MIRA
INFORM REPORT
|
Report Date : |
19.01.2013 |
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Tel. No.: |
91 33 22887799 |
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Fax No.: |
91 33 22881063 |
IDENTIFICATION DETAILS
|
Name : |
TRL KROSAKI REFRACTORIES LIMITED (w.e.f. 03.06.2011) |
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Formerly Known
As : |
TATA REFRACTORIES LIMITED (w.e.f. 06.03.1986) BELPAHAR REFRACTORIES LIMITED |
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Registered
Office : |
Belpahar, Jharsuguda – 768 218, Orissa |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
05.09.1958 |
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Com. Reg. No.: |
15-000349 |
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Capital
Investment / Paid-up Capital : |
Rs.209.000 millions |
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CIN No.: [Company Identification
No.] |
U26921OR1958PLC000349 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BBNT00014A |
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PAN No.: [Permanent Account No.] |
AAACT6494Q |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing and Selling of Refractories. |
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No. of Employees
: |
1292 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 11000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having some dip in the profitability
of the company. However, the company has leading position in the domestic
refractory industry, strong brand image and a large and reputed client base.
Financial position of the company is good. Trade relations are fair. Business
is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries, and
a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan: AA |
|
Rating Explanation |
High credit quality, it carry low credit
risk. |
|
Date |
26.03.2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Debt: A1+ |
|
Rating Explanation |
Highest credit quality, it carry lowest credit
risk. |
|
Date |
26.03.2012 |
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/
Factory/ Refractory
Engineering and Management Services (REMS)/ Technical Services (Finance and Accounts/
Human Resources/ Materials Management
Order Management) : |
Belpahar, Jharsuguda – 768218, Orissa, India |
|
Tel. No.: |
91-6645-258623/ 258396/ 258377/ 250249/ 250264/
250273/ 2358486/ 258417 |
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Mobile No : |
91-9937286933
(Mr. M.V. Rao) |
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Fax No.: |
91-6645-250243/ 250254 |
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E-Mail : |
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Website : |
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Head Office/ Marketing Division : |
Tata
Center, 11th Floor, 43 J.L.
Nehru Road, Kolkata – 700071, West Bengal, India |
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Tel No : |
91-33-64990527 |
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Fax No : |
91-33-22881063/ 1065 |
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E-Mail : |
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Domestic Marketing Office : |
Located at: ·
·
Kolkata ·
Vizag ·
Belpahar ·
Mumbai ·
Bengaluru ·
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Operation Office : |
Located at: ·
·
·
·
·
·
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Branch Office : |
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DIRECTORS
AS ON 15.09.2012
|
Name : |
Mr. Vuppala Satyanarayana Murty |
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Designation : |
Director |
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Address : |
No. 10, |
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Date of Birth/Age : |
15.04.1951 |
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Date of Appointment : |
05.05.2008 |
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DIN No : |
00092348 |
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Name : |
Mr. Hemant Madhusudan Nerurkar |
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Designation : |
Additional director |
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Address : |
5-C Road, Northern Town, Bistupur, Jamshedpur – 831001, Jharkhand,
India |
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Date of Birth/Age : |
20.10.1948 |
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Date of Appointment : |
15.09.2012 |
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DIN No : |
00265887 |
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Name : |
Mr. Arup Kumar Chattopadhyay |
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Designation : |
Managing Director |
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Address : |
Owners Court 6, May |
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Date of Birth/Age : |
17.12.1952 |
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Date of Appointment : |
28.04.2009 |
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DIN No : |
00201892 |
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Name : |
Mr. Yujiro Ueda |
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Designation : |
Director |
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Address : |
7-1 Shirahagi-machi, Kokurakita-ku, Kitakyushu-city, |
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Date of Birth/Age : |
14.10.1949 |
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Date of Appointment : |
31.05.2011 |
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DIN No : |
03514624 |
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Name : |
Mr. Hiroshi Odawara |
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Designation : |
Director |
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Address : |
12-10-1006, Tsutsui-machi, Yahantanishi-ku, Kitakyushu-City, Fukuoka-Perfecture,
Kitakyushu, Japan |
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Date of Birth/Age : |
18.08.1953 |
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Date of Appointment : |
31.05.2011 |
