MIRA INFORM REPORT
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Report Date : |
09.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SARDA ENERGY AND MINERALS LIMITED (w.e.f. 12.10.2007) |
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Formerly Known
As : |
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Registered
Office : |
73/A, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
23.06.1973 |
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Com. Reg. No.: |
11-016617 |
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Capital
Investment / Paid-up Capital : |
Rs. 358.500 Millions |
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CIN No.: [Company Identification
No.] |
L27100MH1973PLC016617 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
NGPR00172E |
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PAN No.: [Permanent Account No.] |
AAACR6149L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Producing Sponge Iron, Mild Steel Ingots,
Billets and Rolled Products |
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No. of Employees
: |
600 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 32000000 |
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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 a fine track record.
Financial position of the company appears to be sound. Trade relations are
reported as decent. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered good for 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.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term Bank Facilities = A+ |
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Rating Explanation |
Adequate degree of safety and low credit risk |
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Date |
13.10.2011 |
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Rating Agency Name |
CARE |
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Rating |
Short term Bank Facilities = A1+ |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
13.10.2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
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Name : |
Mr. Manish |
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Designation : |
Company Secretary |
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Contact No.: |
91-771-2215250 |
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Date : |
08.05.2013 |
LOCATIONS
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Registered Office : |
73/A, Central
Avenue, Shri Ram Niketan, Nagpur – 440
018, Maharashtra, India |
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Tel. No.: |
91-712-2727509/ 2660071/ 5616707 / 2722407 |
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Fax No.: |
91-712-2728207/ 2641171 / 2722107 |
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E-Mail : |
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Website : |
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Head Office/ Works : |
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Tel. No.: |
91-771-2216000 |
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Fax No.: |
91-771-216198 /
2216199 |
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Corporate Office : |
125, B-Wing, Mittal Court, Nariman Point, Mumbai - 400 021. Maharashtra, India. |
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Tel. No.: |
91-22-22880080-81 |
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Fax No.: |
91-22-22826680 |
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Branch Office : |
Located At
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Overseas Office : |
Located At
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DIRECTORS
As on 31.03.2012
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Name : |
Mr. Kamal Kishore Sarda |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
60 Years |
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Qualification : |
B.E (Mechanical) |
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Experience : |
38 Years |
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Name : |
Mr. G K Chhanghani |
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Designation : |
Executive Director |
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Qualification : |
B.E (Mechanical) |
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Name : |
Mr. Pankaj Sarda |
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Designation : |
Whole Time Director |
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Name : |
Mr. G D Mundra |
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Designation : |
Whole Time Director |
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Name : |
Mr. Asit Kumar Basu |
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Designation : |
Director |
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Date of Birth/Age : |
62 Years |
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Qualification : |
BME |
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Experience : |
More than 40 years in the field of finance |
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Date of Appointment : |
31.01.2003 |
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Other
Directorships/ Partnerships : |
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Name : |
Mr. C.K. Lakshminarayanan |
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Designation : |
Director |
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Date of Birth/Age : |
63 Years |
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Qualification : |
Bachelor of Technology |
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Experience : |
He worked as a Plant Engineer for 8 years with Madras Petrochem Limited. Thereafter, he worked with Industrial Development Bank of India, firstly in Project finance and then in Investment Banking. Lastly, he worked as President and CEO of STCMS Electric Company Private Limited, which is operating a 250 MW IPP. |
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Date of Appointment : |
28.01.2009 |
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Other
Directorships/ Partnerships : |
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Name : |
Mr. G.S. Sahni |
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Designation : |
Director |
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Name : |
Mr. Jitender Balakrishnan |
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Designation : |
Director |
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Date of Birth/Age : |
63 Years |
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Qualification : |
B.E (Mech) National Institute of Technology (NIT) Madras University and Post Graduate Diploma in Industrial Management, Bombay University |
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Experience : |
He has wide experience in the sectors like, Oil and Gas, Refineries, Power, Telecom, Airports, Roads, Ports, Steel, Cement, Fertilizers, Petrochemicals, Hotel, Pharmaceuticals, Paper, etc. |
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Date of Appointment : |
30.07.2010 |
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Other
Directorships/ Partnerships : |
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Name : |
Mr. P R Tripathi |
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Designation : |
Director |
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Qualification : |
Mining Engineer |
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Name : |
Mr. Rakesh Mehra |
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Designation : |
Director |
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Qualification : |
FCWA |
KEY EXECUTIVES
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Name : |
Mr. P. K. Jain |
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Designation : |
Chief Financial Officer - Cum – Company Secretary |
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Name : |
Mr. Manish |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
