MIRA
INFORM REPORT
|
Report Date : |
25.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SARDA ENERGY AND MINARALS LIMITED (w.e.f. 12.10.2007) |
|
|
|
|
Formerly Known
As : |
|
|
|
|
|
Registered
Office : |
73/A, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
23.06.1973 |
|
|
|
|
Com. Reg. No.: |
11-016617 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.358.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100MH1973PLC016617 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NGPR00172E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR6149L |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Pellets, Sponge Iron, Steel Billets, Wire Rods, Ferro
Alloys and Power. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 36810000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a manager of two entities, Chhattisgarh Electricity Company
Limited (CECL) and Riapur Gases Private Limited (RGPL). It is a
well-established company in the automobile field in Financial position of the company appears to be sound. Over all
fundamentals of the company appears to be strong and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
regular and as per commitments. Company can be considered good for normal business dealings at usual
trade terms and conditions |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
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
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
September 13, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities A1+ |
|
Rating Explanation |
Very strong degree at safety and lowest
credit risk. |
|
Date |
September 13, 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.
INFORMATION DENIED BY
MANAGEMENT NON – COOPERATIVE (91-712-2722407)
LOCATIONS
|
Registered Office : |
73/A, Central
Avenue, Shri Ram Niketan, Nagpur – 440
018, Maharashtra, India |
|
Tel. No.: |
91-712-2727509/ 2660071/ 5616707 / 2722407 |
|
Fax No.: |
91-712-2728207/ 2641171 / 2722107 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office/ Factory : |
|
|
Tel. No.: |
91-771-2216000 |
|
Fax No.: |
91-771-216198 /
2216199 |
|
|
|
|
Corporate Office : |
125, B-Wing, Mittal Court, Nariman Point, Mumbai - 400 021, Maharashtra, India. |
|
Tel. No.: |
91-22-22880080-81 |
|
Fax No.: |
91-22-22826680 |
|
|
|
|
Branch Office : |
Located At: · Delhi · Nagpur · Mumbai · Visakhapatnam · Ahmedabad · Barbil · Raigarh · Hongkong · Beijing Rep. |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Kamal Kishore Sarda |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
B.E (Mechanical) |
|
Experience : |
38 Years |
|
|
|
|
Name : |
Mr. G K Chhanghani |
|
Designation : |
Executive Director |
|
Qualification : |
B.E (Mechanical) |
|
|
|
|
Name : |
Mr. Pankaj Sarda |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. G D Mundra |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Asit Kumar Basu |
|
Designation : |
Director |
|
Date of Birth/Age : |
62 Years |
|
Qualification : |
BME |
|
Experience : |
More than 40 years in the field of finance |
|
Date of Appointment : |
31.01.2003 |
|
Other
Directorships/ Partnerships : |
·
ICRA
Online Limited ·
Pratibha
Syntex Limited |
|
|
|
|
Name : |
Mr. C.K. Lakshminarayanan |
|
Designation : |
Director |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
Bachelor of Technology |
|
Experience : |
He worked as a Plant Engineer for 8 years with Madras Petrochem Limited. Thereafter, he worked with Industrial Development Bank of India, firstly in Project finance and then in Investment Banking. Lastly, he worked as President and CEO of STCMS Electric Company Private Limited, which is operating a 250 MW IPP. |
|
Date of Appointment : |
28.01.2009 |
|
Other
Directorships/ Partnerships : |
· Shri Kailash Logistics Limited ·
Madhya Bharat Power Corporation Limited |
|
|
|
|
Name : |
Mr. G.S. Sahni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jitender Balakrishnan |
|
Designation : |
Director |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
B.E (Mech) National Institute of Technology (NIT) Madras University and Post Graduate Diploma in Industrial Management, Bombay University |
|
Experience : |
He has wide experience in the sectors like, Oil and Gas, Refineries, Power, Telecom, Airports, Roads, Ports, Steel, Cement, Fertilizers, Petrochemicals, Hotel, Pharmaceuticals, Paper, etc. |
|
Date of Appointment : |
30.07.2010 |
|
Other
Directorships/ Partnerships : |
