IRA INFORM REPORT

 

 

Report No. :

320446

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

JAI BALAJI INDUSTRIES LIMITED (w.e.f. 23.07.2007)

 

 

Formerly Known As :

JAI BALAJI SPONGE LIMITED

 

 

Registered Office :

5, Bentinck Street, Kolkata – 700001, West Bengal

Tel No.:

91-33-22488173

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.07.1999

 

 

Com. Reg. No.:

21-089755

 

 

Capital Investment / Paid-up Capital :

Rs.672.726 Million

 

 

CIN No.:

[Company Identification No.]

L27102WB1999PLC089755

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Public Limited Liability Company. Company’s Shares are listed on the stock Exchanges

 

 

Line of Business :

Subject is engaged in the Manufacturing and Sale of Steel and Allied Products.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (14)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

The company is continuously incurring losses from its operation activities. External borrowing of the company is huge which act as a threat to liquidity position of the company. 

 

Rating also takes into consideration the delay by the company in servicing its debt. 

 

However, business is active. Payment terms are slow and delayed.

 

The company can be considered for business dealing on a safe and secured 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank Facilities: D

Rating Explanation

Lowest credit quality and very low prospects of recovery.

Date

31.03.2015

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

INFORMATION DECLINED

 

MANAGEMENT NON – COOPERATIVE (91-33-22488173)

 

LOCATIONS

 

Registered Office :

5, Bentinck Street, Kolkata – 700001, West Bengal, India

Tel. No.:

91-33-22488173/9808

Fax No.:

91-33-22430021

E-Mail :

info@jaibalajigroup.com

atantia@aibalajigroup.com

Website :

http://www.jaibalajigroup.com

 

 

Factory 1:

Ranigunj G/1, Mangalpur Industrial Complex, Post– Baktarnagar, District : Burdwan-713347, West Bengal, India

Tel. No.:

91-341-2441544 / 9403

Fax No.:

91-341-2441544 / 9403

 

 

Factory 2:

Durgapur, Lenin Sarani, District Burdwan-713210,West Bengal, India

Tel. No.:

91-343-2553884/ 3885

Fax No.:

91-343-2553884/ 3885

 

 

Factory 3 and 4 :

Durgapur, Village Banskopa, P.O. Rajbandh, District- Burdwan-713212, West Bengal, India

Tel. No.:

91-343-2532651 / 2652

Fax No.:

91-343-2532653

 

 

Factory 5:

Industrial Growth, Centre, Borai Village and P.O. Rasmada, District Durg-491009 Chhattisgarh, India

Tel. No.:

91-788-2617218 / 2617248

Fax No.:

91-788-2617201

 

 

Marketing Office:

Located At:

 

  • Mumbai
  • Kolkata
  • New Delhi
  • Hyderabad
  • Chhattisgarh

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Aditya Jajodia

Designation :

Chairman cum Managing Director

 

 

Name :

Mr. Rajiv Jajodia

Designation :

Director

 

 

Name :

Mr. Gourav Jajodia

Designation :

Director

 

 

Name :

Mr. Chandra Kant Bhartia

Designation :

Director

 

 

Name :

Mr. Shyam Bahadur Singh

Designation :

Director

 

 

Name :

Mr. Satish Chander Gupta

Designation :

Director

 

 

Name :

Mr. Shailendra Kumar Majumdar

Designation :

Director

 

 

Name :

Mr. Amit Kumar Majumdar

Designation :

Director

 

 

Name :

Mr. Sanjiv Jajodia

Designation :

Whole Time Director

 

 

Name :

Mr. Manas Kumar Nag

Designation :

Nominee Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajay Kumar Tantia

Designation :

Company Secretary and Compliance Officer

 

 

Name :

Mr. Sanjiv Jajodia

Designation :

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

Total No. of Shares

% of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

9972472

13.52

http://www.bseindia.com/include/images/clear.gifBodies Corporate

33290723

45.12

http://www.bseindia.com/include/images/clear.gifSub Total

43263195

58.64

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

43263195

58.64

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

3023333

4.10

http://www.bseindia.com/include/images/clear.gifSub Total

3023333

4.10

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

8882068

12.04

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

3497246

4.74

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

6344112

8.60

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

8771532

11.89

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

8304547

11.26

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

460564

0.62

http://www.bseindia.com/include/images/clear.gifTrusts

1

0.00

http://www.bseindia.com/include/images/clear.gifClearing Members

6420

0.01

http://www.bseindia.com/include/images/clear.gifSub Total

27494958

37.27

Total Public shareholding (B)

30518291

41.36

Total (A)+(B)

73781486

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

73781486

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the Manufacturing and Sale of Steel and Allied Products.