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DIN No : |
03514764 |
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Name : |
Mr. Kotaro Kuroda |
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Designation : |
Director |
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Address : |
1-5-12, Sakuradai, Nakama-shi, |
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Date of Birth/Age : |
21.07.1956 |
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Date of Appointment : |
31.05.2011 |
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DIN No : |
03140089 |
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Name : |
Mr. Kinji Matsushita |
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Designation : |
Director |
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Address : |
4-9-42-503, Kobai-cho, Yahatanishi-ku, Kitakyushu-City, Fukuoka
Perfecture, |
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Date of Birth/Age : |
24.01.1957 |
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Date of Appointment : |
31.05.2011 |
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DIN No : |
03515430 |
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Name : |
Mr. Kiyotaka Oshikawa |
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Designation : |
Director |
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Address : |
Mitsusadadai 1-1-1-714, Yahatanishi-ku, Kitakyushu-city, Fukuoka
Perfecture, |
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Date of Birth/Age : |
27.07.1960 |
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Date of Appointment : |
31.05.2011 |
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DIN No : |
03515516 |
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Name : |
Mr. Prem Shankar Shrivastava |
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Designation : |
Additional Director |
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Address : |
1302, Kailash Tower, Kaushambi, Ghaziabad – 201010, Uttar Pradesh,
India |
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Date of Birth/Age : |
18.02.1955 |
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Date of Appointment : |
26.10.2012 |
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DIN No : |
06397536 |
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Name : |
Mr. Rajesh Chintak |
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Designation : |
Director |
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Address : |
B-12, BJB Nagar, Bhubaneswar – 751009, Orissa, India |
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Date of Birth/Age : |
14.10.1967 |
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Date of Appointment : |
15.09.2012 |
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DIN No : |
02384452 |
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Name : |
Mr. Rakesh Kulshreshtha |
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Designation : |
Director appointed in casual vacancy |
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Address : |
C-01, Ispatika Apartments, Sector – 4, Plot no.29, Dwarka phase – 1,
New Delhi – 110075, India |
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Date of Birth/Age : |
08.10.1952 |
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Date of Appointment : |
12.12.2011 |
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DIN No : |
03196186 |
KEY EXECUTIVES
|
Name : |
Mr. Arbinda Debta |
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Designation : |
Secretary |
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Address : |
P-45, |
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Date of Birth/Age : |
25.06.1976 |
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Date of Appointment : |
22.08.2011 |
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PAN No.: |
AIKPD0761H |
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Name : |
Mr. P.B. Panda |
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Designation : |
Executive Vice President and Chief Operating Officer |
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Name : |
Mr. C.S. Das |
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Designation : |
Executive Vice President and Chief Financial Officer |
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Name : |
Dr. Tarapada Dash |
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Designation : |
Vice President (HR and Administration) |
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Name : |
Mr. Hirdesh Sehgal |
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Designation : |
Vice President (Operations) |
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Name : |
Mr. P.K. Patel |
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Designation : |
Vice President (Project and Support Services) |
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Name : |
Dr. Sukumar Adak |
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Designation : |
Vice President (Technology) |
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Name : |
Mr. Santanu Mukhopadhyay |
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Designation : |
Vice President (Business Development) |
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Name : |
Mr. J Pandey |
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Designation : |
Vice President (Strategy Management and Business
Excellence) |
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Name : |
Mr. P.K. Naik |
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Designation : |
Vice President (Strategic Raw Material Sourcing) |
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Name : |
Mr. M.V. Rao |
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Designation : |
Vice President (Commercial) |
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Name : |
Mr. M.C. Pradhan |
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Designation : |
Vice President (Gujarat and |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 15.09.2012
Shareholding details file attached.
