MIRA
INFORM REPORT
|
Report Date : |
19.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
BALASORE ALLOYS LIMITED |
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Registered
Office : |
Balgopalpur, Districts Balasore - 756 020, Odisha |
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Country : |
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Financials (as on)
: |
31.03.2014 |
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Date of
Incorporation : |
31.05.1984 |
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Com. Reg. No.: |
15-001354 |
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Capital
Investment / Paid-up Capital : |
Rs.336.638 Millions |
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CIN No.: [Company Identification
No.] |
L27101OR1984PLC001354 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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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
: |
Subject is engaged in raising of |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (38) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having moderate track. Management has reported high working capital intensive operations along
with moderate financial profile during FY 14. Moreover, the company is currently under the purview of CDR programme
from which it is proposed to exit within FY 15. However, trade relations seem to be fair. Business is active. Payment
terms are reported as slow but correct. In view of experienced promoters group, 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
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Rating |
Long term bank facilities: BB+ |
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Rating Explanation |
Inadequate credit quality and high credit risk. |
|
Date |
25.11.2014 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank facilities: A4+ |
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Rating Explanation |
Minimal degree of safety and very high credit risk. |
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Date |
25.11.2014 |
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 BY
|
Name : |
Mr. Suman Sen |
|
Designation : |
Account Manager |
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Contact No.: |
91-678-2275781 |
|
Date : |
16.12.2014 |
LOCATIONS
|
Registered Office : |
Balgopalpur, Districts Balasore - 756 020, Odisha, India |
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Tel. No.: |
91-678-2275781-85 |
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Fax No.: |
91-6782-275724 |
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E-Mail : |
investorshelpline@balasorealloys.com |
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Website : |
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Administrative
Office: |
Park Plaza, 71, Park Street, 1st Floor, Kolkata - 700 016, West Bengal, India |
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Tel. No.: |
91-33-4029 7000 |
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Fax No.: |
91-33-2229 5693 |
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Mines Office: |
Kaliapani Chromite Mine At\PO: Kaliapani - 755 047, District. : Jajpur, Odisha,
India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Pramod Kumar Mittal |
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Designation : |
Chairman |
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Name : |
Mr. Anil Sureka |
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Designation : |
Managing Director |
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Name : |
Mr. R K Parakh |
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Designation : |
Director-Finance |
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Name : |
Mr. Mahesh Trivedi |
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Designation : |
Non-Executive Directors |
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Name : |
Mr .S Mohapatra |
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Designation : |
Non-Executive Directors |
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Name : |
Mr S K Pal |
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Designation : |
Non-Executive Directors |
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Name : |
Dr A K Bhattacharyya |
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Designation : |
Non-Executive Directors |
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Name : |
Prof S K Majumdar |
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Designation : |
Non-Executive Directors |
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Name : |
Mr. K P Khandelwal |
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Designation : |
Non-Executive Directors |
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Name : |
Ms. Vartika Mittal |
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Designation : |
Non-Executive Directors |
KEY EXECUTIVES
|
Name : |
Mr. Trilochan Sharma |
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Designation : |
VP and Company Secretary |
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Name : |
Mr. Suman Sen |
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Designation : |
Account Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of Shareholder |
Total
No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
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|
538320 |
0.76 |
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|
33604076 |
47.40 |
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|
34142396 |
48.16 |
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|
2393420 |
3.38 |
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|
2393420 |
3.38 |
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Total shareholding of Promoter and Promoter Group (A) |
36535816 |
51.54 |
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(B) Public Shareholding |
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|
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|
13600 |
0.02 |
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|
591073 |
0.83 |
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|
6663369 |
9.40 |
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|
7268042 |
10.25 |
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|
5931536 |
8.37 |
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|
16054277 |
22.65 |
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|
4082843 |
5.76 |
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|
1017897 |
1.44 |
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|
670605 |
0.95 |
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|
326350 |
0.46 |
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|
20942 |
0.03 |
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|
27086553 |
38.21 |
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Total Public shareholding (B) |
34354595 |
48.46 |
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Total (A)+(B) |
70890411 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
70890411 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in raising of Chrome Ore and Manganese
Ore and also engaged in manufacturing and selling of Ferro Alloys of various
grades. |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
· State Bank of India · State Bank of Hyderabad ·
Allahabad Bank |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Address : |
714-715, Tulsiani Chambers, 212 , Nariman Point, Mumbai - 400 021, Maharashtra, India |
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Tel. No.: |
91-22-3021-8500 |
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Internal
Auditors: |
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Name : |
Das and Prasad Chartered Accountants |
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Address : |
Diamond Chambers, 4, Chowringhee Lane, 8th Floor, Room No. 8F, Block - 3rd, Kolkata - 700 016, West Bengal, India |
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Tel. No.: |
91-33-2252-1911 (3 Lines) |
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Cost Auditors: |
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Name : |
Shome and Banerjee Cost Accountants |
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Address : |
5A, Nurulla Doctor Lane, 2nd Floor, Kolkata 700 017, West Bengal, India |
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Tel. No.: |
91-33-2287-9722/ 6456-6720 / 6722 |
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Memberships : |
-- |
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Collaborators : |
-- |
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Subsidiary Company: |
· Milton Holdings Limited ·
Balasore Metals Pte. Limited |
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Associate Company: |
· Balasore Energy Limited |
CAPITAL STRUCTURE
AFTER 25.09.2014
Authorised Capital : Rs.