 

 

Products :

Item Code No. (ITC Code)

Product Description

72031000

Sponge Iron

72061009

Steel Ingots

72141090

Steel Bars/Rods

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS (As on 31.03.2013)

 

Particulars

Installed Capacity

[MT]

Actual Production

MT] #

Sponge Iron

345000

136419

Pig Iron

509250

208010

Steel Bars / Rods

260000

60518

Billet / MS Ingot

906230

262920

Ferro Alloys

106618

29305

Ductile Iron Pipe

240000

41449

Power

101.10

[MW]

217.48

[MU]

Sinter

608000

382223

Coke

350000

100056

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :
  • Allahabad Bank
  • Axis Bank Limited
  • Bank of India
  • Canara Bank
  • Corporation Bank
  • ICICI Bank Limited
  • IDBI Bank Limited
  • IFCI Limited
  • Indian Overseas Bank
  • Oriental Bank of Commerce
  • Punjab National Bank
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Travancore
  • The Federal Bank Limited
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank
  • West Bengal Infrastructure
  • Development Finance Corporation Limited

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG TERM BORROWINGS

 

 

Term Loans

 

 

Rupee Loan from banks

15542.956

16744.331

Rupee Loan from Financial Institutions

424.651

527.155

Rupee Loan from Others

0.000

14.158

Deferred Payments Liabilities

0.000

1.191

 

 

 

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand

 

 

Cash Credit from Banks

7016.466

5243.426

Total

22984.073

22530.261

NOTES:

 

LONG TERM BORROWINGS

 

1) Rupee Loan from banks and Financial Institution

 

a) Rupee Term Loan from banks and financial institution are secured by pari- passu 1st charge over the entire fixed assets (both present and future) and 2nd charge over the entire current assets (both present and future) of the Company's units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh. The above loan are further secured as follows.

 

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Corporate Guarantee of M/s Shri Marutaye Balaji Steels Limited, a promoter group company.

(iii) Pledge of 100% of the promoters share of M/s. Shri Marutaye Balaji Steels Limited.

(iv) Pledge of equity shares of the Company held by the promoters.

 

b) Rupee Term Loan from banks and financial institution carry interest as follows:

(i) term loan and working capital term loan aggregating Rs.16070.433 Million at base rate of individual lenders plus spread, where spread is computed as difference between 11.75% p.a. and base rate of the individual lenders as on 16th June 2012. (ii) funded interest term loan aggregating Rs.2002.286 Million at base rate of lead banker (UCO Bank).

 

c) The above loans are repayable as under from the balance sheet date :

 

Payment Terms

32 structured quarterly installments starting from April 2014

Installments Due

Number

Rs In Million

(i) Within 1 year

4

2121.538

(ii) One year to three year

8

4506.143

(iii) Three year to five year

8

4907.310

(iv) More than five year

12

6537.728

Total

32

18072.719

 

 

2) Rupee Term Loan from a Financial Institution aggregating ` 3921.58 lacs carry interest in the range of 14.50% - 15% p.a. and is repayable in 4 equal quarterly installments starting from April, 2014. The loan is secured by Bank Guarantee , pledge of certain promoter's shareholdings in the Company and personal guarantees of certain promoter directors

.

3) Rupee Term Loan from others carry interest in the range of 13.65% - 14% p.a. and is repayable in 34 monthly installments starting from August 2011. The loan is secured by exclusive charge over the assets acquired under respective loan agreements and personal guarantee of certain promoter directors of the Company.

4) Deferred Payment Liabilities carry interest rate of 9.40% to 10.43% and are repayable in 36 / 42 equal monthly installments from the date of disbursement of the loan amounts. These loans are secured by hypothecation of respective assets acquired there from.

