MIRA
INFORM REPORT
|
Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
BHUSHAN STEEL LIMITED (w.e.f. 2007) |
|
|
|
|
Formerly Known
As : |
BHUSHAN STEEL AND STRIPS LIMITED |
|
|
|
|
Registered
Office : |
Bhushan Centre, Ground Floor, Hyatt Regency Complex, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
07.01.1983 |
|
|
|
|
Com. Reg. No.: |
55-014942 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1490.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1983PLC014942 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELB07323B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB1247M |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils and
Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
|
|
|
|
No. of Employees
: |
10,000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 360000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is one of the well-established leading player in the steel
industry having moderate track. The management has seen deterioration in the company’s credit profile
characterized by decline in its net profitability and further aggravated by
slower than expected ramping up of operations of Orissa phase II expansion
project. Moreover, the management has reported a loss from its operations
during the October – December quarter as a result of the working capital
intensive operations along with the large debt funded project expansion due
to which the management has seen an increase in its external borrowings
during the year under review, which has further weakened the liquidity
position. Business is active. Payment terms are reported as slow but
correct. In view of resource fullness and experience of the promoters and the
company’s established track in the industry the subject can be considered for
business dealings with slight caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund manager
Jim Chanos has been keenly following the political and economic development in
the dragon economy and has figured out something that is quite worrying. He is
of the view that the Chinese economy could be heading toward trouble on account
of new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: BB |
|
Rating Explanation |
Moderate risk of default regarding timely servicing of financial obligations.
|
|
Date |
05.03.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
05.03.2014 |
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.
LOCATIONS
|
Registered/
Corporate Office 1 : |
Bhushan Centre, Ground Floor, Hyatt Regency Complex, Bhikaji Cama
Place, New Delhi - 110066,
India |
|
Tel. No.: |
91-11-26462373 (5 Lines) / 42297777 / 42295555 / 39194000 |
|
Fax No.: |
91-11-26478750 /
26415845 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 and Marketing Office – Sahibabad : |
23, Site IV,
Sahibabad Industrial Area, Sahibabad, District |
|
Tel. No.: |
91-120-2770601-
04/ 3028000-09 |
|
Fax No.: |
91-120-2770509/
4100574 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
28/4, Site IV, Sahibabad
Industrial Area, Sahibabad, District |
|
|
|
|
Factory 3 : |
Village Nifran,
Savroli and Dehvali, Taluka – Khalapura, (Near Khopoli), District Raigad –
410 203, |
|
Tel. No.: |
91-2192-274146/
302000 |
|
Fax No.: |
91-2192-274294/
274354 |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
Narendra Pur, P O
Shibapur, Village Meramandali, District – Dhenkanal – 759 121, |
|
Tel. No. : |
91-6764-300000/
326443/ 325133/ 325857 |
|
E-mail : |
|
|
|
|
|
Branches : |
Located at: ·
Agra ·
Ahmedabad ·
Aurangabad ·
Bengaluru ·
Bhubaneshwar ·
Chandigarh ·
Chennai ·
Coimbatore ·
Dehradun ·
Delhi ·
Faridabad ·
Gurgaon ·
Guwahati ·
Haldwani ·
Hyderabad ·
Hosur ·
Indore ·
Jaipur ·
Jammu ·
Kullu ·
Kolkata ·
Kanpur ·
Ludhiana ·
Mandigovindgarh ·
Mumbai ·
Pilkhuwa (Hapur) ·
Pune ·
Parwanoo ·
Rishikesh ·
Varanasi |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Brij Bhushan
Singal |
|
Designation : |
Chairman |
|
Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
|
Date of Birth/
Age: |
20.11.1936 |
|
Date of
Appointment: |
15.01.1987 |
|
|
|
|
Name : |
Mr. Neeraj Singal |
|
Designation : |
Vice Chairman and Managing Director |
|
Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
|
Date of Birth/
Age: |
