MIRA INFORM REPORT
|
Report Date : |
02.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
JAI BALAJI INDUSTRIES LIMITED (w.e.f. 23.07.2007) |
|
|
|
|
Formerly Known
As : |
JAI BALAJI SPONGE LIMITED |
|
|
|
|
Registered
Office : |
5, Bentinck Street, Kolkata – 700001, West Bengal |
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|
Country : |
India |
|
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|
Financials (as
on) : |
31.03.2013 |
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|
|
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Date of
Incorporation : |
01.07.1999 |
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|
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Com. Reg. No.: |
21-089755 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs.637.776
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27102WB1999PLC089755 |
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|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
stock Exchanges |
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|
Line of Business
: |
Subject is engaged in the Manufacturing and Sale of Steel and Allied
Products. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 20000000 |
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|
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. The
company has incurred a loss in the Year 2012-13. There appears huge external
borrowings recorded by the company. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the outbreak
of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood opportunities
for the millions living in poverty as also the large contingent of young people
joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = B- |
|
Rating Explanation |
Risk prone credit quality and very high credit risk |
|
Date |
29.03.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk |
|
Date |
29.03.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
5, |
|
Tel. No.: |
91-33-22488173/9808 |
|
Fax No.: |
91-33-22430021 |
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E-Mail : |
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|
Website : |
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|
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Factory 1: |
Ranigunj G/1, Mangalpur Industrial Complex, Post– Baktarnagar,
District : Burdwan-713347, West Bengal, India |
|
Tel. No.: |
91-341-2441544 / 9403 |
|
Fax No.: |
91-341-2441544 / 9403 |
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|
|
|
Factory 2: |
Durgapur, Lenin Sarani, District Burdwan-713210,West Bengal, India |
|
Tel. No.: |
91-343-2553884/ 3885 |
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Fax No.: |
91-343-2553884/ 3885 |
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Factory 3 and 4 : |
Durgapur, Village Banskopa, P.O. Rajbandh, District- Burdwan-713212,
West Bengal, India |
|
Tel. No.: |
91-343-2532651 / 2652 |
|
Fax No.: |
91-343-2532653 |
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|
|
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Factory 5: |
Industrial Growth, Centre, Borai Village and P.O. Rasmada, District
Durg-491009 Chhattisgarh, India |
|
Tel. No.: |
91-788-2617218 / 2617248 |
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Fax No.: |
91-788-2617201 |
|
|
|
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Marketing Office: |
Located At:
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DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Aditya Jajodia |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Mr. Rajiv Jajodia |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Gourav Jajodia |
|
Designation : |
Director |
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|
Name : |
Ashim Kumar Mukherjee |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Shyam Bahadur Singh |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Satish Chander Gupta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Shailendra Kumar Majumdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amit Kumar Majumdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Jajodia |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Kumar Tantia |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Raj Kumar Sharma |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 05.08.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
As a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9929672 |
14.76 |
|
|
26785723 |
39.81 |
|
|
36715395 |
54.57 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
36715395 |
54.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2493972 |
3.71 |
|
|
2493972 |
3.71 |
|
|
|
|
|
|
11627147 |
17.28 |