 

5) Sales tax loan from Government of Chattisgarh is interest free and is repayable in 12 yearly installments starting from 31st March, 2002

 

6) Interest free loan has been received from a promoter group company as per the CDR scheme.

 

7) The company has defaulted in repayment of loans and interest in respect of the following:-

 

Particulars

Principal

(Rs. In Million)

Interest

(Rs. In Million)

In respect of Banks

 

 

April 2013 to March 2014

61.472

556.640

In respect of Financial Institutions

 

 

- April 2013 to March 2014

150.830

69.357

 

 

SHORT TERM BORROWINGS

 

Cash Credit facilities from banks are secured by pari- passu 1st charge over the entire current assets (both present and future) and 2nd charge over the entire fixed assets (both present and future) of the Company's units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh. The above facilities are further secured as follows.

 

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Corporate Guarantee of M/s Shri Marutaye Balaji Steels Limited, a promoter group company.

(iii) Pledge of 100% of the promoters share of M/s. Shri Marutaye Balaji Steels Limited.

(iv) Pledge of equity shares of the Company held by the promoters.

 

Banking Relations :

--

 

 

Joint Statutory Auditors :

 

Name :

S. K. Agrawal and Company

Chartered Accountant

Address :

4A, Council House Street, Kolkata – 700 001, West Bengal, India

 

 

Internal Auditors :

 

Name :

Esskay Professional Private Limited

Chartered Accountant

 

322, Martin Burn House, 1,R.N. Mukherjee Road, Kolkata – 700001, West Bengal, India 

 

 

Cost Auditors :

 

Name :

Mondal and Associates

Cost Accountant

Address:

45, Akhil Mistry Lane, Kolkata - 700 009, West Bengal, India 

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiary Companies:
  • Nilachal Iron and Power Limited (NIPL)
  • Jai Balaji Steels (Purulia) Limited (JBSPL)
  • Jai Balaji Energy (Purulia) Limited (JBEPL)

 

 

Joint Venture Companies:
  • Rohne Coal Company Private Limited (RCCPL)
  • Andal East Coal Company Private Limited (AECCPL)

 

 

Enterprises owned or  significantly influenced by key management personnel or their relatives:
  • Chandi Steel Industries Limited (CSIL)
  • Jai Balaji Jyoti Steels Limited (JBJSL)
  • Jai Salasar Balaji Industries Private Limited (JSBIPL)
  • Balaji Ispat Udyog (BIU)
  • Enfield Suppliers Limited (ESL)
  • Hari Management Limited (HML)
  • Jajodia Estate Private Limited (JEPL)
  • Shri Marutaye Balaji Steels Limited (SMBSL)

 

 

CAPITAL STRUCTURE

 

As on 27.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

101000000

Equity Shares

Rs.10/- each

Rs. 1010.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

73781486

Equity Shares

Rs.10/- each

Rs. 737.815 Million

 

 

 

 

 

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

101000000

Equity Shares

Rs.10/- each

Rs.1010.000 Million

 

 

 

 

 

Total

 

Rs.1010.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

67276486

Equity Shares

Rs.10/- each

Rs.672.765 Million

 

Less: Calls unpaid (Due from other than directors or officers)

 

Rs.0.039 Million

 

 

 

 

 

Total

 

Rs.672.726 Million

 

 

(a)   Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

 

Particulars

31.03.2014

Equity Shares of Rs.10/- each

No. of Shares

Rs. In Million

At the beginning of the period

63781486

637.776

Issued during the period

3495000

34.950

Call money received during the period

--

--

At the end of the period

67276486

672.726

 

(b)   Terms/rights attached to equity shares

 

The Company has only one class of ordinary shares (equity shares) having at par value of ` 10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share .The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the share holders in the ensuing annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts, in the proportions to their share holdings.

 

(c)   Lock - in of shares

 

The Equity shares are allotted pursuant to part conversion of warrants issued to promoter group companies and are under lock-in for a period of one year from the date of allotment (5th August, 2013).

 

(d)   Details of shareholders holding more than 5% shares in the Company

 

Particulars

31.03.2014

 

No. of Shares

% holding in the class

Enfield Suppliers Limited

13121233

19.50

Hari Management Limited

8639533

12.84

Client Rosehill Limited

3886734

5.78

Aditya Jajodia

3674576

5.46

Total

29322076

43.58

 

As per of the Company, including its register of shareholders/members, the above share holdings represents legal ownership of shares.