23.04.1968 |
|
Qualification: |
Graduate |
|
Date of
Appointment: |
01.04.1992 |
|
|
|
|
Name : |
Mr. Nittin Johari |
|
Designation : |
Whole-time
Director [Finance] |
|
Qualification: |
M.Com, FCA |
|
Date of
Appointment: |
06.01.1995 |
|
|
|
|
Name : |
Mr. Rahul Sen Gupta |
|
Designation : |
Whole-time
Director [Technical] |
|
|
|
|
Name : |
Mr. P.K. Aggarwal |
|
Designation : |
Whole time Director [Commercial] |
|
|
|
|
Name : |
Mr. Mohan Lal |
|
Designation : |
Director |
|
Address: |
19-A, Udham Singh Nagar, |
|
|
|
|
Name : |
Mr. B B Tondon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V.K. Mehrotra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. V. Surya
Narayana |
|
Designation : |
Director |
|
Address: |
12-2-417/A/11, Gudimalkapur,
Jaya Nagar, Hydedrabad - 500028, Andhra Pradesh, India |
|
Date of Birth/
Age: |
05.04.1946 |
|
Date of
Appointment: |
25.09.2010 |
|
|
|
|
Name : |
Mrs. Sunita
Sharma |
|
Designation : |
Nominee Director
of LIC |
KEY EXECUTIVES
|
Name : |
Mr. O. P. Davra |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Ms. Neha |
|
Designation : |
Reception |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
129061685 |
56.98 |
|
|
32431540 |
14.32 |
|
|
161493225 |
71.29 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
161493225 |
71.29 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
42399 |
0.02 |
|
|
29430 |
0.01 |
|
|
8647389 |
3.82 |
|
|
4211252 |
1.86 |
|
|
12930470 |
5.71 |
|
|
|
|
|
|
43067031 |
19.01 |
|
|
|
|
|
|
3045260 |
1.34 |
|
|
5714783 |
2.52 |
|
|
263977 |
0.12 |
|
|
123568 |
0.05 |
|
|
140409 |
0.06 |
|
|
52091051 |
23.00 |
|
Total Public shareholding (B) |
65021521 |
28.71 |
|
Total (A)+(B) |
226514746 |
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) |
226514746 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils
and Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
||||||||
|
|
|
||||||||
|
Products : |
· Cold Rolled Galvanised Bhushan
Galume Colour
Coated Coil Colour
Coated Tiles Drawn
Tubes of OEM Grade Hardened
and Tempered Strip High
Tensile Steel Stripping Wire
Rods and Alloy Billets Sponge
Iron |
GENERAL INFORMATION
|
Customers |
Wholesalers Alstom
BHEL Bajaj Bundy Ashok
Leyand Ford Honda Hitachi Hyundai IFB Mahindra GM SKF Kone Carrier Yamaha
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
10,000 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India ·
Punjab National Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
Mehra Goel and Company Chartered Accountants |
|
|
|
|
Joint Venture: |
·
Andal East Coal Company Private Limited |
|
|
|
|
Associates : |
·
Angul Sukinda Railway Limited Bhusahan Energy
Limited |
|
|
|
|
Subsidiary companies: |
·
Bhushan
Steel (Orissa) Limited. ·
Bhushan
Steel Madhya Bharat Limited ·
Bhushan
Steel (South) Limited ·
Bhushan
Steel Bengal Limited ·
Parakeet
Finvest Private Limited
(from 25th January, 2012) ·
Marsh
Capital Services Private Limited
(from 25th January, 2012) ·
Paragon
Securities Private Limited
(from 25th January, 2012) ·
Perpetual
Securities Private Limited
(from 25th January, 2012) ·
Jawahar
Credit and Holdings Private Limited
(from 29th February, 2012) ·
Bhushan
Capital and Credit Services Private Limited.
(from 29th February, 2012) ·
Bhushan
Steel Global FZE (Upto 7th May, 2011) ·
Bhushan
Steel (Australia) PTY Limited -
Bowen
Energy Limited, Australia -
Kondor
Holdings PTY Limited -
Bowen
Coal PTY Limited -
Bowen
Consolidated PTY Limited ·
Capricorn
Metals Ltd. (Deregistered w.e.f. 4th April, 2011) ·
Capricorn
Resources (Australia) Limited
(Deregistered w.e.f. 4th April, 2011) · Golden Country Resources (Australia) PTY Limited |
|
|
|
|
Enterprises over which
Key Management Personnel and their relatives are able to exercise significant
influence: |
·
Arshiya
International Limited ·
Bhushan
Aviation Limited ·
Bhushan
Infrastructure Private Limited |
|
|
|
|
Sister Concern |
·
Bhushan
Steel (Orissa) ·
Bhushan
Steel (South) |
CAPITAL STRUCTURE
As ON 31.03.2014
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs.1490.300
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.2/- each |
Rs.800.000 Millions |
|
14500000 |
Preference Shares |
Rs.100/- each |
Rs.1450.000Millions |
|
|
Total |
|
Rs.
