MIRA INFORM REPORT

 

 

Report No. :

336812

Report Date :

19.08.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. ISPAT INDO

 

 

Registered Office :

Jalan Desa Kedungturi, Kelurahan Kedungturi, Kecamatan Taman, Sidoarjo 61257, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1978

 

 

Com. Reg. No.:

AHU-AH.01.10-39531

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

a.   Steel Making Industry

b.   Investment Holding

 

 

No. of Employees :

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Indonesia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 


 

BASIC SEARCH

 

Name of Company :

P.T. ISPAT INDO

 

A d d r e s s :

Head Office & Factory

Jalan Desa Kedungturi

Kelurahan Kedungturi, Kecamatan Taman

Sidoarjo 61257

East Java

Indonesia

P.O. Box          - 1083 Surabaya

Phones - (62-31) 7887000 (Hunting), 7882915 (Hunting)

Fax                   - (62-31) 7882917, 7881924, 7887500

E-mail               - ispatindo@mittalsteel.com

Website            - http://www.ispatindo.com

Land Area         - 175,000 sq. meters

Building Area    - 123,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branches

a.   Spinindo Building 1st Floor

      Jalan K.H. Wahid Hasyim No. 76

      Jakarta Pusat, 10340

      Indonesia

      Phones                   - (62-21) 3983 5025 (Hunting)

      Fax                         - (62-21) 3981 6014

      Building Area          - 2 storey

      Office Space          - 100 sq. meters

      Region                    - Commercial

      Status                     - Rent

b.   ISPAT Group

      Park Plaza

      71 Park Street

      Calcutta 700016

      Phones                   - (33) 293914, 4314, 4395

      Fax                         - (33) 297396

c.   Berkeley Square House, 7th Floor

      Berkeley Square, London W1X 5PN

      United Kingdom

      Phone                     - (44) 171 6297988

      Fax                         - (44) 171 6297993

 

Date of Incorporation :

a.   17 November 1975 as P.T. ANDHARA STEEL INDONESIA

b.   1978 as P.T. ISPAT INDO

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-16968.HT.01.04.TH.1999

  Dated 28 September 1999

- No. AHU-AH.01.10-3254

  Dated 11 February 2008

- No. AHU-05967.AH.01.02.TH.2010

  Dated 4 February 2010

- No. AHU-53172.AH.01.02.TH.2012

  Dated 12 October 2012

- No. AHU-AH.01.10-39531

  Dated 23 September 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.000.231.9.641.001

 

The Department of Industry and Trade

TDP No. 131712700104

Dated 12 December 2000

 

The President of the Republic of Indonesia

No. B-102/Pres/11/1974

Dated 4 November 1974

 

The Capital Investment Coordinating Board

-  No. 24/II/PMA/1983

   Dated 23 August 1983

-  No. 33/II/PMA/1988

   Dated 1 August 1988

-  No. 59/II/PMA/1990

   Dated 15 April 1990

-  No. 35/II/PMA/1995

   Dated 14 February 1995

-  No. 775/III/PMA/1998

   Dated 17 June 1998

-  No. 1237/III/PMA/2002

   Dated 11 November 2002

-  No. 861/III/PMA/2003

   Dated 29 July 2003

 

 

Related Company :

A Member of the MITTAL Group or ISPAT Group (see attachment)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 52,350,000.-

Issued Capital                                 : US$ 52,350,000.-

Paid up Capital                               : US$ 52,350,000.-

 

Shareholders/Owners :

a. INDO INVESTMENTS PTE LTD                                      - US$ 49,604,900.-

    Address : 101 Cecil Street

                    18-08 Tong Eng Building

                    Singapore

b. THE ISPAT PROJECTS LTD.                                         - US$   1,887,000.-

    Address : Chatterjee International Center 33 A

                    JL Nehru Road

                    India

c. MUDRA VINIYOG LTD.                                                  - US$      858,000.-

    Address : Chatterjee International Center 33 A

                    JL Nehru Road

                    India                  

d. Mr. Bintarto Triatmodjo, SH.                                         - US$             100.-

    Address : Jl. Tenggilis Utara II/1

                    Surabaya, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Steel Making Industry

b.   Investment Holding

 

Production Capacity :

a. Steel Billets                                 -    700,000 tons p.a.

b. Steel Round Bars Flats, Shapes   -    200,000 tons p.a.

c. Steel Wire Rods                          -    650,000 tons p.a.

d. Hot Strips/Sheets                        -    200,000 tons p.a.

e. Wires/Wire Products                    -    100,000 tons p.a.

f. Oxygen                                       - 2,016,000 metric ton p.a.

