MIRA INFORM REPORT
|
Report Date : |
14.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
JINDAL SAW LIMITED (w.e.f. February 07, 2005) |
|
|
|
|
Formerly Known
As : |
SAW PIPES LIMITED |
|
|
|
|
Registered
Office : |
A-1,
UPSIDC Industrial Area, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
31.10.1984 |
|
|
|
|
Com. Reg. No.: |
20-023979 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.552.458 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27104UP1984PLC023979 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AGRS10410B |
|
|
|
|
Legal Form : |
A Public
Limited Liability Company. The company’s shares are Listed on the Stock
Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing
of Thick Walled Pipes, Submerged-Arc-Welded Pipes, Cold-Rolled Steel Coils
and Seamless Tubes. |
|
|
|
|
No. of Employees
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 140000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
flagship company of the Jindal Group. It has the commanding position in India
tubular market. It is having good
track record. There appears sharp fall in the profitability in the current year.
However, financial company seems strong. Fundamental are healthy. Liquidity
position is good. Trade relations are reported to be fair. Business is
active. Payments are reported to be regular and as per commitment. The company can
be considered for normal business dealings at usual trad terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based limited: A1 |
|
Rating Explanation |
Having strong degree of safety regarding timely
payment of financial obligation it carry lowest credit risk. |
|
Date |
March 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/ Factory 1 : |
A-1 UPSIDC Industrial Area, |
|
Tel. No.: |
91-5662-252277/ 252224/ 232426/ 232001/ 02/ 03 |
|
Fax No.: |
91-5662-232577 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
‘Jindal Centre’, 12, |
|
Tel. No.: |
91-11-26188360–74/ 26188345 |
|
Fax No.: |
91-11-26170691/ 41659575 |
|
E-Mail : |
|
|
|
|
|
Factories : |
MUNDRA - IPU Village: Samaghogha, Pragpar - Phone : 91-2838-240755-756, 240773 Fax : 91-2838-240700 MUNDRA - JCO S.No. 94/1, 94/2 and 96, Village: Nanakapaya Taluka: Mundra, District
Kutch – 370 415, Phone: 91-2838-287305-06 Fax : 91-2838-22700 NASHIK A-59-60 Fax : 91-2551-230967 |
|
|
|
|
Regional Offices : |
MUMBAI Phone : 91-22-23513000 Fax : 91-22-23521889 AHMEDABAD 601, Phone : 91-79-26431323 Fax : 91-79-26431433 H. No. 8-2-618/2/2/A, Plot No. 25, Road No. 10 , Classic Emerald Lane,
Near Rainbow Hospital, Banjara Hills, Hyderabad, Andhra Pradesh, India Phone : 91-40-55778694 / 95 6th Floor, East Wing, Phone : 91-80-25559869/ 73 Fax : 91-80-25598898 CHENNAI 4-B, Phone : 91-44-4213 2033, 4204 3737 Fax : 91-44-4204 3737 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mrs. Savitri Devi Jindal |
|
Designation : |
Chairperson |
|
|
|
|
Name : |
Mr. Prithvi R. Jindal |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Indresh Batra |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Ms. Sminu Jindal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Devi Dayal |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S.K. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kuldip Bhargava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Raj Kamal Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravinder Nath Leekha |
|
Designation : |
Director |
|
|
|
|
Name : |
M. Girish Sharma |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H.S. Chaudhary |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Jain |
|
Designation : |
Compliance Officer, Company Secretary |
|
|
|
|
Name : |
O. P. Sharma |
|
Designation : |
Chief Operating Officer - Large Dia. Pipe-SBU |
|
|
|
|
Name : |
Vikram Puri |
|
Designation : |
Vice President-Human Resources |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1635300 |
0.59 |
|
|
93800500 |
33.96 |
|
|
95435800 |
34.55 |
|
|
|
|
|
|
98700 |
0.04 |
|
|
31514985 |
11.41 |
|
|
31613685 |
11.44 |
|
Total shareholding of Promoter and Promoter Group (A) |
127049485 |
46.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
23752704 |
8.60 |
|
|
170495 |
0.06 |
|
|
7063628 |
2.56 |
|
|
51678284 |
18.71 |
|
|
82665111 |
29.93 |
|
|
|
|
|
|
48417723 |
17.53 |
|
|
|
|
|
|
15321292 |
5.55 |
|
|
1546991 |
0.56 |
|
|
1222919 |
0.44 |
|
|
271134 |
0.10 |
|
|
938985 |
0.34 |
|
|
12800 |
0.00 |
|
|
66508925 |
24.08 |
|
Total Public shareholding (B) |
149174036 |
54.00 |
|
Total (A)+(B) |
276223521 |
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) |
276223521 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Thick Walled Pipes, Submerged-Arc-Welded Pipes, Cold-Rolled Steel Coils
and Seamless Tubes. |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity per Annum |
Actual
Production |
|
(a) Iron and Steel Pipes |
MT |
2,260,000 |
692,309 |
|
(b) Anti-Corrosion Coating on Pipes |
Sq.Mtr |
12,000,000 |
4,255,903 |
|
(c) Pig Iron |
MT |
200,000 |
375 |
|
(d) Power |
KWH in lacs |
1971 |
938 |
Notes:
1. The above production also includes goods manufactured
for outside parties on job work basis as follows:
|
|
Unit |
Year ended 31st
March, 2011 |
|
i) Steel Pipes |
MT |
2,117 |
|
|
|
|
2. Above Production includes production before
start of Commercial production.