2250.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
230605220 |
Equity Shares |
Rs. 2/- each |
Rs.461.210 Millions |
|
9405367 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 940.537 Millions |
|
354000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 35.400 Millions |
|
400000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.40.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1477.147 Millions |
Subscribed and
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
212358310 |
Equity Shares |
Rs. 2/- each |
Rs.424.717 Millions |
|
14157220 |
Equity Shares |
Rs. 1/- each |
Rs.14.157 Millions |
|
9405367 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 940.537 Millions |
|
354000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 35.400 Millions |
|
400000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.40.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1454.811 Millions |
NOTE:
Detail of
Shareholders holding more than 5% shares:
|
Name of
Shareholders |
As at 31st March,2013 |
|
|
|
No. of Shares |
% Held |
|
(A) Equity Shareholders |
|
|
|
1. Brij Bhushan Singal |
45628672 |
20.14% |
|
2. Neeraj Singal |
73105933 |
32.27% |
|
3. Bhushan Infrastructure Private Limited |
29486540 |
13.01% |
|
(B) Preference Shareholders |
|
|
|
1. Bhushan Energy Limited |
1200000 |
11.81% |
|
2. Bhushan Finance Limited |
840000 |
8.27% |
|
3. Robust Transportation Limited |
531567 |
5.23% |
|
4. Shri Neeraj Singal |
1204400 |
11.86% |
|
5. Brij Bhushan Singal |
707100 |
6.96% |
|
Particulars |
As at 31st March,2013 |
|
|
No. of Shares |
Amount (Rs. In
Millions |
|
|
Reconciliation of
number of shares outstanding is set out |
|
|
|
below: |
|
|
|
(A) Equity Shares |
|
|
|
At the beginning of the year |
212358310 |
424.717 |
|
Add : Shares Issued |
14157220 |
14.157 |
|
Less: Shares Cancelled |
-- |
-- |
|
At the end of the year |
226515530 |
438.874 |
|
(B) Preference
Shares (Non Convertible Cumulative Redeemable Preference Shares) |
|
|
|
10% Preference Shares |
|
|
|
At the beginning of the year |
7795267 |
779.527 |
|
Add : Shares Issued |
1610100 |
161.010 |
|
Less: Shares Redeemed |
-- |
-- |
|
At the end of the year |
9405367 |
940.537 |
|
4% Preference
Shares |
|
|
|
At the beginning of the year |
399000 |
39.900 |
|
Add : Shares Issued |
-- |
-- |
|
Less: Shares Redeemed |
45000 |
4.500 |
|
At the end of the year |
354000 |
35.400 |
|
25% Preference
Shares |
|
|
|
At the beginning of the year |
400000 |
40.000 |
|
Add : Shares Issued |
-- |
-- |
|
Less: Shares Redeemed |
-- |
-- |
|
At the end of the year |
400000 |
40.000 |
The holders of Equity Shares has one vote for each equity shares held by them. The registerd holders of Equity Shares are entitled to dividend declared from time to time. The Preference Shareholders are entitled to pro-rata dividend in preference over Equity Shareholders. The dividend is cumulative at the rate specified against each category.
The premium on redemption of preference shares to the extent of premium received on issue will be adjusted against the security premium account and any premium paid over the above said amount shall be paid out of current appropriation / General Reserve.
The Preference Share are not convertible in Equity and are redeemable at the option of the company.
