MIRA INFORM REPORT
|
Report No. : |
301713 |
|
Report Date : |
06.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
POSCO INDIA DELHI STEEL PROCESSING CENTRE PRIVATE LIMITED (w.e.f.
29.04.2008) |
|
|
|
|
Formerly Known
As : |
POSS DELHI STEEL PROCESSING CENTRE PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Plot No.193, Sector 4, HSIIDC, Bawal-123501, Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
18.01.2007 |
|
|
|
|
Com. Reg. No.: |
05-041978 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.777.362
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27310HR2007PTC041978 |
|
|
|
|
IEC No.: |
Not Available |
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|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECP1537G |
|
|
|
|
Legal Form : |
Private Limited Liability Company. |
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|
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|
Line of Business
: |
Manufacturing and Processing of Steel components and parts in primary,
semi-finished forms for Automobiles, Home appliances and other
steel-consuming industries. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a subsidiary of “Posco Company Limited”. Korea. It is an
established company having moderate track. The financial profile of the company has been moderated as the company
is consecutively incurring losses since F.Y. 2012 which has further deteriorated
the position of reserves. Further the management seems to be highly relied on debt which may act
as a threat to the liquidity position during 2014. However, trade relations appear to be fair. Business is active.
Payment terms are reported as slow but correct. In view of support from its reputed Korean holding company, the
subject can be considered for business dealings with slight caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
Not Available
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
LOCATIONS
|
Registered /
Corporate Office: |
Plot No.193, Sector 4, HSIIDC, Bawal-123501, Haryana, India |
|
Tel No.: |
91-1284-308342 / 308300 |
|
Fax No.: |
91-1284-308343 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Corporate / Marketing Office: |
10th Floor, BPTP Park Centra Building Sector 30, Gurgaon-122002,
Haryana, India |
|
Tel No.: |
91-124-4164200 |
|
Fax No.: |
91-124-4164209 |
|
|
|
|
Factory : |
Suite No. 445, Ashok Hotel, Chanakyapuri, New Delhi-110021, India |
|
Tel No.: |
91-11-24673680 |
|
Mobile No. : |
91-9810238282 (Mr. Doh Moo Sang) |
|
Fax No.: |
91-11-24673688 |
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E-Mail : |
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|
Website : |
|
|
Location : |
Owned |
DIRECTORS
As on 30.09.2014
|
Name : |
Mr. Seo ran Yu |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
21.02.1968 |
|
Date of Appointment : |
04.04.2013 |
|
DIN No.: |
06546241 |
|
|
|
|
Name : |
Mr. Dae Ho Shin |
|
Designation : |
Whole Time Director |
|
Address : |
MG Road, GUrgaon – 122001, Haryana |
|
Date of Birth/Age : |
02.02.1970 |
|
Date of Appointment : |
31.07.2010 |
|
DIN No.: |
03147809 |
|
|
|
|
Name : |
Mr. Choi Ho Kun |
|
Designation : |
Director |
|
Address : |
B-2, 2nd Floor, Meera Cooperative Suit, Plot NO.1 and 2,
Ishwar Nagar, Mathura Road, New Delhi – 110065, Delhi, India |
|
Date of Birth/Age : |
04.11.1967 |
|
Date of Appointment : |
29.11.2010 |
|
DIN No.: |
03348479 |
|
|
|
|
Name : |
Mr. Kim Jeoungsu |
|
Designation : |
Director |
|
Address : |
Hyundai Park Ville, 1002-1803 577, Gwangjin – Dong, Gwangjin – Gu,
Seoul Metro Korea - 138220 |
|
Date of Birth/Age : |
01.11.1963 |
|
Date of Appointment : |
01.09.2010 |
|
DIN No.: |
03294568 |
|
|
|
|
Name : |
Mr. Yoon Jihwan |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.07.1964 |
|
Date of Appointment : |
11.09.2013 |
|
DIN No.: |
06685323 |
KEY EXECUTIVES
|
Name : |
Mr. Pravin Kumar Chourasia |
|
Designation : |
Secretary |
|
Address : |
213, Sector 31, GUrgaon – 122001, Haryana, India |
|
Date of Birth/Age : |
17.04.1975 |
|
Date of Appointment : |
11.11.2009 |
|
Pan No.: |
AGYPC4200C |
MAJOR SHAREHOLDERS
As on 30.09.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Posco Company Limited, Korea |
51616843 |
66.40 |
|
Shinhan Bank, Korea |
3886810 |
5.00 |
|
Samsung Corporation Company Limited, Korea |
14458935 |
18.60 |
|
Posco South Asia Corporation Limited, Bangkok |
7773621 |
10.00 |
|
Total |
77736209 |
100.00 |
As on 30.09.2014
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Processing of Steel components and parts in primary,
semi-finished forms for Automobiles, Home appliances and other
steel-consuming industries. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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|
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Purchasing : |
Not Available |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