 

Total Investment :

a. Equity Capital                              - US$   52.4 million

b. Reinvested Profit                        - US$   12.5 million

c. Loan Capital                                - US$ 181.6 million

d. Total Investment                          - US$ 246.5 million

 

 

 

Started Operation :

1978

 

Brand Name :

ISPAT INDO

 

Technical Assistance :

Technology of Germany

 

Number of Employee :

1,820 persons

 

Marketing Area :

Local      - 70%

Export    - 30%

 

Main Customers :

a.   General Contracting Companies such as P.T. WIJAYA KARYA, P.T. ADHI KARYA,

      P.T. PEMBANGUNAN PERUMAHAN, P.T. WASKITA KARYA, etc

b.   Building material trading and distribution in the country

c.   Export to Singapore, Bangladesh, PNG, Hong Kong, India

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BLUESCOPE STEEL INDONESIA

b. P.T. BUMI KAYA STEEL

c. P.T. GUNUNG GARUDA

d. P.T. GUNAWAN DIANJAYA STEEL

e. P.T. JAKARTA CAKRATUNGGAL STEEL

f.  P.T. JAYA PARI STEEL

g. P.T. KRAKATAU STEEL Tbk

h. P.T. THEMASTER STEEL, Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Jalan Kembang Jepun No. 168-170

      Surabaya, East Java

      Indonesia

b.   P.T. Bank DANAMON INDONESIA Tbk

      Jalan Kembang Jepun No. 132

      Surabaya, East Java

      Indonesia

 

c.   The Hongkong and Shanghai Banking Corp. Ltd.

      Jalan Jenderal Basuki Rachmat 106-128

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 3,296.0 billion

2013 – Rp. 3,380.0 billion

2014 – Rp. 3,500.0 billion

 

Net Profit (estimated) :

2012 – Rp. 168.0 billion

2013 – Rp. 174.0 billion

2014 – Rp. 194.0 billion

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Baldeo Prasad Banka

Directors                                         - a. Mr. Bintarto Triatmodjo, SH

                                                        b. Mrs. Annisa Radhiana Hasan

                                                        c. Mr. Sanjay Shukla

                                                        d. Mrs. Nur Saidah

                                                        e. Mr. Athene Back

                                                         f. Mr. Sunil Kumar Jaju

 

Board of Commissioners :

Commissioner                                 - Mr. Herman Hasan Basri

 

Signatories :

President Director (Mr. Baldeo Prasad Banka) or one of the Directors (Mr. Bintarto Triatmodjo, SH., Mrs. Annisa Radhiana Hasan, Mr. Sanjay Shukla, Mrs. Nur Saidah, Mr. Athene Back and Mr. Sunil Kumar Jaju) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. ANDHARA STEEL INDONESIA, the company was established in November 1975 in Surabaya, East Java, with an authorized capital of US$ 2,750,000 of which US$ 550,000 was issued and paid up. The company was founded by ASC ENGINEERING & CONSULTANTS LTD., AUTUMN INVESTMENT LTD., both of Hong Kong, TOR ISTEG STEEL CORP., of Luxembourg, P.T. TEKNIK UMUM, a national private company, the late Mr. Haji Eddy Kowara, Mr. Haji Erma Erman, both indigenous businessmen and Mr. Budianto Hartono, an Indonesian businessman of Chinese extraction as the original shareholders. The company notary deed had been changed a couple of times. In 1978 the company's name was changed its name to P.T. ISPAT INDO. Then in November 1989 the company's authorized capital was increased to US$ 52,350,000 entirely issued and paid up. In July 1998 the shareholders of the company are consisting of The ISPAT PROJECTS Ltd., India, AMALGAMATED TRADING Ltd., of the Isle of Man and MUDRA VINIYOG, Ltd., India (formerly named MITCO FABRICATION CONSULTANTS PRIVATE Ltd.). The deed of amendment was made by Mrs. Tantien Binatarti, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. C-16968.01.04.TH.1999, dated September 28, 1999.

