MIRA
INFORM REPORT
|
Report Date : |
01.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNFLAG IRON AND STEEL COMPANY LIMITED |
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Registered
Office : |
33, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
12.09.1984 |
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Com. Reg. No.: |
11-034003 |
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Capital
Investment / Paid-up Capital : |
Rs.1622.000 Millions |
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CIN No.: [Company Identification
No.] |
L27100MH1984PLC034003 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
NGPS06339E NGPS02039C |
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PAN No.: [Permanent Account No.] |
AACCS3376C |
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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
: |
Manufacturing and |
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No. of Employees
: |
1400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 19262000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Exits |
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Comments : |
Subject is an established company having satisfactory track record. The company has incurred a loss during financial year 2013. However,
net worth of the company is satisfactory. The rating also takes into account the long track record of the
company in manufacturing of mild steel and alloy steel products, experienced
management and established position in the alloy steel industry. Trade relations are reported as fair. Business is active. Payment
terms are reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on
overseas purchases and muted import of capital goods helped shrink the current
account deficit.
Online retailer Flipkart
has acquired fashion portal Myntra as it prepares to
battle with the rapidly expanding India arm of the global e-commerce giant
Amazon. The company raised $ 210 million from Russian Investment firm DST
Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune
in the second half of 2014. GM was one of the few global carmakers that was
using its India plant only for the domestic market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year
to $ 158.84 billion. The top 10 of the 100 slots were dominated by US
companies.
Infosys lost another heavy weight when B G Srinivas,
a board member put in his papers. He is the third CEO-hopeful to quit after
Chairman N R Narayana Murthy’s return to the company
– Ashok Vemuri and V Balakrishnan being the other two.While
Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted biggest
quarterly loss – Rs 2153.37 crore
– in the three months ended March 31, mainly because it has been offering
discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala
Police had arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies.
China’s action which targets consultancies like McKinsey & Co. and the
Boston Consulting Group, sterns from fears that the first are providing trade
secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter
refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long - term bank facilities BBB+ |
|
Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk. |
|
Date |
October 9, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short – term bank facilities A2 |
|
Rating Explanation |
Have strong degree of safety and carry very
low credit risk. |
|
Date |
October 9, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
|
Name : |
Mr. Mahadevan |
|
Designation : |
General Manager |
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Contact No.: |
91-712-2524661 |
|
Date : |
17.06.2014 |
LOCATIONS
|
Registered / Head / Regional Office : |
33, Mount Road, Sadar, Nagpur
– 440001, Maharashtra, India |
|
Tel. No.: |
91-712-2524661/ 2520356/ 57/ 58/ 2532901 |
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Fax No.: |
91-712-2520360 |
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E-Mail : |
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Website : |
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Factory : |
Bhandara Road, District Bhandara
– 441905, Maharashtra, India |
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Tel. No.: |
91-7197-285551 to 285555 |
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Fax No.: |
91-7184-285570 / 285740 |
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Warehouses : |
Located at : Ř Kolkata Ř Chennai Ř Delhi Ř Faridabad Ř Ludhiana Ř Bangalore Ř Kanpur Ř Madurai Ř Jaipur Ř Bhiwadi Ř Mumbai |
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Branch Offices : |
Located at : Ř
Delhi Ř
Indore Ř
Bangalore |
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Regional Office 1 : |
C/O Themco Private Limited, 8-B. T. Road, Belgharia, Kolkata – 700056,
West Bengal, India |
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Tel No. : |
91-33-25442429/ 25442430 |
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Fax No. : |
91-33-25442431 |
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Regional Office 2 : |
Plot No. 12, Sector – 6, Mathura Road, Faridabad-
121006, Haryana, India |
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Tel. No.: |
91-129-4290801-08/ 4290887/ 4290888 |
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Fax No.: |
91-129-4061646 |
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Regional
Office 3 : |
705, 7th Floor, Challa
Mall, 11 / 11A, Sir Thiagaraya Road, T. Nagar, Chennai - 600017, Tamilnadu,
India |
|
Tel. No.: |
91-44-24341065/ 24342262/
24342263/ 24323724 |
