MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

MONNET ISPAT AND ENERGY LIMITED (w.e.f  12.01.2006)

 

 

Formerly Known As :

MONNET ISPAT LIMITED

 

 

Registered Office :

Monnet Marg, Mandir Hasaud, Raipur – 492101, Chhattisgarh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.02.1990

 

 

Com. Reg. No.:

53-009826

 

 

Capital Investment / Paid-up Capital :

Rs. 643.550 Millions

 

 

CIN No.:

[Company Identification No.]

L02710CT1990PLC009826

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELM09084F

 

 

PAN No.:

[Permanent Account No.]

AAACM0501D

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturers of Sponge Iron, Steel and Ferro Alloys.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

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 94000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is the flagship company of the Monnet Group. It is a well established company having a fine track record.

 

The company has generated healthy cash flows and profitable operations over years.

 

Financial position of the company appears to be good and healthy. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

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 : AA-

Rating Explanation

High degree of safety and very low credit risk.

Date

7 December 2012

 

Rating Agency Name

CARE

Rating

Short term Bank Facilities : A1+

Rating Explanation

Very Strong degree of safety and low credit risk

Date

7 December 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office / Factory 1:

Monnet Marg, Mandir Hasaud, Raipur – 492101, Chhattisgarh, India

Tel No. :

91-771-2471334-339

Fax No. :

91-771-2471250

E-Mail :

monnet@monnetgroup.com

monnetraipur@monnetgroup.com

Website :

http://www.monnetgroup.com

 

 

Corporate Office :

Monnet House, 11, Masjid Moth, Greater Kailash Part-ll, New Delhi-110048, Delhi, India

Tel. No.:

91-11-29218542-46

Fax No.:

91-11-29218541

E-mail :

monnet@monnetgroup.com

isc_miel@monnetgroup.com

 

 

Factory 2 :

Village - Naharpali, Tehsil - Kharsia, District Raigarh - 496661,  Chhattisgarh, India

Tel No. :

91–7762-275451/ 52

Fax No. :

91–7762-275455

E-Mail :

mielrgh@monnetgroup.com

 

 

Factory 3 :

Monnet Power Company Limited


Village – Malibrahmani, P. O. – Nisha – 759130 Via – Kosala, District. -Angul, Orissa, India

Tel No. :

91-6764-224001 / 224002

Fax No. :

91-6764-224003

E-Mail :

angul@monnetgroup.com

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Mr. Sandeep Jajodia

Designation :

Chairman and Managing Director

 

 

Name :

Mr. C. P. Baid

Designation :

Dy. Managing Director

 

 

Name :

N.C. Jha

Designation :

Whole-time Director

 

 

Name :

Mr. G.C. Mrig

Designation :

Non Executive Independent Director

 

 

Name :

Mr. Amit Dixit

Designation :

Non Executive Independent Director

 

 

Name :

Mr. Ajay Relan

Designation :

Non Executive Independent Director

 

 

Name :

Mr. Vikram Deswal

Designation :

Non Executive Independent Director

 

 

Name :

Mr. Gopal Tiwari

Designation :

Non Executive Director

 

 

Name :

Mr. J.P. Lath

Designation :

Non Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. M.P. Kharbanda

Designation :

Company Secretary

 

 

Board Committees

 

Audit Committee

 

Mr. G.C. Mrig, Chairman

Mr. Ajay Relan, Member

Mr. J.P. Lath, Member

Mr. M.P Kharbanda, Secretary

 

 

Shareholders / Investors' Grievance Committee

Mr. J.P. Lath

Mr. Gopal Tiwari

Mr. C. P. Baid

 

 

Remuneration Committee

 

Mr. G.C. Mrig

Mr. Gopal Tiwari

Mr. J.P. Lath

 

 

Finance Committee

 

Mr. Sandeep Jajodia

Mr. C.P. Baid

Mr. J.P. Lath

 

 

Executive Committee

 

Mr. Sandeep Jajodia

Mr. C.P. Baid

Mr. J.P. Lath

 

 

Share Transfer Committee

 

Mr. J.R Lath

Mr. C.P. Baid

Mr. M.P Kharbanda

 

 

Name :

Mr. Devi Mathur

Designation :

Senior Vice President of Finance of Account

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

254448

0.40

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

25509725

40.03

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

6046168

9.49

http://www.bseindia.com/include/images/clear.gifDirectors/Promoters & their Relatives & Friends