(AS ON 30.09.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Government Companies |
|
10.54 |
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Public Financial Institutions |
|
4.61 |
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Foreign holdings |
|
51.00 |
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Bodies Corporate |
|
27.83 |
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Other Top 50 Shareholders |
|
5.95 |
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Others |
|
0.07 |
|
|
|
|
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Refractories. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
1292 (Approximately) |
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Bankers : |
· Central Bank of India Main Road, Bistupur, Jamshedpur – 831001, Bihar, India · Central Bank of India Corporate
Finance Branch, 33, N.S. Road, Kolkata – 700001, West Bengal, India · State Bank of India · Mizuho Corporate Bank |
|||||||||||||||||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
N.M. Raiji and Company (Mr. Vinay D. Balse – Partner) Chartered Accountants |
|
Address : |
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PAN No.: |
AAAFN4217G |
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|
|
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Holding Company : |
· Krosaki Harima Corporation, Japan (Holding Company) (June 3, 2011 onwards) · Tata Steel Limited.(Holding Company) (Upto June 2, 2011)* CIN No:L27100MH1907PLC000260 |
|
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Subsidiaries : |
·
TRL Asia Private Limited, Singapore ·
TRL China Limited, China |
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|
|
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Fellow Subsidiaries : |
·
The Indian Steel and Wire Products Limited ·
Nat Steel Asia Pte Limited ·
Tata Metaliks Limited ·
Corus U. K. Limited ·
Tayo Rolls Limited |
|
|
·
|
|
Associates : |
·
Almora Magnesite Limited · Tata Sponge AND Iron (Upto June 2, 2011)* · TRF Limited (Upto June 2, 2011)* · Jamipol Limited (Upto June 2, 2011)* |
CAPITAL STRUCTURE
(AS ON 15.09.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20900000 |
Equity Shares |
Rs.10/- each |
Rs.209.000
millions |
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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 |
209.000 |
209.000 |
209.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2475.832 |
2315.486 |
2272.407 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2684.832 |
2524.486 |
2481.407 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1014.263 |
866.580 |
664.823 |
|
|
2] Unsecured Loans |
494.145 |
144.615 |
438.954 |
|
|
TOTAL BORROWING |
1508.408 |
1011.195 |
1103.777 |
|
|
DEFERRED TAX LIABILITIES |
142.826 |
153.439 |
166.304 |
|
|
Provision for Employee Separation Compensation |
0.000 |
0.000 |
43.227 |
|
|
|
|
|
|
|
|
TOTAL |
4336.066 |
3689.120 |
3794.715 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1735.709 |
1651.172 |
1805.878 |
|
|
Capital work-in-progress |
149.341 |
117.756 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
336.648 |
338.935 |
338.934 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1605.304
|
1378.440
|
1219.827
|
|
|
Sundry Debtors |
1908.028
|
1685.056
|
1258.818
|
|
|
Cash & Bank Balances |
32.900
|
79.435
|
130.779
|
|
|
Other Current Assets |
0.011
|
0.016
|
0.036
|
|
|
Loans & Advances |
489.373
|
446.784
|
464.305
|
|
Total
Current Assets |
4035.616
|
3589.731
|
3073.765
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1174.903
|
944.157
|
878.921
|
|
|
Other Current Liabilities |
349.576
|
348.977
|
279.033
|
|
|
Provisions |
396.769
|
715.340
|
265.908
|
|
Total
Current Liabilities |
1921.248
|
2008.474
|
1423.862
|
|
|
Net Current Assets |
2114.368
|
1581.257
|
1649.903
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4336.066 |
3689.120 |
3794.715 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9007.570 |
8682.374 |
8195.943 |
|
|
|
Other Income |
66.921 |
47.143 |
50.332 |
|
|
|
TOTAL (A) |
9074.491 |
8729.517 |
8246.275 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed |
3272.186 |
3187.285 |
|
|
|
|
Purchases of Finished, Semi-finished and Other products |
2044.148 |
2022.915 |
|
|
|
|
Changes in stock of finished goods, work-in-progress and stock-in-trade |
(24.299) |
(66.808) |
7330.700 |
|
|
|
Employee Benefit Expense |
