MIRA
INFORM REPORT
|
Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
MUKAND LIMITED (w.e.f. 23.03.1989) |
|
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|
|
Formerly Known
As : |
MUKAND IRON AND STEEL WORKS LIMITED |
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Registered
Office : |
Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai –
400021, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
29.11.1937 |
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Com. Reg. No.: |
11-002726 |
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Capital
Investment / Paid-up Capital : |
Rs. 1470.500
Millions |
|
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|
|
CIN No.: [Company Identification
No.] |
L99999MH1937PLC002726 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM19254E |
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PAN No.: [Permanent Account No.] |
AAACM5008R |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Alloy Steel and Stainless Steel Long Products
that feed into the Auto Components, Engineering, Defence and Fastners
Industries. |
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|
|
|
No. of Employees
: |
1978 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 85000000 |
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|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. The rating reflects company’s moderate financial risk profile marked by
losses that company has incurred from its operation and below average
financial performance. However, trade relations are fair. Business is active. Payments are
reported to be slow but correct. The company can be considered for business dealings with some
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes that many things such as apartment
sales, luxury products, etc. were largely bought with dirty money. And it is
now beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-22-21727500)
LOCATIONS
|
Registered Office : |
Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai –
400021, Maharashtra, India |
|
Tel. No.: |
91-22-61216666/ 61216629 |
|
Fax No.: |
91-22-22021174 |
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E-Mail : |
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Website : |
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Factory 1 : |
Thane-Belapur Road, Dighe, Kalwe, Thane – 400605, Maharashtra, India |
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Tel. No.: |
91-22-21727500/ 7700 |
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Fax No.: |
91-22-25348179 |
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Factory 2 : |
Ginigera, Karnataka – 583228, India |
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Branch Offices : |
Located at : ·
Bangalore ·
Chennai ·
Delhi ·
Kolkata ·
Visakhapatnam |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Nirajkumar Ramkrishnaji Bajaj |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Mount Unique, 13th Floor, 62 Peddar Road, Mumbai – 400026, Maharashtra, India |
|
Date Of Birth/Age : |
10.10.1954 |
|
Qualification : |
B.Com., M.B.A. (Harvard Business School) |
|
Experience : |
33 Years |
|
Date Of Appointment : |
03.07.1989 |
|
DIN No. : |
00028261 |
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|
|
Name : |
Mr. Rajesh Viren Shah |
|
Designation : |
Co-Chairman and Managing Director |
|
Address : |
7 Janaki Kutir, Juhu Tara Road, Juhu, Mumbai – 400049, Maharashtra,
India |
|
Date Of Birth/Age : |
01.10.1951 |
|
Qualification : |
M.A.(Cambridge), M.B.A.(California), P.M.D.(Harvard Business
School) |
|
Experience : |
37 Years |
|
Date Of Appointment : |
03.07.1989 |
|
DIN No. : |
00033371 |
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|
|
|
Name : |
Mr. Suketu Viren Shah |
|
Designation : |
Managing Director |
|
Address : |
A/52 Darshan Apartments,
Mount Pleasant Road, Malabar Hill, Mumbai – 400006, Maharashtra, India |
|
Qualification : |
B.Com.(Hons.),M.B.A (Harvard Business School) |
|
Experience : |
32 Years |
|
Date Of Birth/Age : |
04.12.1954 |
|
Date Of Appointment : |
03.07.1989 |
|
DIN No. : |
00033407 |
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|
|
|
Name : |
Mr. Dhirajlal Shantilal Mehta |
|
Designation : |
Director |
|
Address : |
301/302 Goragandhi Apartments, 3 Laburnam Road, Gamdevi, Mumbai –
400007, Maharashtra, India |
|
Date Of Birth/Age : |
27.04.1936 |
|
Date Of Appointment : |
22.07.1976 |
|
DIN No. : |
00038366 |
|
|
|
|
Name : |
Mr. Vinod Sakarchand Shah |
|
Designation : |
Director |
|
Address : |
11 Om Surya Vihar Co Op Housing Society Ltd, Road No 25 – B, Sion Matunga
Scheme No 6, Mumbai – 400022, Maharashtra, India |
|
Date Of Birth/Age : |
07.11.1930 |
|
Date Of Appointment : |
03.07.1989 |
|
DIN No. : |
00033327 |
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Name : |
Dr. N P Jain, IFS (Retd.) |
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Designation : |
Director |
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|