1000.000 Millions
Issued, Subscribed, Paid-up Capital : Rs. 354.452
Millions
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
200,000,000 |
Equity Shares |
Rs.5/- each |
Rs. 1000.000 Millions |
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Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
67,334,263 |
Equity Shares |
Rs.5/- each |
Rs. 336.671
Millions |
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Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
64,290,411 |
Equity Shares |
Rs.5/- each |
Rs. 321.452
Millions |
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Add: Shares forfeited |
|
Rs. 15.186
Millions |
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|
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Total |
|
Rs. 336.638 Millions |
Note:
Reconciliation of the
Shares outstanding at the beginning and at the end of the reporting year
|
Equity shares |
As at 31st March,
2014 |
|
|
|
No. In Millions |
Rs. In Millions |
|
At the beginning of the year |
64.290 |
321.452 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the
end of the year |
64.290 |
321.452 |
Terms/ rights
attached to equity shares
(I) The company has only one class of equity shares having par value of Rs 5 per share. Each holder of equity shares 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.
(Ii) The amount of per share dividend recognized as distributions to equity shareholders is Rs 0.60 per share (31 March 2013: Rs 0.50 per share).
(Iii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% equity shares in the Company
|
Equity shares |
As at 31st March,
2014 |
|
|
|
Numbers |
% holding |
|
Goldline Tracom Private Limited |
12402346 |
19.29 |
|
Ushaditya Trading Private Limited (Formerly Ushaditya Investments Private Limited) |
7392500 |
11.50 |
|
Navoday Exim Private Limited (Formerly Ispat Holdings Private Limited) |
4888800 |
7.60 |
|
Hypnos Fund Limited. |
3495369 |
5.44 |
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.
Details of equity
shares pledged by the promoter or persons forming part of the promoter group
('Promoter Group') of the Company in compliance to Corporate Debt Restructuring
Scheme:
|
Particulars |
As at 31st March, 2014 |
|
Total number of equity shares held by the Promoter Group |
29935186 |
|
Total number of equity shares pledged by the Promoter Group |
14604790 |
|
Percentage of total shares pledged to total shareholding of the Promoter Group |
48.79% |
|
Percentage of total shares pledged to total outstanding shares of the Company |
22.72% |
Money received against share warrant represents 66,00,000 warrants allotted on a preferential basis to the promoter group on 19.10.2012 entitiling them to apply for obtain allotment of one equity share of Rs. 5/- each fully paid up at a price of Rs. 16/- per share at a premium of Rs. 11/- per share against each such warrant at any time after the date of allotment but on or before the expiry of 18 months from the date of allotment. The company had received Rs. 2,64,00,000 being 25 % of the consideration against these warrants. Company has alloted 66,00,000 equity shares on 16.04.2014 pursuant to these warrant on receipt of balance consideration of Rs. 7,92,00,000.
