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MIRA INFORM REPORT

 

 

Report Date :

24.05.2013

 

IDENTIFICATION DETAILS

 

Name :

TATA METALIKS LIMITED

 

 

Registered Office :

Tata Centre, 10th Floor, 43, Jawaharlal Nehru Road, Kolkata - 700071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

10.10.1990

 

 

Com. Reg. No.:

21-050000

 

 

Capital Investment / Paid-up Capital :

Rs. 1252.880 millions

 

 

CIN No.:

[Company Identification No.]

L27310WB1990PLC050000

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALT02810D

 

 

PAN No.:

[Permanent Account No.]

AABCT1389B

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Foundry Grade Pig Iron.

 

 

No. of Employees :

642 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4860000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is a subsidiary of ‘Tata Steel Limited’. It is an established company having a satisfactory track record.

 

The company has incurred loss from its operations during 2012. However, the company receives strong operational and financial support from its parent company.

 

Trade relations are fair. Business is active. Payment terms are usually correct.

 

The company can be considered 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.

 

 

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

Term Loan: BBB

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

25.04.2013

 

Rating Agency Name

ICRA

Rating

Commercial Paper Programme: A3

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

25.04.2013

 

 

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 / Head Office :

Tata Centre, 10th Floor, 43, Jawaharlal Nehru Road, Kolkata - 700071, West Bengal, India

Tel. No.:            

91-33-66134205

Fax No.:

91-33-22884372

E-Mail :

sankar.bhattacharya@tatametaliks.co.in

tml@tatametaliks.co.in

investors@tatametaliks.co.in

Website :

http://www.tatametaliks.com

 

 

Kharagpur Plant:

P.O. Samraipur, Gokulpur, Kharagpur,  District: Paschim, Mednipur-721301, West Bengal, India

Tel. No.:

91- 3222-233290

 

 

Redi Plant:

Terekhol Road, Redi Tauluka: Vengurla, District: Sindhudurg-416517, Maharashtra, India

Tel. No.:

91- 2366-227628

 

 

Delhi Office:

Tata Metaliks Limited C-13, Upper Ground Floor , Sewak Park, Dwarka Mor, Uttamnagar, New Delhi-110059, India

 

 

Customer Service Centre
Howrah Office

:

 Customer Service Centreb P-94/2, Benaras Road, Kajipara, Belgachia, Netaji Ghar Po, Howrah-711108,   West Bengal, India

Tel. No.:

91-33-26515334

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Harsh K Jha

Designation :

Managing Director

 

 

Name :

Mr. Koushik Chatterjee

Designation :

Chairman

 

 

Name :

Mr. A. C. Wadhawan

Designation :

Director

 

 

Name :

Mr. Dipak Banerjee

Designation :

Director

Date of Birth/Age :

19.02.1946

Qualification :

B. Com(H), CA

Date of Appointment :

26.07.2003

DIN No.:

00028123

Other Directorship :
  • DIC India Limited
  • International Shipping and Logistics, FZE
  • Mjunction Services Limited
  • Shristi Infrastructure Development Corporation Limited
  • Tata Metaliks Kubota Pipes Limited
  • Tata Sponge Iron Limited
  • Tayo Rolls Limited
  • Tinplate Company of India Limited
  • TM International Logistics Limited

 

 

Name :

Mr. Ashok Kumar Basu

Designation :

Director

Date of Birth/Age :

24.03.1942

Qualification :

B.A(Hons.), I.A.S.

Date of Appointment :

29.03.2007

DIN No.:

01411191

Other Directorship :
  • Visa Resources India Limited
  • Triplate Company of India Limited
  • JSWBengal Steel Limited
  • Visa Power Limited
  • Bharat Heavy Electricals Limited
  • The Tata Power Company Limited

 

 

Name :

Mr. Ashok Kumar

Designation :

Director

 

 

Name :

Mr. V. S. N. Murty

Designation :

Director

 

 

Name :

Dr. Pingali Venugopal

Designation :

Director (Appointed as Additional Directorw.e.f. January 5, 2012)

Date of Birth/Age :

11.05.1958

Qualification :
  • Fellow Programme in Management
  • Post Graduate Diploma in Management from IIM, Ahmedabad
  • Bachelor of Science Agricuture

Date of Appointment :

05.01.2012

 

05166520

Other Directorship :
  • Macmet India Limited
  • Jai Balaji Industries Limited
  • Himadri Chemicals and Industrial Limited