3. The above production of Anti Corrosion
coating of Pipes includes the coating done for Steel Pipes Division
4. Licensed capacity is not applicable in view
of the Company’s products having been delicensed as per the Liberalised
Licensing Policy announced by the Government of India.
5. Installed capacity is as certified by the
management.
6. The above production of Power includes
Captive consumption of 898 lacs KWH.
GENERAL INFORMATION
|
Customers : |
Domestic Customers
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
No. of Employees : |
1500 (Approximately) |
||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
|
Facilities : |
Notes: 10.75% Non
Convertible Debentures of Rs.3000.000 Millions are secured by way of English
mortgage on the Company's immovable properties located in the state of
Gujarat and byway of equitable mortgage of Company's immovable properties at
other locations and hypothecation of moveable fixed assets in favour of
debenture trustees. The same are repayable in three equal installments of Rs.1000.000 Millions each on 8th April,
2015, 8th April, 2016 and 8th April, 2017. Term Loans of RS.1370.000 Millions (rate of interest 1.50% p.a.) is secured/to be secured by way of second charge on the assets of the Company and also by way of personal guarantee of Promoter Director. The same is repayable in three installments of Rs.411.000 Millions, Rs.411.000 Millions and Rs, 548.000 Millions on3lst Jan, 2017 31st Jan, 20l8and3lst Jan, 2019 respectively. 3. There is no default in repayment of principal and interest thereon. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors
: |
|
|
Name : |
N.C. Aggarwal and Company Chartered
Accountants |
|
Address : |
|
|
|
|
|
Internal Auditors :
|
Singhi
and Company Chartered
Accountants T.R.
Chadha and Company Chartered
Accountants |
|
|
|
|
Subsidiaries : |
Direct Subsidiaries:
Indirect
Subsidiaries (Control Exist):
|
|
|
|
|
Joint Venture : |
v
Jindal Sigma Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.2/- each |
Rs.1000.000 millions |
|
10000000 |
Redeemable Non
Convertible Cumulative Preference Shares |
Rs.100/- each |
Rs.1000.000 millions |
|
|
Total |
|
Rs.2000.000 millions |
Issued & Subscribed Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
276230771 |
Equity Shares |
Rs.2/- each |
Rs.552.462
millions |
|
10000000 |
7.85% Redeemable
Non Convertible Cumulative Preference Shares |
Rs.100/- each |
-- |
|
|
Total |
|
Rs.552.462 millions |
Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
276226771 |
Equity Shares |
Rs.2/- each |
Rs.552.454 millions |
|
|
Add: Forfeited
4000 Equity Shares of Rs.2/- each (Partly Paid up Re.1/- each) |
|
Rs.0.004 million |
|
10000000 |
7.85% Redeemable Non Convertible Cumulative Preference Shares |
Rs.100/- each |
-- |
|
|
Total |
|
Rs.552.458 millions |
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 |
|
552.458 |
552.458 |
|
(b) Reserves & Surplus |
|
34976.693 |
39659.416 |
|
(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 |
|
9686.737 |
890.573 |
|
(b) Deferred tax liabilities (Net) |
|
1025.159 |
2266.478 |
|
(c) Other long term
liabilities |
|
0.774 |
4.420 |
|
(d) long-term
provisions |
|
288.972 |
222.184 |
|
|
|
|
|
|
(4) Current
liabilities |
|
|
|
|
(a) Short term
borrowings |
|
15166.847 |
11552.781 |
|
(b) Trade
payables |
|
4368.885 |
3183.658 |
|
(c) Other current
liabilities |
|
9350.930 |
9511.675 |
|
(d) Short-term
provisions |
|
382.652 |
369.081 |
|
|
|
29269.314 |
24617.195 |
|
TOTAL |
|
75800.107 |
68212.724 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible
assets |
|
20291.821 |
19182.981 |
|
(ii) Intangible
Assets |
|
84.165 |
72.200 |
|
(iii) Capital
work-in-progress |
|
6914.080 |
3441.740 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
6989.654 |
6543.084 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
2528.508 |
2295.721 |
|
(e) Other
Non-current assets |
|
196.008 |