6046168

9.49

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

31810341

49.91

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

 

 

Total shareholding of Promoter and Promoter Group (A)

31810341

49.91

(B) Public Shareholding

 

 

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

 

 

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

9751

0.02

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

66390

0.10

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

581356

0.91

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

24717528

38.78

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

25375025

39.82

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

 

 

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

4379010

6.87

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

 

 

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

1769850

2.78

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

242979

0.38

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

154476

0.24

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

56675

0.09

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

93505

0.15

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

2296

0.00

http://www.bseindia.com/include/images/clear.gifTrust & Foundation

2000

0.00

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

6546315

10.27

Total Public shareholding (B)

31921340

50.09

Total (A)+(B)

63731681

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

63731681

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Sponge Iron, Steel and Ferro Alloys.

 

 

Products :

Item Code No. (ITC Code)

Product Description

72.07

Mild Steel

72.03

Sponge Iron

72.02

Sponge Iron

NA

Power

 

PRODUCTION STATUS (AS ON 31.03.2012)

 

A. Production

Units

31.03.2012

- Sponge Iron

MT

742194

- MS /SS Products

MT

98061

-Structural Steel

MT

81204

- Ferro Alloys

MT

8993

-Coal

MT

850505

- Power

‘000 Units

858238

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Ø  Axis Bank Limited

Ø  Bank of Baroda

Ø  Bank of India

Ø  Central Bank of India

Ø  Dena Bank

Ø  ICICI Bank Limited

Ø  Indian Bank

Ø  Indian Overseas

Ø  Standard Chartered Bank

Ø  L and T Infrastructure Finance Company Limited

Ø  Life Insurance Corporation of India

Ø  Oriental Bank of Commerce

Ø  Punjab National Bank

Ø  State Bank of Bikaner and Jaipur

Ø  State Bank of Hyderabad

Ø  State Bank of India

Ø  State Bank of Patiala

Ø  The Jammu and Kashmir Bank Limited

Ø  UCO Bank

Ø  United Bank of India

 

 

Facilities :

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Long term Borrowing

 

10.5% Non-Convertible Redeemable Debenture of Rs. 1000/- each

redeemable at par.

800.000

800.000

10.5% Non-Convertible Redeemable Debenture of Rs. 1000/- each

redeemable at par.

1000.000

1000.000

12.5% Non-Convertible Redeemable Debenture of Rs. 1000/- each redeemable at par.

1200.004

1200.005

Short term Borrowing

 

 

Foreign currency loans

12124.091

10358.800

Rupee loans

11887.854

2622.394

Working Capital Facilities

1892.166

1792.508

From Banks

1500.000

900.000

From Institutions and Others

1000.000

0.000

Total

31404.115

18673.707

 

Note:

 

1 Term Loans, External Commercial borrowings (ECB) and Non Convertible Debentures (NCD) from financial institutions / Banks, are secured by first charge on all immovable and movable assets (present and future) of the Company (subject to prior charges on movables in favour of working capital banks) ranking pari - passu with the charges created in favour of participating financial institutions. Some of the loans /facilities are further guaranteed by the Managing Director of the Company.

 

2 Vehicle Loans from Banks are secured by hypothecation of the respective assets financed.

 

3 The repayment terms and rate of interest of term loans are as under:

 

a) Rupee Term Loan for Steel Project:- The Company has an outstanding balance of Rs. 10949.900 Millions of Rupee term loan with interest band of 1.50% to 2.25% plus base rate. These loans are repayable in 26 variable quarterly installments commencing from Financial Year 14.

 

b) Rupee Term Loan for Power Project:- The Company has an outstanding balance of Rs. 937.500 Millions of Rupee term loan with interest band of 1 1.75% to 13% repayable by Financial Year 201 6.

 

c) Foreign Currency Term Loan $ 192 Million: the loan is repayable in installments from Financial Year 201 4-1 5 to Financial Year 201 9-20 and carries interest rate of libor plus 4.25 to 4.6%.

 

d) Foreign Currency Term Loan 3 90 Million: the loan is repayable in Financial Year 201 2-1 3 and Financial Year 2013-1 4 and carries interest rate of libor plus 1.90%.