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Fax No.: |
91-44-24347649 |
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Regional Office
4 : |
Office No. 65-69, Fifth Floor, 'Sai
Kripa Bhavan', Pune - Mumbai Highway,
Opposite KSB Pumps, S No 5743, Kharalwadi, Pimpri District Pune – 411018, Maharashtra,
India |
|
Tel. No.: |
91-20-32940427/ 27425607/
27424685 |
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Fax No.: |
91-20-27423013 |
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Regional Office
5 : |
307, Hamilton-B, Hiranandani
Business Park, Ghodbunder Road, Thane (West) - 400607, Maharashtra,
India |
|
Tel. No.: |
91-22-25862294/ 95/ 96/
25861928 |
|
Fax No.: |
91-22-25861931 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. P. B. Bhardwaj |
|
Designation : |
Chairman cum Managing Director |
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|
Name : |
Mr. Ravi Bhushan Bhardwaj |
|
Designation : |
Vice Chairman and Managing Director |
|
Date of Birth/ Age : |
70 Years |
|
Experiences : |
48 Years |
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|
Name : |
Mr. Pranav Bhardwaj |
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Designation : |
Joint Managing Director |
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Date of Birth/ Age : |
39 Years |
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Qualification : |
B. Sc |
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Experiences : |
18 Years |
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Name : |
Dr. E. R. C. Shekar |
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Designation : |
Director |
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Name : |
Mr. S Gajendran |
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Designation : |
Director |
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Name : |
CA Jayesh Madhavji
Parmar |
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Designation : |
Director |
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Name : |
Mr. B.W. Ramteke |
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Designation : |
Director (Effective 28th May 2012) Nominee - IDBI Bank Limited |
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Name : |
Mr. Surendra Kumar Gupta |
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Designation : |
Director and CEO |
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Date of Birth/ Age : |
65 Years |
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Qualification : |
B. E. (Mechanical) and Holding Diploma in Business Management |
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Experiences : |
35 Years |
KEY EXECUTIVES
|
Name : |
CA R. Muralidhar |
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Designation : |
Chief Financial Officer - Executive Director (Finance) |
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|
Name : |
Mr. Mukesh D. Parakh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
1612140 |
0.99 |
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|
8333356 |
5.14 |
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|
9945496 |
6.13 |
|
|
|
|
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|
13217398 |
8.15 |
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|
65253582 |
40.23 |
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|
78470980 |
48.38 |
|
Total shareholding of Promoter and Promoter Group (A) |
88416476 |
54.51 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
88000 |
0.05 |
|
|
89870 |
0.06 |
|
|
1100 |
0.00 |
|
|
50000 |
0.03 |
|
|
228970 |
0.14 |
|
|
|
|
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|
11381783 |
7.02 |
|
|
|
|
|
|
27140849 |
16.73 |
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|
34348719 |
21.18 |
|
|
680706 |
0.42 |
|
|
528795 |
0.33 |
|
|
150706 |
0.09 |
|
|
1105 |
0.00 |
|
|
100 |
0.00 |
|
|
73552057 |
45.35 |
|
Total Public shareholding (B) |
73781027 |
45.49 |
|
Total (A)+(B) |
162197503 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
162197503 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Special Steel Rolled Products. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
1400 (Approximately) |
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Bankers : |
Ř
State Bank of India Ř
Bank of India Ř
Canara Bank Ř
Indian Bank Ř
State Bank of Bikaner
and Jaipur Ř IDBI Bank
Limited |
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|
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Facilities : |
NOTE: LONG TERM
BORROWINGS
i.
Term Loans from Banks are secured by a first
mortgage of all the Company's immovable properties, both present and future
ranking pari passu interest
and a first charge by way of hypothecation of all the Company's
movables subject to prior charges created in favour
of Company's bankers on inventories, book debts and other movables for
securing the borrowings for working capital requirement. ii.
New term loan of Rs.
2.000 millions borrowed during the year from State Bank of India is further
secured by Personal Guarantee of Shri Ravi Bhushan Bhardwaj, Vice Chairman and Managing Director of the
Company. iii.
The Company has not defaulted in either repayment
of principle or interest during the year. @ The Unsecured
loans comprising interest free loans given by Promoters. There is no stipulation
as to the repayment hence there is no default in repayment during the period. # The Unsecured
loan comprising interest free Sales Tax Loan. The repayment of the Sales Tax
loan is made as per the schedule and there is no default in repayment during
the period. SHORT TERM
BORROWINGS
i.