Name : |
Mr. Narendra J Shah |
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Designation : |
Director |
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|
Name : |
Mr. N C Sharma |
|
Designation : |
Director |
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|
Name : |
Mr. Prakash V Mehta |
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Designation : |
Director |
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|
Name : |
Mr. Pradip P Shah |
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Designation : |
Director |
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|
Name : |
Mr. Amit Yadav |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
K J Mallya |
|
Designation : |
Company Secretary |
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MANAGEMENT TEAM |
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Corporate : |
· Niraj Bajaj Chairman and Managing Director Rajesh V Shah Co-Chairman and Managing Director Suketu V Shah Joint Managing Director S B Jhaveri Chief Financial Officer |
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Steel Division : |
· A M Kulkarni Chief Executive (Steel Plant, Thane) R Sampath Kumar Upto May 2, 2014 Chief Executive (Steel
Plant, Ginigera) B K Tiwari With effect from May 3, 2014 Chief Operating
Officer (Steel Plant, Ginigera) C H Sharma Technical Advisor, Steel Sidharth Shah Chief of Materials Management V M Mashruwala Chief of Marketing (Alloy and Stainless
Steel) Virendra K Mital Business Development Director |
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|
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Industrial
Machinery Division : |
R Jagannathan Chief Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
41306997 |
29.21 |
|
|
62424011 |
44.15 |
|
|
103731008 |
73.36 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
103731008 |
73.36 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6007 |
0.00 |
|
|
101439 |
0.07 |
|
|
7244583 |
5.12 |
|
|
908621 |
0.64 |
|
|
8260650 |
5.84 |
|
|
|
|
|
|
10295203 |
7.28 |
|
|
|
|
|
|
10071732 |
7.12 |
|
|
8585500 |
6.07 |
|
|
461768 |
0.33 |
|
|
34921 |
0.02 |
|
|
426847 |
0.30 |
|
|
29414203 |
20.80 |
|
Total Public
shareholding (B) |
37674853 |
26.64 |
|
Total (A)+(B) |
141405861 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
141405861 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 Million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Alloy Steel and Stainless Steel Long
Products that feed into the Auto Components, Engineering, Defence and
Fastners Industries. |
GENERAL INFORMATION
|
No. of Employees : |
1978 (Approximately) |
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Bankers : |
· Central Bank of India Union Bank of India Housing Development Finance Corporation Limited Export Import Bank of India Dena Bank |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
Bajaj Finance Limited |
|
|
|
|
Auditors : |
|
|
Name : |
Haribhakti and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
· Mukand Global Finance Limited (MGFL) Mukand International Limited (MIL) Vidyavihar Containers Limited (VCL) Mukand Vijayanagar Steel Limited (MVSL) Mukand International FZE (MIFZE) Mukand Sumi Metal Processing Limited (MSMPL) w.e.f.
29.10.2012 |
|
|
|
|
Other related parties where control exists
: |
· Mukand Engineers Limited (MEL) Bombay Forgings Limited (BFL) Stainless India Limited (SIL) Hospet Steels Limited (HSL) |
|
|
|
|
Joint Ventures : |
Mukand Vini
Mineral Limited (MVML) |
|
|
|
|
Other related parties where significant
influence exists or where the related party has significant influence on the
Company : |
· Kalyani Mukand Limited Lineage Investments Limited (upto 29.03.2013) Catalyst Finance Limited (upto 29.03.2013) Econium Investments and Finance Limited (upto 29.03.2013) Fusion Investments and Financial Services Limited (upto
29.03.2013) Primus Investments and Finance Limited (upto 29.03.2013) Conquest Investments and Finance Limited (upto 29.03.2013) Jamnalal Sons Private Limited (JSPL) Adonis Laboratories Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
153000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1530.000 Millions |
|
7000000 |
Preference Shares |
Rs. 10/- each |
Rs. 70.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1600.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
146273934* |
Equity Shares |
Rs. 10/- each |
Rs. 1462.700
Millions |
|
5626320 |
Preference Shares |
Rs. 10/- each |
Rs. 56.300
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1519.000 Millions |
* includes 28,031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
141405861 |
Equity Shares |
Rs. 10/- each |
Rs. 1414.100
Millions |
|
5626320 |
Preference Shares |
Rs. 10/- each |
Rs. 56.300
Millions |
|
|
Add: Forfeited
shares (amounts originally paid up) |
|
Rs. 0.100
Million |
|
|
|
|
|
|
|
Total |
|
Rs. 1470.500 Millions |
a. Reconciliation of the shares outstanding at the beginning and at the
end of the reporting period.