 

e) Unsecured Term Loan of Rs. 1500.000 Millions is repayable in monthly installments from Financial Year 2013-14 to Financial Year 201 7- 18.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

O.P. Bagla and Company

Chartered Accountants

Address :

New Delhi, India

 

 

Enterprise where KMP has significant influence:

Ø  A.P. Coal Washeries Private Limited

Ø  Monnet Global Limited

Ø  Monnet Overseas Limited

Ø  Monnet Daniel Coal Washeries Private Limited

Ø  Monnet Power Company Limited

Ø  Monnet Cement Limited

Ø  Monnet Enterprises PTE Limited

Ø  Rameshwaram Steel and Power Private Limited

Ø  Chattel Constructions Private Limited

Ø  Chomal Exports private limited

 

 

Subsidiary of Subsidiaries :

Ø  Pt Monnet Global

Ø  Monnet Enterprises DMCC

Ø  Pt. Serwa Sembada Karya Bumi

Ø  Monnet Global Liberia Limited

Ø  Monnet Global Guinea S.A.

Ø  Monnet Global Mali S.A.

 

 

Joint Ventures :

 

Ø  MP Monnet Mining Company Limited

Ø  Mandakini Coal Company Limited

Ø  Urtan North Mining Company Limited

Ø  Monnet Ecomaister Enviro Private Limited

 

 

CAPITAL STRUCTURE

 

AFTER 29.09.2012

 

Authorised Capital : Rs.2570.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 2387.317 Millions

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

13,20,00,000

Equity Shares

Rs. 10/- each

Rs. 1320.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6,43,37,807

Equity Shares

Rs.10/- each

Rs. 643.378 Millions

 

Add: Shares forfeited amount originally paid up

 

Rs. 0.172 Million

 

Total

 

Rs. 643.550 Millions

 

a) During the year, the Company has not issued / bought back any shares. Reconciliation of shares outstanding at the beginning and at the end of the reporting period is given below:

 

Particulars

31.03.2012

Number of shares outstanding as at the beginning of the year

64337807

Shares allotted against warrants

0

Shares allotted on conversion of Convertible Instruments

0

Shares allotted pursuant to Merger

0

Number of shares outstanding as at the end of the year

64337807

 

b) The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meeting of shareholders.

 

c) Following Shareholders’ hold equity shares more than 5% of the total equity shares of the Company at the end of the period :-

 

Particulars

% of Shareholding 31.03.2012

Pavitra Commercials Limited

6.35

Cecil Webber Engineering Limited

6.57

Kamdhenu Enterprise Limited

10.50

Udhyam Merchandise Private Limited

15.47

Chaturanan industries Limited

Nil

Nayan Traders Private Limited

Nil

Nikunj Jajodia

Below 5%

Blackstone GPV Capital Partners Mauritius

7.10

Deutsche Securities Mauritius Limited (FII Custodian)

8.23

 

d) The Company has issued the following shares for a consideration other than cash or bonus shares during the immediately preceding 5 years:

 

47,22,539 equity shares of t10 each were allotted as fully paid up for consideration other than cash pursuant to scheme of amalgamation of M/s. Mounteverest Trading and Investment Limited with the Company as per order dated 19-1 1-2010 passed by Honourable High Court of Chattisgarh.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

643.550

643.550

(b) Reserves & Surplus

 

22959.944

20257.806

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

23603.494

20901.356

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

28904.574

16373.824

(b) Deferred tax liabilities (Net)

 

1504.990

1412.382

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

62.379

33.621

Total Non-current Liabilities (3)

 

30471.943

17819.827

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

9439.328

9689.749

(b) Trade payables

 

611.827

1223.573

(c) Other current liabilities

 

4776.579

1770.110

(d) Short-term provisions

 

186.466

373.875

Total Current Liabilities (4)

 

15014.200

13057.307

 

 

 

 

TOTAL

 

69089.637

51778.490

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

13786.959

10935.681

(ii) Intangible Assets

 

0.538

1.451

(iii) Capital work-in-progress

 

20219.300

10653.295

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

5902.802

5167.046

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

4433.586

4714.504

(e) Other Non-current assets

 

797.352

11.607

Total Non-Current Assets

 

45140.537

31483.584

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

10.259

333.045

(b) Inventories

 

5623.675

3604.253

(c) Trade receivables

 

1788.205

1897.968

(d) Cash and cash equivalents

 

8733.295

6869.492

(e) Short-term loans and advances

 

7724.404

7566.719

(f) Other current assets

 