Working Capital Borrowings are secured by way of
hypothecation of inventories and book debts and further secured by way of
second charge ranking pari passu over the fixed assets both present and
future, subject to prior charges created by the Company in favour of banks for securing term loan. Working capital
borrowings are further secured by the personal guarantee of Shri Ravi Bhushan
Bhardwaj, Vice Chairman and Managing Director of
the Company.
ii.
The Company has not defaulted in either repayment
of principle or interest during the year. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
|
|
Name : |
Patel, Shah and Joshi Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
G. R. Paliwal and Company Cost Accountants |
|
Address : |
Nagpur, Maharashtra,
India |
|
|
|
|
Associate Enterprise : |
Ř Haryana Television Limited Ř Ridge Farm
Developers (Private) Limited |
|
|
|
|
Joint Venture Companies : |
Ř Madanpur (North) Coal Company Private Limited Ř C T Mining
Private Limited Ř Gujarat State
Mining and Resources Corporation Limited |
|
|
|
|
Subsidiary Companies : |
Ř Sunflag Power Limited Ř Sunflag Special Steels Limited Ř Khappa Coal Company Private Limited |
|
|
|
|
Enterprise which have significant influence : |
Ř Sunflag Limited, Channel Island, UK |
CAPITAL STRUCTURE
After 25.09.2013
Authorised Capital : Rs. 2050.000 Millions
Issued, Subscribed & Paid-up Capital :Rs. 1621.975 Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4000000 |
10% Cumulative Preference Shares |
Rs.100/- each |
Rs.400.000 Millions |
|
165000000 |
Equity Shares |
Rs.10/- each |
Rs.1650.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 2050.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
162197503 |
Equity Shares |
Rs.10/- each |
Rs.1622.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1622.000 |
1622.000 |
1622.000 |
|
(b) Reserves & Surplus |
3193.700 |
3318.700 |
3125.000 |
|
(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) |
4815.700 |
4940.700 |
4747.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2772.500 |
3484.700 |
2713.800 |
|
(b) Deferred tax liabilities (Net) |
558.000 |
558.000 |
488.100 |
|
(c) Other long term liabilities |
130.600 |
166.000 |
279.000 |
|
(d) long-term provisions |
138.900 |
105.200 |
610.200 |
|
Total
Non-current Liabilities (3) |
3600.000 |
4313.900 |
4091.100 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
1450.200 |
1826.400 |
1102.700 |
|
(b) Trade payables |
2406.800 |
1920.200 |
548.300 |
|
(c) Other current liabilities |
826.800 |
821.900 |
616.300 |
|
(d) Short-term provisions |
476.200 |
456.400 |
605.500 |
|
Total
Current Liabilities (4) |
5160.000 |
5024.900 |
2872.800 |
|
|
|
|
|
|
TOTAL |
13575.700 |
14279.500 |
11710.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6178.000 |
4169.300 |
3449.700 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
327.000 |
2362.500 |
1893.200 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
76.700 |
76.500 |
75.800 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
295.300 |
553.400 |
862.900 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
6877.000 |
7161.700 |
6281.600 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3269.300 |
3918.400 |
2990.300 |
|
(c) Trade receivables |
1556.200 |
1496.000 |
1409.500 |
|
(d) Cash and cash equivalents |
534.000 |
526.800 |
345.500 |
|
(e) Short-term loans and advances |
1325.500 |
1134.100 |
676.200 |
|
(f) Other current assets |
13.700 |
42.500 |
7.800 |
|
Total
Current Assets |
6698.700 |
7117.800 |
5429.300 |
|
|
|
|
|
|
TOTAL |
13575.700 |
14279.500 |
11710.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
Income |
15693.100 |
16181.800 |
15440.700 |
|
|
|
Other Income |
78.200 |
52.800 |
56.000 |
|
|
|
TOTAL |
15771.300 |
16234.600 |
15496.700 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Cost of Materials Consumed |
9438.600 |
11126.600 |
9862.200 |
|
|
|
Other Manufacturing Expenses |
3468.100 |
3296.000 |
2755.200 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-Trade |
168.300 |
(787.000) |
(122.900) |
|
|
|
Employees benefits expense |
758.600 |
716.400 |
660.200 |
|
|
|
Other expenses |
674.900 |
626.200 |
663.000 |
|
|
|
TOTAL |
14508.500 |
14978.200 |