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||||||||||||||||||||||
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Auditors : |
|
|
Name : |
SRBC and Company Chartered Accountants |
|
Address : |
Golf View Corporate Tower-B, Sector 42, Sector Road, Gurgaon – 122002,
Haryana, India |
|
PAN No.: |
ABSFS4151K |
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|
|
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Memberships : |
Not Available |
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|
|
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Collaborators : |
Not Available |
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|
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Holding Company : |
|
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|
|
|
Fellow Subsidiary |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77800000 |
Equity Shares |
Rs.10/-each |
Rs.778.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77736209 |
Equity Shares |
Rs.10/-each |
Rs.777.362
Millions |
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
777.362 |
777.362 |
777.362 |
|
(b) Reserves &
Surplus |
(194.593) |
141.158 |
319.782 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
582.769 |
918.520 |
1097.144 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
391.832 |
319.766 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
70.782 |
58.484 |
46.519 |
|
Total Non-current
Liabilities (3) |
462.614 |
378.250 |
46.519 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3044.730 |
2595.539 |
2038.169 |
|
(b) Trade payables |
2256.983 |
1593.385 |
1389.101 |
|
(c) Other current
liabilities |
74.697 |
70.107 |
49.074 |
|
(d) Short-term provisions |
2.188 |
2.271 |
1.435 |
|
Total Current Liabilities
(4) |
5378.598 |
4261.302 |
3477.779 |
|
|
|
|
|
|
TOTAL |
6423.981 |
5558.072 |
4621.442 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1326.360 |
1308.393 |
712.296 |
|
(ii) Intangible Assets |
3.807 |
4.997 |
0.377 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
53.118 |
|
(d) Long-term Loan and Advances |
27.783 |
80.849 |
58.990 |
|
(e) Other Non-current
assets |
0.958 |
0.400 |
0.000 |
|
Total Non-Current Assets |
1358.908 |
1394.639 |
824.781 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2766.011 |
2028.108 |
1976.430 |
|
(c) Trade receivables |
1485.802 |
1126.739 |
883.982 |
|
(d) Cash and cash
equivalents |
377.632 |
550.908 |
525.062 |
|
(e) Short-term loans and
advances |
426.958 |
446.379 |
401.889 |
|
(f) Other current assets |
8.670 |
11.299 |
9.298 |
|
Total Current Assets |
5065.073 |
4163.433 |
3796.661 |
|
|
|
|
|
|
TOTAL |
6423.981 |
5558.072 |
4621.442 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
GROSS INCOME |
8314.152 |
6921.833 |
5624.998 |
|
|
|
|
|
|
|
Less |
EXPENSES |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(264.299) |
(64.707) |
(211.528) |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
71.452 |
60.802 |
57.952 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(335.751) |
(125.509) |
(269.480) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
53.118 |
(87.863) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
(335.751) |
(178.627) |
(181.617) |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
(4.32) |
(2.30) |
(2.34) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.23) |
(2.26) |
(5.90) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.58) |
(0.14) |
(0.25) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.90 |
3.17 |
1.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.94 |
0.98 |
1.09 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
777.362 |
777.362 |
777.362 |
|
Reserves & Surplus |
319.782 |
141.158 |
(194.593) |
|
Net worth |
1097.144 |
918.520 |
582.769 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
319.766 |
391.832 |
|
Short term borrowings |
2038.169 |
2595.539 |
3044.730 |
|
Total borrowings |
2038.169 |
2915.305 |
3436.562 |
|
Debt/Equity ratio |
1.858 |
3.174 |
5.897 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Gross Income |
5624.998 |
6921.833 |
8314.152 |
|
|
|
23.055 |
20.115 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Gross Income |
5624.998 |
6921.833 |
8314.152 |
|
Profit |
(181.617) |
(178.627) |
(335.751) |
|
|
(3.23%) |
(2.58%) |
(4.04%) |
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 |
No |
REVIEW OF OPERATION
During the year, the Company’s turnover increased to Rs. 9402.800 Million as against Rs. 7843.000 Million of the previous year, thereby registering an increase of 19.88% in turnover through increase in sales volume in domestic market, improved product mix and buoyancy in steel market. The sales volume during financial year 2013-14 was 139,808 MTs against 116,525 MTs for the financial year 2012-13, an increase of 19.98% over previous year.