69.262

23.429

Total Current Assets

 

23949.100

20294.906

 

 

 

 

TOTAL

 

69089.637

51778.490

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

544.786

2] Subscription Against Share Warrants

 

 

268.825

3] Share Application Money

 

 

0.000

4] Reserves & Surplus

 

 

15916.860

5] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

16730.471

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

12509.230

2] Unsecured Loans

 

 

2440.605

TOTAL BORROWING

 

 

14949.835

DEFERRED TAX LIABILITIES

 

 

1319.333

 

 

 

 

TOTAL

 

 

32999.639

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

11283.170

Capital work-in-progress

 

 

7212.132

 

 

 

 

INVESTMENT

 

 

5454.039

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 
 
2188.051

 

Sundry Debtors
 
 
1288.661

 

Cash & Bank Balances
 
 
2052.423

 

Other Current Assets
 
 
0.000

 

Loans & Advances
 
 
5898.310

Total Current Assets
 
 

11427.445

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 
 
1491.496

 

Other Current Liabilities
 
 
311.542

 

Provisions
 
 
758.317

Total Current Liabilities
 
 

2561.355

Net Current Assets
 
 

8866.090

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

184.208

 

 

 

 

TOTAL

 

 

32999.639

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

18973.846

15730.493

14806.952

 

 

Other Income

631.536

293.217

317.501

 

 

TOTAL                                     (A)

19605.382

16023.710

15124.453

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

12079.516

9320.328

 

 

 

Purchase of stock in trade

0.000

11.243

 

 

 

Changes in inventories

(661.229)

(436.953)

 

 

 

Employee benefit expense

945.380

746.286

 

 

 

Other Expenses

1863.254

1718.907

 

 

 

TOTAL                                     (B)

14226.921

11359.811

10166.915

 

 

 

 

 

Less

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

5378.461

4663.899

4957.538

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

867.022

309.952

927.885

 

 

 

 

 

 

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

4511.439

4353.947

4029.653

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

741.068

738.638

716.655

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

3770.371

3615.309

3312.998

 

 

 

 

 

Less

TAX                                                                  (H)

881.766

803.732

621.955

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2888.605

2811.577

2691.043

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

9883.160

8067.514

6036.554

 

 

 

 

 

 

BALANCE B/F ON AMALGAMATION

0.000

0.000

116.427

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend

160.439

321.689

285.876

 

 

Tax on Dividend

26.027

52.186

48.585

 

 

Dividend paid

0.000

25.030

0.000

 

 

Transfer to General Reserve

289.000

282.000

270.000

 

 

Transfer to Debenture Redemption  Reserve

315.889

315.026

172.049

 

BALANCE CARRIED TO THE B/S

11980.410

9883.160

8067.514

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

987.999

813.119

466.427

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

0.000

0.000

10.054

 

 

Capital Goods including Spares

1456.898

1018.015

68.217

 

TOTAL IMPORTS

1456.898

1018.015

78.271

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

44.90

48.61

53.64

 

Diluted

43.48

46.91

47.73

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

31.03.2013

30.06.2013

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

5th Quarter

 Sales Turnover

5264.800

5494.000

4659.300

4378.100

4801.600

 Total Expenditure

3904.700

4191.100

3498.900

3308.700

3654.400

 PBIDT (Excl OI)

1360.100

1302.900

1160.400

1069.400

1147.200

 Other Income

55.000

51.000

117.700

252.700

236.200

 Operating Profit

1415.100

1353.900

1278.100

1322.100

1383.400

 Interest

304.800

200.700

289.400

301.200

394.800

 Exceptional Items

0.000

0.000

0.000

0.000

0.000

 PBDT

1110.300

1153.200

988.700

1020.900

988.600

 Depreciation

219.700

221.300

222.000

226.000

264.000

 Profit Before Tax

890.600

931.900

766.700

794.900

724.600

 Tax

205.600

219.000

191.800

264.500

199.600

Provision and Contingencies

0.000

0.000

0.000

0.000

0.000

 Reported PAT

685.000

712.900

574.900

530.400

525.000

Extraordinary Items      

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

685.000

712.900

574.9.000

530.400

525.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

14.73
17.55
17.79

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

19.87
22.98
22.37

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

8.78
10.15
14.59

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.16
0.17
0.20

 

 

 
 
 

Debt Equity Ratio

(Total Debt /Networth)

 

1.62
1.25
0.89

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

5.17
7.26
4.46

 

 

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

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

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

 

 

STATUS OF EXPANSIONS:

 

Steel:

 

The steel expansion at Raigarh is progressing as per schedule. 80 MW Power Plant is completed and commenced. Facilities like Blast Furnace, Sinter Plant, Rebar Mill etc. are getting commenced during the year and Pellet Plant and Coke Oven Plant will get completed in the 1st  half of  next financial year.

