MIRA INFORM REPORT
|
Report Date : |
22.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
GALLANTT METAL LIMITED |
|
|
|
|
Registered
Office : |
1, Crooked Lane, Second Floor, Room No. 222 and 223, Kolkata 700069,
West Bengal |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
07.02.2005 |
|
|
|
|
Com. Reg. No.: |
101553 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.813.223
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109WB2005PLC101553 |
|
|
|
|
IEC No.: |
0205004733 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RKTG00912C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCG2934J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
Stock Exchange. |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of production of Iron, Steel and
Power. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8020000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record.
There appears slight dip in profitability during 2012. However, general financial position seems to be good. Trade relations
are reported to be fair. Business is active. Payments are reported to be
usually correct and as per commitments. The company can be considered 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB [Long Term Bank Facilities] |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of financial
obligation it carry moderate credit risk. |
|
Date |
January 2013 |
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 : |
1, Crooked Lane, Second Floor, Room No. 222 and 223, Kolkata-700069, West
Bengal, India |
|
Tel. No.: |
91-33-22312429 |
|
Fax No.: |
91-33-22312429 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Gallant Landmark, Bank Road, Gorakpur-273001, Uttar Pradesh, India |
|
Tel. No.: |
91-551-2205175 |
|
Fax No.: |
91-551-2205175 |
|
Email: |
|
|
|
|
|
Factory 1: |
Survey # 175/1, Near Toll Gate, Samakhiyali, Taluka Bachau, District
Kutch, Gujarat, India |
|
|
|
|
Factory 2 : |
Near Toll Gate,
Village Samakhiyali, Taluka Bachau,
Kutch, Gujarat, India |
|
Tel. No.: |
91-2387-283555/ 238557 |
|
Fax No.: |
91-2387-267307 /
283690 |
|
E-Mail : |
|
|
|
|
|
Branch Office: |
Sidhi Vinayak, 101
Ward, 10 BC, Opposite IFFCO Colony, Gandhidham-370201, Gujarat, India |
|
Tel. No.: |
91-2836-395626 |
|
Fax No.: |
91-2836-235787 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Chandra Prakash Agarwal |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Mr. Dinesh R Agarwal |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Nitin M Kandoi |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Maheshkumar Hukmichand Gupta |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Rajesh Kumar Jain |
|
Designation : |
Non-Executive Independent Director |
|
|
|
|
Name : |
Mr. Jyotirindra Nath Dey |
|
Designation : |
Non Executive Independent Director |
|
|
|
|
Name : |
Mr. Prasant Kankrania |
|
Designation : |
Non Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Upaddhyaya |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee: |
Mr. Prasant
Kankrania - Chairman Mr. Rajesh Kumar
Jain Mr. Jyotirindra Nath Dey |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3672533 |
4.52 |
|
|
37805716 |
46.49 |
|
|
41478249 |
51.00 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
41478249 |
51.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5000000 |
6.15 |
|
|
5000000 |
6.15 |
|
|
|
|
|
|
24016361 |
29.53 |
|
|
|
|
|
|
4070920 |
5.01 |
|
|
4575855 |
5.63 |
|
|
2180939 |
2.68 |
|
|
5000 |
0.01 |
|
|
1524113 |
1.87 |
|
|
651826 |
0.80 |
|
|
34844075 |
42.85 |
|
Total Public shareholding (B) |
39844075 |
49.00 |
|
Total (A)+(B) |
81322324 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
81322324 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of production of Iron, Steel and
Power. |
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|
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|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||
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|
Bankers : |
·
State
Bank of India ·
Bank
of Baroda ·
State
Bank of Indore ·
State
Bank of Hyderabad ·
State
Bank of Mysore ·
UCO
Bank ·
State
Bank of Travancore ·
State
Bank of Patiala ·
ICICI
Bank · HDFC Bank |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A.K. Meharia and Associates Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
U. Tiwari and Associates Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
83000000 |
Equity Shares |
Rs.10/- each |
Rs.830.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
81322324 |
Equity Shares |
Rs.10/- each
|
Rs.813.223
Millions |
NOTES:
TERMS/RIGHTS
ATTACHED TO EQUITY SHARES
The
Company has only one class of equity shares having a par value of Rs.10 per
share. Each holder of equity shares is entitled to one vote per share. The
dividend proposed by the Board of Directors is subject to the approval of the
shareholders except in the case of interim dividend. In the event of
liquidation, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts in
proportion of their shareholding.