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 |
1490.300 |
1454.811 |
1284.144 |
|
(b) Reserves & Surplus |
90041.000 |
89026.194 |
72679.500 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
3830.100 |
|
Total
Shareholders’ Funds (1) + (2) |
91531.300 |
90481.005 |
77793.744 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
255661.000 |
216642.128 |
155287.802 |
|
(b) Deferred tax liabilities
(Net) |
13751.900 |
13427.818 |
10388.183 |
|
(c) Other long term
liabilities |
21616.300 |
21794.561 |
15058.998 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
291029.200 |
251864.507 |
180734.983 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
62730.700 |
52328.639 |
42877.823 |
|
(b) Trade payables |
23508.700 |
16170.235 |
9931.250 |
|
(c) Other current liabilities |
41379.900 |
21011.854 |
22622.509 |
|
(d) Short-term provisions |
427.600 |
759.843 |
548.366 |
|
Total
Current Liabilities (4) |
128046.900 |
90270.571 |
75979.948 |
|
|
|
|
|
|
TOTAL |
510607.400 |
432616.083 |
334508.675 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
381905.200 |
181415.523 |
157327.164 |
|
(ii) Intangible Assets |
0.000 |
11.584 |
11.801 |
|
(iii) Capital work-in-progress |
0.000 |
125953.132 |
90686.743 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
6232.400 |
4024.554 |
3047.026 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
17939.400 |
24959.380 |
28260.352 |
|
(e) Other Non-current assets |
0.000 |
214.014 |
193.754 |
|
Total
Non-Current Assets |
406077.000 |
336578.187 |
279526.840 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
247.500 |
247.500 |
|
(b) Inventories |
64802.500 |
55596.755 |
33114.261 |
|
(c) Trade receivables |
24644.500 |
23430.872 |
12203.763 |
|
(d) Cash and cash equivalents |
829.600 |
1536.256 |
3349.803 |
|
(e) Short-term loans and
advances |
14244.200 |
15226.513 |
6066.508 |
|
(f) Other current assets |
9.600 |
0.000 |
0.000 |
|
Total
Current Assets |
104530.400 |
96037.896 |
54981.835 |
|
|
|
|
|
|
TOTAL |
510607.400 |
432616.083 |
334508.675 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
96758.300 |
107442.697 |
99414.077 |
|
|
Other Income |
291.100 |
173.359 |
273.442 |
|
|
TOTAL
(A) |
97049.400 |
107616.056 |
99687.519 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
51893.900 |
57986.415 |
55067.473 |
|
|
Purchases of Stock-in-Trade |
390.500 |
811.855 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(213.800) |
(1058.367) |
(653.307) |
|
|
Employees benefits expense |
1885.300 |
1734.541 |
1439.797 |
|
|
Other expenses |
15867.600 |
14818.588 |
13519.329 |
|
|
TOTAL
(B) |
69823.500 |
74293.032 |
69373.292 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
27225.900 |
33323.024 |
30314.227 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
16633.000 |
12874.431 |
10462.673 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10592.900 |
20448.593 |
19851.554 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
9639.600 |
8308.619 |
6199.295 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
953.300 |
12139.974 |
13652.259 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
333.700 |
3051.071 |
3417.51 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
619.600 |
9088.903 |
10234.749 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
89.309 |
37.769 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Proposed Dividend on Equity
Shares |
|
113.258 |
106.179 |
|
|
Proposed Dividend on
Preference Shares |
|
1.148 |
0.407 |
|
|
Provision for Dividend Tax |
|
19.443 |
17.291 |
|
|
Interim Dividend on Preference
Shares |
NA |
89.547 |
75.050 |
|
|
Dividend Tax on Interim
Dividend |
|
14.527 |
12.193 |
|
|
Transferred to Debenture Redemption Reserve |
|
2696.250 |
847.500 |
|
|
Release from Debenture Redemption Reserve |
|
0.000 |
0.000 |
|
|
Transfer to General Reserve |
|
6000.000 |
9000.000 |
|
|
Premium paid on Redemption of
Preference Shares |
|
26.407 |
124.589 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S (J+K+L-M) |
NA |
217.632 |
89.309 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
FOB Value of Export |