 

Power (Monnet Power Company Limited)

 

The Power Project of 1050 MW being set up in MPCL a subsidiary Company at Angul is also progressing with major milestones like boiler drum lifting and TG deck casting having been completed for both unit 1 and unit 2.  TG Building structure is in progress. The Company is well placed with work order on other modules like power evacuation system, cooling tower, intake water system besides two-third of chimney height having been erected. Boiler light-up is proposed in July 2013 with synchronization proposed in Sep-Oct 2013 for Unit 1 and December 2013 for Unit 2.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRIAL STRUCTURE AND DEVELOPMENTS / RISKS AND CONCERNS:

 

India emerged as the 4th largest producer of crude steel in the world as per data upto 31-12-2011 and it continues to remain the largest producer of DRI in the world. The crude steel production has grown mainly due to electric route of steel making particularly induction furnace route that accounts for 32% of total steel production.

 

During five year period of 2005-06 to 2010-11, the capacity of crude  steel production  expanded  from 51.17 MT to 78 MT on annual  basis  and  the production  of  crude  steel grew from 46.46 MT to 69.57 MT at an annual growth of 8%. The capacity utilization of crude steel, thus, as per the last numbers was at encouraging 89%.

 

The production of finished steel grew to 66.01 MT during 2010-11 as against 46.57 MT in 2005-06 with an annual growth of 7% but the consumption of finished steel grew at an annual growth of 9.6% during the same period. The export of steel grew by 23.8% and import reduced by 7%.  However, India still remains to be net importer of steel.

 

India continues to be the largest producer of sponge iron in the world in 2011 mainly on account of domestic availability of thermal coal and iron ore, the key resources for sponge iron. The contribution of coal based sponge iron is to the tune of 80% out of the total production. The total capacity of sponge iron industry stands at 35 MT. Though, India remains to be net exporter of pig iron which is mainly contributed by private sector. The Government has taken steps to discourage export of iron ore by increasing the ad valorem duty to 30% on all varieties of steel except pellets. There are no significant numbers of import/export of sponge iron.

 

Sponge iron industry has become highly sensitive to the supply and pricing of coal and iron ore. Both the raw materials are exposed to volatilities of pricing and supply which is quite challenging to the players exposed  to open market purchases. Coal availability has become more critical in the last two years, whereas both availability and pricing have become volatile in iron ore.

 

 

OPPORTUNITIES AND THREATS / OUTLOOK

 

The Indian Economy is poised at a critical juncture with deceleration in GDP growth of the country. The investment cycle in the country has deteriorated mainly in capital goods and infrastructure in the last one year.  The environment in the industry has become most challenging. The aggregate developments in the Global and local economy in the last one year have compounded the uncertainty in the economic outlook and its impact on commodity cycle. Demand for commodities including steel in the indigenous and global market is under pressure. The economic activity in the world is locked by problem in different regions and countries across the Globe. A major policy boost on the regulatory front and quick initiatives by the Government are required to renew the momentum of investment cycle to arrest any further downward pressure on the economy.

 

However,  this  blockage  of  investment has equally  impacted  the  steel industry  and  the industry is not adding or announcing fresh  capacities except the additions in the capacities currently in progress  in  various companies.  Issues of land aggregation and basic clearances have become a prolonged activity before physical mobilization of the projects. Therefore, the current virtual status quo in fresh expansions may result into a virtual freeze in supplies over the next few years. That is going to create enormous opportunities for the companies who are implementing  or  have completed their expansions, while the basic demand of steel will continue to grow  relative  to  the growth of GDP. Country may face supply side constraints, and is painting a very rosy picture for the industry for the future. Nonetheless, the current and ensuing year could be threatening to the companies which are completely exposed to raw material procurement from the open market and market conditions.