DETAILS
OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY
|
NAME OF SHAREHOLDERS |
AS ON 31.03.2012 |
|
|
|
NO. OF SHARES |
% OF HOLDING |
|
Gallantt Udyog Limited |
24113127 |
29.65 |
|
Hipoline Commerce Private Limited |
11710000 |
14.40 |
|
Lexi Export Private Limited |
11503600 |
14.15 |
|
Elara India Opportunities Fund Limited |
5000000 |
6.15 |
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 |
|
813.223 |
813.223 |
|
(b) Reserves & Surplus |
|
1194.271 |
1048.838 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
379.056 |
603.264 |
|
(b) Deferred tax liabilities (Net) |
|
187.819 |
179.704 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
|
|
|
|
|
(4)
Current liabilities |
|
|
|
|
(a) Short
term borrowings |
|
572.344 |
314.298 |
|
(b) Trade
payables |
|
326.042 |
263.001 |
|
(c) Other
current liabilities |
|
298.429 |
338.220 |
|
(d) Short-term
provisions |
|
152.076 |
208.395 |
|
TOTAL |
|
3923.260 |
3768.943 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
2044.183 |
2151.753 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
6.357 |
5.896 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
426.037 |
291.037 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d)
Long-term Loan and Advances |
|
3.935 |
3.935 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
618.892 |
480.019 |
|
(c) Trade
receivables |
|
334.935 |
215.540 |
|
(d) Cash
and cash equivalents |
|
110.197 |
66.348 |
|
(e)
Short-term loans and advances |
|
58.713 |
267.522 |
|
(f) Other
current assets |
|
320.011 |
286.893 |
|
TOTAL |
|
3923.260 |
3768.943 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
813.223 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
819.613 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1632.836 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1415.217 |
|
|
2] Unsecured Loans |
|
|
191.709 |
|
|
TOTAL BORROWING |
|
|
1606.926 |
|
|
DEFERRED TAX LIABILITIES |
|
|
166.713 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3406.475 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
2264.835 |
|
|
Capital work-in-progress |
|
|
7.744 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
86.519 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
435.635
|
|
|
Sundry Debtors |
|
|
181.532
|
|
|
Cash & Bank Balances |
|
|
78.583
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
788.909
|
|
Total
Current Assets |
|
|
1484.659 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
248.837
|
|
|
Other Current Liabilities |
|
|
41.209
|
|
|
Provisions |
|
|
152.152
|
|
Total
Current Liabilities |
|
|
442.198
|
|
|
Net Current Assets |
|
|
1042.461
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
4.916 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3406.475 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5853.236 |
5566.833 |
4331.159 |
|
|
|
Other Income |
28.499 |
117.748 |
11.612 |
|
|
|
TOTAL (A) |
5881.735 |
5684.581 |
4342.771 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost
of raw material and component consumed |
4939.385 |
4617.465 |
|
|
|
|
Employee
benefit expenses |
67.392 |
56.669 |
3695.490 |
|
|
|
Other
expenses |
460.782 |
409.601 |
|
|
|
|
Changes
in inventory of finished goods and work in progress |
(54.282) |
3.537 |
|
|
|
|
TOTAL (B) |
5413.277 |
5087.272 |
3695.490 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
468.458 |
597.309 |
647.281 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
159.469 |
137.965 |
140.061 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
308.989 |
459.344 |
507.220 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
155.354 |
156.750 |
147.956 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
153.635 |
302.594 |
359.264 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.202 |
73.369 |
123.776 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
145.433 |
229.225 |
235.488 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
943.838 |
714.613 |
479.125 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1089.271 |
943.838 |
714.613 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.79 |
2.82 |
2.90 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1900.400 |
1526.700 |
1525.200 |
1675.100 |
|
Total Expenditure |
1760.800 |
1411.900 |
1394.500 |
1511.900 |
|
PBIDT (Excl OI) |
139.600 |
114.800 |
130.700 |
163.200 |
|
Other Income |
00.900 |
20.300 |
16.700 |
08.800 |
|
Operating Profit |
140.500 |
135.100 |
1474. 00 |
172.000 |
|
Interest |
36.100 |
23.000 |
26.200 |
18.100 |
|
PBDT |
104.300 |
112.200 |
121.200 |
153.900 |
|
Depreciation |
39.100 |
40.000 |
40.200 |
39.800 |
|
Profit Before Tax |
65.200 |
72.200 |
81.000 |
114.100 |
|
Tax |
0.000 |
0.000 |
0.000 |
15.000 |
|
Profit After Tax |
65.200 |
72.200 |
81.000 |
99.100 |
|
Net Profit |
65.200 |
72.200 |
81.000 |
99.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.47
|
4.03 |
5.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.62
|
5.44 |
8.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.40
|
8.72 |
9.58 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.16 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.47
|
0.49 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
1.17 |
3.35 |
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 |
No |
|
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 |
-- |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 Loan |
As
on 31.03.2012 [Rs.
in Millions] |
As
on 31.03.2011 [Rs.