 

(e)   Money received against share warrants:

 

On 4th July,2013 the company alloted 10,000,000 convertible warrants at a price of Rs. 50/- per warrant, which was a price greater than the price determined as per clause 76(1) of Chapter VII of SEBI(ICDR) Regulations,2009 to two Promoter group companies, viz M/s Enfield Suppliers Limited and M/s Hari Management Limited on a preferential basis on such terms and conditions as contained in Special Resolution passed by the company at its Annual General Meeting held on 18th December, 2012.Each warrant was convertible into one equity share of Rs. 10/- each within 18 months from the date of such issue at the option of the Allottees.

 

On 5th August, 2013 the said warrants were partly converted into 3,495,000 equity shares of the Company, the balance 6,505,000 warrants shall be converted in due course subject to application for the same being received from the allotee.

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

(12 Months)

31.03.2013

(12 Months)

30.06.2012 (15 Months)

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

672.726

637.776

637.711

(b) Reserves & Surplus

1161.237

4210.952

6342.230

(c) Equity share warrants

325.250

0.000

0.000

(d) Money received against share warrants

0.000

250.925

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

2159.213

5099.653

6979.941

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

15967.607

17286.835

4921.908

(b) Deferred tax liabilities (Net)

0.000

0.000

183.052

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

15967.607

17286.835

5104.960

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

7115.691

5243.426

11582.587

(b) Trade payables

9139.906

9365.262

7934.794

(c) Other current liabilities

5647.747

2949.031

7407.733

(d) Short-term provisions

45.048

65.004

45.502

Total Current Liabilities (4)

21948.392

17622.723

26970.616

 

 

 

 

TOTAL

40075.212

40009.211

39055.517

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

18356.384

19687.857

15508.056

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

1120.725

1118.150

5846.512

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

809.710

809.710

809.560

(c) Deferred tax assets (net)

1816.385

845.589

0.000

(d)  Long-term Loan and Advances

1184.980

1157.751

1209.671

(e) Other Non-current assets

64.485

117.132

11.441

Total Non-Current Assets

23352.669

23736.189

23385.240

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

5093.319

5943.470

8089.403

(c) Trade receivables

7910.910

6922.061

4868.499

(d) Cash and cash equivalents

247.650

395.732

209.306

(e) Short-term loans and advances

2078.250

1851.816

1557.348

(f) Other current assets

1392.414

1159.943

945.721

Total Current Assets

16722.543

16273.022

15670.277

 

 

 

 

TOTAL

40075.212

40009.211

39055.517

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

(12 Months)

31.03.2013

(12 Months)

30.06.2012 (15 Months)

 

SALES

 

 

 

 

 

Income

19681.013

15448.375

29332.312

 

 

Other Income

226.827

217.387

257.809

 

 

TOTAL                                    

19907.840

15665.762

29590.121

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

12976.747

10621.026

23451.274

 

 

Purchases of Stock-in-Trade

1964.444

15.572

12.662

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

74.181

1508.513

(1381.649)

 

 

Employees benefits expense

590.018

493.610

731.006

 

 

Other expenses

3768.988

3561.075

6077.674

 

 

TOTAL                                    

19374.378

16199.796

28890.967

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

533.462

(534.034)

699.154

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

3363.648

1764.470

3199.968

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(2830.186)

(2298.504)

(2500.814)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

1357.221

861.267

1387.594

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(4187.407)

(3159.771)

(3888.408)

 

 

 

 

 

Less

TAX                                                                 

(997.892)

(1028.493)

(1127.846)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(3189.515)

(2131.278)

(2760.562)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2504.148)

(372.870)

2387.692

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(5693.663)

(2504.148)

(372.870)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

71.721

68.818

454.075

 

TOTAL EARNINGS

71.721

68.818

454.075

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2705.813

2182.011

700.493

 

 

Stores & Spares

110.774

75.498

167.735

 

 

Capital Goods

15.966

0.000

859.195

 

TOTAL IMPORTS

2832.553

2257.509

1727.423

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(48.27)

(33.42)

(43.28)