13817.700 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1262.800 |
1256.400 |
1679.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
823.300 |
530.500 |
374.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
439.500 |
725.900 |
1304.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
564.500 |
424.400 |
396.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(125.000) |
301.500 |
908.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
107.800 |
202.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(125.000) |
193.700 |
705.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3293.100 |
3099.400 |
2488.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
0.000 |
81.100 |
|
|
|
Corporate Dividend Tax |
0.000 |
0.000 |
13.200 |
|
|
BALANCE CARRIED
TO THE B/S |
3168.100 |
3293.100 |
3099.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export at FOB value |
1085.400 |
1355.900 |
1151.400 |
|
|
TOTAL EARNINGS |
1085.400 |
1355.900 |
1151.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
790.400 |
936.000 |
1295.600 |
|
|
|
Components & Spares |
33.600 |
50.700 |
26.200 |
|
|
|
Capital Goods |
13.200 |
171.000 |
414.500 |
|
|
TOTAL IMPORTS |
837.200 |
1157.700 |
1736.300 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.77) |
1.19 |
4.35 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.79)
|
1.19 |
4.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.80)
|
1.86 |
5.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.95)
|
2.55 |
9.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.06 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.88
|
1.07 |
0.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.42 |
1.89 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
1622.000 |
1622.000 |
1622.000 |
|
Reserves & Surplus |
3125.000 |
3318.700 |
3193.700 |
|
Net
worth |
4747.000 |
4940.700 |
4815.700 |
|
|
|
|
|
|
long-term borrowings |
2713.800 |
3484.700 |
2772.500 |
|
Short term borrowings |
1102.700 |
1826.400 |
1450.200 |
|
Total
borrowings |
3816.500 |
5311.100 |
4222.700 |
|
Debt/Equity
ratio |
0.804 |
1.075 |
0.877 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
15440.700 |
16181.800 |
15693.100 |
|
|
|
4.800 |
(3.020) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
15440.700 |
16181.800 |
15693.100 |
|
Profit |
705.300 |
193.700 |
(125.000) |
|
|
4.57% |
1.20% |
(0.80%) |
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 |
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 |
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 |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date:- 04/03/2014 |
|
Lodging No.:- MCAST/4348/2010 Filing
Date:- 17.02.2010 Reg. No.:- MCA/19/2010 Reg.
Date:- 10.03.2010 |
|
Petitioner: THE STATE OF MAHARASHTRA Respondent: SUNFLAG IRON
AND STEEL COMPANY LIMITED Petn. Adv : GOVERNMENT PLEADER (0) District: NAGPUR |
|
Bench: SINGLE Status: Pre-Admission
Last Date: 09.06.20144
Stage: FOR ADMISSION Last Coram: ACCORDING TO SITTING LIST |
|
Act: Constitution of India |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
From Promoters (Interest Free) @ |
137.500 |
137.500 |
|
Other Loans and
Advances # |
|
|
|
Interest Free Sales Tax Loan |
626.400 |
688.100 |
|
|
|
|
|
Total |
763.900 |
825.600 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10432530 |
28/09/2013 * |
200,000,000.00 |
State Bank of Bikaner
& Jaipur |
Commercial Network Branch, 239, P. D. Mello Road, Near GPO, Fort,
Mumbai - 400001, Maharashtra,
India |
B86608924 |
|
2 |
10413511 |
28/09/2013 * |
200,000,000.00 |
State Bank of India |
The Arcade, 2nd Floor, World Trade Centre, Cuffe
Parade, Mumbai - 400005, Maharashtra, India |
B86567369 |
|
3 |
10225887 |
20/08/2010 * |
1,500,000,000.00 |
Indian Bank |
Deccan Gymkhana Branch, 759/62, Prabhat Road, Pune - 411004, Maharashtra, India |
A94006160 |
|
4 |
10222470 |
20/08/2010 * |
900,000,000.00 |
Bank of India |
Nagpur Corporate Banking Branch, S V Patel Marg, |
A93477800 |
|
5 |
10209393 |
20/08/2010 * |
1,000,000,000.00 |
IDBI Bank Limited |
IDBI Tower, 9th Floor, WTC Complex, Cuffe
Parade, Mumbai - 400005, Maharashtra, India |
A93440774 |
|
6 |
10112073 |
12/09/2008 * |
600,000,000.00 |
State Bank of India |