in Millions] |
|
Long Term
Borrowings |
|
|
|
Deferred Sales Tax Loan |
1.956 |
2.445 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Foreign Currency Loans Buyers Credit |
181.721 |
0.000 |
|
TOTAL
|
183.677 |
2.445 |
RESULTSOFOPERATIONS:
During
the year the Company has reported a turnover of Rs. 5853.236 Millions. The
operating profit stood at Rs. 468.457 Millions. The Profit before Tax and
Profit After Tax remains Rs. 153.634 Millions and Rs. 145.432 Millions
respectively. Financial Year 2011-12 was a challenging year. The Global as well
as Indian economy witnessed lower economic growth. Rising inflation,
depreciating currency and rising cost of inputs were the buzz word during the
year under report. Despite these constraints and the challenging environment,
the Company performed reasonably well. Profitability of the Company remains
lesser than that of previous year mainly due to increase in input cost.
PROJECTS
AND EXPANSION INITIATIVES
The
Company has decided to set-up a new Pellet plant with beneficiation unit at
Village-Halavarthi, Taluka and District - Koppal, Karnataka. Company has
acquired a land of 106 acres (approx.) for the expansion plan as above and has
also obtained clearances for the new project from the Karnataka Government and
Ministry of Environment and Forests.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC
SCENARIO:
Global
Economy on the whole has been on the path of recovery. US economy has shown
signs of modest recovery which has reflected in improved consumer spending and
fall in unemployment rate. However, as sustainable solution to the euro area
debt crisis is yet to emerge.
The
Indian economy grew 6.9% in 2011-12 against 8.4% in 2010-11. The Indian Economy
has moved to a slower growth phase reflecting the impact of continued monetary
tightening. Global factors such as euro zone crisis, geopolitical disturbances
and weather extremities contributed to the domestic economic slowdown. Domestic
factors like monetary tightening and raising repo rate to control inflation
slowed industrial investment and growth. GDP growth during April - December
2011 has moderated to 6.9 percent.
The
industrial sector was plagued by multiple issues. Inflation eroded margins.
Interest rate hikes throttled consumer spending. The depreciation of the Indian
rupee against the US dollar eroded corporate profitability. The euro zone
turmoil affected exports. Despite lower growth, India retained its position
among the world's fastest growing economies.
Inflation
continued to be the primary macroeconomic concern of the Indian economy. The
Reserve Bank had raised the policy rate by 375 basis points during March 2010-
October 2011 to contain inflation and anchor inflationary expectations.
Corporate
found it increasingly difficult to pass on this rise in input cost to the
customers. This is evident from the fact that though corporate performance in
the country was relatively robust during the year, earnings before
depreciation, interest and tax (EBDITA) and Profit After Tax (PAT) margins
showed a downward trend.
INDUSTRY
STRUCTURE AND DEVELOPMENTS:
The
steel sector indicates a region's economic health. Over the last decade, the
sector has grown phenomenally, primarily due to growth in the BRIC (Brzil,
Russia, India and China) nations. Since, 2001, the sector witnessed a major
rally and downturn, but overall, global steel production grew at a compounded
rate of around 6.0% while consumption increased at a CAGR 5.9%.
The
annualized global steel production peaked at June 2011 with 1,576 MnT which got
reduced to a low of 1,420 MnT in November, 2011 - a reflection of economic
slowdown in certain parts of the Globe. Global Steel production touched 1,527
MnT in 2011 against 1,430 MnT in 2010, an increase of 6.8% over the previous
year. All major steel producing countries apart from Japan reported growth;
this was particularly robust in Turkey, South Korea and Italy.
The
Indian Steel Industry is largely iron-based through the Blast Furnace (BF) or
the Direct Reduced Iron (DRI) route. The Indian Steel sector witnessed rapid
growth over the past decade; domestic crude steel capacity more than doubled to
reach 89 mtpc in the fiscal ended March, 2012. India's steel industry is highly
consolidated; about 60% of the crude steel capacity is resident with integrated
steel producers (ISPs); a majority of ISPs are located in eastern India,
contributing to 50% of total ISP capacity. But the changing ratio of hot metal
to crude steel production indicates the increasing presence of secondary steel
producers manufacturing steel through the scrap route, enhancing their
dependence on imported raw material.
FUTURE
OUTLOOK:
Despite
concerns of a slowing economy in the near term and the consequent impact on the
Real Estate, the overall outlook for the steel industry is positive.
Infrastructure investments in roads, growing income of the country's middle
class, increasing mechanization of agriculture and the continued ready
availability of loan finance for housing and other infrastructure will act as
an impetus to steel sales.
FIXED ASSETS:
- Land
- Building
- Plant and
Machinery
- Miscellaneous
Fixed Assets
- Computer
- Furniture and
Fixture
- Office
Equipments
- Vehicles
- C.I. Mould
- Rolls
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.59.35 |
|
|
1 |
Rs.92.11 |
|
Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.