MIRA
INFORM REPORT
|
Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
MSP STEEL AND POWER LIMITED |
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Registered
Office : |
1, Crooked Lane, Kolkata – 700 069, |
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Country : |
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Financials (as on)
: |
31.03.2013 |
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Date of
Incorporation : |
18.11.1968 |
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Com. Reg. No.: |
21-027399 |
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Capital
Investment / Paid-up Capital : |
Rs. 968.940
Millions |
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CIN No.: [Company Identification
No.] |
L27109WB1968PLC027399 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALM04906G |
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PAN No.: [Permanent Account No.] |
AACCA2756N |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the manufacture and sale of Iron and Steel
Products and Generation and Sale of Power. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 27000000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record. General financial position of the company seems to be sound and healthy.
Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The company can be considered for business dealings at usual trade
terms and condition. |
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 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: “BBB” |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
17.01.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: “A3+” |
|
Rating Explanation |
Moderate degree of safety and high credit
risk. |
|
Date |
17.01.2014 |
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
31-03-2012.
INFORMATION DECLINED
Management non – cooperative. (Tel. No.: 91-33-40057777)
LOCATIONS
|
Registered Office : |
1, Crooked Lane, Kolkata – 700 069, West Bengal, India |
|
Tel. No.: |
91-33-22483795 / 4138 |
|
Fax No.: |
91-33 22481738 |
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E-Mail : |
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Website : |
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Corporate Office : |
16/ S, Block 'A' New Alipore, Kolkata - 700 053, West |
|
Tel. No.: |
91-33-24570038/ 24573940/ 40057777 |
|
Fax No.: |
91-33-24582239/ 40057788 |
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E-Mail : |
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Factory : |
P.O. and Village Manuapali, Jamgaon, District – Raigarh, Chattishgarh,
India |
|
Tel. No.: |
91-7762-2644-49/ 51/ 52/ 53 |
|
Fax No.: |
91-7762-264450 |
|
E-Mail : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Puranmal Agrawal |
|
Designation : |
Chairman and Whole-time Director |
|
Qualification: |
B.com |
|
Date of Birth/Age: |
64 Years |
|
Date of Appointment: |
08.07.2012 |
|
|
|
|
Name : |
Mr. Suresh Kumar Agrawal |
|
Designation : |
Managing Director |
|
Qualification: |
B.E. Mechanical |
|
Date of Birth/Age: |
59 Years |
|
Date of Appointment: |
08.07.2012 |
|
|
|
|
Name : |
Mr. Manish Agrawal |
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Designation : |
Non Executive Director |
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|
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|
Name : |
Mr. Saket Agrawal |
|
Designation : |
Non Executive Director |
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Qualification: |
Commerce Graduate and MBA |
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|
|
|
Name : |
Mr. Arvind Kumar Saraf |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Navneet Jagatramka |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Amit Mehta |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Ashok Kumar Soin |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Pinky Gupta |
|
Designation : |
Company Secretary |
|
Qualification: |
B.Com (H), ACS |
|
Experience: |
7 Years (secretarial work and statutory compliance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2303240 |
2.61 |
|
|
61040260 |
69.29 |
|
|
63343500 |
71.90 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
63343500 |
71.90 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
254990 |
0.29 |
|
|
254990 |
0.29 |
|
|
|
|
|
|
17511384 |
19.88 |
|
|
|
|
|
|
4774989 |
5.42 |
|
|
2020731 |
2.29 |
|
|
194406 |
0.22 |
|
|
154175 |
0.17 |
|
|
40231 |
0.05 |
|
|
24501510 |
27.81 |
|
Total Public
shareholding (B) |
24756500 |
28.10 |
|
Total (A)+(B) |
88100000 |
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) |