517.129 |
499.072 |
|
|
|
|
Other Expenses |
2517.607 |
2119.756 |
|
|
|
|
Expenditure (other than interest) transferred to capital |
(43.279) |
(32.850) |
|
|
|
|
TOTAL (B) |
8283.492 |
7729.370 |
7330.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
790.999 |
1000.147 |
915.575 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
206.819 |
122.244 |
108.991 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
584.180 |
877.903 |
806.584 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
236.619 |
214.554 |
209.770 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
347.561 |
663.349 |
596.814 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
102.198 |
236.480 |
212.162 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
245.363 |
426.869 |
384.652 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
246.748 |
196.138 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
|
200.000 |
|
|
|
Dividend |
NA |
|
114.950 |
|
|
|
Tax on Dividend |
NA |
|
19.092 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
246.828 |
246.748 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1405.059 |
1227.698 |
1289.332 |
|
|
|
Commission Earnings |
50.822 |
31.023 |
41.239 |
|
|
TOTAL EARNINGS |
1455.881 |
1258.721 |
1330.571 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1361.026 |
1270.550 |
930.616 |
|
|
|
Finished Products |
662.490 |
615.357 |
857.885 |
|
|
|
Stores & Spares |
15.279 |
3.966 |
11.841 |
|
|
|
Capital Goods |
31.338 |
18.847 |
11.514 |
|
|
TOTAL IMPORTS |
2070.133 |
1908.720 |
1811.856 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.74 |
20.42 |
18.40 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total
Income |
(%) |
2.70
|
4.89 |
4.66
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.86
|
7.64 |
7.28
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.02
|
12.69 |
12.23
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.26 |
0.24
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.28
|
1.20 |
1.01
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.10
|
179 |
2.15
|
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 |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Short Term Loans |
|
|
|
From Banks |
470.000 |
-- |
|
Fixed Deposits |
24.145 |
44.615 |
|
Interest accrued and due thereon |
-- |
-- |
|
Other Loans Commercial Papers |
-- |
100.000 |
|
|
|
|
|
Total |
494.145 |
144.615 |
PERFORMANCE
The performance of
the Company was deeply impacted by the ill effect of domestic as well as global
economic downturn that severely subdued the demand for industrial goods and
could nevertheless achieve a growth of over 4% in sales revenue at Rs.9640.000
Millions during the year against Rs.9270.000 Millions of the previous year. The
consolidated revenue which includes the revenues of TRL China Limited were Rs.1088
Millions compared to Rs.10100.000 Millions of the previous year; an increase of
8%. The drop in demand of its products also led to lower capacity utilization.
The gross
production during the year was 2,22,309 t. against 2,34,831 t. of previous
year; a decline of around 4%.
The overall sales
volume was 2,99,013 t. against 3,18,087 t. of the previous year; a decline of
around 6%. Although production and sales volume were lower than that of the
previous year the total revenue was higher due to better product mix and
increase in selling prices.
The under
absorption of overhead expenses, higher input prices particularly abnormal
increase in fuel and power cost and increase in financing cost prevailing over
a large part of the year saw the profit before taxes dropping to 4% as compared
to 7% of the previous year. The profit before taxes for the year was Rs.350.000
Millions against Rs.660.000 Millions of the previous year; a decrease of 47%.
The profit after tax was Rs.250.000 Millions against Rs.430.000 Millions of the
previous year; a decrease of 42%.
INTERNATIONAL BUSINESS
The export
turnover of the Company for the year was Rs.1470.000 Millions against Rs.1300.000
Millions of the previous year. The consolidated international business was Rs.1900.000
Millions against Rs.1670.000 Millions of the previous year. Close to one fifth of
the Company's consolidated turnover comes from sales outside India. The Company
is enlarging its global footprint for sound business reasons. A wide
international customer base enables the Company de-risking of operations.