|
18128.945 |
14553.645 |
|
|
Interest Received |
|
1.862 |
14.816 |
|
|
TOTAL
EARNINGS |
NA |
18130.807 |
14568.461 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
|
16794.751 |
14937.369 |
|
|
Stores & Spares |
|
1219.888 |
599.81 |
|
|
Capital Goods |
|
12426.676 |
19137.965 |
|
|
TOTAL
IMPORTS |
NA |
30441.315 |
34675.144 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
2.23 |
41.61 |
47.78 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
0.64 |
8.45 |
10.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.99 |
11.30 |
13.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.19 |
4.01 |
5.67 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.13 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.48 |
2.97 |
2.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82 |
1.06 |
0.72 |
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 |
1284.144 |
1454.811 |
1490.300 |
|
Reserves & Surplus |
72679.500 |
89026.194 |
90041.000 |
|
Share Application money
pending allotment |
3830.100 |
0.000 |
0.000 |
|
Net
worth |
77793.744 |
90481.005 |
91531.300 |
|
|
|
|
|
|
long-term borrowings |
155287.802 |
216642.128 |
255661.000 |
|
Short term borrowings |
42877.823 |
52328.639 |
62730.700 |
|
Total
borrowings |
198165.625 |
268970.767 |
318391.700 |
|
Debt/Equity
ratio |
2.547 |
2.973 |
3.479 |
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 |
99414.077 |
107442.697 |
96758.300 |
|
|
|
8.076 |
-9.944 |
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 |
99414.077 |
107442.697 |
96758.300 |
|
Profit |
10234.749 |
9088.903 |
619.600 |
|
|
10.30% |
8.46% |
0.64% |
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 |
Yes |
|
19] |
Payments terms |
Yes |
|
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
IN THE HIGH COURT OF DELHI AT NEW DELHI
CS(OS) 2484/2013
METSO MINERALS (SINAGAPORE) PTE LIMITED..... Plaintiff
Through: Mr. Nitin Khare, Adv.
Versus
BHUSHAN STEEL LIMITED.... Defendant
Through: None
CORAM:
MS. SUKHVINDER KAUR (DHJS), JOINT REGISTRAR
O R D E R
11.12.2013
IA no. 20169/2013 ( u/s 151 CPC for exemption from filing the original documents filed by plaintiff)
Heard. In view of submission, plaintiff is granted six weeks time to file
the original documents. IA is disposed of accordingly.
CS (OS) 2484/2013
This is a fresh suit. Let it be checked and registered. Issue summons of the
suit to the defendant by all modes for 01.04.2014.
SUKHVINDER KAUR (DHJS)
JOINT REGISTRAR
DECEMBER 11, 2013/NR
$ 29
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
|
BHUSHAN STEEL LIMITED
|
|
SEBI |
DID NOT MAKE PUBLIC ANNOUNCEMENT AS REQUIRED UNDER
REGULATION 10 OF SEBI TAKEOVER CODE, 1997 IN MATTER OF ACQUISITION OF SHARES
OF ORISSA SPONGE IRON And STEEL LIMITED |
IMPOSED PENALTY RS.0.450, Millions ALONG WITH OTHER
ENTITIES/PERSONS |
SAT: APPEAL ALLOWED AND IMPUGNED ORDER DATED 18/01/2010
SET ASIDE WITH NO ORDER AS TO COSTS |
NOTE: Registered office of the company has been shifted from F Block, 1st Floor, International Trade Tower, Nehru Place, New Delhi – 110019, India, to the present
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM BORROWINGS |
|
|
|
Term Loan |
|
|
|
Foreign Currency Loans |
|
|
|
From Indian Banks |
|
1791.900 |
|
From Foreign Banks |
|
4234.735 |
|
From Others |
|
84.711 |
|
Less: current maturity of Long Term Borrowing |
|
(16263.148) |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
From Bank |
|
|
|
Rupee Loan |
|
|
|
Term Loan / Commercial Paper |
|
6803.175 |
|
Foreign Currency
Loans |
|
|
|
From Indian Banks |
|
1286.749 |
|
|
|
|
|
Total |
NA |
(2061.878) |
EXPANSION
PROJECT:
The company is under implementation
of 0.35 MTPA capacity Colled Rolling cum Electrical Steel (CRNGO) Complex at
estimated project cost of Rs.15630.000 Millions at Meramandali, Orissa.
In addition to the above,
the company shall also be completing the Coke oven plant (1.3 MTPA), Coal
Washery (2.5 MTPA) and 2 DRI Kilns (aggregate capacity of 0.34 MTPA) and 197 MW
Power Plant at the existing site of Integrated steel plant at Orissa in the
current financial year i.e. 2013-14.