|
|
|
|
|
|
2842892 |
4.23 |
|
|
4814814 |
7.16 |
|
|
8782266 |
13.05 |
|
|
8304547 |
12.34 |
|
|
470469 |
0.70 |
|
|
1 |
0.00 |
|
|
7249 |
0.01 |
|
|
28067119 |
41.72 |
|
Total Public shareholding (B) |
30561091 |
45.43 |
|
Total (A)+(B) |
67276486 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
67276486 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the Manufacturing and Sale of Steel and Allied
Products. |
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|
Products : |
|
PRODUCTION STATUS (As on 31.03.2013)
|
Particulars |
Installed Capacity [MT] |
Actual Production MT] # |
|
Sponge Iron |
345000 |
136419 |
|
Pig Iron |
509250 |
208010 |
|
Steel Bars / Rods |
260000 |
60518 |
|
Billet / MS Ingot |
906230 |
262920 |
|
Ferro Alloys |
106618 |
29305 |
|
Ductile Iron Pipe |
240000 |
41449 |
|
Power |
101.10 [MW] |
217.48 [MU] |
|
Sinter |
608000 |
382223 |
|
Coke |
350000 |
100056 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
--- |
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|
|
|
Joint Statutory Auditors : |
|
|
Name : |
Rashni and Company Chartered Accountant |
|
Address : |
213, Todi Chamber, 2 Lal Bazar Street, Kolkata – 700001, West Bengal,
India |
|
|
|
|
Name : |
U. Narain and Company Chartered Accountant |
|
Address : |
Room No.503, 5th Floor, Narayani Building, 27, Brabourme
Road, Kolkata – 700001, West Bengal, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Esskay Professional Private Limited Chartered Accountant |
|
|
322, Martin Burn House, 1,R.N. Mukherjee Road, Kolkata – 700001, West
Bengal, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Mondal and Associates Cost Accountant |
|
Address : |
45, Akhil Mistry Lane, Kolkata – 700009, West Bengal. India |
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|
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Subsidiary
Companies : |
|
|
|
|
|
Joint Venture
Companies |
|
|
|
|
|
Enterprises owned
or significantly influenced key management personnel or their relatives |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
101000000 |
Equity Shares |
Rs.10/- each |
Rs.1010.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
63781486 |
Equity Shares |
Rs.10/- each
|
Rs.637.815
Millions |
|
|
Less: Call in Arrear |
|
Rs.0.039
Million |
|
|
TOTAL |
|
Rs.637.776 Millions |
NOTE:
(a) Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period :
|
Particular |
No. of Shares |
Rs. in Millions |
|
At the beginning of the year |
63781486 |
637.711 |
|
Issued during the year |
-- |
0.065 |
|
Outstanding at the end of the year |
63781486 |
637.776 |
(b) Terms/rights
attached to equity shares
The Company has
only one class of ordinary shares (equity shares) having at par value of
Rs.10/- each. Each shareholder of ordinary shares (equity shareholders) is
entitled to one vote per share .The Company declares and pays dividend in
Indian Rupees. The dividend proposed by the Board of Directors is subject to
approval of the share holders in the ensuing Annual General Meeting except in
the case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distributions of all preferential amounts, in the proportions to their share
holdings.
(c) Equity shareholders holding 5% or more shares
|
Particular |
No. of Shares |
% Holding in The
Class |
|
Enfield Suppliers Limited |
11221233 |
17.59 |
|
Hari Management Limited |
7044533 |
11.04 |
|
CVCIGP II Client Rosehill Limited |
3886734 |
6.09 |
|
Aditya Jajodia |
3674576 |
5.76 |
|
TOTAL
|
25355565 |
40.48 |
As per the of the
Company, including its register of shareholders/members, the above
shareholdings represents legal ownership of shares.
(d) Aggregate number
of shares issued for consideration other than cash during the period of five
years immediately preceding the reporting date
|
Particular |
As on 31.03.2013 |
|
Equity Shares allotted as fully paid up for consideration other than
cash |
22000000 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 [9 Months] |
30.06.2012 [15 Months] |
31.03.2011 [12 Months] |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
637.776 |
637.711 |
637.711 |
|
(b) Reserves & Surplus |
4210.952 |
6342.230 |
9102.792 |
|
(c) Money
received against share warrants |
250.925 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5099.653 |
6979.941 |
9740.503 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
17286.835 |
4921.908 |
7364.836 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
183.052 |
1310.898 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
17286.835 |
5104.960 |
8675.734 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
5243.426 |
11582.587 |
8785.500 |
|
(b) Trade
payables |
9365.262 |
7934.794 |
3863.465 |
|