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Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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8153428 |
22.74 |
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14691129 |
40.98 |
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1000000 |
2.79 |
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1000000 |
2.79 |
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23844557 |
66.51 |
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Total shareholding of Promoter and Promoter Group (A) |
23844557 |
66.51 |
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(B) Public Shareholding |
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754834 |
2.11 |
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12780 |
0.04 |
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250 |
0.00 |
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2180680 |
6.08 |
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1804891 |
5.03 |
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1804891 |
5.03 |
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4753435 |
13.26 |
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3328105 |
9.28 |
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3119829 |
8.70 |
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702854 |
1.96 |
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101220 |
0.28 |
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11957 |
0.03 |
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89263 |
0.25 |
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7252008 |
20.23 |
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Total Public shareholding (B) |
12005443 |
33.49 |
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Total (A)+(B) |
35850000 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
35850000 |
0.00 |
Shareholding belonging
to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the
Shareholder |
Details of Shares
held |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
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||
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1 |
Chhattisgarh Investments Limited |
1,04,90,657 |
29.26 |
29.26 |
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2 |
Sarda Agriculture and Prop Private Limited |
26,35,150 |
7.35 |
7.35 |
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3 |
Prachi Agriculture and Prop Private Limited |
15,65,322 |
4.37 |
4.37 |
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4 |
G D Sarda |
13,92,378 |
3.88 |
3.88 |
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5 |
Kamal Kishore Sarda |
13,09,149 |
3.65 |
3.65 |
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6 |
J K Sarda |
11,72,365 |
3.27 |
3.27 |
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7 |
Shakuntala Sarda |
10,14,518 |
2.83 |
2.83 |
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8 |
Chhattisgarh Investments Limited |
10,00,000 |
2.79 |
2.79 |
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9 |
Veena Sarda |
7,02,350 |
1.96 |
1.96 |
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10 |
Pankaj Sarda |
6,91,107 |
1.93 |
1.93 |
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11 |
Premlata Sarda |
4,68,910 |
1.31 |
1.31 |
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12 |
Uma Sarda |
4,89,425 |
1.37 |
1.37 |
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13 |
Dr K K Rathi |
2,51,731 |
0.70 |
0.70 |
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14 |
Manish Sarda |
2,37,570 |
0.66 |
0.66 |
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15 |
Aditya Sarda |
1,12,840 |
0.31 |
0.31 |
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16 |
Raghav Sarda |
1,12,840 |
0.31 |
0.31 |
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17 |
Neeraj Sarda |
98,490 |
0.27 |
0.27 |
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18 |
Anant Sarda |
49,140 |
0.14 |
0.14 |
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19 |
JK Sarda (HUF) |
21,716 |
0.06 |
0.06 |
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20 |
Shashi Rathi |
19,767 |
0.06 |
0.06 |
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21 |
Aditi Sarda |
9,132 |
0.03 |
0.03 |
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Total |
2,38,44,557 |
66.51 |
66.51 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
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Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
1 |
Orange Mauritius Investments Limited |
2165680 |
6.04 |
6.04 |
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2 |
Infrastructure Dev. Fin. Company Limited |
1842105 |
5.14 |
5.14 |
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3 |
Asia Minerals Limited |
1804891 |
5.03 |
5.03 |
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4 |
Relience -Capital Trustee Company Limited |
754184 |
2.10 |
2.10 |
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Total |
6566860 |
18.32 |
18.32 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
Sl. No. |
Name(s) of the shareholder(s)
and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
1 |
Orange Mauritius Investments Limited |
2165680 |
6.04 |
6.04 |
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2 |
Infrastructure Dev. Fin. Company Limited |
1842105 |
5.14 |
5.14 |
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|
3 |
Asia Minerals Limited |
1804891 |
5.03 |
5.03 |
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Total |
5812676 |
16.21 |
16.21 |
BUSINESS DETAILS
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Line of Business : |
Producing Sponge Iron, Mild Steel Ingots,
Billets and Rolled Products |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Coal |
MT |
NA |
431728 |
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Pellet |
MT |
600000 |
173668 |
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Sponge Iron |
MT |
460000 |
219143 |
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Steel Ingots / Runner Riser |
MT |
40000 |
-- |
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Steel Billets |
MT |
200000 |
80840 |
|
Wire Road |
MT |
180000 |
40937 |
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Ferro Alloys |
MT |
66000 |
61232 |
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Power |
MW / KWH |
81.50 |
468873066 |
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Fly Ash Bricks, Blocks and Tiles |
MT |
192000 |
36502 |
GENERAL INFORMATION
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No. of Employees : |
600 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M. M. Jain and Associates Chartered Accountants |
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Address : |
Shreemohini, Kingsway, Nagpur, Maharashtra, India |
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Subsidiaries : |
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Associate Companies
: |
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Related enterprises
where significant influence exist |
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Joint Ventures : |
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Controlled Entities |
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CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
35850000 |
Equity Shares |
Rs.10/- each |
Rs.358.500
Millions |
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Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
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Particular |
No. |
Rs. In Millions |
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Shares outstanding at the beginning of the year |
3,58,50,000 |
358.500 |
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Shares Issued during the year |
-- |
-- |
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Shares bought back during the year |
-- |
-- |
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Shares outstanding
at the end of the year |
3,58,50,000 |
358.500 |
Terms/rights attached
to equity shares
The Company has only one class of shares - 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 in the ensuing Annual General Meeting.