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 |
336.638 |
336.638 |
336.638 |
|
(b) Reserves & Surplus |
8833.700 |
8905.338 |
9141.693 |
|
(c) Money received against
share warrants |
26.400 |
26.400 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9196.738 |
9268.376 |
9478.331 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1980.646 |
2085.317 |
432.280 |
|
(b) Deferred tax liabilities
(Net) |
163.970 |
139.527 |
107.500 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
100.051 |
92.017 |
47.008 |
|
Total
Non-current Liabilities (3) |
2244.667 |
2316.861 |
586.788 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
677.286 |
681.598 |
828.802 |
|
(b) Trade payables |
1778.250 |
1551.188 |
1149.934 |
|
(c) Other current liabilities |
969.119 |
913.059 |
919.478 |
|
(d) Short-term provisions |
266.301 |
204.413 |
143.643 |
|
Total
Current Liabilities (4) |
3690.956 |
3350.258 |
3041.857 |
|
|
|
|
|
|
TOTAL |
15132.361 |
14935.495 |
13106.976 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
9330.050 |
9722.216 |
10232.665 |
|
(ii) Intangible Assets |
154.293 |
154.888 |
138.804 |
|
(iii) Capital work-in-progress |
779.303 |
519.614 |
352.019 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
376.748 |
383.128 |
384.624 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2263.259 |
2182.646 |
164.139 |
|
(e) Other Non-current assets |
15.500 |
29.600 |
14.914 |
|
Total
Non-Current Assets |
12919.153 |
12992.092 |
11287.165 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
980.892 |
995.137 |
1070.098 |
|
(c) Trade receivables |
127.185 |
71.945 |
99.444 |
|
(d) Cash and cash equivalents |
57.469 |
78.557 |
62.345 |
|
(e) Short-term loans and
advances |
1002.204 |
735.335 |
505.124 |
|
(f) Other current assets |
45.458 |
62.429 |
82.800 |
|
Total
Current Assets |
2213.208 |
1943.403 |
1819.811 |
|
|
|
|
|
|
TOTAL |
15132.361 |
14935.495 |
13106.976 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
7826.075 |
6861.291 |
5907.010 |
|
|
Other Income |
86.796 |
166.420 |
70.558 |
|
|
TOTAL
(A) |
7912.871 |
7027.711 |
5977.568 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2321.658 |
2561.475 |
2260.480 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
47.424 |
(109.353) |
(13.673) |
|
|
Power and Fuel |
2181.465 |
2011.623 |
1688.030 |
|
|
Employees benefits expense |
503.494 |
373.547 |
234.816 |
|
|
Other expenses |
1543.058 |
1065.169 |
687.873 |
|
|
TOTAL
(B) |
6597.099 |
5902.461 |
4857.526 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1315.772 |
1125.250 |
1120.042 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
411.907 |
443.086 |
465.337 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
903.865 |
682.164 |
654.705 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
188.454 |
174.905 |
165.798 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
715.411 |
507.259 |
488.907 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
255.382 |
219.414 |
169.601 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
460.029 |
287.845 |
319.306 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1847.222 |
1596.737 |
1314.791 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Proposed Dividend |
38.574 |
32.145 |
32.145 |
|
|
Tax on Proposed Dividend |
6.556 |
5.215 |
5.215 |
|
|
Transfer to General Reserve |
11.501 |
0.000 |
0.000 |
|
|
Balance
Carried to the B/S |
2250.620 |
1847.222 |
1596.737 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
4882.740 |
4103.706 |
2171.434 |
|
|
TOTAL
EARNINGS |
4882.740 |
4103.706 |
2171.434 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
380.174 |
203.827 |
125.776 |
|
|
TOTAL
IMPORTS |
380.174 |
203.827 |
125.776 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
|
|
|
|
|
Basic |
7.16 |
4.48 |
4.97 |
|
|
Diluted |
6.61 |
4.30 |
4.97 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
5.88 |
4.20 |
5.41 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
16.81 |
16.40 |
18.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.12 |
3.61 |
3.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.05 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.29 |
0.30 |
0.13 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.60 |
0.58 |
0.60 |
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 |
336.638 |
336.638 |
336.638 |
|
Reserves & Surplus |
9141.693 |
8905.338 |
8833.700 |
|
Money received against share
warrants |
0.000 |
26.400 |
26.400 |
|
Net
worth |
9478.331 |
9268.376 |
9196.738 |
|
|
|
|
|
|
long-term borrowings |
432.280 |
2085.317 |
1980.646 |
|
Short term borrowings |
828.802 |
681.598 |
677.286 |
|
Total
borrowings |
1261.082 |
2766.915 |
2657.932 |
|
Debt/Equity
ratio |
0.133 |
0.299 |
0.289 |
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 |
5907.010 |
6861.291 |
7826.075 |
|
|
|
16.155 |
14.061 |
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 |
5907.010 |
6861.291 |
7826.075 |
|
Profit |
319.306 |
287.845 |
460.029 |
|
|
5.41% |
4.20% |
5.88% |
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
CHARGES
Suit-filed accounts
of Rs. 10.000 Millions and above as on 19-Dec-2014
Borrowers details
|
Borrower name |
BALASORE ALLOYS LIMITED |
|
D&B D-U-N-S
Numbers |
|
|
Address |
71, PARK STREET, PARK PLAZA, KOLKATA-16 |
Name of Directors
Reported by Credit Grantors Filing the Suit:
|
Sr.No. |
Directors Reported by Credit Grantors |
|
1 |
AVL NARASIMHAM |
|
2 |
DIPAK BHOWMIK |
|
3 |
M. TRIVEDI |
|
4 |
MMUKHAPADHYAY |
|
5 |
P.K.SARAAQI |
|
6 |
PRAMOD MITTAL |
|
7 |
S.K.SHARMA |
|
8 |
S.MOHAPATRA |
|
9 |
VIVEK SETH |
List Of Credit
Grantors to which BALASORE ALLOYS LIMITED is a defaulter:
|
Names of Credit Grantors |
Branch |
Rs. In Millions |
|
STATE BANK OF INDIA |
BALASORE I.E |
855.600 |
FINANCIAL REVIEW
The Company's strong business model stood the test of challenges for another year. Despite the economic slowdown, policy paralysis and inflationary pressure which dampened industry prospects, the Company strengthened its growth momentum.