· Bharti AXA General Life Insurance Company Limited · Bharti AXA Life Insurance Company Limited · Usha Martin Limited · Bhoruka Power Corporation Limited · Aditya Birla Finance Limited · Polyplex Corporation Limited · Binani Industries Limited · IL and FS Investment Managers Limited · S Kumars Nationwide Limited · India Glycols Limited · Essar Steel India Limited · Magus Estates and Hotels Limited · Shree Rajasthan Syntex Limited · Essar Services India Limited ·
Equinox Realty and Infrastructure Private
Limited |
|
|
|
|
Name : |
Mr. P R Tripathi |
|
Designation : |
Director |
|
Qualification : |
Mining Engineer |
|
|
|
|
Name : |
Mr. Rakesh Mehra |
|
Designation : |
Director |
|
Qualification : |
FCWA |
KEY EXECUTIVES
|
Name : |
Mr. P. K. Jain |
|
Designation : |
Chief Financial Officer - Cum – Company Secretary |
|
|
|
|
Name : |
Mr. Manish |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8153428 |
22.74 |
|
|
16466129 |
45.93 |
|
|
1000000 |
2.79 |
|
|
1000000 |
2.79 |
|
|
25619557 |
71.46 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
25619557 |
71.46 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
754834 |
2.11 |
|
|
2750 |
0.01 |
|
|
250 |
0.00 |
|
|
405680 |
1.13 |
|
|
1804891 |
5.03 |
|
|
1804891 |
5.03 |
|
|
2968405 |
8.28 |
|
|
|
|
|
|
3250116 |
9.07 |
|
|
|
|
|
|
3200639 |
8.93 |
|
|
707693 |
1.97 |
|
|
103590 |
0.29 |
|
|
11957 |
0.03 |
|
|
91633 |
0.26 |
|
|
7262038 |
20.26 |
|
Total Public shareholding (B) |
10230443 |
28.54 |
|
Total (A)+(B) |
35850000 |
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) |
35850000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Pellets, Sponge Iron, Steel Billets, Wire Rods, Ferro
Alloys and Power. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Union Bank of India · Bank of Baroda · UCO Bank · Axis Bank Limited ·
HDFC Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTE: Long Term
Borrowing Terms of
repayment The
non-convertible debentures are redeemable in three equal annual installments
commencing from July, 2015. The company has an option to redeem these
debentures earlier; however, no redemption will take place before the end of
3rd year from the date of allotment. External
commercial borrowings availed in foreign currencies are payable in 5 annual
installments (First three installments are 1/6th of the loan amount and
remaining 2 installments are 1/4th of the loan amount). First three
installments have already been paid. Rupee term loan
from a financial institution is payable in 12 equal quarterly installments
commencing from September, 2013. Rupee term loan
of Rs. 250.400 millions from bank is payable in 11 quarterly installments
starting from September, 2013 quarter. During the financial year 2013-14, 3
installments comprising 10% of the loan amount will be repaid, in the year
2014-15, 4 installments involving 20% and in the year 2015-16, 4 installments
involving 70% of the loan amount will be repaid. Rupee term loan
of Rs. 100.000 millions from bank is payable in 3 equal monthly installments starting
from March, 2014. Hire purchase
loan of Rs. 4.193 millions from bank is payable in 34 equal installments of
Rs. 0.194 millions starting from June, 2012. Deferred sales
tax loan is interest free and payable at the end of fifth year from the end of
the financial year of accrual. Security The
non-convertible debentures are secured by a registered mortgage of an
immovable property of the company situated at Ahmedabad. Term loans from
bank, working capital term loan from bank, financial institution, external
commercial borrowing and debentures are secured by first pari-passu charge by
way of hypothecation of entire movable and immovable assets of the company
situated at Industrial Growth Centre, Siltara, Raipur subject to prior charge
on current assets in favour of working capital bankers and by way of joint
equitable mortgage of immovable properties of the company situated at
Industrial Growth Centre, Siltara.
Hire purchase
loan from bank is secured by hypothecation of related vehicles. Short Term
Borrowing Security Working capital
loans from banks are secured by first pari-passu charge on stocks and book
debts and second paripassu charge on all present and future movable plant and
machinery and second charge by way of joint equitable mortgage of immovable
properties located at Industrial Growth Centre, Siltara, Raipur. These
facilities are also secured by irrevocable personal guarantees of Mr.