 

 

Name :

Mr. D. P. Deshpande

Designation :

Director (Appointed as Executive Directorw.e.f April 1, 2012)

Date of Birth/Age :

04.10.1956

Qualification :

B. Tech, PGDBM, XLRI, Jamshedpur

Date of Appointment :

01.04.2012

DIN No.:

02526471

 

 

Name :

Mr. Krishnava Dutt

Designation :

Director (Appointed as Additional Directorw.e.f. July 5, 2012)

Date of Birth/Age :

16.10.1974

Qualification :

B.Sc. LLB

Date of Appointment :

05.07.2012

DIN No.:

02792753

 

 

Name :

Mr. Harsh K Jha

Designation :

Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Kalyan Chatterji

Designation :

VP (Projects and Business Opportunity)

 

 

Name :

Mr. Sudhin Mitter

Designation :

VP (Marketing and Sales)

 

 

Name :

Mr. Debasish Mishra

Designation :

GM (Operations)

 

 

Name :

Mr. Subhra Sengupta

Designation :

Chief Financial Officer

 

 

Name :

Mr. Sankar Bhattacharya

Designation :

Chief(Corporate Governance) and Company Secretary

 

 

Audit Committee

 

 

Name :

Mr. A. C. Wadhawan

Designation :

Chairman

 

 

Name :

Mr. Dipak Banerjee

Designation :

Member

 

 

Name :

Mr. V.S.N.Murty

Designation :

Member

 

 

Name :

Mr. Ashok K Basu

Designation :

Member

 

 

Committee of Board :

 

 

Name :

Mr. Koushik Chatterjee

Designation :

Chairman

 

 

Name :

Mr. Harsh K Jha

Designation :

Member

 

 

Name :

Mr. Dipak Banerjee

Designation :

Member

 

 

Name :

Mr. Ashok Kumar

Designation :

Member

 

 

Ethics and Compliance Committee:

 

 

Name :

Mr. Ashok K. Basu

Designation :

Chairman

 

 

Name :

Dr. Pingali Venugopal

Designation :

Member

 

 

Name :

Mr. Harsh K Jha

Designation :

Member

 

 

Remuneration Committee:

 

 

Name :

Mr. A. C. Wadhawan

Designation :

Chairman

 

 

Name :

Mr. Dipak Banerjee

Designation :

Member

 

 

Name :

Dr. Pingali Venugopal

Designation :

Member

 

 

Name :

Mr. Koushik Chatterjee

Designation :

Member

 

 

Investment/Borrowing Committee:

 

 

Name :

Mr. Harsh K Jha

Designation :

Chairman

 

 

Name :

Mr. Dipak Banerjee

Designation :

Member

 

 

Name :

Mr. V. S. N. Murty

Designation :

Member

 

 

Shareholders' Grievance Committee:

 

 

Name :

Mr. Ashok Kumar Basu

Designation :

Chairman

 

 

Name :

Dr. Pingali Venugopal

Designation :

Member

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

12667590

50.09

http://www.bseindia.com/include/images/clear.gifSub Total

12667590

50.09

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

12667590

50.09

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

500

0.00

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

19645

0.08

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

250000

0.99

http://www.bseindia.com/include/images/clear.gifInsurance Companies

591451

2.34

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

15462

0.06

http://www.bseindia.com/include/images/clear.gifSub Total

877058

3.47

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1421911

5.62

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 million

8555734

33.83

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 million

1508198

5.96

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

257509

1.02

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

166506

0.66

http://www.bseindia.com/include/images/clear.gifTrusts

5500

0.02

http://www.bseindia.com/include/images/clear.gifClearing Members

85503

0.34

http://www.bseindia.com/include/images/clear.gifSub Total

11743352

46.44

Total Public shareholding (B)

12620410

49.91

Total (A)+(B)

25288000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

25288000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Foundry Grade Pig Iron.

 

 

Products :

Item Code No.