Industrial Finance Branch, 'The Arcade' 2nd Floor, World Trade Centre,
Cuffe Parade, Colaba, Mumbai
- 400005, Maharashtra, India |
A45338423 |
|
7 |
90239709 |
28/09/2013 * |
6,993,300,000.00 |
State Bank of India |
The Arcade, 2nd Floor, World Trade Centre, Cuffe
|
B87636999 |
|
8 |
90239530 |
22/07/2004 * |
43,600,000.00 |
IFCI Ltd |
Bank of Baroda Building, Parliamentary Street, New Delhi - 110001,
India |
- |
|
9 |
90239504 |
22/07/2004 * |
81,100,000.00 |
INDUSTRIAL FINANCE CORP. OF INDIA |
Bank of Baroda Building, Parliamentary Street, New Delhi - 110001,
India |
- |
|
10 |
90239492 |
28/03/1990 |
2,000,000.00 |
STATE BANK OF INDIA |
Commercial Branch, Bombay, Maharashtra,
India |
- |
* Date of charge modification
CORPORATE
INFORMATION
Subject was
incorporated in 1984 and engaged in the business of manufacturing and sale of
Special Steel Rolled products.
FINANCE
During the
financial year, the net turnover is lower by about 3% as compared to
corresponding previous financial year. The Company has ended the financial year
with a loss after tax of Rs. 125.000 millions. After
taking into account the brought forward profit of Rs.
3293.100 millions, the Company has carried forward an amount of Rs.3168.100
millions.
MARKET SCENARIO
The current market
scenario is not favorable to Steel Industry as well as Automobile and Auto
component sectors due to general slowdown in Indian and Global economy coupled
with policies of Government. However, is continuing to develop new high value
grades of alloy steel to cater the needs of domestic as well as international
markets.
OPERATIONS
i.
During the financial year:
a)
The total production for Direct Reduction Plant (I
+ II) was 118,030 MT as against 142,444 MT of the previous financial year.
b)
The total production of 269,152 MT in Steel Melt
Shop as against 302,532 MT of the previous financial year.
c)
The total production of Rolled products at BSM and
ASM was 273,019 MT as against 303,732 MT of the previous financial year.
(Previous year production includes outside conversion of 7,624 MT).
d)
The total production of Hot Metal / Pig Iron was
189,640 MT as against 205,089 MT of the previous financial year.
e)
The total production of Sinter Plant was 340,389 MT
as against 339,900 MT of the previous financial year.
f)
The total production of Blooming Mill was 30,206 MT
including semis. The production for the previous year nil as it was
commissioned in the financial year.
ii.
The power plant generated 1,601.03 Lacs kWh as compared to 1,714.21 Lacs
kWh of the previous financial year.
iii.
The total coal production at Belgaon
Coal Block is 248,350 as against 159,905 MT of the previous financial year.
PROJECTS
Steel Plant:
The Company has
commissioned commercial production of Blooming Mill during the financial year.
Additionally, the Company is in the process of installation of Variable
Reduction Mill (VRM) which will give close dimension, tolerance and good
surface finish. Also, the Company is in process of installation of Bar
Conditioning system.
These new projects
will add wider product range, value addition and more competitive products and
in particular, in achieving economy in the cost of production.
Also, the Company had installed Fume Extraction System in its Steel Melt
Shop area as a measure of reducing the pollution.
SUBSIDIARY
COMPANIES:
Sunflag Power Limited: Requisite approvals are being sought and
underway for implementation of Hydro Power Project at Hanol
Tuini in the state of Uttarakhand.
Recent disaster in the state of Uttarakhand may delay
the progress of implementation of Company’s Hydro Power Project at Hanol Tuini.
Sunflag Special Steels Limited: The management is
exploring the business opportunities for the Company.
Khappa Coal Company Private Limited: The Company has
initiated various activities well in time and is striving harder to pave its
way to success. The activities to be initiated by the Company are almost over
and different matters are pending with various departments of Government of Maharashtra and Government of India. The operations of the Khappa and Extension Coal Block will depend on delay in
execution of project approvals and clearances, for which regular follow up
action is being taken by the Company.