81.876 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a) Current
investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
18035.025 |
16482.029 |
|
(c) Trade
receivables |
|
12896.217 |
12346.115 |
|
(d) Cash and cash
equivalents |
|
1722.158 |
932.491 |
|
(e) Short-term
loans and advances |
|
6073.224 |
6743.873 |
|
(f) Other current
assets |
|
69.247 |
90.614 |
|
TOTAL |
|
75800.107 |
68212.724 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
1547.234 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
34865.264 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
36412.498 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
891.890 |
|
|
2] Unsecured Loans |
|
|
6478.698 |
|
|
TOTAL BORROWING |
|
|
7370.588 |
|
|
DEFERRED TAX LIABILITIES |
|
|
1858.078 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
45641.164 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
18665.434 |
|
|
Capital work-in-progress |
|
|
2666.760 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
6198.712 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
7902.667
|
|
|
Sundry Debtors |
|
|
7940.611
|
|
|
Cash & Bank Balances |
|
|
1656.094
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
9816.255
|
|
Total Current Assets |
|
|
27315.627
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
2372.423
|
|
|
Other Current Liabilities |
|
|
5956.099
|
|
|
Provisions |
|
|
876.847
|
|
Total Current Liabilities |
|
|
9205.369
|
|
|
Net Current Assets |
|
|
18110.258
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
45641.164 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
51979.031 |
41939.417 |
67774.635 |
|
|
|
Other Income |
933.311 |
625.412 |
175.951 |
|
|
|
TOTAL (A) |
52912.342 |
42564.829 |
67950.586 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
38906.067 |
24682.697 |
|
|
|
|
Purchase of stock-in-trade |
318.595 |
321.230 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(4687.800) |
(135.690) |
|
|
|
|
Employee benefit Expenses |
2374.616 |
2050.179 |
|
|
|
|
Other Expenses |
8727.254 |
6715.247 |
|
|
|
|
Exceptional Items |
1408.060 |
0.000 |
|
|
|
|
TOTAL (B) |
47046.792 |
33633.663 |
55116.958 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5865.550 |
8931.166 |
12833.628 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
1139.289 |
1509.936 |
1841.849 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4726.261 |
7421.230 |
10991.779 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1496.579 |
1366.644 |
1312.695 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3229.682 |
6054.586 |
9679.084 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
987.800 |
1413.925 |
2447.402 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2241.882 |
4640.661 |
7231.682 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS YEAR
ADJUSTMENT |
20.100 |
(25.100) |
0.665 |
|
|
|
|
|
|
|
|
|
|
FOREIGN EXCHANGE
TRANSLATION DIFFERENCE |
(1.300) |
0.100 |
60.041 |
|
|
|
|
|
|
|
|
|
Add |
DEBENTURE
REDEMPTION RESERVE WRITTEN BACK |
-- |
-- |
187.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
DEPRECATION WRITTEN BACK |
-- |
-- |
11.823 |
|
|
|
|
|
|
|
|
|
Add |
SURPLUS BROUGHT
FORWARD ON AMALGMATION |
-- |
-- |
34.885 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1444.200 |
2191.200 |
2181.712 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1500.000 |
4000.000 |
7000.000 |
|
|
|
Dividend |
276.200 |
276.200 |
345.284 |
|
|
|
Tax on Dividend |
44.800 |
44.900 |
57.919 |
|
|
|
Debenture Redemption Reserve |
196.000 |
0.000 |
0.000 |
|
|
|
Capital Redemption Reserve |
0.000 |
1000.000 |
0.000 |
|
|
|
Interim Dividend paid on Preference Shares |
0.000 |
35.700 |
94.415 |
|
|
|
Corporate dividend tax on above |
0.000 |
5.900 |
16.046 |
|
|
BALANCE CARRIED
TO THE B/S |
1687.900 |
1444.200 |
2191.203 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
26887.101 |
15792.493 |
25916.066 |
|
|
|
Revenue from Overseas Branch |