The Company's ability in consistently delivering on customer aspiration resulted in a 13.51% growth in turnover, from Rs. 7153.158 Millions in 2012-13 to Rs. 8119.191 Millions in 2013-14. Its painstaking efforts in streamlining costs facilitated in a 16.93% increase in EBIDTA from Rs. 1125.251 Millions in 2012-13 to 1315.772 Millions in 2013-14.
OPERATIONS
Fiscal Year 2013-14 is an important milestone in the the Company's existence as, they achieved the highest ever production of ferro alloys at 1,04,550 MT against 98,466 MT in 2012-13, an increase of 6.18% over the previous year. This achievement was the result of the untiring efforts of the entire team in successfully implementing numerous projects (using the TPM, Six Sigma, Lean JIT and BAL Q1 techniques) which also contributed immensely in optimizing operational costs. In addition, accurate supply chain strategies and innovative customer relationship management practices facilitated in surpassing the forecasted business plan targets.
In keeping with its commitment to saving the environment, the Company undertook a number of green initiatives as : l In-plant measures towards energy conservation, optimized power and fuel consumption l The Company sold 1,08,489 MT of slag which facilitated in conserving granite stone otherwise used in construction activities Going forward, the Company plans to implement a volume-drive and value-led growth strategy. On the one hand, the Company is seeking novel ways of upping its annual production capacity to about 1,45,000 MT while on the other, the team is working on increasing the production of value-added products namely low-silicon, low-phosphorous, low-carbon and high-chromium, among others, to maximise value-addition. In addition, the Company is focused on maximizing its net realization through accurate market segmentation in the domestic and international markets.
Further, The Company is working on expanding the capacity by acquisition of plants lying idle in close proximity to its existing mines and manufacturing facility.
FUTURE OUTLOOK
2013 proved to be a year of expansion for the chrome industry, after the low performance of 2012 for both chrome ore and ferro chrome. Global ferro chrome output reached a record high last year at 10.8 Million Tonne, in tandem with the global stainless steel production which also touched a new high. Ferro chrome output volume expanded sharply in China, which confirmed its position of the world's largest ferro chrome producer. South Africa also increased its ferro chrome production. Despite the increase in production volumes, the profitability of the Ferro chrome industry did not improve due to several impediments namely rising costs, infrastructural constraints and over-capacity.
Going forward, with developed economies namely the US and Europe expected to report a healthy economic growth numbers, the demand for stainless steel and consequently ferro chrome is expected to improve. But the growing ferro-chrome demand is unlikely to translate into superior realizations in the short-term, due to planned capacity expansions in China, Finland, Kazakhstan, Oman and South Africa, resulting in a potential over-supply. Over the longer-term, the ferro-chrome market is forecast to move into balance.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMY
The world economy reported subdued growth of 3% in 2013 against 3.1% in 2012 primarily due to the continuing economic volatility in the first half of the year.
While most developed economies continued to address the challenge of taking appropriate fiscal policy actions in the aftermath of the financial crisis, a number of emerging economies, which had already experienced a notable slowdown in the past two years, encountered new domestic and international headwinds during the period.
Prospects: Global activity has broadly strengthened and is expected to improve further in 2014-15, with the global economic growth projected to strengthen to 3.6% in 2014 and 3.9% in 2015 much of the impetus is expected to come from advanced economies. Within Advanced Economies, growth is likely to be strongest in the US, at about 2.8% in 2014 driven by supportive monetary conditions and lower impact on account of fiscal consolidation. Euro area growth is likely to be varied with the core Euro countries expected to register stronger growth. Inflation in these economies, however, has undershot projections, reflecting still-large output gaps and recent commodity price declines. Activity in many emerging market economies has disappointed in a less favourable external financial environment, although they continue to contribute more than two-thirds of global growth. Their output growth is expected to be lifted by stronger exports to advanced economies.