K.K.Sarda and Mr. Manish Sarda. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M. M. Jain and Associates Chartered Accountants |
|
Address : |
Shreemohini, Kingsway, Nagpur, Maharashtra, India |
|
|
|
|
Subsidiaries : |
Ř
Sarda Energy and Minerals Hongkong Limited,
Hongkong Ř
Sarda Global Ventures Pte Limited, Singapore Ř
Sarda Metals and Alloys Limited Ř
Sarda Energy Limited Ř
Parvatiya Power Limited Ř
Madhya Bharat Power Corporation Limited Ř
Sarda Hydro Power Private Limited Ř
Raipur Fabritech Private Limited Ř
Raipur Industrial Gases Private Limited |
|
|
|
|
Controlled
entities : |
Ř
Chhattisgarh Hydro Power LLP Ř
Shri Ram Electricity LLP |
|
|
|
|
Associate : |
Ř
Chhatisgarh Investments Limited Ř
Chhattisgarh Bricks Private Limited (Upto
14.12.2012) |
|
|
|
|
Related
enterprises where significant influence exists : |
Ř
R.R. Sarda and Company |
|
|
|
|
Joint ventures : |
Ř
Raipur Infrastructure Company Limited Ř
Madanpur South Coal Company Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35850000 |
Equity Shares |
Rs.10/- each |
Rs.358.500 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
358.500 |
358.500 |
358.500 |
|
(b) Reserves and Surplus |
8844.053 |
7723.465 |
6579.475 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9202.553 |
8081.965 |
6937.975 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3528.387 |
4506.722 |
3812.890 |
|
(b) Deferred tax liabilities (Net) |
433.103 |
499.614 |
360.740 |
|
(c) Other long term liabilities |
23.128 |
17.151 |
8.392 |
|
(d) long-term provisions |
114.728 |
83.476 |
77.500 |
|
Total Non-current Liabilities (3) |
4099.346 |
5106.963 |
4259.522 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1674.042 |
2038.519 |
2006.983 |
|
(b) Trade payables |
1038.802 |
834.863 |
657.853 |
|
(c) Other current
liabilities |
1569.143 |
907.545 |
819.775 |
|
(d) Short-term provisions |
36.333 |
48.998 |
136.420 |
|
Total Current Liabilities (4) |
4318.320 |
3829.925 |
3621.031 |
|
|
|
|
|
|
TOTAL |
17620.219 |
17018.853 |
14818.528 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7104.675 |
6860.668 |
6509.822 |
|
(ii) Intangible Assets |
437.468 |
456.126 |
352.573 |
|
(iii) Capital
work-in-progress |
618.458 |
1087.694 |
1240.341 |
|
(iv)
Intangible assets under development |
28.360 |
22.569 |
15.358 |
|
(b) Non-current Investments |
4021.950 |
2126.145 |
1105.404 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
651.284 |
1884.081 |
1114.335 |
|
(e) Other Non-current assets |
6.839 |
12.102 |
6.309 |
|
Total Non-Current Assets |
12869.034 |
12449.385 |
10344.142 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
3.122 |
5.139 |
417.437 |
|
(b) Inventories |
2199.890 |
2272.222 |
2587.588 |
|
(c) Trade receivables |
625.042 |
431.304 |
433.595 |
|
(d) Cash and cash
equivalents |
72.405 |
9.475 |
16.865 |
|
(e) Short-term loans
and advances |
1732.183 |
1591.469 |
992.574 |
|
(f) Other current
assets |
118.543 |
259.859 |
26.327 |
|
Total Current Assets |
4751.185 |
4569.468 |
4474.386 |
|
|
|
|
|
|
TOTAL |
17620.219 |
17018.853 |
14818.528 |
PROFIT AND LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13839.453 |
11001.770 |
8847.423 |
|
|
|
Other Income |
151.219 |
593.205 |
252.771 |
|
|
|
TOTAL |
13990.672 |
11594.975 |
9100.194 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
materials consumed |
7458.025 |
6287.740 |
5602.623 |
|
|
|
Purchases of
stock-in-trade |
373.287 |
140.477 |
440.739 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
160.736 |
(4.124) |
(632.574) |
|
|
|
Employee
benefits expense |
496.330 |
408.701 |
330.019 |
|
|
|
Other expenses |
2630.145 |
2386.483 |
1759.313 |
|
|
|
TOTAL |
11118.523 |
9219.277 |
7500.120 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2872.149 |
2375.698 |
1600.074 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
631.392 |
702.767 |
316.568 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2240.757 |
1672.931 |
1283.506 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
640.792 |
632.336 |
576.267 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1599.965 |
1040.595 |
707.239 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
345.663 |
(103.395) |
210.511 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
1245.302 |
1143.990 |
496.728 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4535.420 |
3603.930 |
3444.699 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Equity Dividend |
(107.550) |
0.000 |
(107.550) |
|
|
|
Tax on equity dividend |
(17.448) |
0.000 |
(17.447) |
|
|
|
Transfer to Debenture Redemption Reserve |
(62.500) |
(62.500) |
(62.500) |
|
|
|
Transfer to General Reserve |
(150.000) |
(150.000) |
(150.000) |
|
|
BALANCE CARRIED
TO THE B/S |
5443.224 |
4535.420 |