|
Equity shares |
31.03.2014 |
|
|
|
Nos. in crore |
Rs.in Millions |
|
At the beginning of the period |
7.31 |
731.100 |
|
Add : issued during the period |
6.83 |
683.000 |
|
Less : bought back during the year |
-- |
-- |
|
Outstanding at
the end of the period |
14.14 |
1414.100 |
|
Preference shares (CRPS) |
31.03.2014 |
|
|
|
Nos. in crore |
Rs.in Millions |
|
At the beginning of the period |
0.56 |
56.300 |
|
Add : issued during the period |
-- |
-- |
|
Less : bought back during the year |
-- |
-- |
|
Outstanding at
the end of the period |
0.56 |
56.300 |
b. Terms / rights
attached to equity shares
The Company has only
one class of equity share having a par value of Rs. 10/- per share. Each holder
of equity share is entitled to one vote per share.
The Company
declares and pays dividends in Indian rupees.
The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend.
During the year
ended 31 March 2014, the amount of dividend per share recognized as
distribution to equity shareholders was Rs. Nil (31 March 2013 : Rs. Nil). In
the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
c. Terms of
redemption of CRPS
Pursuant to the
order of the Hon’ble High Court of Judicature at Bombay dated October 14, 2003,
the Company had cancelled 22½ equity shares issued and unallotted and reduced
20% of the outstanding equity shares amounting to 56,26,320 equity shares. In
lieu of cancelled shares, the Company has issued 56,26,320 0.01% Cumulative
Redeemable Preference Shares of Rs.10/- each entitled for Cumulative Preference
dividend of 0.01% p.a. and redeemable in five equal annual installments
starting from September. 2019. In the event of liquidation of the Company
before redemption, the holders of CRPS will have priority over equity shares in
the payment of dividend and repayment of capital.
d. The Company does
not have any holding company.
e. There are no bonus
shares issued, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting
date.
f. Details of shareholders holding more than 5% shares in the company
|
Equity Shares of Rs. 10/- each fully paid |
31.03.2014 |
|
|
|
Numbers |
% holding in the
class |
|
Jamnalal Sons Private Limited |
26295522 |
18.60 |
|
Life Insurance Corporation of India |
7228076 |
5.11 |
|
Bajaj Holdings and Investments Limited |
8113564 |
5.74 |
|
Jeewan Limited |
4785369 |
3.38 |
|
Baroda Industries Private Limited |
14326616 |
10.13 |
|
Niraj Bajaj |
12887156 |
9.11 |
|
Rajesh V. Shah |
7200842 |
5.09 |
|
Suketu V. Shah |
7169018 |
5.07 |
|
|
|
|
|
CRPS of Rs. 10/- each fully paid |
|
|
|
Life Insurance Corporation of India |
595545 |
10.58 |
|
Jamnalal Sons Private Limited |
474143 |
8.43 |
As per of the
Company, including its register of shareholders / members and other
declarations received from shareholders regarding beneficial interest, the
above shareholding represents both legal and beneficial ownerships of shares.
g. There are no
shares reserved for issue under options and contracts / commitments for sale of
shares/disinvestment.
h. There are no
unpaid calls from any Director and officer.