Challenges: Global recovery still remains subdued despite improved prospects due to downside risks. Among existing risks, those related to emerging market economies increased. The rapid normalisation of the American monetary policy and a renewed tendency to avoid risks on the part of investors could complicate things further (Source: IMF, April 2014). Besides, new geopolitical risks emanating from the Ukrainian crisis, continuing concerns of deflationary conditions and weak sovereign balance sheets in the Euro Area and weakening growth in China are some of the other key impediments to economic progress in the current year.
INDIAN ECONOMY
India's economic growth rate in FY14 has been estimated at 4.7%, marginally higher than 4.5% in the previous year following an improved performance in its agriculture and allied sectors (source: CSO). The higher headline number was reported on the back of a lower base of 4.5% in 2012-13, indicating that there was no significant improvement in economic activities during the year.
High borrowing costs and delays in securing mandatory government approvals staggered corporate investments and moderated cash flows, while inflation and slower hiring shook consumer confidence.
This resulted in the lacklustre performance by the Industrial section, which grew by 0.7% during the year; the manufacturing sector (55% of the Industrial sector) 55% of de-grew by 0.2%
Despite the aforementioned challenges, there were a number of factors that raised hopes regarding India's resurgence: l The current account deficit contracted; the fiscal deficit target was met l India implemented concrete measures to narrow external and fiscal imbalances, tighten its monetary policy, usher structural reforms and address market volatility l India built upon its foreign exchange reserves to reduce vulnerability The Indian economy is placed better than it was in 2013. A dynamic government at the centre strengthens optimism of robust
economic growth which is projected at 5.6% in 2014, rising to 6.0% in 2015 (Source: RBI).
CHROME ORE SECTOR
Global Chrome Ore
Sector
Global chrome ore production in 2013 continued its expansion last year, pulled by an expanding ferrochrome production. About 20 nations especially South Africa, Finland, Oman and Kazakhstan (with the exception of America, Asia and Australia) contributed to produce 30.3 MT of chrome ore and concentrate last year, including metallurgical, chemical, refractory grades, foundry sands and UG2-concentrate. This is 9% more than in 2012, and a new record high.
Production of high-carbon ferrochrome/charge chrome stood at 10.2 MT in 2013, up by 14.5% from the previous year. And that of low- and medium-carbon ferrochrome totalled 5,51,000 tonnes last year, compared to 8,67,000 tonnes in 2012. Accordingly, the output volume of ferro-silico-chrome, which is mostly used to manufacture low-carbon ferrochrome, decreased as well, amounting 3,15,000 tonnes, from 4,47,000 tonnes in 2012.
Increased demand from the steel sector ensured a balance between production and consumption of chrome ore and concentrate, as a result stocks of the mineral decreased. This improvement in the chrome ore industry resulted in a recovery of prices: South Africa's chrome concentrate price remained stable, and price for chrome ore from Oman and Turkey increased in 2013.The recovering stainless steel industry in Europe and the USA, and better expectations for the future, explain the growth of global ferrochrome production in 2013.
Indian Chrome Ore
Sector
Despite being one of the world's largest chrome ore producers, India is the world's second largest chrome ore importer, after China. India imported around 0.25 MT of chrome ore in 2013, mainly lump-ore from Oman, Sudan and Turkey and concentrate from South Africa. Interestingly, India also exported almost 2,23,000 tonnes of chrome ore in 2013, mostly to China. Historically, a large exporter of chrome ore, India's priority today is the conservation of its chrome ore reserves for sustaining the competitive advantage of the nation's ferro chrome and stainless steel sectors over the long-term.
GLOBAL FERRO CHROME
SECTOR
Performance in 2013: In 2013, the global ferrochrome production increased by 10% over the previous year (contributed by China and South Africa) following a 7.8% increase in stainless steel production during the same period. Global ferrochrome consumption also increased in 2013, which heralds good prospects for the chromium industry over the coming years.
Outlook: The prospects of the global ferrochrome industry in the foreseeable future depends on numerous, including China's growth rate, South Africa's energy supply, the fiscal cliff in the US, the recovery in Europe and geopolitical issues in the Middle East and Asia. Ferrochrome producers are expected to witness several challenges which include a production cost increase, energy supply stress and stricter environmental regulations. China - yesterday and tomorrow: China dominates the global ferro chrome industry, trade and hence prices. China is the largest producer and consumer of ferro chrome and the largest importer of chrome ore from across the globe.