3603.930 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Fob value of exports (direct) |
1494.627 |
1135.110 |
1174.588 |
|
|
|
Interest received |
0.778 |
4.722 |
0.718 |
|
|
|
Dividend |
0.000 |
266.550 |
0.000 |
|
|
|
Discounts and
dispatch money received |
0.000 |
0.000 |
4.230 |
|
|
TOTAL EARNINGS |
1495.405 |
1406.382 |
1179.536 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
1940.788 |
834.933 |
1854.606 |
|
|
|
Components, stores and spare parts |
68.376 |
73.366 |
7.113 |
|
|
|
Capital goods |
22.329 |
46.970 |
95.953 |
|
|
TOTAL IMPORTS |
2031.493 |
955.269 |
1957.672 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
34.74 |
31.91 |
13.86 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Audited / UnAudited |
|
|
UnAudited |
|
Net Sales |
|
|
3090.600 |
|
Total Expenditure |
|
|
2538.400 |
|
PBIDT (Excl OI) |
|
|
552.200 |
|
Other Income |
|
|
207.700 |
|
Operating Profit |
|
|
759.900 |
|
Interest |
|
|
161.600 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
598.300 |
|
Depreciation |
|
|
158.500 |
|
Profit Before Tax |
|
|
439.800 |
|
Tax |
|
|
140.700 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
299.100 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
299.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.90
|
9.86 |
5.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.56
|
9.46 |
7.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.35
|
7.55 |
5.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.13 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.56
|
0.81 |
0.84 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10
|
1.19 |
1.24 |
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 |
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 |
Yes |
|
20] |
Export /
Import details (if applicable) |
No |
|
21] |
Market
information |
---------------------- |
|
22] |
Litigations
that the firm / promoter involved in |
---------------------- |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct of
the banking account |
---------------------- |
|
26] |
Buyer visit
details |
---------------------- |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last accounts
filed at ROC |
Yes |
|
30] |
Major
Shareholders, if available |
Yes |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No
of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2013 [Rs.
in Millions] |
31.03.2012 [Rs.
in Millions] |
|
Long Term
Borrowing |
|
|
|
Deferred payment
liabilities |
|
|
|
Deferred sales
tax loan |
94.097 |
131.925 |
|
|
|
|
|
Short Term
Borrowing |
|
|
|
Loans repayable on demand |
|
|
|
From banks |
|
|
|
Short term loans |
200.000 |
699.998 |
|
Other loans and advances |
|
|
|
Advances from customers |
35.948 |
67.290 |
|
|
|
|
|
Total |
330.045 |
899.213 |
OPERATIONS
During the year performance
of the manufacturing facilities and coal mine was satisfactory and saw all
round improvement over previous year. This was achieved through constant
endeavor at all levels for excellence. The operations at the iron ore mines
remained suspended due to law and order problems in the surrounding area.
PROJECTS
DEBOTTLENECKING,
MODERNIZATION AND EXPANSION PROJECT
The Company has
achieved financial closure for its Rs. 5500.000 millions project for
debottlenecking, modernization and expansion of existing manufacturing and
mining facility. The project will be executed over next 2 years.
PITHEAD THERMAL POWER
PLANT
The Company has
received Environmental Clearance for its 350 MW pithead thermal power plant,
subject to receipt of Stage-1 forest clearance. Coal mining plan for enhanced
capacity of coal mining has been prepared and submitted to concerned government
authorities. Project execution will be started after approval of the mining
plan.
CONTROLLED
ENTITIES
·
Sarda Energy and Minerals Hongkong Ltd, Hongkong
(SEMHKL), is a wholly owned subsidiary, functioning as global investment arm of
The Company. During the year , the subsidiary reported a net profit of Rs.
324.300 millions
·
Sarda Global Venture Pte. Ltd. Singapore (SGV), a wholly owned
subsidiary, has acquired economic interest in coal mines in Indonesia. Land
acquisition for mining is going on. During the year, the subsidiary reported a
net profit of Rs. 2.100 millions
·
Sarda Metals and Alloys Ltd. (SMAL), a wholly owned
subsidiary has executed 2x33 MVA Ferro Alloys plant backed by 80 MW captive
thermal power plant. In view of adverse market condition, SMAL is operating the
power plant only. Commercial operation of Ferro Alloys will be started on
improvement of economics of Ferro Alloys industry. The Company has made equity
investment of Rs. 2000.000 millions in the project. The project has reported
profit in the very first month of its commercial operation in March, 2013.