(c) Other
current liabilities |
2949.031 |
7407.733 |
3964.735 |
|
(d) Short-term
provisions |
65.004 |
45.502 |
234.101 |
|
Total Current
Liabilities (4) |
17622.723 |
26970.616 |
16847.801 |
|
|
|
|
|
|
TOTAL |
40009.211 |
39055.517 |
35264.038 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
19687.857 |
15508.056 |
16478.734 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
1118.150 |
5846.512 |
3791.017 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
809.710 |
809.560 |
834.115 |
|
(c) Deferred tax assets (net) |
845.589 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1157.751 |
1209.671 |
970.921 |
|
(e) Other
Non-current assets |
117.132 |
11.441 |
57.834 |
|
Total Non-Current
Assets |
23736.189 |
23385.240 |
22132.621 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
5943.470 |
8089.403 |
5716.659 |
|
(c) Trade
receivables |
6922.061 |
4868.499 |
5050.413 |
|
(d) Cash
and cash equivalents |
395.732 |
209.306 |
320.835 |
|
(e)
Short-term loans and advances |
1851.816 |
1557.348 |
1213.233 |
|
(f) Other
current assets |
1159.943 |
945.721 |
830.277 |
|
Total
Current Assets |
16273.022 |
15670.277 |
13131.417 |
|
|
|
|
|
|
TOTAL |
40009.211 |
39055.517 |
35264.038 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 [9 Months] |
30.06.2012 [15 Months] |
31.03.2011 [12 Months] |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15448.375 |
29332.312 |
21657.546 |
|
|
|
Other Income |
217.387 |
257.809 |
222.141 |
|
|
|
TOTAL (A) |
15665.762 |
29590.121 |
21879.687 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10621.026 |
23451.274 |
13584.682 |
|
|
|
Purchase of Stock in Trade |
15.572 |
12.662 |
451.206 |
|
|
|
Employee Benefits Expense |
493.610 |
731.006 |
540.657 |
|
|
|
Other Expenses |
3561.075 |
6077.674 |
4022.685 |
|
|
|
Changes in Inventories
of Finished Goods, Work-in-Progress and Stock-in-Trade |
1508.513 |
(1381.649) |
(241.440) |
|
|
|
TOTAL (B) |
16199.796 |
28890.967 |
18357.790 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(534.034) |
699.154 |
3521.897 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1764.470 |
3199.968 |
1563.723 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2298.504) |
(2500.814) |
1958.174 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
861.267 |
1387.594 |
828.065 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(3159.771) |
(3888.408) |
1130.109 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(1028.493) |
(1127.846) |
390.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(2131.278) |
(2760.562) |
739.509 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(372.870) |
2387.692 |
1677.269 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
0.000 |
25.513 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
3.573 |
|
|
BALANCE CARRIED TO
THE B/S |
(2504.148) |
(372.870) |
2387.692 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
68.818 |
454.075 |
412.519 |
|
|
TOTAL EARNINGS |
68.818 |
454.075 |
412.519 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2182.011 |
2925.301 |
700.493 |
|
|
|
Stores & Spares |
75.498 |
215.986 |
167.735 |
|
|
|
Capital Goods |
0.000 |
209.412 |
859.195 |
|
|
TOTAL IMPORTS |
2257.509 |
3350.699 |
1727.423 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(33.42) |
(43.28) |
11.60 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
6087.400 |
|
Total Expenditure |
|
|
5793.000 |
|
PBIDT (Excl OI) |
|
|
294.500 |
|
Other Income |
|
|
55.800 |
|
Operating Profit |
|
|
350.300 |
|
Interest |
|
|
792.600 |
|
PBDT |
|
|
(442.300) |
|
Depreciation |
|
|
337.800 |
|
Profit Before Tax |
|
|
(780.100) |
|
Tax |
|
|
(240.800) |
|
Profit After Tax |
|
|
(539.400) |
|
Net Profit |
|
|
(539.400) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 [9 Months] |
30.06.2012 [15 Months] |
31.03.2011 [12 Months] |
|
PAT / Total Income |
(%) |
(13.60)
|
(9.33)
|
3.37 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(20.45)
|
(13.25)
|
5.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.49)
|
(12.00)
|
3.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.62)
|
(0.55)
|
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
4.42
|
2.36
|
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
0.58
|
0.78 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATIONS DETAILS
|
CALCUTTA HIGH COURT CASE STATUS INFORMATION SYSTEM Case Status : Pending Status of : CIVIL SUITS (CS) 145 of 2012 KRISHNA COLE
(INDIA) PRIVATE LIMITED Vs. JAI BALAJI INDUSTRIES LIMITED Pet’s Adv. : A.P. Agarwalla Res’s Adv. : Court No. : 0 Last Listed on : No Data Mentioned Category : Money Claims/Compensation/Damages/Mesne Profits
Case Updated On : Tuesday, April 24, 2012 |
UNSECURED LOAN
Rs.