The Chinese economy decelerated as industrial activity remained subdued in 2012-2013. Industrial production and external trade indicators, two main drivers of China's economy, slowed as did structural indicators, such as electricity and cement consumption. As a result, investments into China reduced to a trickle, adversely impacting the progress of the investment-driven Chinese economy. With the Chinese economy expected to hover around the 7% mark with no policy measures for a sustained economic revival, structural progress is expected to remain restrained. This could have an adverse impact on the prospects of the global ferro chrome sector.
INDIAN FERRO CHROME
SECTOR
Overview: India is the fourth largest ferrochrome producer globally. The country’s ferro chrome market is fragmented, involving several small and medium-sized players, a few large ferro chrome companies and fully integrated players. Fully integrated players, represent around 25% of the industry's output and benefit from captive minerals and energy sources. About 50% of India's ferro chrome output is produced by partially integrated players. India's ferrochrome industry mostly produces high-carbon ferrochrome. No low- and medium-carbon ferrochrome production has been reported in the recent past. Production: India's ferrochrome output volume remained stable over the last 4 years, at around 1 million tonnes. In 2013, it was 0.97 MT, up 2.8% from 2012. After Indian ferrochrome producers reduced their production during the first half of last year in keeping with India's economic slowdown, they expanded production in the second half of 2013. India's share of the world's ferrochrome output volume now reaches 9%.
Consumption: Around half of India's ferrochrome production is exported overseas, largely to China. Other key export destinations are South Korea and Japan. India's ferro chrome exports, which had declined sharply in 2012 against 2011, regained the 2011 levels benefitting from the weakening rupee against the dollar. Domestic consumption remained moderate despite the rising demand for stainless steel - according to the ISSF in 2013, India's stainless steel output was 2.4 million tonnes, up by 5.5% from the previous year.
Prospects: In the short-term the Indian ferro chrome producers are expected to witness challenging times as India's main ferrochrome customer, China is increasingly becoming self-sufficient in terms of ferrochrome supply. Over the medium-term, the prospects of the Indian ferro chrome sector appear bright, for an important reason. Credible sources report that India's stainless steel per capita consumption at over 2kg/year in 2013 was one of the lowest in developing countries. Increasing disposable income in the hands of the average Indian and growing urbanisation is expected to up this number towards the global per capita consumption benchmark, significantly expanding stainless steel demand and capacity. As a result, India could become a ferrochrome net importing country and change the global supply/demand balance. With domestic stainless steel capacity due to go up to 3 million tonne annually, the demand for ferrochrome is also slated to rise in the coming years.
CORPORATE INFORMATION
Subject is a public company domiciled in India and incorporated in 1984 under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange of India and The Calcutta Stock Exchange Limited. The Company have its registered office and manufacturing facility at Balasore, Odisha The Company is primarily engaged in raising of Chrome Ore and Manganese Ore from its captive mines located in Odisha and Madhya Pradesh and manufacturing and selling of Ferro Alloys of various grades.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Advance towards Promoter Contribution |
1940.500 |
1940.500 |
|
Short-term
borrowings |
|
|
|
Loans from Body Corporates |
185.681 |
189.181 |
|
Total |
2126.181 |
2129.681 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
90079588 |
16/11/1998 |
15,000,000.00 |
STATE BANK OF INDIA |
BALASORE INDUSTRIAL ESTATE, BALASORE, ANDHRA PRADE |
- |
|
2 |
90079388 |
27/06/2002 * |
218,300,000.00 |
STATE BANK OF HYDERABAD |
LANSWANE BRANCH, 53; SARAT BOSE ROAD, KOLKATA, WE |
- |
|
3 |
90079243 |
30/06/1995 |
672,300,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL ESTATE BRANCH, BALASORE, ORISSA, INDIA |
- |
|
4 |
90078310 |
25/11/1997 * |
872,300,000.00 |
STATE BANK OF INDIA |
BALASORE INDSUTRIAL FINANCE BRANCH, BALASORE, ANDH |
- |
|
5 |
90079119 |
13/05/1995 * |
750,000,000.00 |
STATE BANK OF INDIA |
BALASORE INDUSTRIAL AREA, BALASORE, ANDHRA PRADESH |
- |
|
6 |
90079053 |
04/07/2005 * |
931,200,000.00 |
STATE BANK OF INDIA |
BALASORE INDUSTRIAL AREA, BALASORE, ANDHRA PRADESH |
- |
|
7 |
90079027 |
25/05/1992 * |
26,300,000.00 |
STATE BANK OF HYDERABAD |
LANSDOWNE ROAD BRANCH, SARAT BOSE ROAD, CALCUTTA, |
- |
|
8 |
90081668 |
13/05/1995 * |
55,000,000.00 |
ALLAHABAD BANK |
2; NETAJI SUBASH MARG, CALCUTTA, WEST BENGAL - 700 |
- |
|
9 |
90079026 |
25/05/1992 * |
50,000,000.00 |
ALLAHABAD BANK |
2 NETAJI SUBASH MARG, CALCUTTA, WEST BENGAL - 7000 |