During the year ended March 31, 2012, the amount of per share dividend proposed for distribution to equity shareholders is Rs.3/- (P.Y. Rs.3/-).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
Details of
shareholders holding more than 5% shares in the Company
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Particular |
No. of Shares Held |
% of Holding |
|
Equity shares of Rs.10/- each fully paid |
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|
Chhattisgarh Investments Limited |
1,04,90,657 |
29.26% |
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Sarda Agriculture and Properties Private Limited |
26,35,150 |
7.35% |
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Orange Mauritius Investments Limited |
21,65,680 |
6.04% |
|
Infrastructure Development Finance Company Limited |
18,42,105 |
5.14% |
|
Asia Minerals Limited |
18,04,891 |
5.03% |
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 |
|
|
|
|
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1] Share Capital |
358.500 |
358.500 |
340.451 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7723.465 |
6579.475 |
5305.302 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
8081.965 |
6937.975 |
5645.753 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5646.030 |
5611.121 |
4472.064 |
|
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2] Unsecured Loans |
899.211 |
208.752 |
123.027 |
|
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TOTAL BORROWING |
6545.241 |
5819.873 |
4595.091 |
|
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DEFERRED TAX LIABILITIES |
499.614 |
360.740 |
285.921 |
|
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|
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|
|
|
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TOTAL |
15126.820 |
13118.588 |
10526.765 |
|
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APPLICATION OF FUNDS |
|
|
|
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|
|
|
|
|
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FIXED ASSETS [Net Block] |
7339.363 |
6877.753 |
4265.057 |
|
|
Capital work-in-progress |
1087.694 |
1240.341 |
3733.443 |
|
|
|
|
|
|
|
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INVESTMENT |
2131.284 |
1522.841 |
664.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2272.222
|
2587.588 |
1519.844 |
|
|
Sundry Debtors |
431.304
|
433.595 |
143.948 |
|
|
Cash & Bank Balances |
9.475
|
16.865 |
246.657 |
|
|
Other Current Assets |
259.859
|
26.327 |
0.000 |
|
|
Other Non-Current Assets |
12.102
|
6.309 |
0.000 |
|
|
Loans & Advances |
3475.550
|
2106.909 |
912.226 |
|
Total
Current Assets |
6460.512
|
5177.593 |
2822.675 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
834.863
|
657.853 |
489.556 |
|
|
Other Current Liabilities |
924.696
|
828.167 |
349.985 |
|
|
Provisions |
132.474
|
213.920 |
119.493 |
|
Total
Current Liabilities |
1892.033
|
1699.940 |
959.034 |
|
|
Net Current Assets |
4568.479
|
3477.653 |
1863.641 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.024 |
|
|
|
|
|
|
|
|
TOTAL |
15126.820 |
13118.588 |
10526.765 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11001.770 |
8847.423 |
5228.163 |
|
|
|
Other Income |
584.391 |
252.771 |
72.752 |
|
|
|
TOTAL (A) |
11586.161 |
9100.194 |
5300.915 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
6287.740 |
5602.623 |
|
|
|
|
Purchases of stock-in-trade |
140.477 |
440.739 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(4.124) |
(632.574) |
4013.857 |
|
|
|
Employee benefits expense |
408.701 |
330.019 |
|
|
|
|
Other expenses |
2377.670 |
1759.313 |
|
|
|
|
TOTAL (B) |
9210.464 |
7500.120 |
4013.857 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2375.697 |
1600.074 |
1287.058 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
702.767 |
316.568 |
127.232 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1672.930 |
1283.506 |
1159.826 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
632.336 |
576.267 |
387.978 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1040.594 |
707.239 |
771.848 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(103.395) |
210.511 |
139.859 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1143.989 |
496.728 |
631.989 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
3444.701 |
3082.205 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
150.000 |
150.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
NA |
62.500 |
0.000 |
|
|
|
Dividend |
NA |
107.550 |
102.135 |
|
|
|
Tax on Dividend |
NA |
17.447 |
17.358 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
3603.933 |
3444.701 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1135.110 |
1174.588 |
636.746 |
|
|
|
Interest Received |
4.722 |
0.718 |
19.265 |
|
|
|
Other Earnings |
266.550 |
4.230 |
32.901 |