0.000 |
0.000 |
35.224 |
|
|
|
Interest |
17.235 |
22.413 |
37.703 |
|
|
|
Conversion Charges |
0.000 |
2.780 |
0.000 |
|
|
|
Carbon Credits |
44.788 |
59.952 |
0.000 |
|
|
|
Others |
28.780 |
0.780 |
0.000 |
|
|
TOTAL EARNINGS |
26977.904 |
15878.418 |
25988.993 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
21221.886 |
21385.261 |
23783.918 |
|
|
|
Stores & Spares |
727.598 |
391.650 |
255.056 |
|
|
|
Capital Goods |
1111.616 |
507.355 |
973.509 |
|
|
TOTAL IMPORTS |
23061.100 |
22284.266 |
25012.483 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
8.12 |
16.57 |
27.01 |
|
|
|
- Diluted |
8.12 |
16.00 |
25.12 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.012.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
12904.300 |
16369.300 |
17227.300 |
|
Total Expenditure |
11301.900 |
14390.800 |
15641.700 |
|
PBIDT (Excl OI) |
1602.400 |
1978.500 |
1585.600 |
|
Other Income |
183.700 |
225.400 |
225.400 |
|
Operating Profit |
1786.100 |
2203.900 |
1811.000 |
|
Interest |
323.300 |
376.700 |
417.900 |
|
Exceptional Items |
(566.400) |
(577.400) |
(158.800) |
|
PBDT |
896.400 |
1249.800 |
1234.300 |
|
Depreciation |
387.100 |
415.600 |
386.300 |
|
Profit Before Tax |
509.300 |
834.200 |
848.000 |
|
Tax |
157.400 |
223.100 |
247.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
351.900 |
611.100 |
600.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
351.900 |
611.100 |
600.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.24
|
10.90
|
14.24
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.21
|
14.44
|
14.28
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.22
|
10.40
|
21.05
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.15
|
0.27
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.64
|
0.34
|
0.20
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33
|
1.49
|
2.97
|
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 |
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 |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
31.03.2012 Rs. In Millions |
31.03.2011 Rs. In Millions |
|
Long Term Borrowing |
|
|
|
i) External Commercial Borrowings from Banks |
4707.336 |
0.000 |
|
ii) Deferred Sales Tax Loans |
434.248 |
515.762 |
|
iii) Deposits from Public |
175.153 |
374.811 |
|
Short Term Borrowing |
|
|
|
iv) From Banks |
|
|
|
- Short Term loan |
2097.417 |
535.800 |
|
- Buyers' credit |
3993.010 |
3498.877 |
|
v) Deposits from Public |
1.404 |
0.000 |
|
Total |
11408.568 |
4925.250 |
|
Note: Working
Capital Loans and Buyers' Credit are secured by hypothecation of finished
goods, raw-materials, work-in-progress, stores and spares, book debts and
secured/ to be secured by second charge in respect of other moveable and
immovable properties of the Company. |
||
REVIEW OF OPERATIONS
The Company produced app. 855000 MT pipes in FY 2011-12 as against 693000 MT in 2011-11 which is higher by app. 23%
Saw Pipe Segment: Sales under this segment remained volatile from quarter to quarter on account of the deliver/ schedules of the buyers as Jell as sales to new/first time customers where approvals for various stages took more than projected time. The operating profit (EBITDA) in Lange Diameter pipes remained under pressure largely due to significant competition, poor demand conditions in domestic and international markets and rising transportation costs.
DI Segment: The Company continued experiencing pressure of lower realization, higher coking coal prices and inconsistent availability of Iron Ore. Partial impact of higher coking coal may also be seen in Ql of FY 2012-13. The coking coal prices have already started softening and the impact on operations would be seen gradually.
Seamless Segment: This segment remained stable and they expect the improvement in production from FY 2012-13. Drill pipe unit has already received API approval and they are now looking at securing orders for the same.