Product Description

72011000

Pig Iron – Foundry Grade

72031000

Scrap – Pig Iron

26180000

Granulated Slag

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Pig Iron

Tonnes

650000

477115

 

 

GENERAL INFORMATION

 

No. of Employees :

642 (Approximately)

 

 

Bankers :
  • Axis Bank
  • DBS Bank
  • Indusind Bank
  • Canara Bank
  • State Bank of India
  • IDBI Bank,
  • HDFC Bank
  • Bank of Boroda

 

 

Facilities :

Secured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

12.75% Non Convertible Debentures

180.000

315.000

Term Loans -From Banks

0.000

670.000

Working Capital Demand Loans

300.000

500.000

Cash Credit / Packing Credits

114.698

210.034

Total

594.698

1695.034

 

Notes :

 

The 12.75% Non - Convertible Debentures of Rs. 315.000 millions  are secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. These debentures are redeemable at par in three annual installments in the ratio of 30:30:40 at the end of 3rd, 4th and 5th year

 

from the date of allotment. First installment has been paid on January 7, 2012. The next date of redemption is on January 7, 2013.

 

The Term loan of Rs. Nil from State Bank of India carried a variable rate of interest at 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with otherterm lenders. The loan has been repaid on November 3, 2011.

 

The corporate loan of Rs. Nil from State Bank of India carried a variable interest of 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings , structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 13, 2011.

 

The Term loan of Rs. Nil from Canara Bank carried a variable rate of interest at 13.25% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 14, 2011.

 

Working Capital Demand Loans / Short Term Working Capital Loans of Rs. 300.000 millions and Cash Credit of Rs. 114.698 millions from banks are secured by way of hypothecation of moveable plant and machinery, stock, book debts and other current assets on pari passu first charge basis and by way of equitable mortgage over landed properties of Kharagpur unit ofthe Company together with all buildings, structures and all plant and machinery on pari passu second charge basis.

 

Loan from Holding Company of Rs. 220.000 millions is meant for long term use and will be repaid or converted into long term financial instrument after finalisation of the financing plan for the Karnataka Project or March 31, 2014 whichever is earlier. Short term loan from the Holding Company of Rs. 5000.00 lacs has been taken on October 14, 2011 for three months and has been rolled overforfurtherthree months.

 

Buyers' Credit from Banks are repayable at the end of six months from the date of disbursement which are falling due from April 2012.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Kolkata, West Bengal, India

 

 

Holding Company :

Tata Steel Limited

 

 

Subsidiary

Tata Metaliks Kubota Pipes Limited

 

 

Fellow Subsidiaries:
  • TM International Logistics Limited
  • Tata Steel Resources Australia Pty Limited
  • Tata Steel Processing and Distribution Limited
  • International Shipping and Logistics FZE
  • TRL Krosaki Refractories Limited (Formerly Tata Refractories Limited)*

 

*Ceased to be subsidiary effective May 31, 2011

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50,000,000

Equity Shares

Rs.10/- each

Rs. 500.000 Millions

10,000,000

8.5% Non Cumulative Redeemable Preference Shares

Rs.100/- each

Rs. 1000.000 Millions

 

 

 

 

 

Total

 

Rs. 1500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,288,000

Equity Shares

Rs.10/- each

Rs. 252.880 Millions

10,000,000

8.5% Non Cumulative Redeemable Preference Shares

Rs.100/- each

Rs. 1000.000 Millions

 

 

 

 

 

Total

 

Rs. 1252.880 Millions

 

Reconciliation of Number of shares

 

Particulars

For the year ended 31.03.2012

 

No. of Shares

Rs. In millions

Equity Shares

 

 

Issued :

 

 

At the beginning of the year

25,288,000

252.880

Issued during the year

-

-

At the end of the year

25,288,000

252.880

Subscribed and fully Paid up :

 

 

At the beginning of the year

25,288,000

252.880

Issued during the year

-

-

At the end of the year

25,288,000

252.880

 

Reconciliation of Number of shares

 

Particulars

For the year ended 31.03.2012

 

No. of Shares

Rs. In millions

8.5% Non Cumulative Redeemable Preference Shares

 

 

Issued :

 

 

At the beginning of the year

-

-

Issued during the year

10,000,000

1000.000

At the end of the year

10,000,000

1000.000

Subscribed and fully Paid up :

 

 

At the beginning of the year

-

-

Issued during the year

10,000,000

1000.000

At the end of the year

10,000,000

1000.000

 

Shares held by holding company or its subsidiaries

 

Particulars

31.03.2012

 

No. of Shares

%

Tata Steel Limited (Holding Company)

11,799,992

46.66%

Kalimati Investment Company Limited (Subsidiary of the Holding Company)

867,598

3.43%

 

12,667,590

50.09%

8.5% Non Cumulative Redeemable Preference Shares Tata Steel Limited (Holding Company)

10,000,000

100.00%

 

 

Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company Asat31.03.2012

 