·
Sarda Energy Ltd. (SEL), a wholly owned
subsidiary, has taken up the project of 1320 MW super critical thermal power
project in Chhattisgarh. Nearly half of the required land has already been
acquired by the company. The matter of acquisition of balance land through
compulsory acquisition route is pending before the Hon’ble High Court of
Chhattisgarh and all activities have been deferred until the decision of the
Hon’ble High Court of Chhattisgarh is pronounced in the matter.
·
Parvatiya Power Ltd. (PPL), is operating 4.8
MW Loharkhet Small Hydro Power Project in Bageshwar District of Uttarakhand
since 2008. During the year 2012-13, the plant generated and supplied 19.270
millions KWh power achieving 46% capacity utilization factor. The company
earned a profit after tax of Rs. 17.800 millions. The Company continues to hold
51% stake in PPL.
·
Madhya Bharat Power Corporation Ltd. (MBPCL), is implementing
96MW Rongnichu Hydro Power Project near Gangtok in East Sikkim as a
run-of-the-river scheme. During the year, civil works gained momentum at all
construction fronts and the contracts for Hydro Mechanical Works were awarded.
The Projecthas got successfully registered as a CDM Project with UNFCCC. So
far, The Company has made an equity investment of Rs. 650.000 millions and
holds 58.73% share in the company.
·
Chhattisgarh Hydro Power LLP has been allotted
four run–of-the river Small Hydro Power Projects in Chhattisgarh with a total
generation capacity of 77 MW. The LLP has started work on first 24 MW Gullu
Hydro power project. The project is entitled for CDM benefits; MOEF has
conveyed Host Country Approval to Project for CDM registration on 29.06.2012.
The project is currently under validation stage. All these projects are
entitled for benefits in the form of subsidy from Ministry of New and Renewable
Energy, Clean Development Mechanism as well as Renewable Energy Certificates.
The Company has contributed Rs. 130.000 millions towards its share in the LLP
and holds 60.92% stake in CHP LLP.
·
Sarda Hydro Power Pvt. Ltd. (SHPPL) has been allotted 24
MW Kotaiveera and 9MW Ganeshpur Small Hydro Power Project in Chhattisgarh. Land
Acquisition and statutory approvals are in progress. The Company holds 60%
stake in SHPPL.
·
Shri Ram Electricity LLP (SRELLP) has been incorporated
as a special purpose vehicle (SPV) for setting up a captive thermal power plant
of 40 MW in the State of Chhattisgarh. The Company continues to hold 51% stake
in SRELLP. Techno-economic viability study is being carried out.
·
Raipur Fabritech Pvt. Ltd. (RFPL) has been
incorporated to undertake Steel fabrication activities at the site of closed
steel plant of The Company. The Company holds 52.38% stake in RFPL.
·
Raipur Industrial Gases Pvt. Ltd. (RIGPL) has been
incorporated to undertake activities related to production of industrial gases
at the site of Raipur Gases Private Limited. The company is yet to start its
operations. The Company holds 51% stake in RFPL.
JOINT VENTURES
·
Raipur Infrastructure Company Ltd. (RICL) operates a private
railway siding in Mandhar, Raipur. During the year 2012–13, the company has
earned profit of Rs. 13.700 millions as against Rs. 13.800 millions in the
previous year. RICL is also in the process of developing a private railway
siding allotted in Orissa. The process of approvals for land acquisition is
under progress. The Company holds one third share in the Joint Venture.
·
Madanpur South Coal Co. Ltd. (MSCCL) has been allotted
a coal block in Madanpur area of Dist. Korba of Chhattisgarh in consortium.
Most of the clearances required have been obtained however, the forest
clearance is yet to be granted by the Ministry of Environment and Forest,
Government of India and efforts are on to obtain the Forest Clearance at the
earliest. The Company holds a 20.63% stake in the joint venture.
AWARDS/APPRECIATION
During the year,
The Company received an award from the Chhattisgarh State AIDS Control Society
for the highest blood collection of 613 units at the Blood Donation Camp
organized in association with “Red Cross Society and CII Young Indians”.
MANAGEMENT
DISCUSSION and ANALYSIS
INDUSTRY STRUCTURE
and DEVELOPMENT
GLOBAL ECONOMIC
SCENARIO- 2012
As reported by
IMF, during 2012 world GDP witnessed growth of 3.2 percent against 4 percent
achieved in 2011. A growing number of developed economies have fallen into a
double-dip recession and those in severe sovereign debt distress moved even
deeper into recession. The sovereign debt crisis and economic recession in the
Euro zone, which recorded negative growth of 0.6 percent and continued
financial deleveraging in most developed economies affected capital flows to
emerging markets and other developing countries. These factors, combined with
spillover effects of expansionary monetary policies in developed economies,
also fueled volatility in primary commodity prices and exchange rates.