 

India has abundant resources of thermal coal and iron ore, the reasons for India`s rise as largest producer of sponge iron. The structure of sponge iron industry may be classified into organized and large players with 0.2 MT and higher capacities, and smaller players with 0.5 MT to 0.2 MT capacities. Some of the larger players have been able to integrate their operations partially or fully but the integration is missing in most of the small segment which has made them vulnerable to situations of depressed demands or low off takes. The operational sustainability of these players in times of low demands is extremely week resulting in partial or full closure of their operations. Thus, it reduces the supply in the industry which invariably helps the larger players in terms of their sale and margins. Therefore, partial or full integration to raw material is critical in the sponge iron.

 

Segment wise or Product wise Performance and Discussion on Financial Performance with respect to Operational Performance:

 

During the year, there have been no capacity additions at the plant.  The production of Sponge Iron and Steel has reported growth mainly on account sof higher capacity utilization, whereas Coal and Power Generation experienced marginal decrease. Consequently, both divisions have doubled the production during the year under report.

 

During the year, the Company has reported an increase in revenue by Rs. 3240.000 Millions over previous year and Profit before interest and depreciation has increased to Rs.5380.000 Millions from Rs.4660.000 Millions. Net profit however, remained flat on account of incidence of higher costs of raw material and overheads.

 

UNSECURED LOANS

 

PARTICULARS

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Long term Borrowing

 

0% Fully Convertible Debenture of Rs. 1000/- each.

392.625

392.625

Rupee loans

1500.000

0.000

Short term Borrowing

 

 

Foreign currency loans

536.684

1973.300

Rupee loans

4510.478

5023.941

Total

6939.787

7389.866

 

NOTE:

 

a) Working capital facilities from banks are secured by first charge on movable current assets and second charge on all immovable assets of the Company. These working capital loans are further guaranteed by Managing Director of the

Company.

 

b) Out of the Short Term Rupee Loans, Rs. 2499.400 Millions since repaid.

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10441745

09/07/2013

1,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BUILDING,GROUND FLOOR, KAMANI MARG,BALLARD
ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B80056252

2

10433886

29/06/2013

1,000,000,000.00

STATE BANK OF BIKANER AND JAIPUR

DEVIKA TOWER, 6, NEHRU PLACE, NEW DELHI, DELHI -
110019, INDIA

B78304656

3

10444190

27/05/2013

4,500,000,000.00

ILFS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTRE,PLOT C 22, G BLOCK,BANDRA
KURLA COMPLEX,BANDRA -(EAST) MUMBAI, MUMBAI, MAHAR
ASHTRA - 400051, INDIA

B76636083

4

10427758

24/05/2013

4,995,000,000.00

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA
- 400051, INDIA

B75791657

5

10413743

25/03/2013

1,400,000,000.00

STATE BANK OF PATIALA

2ND FLOOR, CHANDRALOK BUILDING, 36, JANPATH, NEW DELHI, DELHI - 110001, INDIA

B71428254

6

10412953

16/03/2013

1,500,000,000.00

IDBI BANK LIMITED

INDIAN RED CROSS SOCIETY BUILDING, 1,RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA

B71181028

7

10413534

27/02/2013

1,650,000,000.00

IDBI BANK LIMITED

INDIAN RED CROSS SOCIETY BUILDING,1, RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA

B71371306

8

10405818

31/12/2012

1,000,000,000.00

VIJAYA BANK

31/C, DDA COMPLEX, OPP - MOOLCHAND HOSPITAL, DEFENCE COLONY, NEW DELHI, DELHI - 110024, INDIA

B68860626

9

10388229

28/11/2012

4,995,000,000.00

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA
- 400051, INDIA

B62679311

10

10388708

27/11/2012

500,000,000.00

IDBI BANK LIMITED

INDIAN RED CROSS SOCIETY BUILDING,1, RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA

B62854567

 

NOTE: * Date of charge modification

 

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars

31.03.2012

31.03.2011

Claims against the company not acknowledged as debt

 

 

-       In respect of disputed Excise Demands

161.697

81.533

-       In respect of disputed Sales Tax Demands

71.460

9.514

-       In respect of disputed Entry Tax Demands

101.689

64.233

-       In respect of disputed Income Tax Demands

290.860

295.200

-       In respect of disputed Demands for water charges by Water Resources Division.

107.544

40.244

-       In respect of electricity Duty on generation of power

352.509

187.058

-       Other claims against the Company not acknowledged as debt.