i. Utilization of
the net proceeds of the rights Issue of equity shares:
The Allotment
Committee of the Board of Directors of the Company allotted 68291732 equity
shares under rights entitlement at a price of Rs.21.00 per share. Net proceeds
received amounting to Rs.1434.100 Millions have been utilized towards: i)
payment of dues to secured lenders (Banks and Financial Institutions)
Rs.700.000 Millions and ii) working capital requirement (inventory) Rs.734.100
Millions.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1470.500 |
787.500 |
787.500 |
|
(b) Reserves & Surplus |
19849.700 |
20032.700 |
20470.800 |
|
(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) |
21320.200 |
20820.200 |
21258.300 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11080.900 |
8567.200 |
7741.900 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
138.600 |
120.300 |
121.900 |
|
(d) long-term
provisions |
356.800 |
300.500 |
284.900 |
|
Total Non-current
Liabilities (3) |
11576.300 |
8988.000 |
8148.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
7876.400 |
8846.100 |
8405.500 |
|
(b)
Trade payables |
8502.400 |
6558.500 |
7327.200 |
|
(c)
Other current liabilities |
6470.300 |
6393.100 |
4387.700 |
|
(d) Short-term
provisions |
42.900 |
29.100 |
45.300 |
|
Total Current
Liabilities (4) |
22892.000 |
21826.800 |
20165.700 |
|
|
|
|
|
|
TOTAL |
55788.500 |
51635.000 |
49572.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
24857.000 |
24071.500 |
23896.500 |
|
(ii)
Intangible Assets |
2.400 |
3.800 |
4.700 |
|
(iii) Capital
work-in-progress |
502.800 |
1461.000 |
1042.200 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2509.900 |
2278.100 |
1096.700 |
|
(c) Deferred tax assets (net) |
421.500 |
82.400 |
0.000 |
|
(d)
Long-term Loan and Advances |
1255.900 |
1124.900 |
1228.800 |
|
(e) Other
Non-current assets |
482.800 |
482.800 |
482.800 |
|
Total Non-Current
Assets |
30032.300 |
29504.500 |
27751.700 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
12351.700 |
10346.400 |
9963.100 |
|
(c)
Trade receivables |
9022.300 |
7923.100 |
8769.800 |
|
(d) Cash
and cash equivalents |
848.900 |
748.000 |
786.900 |
|
(e)
Short-term loans and advances |
1925.600 |
1664.200 |
2271.800 |
|
(f)
Other current assets |
1607.700 |
1448.800 |
29.400 |
|
Total
Current Assets |
25756.200 |
22130.500 |
21821.000 |
|
|
|
|
|
|
TOTAL |
55788.500 |
51635.000 |
49572.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
25395.800 |
21262.400 |
25659.600 |
|
|
|
Other Income |
333.000 |
108.700 |
98.900 |
|
|
|
TOTAL (A) |
25728.800 |
21371.100 |
25758.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
13156.400 |
11212.400 |
13517.000 |
|
|
|
Purchases of Stock-in-Trade |
289.700 |
0.000 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(1758.300) |
(611.300) |
(197.700) |
|
|
|
Employees benefits expense |
1455.200 |
1365.300 |
1318.500 |
|
|
|
Other expenses |
10506.700 |
8324.900 |
9772.800 |
|
|
|
Expenditure transferred to Capital Accounts / Capital
Work-in-Progress |
(57.600) |
(155.200) |
(44.200) |
|
|
|
Exceptional Items |
254.400 |
(1083.300) |
0.000 |
|
|
|
TOTAL (B) |
23846.500 |
19052.800 |
24366.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1882.300 |
2318.300 |
1392.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2438.900 |
2153.800 |
1818.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(556.600) |
164.500 |
(426.600) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
670.400 |
641.500 |
657.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ [LOSS]
BEFORE TAX (E-F) (G) |
(1227.000) |
(477.000) |
(1083.800) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(346.900) |
(82.400) |
(148.800) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ [LOSS]
AFTER TAX (G-H) (I) |
(880.100) |
(394.600) |
(935.000) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
1239.400 |
1518.300 |
2169.500 |
|
|
|
Dividend |
0.000 |
2.700 |
2.300 |
|
|
|