Particulars

31.03.2012

 

No. of Shares

%

Tata Steel Limited

11,799,992

46.66%

 

 

Rights, preferences and restrictions attached to shares

 

Equity Shares

 

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

Non-cumulative Redeemable Preference Shares

 

Non-cumulative redeemable preference shares having a par value of Rs.100 carries a fixed rate of dividend of 8.5%. The dividends proposed by the Board of Directors are subject to approval of the ensuing Annual General meeting. The dividends are not accumulated in case it is not approved by the Annual General Meeting. The preference shares are redeemable at par value after a period for 36 months from the date of allotment. In case of liquidation the preference shareholders will have preference over the equity shareholders over the distribution of remaining assets of the Company.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1252.880

252.880

252.880

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

869.045

639.552

4] (Accumulated Losses)

(36.968)

0.000

0.000

NETWORTH

1215.912

1121.925

892.432

LOAN FUNDS

 

 

 

1] Secured Loans

594.698

1695.034

2089.765

2] Unsecured Loans

3625.827

1289.056

0.000

TOTAL BORROWING

4220.525

2984.090

2089.765

DEFERRED TAX LIABILITIES

66.530

66.530

66.530

 

 

 

 

TOTAL

5502.967

4172.545

3048.727

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1876.683

2042.505

2201.178

Capital work-in-progress

263.884

54.108

40.984

 

 

 

 

INVESTMENT

1018.152

739.652

469.201

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1368.460

2354.572

2429.356

 

Sundry Debtors
380.303

934.739

584.496

 

Cash & Bank Balances
720.459

20.353

94.669

 

Other Current Assets
57.708

1.188

0.000

 

Loans & Advances
959.027

561.622

375.809

Total Current Assets
3485.957

3872.474

3484.330

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
758.992

1578.078

2591.022

 

Other Current Liabilities
291.251

684.398

408.359

 

Provisions
91.466

273.718

147.585

Total Current Liabilities
1141.709

2536.194

3146.966

Net Current Assets
2344.248

1336.280

337.364

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

5502.967

4172.545

3048.727

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

11329.235

13183.059

10440.862

 

 

Other Income

287.946

120.982

286.186

 

 

TOTAL                                     (A)

11617.181

13304.041

10727.048

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

10367.918

11411.454

 

 

Employee benefit expense

296.433

267.734

 

 

 

Other expenses

1251.026

1173.041

 

 

 

Changes in stock of finished goods

535.475

(288.528)

 

 

 

TOTAL                                     (B)

12450.852

12563.701

9698.385

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

(833.671)

740.340

1028.663

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

256.201

287.097

358.021

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(1089.872)

453.243

670.642

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

164.745

166.450

164.153

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                (G)           

(1254.617)

286.793

506.489

 

 

 

 

 

Less

TAX                                                                  (H)

(348.604)

57.300

50.946

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

(906.013)

229.493

455.543

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

35.284

(121.571)

(577.114)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Debenture Redemption Reserve

0.000

72.638

0.000

 

BALANCE CARRIED TO THE B/S

(870.729)

35.284

(121.571)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

102.777

0.000

0.000

 

 

Raw Materials

3112.440

2854.600

4667.674

 

 

Spares

0.000

0.600

0.000

 

TOTAL IMPORTS

3215.217

2855.200

4667.674

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(35.83)

9.08

18.01

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

31.03.2013

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

2114.200

1822.600

2040.100

2686.000

Total Expenditure

2376.300

1879.700

1920.000

2503.800

PBIDT (Excl OI)

(262.100)

(57.100)

120.100

182.200

Other Income

254.700

76.100

01.200

51.500

Operating Profit

(07.400)

19.000

121.300

233.700

Interest

28.900

63.900

62.000

39.300

Exceptional Items

0.000

0.000

0.000

(556.900)

PBDT

(36.300)

(44.900)

59.300

(362.500)

Depreciation

39.700

39.200

41.900

40.200

Profit Before Tax

(76.000)

(84.100)

17.400

(402.700)

Tax

0.000

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

(76.000)

(84.100)

17.400

(402.700)

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

(76.000)

(84.100)

17.400

(402.700)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
(7.80)

1.72

4.25

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(11.07)

2.18

4.85

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(23.40)

4.85

8.46

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(1.03)

0.26

0.57

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
3.47

2.66

2.34

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.05

1.53

1.11

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

LITIGATION DETAILS

 