OVERVIEW
They are India's most diversified manufacturer and supplier of pipe products for the energy, water industry and other industrial applications. Their customers include most of the world's leading oil and gas companies, municipal corporations as well as engineering companies engaged in oil and gas gathering, water transportation system, power and automobile facilities. Their principal products include (a) large diameter SAW pipes (Longitudinal Submerged Arc Welded (LSAW) and Helically Submerged Arc Welded (HSAW)), (b) Seamless Tubes, and (c) Ductile Iron (DI) pipes. Their manufacturing facilities are located in various parts in western, northern and southern part of India. Their Indian production facilities produce pipes to meet global specifications and standards. They sell approx. 50% of their products (primarily large diameter SAW pipes and Seamless Tubes) in global markets. They have a drill pipe facility in Texas, USA which has also become operational.
In DI Pipe segment, they have received approvals of various countries for executing export orders. In FY20I3 the Company expects to export good volumes to MENA region, UK, Europe etc. To create a significant presence and cater to the demand of export market, they have taken various steps including (a) setting up a DI pipe plant in India with focus on export markets; (b) setting up a state -of- the -art DI pipe plant in Abu Dhabi(UAE) primarily for MENA region and West Asia and (c) operating an Italian (Europe) DI Pipe plant producer for operations and sales in Europe and other markets.
They have also executed a mine lease agreement with the State Government of Rajasthan in relation to iron ore mines in district Bhilwara. These mines have low quality iron ore which shall be first improvised and thereafter part of the iron ore shall be used for the Company's DI pipe plants in Mundra (Gujarat) and the balance shall be converted into pallets. They expect to commence and stabilize operations in beneficiation plant in quarter ending September 20I2 and the pallet plant is expected to commence operations in quarter ending June 20I3. Company' efforts in the iron ore vertical shall create jobs in the State of Rajasthan, increase revenue to the exchequer and facilitate conversion of sewage water to industrial water
PIPE INDUSTRY
DYNAMICS
FOR OIL AND GAS
INDUSTRY
Dynamics of the steel pipes and tubes industry are closely intertwined with the trends in the construction and oil and gas industries and also influenced by the pace of infrastructure development projects.
As a result, economic development and industrialization are primary growth drivers for the global steel pipes and tubes market. The steel and non-ferrous pipes and tubes market witnessed a sharp decline in demand during the recession. Steel pipe industry, which is largely dependent on the spending in sectors such as natural gas exploration, non-residential and residential construction, consumer goods manufacture, highway spending and agricultural spending, witnessed downward trend due to the weakening economic conditions. The decline was evident across various sectors of the steel industry including tubular steel, stainless steel, substrate metal, and steel tubes.
The increasing energy security investments of global governments particularly from developing regions are likely to generate steady demand for steel pipes. In developed countries, growth opportunities are anticipated due to the need for replacement of existing pipeline systems that are more than 25 years old. Rapidly expanding population, improving standards of living, and steady economic growth are expected to significantly enhance the demand for various forms of energy including oil and gas. While liquid fuels would continue to be used widely, natural gas is set to emerge as the fastest growing fuel source owing to its energy conserving characteristic, which in turn is likely to enhance demand for pipeline systems. The increasing demand for natural gas and oil and the enhanced investment n the production and exploration activities is driving growth n the global oil country tubular goods (OCTG) market. Rising demand for oil and energy from the emerging markets - in particular India and China, and the subsequent growth in drilling activity is expected to fuel the demand OCTG pipes. Escalating prices of oil and gas are also fuelling drilling activity, thereby enhancing the demand for OCTG pipes.
FOR WATER INDUSTRY
Pipes are vital to the global water industry; they connect source to consumer efficiently, economically and reliably. Because the journey of water from source to treatment plant to consumer to waste treatment and ultimately back to the source can take many different paths, a wide variety of materials and sizes has arisen to best handle each segment of the trip. In most regions of the world, water must be moved in large volumes from source to market, typically in canals or large diameter pipe.
The market for water pipes is strong and the worldwide demand s approximately $50 billion. Over the next five years, GWI estimates the global domestic water industry will continue to grow at 2.5-3%, and then accelerate to 6.5-7.5% in the next decade as rehabilitation, increased service to growing populations and a surge in private investment which ensures a glowing future for the water pipes industry.