107.670

33.610

 

STATEMENT OF STANDALONE AND CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH, 2013

(Rs. In Millions)

SLNo.

 

Particulars

3 Months ended

3 Months ended

12 Months ended

 

 

 

31.03.2013

31.12.2012

31.03.2013

1

Income from Operations

 

 

 

 

(a) Net Sales/Income from Operations (Net of excise duty)

4322.300

4586.000

19574.300

 

(b) Other Operating Income

55.800

73.300

221.900

 

Total income from operations (net)

4378.100

4659.300

19796.200

2

Expenses

 

 

 

 

(a) Cost of Materials consumed

1848.100

3325.700

11736.900

 

(b) Purchase of stock-in-trade

0.000

0.000

0.000

 

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

722.700

(607.800)

7.700

 

(d) Employee benefits expenses

286.200

280.400

1084.700

 

(e) Depreciation and amortization expense

226.000

222.000

889.000

 

(f) Other expenses(Any item exceeding 10% of the total expenses relating to continuing operations to be shown separately)

451.700

500.600

1988.100

 

Total Expenses

3534.700

3720.900

15706.400

3.

Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)

843.400

938.400

4089.800

4

Other Income

252.700

117.700

486.400

5

Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 + 4)

1096.100

1056.100

4576.200

6

Finance Costs

301.200

289.400

1192.100

7

Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 + 6)

794.900

766.700

3384.100

8

Exceptional Items

0.000

0.000

0.000

9

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

794.900

766.700

3384.100

10

Tax expense

264.500

191.800

880.900

11

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

530.400

574.900

2503.200

12

Extraordinary items (net of tax expense Rs. Millions)

0.000

0.000

0.000

13

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

530.400

574.900

2503.200

 

Cash Profit

815.800

835.300

3548.400

14

Share of Profit / (Loss) of associates

0.000

0.000

0.000

15

Minority Interest

0.000

0.000

0.000

16

Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (13 + 14 + 15)

-

-

-

17

Paid-up equity share capital

(Face Value Rs.10/- per Share fully paid-up)

637.300

637.300

637.300

18

Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year

-

-

25160.100

19

Earnings Per Share (EPS) (being same before and after extraordinary items) of Rs. 10/- each (not Annualized)

 

 

 

 

(a) Basic

8.28

 8.96

 39.07

 

(b) Diluted

8.02

 8.67

 37.83

 

Sr. No.

Particular

3 Months ended

3 Months ended

12 Months ended

 

 

31.03.2013

31.12.2012

31.03.2013

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

-  Number of Shares

31921340

31921340

31921340

 

-  Percentage of Shareholding

50.09

50.09

50.09

2

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged / Encumbered

 

 

 

 

-  Number of Shares

Nil

Nil

Nil

 

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

 

 

 

 

-  Percentage of Shares (as a % of total share Capital of the Company)

 

 

 

 

b) Non-Encumbered

 

 

 

 

-  Number of Shares

31810341

31810341

31810341

 

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

100.00

100.00

100.00

 

-  Percentage of Shares (as a % of total share Capital of the Company)

49.91

49.91

49.91

 

INVESTOR COMPLAINTS

(Rs. In Millions)

PARTICULARS

3 Months Ended 31.03.2013

Pending at the beginning of the quarter

25

Received during the quarter

58

disposed off during the quarter

49

Remaining unresolved at the end of the quarter

34

 

AUDITED SEGMENT-WISE REVENUE, RESULTS, CAPITAL EMPLOYED FOR THE QUARTER AND YEAR ENDED 31st MARCH, 2013

(Rs. In Millions)

SI. No.

 

Particulars

 

Quarter ended 31.03.2013

Quarter ended 31.12.2012

12 months ended 31.03.2013

1

"Segment Revenue (Net Sales / Income from each segment should be disclosed under this head)"

(a) Power

794.900

275.000

2606.700

 

(b) Steel

3906.700

4560.900

17996.500

 

(c) Unallocated

0.000

0.000

0.000

 

Total

4701.600

4835.900

20603.200

 

Less: Inter Segment Revenue

323.500

176.600

807.000

 

Net Sales / Income From Operations

4378.100

4659.300

19796.200

2

Segment Results (Profit) (+) / Loss (-) before tax and interest from each segment)

(a) Power

100.800

4.300

321.800

 

(b) Steel

742.400

934.100

3768.000

 

(c) Unallocated

0.000

0.000

0.000

 