CALCUTTA HIGH COURT

 

CASE STATUS INFORMATION SYSTEM

 

Case: Pending

 

Status of INCOME TAX APPEAL (ITA) 103 of 2011

COMMISSIONER OF INCOME TAX, KOLKATA-I            Vs.          M/S. TATA METALIKS LIMITED, KOLKATA

Pet’s Adv.: S.S. SARKAR

Res’s Adv. :

Court No.: 17   Last Listed On: Monday, April 11, 2011

Category: INCOME TAX : REVENUE

Case Updated on : Monday, May 16, 2011

 

 

GENERAL CORPORATE INFORMATION

 

Subject is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal and at Redi in the State of Maharashtra.

 

 

CHANGES IN CAPITAL STRUCTURE:

 

Authorized Share Capital

 

TML has increased and changed the authorized share capital of the company from Rs 1000.000 Millions to Rs.1500.000 Millions by (i) retaining 50.000 Millions equity shares of Rs. 10 each aggregating Rs. 500.000 Millions (ii) re-classifying 50.000 Millions equity shares of Rs. 10/- each as 500.000 Millions preference shares of Rs.100/- each aggregating Rs.500.000 Millions; and (iii) creation of Rs. 500.000 Millions preference shares of Rs.  100/- each aggregating Rs.  500.000 Millions, through postal ballot.

 

Issued, subscribed and paid-up capital

 

The Company has received Rs. 1000.000 Millions from its holding company i.e. Tata Steel Limited (TSL) by way of equity and made an allotment of Rs. 10.000 Millions redeemable preference shares of Rs. 100/- each to TSL, on preferential allotment basis

 

BUSINESS RESULTS

 

In the year, TML passed through considerable difficulty mainly due to soaring prices of coal and iron ore. The price of coal and iron ore went up by 30% over the previous year while product prices could be raised only upto 17%. This reduction in the spread put considerable pressure on the margins.

 

Due to steep increase in price of lump ore from Karnataka associated with limited availability and significant drop in quality, TML had to suspend operations at Redi from October 2011. With only one plant in operation, the sales volume declined significantly from 473,332 tons in 2010-11 to 356,121 tons in 2011-12.

 

TML had entered into an agreement to sell the Redi Unit, and prepaid a considerable portion of the long term debt to make the unit unencumbered. The transaction could not be consummated due to irreconcilable differences with the buyer. This has resulted in an imbalanced capital structure. The Company is taking steps to restate the appropriate mix of long term and short term debts.

 

Kharagpur operations also incurred losses due to higher raw material costs, disruption in iron ore supply in the last quarter of the year and unstable blast furnace health that led to higher coke consumption.

 

Tata Metaliks Kubota Pipes Limited (TMKPL) subsidiary of the Company could increase the production of pipes by 143% from 20402 tons to 49,502 tons but could not achieve its business targets for the year due to lower net realizations arising out of intense competition in the ductile iron (the "DI") pipe industry. The DI Pipe business witnessed entry of three new manufacturers (including TMKPL) all located in the eastern part of the country. This brought about « 20-25% drop in net realization for pipes which made the business unprofitable for all manufacturers of DI Pipe. Towards the end of 2011-12, prices began moving up but are still below expected levels. The upward trend in coke and iron ore prices also caused a significant increase in the input cost of the business.

 

Thus, on a consolidated basis TML reported a Loss after Tax and Minority Interest of Rs. 1134.700 Millions in 2011-12 against a profit of Rs. 5.700 Millions in the previous year.

 

SALES PERFORMANCE

 

During 2011-12, the Company produced 352,322 tons of hot metal and sold 303,278 tons of pig iron (domestic 295942 tons with market share of 8% and export 7336 tons). The off-take of hot metal by the DI pipe business started to increase over the months and reached its maximum in March 2012. The sales performance of pig iron for the past five years is presented below:

 

Domestic prices of pig iron which were stable in the first quarter of 2011-12 started rising from August 2011 and thereafter again remained stable. International prices remained significantly lower than domestic prices and the company did not find it lucrative to export pig iron. Therefore, exports share in the total revenue was marginal. Pig iron market remained volatile and non-committal with regard to long term purchases. The total share of pig iron produced by secondary manufacturers has marginally declined from 89.64% in 2010-11 to 88.08% in 2011-12. Some pig iron producers had to curtail their production due to non availability of iron ore. Increased availability of low cost substitutes including basic grade pig iron and steel scrap, prompted foundries to reduce usage offoundry grade pig iron.