JOINT VENTURE
COMPANIES:
Madanpur (North) Coal Company Private Limited: Earlier, the
project was declared as 'No Go Area' which was later withdrawn by the Ministry
of Environment & Forest, Government of India for the purpose of forest
clearances. As such, various approvals / clearances are being sought from the
concerned authorities for effective implementation of the Madanpur
(North) Coal Project in the state of Chhattisgarh.
C T Mining Private
Limited: The Ministry of Coal, Government of India vide its order dated 22nd
November 2012 de-allocated the Coal Block allocated to the Joint Venture
Company. The said joint venture company together with the promoter companies
viz.
M/s Sunflag Iron & Steel Company Limited and M/s Rungta Mines Limited have separately filed Writ Petition/s
before the Hon’ble High Court of Jharkhand
at Ranchi and got stay order on 12th December 2012.
The matter is now sub-judice before the Hon’ble High Court of Jharkhand
at Ranchi.
Gujarat State
Mining and Resources Corporation Limited: The management efforts are underway for
getting allocation of coal block for development of integrated coke oven plant
in the state of Gujarat.
MANAGEMENT DISCUSSION AND ANALYSIS
Subject had set up
a ‘state of the art’ integrated Steel plant at Warthi,
Bhandara Road to produce high quality Special Steel
with manufacturing facilities like Sponge Iron Plant, Mini Blast Furnace,
Sinter plant, Captive Power Plant and Blooming Mill.
Sunflag Steel has
established itself as a major global force. With the modern complex pulsating
with world class technology, expert human resources and a commitment to
excellence, Sunflag Steel has become a reputed
supplier in Flat Bars, Round Bars, Bright Bars and Wire Rods of Alloy Steel,
Spring Steel and Stainless Steel and captured better position in these market
segments. Sunflag Steel is also embarking on an
export thrust and is regularly supplying to various customers in South East
Asian, African, Middle East and South American countries.
Further, due to
implementation of Blooming Mill, Sunflag Steel can
cater to foreign as well as indigenous customers of their needs of Rolled
Products for higher sections and thus offering a better product mix. The
Blooming Mill will yield better quality of higher size rolled products and
Bloom / Ingots due to better compression ratio and more specifically used in
the critical applications like crank shaft quality and it can be supplied to
Only Equipment Manufacturers (OEM).
GLOBAL ECONOMY
i.
Global economic prospects have not much improved
again and the road to recovery in the advanced economies will remain bumpy.
ii.
Though the financial market rally has been helping
economic recovery by improving funding conditions and supporting confidence,
but growth prospects appear broadly unchanged.
iii.
In the euro area, better conditions for periphery
sovereigns are not yet passing through to companies and households, because
banks are still hobbled by poor profitability and low capital, constraining the
supply of credit.
iv.
In advanced economies, real GDP is projected to
contract relative to 2012, by about Ľ percent of GDP. Japan, by contrast, will
see a fiscal and monetary-stimulus-driven rebound, with real GDP growth
reaching 1˝ percent.
v.
Overall, the annual growth for advanced economies
in 2013 is no better than the outcome for 2012.
vi.
There was a noticeable slowdown in the emerging
market and developing economies during 2012. With consumer demand resilient,
macroeconomic policy on hold, and exports reviving, most of the economies in
Asia and sub- Saharan Africa and many economies in Latin America and the
Commonwealth of Independent States are now seeing higher growth.
vii.
The economies in the Middle East and North Africa
continue to struggle with difficult internal transitions. And a couple of
economies in South America are facing high inflation and increasing exchange
market pressure.
INDIAN ECONOMY
Industrial growth
has remained subdued since July 2011 due to weak global demand, weak supply
linkages, high import costs and sluggish investment activities.
India is expected
to record 6.1 per cent Gross Domestic Product (GDP) growth in the current
fiscal 2013-2014. The growth is expected to increase further to 6.7 per cent in
2014-2015, according to the World Bank’s latest India Development Update, a
bi-annual report on the Indian economy. While, Prime Minister’s Economic
Advisory Panel expects the economic growth to increase to 6.4 per cent in
2013-2014 from 5.0 per cent during 2012-2013 (as compared to 6.2 per cent in
2011-2012), on back of improvement in performance of agriculture and
manufacturing sectors. However, the growth rate in the first three quarters of
the current fiscal is 5.0 per cent.