In Millions
|
Particular |
31.03.2013 [9 Months] |
30.06.2012 [15 Months] |
|
Long Term
Borrowings |
|
|
|
Rupees Loan From Financial Institutions |
0.000 |
362.500 |
|
Total |
0.000 |
362.500 |
GENERAL INFORMATION
Subject is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listedon three stock exchanges in India (Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange). The Company is engaged in the manufacture and sale of steel and allied products.
FINANCIAL HIGHLIGHTS
During the year 2012-13, the company incurred loss which can be mainly attributable to raw material price inflation, rising borrowing costs and other global factors. The Loss before exceptional and extraordinary items and tax was Rs.3159.771 Millions as compared to loss of Rs.3888.408 Millions in the previous year. The net loss for the year (nine months) was Rs.2131.278 Millions againt loss after tax of 2760.562 Millions in the previous year (fifteen months).
FINANCIAL YEAR
The previous financial year, 2011-12 was extended by three months thereby ending on 30th June, 2013. The Financial Year under reporting ended on 31st March, 2013, being a period of nine months, commencing on 1st July, 2012 ending on 31st March, 2013. Henceforth, the financial year of the Company shall commence on 1st April and end on 31st March every year, if not otherwise decided by the Board in any particular financial year.
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry Structure
and Development
Global Overview
The global economy appears to be transitioning toward a period of more stable but slower growth. The economic conditions improved modestly in the third quarter of 2012 aided by global growth increasing to about 3%. The economy improved marginally, driven mainly by emerging market economies, where activity picked up broadly as expected. Further global financial conditions improved in the fourth quarter of 2012. However, a broad set of indicators for global industrial production and trade suggests that global growth did not strengthen further. Uptick in global growth in the third quarter was partly due to temporary factors, including increased inventory accumulation. A sharp pullback in demand of steel in the third quarter has pushed up steel consumption in the fourth quarter.
The situation remained grim for the steel industry. However, the gobal steel demand is expected to grow over by 10% in the next five years. World Crude Steel production reached 1,548 MT for the year 2012, up by 1.2% compared to 2011.
Economy Outlook
Global economic outlook weakened both in developed and developing countries. In 2012-13, the industrial sector was plagued by a slowdown in demand and consumption, driven by policy slowdown. World crude steel production for the 62 countries reporting to the World Steel Association was 132 MT in April 2013, an increase of 1.2% compared to April, 2012 and accounted for more than 98% of world crude steel production. The average capacity utilization ratio in 2012 was 78.8% compared to 80.7% in 2011. World Steel Association expects the next 2 years to see a much better performance by projecting global demand for steel to increase by 2.9% in 2013 to 1,454 MT bettering the 1.2% growth seen in 2012 and then improve further in 2014 with a 3.2% and will reach 1,500 MT.
The crude steel capacity utilization ratio of the 62 countries in April, 2013 declined by 2.0% compared to April, 2012. Steel production rose despite an overall annual decline in the countries of European Union and in South America. China’s share of world crude steel production was 65.7 MT, up by 6.8% compared to April, 2012. The European economy recorded a decrease of 4.7% compared to 2011, producing 169.4 MT of crude steel in 2012. Steel makers in Asia and North America drove much of the 2012 growth. India remained the fourth largest crude steel producer thereby producing 77.6 MT during 2012 and a bright spot in the global steel industry.
According to IMF growth in global economy was more slow than expected, with risks increasing especially in emerging markets. Global growth is now projected at 3.1 for 2013 and 3.8 percent for 2014, a downward revision of ¼ percentage point compared with the April 2013. In developing and emerging economies the growth slowed down more than expected majorly due to global overcapacity and low demand.
Indian Economy
With the steady decline in the domestic economy’s growth rate, the Indian steel industry’s pace of growth slowed down and in terms of all the performance indicators viz., capacity creation, production, consumption, exports and price/ profitability, the performance of the industry fell below average. In foreign trade, Indian steel was also subjected to anti-dumping/safeguard duties as most developed economies invoked non-tariff barriers. Economic devastation caused by the Asian financial crisis, slowdown of the global economy and the impact of glut created by additional supplies from the newly steel-active countries (the steel-surplus economies of erstwhile USSR) were the factors that pulled down growth levels.