Income from Engineering Contracts |
3.900 |
5.300 |
3.100 |
|
|
|
Others (represents Management fees) |
1.800 |
1.600 |
1.600 |
|
|
TOTAL EARNINGS |
1245.100 |
1527.900 |
2176.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
4356.000 |
2960.400 |
3834.500 |
|
|
|
Stores, Spare Parts, Components and Fuel |
613.600 |
391.800 |
615.900 |
|
|
|
Goods for trade |
0.000 |
2.000 |
0.000 |
|
|
|
Capital Goods |
70.400 |
249.700 |
424.500 |
|
|
TOTAL IMPORTS |
5040.000 |
3603.900 |
4874.900 |
|
|
|
|
|
|
|
|
|
|
Earnings/ [Loss]
Per Share (Rs.) |
(11.54) |
(5.40) |
(12.79) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 |
|
Type |
1st
Quarter |
|
Net Sales |
6783.800 |
|
Total Expenditure |
6098.000 |
|
PBIDT (Excl OI) |
685.800 |
|
Other Income |
132.000 |
|
Operating Profit |
817.800 |
|
Interest |
596.000 |
|
Exceptional Items |
(31.100) |
|
PBDT |
190.600 |
|
Depreciation |
184.500 |
|
Profit Before Tax |
6.100 |
|
Tax |
2.200 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
3.900 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
3.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(3.42) |
(1.85) |
(3.63) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.83) |
(2.24) |
(4.22) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.34) |
(1.00) |
(2.28) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.06) |
(0.02) |
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.89 |
0.84 |
0.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13 |
1.01 |
1.08 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
787.500 |
787.500 |
1470.500 |
|
Reserves & Surplus |
20470.800 |
20032.700 |
19849.700 |
|
Net
worth |
21258.300 |
20820.200 |
21320.200 |
|
|
|
|
|
|
long-term borrowings |
7741.900 |
8567.200 |
11080.900 |
|
Short term borrowings |
8405.500 |
8846.100 |
7876.400 |
|
Total
borrowings |
16147.400 |
17413.300 |
18957.300 |
|
Debt/Equity ratio |
0.760 |
0.836 |
0.889 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
25659.600 |
21262.400 |
25395.800 |
|
|
|
(17.137) |
19.440 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
25659.600 |
21262.400 |
25395.800 |
|
Profit/ [Loss] |
(935.000) |
(394.600) |
(880.100) |
|
|
(3.64%) |
(1.86%) |
(3.47%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
LITIGATION
DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date: 28.05.2013 |
|
Lodging No: NMSL/714/2013 Filing Date: 26.03.2013 Reg. No.: NMS/605/2013 Reg. Date: 04.04.2013 |
|
Main Matter Lodging No: SL/605/2010 Reg. No.: S/516/2010 |
|
Petitioner: MUMBAI INTERNATIONAL AIRPORT PVT. LTD. Respondent: MUKAND LTD. AND 2 ORS Resp.
Adv.: N V SANGLIKAR FOR DEFT NO 1 (0) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission
Category: NOTICE OF MOTION. Last Date: 23.06.2014 Stage:
NOTICE OF MOTION FOR HEARING [ORIGINAL SIDE MATTERS] Last Coram: PROVISIONAL BOARD |
|
Act: Code of Civil Procedure 1908 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10508672 |
16/06/2014 |
500,000,000.00 |
CENTRAL BANK OF
INDIA |
CORPORATE FINANCE
BRANCH, CHANDERMUKHI, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
C10371581 |
|
2 |
10494512 |
07/05/2014 |
150,000,000.00 |
BAJAJ FINANCE
LIMITED |
AKURDI PUNE-,
PUNE, MAHARASHTRA - 411035, INDIA |
C04501391 |
|
3 |
10496277 |
03/05/2014 |
500,000,000.00 |
UNION BANK OF
INDIA |
UNION BANK
BHAVAN, GROUND FLOOR, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI,
MAHARASHTRA - 400021, INDIA |
C04781167 |
|
4 |
10484101 |
27/02/2014 |
140,000,000.00 |
BAJAJ FINANCE
LIMITED |
AKURDI PUNE, PUNE,
MAHARASHTRA - 411035, INDIA |
C00155648 |
|
5 |
10442545 |
17/07/2013 |
750,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON HOUSE
169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA |
B81895773 |
|
6 |
10396621 |
31/12/2012 * |
500,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON HOUSE
169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA |
B68239839 |
|
7 |
10389398 |
09/11/2012 |