INDIAN ECONOMIC
SCENARIO- FY 2012-13
In FY 2012-13,
India’s GDP grew at 5 percent as against 6.2 percent in FY 2011-12. The fiscal
deficit could be contained to 4.9 percent against 5.80 percent in the previous
year but current account deficit reached to 4.8 percent of GDP against 4.2
percent in the previous year mainly on account of oil and gold imports.
Decelerating growth and increasing current account deficit put pressure on
rupee which depreciated by 6.7 percent on a year on year basis from Rs. 50.87
to Rs. 54.28 against the US Dollar. During current fiscal, the Indian rupee has
witnessed further depreciation breaking the psychological barrier of Rs. 60 to
a US Dollar creating new lows. Manufacturing and core sector also faced
challenges due to policy paralysis, uncertainties and increasing transaction
costs. Manufacturing recorded meager growth of 1.1 percent. Mining recorded
negative growth of 0.6 percent due to excessive regulation / control. High
interest costs took its toll on industrial growth and NPAs of banks also
increased substantially. Tax collections fell short of budgeted estimates.
In recent times,
government has taken various initiatives to revive growth and to control
deficit, the effect of which is yet to be felt. The US economy is showing signs
of recovery and US Fed has indicated tapering of quantitative easing, news of
which has hit capital flows to emerging economies like India. The government
has targeted reduction in CAD by at least 30 basis points.
IRON AND STEEL
The global steel
output reached a new high of 1519 Mn tonnes in 2012 against 1490 Mn tonnes of
2011 while global industrial production dropped to its lowest since 2009. China
produced 717 Mn tonnes of steel increasing its share in global production from
45.85 percent to 47.18 percent. India ranked fourth with an output of 77.56 Mn
tonnes registering a growth of 7.43 percent over 72.2 Mn tonnes.The per capita consumption
of steel in India was 59 Kg. as against 477 Kg. in China and global average of
217 Kg. The prices of steel saw sharp correction during the year. The steel
consumption in India continued to grow and India continued to be net importer
on account of increased demand of special grade of steel.
The Indian sponge
iron industry suffered badly on account of high cost and poor availability of
iron ore, natural gas and coal on the one side and increasing import of scrap
due to lower prices in the global market on the other keeping prices of
finished goods under pressure. In FY 2013, sponge iron production in India
dropped to 18.67 Mn tonnes against 20.56 Mn tonnes in FY 2012 and 23.25 Mn
tonnes in FY 2011, which is 20 percent fall in last two years. In last two
years, capacity utilization fell from 66.56 percent to 50.05 percent. Capacity
utilization of gas based plants fell from 64.48 percent to 40.90 percent. On
account of supply side issues, the domestic price of iron ore, coal and gas
remained high causing losses to the sponge iron plants which had to compete
with falling global prices of scrap. In spite of these adverse conditions,
India continues to remain the largest producer of sponge iron in the world.
Increasing capacity of iron ore pellet in the country is expected to address
issues on supply side of iron ore and help in improving viability of sponge
iron industry. In 2012-13, Indian Iron ore pellet industry did well. However,
huge quantity of the material was imported in the western part of the country.
Domestic prices dropped by around 20 percent as a result of poor margins and
low iron ore lump price. The pressure on margins is expected to continue with
new capacity additions but iron ore lump prices will prove to be savior.
FERRO ALLOYS
Manganese is an
essential non–substitutable element in steel making and with the increase in
steel production the consumption of Ferro Alloys is also increasing. The global
output of manganese alloys fell from 17.8 Mn tonnes in 2011 to 17.5 Mn tonnes
in 2012 down by 2 percent. The Mn ore output also fell from 55 Mn tonnes (with
Mn content of 17 Mn tonnes) to 53 Mn tonnes (Mn content of 16 Mn tonnes). The
Indian capacity is nearly 10 percent of the world’s Ferro Alloys production.
About 1/3rd of the country’s production is exported. India, South Africa, China
and the CIS countries represent a large source for Ferro Alloys. Manganese
alloys constitute about 62 percent of Ferro Alloys production. India has sixth
largest reserves of manganese ore with MOIL Ltd. controlling major and premium
quality reserves of country producing 42 percent of the total production. China
continued to be by far the largest importer with around 13 million MT of Mn
ore.