 

In early 2008, AMALGAMATED TRADING Ltd., Isle of Man pulled out and replaced by INDO INVESTMENTS PTE., LTD., of Singapore.  The latest shareholders of P.T. ISPAT INDO are INDO INVESTMENT Pte., Ltd, of Singapore (94.76%), The ISPAT PROJECTS LIMITED of India (3.60%) MUDRA VINIYOG LIMITED of India (1.64%) and Mr. Bintarto Triatmodjo, SH., (0.00%). The notary deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-3254, dated 11 February 2008. Then according to revision of notary documents of Mrs. Tantien Binatari, SH., No. 02 dated 2 September 2010 the board of directors and the board of commissioner reappointed to lead and runs of the company’s operation. The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-05967.AH.01.02.TH.2010 dated February 4, 2010.

 

The latest according to revision of notary deed Mrs. Tantien Bintarti, SH., no. 30 dated 25 July 2013 the shareholders approved restructured of the company board of director and the board of commissioner. So that the latest revision of notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-39531 dated September 23, 2013.

 

P.T. ISPAT INDO is a member of the MITTAL Group, a large sized business company group of which the operation based in London, the UK, being led by Mr. Mohan Lal Mittal, an International businessman of Indian extraction. The MITTAL Group is dealing with integrated iron steel processing industry of which the operational networks covering India, Hong Kong, Mexico, Thailand, the UK, Trinidad, Indonesia and several other companies.

 

P.T. ISPAT INDO operates in the steel making industry under Foreign Capital Investment (PMA) facilities with its plant located in Desa Kedung Turi, Taman, Sidoarjo (East Java) where it stands on some 17.5 hectare land area. The plant, which went into operation in 1978, has been expanded several times, and now has a produces of high carbon steel wire rods, low carbon steel wire rods, cold heading quality steel wire rods, welding electrode grades steel wire rods, straight bars for concrete reinforcement. In September 1997 P.T. ISPAT INDO planned to merge with its sister company P.T. ISPAT STEEL (the then P.T. ISPAT SPONGE), a foreign capital investment (PMA) planning to engage in steel building materials manufacturing. P.T. ISPAT STEEL previously planned to manage a plant in Desa Sukamulyo, Manyar district, Gresik, East Java, but such merger has no indication to be realized imminent, and P.T. ISPAT STEEL has yet been operating to date.

 

The company operation had kept on running until early 1997 with production reached 80% to 85% of installed production capacity. But since end 1997 the operation had been dropping and within the last one year the production was only 35% of its installed production capacity. Since 1998 the company operation started to rise again and its utility reached 70% to 85% in the last ten years. Some 85% of steel billet products marketed domestically and the rest exported to Singapore, Bangladesh, PNG and others. While large portion of basic materials like scrap iron, redeuz iron pallet and steel billet still is imported from Ukraina, PR. China and Taiwan.

 

On 28 September 2004, the plant of P.T. ISPAT INDO located in Kedung Turi Village, Taman, Sidoarjo, East Java exploded causing an employee died and another one seriously wounded on his face on account of being smashed by a broken gas pipe filter. The explosion being heard within the radius of 300 meters was estimated to come from the control pipe of gas incineration line in Valop Control Gas Unit. Although the accident caused an employee died and injured another one, the activities of the employees are normally running. This was the second explosion experienced by P.T. ISPAT INDO during 2004 the first one was occurred on 3 March 2004 causing 14 employees wounded and some 22 public houses damaged.

 

Since yearly 2005, the operation of P.T. ISPAT INDO has been running normally and smoothly. In its initial operation in 1976, P.T. ISPAT INDO’s annual production capacity reached 60,000 tons of steel billets. However, the annual production of the company at present reaches 700,000 tons of steel billets with types of low and high carbon grades of billets, wire rods and bars. Some 70% of P.T. ISPAT INDO’s products are locally exported and some 30% of which are exported to Asia Pacific’s markets.

 

Besides, P.T. ISPAT INDO is also dealing with investment holding by controlling 100% shares of P.T. ISPAT WIRE PRODUCTS dealing with nail making, wire drawing, straight bars, etc. Its plant is located in Kedungturi Village, Taman Sidoarjo, East Java with annual production capacity of 36,000 tons of wire drawing and nail making, 75,000 tons of straight bars. Some 20% of the company’s products is exported to the USA, South Africa, Australia, New Zealand, Papua New Guinea, Thailand and others.