|
|
TOTAL EARNINGS |
1406.382 |
1179.536 |
688.912 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
834.933 |
1854.606 |
705.785 |
|
|
|
Components and Spare Parts |
73.366 |
7.113 |
1.000 |
|
|
|
Capital Goods |
46.970 |
95.953 |
84.255 |
|
|
TOTAL IMPORTS |
955.269 |
1957.672 |
791.04 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
31.91 |
13.86 |
18.56 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3412.800 |
3530.100 |
3724.600 |
|
Total Expenditure |
2834.100 |
2808.800 |
3010.400 |
|
PBIDT (Excl OI) |
578.700 |
721.300 |
714.200 |
|
Other Income |
67.900 |
30.200 |
35.700 |
|
Operating Profit |
646.700 |
751.500 |
749.900 |
|
Interest |
192.400 |
179.100 |
182.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
454.200 |
572.400 |
567.300 |
|
Depreciation |
158.700 |
157.800 |
163.500 |
|
Profit Before Tax |
295.600 |
414.600 |
403.800 |
|
Tax |
93.000 |
139.000 |
134.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
202.500 |
275.600 |
269.000 |
|
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 |
202.500 |
275.600 |
269.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.87
|
5.46 |
11.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.46
|
7.99 |
14.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.75
|
5.87 |
10.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.04
|
1.08 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.41
|
3.05 |
2.94 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
Rs.
In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Sundry Creditors |
834.863
|
657.853 |
489.556 |
|
Total |
834.863
|
657.853 |
489.556 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
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 |
OPERATIONS
During the year, all existing manufacturing facilities and coal mine achieved record output. This could be achieved through constant endeavor at all levels for excellence. The operations at iron ore mines remained suspended due to law and order problems in the surrounding area.
For detailed plant wise analysis, members are requested to refer to the Management Discussion and Analysis, forming a part of Annual Report.
PROJECTS
During the year, the Wire Drawing Mill, Coal Washery and 2nd Bricks plant were commissioned at a total capital outlay Rs.416.393 Millions.
Debottlenecking, Modernization and Expansion project
The company has planned capital expenditure of Rs.5500.000 Millions for debottlenecking, modernisation and expansion of existing manufacturing, coal mining and coal washery to be executed over next 2 years. Union Bank of India has appraised and sanctioned part debt funds for the project. Balance amount is being syndicated from other member banks of consortium.
Pithead Thermal Power Plant
The company has acquired required land for the proposed 350 MW thermal power plant at Kolam, Raigarh near its captive coal mines. Water Resources Department, Government of Chhattisgarh has allocated required quantity of water for the project. Environmental clearance is awaited. The site work and release of orders for plant and machinery and other facilities for the project will start after receipt of statutory clearances. Coal mining plan is under preparation to meet coal requirement of the project.
Mining projects
Iron Ore
The company has executed 4 Prospecting Licenses for iron ore in Narayanpur district of Chhattisgarh. The company is in process of getting various statutory clearances.
Manganese Ore
The application for forest and environment clearance for manganese ore mines of the company in Goa is awaiting State Government clearance, pending finalization of Mining/Forest Policy of the State.
The comapny received prior permission from Central Government under Mines and Minerals (Development and Regulation) Act for one prospecting license in Balaghat district, Madhya Pradesh.
Having completed the Reconnaissance, the company has moved three applications for grant of Mn ore prospecting licenses in Miragpur area (Madhya Pradesh), which are under consideration of the State Government.
Coal
The work on the Indonesian coal mine under wholly owned subsidiary is progressing steadily. Forest clearance has been received. Land acquisition is going on.
AWARDS/APPRECIATION
During the year the company received the following awards:
- Engineering Export Promotion Council (Western Region) “EEPC Star Performer Award in the product group “ferro alloys” for its outstanding export performance during FY 2009-10 when the country was reeling under recession post-Lehman fiasco. The company had received the award for 2008-09 also.
- Certificate of Merit from Chhattisgarh State Renewable Energy Development Agency (CREDA), Dept. of Energy, Govt. of Chhattisgarh in appreciation of the achievement in Energy Conservation at State Level for the year 2011.