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10144282 |
26/12/2013 * |
98,766,800.00 |
SHINHAN BANK |
3RD FLOOR D-6 SOUTH EXTENSION PART-II, RING ROAD, NEW DELHI, Delhi - 110049, INDIA |
B92948058 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Term loans from others |
391.832 |
319.766 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Working capital loans from banks |
3044.730 |
2346.513 |
|
Others loans and advances |
0.000 |
249.026 |
|
|
|
|
|
Total |
3436.562 |
2915.305 |
FIXED ASSETS:
·
Land
·
Factory Building
·
Plant and Machinery
·
Computer
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Air Conditioners
WEB SITE DETAILS:
PRESS RELEASES
POSCO INDIA UNIT
FACES TAX EVASION CHARGES, RS 100.000 MILLIONS PENALTY
January 31, 2013
New Delhi:
Korean steel behemoth Posco has big plans for India, including a foreign direct investment (FDI) worth $12 billion (approximately Rs 641236.300 Millions) for a steel mill in Orissa.
However, its plans may run into rough weather as the Directorate of Revenue Intelligence (DRI) has slapped a penalty of close to Rs.100.000 Millions on one of its associate companies in India, POSCO India Delhi Processing Centre (IDPC), for alleged tax evasion. The customs department has also ordered the confiscation of goods worth about Rs 2000.000 Million imported by the company.
POSCO India Private Limited, another group firm under which the steel mill in Orissa is being set up, told NDTV in an email, "POSCO IDPC and POSCO India Private Limited are different entities. This news should not relate to POSCO India Private Limited."
The case pertains to the import of some varieties of stainless steel (EN 1.4512, ASTM 304L, JIS G 4312, SUH 409L) on which anti-dumping duty is applicable. The DRI has alleged that Posco IDPC evaded the duty.
Apart from the penalty, the Rewari, Haryana-based IDPC has been asked to pay an anti-dumping duty of about Rs 15.000 Million
In an order, a copy of which NDTV has accessed, the customs department has said that Posco can appeal in the higher Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
Posco India plans to build steel plants in Orissa and Karnataka. It is also looking at setting up a steel plant in a joint venture with state-owned Steel Authority of India. Currently, IDPC has a processing center in Haryana where it imports cold-rolled stainless steel for processing.
DRI officials told NDTV that transactions in the steel and iron ore sector have been under the department's radar for a while now. In December 2012, the department even ran ads in national dailies saying it has detected close to 300 tax evasion cases worth more than Rs 7000.000 Million. After a detailed investigation, the DRI discovered the imports by IDPC through the Kandla port in Gujarat, the officials claimed.
Apart from the company, notices have also been served on the Daeho Shin, chief financial officer of IDPC, and another official.
ODISHA GOVERNMENT
OPTIMISTIC ABOUT POSCO PROJECT
November 28, 2014
BHUBANESWAR:
The Odisha government is still "optimistic" about setting up of Posco's proposed mega steel facility near Paradip at an investment of Rs 520000.000 Million even as the South Korean steel major's project is delayed by about a decade.
"The Posco project work has not started. However, we are optimistic about implementation of the project," steel and mines minister Prafulla Kumar Mallick told the Assembly.