In order to maintain its
leadership position in downstream segment of steel industry and to maximize the
margins, the company is setting up the downstream capacity of 1.8 MTPA, where
the company shall come up with PLTCM of 1.8 MTPA and CAL of 1 MTPA with the
estimated capex of Rs.59950.000 Millions at Meramandali, Orissa to fully
utilize its additional HR capacity. With this the company's total downstream
production capacity shall be increased to about 4 MTPA by FY 2017.
FINANCE:
During the year the Company
has tied up the term loans in foreign currency and rupee for its expansion
plans and for the requirement of funds for its normal capital expenditure. The
Company has tied up Rupee Term Loan of f 10420.000 Millions from Axis Bank as
Syndication lead bank for their CRNGO project at Orissa.
The Working Capital
facilities for Sahibabad, Khopoli and Orissa Plants have been appraised by PNB,
the lead Bank, for Rs.113900.000 Millions (Fund Based limit of Rs.53900.000
Millions and Non Fund Based limit of Rs.60000.000 Millions) for the Financial
year 2013-14.
CREDIT
RATING:
The Long Term rating of The
Company is Care A+ by Credit Analysis and Research Limited as per the
provisions of BASEL II guidelines of RBI.
The Credit Analysis and
Research Limited (CARE) has rated the short term rating at the highest rating of
A1+ (A One Plus) for short term credit facilities of the Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY
STRUCTURE AND DEVELOPMENTS
The steel industry is
divided into primary and secondary sectors. The primary sector products are
billets, pallets, rounds and Hot Rolled Coils/Plates (HRC/HRP).These form raw
material for the secondary sector ,which produces value added items such as
Angles, Channels, wire Rods, Cold Rolled Coils/sheets (CRC/CRS) AND Galvanised
Coils/Sheets. CR Sheet is a thinner sheet used for consumer durables like
refrigerators, washing machines, automobiles, bicycles, etc. CR sheets are used
by the automobile and domestic appliances industry whereas CR strips are used
in manufacturing of bicycles, drums, barrels, fabrication, furniture etc. CR
Coils are mainly used for manufacturing GP/GC sheets. Bhushan Steel Limited
which so far falls under secondary sector, also entered in primary sector with
setting up plant at Orissa.
PERFORMANCE
The company is engaged in Steel business, which is context of Accounting Standard (AS)-17 issued by the institute of Chartered Accountants of India is considered the only business segment. The overall operational performance of the company has been much satisfactory during the year. The plants have operated optimally during the year and there were no major break downs or shutdowns.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10474663 |
03/01/2014 |
6,000,000,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE
BRANCH, TOLSTOY HOUSE, TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA |
B95112041 |
|
2 |
10469506 |
26/12/2013 |
1,000,000,000.00 |
STATE BANK OF HYDERABAD |
CORE-6, SCOPE
COMPLEX, LODHI ROAD, NEW DELHI, DELHI - 110003, INDIA |
B93258226 |
|
3 |
10469498 |
20/12/2013 |
500,000,000.00 |
THE JAMMU AND KASHMIR BANK LIMITED |
G-40,, CONNAUGHT
PLACE, NEW DELHI, DELHI - 110001, INDIA |
B93256618 |
|
4 |
10464778 |
05/12/2013 |
500,000,000.00 |
THE FEDERAL BANK LIMITED |
CORPORATE
BANKING BRANCH, E-13-29, HARSHA BHAWAN, |
B91376855 |
|
5 |
10462754 |
25/11/2013 |
2,000,000,000.00 |
ORIENTAL BANK OF COMMERCE |
INDUSTRIAL
FINANCE BRANCH, A-30-33, 1ST FLOOR, CO |
B90570789 |
|
6 |
10467526 |
29/01/2014 * |
10,000,000,000.00 |
STATE BANK OF INDIA |
CORP. ACCOUNTS GROUP
BRANCH, JAWAHAR VYAPAR BHAWAN |
B96143771 |
|
7 |
10467359 |
28/11/2013 * |
2,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND, ANDURANG BUDHKAR MARG, WORLI,, MUMBAI, MAHARAS |
B93080273 |
|
8 |
10454137 |
26/09/2013 |
200,000,000.00 |
JSC VTB BANK |
THE TAJ MAHAL
HOTEL, THE LOBBY MEZZANINE FLOOR, N |
B87137758 |
|
9 |
10452147 |
26/09/2013 |
1,500,000,000.00 |
STATE BANK OF MYSORE |
CORPORATE
ACCOUNTS BRANCH, NO. 3,4 AND 5 DDA BUILDI |