Slowdown in Indian
economy is largely due to global factors, as also because of domestic factors
like tightening of monetary policy, high inflation and slower investment and
industrial activities.
The major points
of concern during the fiscal 2012-2013 are as follows:
1.
Overall growth in the Index of Industrial
Production (IIP) was 0.9 per cent as compared to 3.5 per cent in 2011-2012
2.
Eight core industries (comprising of crude oil,
petroleum refinery products, coal, electricity, cement, steel, natural gas and
fertilizers) registered 2.6 per cent growth as compared to 5.2 per cent during
2011-2012
3.
Growth in the manufacturing sector disappointed
coming in at 1.0 per cent in FY2013, a 15 year low. It has decelerated for the
third straight year from 11.3 per cent in FY2010.
INDIAN STEEL,
AUTOMOBILE AND AUTO COMPONENT INDUSTRY
In India, the
Steel industry plays a significant role in the economic growth. India has
acquired a central position in the global steel map with its giant steel mills,
acquisition of global scale capacities players, continuous modernisation
and up-gradation of old plants, improving energy efficiency and backward
integration into global raw material sources. However, the subdued growth of
core industries has remained a drag on industrial production, more
particularly, the Policy uncertainties in area such as iron ore and coal have
adversely affected the output of Steel and Power industries.
Currently, ranked
the world’s fourth largest crude steel capacity, India is expected to become
second largest producer of crude steel in the world by 2015-2016. India is also
the world’s largest producer of sponge iron with a host of coal based units
located in its mineral rich states.
Indian crude steel
production is estimated to grow at a compounded annual growth rate (CAGR) of
around 10.0 percent whereas the finished steel consumption is estimated to grow
at a CAGR of around 12.0 per cent during financial years 2012-2014.
The industry has
faced with stiff challenges due to rising inflationary pressures and
deteriorating global growth conditions. The multiple hikes in interest rates by
the central bank also impacted the industry’s growth in rate sensitive key user
industries.
Domestic
automakers continued with their poor run in April - May 2013 also, broadly on
the expected line, due to slowdown in economic activity and negative consumer
sentiments. The slowdown continues to be prominent in the medium and heavy
commercial vehicle (MHCV), passenger car and two-wheeler segments. The utility
vehicle (UV) and light commercial vehicle (LCV) segments, which so far had
remained insulated from the slowdown, too have started witnessing demand
pressures. Going ahead, it is expected that volume growth to remain sluggish in
1HFY2014 due to high inventory levels and weak consumer sentiments.
Nonetheless, they expect volumes to recover in 2HFY2014 on the back of further
easing of interest rates, festival demand and also due to favorable base
effect.
MATERIAL
DEVELOPMENT
Sunflag Steel was not
able to maintain its profitability mainly due to marginal rise in selling
prices of its products versus abnormal rise in the cost of inputs such as iron
ore, pig iron and coke and largely due to overall decelerated global and Indian
economic growth.
In order to
achieve effective cost reduction and improvement in productivity, activity of
total productive maintenance (TPM) continued to be implemented by the Company
during the year.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2013 (Rs. in millions) |
31.03.2012 (Rs. in millions) |
|
i. Contingent
liabilities |
|
|
|
a) Unexpired Letter of Credit |
1080.100 |
674.000 |
|
b) Guarantees issued by Company's Bankers on behalf of the Company |
269.200 |
266.600 |
|
c) Bonds / Under Takings given by the Company under Duty Exemption
Scheme to the Custom Authorities |
259.800 |
278.200 |
|
d) Bills Discounted |
640.000 |
336.700 |
|
e) Excise Duty & Custom Duty against which Company has preferred
an Appeal |
10.000 |
10.000 |
|
f) Income Tax Liability - Disputed but paid |
107.400 |
132.400 |
|
g) Income Tax Liability - Disputed but not paid |
73.900 |
0.000 |
|
h) Corporate Guarantee issued to Banks on behalf of Subsidiaries |
40.000 |
40.000 |
|
|
|
|
|
ii. Commitments |
|
|
|
Estimated amount of contracts remaining to be executed on capital
account and not provided for :-