- |
|
10 |
90079017 |
28/02/1996 * |
490,200,000.00 |
STATE BANK OF INDIA |
BALASORE INDUSTRIAL ESTATE BRANCH, BALASORE, ORISS |
- |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
|
|
|
|
Sales tax matters under appeal {Amount paid under appeal Rs 2.131 Millions (Rs. 10.671 Millions)}* |
3.686 |
|
Entry tax matters {Amount paid under appeal Rs 1.871 Millions (Rs. 2.398 Millions)}* |
11.757 |
|
Excise / Service tax matters {Amount paid under appeal Rs 1.083 Millions (Rs. 0.230 Millions)}* |
120.079 |
|
Un-expired Bank Guarantees and Letters of Credit |
63.689 |
|
Bills discounted with Banks |
544.753 |
|
Note: * In respect of above cases based on favorable decisions in similar cases/legal opinions taken by the Company/discussions with the solicitors etc., the management is of the opinion that it is possible, but not probable, that the action will succeed and accordingly no provision for any liability has been made in the financial statements. |
|
UNAUDITED STANDLONE
FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 30TH SEPTEMBER,
2014
|
PARTICULARS |
Quarter ended |
Half Year Ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
2190.365 |
1971.044 |
4161.409 |
|
Other Operating Income |
23.234 |
14.873 |
38.107 |
|
Total Income from
operations (net) |
2213.599 |
1985.917 |
4199.516 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
686.300 |
727.642 |
1413.942 |
|
(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 |
55.654 |
(55.670) |
(0.016) |
|
(d) Power and fuel |
564.265 |
564.088 |
1128.354 |
|
(e) Employee benefit expenses |
146.297 |
133.211 |
279.508 |
|
(f) Depreciation and amortization expenses |
49.129 |
47.316 |
96.445 |
|
(g) Exchange fluctuation
loss/(gain) |
(13.811) |
(42.323) |
(56.134) |
|
(h) Other Expenses |
422.990 |
321.700 |
744.690 |
|
Total Expenses |
1910.824 |
1695.964 |
3606.789 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
302.775 |
289.953 |
592.727 |
|
Other Income |
395.748 |
4.620 |
400.368 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
698.523 |
294.573 |
993.095 |
|
Finance costs |
86.777 |
106.274 |
193.051 |
|
Profit/ Loss from Ordinary
Activities after Finance costs but Exceptional item |
611.746 |
188.299 |
800.044 |
|
Exceptional
item |
436.731 |
0.000 |
436.731 |
|
Profit/ Loss from Ordinary Activities
before tax |
175.015 |
188.299 |
363.313 |
|
Tax Expenses |
62.503 |
75.489 |
137.992 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
112.512 |
112.810 |
225.321 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
354.452 |
354.452 |
354.452 |
|
Reserves excluding
revaluation reserves as per balance sheet of Previous Accounting Year |
0.000 |
0.000 |
3521.734 |
|
Earnings per share (of Rs. 10/- each) (not annualised) * |
|
|
|
|
Basic |
1.59 |
1.62 |
3.20 |
|
Diluted |
1.59 |
1.62 |
3.20 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
34354595 |
34354595 |
34354595 |
|
Percentage of Shareholding |
48.46% |
48.46% |
48.46% |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
14604790 |
14604790 |
14604790 |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
39.97% |
39.97% |
39.97% |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
20.60% |
20.60% |
20.60% |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
21931026 |
21931026 |
21931026 |
|
- Percentage
of Shares (as a % of the
total shareholding of promoter and promoter
group) |
60.03% |
60.03% |
60.03% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
30.94% |
30.94% |
30.94% |
|
|
PARTICULARS |
Quarter
30.09.2014 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
15 |
|
|
Disposed of during the quarter |
15 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
STATEMENT OF
ASSETS AND LIABILITIES
|
SOURCES
OF FUNDS |
30.09.2014 (Unaudited) |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
269.638 |
|
(b) Reserves & Surplus |
8861.494 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9131.132 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
1804.874 |
|
(b) Deferred tax liabilities
(Net) |
72.670 |
|
(c) Other long term
liabilities |
0.000 |
|
(d) long-term provisions |
105.838 |
|
Total
Non-current Liabilities (3) |
1983.382 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
553.847 |
|
(b) Trade payables |
1763.304 |
|
(c) Other current liabilities |
1260.568 |
|
(d) Short-term provisions |
466.565 |
|
Total
Current Liabilities (4) |
4044.284 |
|
|
|
|
TOTAL |
15158.798 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
10118.992 |
|
(b) Non-current Investments |
376.748 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
2268.242 |
|
(e) Other Non-current assets |
0.100 |
|
Total
Non-Current Assets |
12764.082 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
1171.505 |
|
(c) Trade receivables |
140.613 |
|
(d) Cash and cash equivalents |
139.404 |
|
(e) Short-term loans and
advances |
980.301 |
|
(f) Other current assets |
62.893 |
|
Total
Current Assets |
2494.716 |
|
|
|
|
TOTAL |
15258.798 |
NOTE:
The figures for the corresponding previous period/year have been re-stated/re-grouped wherever necessary, to make them comparable.