88100000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacture and sale of Iron and Steel
Products and Generation and Sale of Power. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of India ·
ING Vysya Bank ·
Andhra Bank ·
UCO Bank ·
Indian Overseas Bank ·
State Bank of Mysore ·
Allahabad Bank ·
State Bank of Bikaner and Jaipur ·
Corporation Bank ·
DBS Bank Limited ·
ICICI Bank Limited ·
Union Bank of India ·
Dena Bank ·
Oriental Bank of Commerce |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B. Chhawcharia and Company Chartered Accountants |
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|
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Jointly Controlled Entity: |
·
Madanpur South Coal Company Limited |
|
|
|
|
Subsidiary Company: |
·
MSP Group International Singapore (PTE) Limited ·
AA ESS TradeLinks
Private Limited (effective from 8th July, 2011) ·
MSP Cement Limited
(effective from 31st August, 2011) |
|
|
|
|
Enterprises over which Key Management Personnel and / or their
Relatives have significant influence: |
· Adhunik Gases Limited · Ashirwad Steels and Industries Limited · B.S. Confin Private Limited · Chaman Metallics Limited · Danta Vyappar Kendra Limited · Dexo Trading Private Limited · Dhanrashi Developers Consultants Private Limited · Emerald Tradelink Private Limited · Gajgamini Vinimay Private Limited · High Time Holding Private Limited · Howrah Gases Limited · Ilex Private Limited · K.C.Texofine Private Limited · K P J Concast Limited · Larigo Investment Private Limited · MSP Infotech Private Limited · MSP Metallics Limited · MSP Mines and Minerals Limited · MSP Power Limited · MSP Properties (India) Limited · MSP Sponge Iron Limited · MSP Energy Limited · MSP Ferro and Power Limited · Prateek Mines and Minerals Private Limited · Raj Securities Limited · Rajnath Vyapaar Private Limited · Rama Alloys Private Limited · Shree Khatupati Mercantiles Private Limited · Sidhsilver Infra Properties Private Limited · Sikhar Commotrade Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
102000000 |
Equity Shares |
Rs.10/- each |
Rs. 1020.000 Millions |
|
15000000 |
6% Non Cumulative Preference Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
Total |
|
Rs. 1170.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88100000 |
Equity Shares |
Rs.10/- each |
Rs.881.000
Millions |
|
8794000 |
6% Non Cumulative Preference Shares |
Rs.10/- each |
Rs.87.940 Millions |
|
|
Total |
|
Rs.968.940 Millions |
Reconciliation of the
shares outstanding at the beginning and at the end of the year
|
Equity shares |
No. |
Rs. In millions |
|
|
|
|
|
At the beginning of the year |
58,100,000 |
581.000 |
|
Issued during the year |
30,000,000 |
300.000 |
|
Outstanding at the end
of the year |
88,100,000 |
881.000 |
|
Preference shares |
No. |
Rs. In millions |
|
At the beginning of the year |
7,540,000 |
75.400 |
|
Issued during the year |
1,254,000 |
12.540 |
|
Outstanding at the
end of the year |
8,794,000 |
87.940 |
Terms/ rights
attached to equity shares
The Company has only one class of equity shares having a nominal value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2013, dividend of Rs. Nil (31st March, 2012: Rs. 0.25). Has been recognized as proposed distributions to equity shareholders. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
During the year the Company had issued 3,00,00,000 number of equity shares of Rs. 10/- each at a premium of Rs. 50/- per share on preferential basis.
Terms/rights attached
to preference shares
The Company has only one class of preference shares (i.e. 6% non cumulative redeemable preference shares) having a nominal value of Rs. 10/- per share. The preference shareholders shall have the right to vote on any resolution of the Company directly affecting their rights. The Company declares and pays preferential dividends in Indian rupees.
The preference share of the Company are non cumulative in nature and therefore in case the Company does not declare dividend in any particular year, dividend right gets lapsed and is not eligible for carry forward in future years.
During the year ended 31st March, 2013, dividend of Rs. Nil (31st March, 2012: Rs. 0.60) has been recognised as proposed distributions to preference shareholders.
Preference shares are redeemable within 20 years from the date of allotment at a price to be decided by the Board of Directors at the time of redemption.
In the event of liquidation of the Company, the holders of preference shares will be entitled to receive assets of the Company, before its distribution to equity shareholders. The distribution will be in proportion to the number of preference shares held by the preference shareholders.