The fragile states
of major economies and new capacity additions led the manganese alloy sector to
suffer from oversupply inspite of increased consumption. Fierce competition
amongst domestic producers and exporters in a weak demand environment continued
to hamper the performance of ferro alloys. New capacities coming up in
Malaysia, where power cost is low, will intensify the competition in the ferro
alloys market.
OPPORTUNITIES AND
THREATS
OPPORTUNITIES
The strong
manufacturing base, developed infrastructure, sufficient land in possession,
environmental clearances and mineral resources available with the company
provide a good opportunity and base for growth in the core area of its
operation. The first phase of greenfield project at Vizag was commissioned
successfully and has reported profit in the very first month of its operation.
The project has advantage of power shortage in the Southern Grid where price of
power is much better over rest of the country. Complete infrastructure is
readily available for capacity addition. The company is examining proposal for
expansion. With the low gearing and strong cash flow, the company is in a
position to take advantage of the opportunities emerging in the present
economic scenario. The company has submitted mining plan for increase in the
capacity of coal mining from 1.2 million tonnes to 5.9 million tonnes. Once
approved, the increased capacity will support The Company’s future expansion
plan particularly in the power sector. The low per capita consumption of steel
and power in India provides huge potential in these sectors to meet the growing
demand for infrastructure and growth.
THREATS
The new capacity
additions in the ferro alloys sector backed by low cost power in overseas
market such as Malaysia and mineral resource may pose threat to the ferro
alloys industry. The captive ferro alloys plants from steel producers will
erode market of existing merchant ferro alloys plants. However, with its low
cost production with low cost power, strategic location, economic size,
prominent position in the market and established global clientele base, The
Company will be able to face the challenges.
The super critical
thermal power plants and falling prices of electricity will threaten survival
of smaller power plants supplying merchant power. The Company is captively consuming
most of the power generated. With the use of captive coal and waste heat, The
Company will be able to compete with the new age power plants. The 80 MW power
plant commissioned in Vizag gets advantage of power deficit in the zone.
OUTLOOK
Amid macro-economic
risks, both global and Indian economies are on recovery path. According to the
forecast of
International
Monetary Fund, the world GDP is expected to grow by 3.3 percent in 2013 with
the advanced economies growing by 1.2 percent and emerging economies by a much
faster rate of 5.3 percent. The Reserve Bank of India has projected India’s GDP
growth at 5.5 percent for the current financial year. The government is taking
steps to boost the GDP growth and to contain the current account deficit. Infrastructure
projects are being taken on fast track. In view of the impending elections, the
government spending is also expected to go up. The production of crude steel in
India is estimated to reach 126 million tonnes by FY 2016-17 and production of
Ferro Alloys is expected to go up to 3 million tonnes in the same year. Power
is expected to remain in short supply.
Against this
backdrop, the outlook of sectors in which the company is operating appears to
be stable / positive. However, substantial capacity addition may result in
demand supply mismatch and may put pressure on the margins.The Company has
taken cost optimization drive to sustain the pressure on the prices. The
motivated team and cost reduction drive taken up by the company will bring in
further savings. The 80 MW thermal power plant installed in a wholly owned
subsidiary is operating satisfactorily and is expected to fetch reasonably good
realisations in view of the shortage of power in the southern region of the
country. The decision about production of Ferro Alloys in this plant will be
taken depending upon realization from sale of power or its consumption in the
production of Ferro Alloys.