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2014

1st Quarter

30.09.2014

2nd Quarter

31.12.2014

3rd Quarter

Audited / UnAudited

UnAudited

UnAudited

UnAudited

Net Sales

3410.400

3555.300

3822.200

Total Expenditure

3336.200

3599.200

3779.600

PBIDT (Excl OI)

74.200

(43.800)

42.600

Other Income

199.300

64.100

38.200

Operating Profit

273.500

20.300

80.800

Interest

868.400

935.600

969.300

Exceptional Items

0.000

0.000

(29.800)

PBDT

(594.900)

(915.300)

(918.300)

Depreciation

311.100

340.000

316.300

Profit Before Tax

(906.000)

(1255.300)

(1234.600)

Tax

(307.200)

(425.900)

(419.900)

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

(598.900)

(829.400)

(814.700)

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

(598.900)

(829.400)

(814.700)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

(12 Months)

31.03.2013

(12 Months)

30.06.2012 (15 Months)

Net Profit Margin

(PAT/Sales)

(%)

(16.21)

(13.80)

(9.41)

 

 

 

 

 

Operating Profit Margin

(PBDIT/ Sales)

(%)

2.71

(3.46)

2.38

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(11.53)

(8.49)

(12.00)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.94)

(0.62)

(0.56)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

10.69

4.42

2.36

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.76

0.92

0.58

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

30.06.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

637.711

637.776

672.726

Reserves & Surplus

6342.230

4210.952

1161.237

Equity share warrants

0.000

0.000

325.250

Money received against share warrants

0.000

250.925

0.000

Net worth

6979.941

5099.653

2159.213

 

 

 

 

long-term borrowings

4921.908

17286.835

15967.607

Short term borrowings

11582.587

5243.426

7115.691

Total borrowings

16504.495

22530.261

23083.298

Debt/Equity ratio

2.365

4.418

10.691

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

30.06.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

29332.312

15448.375

19681.013

 

 

(47.333)

27.399

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

30.06.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

29332.312

15448.375

19681.013

Profit

(2760.562)

(2131.278)

(3189.515)

 

(9.41%)

(13.80%)

(16.21%)

 

 

 

 

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

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

 

CALCUTTA HIGH COURT

 

CASE STATUS INFORMATION SYSTEM

 

Case Status : Pending

 

Status of  Temp APO (APOT) 253 of 2014

 

Krishna Coke (India) Private Limited Vs. Jai Balaji Industries Limited

 

Pet’s Adv: A P Agarwalla  

 

Res Adv:

 

Court No.: 0 Last Listed No : No date Mentioned

 

Category: Money Claims/Compensation/Damages/Mesne Profits

 

CONNECTED APPLICATION (S)

 CONNECTED MATTER (S)

No Connected Application

No Connected Cases

 

Case Update on : Tuesday, April 24, 2012 

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand

 

 

From Bodies Corporate

99.225

0.000

 

 

 

Total

99.225

0.000

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10525244

29/09/2014

50,000,000.00

ALLAHABAD BANK

KOLKATA MAIN BRANCH, 2, N.S. ROAD, KOLKATA, WEST
BENGAL - 700001, INDIA

C28950079

2

10525486

27/09/2014

667,100,000.00

INDIAN OVERSEAS BANK

LARGE CORPORATE BRANCH, 21A, SHAKESPEARE SARANI,
KOLKATA, WEST BENGAL - 700017, INDIA

C29365715

3

10526376

27/09/2014

3,270,900,000.00

STATE BANK OF HYDERABAD

COMMERCIAL BRANCH, 83, TOPSIA ROAD, KOLKATA, WEST
BENGAL - 700046, INDIA

C30030183

4

10506775

30/06/2014

3,158,000,000.00

UCO BANK

FALGSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLAC
E, KOLKATA, WEST BENGAL - 700001, INDIA

C09689373

5

10507539

30/06/2014

1,938,800,000.00

ALLAHABAD BANK

KOLKATA MAIN BRANCH, 14, INDIA EXCHANGE PLACE, KO
LKATA, WEST BENGAL - 700001, INDIA

C10182673

6

10485807

20/03/2014

945,000,000.00

UCO BANK (LEAD BANK) & OTHERS

FLAGSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLAC
E, KOLKATA, WEST BENGAL - 700001, INDIA