Details of
shareholders holding more than 5% shares in the company
|
Equity shares of Rs. 10/- each fully paid |
No. |
% holding in the class |
|
MSP Infotech Private Limited |
7,129,760 |
8.09% |
|
MSP Properties (I) Limited |
6,030,500 |
6.85% |
|
Adhunik Gases Limited |
55,54,000 |
6.30% |
|
K. C. Texofine Private Limited |
51,47,000 |
5.84% |
|
Raj Securities Limited |
48,72,000 |
5.53% |
|
Larigo Investment Private Limited |
48,35,000 |
5.49% |
|
Rama Alloys Private Limited |
29,65,000 |
3.37% |
Details of shareholders
holding more than 5% shares in the company
|
Preference shares
of Rs. 10/- each fully paid |
No. |
% holding in the class |
|
Jaik Leasing and Commercial Investment Limited |
1,540,000 |
17.51% |
|
Dexo Trading Private Limited |
1,220,000 |
13.87% |
|
M.A. Hire Purchase Private Limited |
1,105,000 |
12.57% |
|
Sikhar Commotrade Private Limited |
935,000 |
10.63% |
|
Ravi Business Services Private Limited |
760,000 |
8.64% |
|
Shree Vinay Finvest Private Limited |
680,000 |
7.73% |
|
Mod Commodeal Private Limited |
442,000 |
5.03% |
|
Shringar Mercantile Private Limited |
442,000 |
5.03% |
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 |
968.940 |
668.940 |
656.400 |
|
(b) Reserves & Surplus |
4647.214 |
2894.288 |
2543.463 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
1290.000 |
318.100 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
6906.154 |
3881.328 |
3199.863 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5024.423 |
4693.075 |
4414.938 |
|
(b) Deferred tax liabilities (Net) |
481.497 |
380.801 |
333.734 |
|
(c) Other long term liabilities |
16.478 |
29.729 |
13.189 |
|
(d) long-term provisions |
19.050 |
15.898 |
0.000 |
|
Total Non-current Liabilities (3) |
5541.448 |
5119.503 |
4761.861 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3832.497 |
3609.452 |
2356.433 |
|
(b) Trade payables |
1492.133 |
504.652 |
270.082 |
|
(c) Other current liabilities |
1592.529 |
1429.084 |
683.561 |
|
(d) Short-term provisions |
133.193 |
63.131 |
108.750 |
|
Total Current Liabilities (4) |
7050.352 |
5606.319 |
3418.826 |
|
|
|
|
|
|
TOTAL |
19497.954 |
14607.150 |
11380.550 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
8857.963 |
4958.223 |
4999.076 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
1649.672 |
5165.536 |
2935.224 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
325.092 |
324.191 |
69.501 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
675.557 |
306.275 |
690.392 |
|
(e) Other Non-current assets |
205.429 |
151.473 |
7.007 |
|
Total Non-Current Assets |
11713.713 |
10905.698 |
8701.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3075.471 |
2100.776 |
1208.547 |
|
(c) Trade receivables |
1263.307 |
459.853 |
404.040 |
|
(d) Cash and cash equivalents |
70.778 |
72.069 |
96.342 |
|
(e) Short-term loans and advances |
3316.715 |
1012.768 |
965.894 |
|
(f) Other current assets |
57.970 |
55.986 |
4.527 |
|
Total Current Assets |
7784.241 |
3701.452 |
2679.350 |
|
|
|
|
|
|
TOTAL |
19497.954 |
14607.150 |
11380.550 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
9215.618 |
6963.292 |
4793.288 |
|
|
|
Other Income |
59.399 |
52.276 |
341.215 |
|
|
|
TOTAL (A) |
9275.017 |
7015.568 |
5134.503 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and components consumed |
5261.213 |
4280.896 |
3165.718 |
|
|
|
Purchase of traded goods |
840.281 |
579.644 |
349.133 |
|
|
|
Changes in inventories of finished goods, work-in-progress and traded goods |
(83.534) |
(180.079) |
(383.557) |
|
|
|
Employee benefits expenses |
250.248 |
184.049 |
153.372 |
|
|
|
Other expenses |
1337.006 |
937.421 |
748.920 |
|
|
|
Prior period expenses |
0.000 |
0.000 |
1.572 |
|
|
|
TOTAL (B) |
7605.214 |
5801.931 |
4035.158 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1669.803 |
1213.637 |
1099.345 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
905.063 |
585.913 |
193.290 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
764.740 |
627.724 |
906.055 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
462.792 |
290.878 |
235.055 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
301.948 |
336.846 |
671.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
100.696 |
76.538 |
168.890 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
201.252 |
260.308 |
502.110 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2097.269 |