- Trophy for “General Safety Consciousness” in Annual Coal Mines Safety Fortnight 2011 at South Eastern coalfields Limited, Bilaspur Region.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
The company operates primarily in Steel and Ferro Alloys sector as an integrated producer backed by captive coal mines and captive power plant. The company has also focused on the energy sector mainly through subsidiaries.
The country’s economic scenario and recent developments in the sectors related with the company’s business are discussed here under.
ECONOMIC SCENARIO
Global Economy on the whole is witnessing turbulent times. While there are some signs of recovery, sustained progress will depend upon a solution to the Euro debt crisis.
The Indian GDP growth has moderated to 6.5 percent reflecting the impact of international economic downturn and continued monetary tightening. Managing growth and price stability were conflicting challenges in macroeconomic policy making. Indian rupee weakened by more than 14% during the year. WPI inflation remained high around 9% during 2011. Corporates found it increasingly difficult to pass on rise in input cost to the customers.
Due to stratified mining sector, dominated by the public sector undertakings, only 10% of the country’s landmass has been explored. Growth of mining industry in 2012 and beyond will remain big challenge to sustain a high GDP growth. A bright spot, however, is the increasing number of Indian companies venturing overseas to secure stable, long-term supplies of minerals such as coal and iron ore in a bid to meet fast-rising domestic demand.
STEEL
Over the last decade there has been a structural shift in the demand for steel from developed economies to emerging economies. The demand has shifted towards emerging markets primarily due to strong economic growth coupled with higher share in fixed assets investments as a percentage of GDP. China has replaced Japan, Korea and some of the European companies as driver of the steel market. In 2011 global steel production registered a growth of 6.8% with total output of 1490 Mn tonnes. China produced 683 Mn tonnes of the world steel output registering a growth of 9%. India ranked fourth with production of 72 Mn tonnes steel registering a growth of 6%. Japan and African continent registered negative growth.
Indian steel industry faced shortage of iron ore, coal and natural gas adversely affecting production of steel and in particular sponge iron. During FY 2011-12 India produced 20.56 Mn tonnes of DRI as against 23.26 Mn tones produced during last year registering a negative growth of 12%. India, however, continues to be the largest producer of DRI in the world. The ban on iron ore mining in Karnataka, issues related to illegal mining, delay in grant of clearances for coal mining and reduced output of gas from KG basin adversely affected steel output.
Poor quality and high price of coal also affected steel industry. Fuel Supply Agreement (FSA) has caused Coal India to supply only 11-12 million tonnes of coal to the sponge iron producers against the demand of 32 million tonnes forcing the sponge iron producers to resort to procurement through high cost e-auctions and imports, leading to spike in input costs.
The Steel Ministry has proposed a research and development fund for pilot projects of alternate iron and steel technologies developed indigenously. Along with it the ministry has also proposed a five per cent interest subsidy for value addition in iron-ore fines and energy efficiency in the secondary steel plants. This fund will primarily focus on three projects - development of alternate iron-making technology, development of alternate technology for utilizing slime and development of CRGO-electrical steel.
FERRO ALLOYS
Manganese, serves as an important additive for the production of steel. The input quantum of ferro alloys in steel making depends on required end use properties of steel. China and to a lesser extent India are key players in the global ferro alloys industry. While demand side of ferro alloys industry continued to be strong, on the back of record steel production supply also increased substantially through new capacity build-up resulting in pressure on selling prices throughout the year. In the past, China was exporting manganese alloys but on account of a combination of internal factors, including imposition of export duty, exports from China dried up and in 2012 China has become net importer of manganese alloys. Increased fuel/ power cost in ferro alloys producing countries and stronger currencies of major ore producing countries namely Australia and South Africa have put pressure on production costs and producer margins. However, the prices of ferro alloys have started showing upward trends since March, 2012.
The global manganese alloys production was 15.9 Mn tonnes as against 14.8 Mn tonnes in 2010 registering a growth of 7% in line with growth of steel industry. Silico Manganese (SiMn) constituted 62% and Ferro Manganese (FeMn) 28% of total ferro alloys production. Although ferro alloys output was at all-time high, uncertainty about sustainability of global GDP growth and strong competition kept performance of ferro alloys producers subdued in 2011. The Mn ore production also increased marginally from 47 Mn tonnes to 48 Mn tonnes. In terms of Mn content it increased to 15.8 Mn tonnes registering growth of 9% with average Mn content of 32.8%. China imported a record high of 13 Mn tones of sea borne ore in 2011. India also meets major part of its requirement of high grade Mn ore through imports. MOIL Limited, a PSU, is controlling major Mn ore operating reserves of the country. MOIL produced 1.07 Mn tonnes of Mn ore against 1.15 Mn tonnes in the previous year.