The Iron and Steel Industry contributes around 3 per cent of the Gross Domestic Product (GDP) and India’s GDP grew at 5% during 2012. Overall, India’s GDP is expected to climb to 6-6.5% in 2013- 14 due to a consumption revival. The growth in Indian economy slowed for the second year in succession to 5 % in 2012-13 against modest growth of 6.2% in 2011-12. Neverthless, it is unlikely that the support to Indian growth from the global economy will be significant. Managing growth and price stability are the major challenges of macroeconomic policymaking. In 2012- 13, India found itself in the heart of these conflicting demands. However, the boost to consumption, coupled with supplyside constraints, led to higher inflation. Monetary policy was tightened, even as external headwinds to growth increased. The consequent slowdown in 2012-13, has been across the board, with no sector of the economy unaffected. Falling savings without a commensurate fall in aggregate investment have led to a widening current account deficit. Steel prices are higher in India than global prices.
As such, the Indian economy has slowed sharply due to a string of factors, including
- euro zone crises
- geopolitical disturbances
- weather extremities
- high inflation
- high interest rates
- slowing global economy
- delay in implementation of projects
- policy logjam
- slowing industrial growth and
- declining business environment
However, the continued closure of older, higher-cost steelmaking capacity and increased demand should lead to improved profitability for the sector in 2014 and 2015, driven by better utilization rates.
Global Steel Industry
Overall the global steel industry witnessed steady growth during the year. Despite, increase in World Crude Steel output by 1.2% in 2012-13 as compared to 2011-12. The growth came mainly from Asia and North America while crude steel production in the EU and South America decreased in 2012. The crude steel production in India has reached approximately 100 million tonnes. There is significant overcapacity in the global steel sector which is putting pressure on operator’s profitability and demand-supply imbalances. China, India and other emerging markets continued to drive demand but demand levels remained lower. Looking ahead, global steel industry is likely to remain positive, but with lower growth.
Steel capacity
utilisation
Despite the global rise in tonnage, total capacity utilization was down. Unfavourable domestic and external economic conditions are set to pull down India’s steel consumption in the current calendar year due to a steep decline in manufacturing and construction activities. World economic slowdown had its effect of Steel sector making it vulnerable to production cuts and capacity outages. Emerging economies such as China and India were on the lowest side with high capacity utilization during the year.
All the major steel producing countries registered a positive growth in production. The crude steel capacity utilisation ratio for the 62 countries in January, 2013 declined to 71.2% from 73.2% in December, 2012 which is 5.5% lower.
Indian Steel Industry
Steel is a major raw material to the Indian development and steel industry is a booming industry in the whole world. Steel industry is vital for overall economic development of every nation as it is one of the core sectors. India is the largest producer of sponge iron in the world. Despite all the headwinds and lingering difficulties steel industry has delivered robust growth. With the introduction of new reforms, India though welcomed world steel majors; however their projects after hitting several road blockades are yet to generate output. The steel sector contributes to nearly 2 percent in the GDP and employs over 5 lakh people. Indian Steel industry is poised for greater growth catapulating India to the league of highest steel consuming nations of the world in the next decade.
India ranked as the fourth largest producer of crude steel in the world during the year after China, Japan, and the USA and also made a mark globally in the production of sponge iron/direct reduced iron (DRI).
The targeted steel production in India by 2019-2020 is over 276 MTPA. Growth in net exports has been negative due to the weakening of global demand. The production has been increasing at a moderate rate since 2006-07, while exports of finished steel during the year were low due to low demand of steel in euro zone.
Crude steel production grew at a CAGR of 7.7 per cent during the last five years ending 2011-12. With growth in production for sale lagging behind real consumption growth, India has turned into a net importer of finished steel since 2007-08 with rise in imports. Exports, on the other hand, have declined to ensure greater domestic availability during this period. The increase in production is driven by 8.8 per cent growth in crude steel capacity mainly in the private-sector plants and high utilization rates during this period according to the Economic Survey of India.