1859.304 |
1426.321 |
|
|
Add |
Income tax earlier
year |
54.583 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
2.908 |
22.343 |
69.127 |
|
|
|
BALANCE CARRIED
TO THE B/S |
5350.196 |
2097.269 |
1859.304 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
322.056 |
820.611 |
210.256 |
|
|
TOTAL EARNINGS |
322.056 |
820.611 |
210.256 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
567.756 |
172.831 |
52.689 |
|
|
|
Stores & Spares |
26.944 |
4.874 |
3.643 |
|
|
|
Capital Goods |
0.516 |
77.713 |
254.219 |
|
|
TOTAL IMPORTS |
595.216 |
255.418 |
310.551 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.96 |
4.39 |
8.62 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st
Quarter |
|
Net Sales |
2590.200 |
|
Total Expenditure |
2189.700 |
|
PBIDT |
400.500 |
|
Other Income |
9.000 |
|
Operating Profit |
409.400 |
|
Interest |
254.000 |
|
Exceptional Items |
0.000 |
|
PBDT |
155.400 |
|
Depreciation |
128.800 |
|
Profit Before Tax |
26.600 |
|
Tax |
11.400 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
15.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
15.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.17 |
3.71 |
9.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.28 |
4.83 |
13.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.72 |
3.70 |
8.01 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.09 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.28 |
2.13 |
2.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11 |
0.67 |
0.78 |
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 |
656.400 |
668.940 |
968.940 |
|
Reserves & Surplus |
2,543.463 |
2,894.288 |
4,647.214 |
|
Share Application money
pending allotment |
0.000 |
318.100 |
1290.000 |
|
Net
worth |
3,199.863 |
3,881.328 |
6,906.154 |
|
|
|
|
|
|
long-term borrowings |
4,414.938 |
4,693.075 |
5,024.423 |
|
Short term borrowings |
2,356.433 |
3,609.452 |
3,832.497 |
|
Total
borrowings |
6,771.371 |
8,302.527 |
8,856.920 |
|
Debt/Equity
ratio |
2.116 |
2.139 |
1.282 |
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 |
4,793.288 |
6,963.292 |
9,215.618 |
|
|
|
45.272 |
32.346 |
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 |
4,793.288 |
6,963.292 |
9,215.618 |
|
Profit |
502.110 |
260.308 |
201.252 |
|
|
10.48% |
3.74% |
2.18% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Inter Corporate Deposits |
389.800 |
69.500 |
|
Loans and Advances from related parties |
197.117 |
2.500 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Working Capital loan |
0.000 |
290.000 |
|
Inter Corporate Deposits |
21.500 |
104.542 |
|
|
|
|
|
Total |
608.417 |
466.542 |
EXPANSION PROJECT
The Management with a view to Modernise and Expand the existing facilities at its plant at Raigarh, has decided to take up a new project which includes setting up of one new Induction Furnace, Brick Making Plant, Expansion of Rolling and Structural Rolling Mill, Setting up of hot billet charging system in Rolling and Structural Rolling Mill and some other modifications. With the above the capacity of rolling mill will increase and which running at its full capacity, the Company will save substantial cost in manufacture of TMT Bars.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDIAN ECONOMIC
SCENARIO
The financial year 2012-13 turned out to be a challenging one for the Indian economy. Global issues, such as Eurozone’s debt worries, slowdown in the emerging economies and the US fiscal cliff affected the economic scenario. Domestic issues in the form of burgeoning fiscal deficit, slowdown in GDP growth and high inflation added to the woes of the Indian economy. However, modest recovery seems to be on the cards driven by the following factors:
· Monthly wholesale inflation cooled off from high levels of 8% during 2012-13 to below 5% in early 2013-14
· Fiscal deficit decreased from 5.76% of GDP in 2011-12 to 4.89% of GDP in 2012-13. The Government is targeting to bring it down to 3% of GDP by 2016-17
· Reduction in repo rate thrice and cash reserve ratio once till June, 2013 are likely to augment growth in the Indian economy
GLOBAL STEEL INDUSTRY
The global steel industry experienced a challenging year in 2012-13. The industry was primarily impacted by the Eurozone debt crisis, which lingered for a major part of the year. Moreover, the steel demand in the emerging economies failed to reach expected levels.