New manganese mining capacity of about 10 Mn tonnes/year (gross weight ore) is planned, mainly in South Africa where three mining projects with a total output of 6.3 Mtpy of saleable ore or sinter are planned.
POWER
The installed capacity of power in the country has crossed two Lacs megawatt mark which includes 1,32,013 MW capacity in the thermal sector, 38,991 MW in hydro, 4,780 MW in nuclear and 24,503 MW in renewable energy. Total generation was 876.43 Bn units registering a growth of 8.05%. In 2011-12, 20,501 MW was added. Inspite of being the fifth largest electricity generation capacity in the world, India still faces huge power shortage and load-shedding.
Over the last few years, India has been facing acute shortage of coal. Despite having vast coal reserves, in the recent years India’s dependence is increasing on imports mainly on account of exploration, technical, environmental and logistical issues.
India is blessed with 84000 MW of hydro-electric potential at 60% load factor and ranks 5th in terms of exploitable hydro-potential on global scenario. India is endowed with rich solar energy resource. India receives the highest global solar radiation on a horizontal surface. India plans to generate 1 GW of power by 2013. To promote renewable energy and to make itself sustainable, the government has provided impetus to investors and imposed renewable purchase obligation on conventional energy buyers/consumers in order to balance costs and prices.
OUTLOOK
With the concerted policy actions around the world, the global GDP for 2012 is expected to grow at 3.3% with emerging and developing economies leading the growth (+5.5%) and developed economies growing by 1.2%. Indian economy is expected to grow by +7%. Uncertainty remains with Euro Zone. Barring some softening, Chinese growth is expected to remain strong. In view of above demand for steel, ferro and power is expected to grow steadily.
Steel and ferro alloys prices have shown improvement in current year. However, the momentum seems to have lost steam and capacity utilization in many regions remains below 80%. Raw material prices initially showed resilience at lower levels but are expected to remain relatively stable.
The price of power to the industry has gone up across the country. The company is having captive power generation capacity. This has a positive impact on the company. The ferro alloys plant at Vizag will be operational in the current year. China becoming net importer of ferro alloys will help in boosting Indian ferro alloys export. With concerted efforts capacity utilization and margins of existing production facilities are also expected to improve.
The company has chalked out a strategy to expand and grow on the strength of natural resources held by/allotted to the company. Accordingly, the projects will be executed to coincide with the availability of captive raw material resources.
Overall the company expects to better its performance in the current year.
NATURE OF OPERATION
The Company has integrated steel manufacturing facility starting from iron ore and coal mining to the finished steel in the form of wire rod and wire. The Company is also a leading manufacturer and exporter of Ferro Alloys enjoying Star Export House Status. The manufacturing facilities are backed by captive thermal power plant. The Company has also promoted hydro power projects through SPVs.
CONTINGENT LIABILITIES
Rs. In Millions
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Guarantees given by company’s bankers |
70.489 |
71.944 |
|
Share of guarantees given by the jointly controlled entity |
90.000 |
90.000 |
|
Guarantees given to dgft on behalf of wholly owned subsidiary for meeting export obligation |
6.387 |
6.387 |
|
Guarantees given to assistant commissioner of customs on behalf of wholly owned subsidiary |
33.421 |
4.257 |
|
Penal interest for non creation of securities for rupee term loan from IDFC |
6.543 |
-- |
|
Post dated cheques given to Axis Bank Limited for disbursement of term loan to Sarda Metal and Alloys Limited, wholly owned subsidiary of the company, pending creation of security for sanctioned facilities |
NIL |
1212.810 |
|
Bills discounted with the company’s bankers under letters of credit |
162.577 |
171.205 |
|
Claims against the company not acknowledged as debt and disputed in Appeals |
8.529 |
9.687 |
|
Excise duty and service tax demand |
35.390 |
23.048 |
|
Vat, cst and entry tax |
20.020 |
5.078 |
|
Income tax |
398.614 |
189.637 |
|
Energy development cess |
218.980 |
156.740 |
i) Guarantee (equal to Company’s share in Joint Venture) given by the Company to IDBI Bank Limited against guarantee issued by the Bank in favour of Government of India on behalf of Madanpur South Coal Company
Limited (The Joint Venture Company for Coal Mining) Rs.90.000 Millions ( P.Y. Rs.90.000 Millions).