C00813428

7

10470238

16/12/2013

65,200,000.00

INDIAN OVERSEAS BANK

LARGE CORPORATE BRANCH, 21A, SHAKESPEARE SARANI,
KOLKATA, WEST BENGAL - 700017, INDIA

B93517977

8

10466278

14/12/2013

753,600,000.00

AXIS BANK LIMITED

CORPORATE BANKING BRANCH (CBB),, 1, SHAKESPEARE S
ARANI, AC MARKET, 3RD FLOOR,, KOLKATA, WEST BENGAL
- 700071, INDIA

B92002039

9

10470724

28/11/2013

133,100,000.00

CANARA BANK

PRIME CORPORATE BRANCH, 21 CAMAC STEET, BELLS HOU
SE, GROUND FLOOR, KOLKATA, WEST BENGAL - 700016, I
NDIA

B93715928

10

10465982

25/11/2013

3,747,900,000.00

ALLAHABAD BANK

KOLKATA MAIN BRANCH, 14, INDIA EXCHANGE PLACE, KO
LKATA, WEST BENGAL - 700001, INDIA

B91892083

 

* Date of charge modification

 

FINANCIAL HIGHLIGHTS

 

During the year 2013-14, the Company incurred loss which can be mainly attributable to raw material rice inflation, rising borrowing costs and other global factors. The Loss before exceptional and extraordinary items and tax was Rs.4187.407 Million as compared to loss of Rs.3159.771 Million in the previous year. The net loss for the year (twelve months) was Rs.3189.515 Million against loss after tax of Rs.2131.278 Million in the previous year (nine months).

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE and DEVELOPMENT

 

GLOBAL OVERVIEW

 

The speed and degree of changes in the global economy and the increasingly complex interplay of factors influencing a more globally integrated steel business make horizon watching essential. While the global economy expanded by 3% in the financial year 2013, the rate of growth was slower than expected as compared to 3.2% in the previous financial year. The growth was more robust during the second half of the financial year, while Euro zone showed slower recovery leading to greater unemployment and deflation. Unrest in Ukrain and political instability in west Asia could threaten the global economic recovery.

 

ECONOMY OUTLOOK

 

The overall global economic outlook was positive and the economic environment improved in developed markets as compared to the emerging markets which showed slower signs of growth in 2013. In December 2013, world crude steel production for the 65 countries reporting to the World Steel Association (world steel) was 129.2 MT, an increase of 6.3% compared to December 2012. The crude steel capacity utilization ratio of the 65 countries in December 2013 declined to 74.2% from 75.8% in November 2013. The average capacity utilisation in 2013 was 78.1% compared to 76.2% in 2012.

 

After a period of sustained weakness and uncertainty, global economy seemed to be continuing along the road to recovery.

 

Following their marked improved during 2013 economic indicators strengthened further in the first months of 2014 or stabilized at levels which are on an average the highest since 2011. Despite some signs of recovery in global steel demand, continued volatility and uncertainty make it a challenging environment for steel companies.

 

INDIAN ECONOMY

 

After achieving unprecedented growth of over 9 per cent for three successive years between 2005-06 and 2007-08 and recovering swiftly from the global financial crisis of 2008-09, the Indian economy has been going through challenging times that culminated in lower than 5 per cent growth of GDP at factor cost. Persistent uncertainty in the global outlook, caused by the crisis in the Euro area and general slowdown in the global economy, compounded by domestic structural constraints and inflationary pressures, resulted in a protracted slowdown, which was broadly in sync with tends in other emerging economies, but relatively deeper. India’s growth declined from an average of 8.3 per cent per annum during 2004-05 to 2011-12 to an average of 4.6 per cent in 2012-13 and 2013-14. What is particularly worrisome is the slowdown in manufacturing growth that averaged 0.2 per cent per annum in 2012-13 and 2013-14.

 

In addition to the growth slowdown, inflation continued to pose significant challenges. Although the rate of inflation declined during the period, it is still above comfort levels. The higher inflation is majorly attributable to food inflation. Fortunately, the upward trend of inflation that played a part in slowdown in growth, savings, investment, and consumption, appears to have subsided. Developments on external account have generated some optimism that the Indian economy is better prepared to confront the challenges of global policy reversals.