Global steel production witnessed record high levels of 1,548 million tonnes (MT) in 2012, indicating resilience amid a challenging environment. During the last financial year, steel demand increased and older steelmaking capacities were removed. However, there was excess capacity owing to continued growth in new steelmaking facilities, especially in developing economies.
Sluggish demand, excess steelmaking capacity and price volatility of raw materials will together challenge the sustainability of high-cost producers. Going forward, it is expected that increase in steel demand, better utilisation rates and closure of high-cost steelmaking capacities will lead to improved profitability. The global steel demand is likely to grow by 2.9% in 2013 and increase to 3.2% to reach 1,500 MT in 2014.
INDIAN STEEL INDUSTRY
India, currently the world’s fourth largest crude steel producer, is expected to become the second largest in terms of crude steel production by 2015-16. India’s steel industry contributes around 2% of the country’s GDP, with steel having direct linkages with important sectors of the economy. India is also the world’s largest producer of sponge iron with a host of coal-based units located in its mineral-rich states.
India occupies a central position in the global steel map with its giant steel mills, acquisition of global scale capacities by its players, continuous modernisation and up-gradation of old plants. Besides, the country is also experiencing improving energy efficiency and backward integration into global raw material sources.
BUSINESS OVERVIEW
PERFORMANCE REVIEW OF
THE COMPANY
The Company is engaged in steel business, which, in context of Accounting Standard (AS -17) issued by the Institute of the Chartered Accountants of India, is considered to be the only business segment. The Company’s overall operational performance has been satisfactory during the year. Its brief financial performance for 2012-13 is given below:
PELLET PLANT
The Company’s pellet production increased from 271118 MT during 2011-12 to 504015 MT in 2012-13.
SPONGE IRON PLANT
Sponge iron production by the Company increased from 195595 MT in 2011-12 to 206619 MT in 2012-13.
POWER GENERATION
The Company produced 418747163 KWH of total power, as compared to 269777140 KWH during the last year.
INGOT/BILLETS
The production of Ingot/billets, which amounted to 143371 MT in 2011-13, touched 175110 MT in 2012-13.
TMT BARS
TMT bar production for 2012-13 was 84173 MT, as compared to 75693 MT during last year.
STRUCTURAL ROLLING
MILL
The production of structural steel increased from 49501 MT in 2011-12 to 39723 MT in 2012-13.
In view of the global economic slowdown, MSP is focusing on innovation to ensure sustainability. The result is the installation of the 9 MTPA pellet plant, which helped the Company gain a first-mover advantage in pelletisation. The plant enables the Company to use extra-fine iron ore as the feed after beneficiation rather than scarce lumps. This helps to improve blast furnace productivity by increasing the percentage of agglomerate in the Blast Furnace burden.
FINANCIAL MANAGEMENT
The senior management personnel periodically monitors the capital budgeting and subsequent progress of the under-implementation projects. The projects are funded by borrowing from a consortium of banks at competitive rates; the balance is covered by internal accruals and promoter contribution. During the year, the Company issued 30000000 equity shares of Rs. 10 each at a premium of Rs. 50 per share on a preferential basis.
The Company’s well-trained and highly efficient professionals are responsible for overseeing factory operations as well as the functions of the accounting and finance department. The team ensures that the established organisational procedures laid down by the senior management at a strategic level are followed and translated even in financial results and periodic management reports. Regular audits are conducted to ensure that the proper controls are in place.
FINANCIAL PERFORMANCE
During 2012-13, the Company performed satisfactorily, commissioning its 0.600 millions MTPA pellet plant, 34 MW power plant and 3.3 MTPA coal washery. Going forward, the Company expects that revenues from the newly commissioned projects to increase. Besides, incremental capacity utilisations from other existing projects are also likely to help improve the revenues and EBITDA margins in the years to come.