SUBJECT - OPERATIONS
AND STRATEGY
Subject is the most diversified Indian pipe Company with capacity that caters for oil and gas utility companies (SAW pipes), exploratory drilling and industrial capex-related industries (seamless pipes), and water infrastructure (DI pipes). The Company follows a strategy to de-risk its business model by way of horizontal expansion as well as by diversifying in the high value added business areas. Company' initiative in iron ore mining would not only provide a stable source of iron ore for its DI pipe making facilities in India but the value addition s expected to boost its profitability, in the time to come.
The Company believes that a right blend of sales in domestic and global markets with low cost of operations would improve the credit quality and provide superior returns to its shareholders. The Company is also mindful of short to medium term market challenges and thus intends to create a model for long term sustainability.
JINDAL SAW- STRATEGIC
VISION
The Company' strategic vision includes:
·
Focus on
manufacturing products to meet highest standards for domestic and international
markets.
·
Enhancing Seamless
and welded pipe (L SAW and H SAW) product mix to increase productivity,
efficiency and product margins.
·
Positioning the
Company as a global producer and supplier of DI Pipes by having capacities in
various parts of the world and through strategic alliances.
·
Capitalize on Iron
Ore mines for long term sustainable benefits while complying to all the
regulations
JINDAL SAW -
COMPETITIVE STRENGTHS
The Company's main
competitive strengths include:
·
Its multi-location
and primarily port based production facilities and most diversified product
range;
·
Its solid and
diversified customer base and historic relationships with major international
oil and gas companies around the world with proximity to customers;
·
Its human resources;
·
Its low-cost
operations, primarily at state-of-the art, strategically located production
facilities with favourable access to raw materials, energy and labour, and 25
years of operating experience; and
·
Its strong financial
condition.
BUSINESS OUTLOOK
India is currently witnessing huge oil and gas activity on the E & P front. With the current oil and gas activities on the E & P front, the demand for pipes is expected to pick up to meet the domestic demand and for sustaining the demand for future supplies. So it will drive the demand for pipes and fittings. The industry has a promising future with the demand for crude oil expected to go up with resurging economic activities and this will benefit the ancillary industries like pipe.
Owing to the accelerated growth in the infrastructure industry, resulting in large-scale construction and development activity, the pipes and fittings industry is a rapidly growing industry. In common parlance, pipes are essential for connectivity, be it for water supply inlets to provide for clean and waste water distribution systems, agriculture watering system, liquid discharge installations, water sprinkling systems, sanitation and sewerage disposals etc.
After seeing a slowdown in previous years, the domestic pipe industry is expected to witness strong growth due to huge investments in oil and gas in India. The government thrust on water supply and irrigation is also expected to contribute to the domestic demand. With an established track record, proximity to key markets like the Middle East and rising international client accreditations, the industry is increasing its presence in global market. It expects exports to grow at compounded rate of 8-9 percent over the next years. The export opportunity could be further propelled by the expected emergence of replacement demand from USA. With the current oil and gas activities on the E&P front, the demand for pipes will pick up to meet the domestic demand and for sustaining the demand for the future supplies. Domestic market conditions more particularly Boiler and automobiles sectors, have also improved. Also the demand outlook in export market has improved and demand is likely to move up gradually.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2012 (Rs. In
Millions) |
31.03.2011 (Rs. In
Millions) |
|
a) Guarantee issued by the Company’s bankers on behalf of
the Company |
8740.313 |
9326.313 |
|
b) Letter of Credit Outstanding |
9290.142 |
9036.715 |
|
c) Bills discounted by banks |
0.000 |
893.000 |
|
d) Claims against the company not acknowledged as debts |
49.521 |
85.600 |
|
e) Corporate guarantees/ undertaking issued to lenders of
subsidiary companies |
4360.991 |
1287.851 |
|
f) Disputed Excise Duty, Custom Duty and Service Tax |
21.213 |
16.229 |
|