 

P.T. ISPAT INDO is also controlling 100% shares of P.T. ISPAT PANCA PUTERA dealing with round bar, deformed bar and shafting bar manufacturing.  Its plant is located in the Gresik Industrial Estate on East Java and P.T. ISPAT INDO is also controlling 100% shares of P.T. ISPAT BUKIT BAJA dealing with steel manufacturer that produces steel long products i.e. steel angle bars, steel channel, round bars and steel strips. P.T. ISPAT INDO is also controlling 100% shares of P.T. ISPAT PANCA PUTERA dealing with round bar, deformed bar and shafting bar manufacturing.  Its plant is located in the Gresik Industrial Estate on East Java.  Since mid-2009 P.T. ISPAT INDO is also controlling 100% shares of P.T. ISPAT BUKIT BAJA (formerly PT. BUKIT JAYA STEEL) dealing with steel product manufacturing that produces steel long products i.e. steel angle bars, steel channel, round bars and steel strips.  Its plant is located in West Java with production capacity 126,000 tons per annum.

 

P.T. ISPAT INDO is also holds 50% shares of P.T. MITTAL INDO ENERGY, a private national company dealing with trading and export of petroleum products, coke, coal, iron ore, nickel, condensate etc. P.T. ISPAT INDO is classified as a largest sized company of wire rode in the country of which the operation has been growing in the last three years.

 

We have generally observed the demand for steel products had still been rising by 5% to 7% in the last five years. But the burden of the steel industry in the country is constrained due to the falling raw material scrap. Besides, the increased cost of production due to rising gas prices and the higher gas prices and the higher cost of imported raw materials. The condition of the world economy in 2014 has not shown encouraging progress. Refers to the report of International Monetary Fund (IMF) in October 2014, the global economic growth in 2014 was estimated at 3.3% or lower than the projected one at 3.4%. This was caused by the deceleration of economic growth in Japan, Europe, and China; despite the increasing economic growth in the US. Referring to IMF data, the China economic growth in 2014 was estimated only at 7.4% which is the lowest growth since 1990. The declining of economic growth has impacted to the weakening of commodity demands, including steel products.

 

Along with the declining of global economic growth including China, the demand and price of global commodities including Indonesia main export commodities are deteriorating. The declining of commodities price coupled with the decreasing growth of government and household spending, resulting in the declining of Indonesia economic growth. Indonesia economic growth in 2014 was estimated by IMF to be at 5.1% and is the lowest economic growth since 2009 crisis. Despite the strengthening on 1st quarter of 2014, the improvement of US economic and the declining of export of commodities have resulted in the weakening of rupiah exchange rate to US dollar which hit the import material based industry, including steel industry.

 

From the prospective of the steel industry, the deceleration of global economic growth has resulted in the declining of the growth rate of the world steel consumption. Refers to the report of World Steel Dynamics (WSD) and World Steel Association (WSA), the world steel consumption in 2014 grew at 0.8% compared with previous year growth at 6.5% with the declining of China steel consumption at 3.4%.

 

On the contrary, the production world steel production in 2014 grew at 1.2% with China production growth at 0.9%, thus the excess of world steel supply increased particularly in China which was estimated to achieve more than 80 million tons. With the supply excess, the price of world steel sharply declined from average price in 2011 at USD705 per ton, into average of USD536 per ton CFR East Asia in 2014 (Source: SBB, 2014). In December, China steel price is recorded to be at the lowest point in 2014, which was USD455 to USD460 per ton; similar with Coil price in South East Asia which reaches USD460 to USD470 per ton CFR.

 

The domestic steel industry is also affected by global condition. The excess of global steel supply has resulted in the invasion of imported steel product with low price through various ways including unfair trade practices such as dumping, subsidy and HS Code diversion with the addition of boron alloys steel content to avoid the Import Duty. This afterwards will affect to the declining of steel price at local market up to 14% compared to 2013. On the other hand, the steel demands on domestic market is decreasing due to political situation and the deceleration of Indonesia economic growth. Despite the pressure from global steel industry condition, the domestic steel industry also received pressure due to the increase of Electricity Base Cost (TDL) and natural gas price. Throughout 2014, TDL increased gradually in every 2 months. The electricity cost at the beginning of the year was Rp723/kWh and has increased to Rp1,191/kWh at the end of the year. In addition, the natural gas price has increased by 20% compared to 2013. Steel production in 2014 was also influenced by external conditions, such as sharp decline in steel price in the world market, invasion of imported steel products, unfair trade practices, such as the transfer of HS Code using boron alloy steel that is not subjected to import duties, as well as the suspension of various oil and gas piping project.