80,000,000.00 |
WINRO COMMERCIAL
(INDIA) LIMITED |
209/210, ARCADIA
BUILDING, 2ND FLOOR, PLOT NO. 1 |
B62910583 |
|
8 |
10384912 |
22/10/2012 |
370,000,000.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
'VISHWAKARMA', 86C,
TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B61470894 |
|
9 |
10379885 |
10/10/2012 * |
500,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON HOUSE
169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA |
B61366357 |
|
10 |
10352896 |
15/04/2012 |
250,000,000.00 |
SREI EQUIPMENT
FINANCE PRIVATE LIMITED |
'VISHWAKARMA',
86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B38653804 |
|
11 |
10353101 |
15/04/2012 |
250,000,000.00 |
SREI EQUIPMENT FINANCE
PRIVATE LIMITED |
'VISHWAKARMA',
86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B38654703 |
|
12 |
10345594 |
03/04/2012 |
250,000,000.00 |
BAJAJ FINANCE
LIMITED |
4TH FLOOR, BAJAJ
FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE,
MAHARASHTRA - 411014, INDIA |
B36301315 |
|
13 |
10303605 |
01/08/2011 |
175,000,000.00 |
BAJAJ FINANCE
LIMITED |
4TH FLOOR, BAJAJ
FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE,
MAHARASHTRA - 411014, INDIA |
B19338664 |
|
14 |
10273919 |
20/01/2014 * |
800,000,000.00 |
EXPORT IMPORT
BANK OF INDIA |
21 FLOOR, CENTRE
ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005,
INDIA |
B94842358 |
|
15 |
10249773 |
23/10/2010 |
350,000,000.00 |
CORPORATION BANK |
LARGE CORPORATE
BRANCH, 301-302, EAGLES FLIGHT, SUREN ROAD, ANDHERI (E), MUMBAI, MAHARASHTRA
- 400093, INDIA |
A97753776 |
|
16 |
10193562 |
28/08/2013 * |
2,750,000,000.00 |
CENTRAL BANK OF
INDIA |
CORPORATE
FINANCE BRANCH, CHANDER MUKHI BUILDING, |
B82931536 |
|
17 |
10163749 |
05/08/2009 * |
1,000,000,000.00 |
CENTRAL BANK OF
INDIA |
CHANDERMUKHI,
NARIMAN POINT, MUMBAI, MAHARASHTRA |
A67443333 |
|
18 |
10153984 |
22/06/2010 * |
234,214,817.00 |
BAJAJ AUTO
FINANCE LIMITED |
AKURDI PUNE-, MUMBAI
- PUNE ROAD, PUNE, MAHARASHTRA - 411035, INDIA |
A87782009 |
|
19 |
10024169 |
16/06/2007 * |
500,000,000.00 |
DENA BANK |
C-10, G BLOCK,
BANDRA KURLA COMLEX, BANDRA(E), MUMBAI, MAHARASHTRA - 400051, INDIA |
A18223248 |
|
20 |
90236515 |
07/02/2006 |
100,000,000.00 |
INFRASTRUCTURE
LEASING & FINANCIAL SERVICES LIMITED |
PLOT C-22;BANDRA
KURLA COMPLEX, BANDRA, MUMBAI, MAHARASHTRA, INDIA |
- |
|
21 |
90232897 |
16/12/2005 |
354,300,000.00 |
CANARA BANK |
CANARA BANK
BUILDING, 2ND/3RD FLOOR; ADIMARZBAN |
- |
|
22 |
90236490 |
16/12/2005 |
730,100,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
IDBI TOWER; 5TH
FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA |
- |
|
23 |
80065070 |
11/09/2004 |
3,000,000,000.00 |
THE WESTERN
INDIA TRUSTEE & EXECUTOR COMPANY LIMITED |
161, MITTAL
COURT-C JAMNALAL BAJAJ MARG, NARIMAN |
- |
|
24 |
80005610 |
05/03/2013 * |
11,310,000,000.00 |
DENA BANK |
C-10, G-BLOCK, CORPORATE
BUSINESS BRANCH, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA -
400051, INDIA |
B71068076 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Fixed Deposits |
804.300 |
1025.600 |
|
Long term loans from Companies |
7086.900 |
2469.500 |
|
Sales Tax Deferment Loan |
9.300 |
13.900 |
|
SHORT TERM BORROWINGS |
|
|
|
Short Term Loans from Companies |
1365.900 |
1956.600 |
|
|
|
|
|
Total |
9266.400 |
5465.600 |
FINANCIAL RESULTS
The gross revenue from operations for the year increased by 20% to Rs.28120.000
Millions as against Rs.23480.000 Millions in the previous year mainly on
account of increase in sale of special and alloy steel.
Loss before exceptional items has reduced to Rs.972.600 Millions as
against Rs.1560.300 Millions in the previous year due to improved operations in
the last quarter of the current year.
ECONOMY
Delivering higher economic value has been a challenge not only for
corporations but also nations around the globe. Although it continues to remain
a challenge for us in the year ahead, indications are that it may be a little
less formidable.