 

Improvement is also observed on the fiscal front, with the fiscal deficit declining from 5.7 per cent of GDP in 2011-12 to 4.9 per cent in 2012-13 and 4.5 per cent in 2013-14. Though, much of this improvement has been achieved by reduction in expenditure rather than from increased revenue. Measures such as curbs on gold import also helped bring down the current account deficit.

 

The prolonged slowdown was a result of factors such as policy log-jam, tight monetary conditions, falling rupee and weak external demand. Coupled with this was persistent inflation which raised worries for the economy.

 

STEEL OUTLOOK

 

The Indian economy’s outlook for 2013-14 can be viewed as cautiously optimistic. The growth rate of the economy improved from 4.4 per cent in quarter 1 in the fiscal year 2013-14 to 4.8 per cent in Quarter 2. Compared to Quarter 1, Quarter 2 has evidenced a robust pick-up in the growth of the agricultural sector and a gradual recovery in the industrial sector.

 

In India, steel demand is expected to grow by 3.3 per cent to 76.2 million tonnes in 2014, following a 1.8 per cent growth in 2013 as per the short-range outlook for 2014 and 2015 of the World Steel Association (WSA). The WSA, whose members represent about 85 per cent of the world's steel production, expects the growth on an improved outlook for the construction and manufacturing sectors, although this may be constrained by high inflation and structural problems. In 2013, world steel demand grew higher than previous forecasts due to a stronger-than-expected performance in the developed world in the second half of the year. In particular, the recovery in the US gained strength.

 

The key risks to the global economy - the Eurozone crisis, a hard landing for the Chinese economy, and the US fiscal cliff issue - have all stabilized considerably and global steel demand is expected to recover to kick in by the second half, led by the emerging economies. Yet, the situation on the financial markets remains fragile and the Eurozone crisis is far from being solved. In 2014, a further pickup in global steel demand is expected with the developed economies increasingly contributing to growth.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Claims against the Company not acknowledged as debts

 

 

Excise and Service Tax Demands under dispute/appeal

1132.016

588.010

Sales Tax/VAT matters under dispute/appeal

1393.047

673.699

Income Tax matters under dispute/appeal

0.685

0.000

 

 

 

Letters of Credit, Bills discounted and Bank Guarantees outstanding

2317.735

1112.848

Custom Duty on Import of Equipment and spare parts under EPCG Scheme

438.000

246.883

Guarantees and Counter guarantees given by the Company for loans obtained by Subsidiary/other companies

504.500

718.000

Guarantee given for Joint Venture Companies

141.246

141.246

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER, 2014

Rs. In Million

 

 

Quarter Ended

Six Months Ended

SI.No

Particulars

30.09.2014

30.06.2014

30.09.2014

 

 

(Unaudited)

(Unaudited)

(Unaudited)

1

Income from Operations

 

 

 

 

a) Net Sales / Income from Operations (Net of excise duty)

3504.995

3352.849

6857.844

 

b) Other Operating Income

50.322

57.585

107.907

 

Total Income from Operation (net)(1a to 1b)

3555.317

3410.434

6965.751

2

Expenses:

 

 

 

 

a) Cost of materials consumed

2201.068

2498.350

4699.418

 

b) Purchases of stock-in-trade

114.791

328.381

443.172

 

c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

455.369

(280.991)

174.378

 

d) Employee benefits expense

129.654

122.162

251.816

 

e) Depreciation and amortisation expense

340.006

311.140

651.146

 

f) Power and fuel

188.284

230.429

418.713

 

g) Other Expenses

509.989

437.874

947.863

 

Total expenses (2a to 2g)

3939.161

3647.345

7586.506

3

Profit / (Loss) from operations before other in come, fin a nee costs and exceptional items (1-2)

(383.844)

(236.911)

(620.755)

4

Other Income

64.085

199.276

263.361

5

Profit / (Loss) from ordinary activities before finance costs and exceptional items (3+4)

(319.759)

(37.635)

(357.394)

6

Finance costs

935.585

868.399

1803.984

7

Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5-6)

(1255.344)

(906.034)

(2161.378)

8

Exceptional Item

0.000

0.000

0.000

9

Profit/ (Loss) from ordinary activities before tax (7-8)