ii) Guarantee given to Director General of Foreign Trade Rs.6.387 Millions (P.Y. Rs.6.387 Millions) and Assistant Commissioner of Customs Rs.30.113 Millions (P.Y. Rs.4.257 Millions) on behalf of Sarda Metal and Alloys Limited, wholly owned subsidiary of the Company for fulfillment of Export Obligation against import of capital goods under Export Promotion Capital Goods Scheme.
iii) Excise Duty and Service Tax
a) Excise duty demand of Rs.2.056 Millions (P.Y. Rs.2.056 Millions) raised on account of Cenvat credit availed, which the Company has disputed in High Court.
b) Excise Duty demand of Rs.16.538 Millions (P.Y. Rs.17.038 Millions) raised on account of Cenvat credit availed which the Company has disputed and has filed appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT).
c) Excise Duty demand of Rs.9.787 Millions (P.Y. Rs.1.023 Millions) raised on account of Cenvat credit availed which the Department has disputed and has filed appeal before the CESTAT.
d) Rs.0.697 Million (P.Y. Rs.0.697 Million) on account of duty on VAT Collected by the Company against which the Company has filed an appeal before the CESTAT.
e) Rs.0.696 Million (P.Y. Rs.0.444 Million) on account of duty on sale of waste and scrap by the Company. The case has been decided in favour of the Company by Commissioner Central Excise (Appeals) (CCE(A)). The Central Excise Department has filed appeal before the CESTAT against decision of the CCE(A).
f) Excise Duty demand of Rs.1.010 Millions (P.Y. Rs.1.028 Millions) raised on account of Cenvat credit availed has been disputed before Commissioner (Appeals), Raipur.
g) Excise Duty demand of Rs.0.762 Million (P.Y. Rs.0.762 Million) raised on account of Modvat credit availed has been disputed before Commissioner (Appeals), Raipur.
h) Service Tax demand of Rs.3.844 Millions (P.Y. NIL) raised on account of Service Tax on foreign services availed, which the Company has disputed and has filed appeal before Commissioner (Appeals), Raipur.
iv) Value Added Tax/Central Sales Tax/Entry Tax Value Added Tax/Central Sales Tax/ Entry Tax demands of Rs.20.020 Millions (P.Y. Rs.5.078 Millions) are pending in appeal against assessment of various years.
v) Income Tax
Rs.189.634 Millions ( P.Y. Rs.189.634 Millions) for the Assessment Year 2008-09 and Rs.208.980 Millions ( P.Y. NIL) for the Assessment year 2009-10 on account of partial disallowance of deduction claimed under Section 80IA of the Income Tax Act, 1961 disputing the transfer pricing of Power captively consumed by other divisions. The Company has filed appeal before CIT (Appeals). The CIT (Appeals) has decided the similar issue in favour of the Company for the Assessment Year 2007-08. This issue has also been decided in favour of the Company by the Income Tax Appellate Tribunal for earlier Assessment years.
vi) Energy Development Cess of Rs.218.980 Millions (P.Y. Rs.128.800 Millions) net of amount deposited Rs.29.434 Millions (P.Y. Rs.29.434 Millions) demanded by the Chief Electrical Inspector, Govt. of Chhattisgarh for the period May, 2006 to January, 2012. The Honorable High Court of Chhattisgarh has held the levy of Energy Development Cess as unconstitutional vide its Order dated 20th June, 2008. The State Govt. has filed a Special Leave Petition before the Honorable Supreme Court.