The Auditors’ in their audit report on the Company's financial statements for
the year ended 31st March, 2014 and in their review report for the quarter
ended 30th June, 2014 and quarter/half year ended 30th September 2014 have
drawn attention to following matters;
North Eastern Electricity Supply Company of Orissa Limited (NESCO) has raised
total claim for Rs. 2159.887 Millions as at 30th September, 2014 (Rs. 2084.314
Millions as at 31st March, 2014) (including delayed payment surcharge) towards
revocation of the waiver of dues granted under a settlement in an earlier year.
The Company has paid Rs. 340.000 Millions in previous years against these
disputed claim and provided the same in respective year of payment as a matter
of prudence. The matter of revocation of settlement is pending with Honorable
High Court of Orissa. Pending outcome of the court decision and based on
discussion with Company’s legal counsel, no provision has been made towards
above demand.
In respect of the Interest and other charges payable to one of its Vendor's for
the earlier years, the company has carried out a detailed exercise for the
amount claimed by the Vendor. Based on the outcome of such exercise, the
company has written back amount of Rs. 3,91.127 Millions on account of excess
liability accounted in earlier years and shown as prior period item under other
income. Further, the company has also initiated a legal proceeding under Indian
Arbitration and Conciliation Act 1996 in District Court, Balasore (Odisha)
which is subjudice. However, the management reasonably expects that the
liability shall not exceed the reflected liability figure as provided in books
of accounts. The same has been drawn for attention by the auditors in their
review report for the quarter/half year ended September 30, 2014.
In financial year 2011-12, the lender's had exercised their right to recompense
under CDR Scheme sanctioned in the earlier years and demanded Rs. 3,21.995
Millions for the as recompense amount up to 31st March, 2007 towards which Rs.45.200
Millions was paid and provided. The liability towards such recompense amount
Including for the period after 1st April, 2007 remained unascertainable.
Statutory auditors had given this matter as ‘matter of emphasis’ in their audit
report for the year ended 31st March, 2014 and review report for quarter ended
30th June, 2014. During the current period, lenders have computed the
recompense liability Including for the period from 1st April, 2007 till 31st
March, 2014, which has been subsequently approved by CDR Empowered Group in its
meeting held on 20th October, 2014. Based on such approvals, during the
quarter/half year ended, provision of Rs. 4,36.731 Millions has been made
towards the balance recompense payable for the period upto 31st March, 2014 which
has been shown as exceptional item.
Based on the synergies, risks and return associated with business operations
and in terms of Accounting Standard-17, the Company is mainly engaged in the
Manufacturing of Ferro alloys. All activities of the company revolves around
this main business. As such, there are no separate reportable segments as per
the Accounting Standard 17 (Segment Reporting) notified by Companies
(Accounting Standard) Rules, 2006.
The above financial results duly reviewed by the Audit Committee and were
approved in the Board Meeting held on November 07, 2014.
FIXED ASSETS
Tangible Assets
· Land
· Mining Lease
· Buildings
· Plant and equipment
· Office Equipment
· Computer and Periperhals
· Furniture and fixtures
· Vehicles
Intangible Assets
· Computer Software
· Mines Development
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 records 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.63.32 |
|
|
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.78.11 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
38 |
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.