Further international exposure enables the Company to benchmark its operations
against global standard. The Company was successful in securing coke oven
battery No.1 rebuilding order of Esfahan Steel Company, Iran, competing with
several international players in the field. Although, the Company is facing
difficulties for execution of the Project due to sanction of U.S.A. and
European countries the Company has taken actions to mitigate the problem and
execute the Project, which will enable the Company to earn the reputation of a
global refractories service provider.
During the year,
the Company has received the Capexil's Top Export Award for the year 2010-11.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC
ENVIRONMENT
The year 2011-12
was a challenging year for the Indian as well as global economy. With the Gross
Domestic Product (GDP) growth slowing to 6.9% in FY 2012 from 8.4% in the
previous two fiscals, India has witnessed a slowdown due to weak industrial
activity coupled with a contraction in investments. Factor such as persistent
and high inflation, monetary tightening, weakening of the Rupee, negative global
developments and domestic political uncertainty have contributed to it. Global
economy recovery got serious setback due to intensification of debt crises in
Euro Zone, political turmoil in Middle East and USA and European sanction on
Iran. As a result of high inflation and abnormal increase in interest rates due
to tightening of monetary policy by RBI, industrial growth slowed drastically
to mere 3.9% as compared to 7.6% of last year. Restriction on iron ore
production owing to scam and environmental issues, weak coal output and decline
in natural gas production during the year also seriously affected core sector particularly
Steel which consumes around 75% refractories.
INDUSTRY OVERVIEW
Refractories are
composite materials used in large volume in extreme, usually corrosive,
environments as furnace lining for high temperature materials processing and
other applications in which thermo mechanical and thermo chemical properties
are critical. Refractories are therefore facilitating or enabling materials and
are essential to successful operations of any industry in which high
temperature are used. The steel industry is by far the greatest user of
refractories, which accounts for about 70% of the world refractories
production. Other significant users include cement and lime, aluminium, copper,
chemical, glass and ceramic industries. Consequently the growth of refractories
industry is closely linked with growth in iron and steel industry.
FUTURE OUTLOOK
Despite the lower
growth figure of 6.9%, India remains one of the fastest growing economies in
the World as all major Countries (including the emerging economies) are
witnessing a significant slowdown. While a slowing down of the Indian economy
can be largely attributed to global factors, domestic factors also played an
important role.
The survey
predicts the Indian economy to grow by 7.6% and 8.6% in the next two years. It
also predicts that the weakness in the economic activity might have bottomed
out. Keeping in view the economic trends of various parameters, inflation is
expected to decline in the short run. As a result, the RBI is expected to opt
for an expansionary monetary policy which could provide necessary fillip to the
economy.
Steel has a good
outlook for next two years with a forecast of 80 Million Tonnes for 2012-13 and
100 Million Tonnes in 2013-14. Since growth of refractories industries is
linked to steel industry, your Company can be benefited from this outlook.