Steel Outlook
The Indian economy’s outlook for 2013-14 can be viewed as cautiously optimistic. Backed by policy actions announced in the recent budget, it is projected that India would return to the robust growth path of 7-8% over the next two to three years. Considering the forecasted growth in the economy and the prospects of the steel industry it is expected that the domestic demand for steel may increase marginally. The Steel Industry despite bearing burnt of global slowdown and variation in demand and supply has grown at sound pace India has reached 4th rank among the steel producing nations. Steel demand was low in 2013 due to continuing economic crisis, however, spurt in demand is expected in 2014-15. India Steel production has grown strongly in the recent decades and is likely to continue to expand to meet anticipated demand. World Steel Association expects steel demand to pick up and grow by 5.9% to 75.8 MT in 2013 following 2.5% growth in 2012 as monetary easing is expected support investment activities. In 2014, growth in steel demand is expected to further accelerate to 7.0% due to reform measures aimed at narrowing the fiscal deficit. The steel production in India is likely to grow at a CAGR of 8.8% during 2012-13 as indicated by the Government and external research.
The Government of India has framed the National Steel Policy to encourage the Steel industry to reach global benchmarks in terms of quality, cost and efficiency. Besides this, Government’s decision of increasing duty on the iron ore exports has charged up the domestic steel companies, as export of this raw material had heated up its cost. Achievement of self sufficiency in iron ore production has also boosted the morale of companies who are now looking forward for inventing technologically upgraded steel plant which can deliver similar output with usage of iron fines and non-coking coal, which is widely available.
The Country is expected to be the second largest steel maker in the world from its current fourth position followed by Brazil as the third ranked country. The major drivers such as pick up in agriculture, normal monsoon, lower interest rates, higher government spending and increase in consumption are expected to shape India’s growth prospects in 2013-14.
Domestic steel demand is expected to be muted in 2013-14 and profit margins in financial year 2013-14 to remain broadly similar to the financial year 2013-14. This is mainly due to persistent high cost of steel production. The World Steel Association has forecasted steel demand in India to grow at 5.9% and 7% in 2013-14 and 2014-15, respectively.
CONTINGENT LIABILITIES:
Rs. In Millions
|
Particulars |
31.03.2013 [9 Months] |
30.06.2012 [15 Months] |
|
a) Claims
against the Company not acknowledged as debts |
|
|
|
i) Excise and Service Tax Demands under dispute/appeal |
588.010 |
353.693 |
|
ii) Sales Tax / VAT matters under dispute /appeal |
673.699 |
1155.259 |
|
b) Letters of Credit, Bills discounted and Bank Guarantees outstanding |
1112.848 |
1153.370 |
|
c) Custom Duty on Import of Equipment and spare parts under EPCG
Scheme |
246.883 |
226.613 |
|
d) Guarantees and
Counter guarantees given by the Company for loans obtained by subsidiary company |
718.000 |
450.000 |
|
e) Guarantee given for Joint Venture Companies |
141.246 |
141.246 |
|
TOTAL |
3480.686 |
3480.181 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10450763 |
28/09/2013 |
1,985,600,000.00 |
UCO BANK |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
2 |
10450765 |
28/09/2013 |
230,000,000.00 |
UCO BANK |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
3 |
10423249 |
27/04/2013 |
25,594,500,000.00 |
UNITED BANK OF INDIA |
CORPORATE FINANCE BRANCH, 11, HEMANTA BASU SARANI, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
4 |
10427416 |
22/04/2013 |
25,594,500,000.00 |
UCO BANK (TITLE DEEDS HOLDERS) AND OTHER LENDERS |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
5 |
10412970 |
18/03/2013 |
25,594,500,000.00 |
ALLAHABAD BANK |
14, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 7 |
|
|
6 |