B86269347 |
|
10 |
10449904 |
21/09/2013 |
3,000,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL
FINANCE BRANCH, 17, PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA |
B85338705 |
* Date of charge modification
Fixed Assets
v
Tangible
Assets
Freehold
Land
Leasehold
Land / Building
Plant
and Machinery
Railway
Siding
Furniture
and Fixtures
Vehicles
Office
Equipment
v
Intangible Assets
Computer
Software
PRESS RELEASES
BHUSHAN STEEL, CEAT TO RAISE FUNDS VIA QIP
JULY 23, 2014
QIP seems to the new flavour of the companies looking to raise cash. Both Bhushan Steel and Ceat are planning to raise funds via qualified institutional placement (QIP). Bhushan Steel plans to raise Rs 15000.000-30000.000 Millions. The company would like to pare off their debt from this raised amount. Current debt for the company stands at Rs 280000.000 Millions. QIP may lead to an equity dilution of 25% for the company. Whereas Ceat plans to raise Rs 3000.000-4000.000 Millions and they too will pare their debt from the raised funds. The current debt for the company stands at Rs 9000.000 Millions. QIP may lead to an equity dilution of 13% for Ceat. Kotak is the likely banker that the company has appointed though the company refrained from commenting on market speculation.
ORISSA ORDERS BHUSHAN STEEL TO STOP ALL PROJECT ACTIVITIES AT
DHENKANAL, ANGUL
FEBRUARY 2, 2014
Bhushan Steel Limited’s integrated steel project in Dhenkanal and Angul district of Orissa has hit a wall. The state forest department has ordered district collectors to stop all activities over the 61.48 hectares of forest land on which the company has built its plant. The forest department has moved against the project following a letter from the Assistant Inspector General of Forests to the state on December 30, 2013.
The divisional forest officer, Dhenkanal had reported that the company had constructed over 61.48 hectare of forest land violating FC Act, 1980 though the final approval order (Nov 13, 2006) was kept in abeyance by the ministry of environment.
The ministry in its letter had asked the State to initiate disciplinary proceedings against forest department officials who failed to restrain the company from utilising the forest land till it procured final approval under the Forest Conservation Act. The forest department has asked the district collectors to take action against Bhushans under Indian Forest Act, 1927 or relevant local Forest Act. The forestland on which the construction was done belong to the revenue and disaster management department.
Principal Chief Conservator of Forests JD Sharma said the MoEF order on
Bhushans is being complied with. Dhenkanal collector Roopa Sahoo, however, said
the state government is yet to take a call on that.
BHUSHAN STEEL POSTS RS 550.000 MILLIONS LOSS IN Q3
FEBRUARY 12, 2014
Income of the company fell to Rs 24071.600 Millions during the quarter from Rs 25290.700 Millions a year earlier. Expenditure, however, went up to Rs 20478.000 Millions from Rs 19546.800 Millions a year earlier.
Higher finance costs and lower income led Bhushan Steel into the red with the
firm reporting Rs 547.900 Millions net loss during the October-December
quarter. The company had clocked a Rs 2212.000 Millions net profit in the
corresponding quarter of the last fiscal, it said in a BSE filing. Income of
the company fell to Rs 24071.600 Millions during the quarter from Rs 25290.700
Millions a year earlier. Expenditure, however, went up to Rs 20478.000 Millions
from Rs 19546.800 Millions a year earlier. Meanwhile, finance costs of the
company also grew to Rs 4320.800 Millions from Rs 2930.100 Millions. Bhushan
Steel said due to explosion during the trial run of the second blast furnace at
its Meramandali plant in Odisha on November 13, 2013, the operation at the
blast furnace has remained suspended, resulting in loss of production.
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.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
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.