|
|
|
Total
Net Capital Employed |
|
- |
|
|
|
|
- |
- |
21257.631 |
-
CONTINGENT
LIABILITIES
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
31.03.2012 (Rs. in
millions) |
31.03.2011 (Rs. in
millions) |
|
Disputed matters in appeal/contested in respect of: |
|
|
|
-Income Tax |
201.000 |
208.300 |
|
- Excise Duty, Customs Duty etc. |
45.300 |
27.600 |
|
- Sales Tax, Works Contract Tax etc. |
49.000 |
28.300 |
|
- Other matters |
2.400 |
2.400 |
|
(ii) Claims against the Company not acknowledged as debts as these are
disputed and pending disposal at various fora. For items (i) and (ii) The Company has taken legal and other steps to protect ifs interest in
respect of these matters, which is based on legal advice and/or precedents in
its own/other cases, It is not possible to make any further determination of
the liability which may arise in these matters. |
208.900 |
172.600 |
|
(iii) Bills discounted with the Bankers and others-Sale Bills
discounted |
98.000 |
172.700 |
|
(iv) Guarantees and Counter guarantees given by the Company on behalf
of |
227.500 |
189.600 |
|
- Other Companies |
|
|
|
(v) Bonds / Undertakings given by the Company under concessional duly/ exemption
to Customs / Excise Authorities (Net of redemption applied for) |
6.600 |
6.600 |
|
(vi) Bonds given by the Company against import of machinery under EPCG
Scheme. (Net of redemption applied for) |
300.200 |
193.700 |
|
Lenders shall have a right of recompense upto 12% per
annum in excess of the effective IRR charged in FRP for 8 years commencing
from the date of approval. |
||
FIXED ASSETS
Tangible Assets
- Railway Siding
- Buildings and Roads
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
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.54.84 |
|
|
1 |
Rs.71.54 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
HET |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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.