10418070 |
15/03/2013 |
25,594,500,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, MAGMA BUILDING,, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA |
|
|
7 |
10411695 |
14/03/2013 |
25,594,500,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, 1, SHAKESPEARE SARANI, |
|
|
8 |
10411539 |
08/03/2013 |
25,594,500,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, 21, CAMAC STREET, KOLKATA, WEST BENGAL - 700016, INDIA |
|
|
9 |
10411245 |
19/02/2013 |
8,079,400,000.00 |
UCO BANK (LEAD BANK) |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
10 |
10411269 |
19/02/2013 |
17,515,100,000.00 |
UCO BANK (LEAD BANK) AND OTHERS |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
11 |
10422134 |
18/01/2013 * |
25,594,500,000.00 |
UCO BANK AND OTHER LENDERS |
FALGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
12 |
10387180 |
28/09/2012 |
614,200,000.00 |
VIJAYA BANK |
6, HASTINGS PARK, KOLKATA, WEST BENGAL - 700027, INDIA |
|
|
13 |
10332686 |
09/01/2012 |
500,000,000.00 |
UNITED BANK OF INDIA |
11, HEMANTA BASU SARANI, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
14 |
10332935 |
09/01/2012 |
250,000,000.00 |
UNITED BANK OF INDIA |
11, HEMANTA BASU SARANI, KOLKATA, WEST BENGAL - 70 |
|
|
15 |
10319759 |
28/09/2012 * |
449,600,000.00 |
STATE BANK OF PATIALA |
MID CORPORATE BRANCH,, 8, CAMAC STREET, SHANTINIKETAN BUILDING, KOLKATA, WEST BENGAL - 700017, INDIA |
|
|
16 |
10312819 |
22/10/2011 |
700,000,000.00 |
UCO BANK |
FLAGSHIP CORPORATE BRANCH, 2, INDIA EXCHANFE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
17 |
10303232 |
24/08/2011 |
200,000,000.00 |
STATE BANK OF MYSORE |
RASH BEHARI AVENUE BRANCH, 180, RASH BEHARI AVENUE, KOLKATA, WEST BENGAL - 700029, INDIA |
|
|
18 |
10299739 |
03/08/2011 |
200,000,000.00 |
UCO BANK |
FLAGSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
19 |
10295156 |
30/06/2011 |
500,000,000.00 |
VIJAYA BANK |
ALIPORE BRANCH, 6, HASTINGS PARK ROAD, KOLKATA, WEST BENGAL - 700027, INDIA |
|
|
20 |
10291559 |
20/06/2011 |
500,000,000.00 |
UCO BANK |
FLAGSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
|
|
21 |
10293008 |
20/06/2011 |
100,000,000.00 |
SREI EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B15289143 |
|
22 |
10291675 |
05/06/2011 |
100,000,000.00 |
SREI EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BE |
B14814032 |
|
23 |
10275182 |
29/03/2011 |
305,000,000.00 |
UCO BANK |
FLAGSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
B08927584 |
|
24 |
10224740 |
24/05/2010 |
140,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 1/1, CAMAC STREET, 1ST FLOOR, KOLKATA, WEST BENGAL - 700016, INDIA |
A87677720 |
|
25 |
10223850 |
14/05/2010 |
500,000,000.00 |
BANK OF INDIA |
KOLKATA LARGE CORPORATE BRANCH, 5, B.T.M. SARANI, KOLKATA, WEST BENGAL - 700001, INDIA |
A86893062 |
|
26 |
10203478 |
04/03/2010 |
220,000,000.00 |
UCO BANK |
MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
A80110539 |
|
27 |
10203574 |
04/03/2010 |
500,000,000.00 |
UCO BANK |
MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA |
A80118847 |
|
28 |
10202844 |
29/01/2010 |
250,000,000.00 |
BANK OF INDIA |
KOLKATA CORPORATE BANKING BRANCH, 5, B.T. M. SARANI,, KOLKATA, WEST BENGAL - 700001, INDIA |
A79746624 |
|
29 |
10202508 |
22/02/2011 * |
20,728,900,000.00 |
CANARA BANK |
21, CAMAC STREET, BELLS HOUSE, GROUND FLOOR, KOLKATA, WEST BENGAL - 700016, INDIA |
B08576860 |
|
30 |
10192463 |
22/04/2013 * |
25,594,500,000.00 |
UCO BANK (TITLE DEEDS HOLDERS) AND OTHER LENDERS |
FLAGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
B75709808 |
* Date of charge modification
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30™ JUNE, 2013
Rs. In Millions
|
|
|
Quarter Ended |
|
SI.No |
Particulars |
30.06.2013 |
|
|
|
(Unaudited) |
|
1 |
Income from
Operations |
|
|
|
a) Net Sales / Income from Operations (Net of excise duty) |
6027.147 |
|
|
b) Other Operating Income |
60.267 |
|
|
Total Income from
Operation (net)(1a to 1b) |
6087.414 |
|
2 |
Expenses: |
|
|
|
a) Cost of materials consumed |
4004.646 |
|
|
b) Purchases of stock-in-trade |