(1255.344)

(906.034)

(2161.378)

10

Tax Expense - Current tax

--

--

--

 

- MAT credit entitlement

--

--

--

 

-Provision (Write back) relating to earlier years

0.602

0.679

1.281

 

- Deferred tax charge / (credit)

(426.546)

(307.842)

(734.388)

 

Total

(425.944)

(307.163)

(733.107)

11

Net Profit/ (Loss) from ordinary activities after tax (9-10)

(829.400)

(598.871)

(1428.271)

12

Extraordinary Item

0.000

0.000

0.000

13

Net Profit/(Loss) for the period (11-12)

(829.400)

(598.871)

(1428.271)

14

Paid-up Equity Share Capital (Equity Share of Rs.10/- each)

737.776

737.776

737.776

15

Reserve excluding Revaluation Reserves

--

--

--

16

Earnings per share-(Before extraordinary items)

 

 

 

 

- Basic (not annualised) (Rs.)

(11.24)

(8.60)

(19.91)

 

- Diluted (not annualised) (Rs.)

(11.24)

(8.60)

(19.91)

17

Earnings per share (after extraordinary items)

 

 

 

 

- Basic (not annualised) (Rs.)

(11.24)

(8.60)

(19.91)

 

- Diluted (not annualised) (Rs.)

(11.24)

(8.60)

(19.91)

A

PARTICULARS OF SHAREHOLDING

 

 

 

1,

Public shareholding

 

 

 

 

- Number of shares

30518291

30561091

30518291

 

- Percentage of shareholding

41.36

41.42

41.36

2.

Promoters and Promoter Group Shareholding

 

 

 

 

A) Pledged/Encumbered

 

 

 

 

- Number of shares

29819459

30782233

29819459

 

- Percentage of shares (as a % of the total Shareholding of promoter and promoter group)

68.93

71.22

68.93

 

- Percentage of shares (as a % of the total share capital of the Company)

40.42

41.72

40.42

 

B) Non-encumbered

 

 

 

 

- Number of shares

13443736

12438162

13443736

 

- Percentage of shares (as a % of the total Shareholding of promoter and promoter group)

31.07

28.78

31.07

 

- Percentage of shares (as a % of the total share capital of the Company)

18.22

16.86

18.22

 

 

 

 

 

B

INVESTOR COMPLAINTS

 

 

 

 

Pending at the beginning of the quarter

NIL

 

 

 

Received during the quarter

NIL

 

 

 

Disposed of during the quarter

NIL

 

 

 

Remaininq unresolved at the end of the quarter

NIL

 

 

 

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

 

SOURCES OF FUNDS

30.09.2014

 

 

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

737.776

(b) Reserves & Surplus

(163.763)

(c) Money received against share warrants

0.000

 

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

574.013

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

16703.564

(b) Deferred tax liabilities (Net)

0.000

(c) Other long term liabilities

0.000

(d) long-term provisions

0.000

Total Non-current Liabilities (3)

16703.564

 

 

(4) Current Liabilities

 

(a) Short term borrowings

7702.820

(b) Trade payables

8397.250

(c) Other current liabilities

7355.793

(d) Short-term provisions

51.305

Total Current Liabilities (4)

23507.168

 

 

TOTAL

40784.745

 

 

II.          ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

 18720.075

(b) Non-current Investments

809.710

(c) Deferred tax assets (net)

2550.773

(d)  Long-term Loan and Advances

1206.148

(e) Other Non-current assets

6.739

Total Non-Current Assets

23293.445

 

 

(2) Current assets

 

(a) Current investments

0.000

(b) Inventories

4512.924

(c) Trade receivables

8741.306

(d) Cash and cash equivalents

185.299

(e) Short-term loans and advances

2511.720

(f) Other current assets

1540.051

Total Current Assets

17491.300

 

 

TOTAL

40784.745

 

 

FIXED ASSETS

 

Tangible Assets

 

  • Freehold Land
  • Leasehold Land
  • Factory Buildings
  • Railway Siding
  • Plant and Machinery
  • Electrical Installations
  • Furniture, Fixtures
  • Office Equipment’s
  • Vehicles

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

KVT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

--

--CREDIT LINES

1~10

--

--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

 

14

 

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

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.