 

Expansion Projects

 

(i) Projects at Kharagpur

a) As previously reported, the Directors are hopeful of commissioning the 40m2 Sinter Plant at Kharagpur by September, 2012. This project will enable TML to substitute 50% ofthe expensive lump ore by sinter in the blast furnace burden.

b) The Board of Directors of the Company has also approved normal relining, modification and up gradation of MBF#2 at the Kharagpur Unit for its capacity enhancement from the current volume of 215m3 to a new volume of 259m3. The cooling water circuit of the blast furnace will also be modified to reduce water consumption. This, together with bell less top charging facility, will yield benefits to the Company through increase in production by 15000 THM/year, decrease in coke rate by 12 kg/THM and reduction in specific emission by 0.07 TC02/THM.

 

(ii) Karnataka Project

Further to the development reported last year, there have not been any major developments except on land acquisition. Against the approval for allotment of 2500 acres of land, the Company was asked to make advance payments to Karnataka Industrial Area Development Board (KIADB).

 

(iii) Backward integration - Acquisition of mines

The Company has taken up with Government to get a mining lease after submitting the prospecting report and mining lease application for Dongarpal Mines, from Government of Maharashtra. Proposals for acquisition of mines in the iron ore bearing states of Karnataka, Odisha, Jharkhand, Chhatisgarh for the 3 mtpa steel project as well as raw material linkages for Kharagpur project are being pursued.

 

 

INDUSTRY STRUCTURE AND DEVELOPMENTS :

 

While 2011-12 started on a positive note with the world economy coming out of the recessionary effects of previous years, economic, political and other developments soon turned the tide. The year witnessed considerable uncertainty with the debt crisis in Europe and prospects of a slowdown in other developed nations impacting overall growth prospects adversely. Emerging economies were not insulated and also experienced lower growth rates.

 

As a result, commodity prices went up almost to the peak levels experienced earlier, with the expectation that demand would be going up in the same way. Prices of iron ore, coking coal and thermal coal rose to unexpected levels.

 

Over and above this, there was a shortage of iron ore in India as a result of the ban on mining in most of the mines in Karnataka and many in Odisha. This embargo on mining resulted in shortfall of good quality iron ore supplies at competitive prices.

 

The Indian pig iron industry had to face these price and availability pressures and experienced contraction in margins. In 2011 -12, raw material prices have increased by more than 30% whereas pig iron prices increased partially upto 17% after a lag off our months. In addition, rising interest rates and depreciation of the Rupee against the US Dollar have put further stress on the profitability. The slowdown together with the restriction on iron ore mining in Karnataka had a severe impact on the performance of the Redi plant of the Company.

 

With continuing growth, albeit at a lower rate, in the automobile and energy sector, which are the major consumers of the casting manufacturers, demand for castings is expected to have a moderate growth. With higher availability of iron ore, after partial lifting of the ban on iron ore mining in Karanataka, pig iron producers will witness better capacity utilization. However, margins of pig iron industry are expected to be under pressure due to high raw material costs and the industry's inability to pass on the increased cost to its consumers.

 

In the domestic market, over the last two decades, market share of pig iron has moved from the integrated steel plants (Main producers) to the stand-alone pig iron units (Secondary producers).During 2011-12, for the first time, the share of production of the secondary producers fell by about one percent, since the secondary producers found the business less competitive , which resulted in curtailment of production.

 

 

INTERNATIONAL SCENARIO OF PIG IRON AND COKE PRICES 

 

Historically pig iron prices have been found to move in tandem with the coke prices and in general pig iron prices are US$ 80 -120 more than coke prices. In 2011-12 however, the gap between pig iron price and coke price narrowed significantly down to

$50.

 

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

 

The Company produced 342,597 tons of Pig iron in 2011-12 compared to 477,115 tons in the previous year. In 2011-12 the Company sold 356,121 tons of pig iron and hot metal to achieve a turnover of Rs. 1240.000 Millions in comparison to Rs. 14390.000 Millions of previous year turnover from sales of 473,332 tons. On a standalone basis, in 2011-12, the company incurred a Loss after Tax of Rs. 906.000 Millions against a Profit after Tax of Rs. 229.500 Millions in 2010-11.

 

Production at the Kharagpur unit suffered due to poor health of both the blast furnaces with dislodged refractory lining and leaking shell plates.