- |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
280.739 |
|
|
d) Employee benefits expense |
164.728 |
|
|
e) Depreciation and amortisation expense |
337.805 |
|
|
f) Power and fuel |
4,66.680 |
|
|
g) Other Expenses |
876.157 |
|
|
Total expenses (2a
to 2g) |
6130.755 |
|
3 |
Profit / (Loss) from
operations before other in come, fin a nee costs and exceptional items (1-2) |
(43.341) |
|
4 |
Other Income |
55.817 |
|
5 |
Profit / (Loss)
from ordinary activities before finance costs and exceptional items (3+4) |
12.476 |
|
6 |
Finance costs |
792.611 |
|
7 |
Profit / (Loss)
from ordinary activities after finance costs but before exceptional items
(5-6) |
(780.135) |
|
8 |
Exceptional Item |
- |
|
9 |
Profit/ (Loss) from
ordinary activities before tax (7-8) |
(780.135) |
|
10 |
Tax Expense - Current tax |
|
|
|
- MAT credit entitlement |
- |
|
|
- Deferred tax charge / (credit) |
(240.763) |
|
|
Total |
(240.763) |
|
11 |
Net Profit/ (Loss)
from ordinary activities after tax (9-10) |
(539.372) |
|
12 |
Extraordinary Item |
- |
|
13 |
Net Profit/(Loss) for the period (11-12) |
(539.372) |
|
14 |
Paid-up Equity Share Capital (Equity Share of Rs.10/- each) |
637.776 |
|
15 |
Reserve excluding Revaluation Reserves |
- |
|
16 |
Earnings per share-(Before extraordinary items) |
|
|
|
- Basic (not annualised) (Rs.) |
(8.46) |
|
|
- Diluted (not annualised) (Rs.) |
(8.46) |
|
17 |
Earnings per share (after extraordinary items) |
|
|
|
- Basic (not annualised) (Rs.) |
(8.46) |
|
|
- Diluted (not annualised) (Rs.) |
(8.46) |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1, |
Public shareholding |
|
|
|
- Number of shares |
30,561,091 |
|
|
- Percentage of shareholding |
47.92 |
|
2. |
Promoters and
Promoter Group Shareholding |
|
|
|
A) Pledged/Encumbered |
|
|
|
- Number of shares |
30,782,233 |
|
|
- Percentage of shares (as a % of the total Shareholding of promoter and promoter group) |
92.66 |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
48.26 |
|
|
B) Non-encumbered |
|
|
|
- Number of shares |
2,438.162 |
|
|
- Percentage of shares (as a % of the total |
7.34 |
|
|
|
3.82 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
NIL |
|
|
Disposed of during the quarter |
NIL |
|
|
Remaininq unresolved at the end of the quarter |
NIL |
Notes:
- The above results have been reviewed by the Audit Committee and subsequently approved and taken on record by the Board of Directors of the Company in their respective meeting held on 5m August,2013
- Limited review of the Unaudited Standalone Financial Results for the quarter ended 30"1 June,2013 has been carried out by the statutory auditors of the Company.
- The figures for the preceding 3 months ended 31s1 March , 2013 are the balancing figures between the audited figures in respect of the nine months period ended 31s1 March , 2013 and the published year to date figures upto the second quarter of that financial year.
- The Company is mainly engaged in production of iron, steel and allied products and providing services in India. Hence, it operates in one business segment. Accordingly, no further disclosure is required under Accounting Standard 17- Segment Reporting, notified in Companies (Accounting Standards) Rules, 2006.
- Pursuant to the CDR arrangement, the Company, on 4* July, 2013, has allotted to two promoter group companies 10,000,000 warrants convertible into equity shares of 7. 10/- each at a price of 7. 50/- per equity share including a premium of 40/- on each such equity share. Out of the above, the Company has received full consideration in respect of 3,495,000 warrants which are now being converted byway of allotment of equity shares aggregating 3,495,000 equity shares of Rs.10/- each,
- Previous period figures are regrouped / restated, wherever nessecary.
FIXED ASSETS:
- Railway
Siding
- Plant and
Machinery
- Electrical
Installation
- Furniture and
Fixtures
- Office
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.36 |
|
|
1 |
Rs.101.20 |
|
Euro |
1 |
Rs.84.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
28 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.