UNAUDITED FINANCIAL
RESULTS FOR THE PERIOD ENDED 31ST DECEMBER 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
Quarter
Ended |
Nine
months Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
|
|
|
|
|
1 |
Net Sales/Income from Operations |
3236.652 |
2709.222 |
8684.254 |
|
|
Less: Excise Duty |
300.561 |
282.732 |
856.841 |
|
|
Income from operations |
2936.091 |
2426.490 |
7827.413 |
|
|
Other operating income |
98.872 |
69.757 |
293.963 |
|
|
Total Income |
3034.963 |
2496.247 |
8121.376 |
|
|
|
|
|
|
|
2 |
Expenditure |
|
|
|
|
|
Cost of materials consumed |
3071.734 |
2020.280 |
6849.833 |
|
|
Purchase of stock in trade |
304.817 |
0.000 |
368.686 |
|
|
(Increase)/ Decrease in inventories of finished goods,
work in progress and stock in trade |
(912.197) |
(250.081) |
(1176.791) |
|
|
Employee benefits expenses |
72.788 |
76.963 |
219.913 |
|
|
Depreciation and amortization expenses |
180.807 |
130.272 |
389.400 |
|
|
Other expenses |
282.546 |
328.808 |
923.708 |
|
|
Total Expenses |
2949.994 |
2306.242 |
7574.748 |
|
|
|
|
|
|
|
3 |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
84.968 |
190.005 |
546.627 |
|
4 |
Other Income |
212.368 |
110.548 |
331.885 |
|
5 |
Profit
from Ordinary Activities before Finance Cost and Exceptional Items (3+4) |
297.336 |
300.553 |
878.512 |
|
6 |
Finance Cost |
285.283 |
250.403 |
789.662 |
|
7 |
Profit
From Operations after Other Income, Interest and Exceptional Items (5-6) |
12.073 |
50.150 |
88.850 |
|
8 |
Exceptional Items |
|
|
|
|
9 |
Profit
before Tax (7+8) |
12.073 |
50.150 |
88.850 |
|
10 |
Tax Expense |
|
|
|
|
|
Current tax |
2.658 |
10.971 |
19.210 |
|
|
Mat Credit Entitlement |
(2.531) |
(10.509) |
(18.619) |
|
|
Deferred Tax Change |
2.311 |
16.246 |
29.991 |
|
11 |
Net
Profit Period (9-10) |
9.634 |
33.442 |
58.269 |
|
12 |
Paid-up Equity Share Capital |
881.000 |
881.000 |
881.000 |
|
|
(Face Value of Re. 1/- Each) |
|
|
|
|
13 |
Reserves Excluding Revaluation Reserve |
NA |
NA |
NA |
|
|
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not
Annualised |
|
|
|
|
|
a) Basic |
0.11 |
0.55 |
0.66 |
|
|
b) Diluted |
0.11 |
0.55 |
0.66 |
|
|
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
-Number of Shares |
24756500 |
24756500 |
24756500 |
|
|
- Percentage of Shareholding |
28.10% |
28.10% |
28.10% |
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
NIL |
NIL |
NIL |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
NIL |
NIL |
NIL |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
NIL |
NIL |
NIL |
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
63343500 |
63343500 |
63343500 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
71.90% |
71.90% |
71.90% |
|
|
Particulars |
31.12.2013 |
|
|
Investor Complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
04 |
|
|
Disposed during the quarter |
04 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Note:
The Company has only one business segment namely "Iron & Steel".
There were no exceptional /extraordinary items during the respective periods
reported above.
EPS for the quarter is not annualised.
The above unaudited financial results were reviewed by the Audit Committee and
approved by the Board of Directors at their respective meetings held on
February 14, 2014.