Global activity has broadly strengthened and is expected to improve
further in the year 2014-15, with most of the impetus coming from developing
economies. The global GDP rate for the year 2013 was marginally lower at 3.0%
while much of this growth was witnessed in the emerging and developing markets
which was at 4.7%. The Indian GDP rate for the same period stood at 4.4%
The Indian industry was faced with multiple unfavourble agents such as
low global demand, stubborn inflation, high interest rates, fluctuating
currency markets and oscillating policies which together resulted in a
lacklustre economic growth in the country. The continuing deterioration in the
global growth has affected the Indian economy more than some of the other
developing economies, possibly due to India’s shift towards a service led
economy from the traditional labour and capital intensive manufacturing
economy.
STEEL INDUSTRY
Global as well as Indian steel makers continue to face the problem of
supply outpacing demand. The Indian steel production marked a growth of 4.1%
while persistent weakness in demand from key end-user industries such as
automobiles, consumer durables and infrastructure led to the domestic steel
consumption registering only a marginal growth of 0.6% in the financial year
2014.
The mismatch in domestic supply and demand necessitated higher steel
exports, which also benefited from favourable exchange rate conditions. This
led to an export growth of 4.1% and the automobile exports also grew by 7.21%.
RELATED INDUSTRY
AUTOMOBILE
Slow rise in per capita income, high fuel prices along with high taxes
resulted in a slowdown of the automobile industry. According to the Society of
Indian Automobile Manufacturers (SIAM), the overall domestic sales during
April-March 2014 grew marginally by 3.53 % over the same period last year
riding mainly on the growth in scooter and motorcycle sales.
The sales of two wheelers during the year April-March 2014 registered a
growth of 7.31% over the previous year, while the sales of passenger vehicles
declined by 6.05% over the same period.
SPECIALITY STEEL DIVISION
The net turnover of the steel division was Rs.23710.000 Millions for the
year FY 2014 as compared to Rs.19120.000 Millions for the same period in the
previous year and the profit before interest was Rs.840.000 Millions compared
to profit before interest of Rs. 440.000 Millions in the previous year.
The specialty steel division of the Company recorded a rise in sale of
24% over the previous year. The enhanced production of steel was mainly due to
the improved availability of iron ore and also the company’s shift towards
using iron ore fines after the commissioning of the sintering facility in
Ginigera. The new steel products, especially import substitutes, developed
successfully by the company also contributed to the growth in sales.
Sales in the value added segment, viz., special steel wire rods and
black bars, also marked an increase in the year that was and the company hopes
to further increase its sales in these segments.
The company introduced several cost saving measures while simultaneously
increasing its capacity through improved processes and the introduction of balancing
facilities. The commissioning of the sinter facility in Ginigera
enabled the company to use 50% iron ore fines in lieu of the more
expensive iron ore lumps. The hot blast stove and pulverised coal injection
systems were also commissioned thereby reducing the consumption of coke. The
entire fuel requirements in the Ginigera facility are currently met from flue
gasses of the blast furnaces. The company has been able to take advantage of
all these facilities since March 2014.
Mukand has the capability to use 0% to 100% stainless steel scrap thus
giving it the flexibility to link its procurement to prevailing nickel prices.
The hardening and tempering facilities have enabled the company to expand its
customer base to the oil and gas sectors as well.
These cost saving measures coupled with the commitment and effort of the
employees, gave a boost to the Company’s production.
The Company has continued to be actively involved in Total Quality
Management activities and continues to win awards in quality and delivery from
industry bodies and customers.
Despite the lacklustre performance of the automobile industry in the
year that has gone by, several auto makers have announced green field capacity
expansion plans in India in the year ahead.
The Company is confident of further improvement in performance in all
the areas, viz., production, productivity, value added product mix, turnover
and costs, thereby achieving higher operating margins in the year in progress.
The European markets are also picking up while the Company hopes to
considerably increase its presence in the South East Asian markets with the
help of Sumitomo Corporation, Japan.
FINANCE
Over the years, the total concessional loan under Corporate Debt
Restructuring (CDR) had reduced considerably through repayments as per
schedule. The Company was forced to borrow from bankers and other lenders at
higher interest rates to fund the loan repayments and working capital
requirements due to lack of retained earnings.