g) Income tax demands against which company has preferred
appeals |
195.058 |
122.466 |
|
h) Disputed Sales Tax |
65.000 |
59.593 |
|
i) Liability in respect of Corporate Guarantee/ Duty Saved
for availing various export based incentive schemes |
1147.951 |
1024.926 |
AUDITED FINANCIAL RESULTS FOR THE
QUARTER AND YEAR ENDED 31ST MARCH 2013
(Rs. In Millions)
|
S. No. |
Particulars |
Quarter Ended |
Year
Ended |
|
|
|
|
31.03.2013 |
31.12.2012 |
31.03.2012 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
1 |
Income from Operations |
|
|
|
|
|
(a) Net Sales /Income from Operations |
9790.400 |
17220.100 |
56128.600 |
|
|
(Net of excise duty) |
|
|
|
|
|
(b) Other Operating Income |
10.300 |
7.200 |
38.400 |
|
|
Total Income from Operations (net) |
9800.700 |
17227.300 |
56167.000 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
6608.300 |
8925.600 |
35767.000 |
|
|
(b) Purchases of Stock-in-Trade |
213.800 |
- |
213.800 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and
Stock-in-Trade |
(569.500) |
3665.00 |
2308.100 |
|
|
(d) Employee benefits expense |
633.600 |
641.700 |
2522.600 |
|
|
(e) Depreciation and amortization expense |
360.500 |
386.300 |
1549.500 |
|
|
(f) Other expenses |
1884.900 |
2409.400 |
9327.700 |
|
|
Total expenses |
9131.600 |
16028.000 |
51688.700 |
|
3 |
Profit/ (Loss) from Operations before other Income, finance costs and
Exceptional Items (1 -2) |
669.100 |
1199.300 |
4478.300 |
|
4 |
Other Income |
189.600 |
225.400 |
824.100 |
|
5 |
Profit / (Loss) from ordinary activities before finance costs and Exceptional
Items (3+4) |
858.700 |
1424.700 |
5302.400 |
|
6 |
Financial costs |
382.900 |
417.900 |
1500.800 |
|
7 |
Profit/(Loss) from ordinary activities after finance costs but before Exceptional Items (5-6) |
475.800 |
1006.800 |
3801.600 |
|
8 |
Exceptional Items (note 1) |
8.100 |
158.800 |
1142.400 |
|
9 |
Profit/(Loss) from Ordinary Activities |
|
|
|
|
|
before tax (7-8) |
467.700 |
848.000 |
2659.200 |
|
10 |
Tax expense (note 2) |
96.900 |
247.700 |
725.100 |
|
11 |
Net Profit/(Loss) from Ordinary Activities after tax (9-10) |
370.800 |
600.300 |
1934.100 |
|
12 |
Extraordinary Items (Net of Tax expense) |
- |
- |
- |
|
13 |
Net Profit/(Loss) for the period (11-12) |
370.800 |
600.300 |
1934.100 |
|
14 |
Paid up equity share capital ( Rs. 2 per share) |
552.500 |
552.500 |
552.500 |
|
15 |
Reserves excluding Revaluation Reserves |
|
|
36690.300 |
|
16.i |
Earnings Per Share before Extraordinary items |
|
|
511.200 |
|
|
(on Face Value of Rs. 21- each) (not annualized): |
|
|
|
|
|
Basic |
1.34 |
2.17 |
6.98 |
|
|
Diluted |
1.34 |
2.17 |
6.98 |
|
16.N |
Earnings Per Share after Extraordinary items |
|
|
|
|
|
(on Face Value of Rs. 2/- each) (not annualized): |
|
|
|
|
|
Basic |
1.34 |
2.17 |
6.98 |
|
|
Diluted |
1.34 |
2.17 |
6.98 |
|
17 |
Debt Equity Ratio |
|
|
0.88 |
|
18 |
Debt Service Coverage Ratio |
|
|
3.31 |
|
19 |
Interest Service Coverage Ratio |
|
|
3.80 |
|
PART II |
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
— Number of shares |
149,174,036 |
149,174,036 |
149,174,036 |
|
|
— Percentage of shareholding |
54.00 |
54.00 |
54.00 |
|
2 |
Promoters and promoter group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
— Number of shares |
- |
- |
- |
|
|
— Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
|
|
|
|
|
— Percentage of shares (as a % of the total share capital of company) |
- |
- |
- |
|
|
b) Non-encumbered |
|
|
|
|
|
— Number of shares |
127,049,485 |
127,049,485 |
127,049,485 |
|
|
— Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
— Percentage of shares (as a % of the total share capital of company) |
46.00 |
46.00 |
46.00 |
INVESTOR COMPLAINTS
|
PARTICULARS |
QUARTER ENDED
(31.03.2013) |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
disposed off during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
1 (Since resolved) |
Notes:
- Exceptional items for the year 2012-13 comprise of differences on
account of foreign exchange transactions related to finance, sales and raw
material purchases. Till December, 2012, the differences on account of
foreign exchange transactions related to sales and raw material purchases
were included in respective heads. The amount on account of such
transactions for the quarter ended 31st March, 2013 is Rs.394.100 Millions
(loss) for sales and Rs. 81.200 Millions (gain) for raw material purchases
and for quarter ended 31st December, 2012, the same was Rs.488.600
Millions (gain) for sales and Rs. 723.300 Millions (loss) for raw material
purchases. For the quarter and year ended 31st March, 2012, the same was
Rs. 697.500 Millions (net gain) and Rs. 931.900 Millions (net gain)
respectively on account of sales and raw material purchases.