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012
Rs. In Millions
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2012 |
31.09.2012 |
31.12.2012 |
|
1 |
Income from
Operations |
|
|
|
|
|
Sales/Income from
Operations (Gross) |
4103.348 |
3861.514 |
11663.384 |
|
|
Less: Excise Duty |
403.295 |
352.417 |
1083.881 |
|
|
a) Net Sales/Income from Operations (net of excise duty) |
3700.053 |
3509.097 |
10579.503 |
|
|
b) Other Operating Income |
24.493 |
20.978 |
87.952 |
|
|
Total Income from
Operations (Net) |
3724.546 |
3530.075 |
10667.455 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of Materials consumed |
1963.326 |
1993.402 |
5932.329 |
|
|
b) Purchase of stock in-trade |
133.613 |
92.568 |
373.784 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
106.203 |
63.324 |
47.989 |
|
|
d) Employee benefit expenses |
121.297 |
117.882 |
357.446 |
|
|
e) Depreciation and amortization expense |
163.536 |
157.753 |
479.981 |
|
|
f) other expenses |
685.931 |
541.624 |
1941.737 |
|
|
Total Expenses |
3173.906 |
2966.553 |
9133.266 |
|
3 |
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
550.640 |
563.522 |
1534.189 |
|
4 |
Other Income |
35.714 |
30.170 |
133.828 |
|
5 |
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
586.354 |
593.692 |
1668.017 |
|
6 |
Finance Costs |
182.609 |
179.087 |
554.119 |
|
7 |
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
403.745 |
414.605 |
1113.898 |
|
8 |
Exceptional Items |
- |
- |
- |
|
9 |
Profit /(Loss) from
ordinary activities before tax |
403.745 |
414.605 |
1113.898 |
|
10 |
Tax Expense |
134.777 |
138.990 |
366.803 |
|
11 |
Net Profit /(Loss)
from ordinary activities after tax (9-10) |
268.968 |
275.615 |
747.095 |
|
12 |
Extraordinary items (net of tax expense) |
- |
- |
- |
|
13 |
Net Profit /(Loss)
for the period (11-12) |
268.968 |
275.615 |
747.095 |
|
14 |
Paid up equity share capital (Eq. shares of Rs.10/- each) |
|
|
358.500 |
|
15 |
Reserve excluding revaluation reserves |
|
|
|
|
16 |
Earnings per share (before/after extraordinary items) of Rs.10/-each |
|
|
|
|
|
Basic |
7.50 |
7.69 |
20.84 |
|
|
Diluted |
7.50 |
7.69 |
20.84 |
|
|
|
|
|
|
|
A |
Particulars of
shareholding |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- No. of Shares |
12,005,443 |
12,005,443 |
12,005,443 |
|
|
- Percentage of Shareholding |
33.49 |
33.49 |
33.49 |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
0 |
0 |
0 |
|
|
- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group) |
0.00 |
0.00 |
0.00 |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
0.00 |
0.00 |
0.00 |
|
|
b) Non- encumbered |
|
|
|
|
|
- Number of shares |
23,844,557 |
23,844,557 |
23,844,557 |
|
|
- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
66.51 |
66.51 |
66.51 |
|
|
|
|
|
|
|
B |
Investor Complaints |
|
|
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
|
|
Received during the quarter |
5 |
|
|
|
|
Disposed during the quarter |
5 |
|
|
|
|
Remaining unresolved at the end of the quarter |
0 |
|
|
NOTES:-
1 The above accounts were reviewed by the Audit Committee and considered and approved in the meeting of the Board of Directors held on 25.01.2013.
2 Other expenses includes forex fluctuation loss / (gain).
3 The figures for the corresponding previous periods have been restated / regrouped, wherever necessary, to make them comparable.
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 31ST DECEMBER, 2012
Rs. In Millions
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2012 |
31.09.2012 |
31.12.2012 |
|
1 |
Segment Revenue |
|
|
|
|
|
a) Steel |
2749.921 |
2364.115 |
7195.609 |
|
|
b) Ferro Alloys |
904.213 |
1104.145 |
3254.318 |
|
|
c) Unallocated |
78.286 |
74.931 |
256.329 |
|
|
Total |
3732.420 |
3543.191 |
10706.256 |
|
|
Less: Inter Segment Revenue |
7.874 |
13.116 |
38.801 |
|
|
Net Sales/Income from operations |
3724.546 |
3530.075 |
10667.455 |
|
2 |
Segment Results Profit/(Loss)
before tax and interest and forex fluctuation gain/(loss) |
|
|
|
|
|
a) Steel |
550.654 |
355.421 |
1171.811 |
|
|
b) Ferro Alloys |
109.701 |
186.694 |
625.946 |
|
|
Total |
660.355 |
542.115 |
1797.757 |
|
|
Add: i) Interest & Forex fluctuation Gain/(Loss) |
(217.934) |
(99.476) |
(629.843) |
|
|
ii) Unallocable expenditure net off unallocable income. Gain/(Loss) |
(38.676) |
(28.033) |
(54.016) |
|
|
Total Profit before
tax |
403.745 |
414.605 |
1113.898 |
|
3 |
Capital Employed (Segment Assets -
Segment Liabilities) (Based on estimates
in terms of available data) |
|
|
|
|
|
a) Steel |
7864.565 |
8118.682 |
7864.565 |
|
|
b) Ferro Alloys |
975.417 |
446.515 |
975.417 |
|
|
c) Unallocated |
2696.969 |
2498.383 |
2696.969 |
|
|
Total |
11536.951 |
11063.580 |
11536.951 |
FIXED ASSETS
- Land
- Coal Mines
- Building
- Plant and Machinery
- Furniture and Fixtures
- Equipment
- Vehicles
\CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.16 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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.