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013
|
|
|
Particulars |
Quarter Ended 30.06.2013 |
|
|
|
|
Unaudited |
|
1 |
Income from Operations |
|
|
|
|
|
Sales/Income from
Operations (Gross) |
3389.018 |
|
|
|
Less: Excise Duty |
315.016 |
|
|
a) Net Sales/Income from
Operations (net of excise duty) |
3074.002 |
|
|
|
b) Other Operating Income |
16.604 |
|
|
|
Total Income from
Operations (Net) |
3090.606 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials
consumed |
1590.422 |
|
|
b) |
Purchase of stock
in-trade |
101.686 |
|
|
c) |
Changes in inventories of
finished goods, |
(132.362) |
|
|
|
work-in-progress and
stock-in-trade |
|
|
|
d) |
Employee benefit expenses |
133.222 |
|
|
e) |
Depreciation and
amortization expense |
158.508 |
|
|
f) |
other expenses |
845.452 |
|
|
Total Expenses |
2696.928 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance |
|
|
|
|
costs and exceptional
items (1-2) |
393.678 |
|
4 |
Other Income |
207.683 |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and |
|
|
|
|
exceptional items (3+4) |
601.361 |
|
6 |
Finance Costs |
161.586 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities after finance costs but |
|
|
|
|
before exceptional items
(5-6) |
439.775 |
|
8 |
Exceptional Items |
- |
|
|
9 |
Profit /(Loss) from ordinary
activities before tax |
439.775 |
|
|
10 |
Tax Expense |
140.649 |
|
|
11 |
Net Profit /(Loss) from
ordinary activities after tax (9-10) |
299.126 |
|
|
12 |
Extraordinary items (net
of tax expense) |
- |
|
|
13 |
Net Profit /(Loss) for
the period (11-12) |
299.126 |
|
|
14 |
Paid up equity share
capital (Eq. shares of ^.10/- each) |
358.500 |
|
|
15 |
Reserve excluding
revaluation reserves |
|
|
|
16 |
|
Earnings per share
(before/after extraordinary items) of ?10/- |
|
|
|
|
each |
|
|
|
|
Basic |
8.34 |
|
|
|
Diluted |
8.34 |
|
|
|||
|
A |
|
Particulars of
shareholding |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of Shares |
10230443 |
|
|
|
- Percentage of
Shareholding |
28.54 |
|
2 |
|
Promoters and promoter
group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
- |
|
|
|
- Percentage of shares (
as a % of the total shareholding of |
0.00 |
|
|
|
the promoter and promoter
group) |
|
|
|
|
- Percentage of shares
(as a % of the total share capital of the |
0.00 |
|
|
|
Company) |
|
|
|
|
b) Non- encumbered |
|
|
|
|
- Number of shares |
25S619557 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of |
100.00 |
|
|
|
the promoter and promoter
group) |
|
|
|
|
- Percentage of shares (as
a % of the total share capital of the |
71.46 |
|
|
|
Company) |
|
|
|
Particulars |
Quarter
ended 30.06.2013 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
0 |
|
|
|
Received during the
quarter |
4 |
|
|
|
Disposed during the
quarter |
4 |
|
|
|
Remaining unresolved at
the end of the quarter |
0 |
NOTE:
1.
The
above accounts were reviewed by the Audit Committee and considered and approved
in the meeting of the Board of Directors held on 10.08.2013.
2.
Other
expenses include forex fluctuaion loss / (gain).
3.
The
other income for the quarter ended 30th June 2013 includes dividend received
from subsidiary of Rs. 168.700 Millions
4.
The
realizable value of coal middling stock has been reduced from Rs. 159.500
millions to Nil, pending receipt of approval for its sale from Govt.
authorities.
5.
The
share transfer books shall remain closed from 26th August 2013 to 31st August
2013 (both days inclusive) for ascertaining the names of the shareholders
entitled for dividend 2012-13. The same may be taken as notice u/s 154 of the
Companies Act 1956.
6.
The
figures for the corresponding previous periods have been restated / regrouped,
wherever necessary, to make them comparable.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
FOR THE QUARTER ENDED 30TH JUNE, 2013
|
|
Particulars |
Quarter ended 30.06.2013 |
|
1 |
Segment Revenue |
|
|
|
a) Steel |
2020.784 |
|
|
b) Ferro
Alloys |
986.960 |
|
|
c)
Unallocated |
98.835 |
|
|
Total |
3106.579 |
|
|
Less:
Inter Segment Revenue |
15.973 |
|
|
Net Sales/Income from operations |
3090.606 |
|
2 |
Segment Results Profit/(Loss)
before tax and interest and forex fluctuation gain/(loss) |
|
|
|
a) Steel |
357.627 |
|
|
b) Ferro
Alloys |
195.725 |
|
|
Total |
553.352 |
|
|
Add: i)
Interest and Forex fluctuation Gain/(Loss) |
(22.942) |
|
|
ii) Unallocable expenditure net off unallocable income.
Gain/(Loss) |
|
|
|
Total Profit before tax |
439.775 |
|
3 |
Capital Employed (Segment Assets - Segment
Liabilities) (Based on estimates in terms of
available data) |
|
|
|
a) Steel |
7740.040 |
|
|
b) Ferro
Alloys |
1008.806 |
|
|
c)
Unallocated |
3739.211 |
|
|
Total |
12488.057 |
FIXED
ASSETS:
· Freehold land
·
Leasehold land
·
Building
·
Plant and machinery
·
Furniture, fixture and equipment
·
Vehicle
CMT REPORT (Corruption, Money Laundering and 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 xist 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.61.41 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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 and operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.