Total

843.400

938.400

4089.800

 

Less: i) Financial Charges

301.200

289.400

1192.100

 

ii) Un-allocable Expenditure net off

0.000

0.000

0.000

 

ii) Un-allocable income

252.700

117.700

486.400

 

Total Profit Before Tax

794.900

766.700

3384.100

3

"Capital Employed (Segment assets - Segment Liabilities)"

(a) Power

5781.900

5781.900

5781.900

 

(b) Steel

22997.900

19582.900

22997.900

 

(c) Unallocated

0.000

0.000

0.000

 

Total

28779.800

25364.800

28779.800

 

AUDITED STANDALONE AND CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

 

 

 

 

As at current year end 31.03.2013

SI. No.

Particulars

 

A

EQUITY AND LIABILITIES

 

1

Shareholder's Funds

 

 

(a) Share Capital

2387.500

 

(b) Reserves and surplus

25160.100

 

(b) Money received against share warrants

0.000

 

Sub-total - Shareholders' Funds

27547.600

2

Share Application Money pending allotment

0.000

3

Minority Interest

0.000

4

Non-current Liabilities

 

 

(a) Long-term borrowings

40324.200

 

(b) Deferred tax liabilities (net)

1661.200

 

(c) Other Long Term liabilities

0.000

 

(d) Long-term provisions

60.100

 

Sub-total - Non-current Liabilities

42045.500

5

Current Liabilities

 

 

(a) Short-term borrowings

13991.800

 

(b) Trade payables

1244.200

 

(c) Other current liabilities

8774.200

 

(d) Short-term provisions

112.600

 

Sub-total - Current Liabilities

24122.800

 

TOTAL - EQUITY AND LIABILITIES

93715.900

B

ASSETS

 

1

Non-current Assets

 

 

(a) Fixed assets

50700.900

 

(b) Goodwill on consolidation

0.000

 

(c) Non-current investments

9315.000

 

(d) Deferred tax assets (net)

0.000

 

(e) Long-term loans and advances

8096.100

 

(f) Other non-current assets

836.200

 

Sub-total - Non-current Assets

68948.200

2

Current Assets

 

 

(a) Current investments

1.000

 

(b) Inventories

7790.400

 

(c) Trade receivables

2458.500

 

(d) Cash and cash equivalents

7191.700

 

(e) Short-term loans and advances

7218.900

 

(f) Other Current assets

107.200

 

Sub-total - Current Assets

24767.700

 

TOTAL-ASSETS

93715.900

 

NOTE:

 

  1. These Audited Financial Results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the Company held on 29th May, 2013.

 

  1. The Board of Directors have recommended, subject to approval of shareholders, a dividend of Rs.1.50 per equity share of Rs.10/-each, aggregating to Rs.112.500 Millions, including dividend distribution tax.

 

  1. The Board of directors have approved an appropriation of Rs. 251.000 Millions to the General Reserve.

 

  1. The consolidated accounts have been prepared as per Accounting Standard (AS) 21 on Consolidated Financial Statements and Accounting Standard (AS) 23 on Accounting for Investments in Associates in Consolidated Financial Statements notified in the Companies (Accounting Standard) Rules 2006.

 

  1. The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the 3rd quarter of the current financial year.

 

  1. The figures of Standalone and Consolidated Audited Statement of Assets and Liabilities are given below:-

 

  1. The figures for the previous periods are re-classified / re­arranged / re-grouped, wherever necessary, to correspond with the current period's classification / disclosure.
 
 

FIXED ASSETS:

 

Tangible assets:

Ø  Land and Site Development

Ø  Lease hold land

Ø  Railway Siding

Ø  Building

Ø  Plant and Machinery

Ø  Office Equipment

Ø  Furniture and Fixtures

Ø  Vehicle

 

Intangible assets:
Ø  Software

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]             INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]             Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]             Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]             Record on Financial Crime :

               Charges or conviction registered against subject:                                                                                None

 

5]             Records on Violation of Anti-Corruption Laws :

               Charges or investigation registered against subject:                                                                             None

 

6]             Records on Int’l Anti-Money Laundering Laws/Standards :

               Charges or investigation registered against subject:                                                                             None

 

7]             Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]             Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]             Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]           Press Report :

               No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

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

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

62

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)         Ownership background (20%)                   Payment record (10%)

Credit history (10%)                 Market trend (10%)                                 Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

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

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