 

With availability being a constraint, iron ore for the Redi unit had to be sourced from multiple mines in the first half of 2011-12. On account differences in chemical composition, the coke rate was adversely impacted and this resulted in higher operating costs. The plant was shut down in the second half of the financial year in view of these difficulties and high prices of iron ore. The business transfer agreement for divestment of the Redi Plant could not be concluded on account of certain irreconcilable differences and was terminated in March 2012.

 

Offtake of hot metal by Tata Metaliks Kubota Pipes Ltd. (TMKPL) was higher in 2011-12 and it was able to produce 49502 tons of Ductile Iron (DI) Pipe in 2011-2012 compared to 20402 tons in 2010-11; an increase of 143% increase over the previous year. TMKPL achieved a sale of Rs. 2374.900 Millions in the domestic market. However, due to low capacity utilization and realizations, TMKPL incurred a loss of Rs. 444.300 Millions, an increase of 1.27% over the previous year.

 

Hence, on a consolidated basis the Company ended 2011-12 with a Loss before Tax and minority interest of Rs. 1701.000 Millions against a Loss before Tax and minority interest of Rs. 152.000 Millions in 2010-11.

 

 

OUTLOOK:

 

The projected addition of hot metal capacities by large integrated steel producers and the secondary pig iron manufacturers is likely to create a situation of oversupply as against the projected demand. The supply demand imbalance would keep pig iron prices under pressure. However, the raw material prices of iron ore and coal are expected to fall in the coming months when Karnataka's iron ore mines and Australia's coal mines start producing at the normalized level. The outlook for sourcing raw materials to Redi plant looks difficult until the ban on iron ore mining is completely lifted.

 

On account of low demand, capacities in the foundry industry are currently underutilized. In the long term perspective, this industry is destined to grow with the imminent growth in automobile and engineering sector. India is expected to emerge as a global hub of cast components. The Indian foundry industry is geared up to utilize the immense opportunity of becoming an Asian hub for supply of high quality castings for automotive, auto ancillary and other capital goods industries. Revised global forecast for 2015 suggests that world casting production will reach 93.500 Million tons from 91.400 Million tons in 2011. The Indian casting industry being the second largest casting producer (9.05 million ton in 2011) should further strengthen itself, resulting in higher consumption of pig iron. Hence, under current scenario the pig iron market is expected to remain depressed for some time now but is likely to improve with favourable demand and input costs in the future.

 

 

STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2013

 

 

Sr. No

 

 

 

Particulars

 

 

Standalone

Audited

Audited

Audited

Quarter Ended

Year to date

31.03.2013

31.12.2012

31.03.2013

I

Income from operations

 

 

 

 

a)   Net Sales/ Income from Operations

2870.200

1980.900

8441.000

 

  (Net of excise duly)

 

 

 

 

b)   Other Operaling Income

15.800

59.200

221.900

 

Total Income from operations (Net)

2686.000

2040.100

8662.900

2.

Expendilure

 

 

 

 

a)  Cost of materials consumed

1899.300

2173.800

7368.200

 

b)  Changes In inventories of finished goods

144.300

(6731.000)

(372.300)

 

c)  Employees benefit expense

116.600

77.500

334.100

 

d)  Depreciation and amortisation expense

40.200

41.900

161.000

 

e)  Other expenses

343.600

341 .800

1311.000

 

Total expenses [2(a) to 2(e)]

2544.000

1961.900

8802.000

3

Profitf(Loss) from operations before other income, finance costs and exceptional Items (1-2)

142.000

78.200

(139.100)

4.

Other Income

515.000

1.200

144.700

5

Profit'(Loss) from ordinary activities before finance costs and exceptional Items (3+4)

193.500

79.400

205.600

6.

Finance costs

39.300

62.000

194.100

7.

ProfltZ(Loss) from ordinary activities after finance costs but before exceptional Items (5-6)

154.200

17.400

11.500

8

Exceptional items

(566.900)

-

(556.900)

9.

Profit (+) / Loss (-) from ordinary activities before tax (7 + 8)

(402.700)

17.400

(545.400|

10.

Tax expense

-

-

 

11.

Net Profit (+) 1 Loss (-) from ordinary activities after tax (9 - 10)

(402.700)

17.400

(545.400)

12.

Extraordinary Items

 

 

 

13.

Net Profit (+) / Loss (-) for the period (11 +12)

(402.700)

17.400

(545.400)

14.

Net Profit / (Loss) for the period from continuing operations

211.300

64.200

241.200

15.