Previous period figures have been regrouped / rearranged wherever considered
necessary.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10444842 |
16/07/2013 |
160,000,000.00 |
STATE BANK OF BIKANER AND JAIPUR |
BALLYGUNGE BRANCH, 204, RASHBEHARI AVENUE, KOLKATA, WEST BENGAL - 700029, INDIA |
B82994112 |
|
2 |
10410324 |
01/03/2013 |
500,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 1/1, CAMAC STREET, 1ST |
B70269584 |
|
3 |
10380159 |
11/09/2012 |
4,485,000.00 |
TATA CAPITAL FINANCIAL SERVICES LIMITED |
ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
B59535740 |
|
4 |
10347495 |
10/04/2012 |
550,000,000.00 |
ORIENTAL BANK OF COMMERCE |
PARK STREET BRANCH, 107/1, PARK STREET (1ST FLOOR), KOLKATA, WEST BENGAL - 700016, INDIA |
B36950814 |
|
5 |
10345761 |
27/02/2012 |
200,000,000.00 |
DENA BANK |
CORPORATE BUSINESS BRANCH, 238B, AJC BOSE ROAD, KOLKATA, WEST BENGAL - 700020, INDIA |
B36374353 |
|
6 |
10338265 |
30/01/2012 |
100,000,000.00 |
ING VYSYA BANK LIMITED |
4/1,MIDDLETON STREET, SIKKIM HOUSE, KOLKATA, WEST BENGAL - 700071, INDIA |
B33271073 |
|
7 |
10338069 |
17/01/2012 |
550,000,000.00 |
ORIENTAL BANK OF COMMERCE |
PARK STREET BRANCH, 107/1, PARK STREET (1ST FLOOR), KOLKATA, WEST BENGAL - 700016, INDIA |
B33172735 |
|
8 |
10319816 |
07/08/2012 * |
7,334,000,000.00 |
STATE BANK OF INDIA (LEAD BANK) |
COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA |
B56268691 |
|
9 |
10324821 |
22/11/2011 |
700,000,000.00 |
DBS BANK LIMITED |
5TH FLOOR, FORT HOUSE, 221, DR. D N ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
B28445468 |
|
10 |
10289803 |
28/04/2011 |
215,000,000.00 |
CORPORATION BANK |
CORPORATE BANKING BRANCH, MOOKHERJEE HOUSE,1ST FLOOR,17, BRABOURNE ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
B14135164 |
|
11 |
10256181 |
30/12/2010 |
500,000,000.00 |
UCO BANK |
MID CORPORATE BRANCH, 10, B.T.M. SARANI (BRABOURNE ROAD), KOLKATA, WEST BENGAL - 700001, INDIA |
B01989391 |
|
12 |
10266766 |
09/03/2011 * |
480,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B07749005 |
|
13 |
10247651 |
19/10/2010 |
1,500,000,000.00 |
UNION BANK OF INDIA (LEAD BANK) |
INDUSTRIAL FINANCE BRANCH, 1/1, CAMAC STREET, 1ST |
A98025836 |
|
14 |
10226669 |
18/04/2013 * |
12,604,900,000.00 |
ALLAHABAD BANK (TITLE DEED HOLDER) |
STEPHEN HOUSE BRANCH, 4, B. B. D BAG (EAST), KOLK |
B74476490 |
|
15 |
10226668 |
05/06/2010 |
1,200,000,000.00 |
ALLAHABAD BANK (LEAD BANK) |
STEPHEN HOUSE BRANCH, 4, B. B. D BAG (EAST), KOLK |
A88565239 |
|
16 |
10172069 |
20/08/2009 |
300,000,000.00 |
ORIENTAL BANK OF COMMERCE |
PARK STREET BRANCH, 107/1, PARK STREET (1ST FLOOR), KOLKATA, WEST BENGAL - 700016, INDIA |
A68411008 |
|
17 |
10168491 |
12/06/2009 |
300,000,000.00 |
ALLAHABAD BANK |
STEPHEN HOUSE BRANCH, 4, B. B. DBAG (EAST), KOLKATA, WEST BENGAL - 700001, INDIA |
A66661786 |
|
18 |
10162974 |
29/03/2010 * |
130,000,000.00 |
ANDHRA BANK |
CHOWRINGHEE BRANCH, 58, CHOWRINGHEE ROAD, KOLKATA, WEST BENGAL - 700071, INDIA |
A83161398 |
|
19 |
10106994 |
08/05/2008 |
6,884,000.00 |
SREI INFRASTRUCTURE FINANCE LIMITED |
VISHWAKARMA,86C,TOPSIA ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA |
A38603031 |
|
20 |
10119208 |
26/02/2008 |
50,000,000.00 |
ANDHRA BANK |
CHOWRINGHEE BRANCH, 58 ,CHOWRINGHEE ROAD, KOLKATA, WEST BENGAL - 700071, INDIA |
A36876894 |
* Date of charge modification
FIXED ASSETS:
- Land
- Factory Buildings
- Non Factory Buildings
- Plant and Machinery
- Vehicles
- Furniture and Fixtures
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. 60.05 |
|
|
1 |
Rs. 101.65 |
|
Euro |
1 |
Rs. 83.07 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
48 |
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.