FORM 8
|
Corporate
identity number of the company |
U26921OR1958PLC000349 |
|
Name of the
company |
TRL Krosaki Refractories Limited |
|
Address of the
registered office or of the principal place of business in |
Belpahar, Jharsuguda – 768218, Orissa, India E-mail : arabinda@trlkrosaki.com
|
|
This form is for |
Modification of charge |
|
Charge
identification (ID) number of the charge to be modified |
90078462 |
|
Type of charge |
·
Immovable property ·
Any Interest in Immovable Property ·
Book debts ·
Movable property (not being pledge) ·
Floating charge |
|
Particular of
charge holder |
Central Bank of Corporate Finance Branch, 33, N. S. Road, Kolkata-700001, West E-Mail : agmcfb3842@centralbank.co.in
|
|
Nature of
instrument creating charge |
1. Sanction Letter 2. Hypothecation of Book Debts to secure Cash Credit and
WCDL 3. Letter of Hypothecation to secure demand Cash Credit
against goods 4. Agreement for Letter of Credit and BG 5. Packing Credit Agreement 6. Demand Promissory Note of Rs.620.000 Millions All agreement executed on 14th November, 2011. |
|
Date of
instrument Creating the charge |
14.11.2011 |
|
Amount secured by
the charge |
Rs.1020.000 Millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
Margin 25% on CC 10% on PC/EBP Extent and
operation of the charge First
charge by way of hypothecation over stocks and receivables ranking pari passu
with SBI. 2nd
Charge by way of hypothecation/mortgage of entire block assets both existing
and future ranking pari passu with CBI and SBI. By
this modification the earlier overall limit of Rs.1215.000 Millions is
modified to Rs.1020.000 Millions. |
|
Short particulars
of the property charged (Including location of the property) |
The properties hypothecated/mortgaged are located at TRL Krosaki
Refractories Limited, Belpahar, District - Jharsuguda, Odisha, India, Pin -
768218 and with all its branches. |
|
Date of
instrument modifying the charge |
09.06.2011 |
|
Particulars of
the present modification |
By this modification the earlier limit of Rs.1215.000 Millions is modified
to Rs.1020.000 Millions as per followings. (A) Fund Based Working Capital limit Rs.620.000 Millions (i) Cash Credit Rs. 370.000 Millions (ii) Export Packing Credit Rs.250.000 Millions (B)Non-fund Based Working Capital limit Rs.400.000 Millions (i) Letter of Credit Rs.200.000 Millions (ii) Bank Guarantee Rs.200.000 Millions |
FIXED ASSETS:
·
Land
·
Buildings and Roads
·
Plant and Machinery
·
Railway Siding
·
Furniture and Fixture
·
Office Equipments
·
Vehicles
WEBSITE DETAILS:
ORGANIZATION
PROFILE
TRL Krosaki Refractories Limited (Formerly
Tata Refractories Limited) was established in the year 1958 in the name of
Belpahar Refractories Limited. Subsequently the Company’s name was changed
to Tata Refractories Limited. After acquisition of 51% shares of Tata
Refractories Limited by Krosaki Harima Corporation, (KHC), Japan from Tata
Steel, Tata Refractories Limited has changed its name to “TRL Krosaki
Refractories Limited” with effect from June 03, 2011. Tata Steel will
continue to hold 26.46% equity stake in TRL Krosaki. Besides Krosaki Harima
Corporation and Tata Steel, TRL Krosaki has also equity participation
from Steel Authority of India Limited, the largest public sector steel producer
of India and Life Insurance Corporation of India, the largest public sector
Insurance Company. KHC and TRL Krosaki have jointly emerged as the 4th largest
refractories manufacturers in the world.
The development of the Refractories Industries
in India is inextricably linked with the growth of company.
Refractories are used in all high temperature processes to protect the reactors
and personnel from the influence of heat and hot materials. Thus, Refractories
are critical consumables in metallurgical and other industries where
pyro-processes are involved.
Company is
presently the largest producer of refractories in India, with a product
range comprising high alumina refractories, basic refractories, dolomite
refractories, silica refractories, Flow Control Products and monolithics
for standard and specialized applications for the Steel, Cement, Glass,
Non-ferrous and Petro-chemical industries both in India and
abroad. Company is the only Refractories Company
in India which manufactures and sells a wide range of sophisticated
refractories products. Company’s market share in India is
around 22%.
Company exports its products to various
countries. Around 14% of the annual turnover comes from Exports. The
Company has been accorded the status of an Export House by the Government of
India.
The Company has received the Integrated
Management System (IMS) Certificate. This IMS certification includes three
major international standards -ISO 9001:2008, ISO 14001: 2004 and OHSAS 18001:
2007.
Company is the first Refractories Company
in India to have received the IMS Certificate.
Besides supply of refractories, Company also offers to customers
Refractories Engineering and Management Services such as design, supply, erection
and commissioning and maintenance jobs of equipment where refractories
are used.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.64 |
|
|
1 |
Rs.87.46 |
|
Euro |
1 |
Rs.72.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.