 

Indonesia’s Steel Production and Consumption, 2008 – 2013*

 

Year

Production

(Million Ton)

 

Consumption (Million Ton)

2008

5.29

7.79

2009

3.71

5.65

2010

5.23

7.48

2011

6.01

8.6

2012

7.02

9.5

2013*

8.03

10.7

 

Until this time P.T. ISPAT INDO has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. ISPAT INDO is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2012 amounted to Rp. 3,296.0 billion increased to Rp. 3,380.0 billion in 2013 rose to Rp. 3,500.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 has yielded a net profit of at least Rp. 194.0 billion and the company has an estimated total networth of Rp. 1,388.0 billion. Payment condition for domestic suppliers is good with the credit payment system of 1 month to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. ISPAT INDO is led by Mr. Baldeo Prasad Banka (67) with 37 years experience in steel making and trading. Mr. Banka, Managing Director, a member of Board of Directors of Ispat Indo has been with the Group since 1981. He joined in the Materials Department and rose through variety of functions like marketing, government liaison, administration, shipping, Insurance, merger & acquisitions and corporate reviews etc. Prior to joining the Group, he has served in a light engineering industry and an industrial conglomerate in India. He has wide industrial experience with various industries, which includes most of the last years in steel industry. Mr. Banka has a Bachelor's degree in Law and a Master's degree in Commerce. He is a Rotarian and a member of the Association for Iron & Steel Technology (AIST), Pennsylvania, USA. The company has an experienced management further made up of professional managers in the steel products industry and trade. They have wide business relation with government authorities and in private business circles within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. ISPAT INDO is sufficiently fairly good for business transaction.

 

 

Attachment

 

List of the MITTAL Group or the ISPAT Group Members

 

 

1.     ADITYA INVESTMENT LTD., Indonesia (Investment Holding)

2.     ASHOK TEXTILE INDUSTRIES Pte. Ltd., Nepal (Textile Mills)

3.     AUTUMN INVESTMENT Ltd., Hong Kong (Investment Holding)

4.     AMALGAMATED TRADING Ltd. Isle of Man (Steel Trading and Investment Holding)

5.     CARIBBEAN ISPAT Ltd., Trinidad (Steel Making)

6.     CMBJ PENA COLORADA, S.A., Mexico (Iron Ore Pellets Making)

7.     DIERA TRADING Ltd., Barduba (Steel Product Trading and Investment Holding)

8.     DOMINION TRADING Ltd., England (Steel Trading and Investment Holding)

9.     GONTERMANN PEIPERS Ltd., India (Iron and Steel Making)

10.  INDO RAMA CHEMICALS Ltd. Thailand (Chemical Processing)

11.  INDO RAMA SYNTHETIC Ltd. India (Textile Mills)

12.  INLAND STEEL COMPANY, the USA (Steel Making)

13.  ISPAT ALLOYS Ltd., India (Alloys Manufacturing)

14.  ISPAT BUKIT BAJA, P.T. (Steel Long Products Manufacturing)

15.  ISPAT HAMBURGER STAHLWERKE GmbH, Germany (Steel Products Making)

16.  ISPAT INDO, P.T. Indonesia (Steel Making Industry and Investment Holding)

17.  ISPAT INTERNATIONAL (UK) LTD., the U.K. (Trading)

18.  ISPAT KARMET, Kazakhstan (Steel Making)

19.  ISPAT MEXICANA SA., Mexico (Steel Making)

20.  ISPAT PANCA PUTERA, P.T. (Round Bar, Deformed Bar and Shafting Bar Industry)

21.  ISPAT PROFILES INDIA Ltd. (Investment Holding)

22.  ISPAT STEEL, P.T. Indonesia (Steel Sponges and Steel Products Making)

23.  ISPAT WIRE PRODUCT, P.T. (Wire Products Making)

24.  KHRISNA INDOGAS TAMA, P.T. (Industrial Gases Processing)

25.  KWL KENT WIRE LTD., the UK. (Wire Products Making)

26.  MITTAL INDO ENERGY, P.T. (Trading and Export of Petroleum Products, Coke, Coal, Iron

      Ore, Nickel, Condensate etc.)

27.  MUDRA VINIYOG, Ltd., of India (Engineering Consulting and Investment Holding)

28.  NIPPON DENRO ISPAT Ltd., India (Steel Making and Investment Holding)

29.  RAMATEX Ltd., Hong Kong (Investment Holding_

30.  SIDBEC DOSCO (ISPAT) INC., Canada (Steel Products Making)

31.  SERSIIN S.A. Mexico (Contracting)

32.  THONBURI LACE Co., Ltd. Thailand (Textile Mills)

33.  WALKER WIRE (ISPAT) INC., the USA (Wire Making)

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.102.23

Euro

1

Rs.72.39

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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 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%)

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.