Tangible Assets |
50.700 |
376.500 |
FIXED ASSETS
Ř Freehold Land
Ř Leasehold Land
Ř Buildings
- Factory Building
- Non – Factory Building
- Office Building
- Township
- Welfare Building
- Roads
- Boundary wall and fencing
Ř Railway Siding
Ř Plant and
Machinery
Ř Furniture and
Fixture
Ř Heavy Vehicles
Ř Light Vehicles
Ř Development of
Mines
UNAUDITED
FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED 31ST DECEMBER, 2013
(Rs. In Millions)
|
Sr No. |
Particulars (PART I) |
Quarter
Ended |
Nine
Months Ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Income from operations |
|
|
|
|
|
(a) Net sales/income from
operations (Net of excise duty) |
4099.800 |
382.100 |
11600.400 |
|
|
(b) Other operating income |
-- |
-- |
-- |
|
|
Total income from operations (net) |
4099.800 |
382.100 |
11600.400 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
2354.000 |
2462.500 |
6892.600 |
|
|
(b) Purchases of stock-in-trade |
-- |
-- |
-- |
|
|
(c) Changes in inventories of
finished goods and work-in-progress |
(18.300) |
(171.100) |
(105.200) |
|
|
(d) Employee benefits expense |
180.200 |
181.200 |
551.500 |
|
|
(e) Depreciation and amortisation expense |
162.700 |
148.500 |
459.800 |
|
|
(f) Other expenses |
1161.400 |
1018.400 |
3166.000 |
|
|
Total expenses |
3840.000 |
3639.500 |
10964.700 |
|
3 |
Profit (Loss) from operations
before other income, finance costs and exceptional items (1-2) |
259.800 |
181.500 |
635.700 |
|
4 |
Other income |
3.500 |
12.100 |
34.000 |
|
5 |
Profit/(Loss) from ordinary
activities before finance costs and exceptional items (3*4) |
263.300 |
193.600 |
669.700 |
|
6 |
Finance costs |
198.000 |
167.200 |
538.000 |
|
7 |
Profit (Loss) from ordinary
activities after finance costs but before exceptional items (5-6) |
65.300 |
26.400 |
131.700 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit / (Loss) from ordinary
activities before tax (7-8) |
65.300 |
26.400 |
131.700 |
|
10 |
Tax expense |
(13.100) |
(5.300) |
(26.400) |
|
11 |
Net Profit/[Loss after tax (9-10) |
52.200 |
21.100 |
105.300 |
|
12 |
Paid-up equity share capital (Face Value Rs.
10/-) |
1622.000 |
1622.000 |
1622.000 |
|
13 |
Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
|
|
14 |
Basic and
Diluted Earning per share (Rs.) |
0.32 |
0.13 |
0.65 |
|
|
PART II |
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
- Number of Shares |
737781027 |
737781027 |
737781027 |
|
|
- Percentage of Shareholding |
45.49% |
45.49% |
45.49% |
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of shares (as a percentage of the total shareholding of
Promoters and Promoter Group) |
-- |
-- |
-- |
|
|
- Percentage of shares (as a percentage of the total capital of the
Company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
88416476 |
88416476 |
88416476 |
|
|
- Percentage of shares (as a percentage of the total shareholding of
Promoters and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of shares (as a percentage of the total capital of the
Company) |
54.51% |
54.51% |
54.51% |
NOTE:
1.
After reviewed by the Audit Committee, the above
financial results were approved by the Board of Directors at their meeting held
on 28Ih January 2014.
2.
The above Financial results are subject to 'Limited
Review' by the Statutory Auditors of the Company.
3.
The capital employed as on 31"' December 2013
is Rs. 8890.700 millions
4.
As there are no taxable profits, the Company has
provided current tax expenses as per provisions under MAT
5.
As of now, there is no deferred tax liability.
However, the same will be reviewed and liability, if any, will be provided
before the end of the financial year.
6.
The Company is primarily engaged in the business of
rolled products and grouped as single segment as per the Accounting Standard
(AS) - 17 dealing with segment report issued by ICAI.
7.
During the quarter. 4 Investors' complaints were
received and all the complaints were attended to by the Company I Share
Transfer Agent. At the end of the quarter, no complaints were pending.
8.
The figures of previous periods have been
re-grouped I re-arranged, wherever necessary
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 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.60.09 |
|
|
1 |
Rs.102.33 |
|
Euro |
1 |
Rs.82.01 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Don by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.