- The amounts forthe quarter ended 31st March, 2013 are the
balancing figures between audited figures in respect of full financial
year ended 31st March, 2013 and the published unaudited year to date
figures upto the quarter ended 31st December, 2012, except transactions on
account of exchange differences on sales and raw material purchases as
mentioned in para 1 above.
- Tax Expense consists of Income Tax and Deferred Tax.
- Extraordinary Items in the consolidated results for the year ended
31st March, 2013 includes a loss of Rs. 695.900 Millions on sale of
vessels by an Indian subsidiary and Rs. 166.200 Millions provided for
settlement agreement with trade unions of a foreign subsidiary.
- The Board of Directors have recommended payments of dividend @ Rs.
1 per equity share of Rs. 2 each for the year ended 31st March 2013.
- The Company has only one business segment namely 'Iron and Steel
Products" as primary segment in Standalone Results.
- Previous period/year figures have been re-grouped/re-arranged
wherever considered necessary.
- Formulae for computation of Ratios are as follows:
(i) Debt Equity Ratio: Total Debt/ Net Worth
Total Debt: Secured
Loans + Unsecured Loans
Net Worth: Equity
Share Capital + Reserves (Excluding Revaluation Reserve)
(ii) Debt Service Coverage Ratio: EBDIT/ (Financial costs + Principal
repayment during the period)
(iii) Interest Service Coverage Ratio: EBDIT/ Financial costs
EBDIT: Profit before Taxes + Depreciation + Financial costs
- These results were reviewed by the Audit Committee and approved by
the Board of Directors in their meeting held on 27th May 2013.
STATEMENT OF ASSETS AND
LIABILITIES AS AT 31 ST MARCH, 2013 (AUDITED)
(Rs.
In Millions)
|
PARTICULARS |
31.03.2013 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
Shareholders' Funds |
|
|
(a) Share Capital |
552.500 |
|
(b) Reserves and Surplus |
36733.800 |
|
Subtotal - Shareholders' funds |
37286.300 |
|
Share application money pending allotment |
- |
|
Minority interest |
- |
|
Non-Current Liabilities |
|
|
(a) Long-term borrowings |
14807.400 |
|
(b) Deferred tax liabilities (Net) |
1747.700 |
|
(c) Other Long term liabilities |
0.500 |
|
(d) Long term provisions |
313.300 |
|
Subtotal - Non-Current Liabilities |
16868.900 |
|
Current Liabilities |
|
|
(a) Short-term borrowings |
17625.100 |
|
(b) Trade payables |
4687.600 |
|
(c) Other current liabilities |
4849.800 |
|
(d) Short-term provisions |
384.400 |
|
Subtotal - Current Liabilities |
27546.900 |
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
81702.100 |
|
|
|
|
ASSETS |
|
|
Non-current assets |
|
|
(a) Fixed assets |
35674.400 |
|
(b) Goodwill on consolidation |
- |
|
(c) Non-current investments |
7565.300 |
|
(d) Long term loans and advances |
2289.100 |
|
Subtotal - Non-current assets |
45528.800 |
|
Current assets |
|
|
(a) Current investments |
700.000 |
|
(b) Inventories |
14711.100 |
|
(c) Trade receivables |
12385.700 |
|
(d) Cash and Bank balances |
629.300 |
|
(e) Short-term loans and advances |
7727.800 |
|
(f) Other current assets |
19.400 |
|
Subtotal - current assets |
36173.300 |
|
|
|
|
TOTAL ASSETS |
81702.100 |
FIXED ASSETS
Tangible Assets
v
v
v Buildings
v Plant and Machinery
v Furniture and Fixtures
v
Vehicles
Intangible Assets
v
Computer 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.55.03 |
|
|
1 |
Rs.83.95 |
|
Euro |
1 |
Rs.70.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.