Net Profit / (Loss) for the period from discontinuing operations

(614.000)

(46.800)

(786.600)

16.

Paid-up equity share capital (Face value Rs.10/- per share)

252.900

252.900

252.900

17.

Reserve excluding Revaluation reserves as per balance sheet of previous accounting year

 

 

(582.400)

10

Earnings per share (EPS)

 

 

 

 

a) Basic and Diluted EPS before Extraordinary items (Rs.) (Not

(15.92)

0.69

(21.57)

 

annualised for quarters and year)

 

 

 

 

b). Basic and Diluted EPS after Extraordinary items (Rs)(Nol annualised for quarters and year)

(1S.92)

0.69

(21.57)

 

 

Sr. No

                                                                                                    Particulars

Quarter Ended

Year to date ended

 

 

31.03.2013

31.12.2012

31.03.2013

A.

Particulars of Shareholding

 

 

 

1.

Public shareholding

 

 

 

 

- Number of shares

12,620,410

12,619,860

12,620.410

 

- Percentage of shareholding

49.91%

49 90%

49.91%

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 the company)

b)   Non-encumbered

-

 

-

 

- Number of shares

12,667,690

12.668,140

12,667,590

 

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100%

100%

100%

 

- Percentage of shares (as a % of the total share capital of the company)

50.09%

50 10%

50.09%

 

Particulars

Quarter ended 31.03.2013

B   INVESTOR COMPLAINTS (Nos)

 

Pending at the beginning of the quarter

1

Received during the quarter

33

Disposed of during the quarter

33

Remaining unresolved at the end of the quarter

1

 

STANDALONE STATEMENT OF ASSETS AND LI8ILITIES

 

 

Particulars

Rs in Millions

Quarter ended

As on 31.03.2013

(Audited)

A. EQUITY AND LIABILITIES

 

1. Shareholder’s funds

 

(a) Share Capital

1252.900

(b) Reserves & Surplus

(582.400)

Sub-total - Shareholders' funds

670.500

 

 

2. Non-Current Liabilities

 

(a) Long term Borrowings

800.000

(b) Deferred tax liabilities (net)

66.500

(c) Other long term liabilities

--

(d) Long term provisions

53.200

Sub-total - Non-current liabilities

919.700

3. Current Liabilities

 

(a) Short term borrowings

2147.300

(b) Trade payables

2535.900

(c) Other Current Liabilities

1050.600

(d) Short term provisions

9.200

Sub-total - Current liabilities

5743.000

TOTAL EQUITY AND LIABILITIES

7333.200

TOTAL - EQUITY AND LIABILITIES

 

 

 

 B. ASSETS

 

1. Non-current assets

 

(a) Fixed Assets

2661.800

(b) Non current investments

988.100

(c) Deferred tax assets (net)

--

(d) Long term loans and advances

571.000

(e) Other non-current assets

2.000

Sub-total – Non-current assets

4222.900

2. CURRENT ASSETS

 

(a) Current Investments

--

(b) Inventories

1676.100

(c) Sundry Debtors

1212.200

(d) Cash & Bank Balances

17.700

(e) Loans & Advances

177.700

(f ) Other Current Assets

26.600

 

Sub-total - Current assets

3110.300

 

7333.200

TOTAL

 

 

 

UNSECURED LOAN

 

Particulars

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. In Millions)

Loans from Holding Company

720.000

220.000

Buyer's Credit from Banks

2905.827

1066.057

Repayable on Demand- From Banks

0.000

2.999

Total

 3625.827

1289.056

 

 

CONTINGENT LIABILITIES:

 

(Rs. in millions)

PARTICULARS

31.03.2012

(a) Cenvat credit disallowed

638.959

(b) Bills discounted

67.954

(c) Guarantees given to banks on behalf of subsidiary company for term loans 1 & 2

866.556

 

1. Includes a guarantee denominated in US dollar- USD 11,850,000

2. Loan outstanding against the guarantee as at 31.03.2012 Rs. 774.072 millions

 

 

FIXED ASSETS

 

  • Freehold Land
  • Leasehold Land
  • Freehold Buildings
  • Plant and Machinery
  • Furniture and fixtures
  • Office Equipments
  • Vehicles
  • Data Processing Equipments
  • Railway Sidings

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.55.99

UK Pound

1

Rs.84.19

Euro

1

Rs.71.86

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI / NIS

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

48

 

 

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.