During the last two years, the Company incurred capital expenditure of
Rs.1700.000 Millions to install facilities to reduce costs, increase
productivity and increase sales of value added products. The financing for this
was done through long term borrowings.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
(i) Disputed matters in appeal/contested in respect of: |
|
|
|
- Income Tax * * included in this amount (not provided in the Accounts) is the liability
under Sec 115JB of the Income Tax Act, 1961 for Assessment Year 2005-06 as
the Company’s appeal is pending disposal. Company places reliance on certain
judicial pronouncements and has also obtained a legal opinion on the matter. |
224.00 |
217.900 |
|
- Excise Duty, Customs Duty etc. |
39.500 |
38.000 |
|
- Sales Tax, Works Contract Tax etc. ** ** In the matter of certain ex-parte assessments completed by
Commercial Tax Officer in the State of Uttar Pradesh, Company is advised that
liability if any, that may arise will be determined after the matter is
remanded to the Assessing Officer and on completion of reassessment
proceedings and therefore, the same is not included herein. |
49.000 |
56.300 |
|
- Other matters |
2.400 |
2.400 |
|
(ii) Claims
against the Company not acknowledged as debt as these are disputed and
pending disposal at various fora. The Company has
taken legal and other steps to protect its interest in respect of these
matters, which is based on legal advice and/or precedents in its own/other
cases. It is not possible to make any further determination of the liability
which may arise in these matters. |
155.000 |
181.800 |
|
(iii) Bills
discounted with the Bankers and others Sale Bills discounted |
39.100 |
109.600 |
|
(iv) Guarantees
and Counter guarantees given by the Company on behalf of :- -Other Companies |
701.500 |
846.800 |
|
(v) Bonds /
Undertakings given by the Company under concessional duty/ exemption to
Customs / Excise Authorities (Net of redemption applied for) |
6.600 |
6.600 |
|
(vi) Bonds given
by the Company against import of machinery under EPCG Scheme (Net of
redemption applied for) |
143.000 |
347.800 |
|
(vii) Demand for
Annual Bonus for the financial years 1995-96 to 2006-07 by Staff and Officers’
Association is pending at different stages in proceedings under The
Industrial Disputes Act, 1947. Bulk of these employees are statutorily not
covered by The Payment of Bonus Act, 1965 and many of the employees are also
not covered by The Industrial Disputes Act, 1947. Liability arising there
from cannot therefore be determined at present. (viii)
Government of Maharashtra had served a Demand Notice on the Company for
payment of electricity duty for power generated during the period 01.04.2000
to 30.04.2005 and penal interest thereon in Company’s Captive Power Plant
amounting to Rs.142.700 Millions. The Writ Petition filed by the Company was
disposed by the Hon’ble Bombay High Court on 7th November, 2009 quashing the
said Demand Notice. Government of Maharashtra has however, filed an appeal in
the Supreme Court of India against the aforesaid judgment of High Court. (ix) There have
been delays in payment of tax deducted at source in earlier years and also in
FY2013-14. Interest payable on delays has been accounted for in respect of
cases where appropriate orders have been received from Income Tax authorities
or at the time of Filing the Quarterly TDS Returns. (x) A claim
towards difference in price of calibrated iron ore for the period 1st April,
2006 to 28th February, 2007 amounting to Rs.330.700 Millions has been raised
by a supplier in March 2007. The Company has been legally advised that the
supplier cannot seek this price revision under a concluded agreement and
hence no provision is made in the Accounts for the same. The issue along with
method of review and re-fixing of price of calibrated iron ore effective on
1st of April each year in terms of agreement is referred to an arbitral
tribunal whose award was pronounced on 28th February 2014. In terms of the
said award, the supplier is directed to re-compute amount payable by the
Company. Pending receipt of the revised claim, the final liability arising
there from is not ascertainable. Moreover, the said supplier has also
unilaterally increased the price of calibrated iron ore w.e.f. 1st April,
2007 and thereafter w.e.f. 1st April, every year. This issue too was settled
by the aforesaid arbitral tribunal. In terms of the said award, the Company
is required to submit certain details to the supplier for re-computing its
claim in terms of the award. However, pending such determination of final
price, the supplier has raised invoices at an ad-hoc interim mutually agreed
price on the marketing contractor who in turn, has billed the Company at the
same price and which liability, has been fully accounted for. An appeal is
also being preferred for challenging the said arbitration award. |
||
FIXED ASSETS:
Tangible Assets
·
Freehold Land
Leasehold
Land
Railway
Siding
Buildings
and Roads
Plant
and Machinery
Furniture,
Fixtures, etc.
Office Machinery
Vehicles
Intangible Assets
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.67 |
|
|
1 |
Rs. 100.81 |
|
Euro |
1 |
Rs. 80.73 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.