Replying to a written question, the minister said the Odisha government has so far provided 2,752 acres of land to the state-owned Industrial Infrastructure Development Corporation Limited (IDCO) for the purpose of setting up Posco's 8 mtpa steel mill in the first phase.
IDCO has meanwhile handed over 1,880 acres of land to the steel company, he said.
Even as the company signed MoU with the state government for setting up a 12 mtpa capacity steel plant over 4,000 acre of land, it later decided to reduce land requirement to 2,800 acre and capacity to 8 mtpa, the minister said.
The state government, he said, has already renewed water agreement for the Posco plant in 2010. The mega steel unit required 3.5 cusec of water.
This apart, the minister informed that the company has already signed bilateral agreement with the state-owned Odisha Power Transmission Corporation Limited (OPTCL) for availing 24 MW of electricity during the construction phase.
Posco has also availed no-objection certificates (noc) from the Ministry of Environment and Forest and State Pollution Control Board for the first phase of the project, Mallick said.
Meanwhile, the state government have made separate recommendations over notified and non-notified areas of iron ore reserve for prospecting license (PL), the minister said.
"The state's recommendations of PL is under the consideration of the Centre," he said.
SANAND MOST LIKELY TO
GET POSCO'S RS.20.000 MILLIONS STEEL PLANT
November 14, 2014
AHMEDABAD:
South Korean steel giant Posco has narrowed down on Sanand (Gujarat) for setting up its steel coil unit at an investment of USD 20 million.
"Posco will initiate a steel processing unit, for that they had made a proposal to GIDC. They are most likely to set up the unit at Sanand town. They (Posco) will soon make a formal application, which will probably be finalised by next week," highly-placed sources in the Gujarat government said.
Posco's Sanand unit will be their second still unit in India after Maharashtra's Pune, added the source.
As per sources in state government, Posco's steel coil unit will come up in 30,000 square metre area and will have the capacity of around 10,000 matric tonne annually.
The Posco plant is likely to produce steel coils for the automobiles, considering the grand presence of the sector in Gujarat, said the sources.
Republic of Korea's envoy Joongyu Lee had earlier said that Posco will establish a steel coil mill in Gujarat with investment of around USD 20 million in Gujarat.
Sanand had earlier become the favorite destination for the auto-manufacturers like India's Tata Nano and other multinationals including Ford and Peugeot.
Tata became the first automobile giant which had set up their Nano car plant in Sanand town, after they faced revolt in West Bengal's Singur and had to move to Gujarat accepting the then Chief Minister Narendra Modi's invitation.
Ford has also established their production unit in the same area.
Apart from the auto giants, Japanese Electrical Company Hitachi has also set up its manufacturing facility of power equipment at Sanand.
POSCO TO INVEST
RS.20.000 MILLIONS IN GUJARAT: KOREAN AMBASSADOR
November 12, 2014
AHMEDABAD:
South Korean steel giant Posco will establish a coil mill in Gujarat with investment of around Rs.20.000 million, the country's Indian envoy said today.
"Posco is a big name in steel, they have decided to start a coil mill, probably steel coil, in Gujarat. That investment will be about Rs.20.000 millionS. I do not know the area where they will start it. The project is already decided," Ambassador Joongyu Lee told reporters.
Lee, who was here to mark celebration of Korea day, also said that the state government had proposed `Exclusive Industrial Zone' for Korean companies. He added that there is already an exclusive industrial zone for Korean firms in Rajasthan.
Earlier in the day, Lee met Chief Minister Anandi Patel. A delegation of about 15 industrialists accompanied him.
"Apart from the big industries, I am encouraging SMEs (small and medium enterprises) to come and start business here in Gujarat," he said, adding that even the giants like LG and Samsung can think of Gujarat as a destination.
"We are going to do such event (Korea day) every year in two Indian states and this time we are doing it here in Gujarat and in Maharashtra.
He also praised Prime Minister Narendra Modi's `clean India' and 'make in India' campaigns.
"I always recall (when thinking of Modi) our late president Park Chung-hee. He did huge work for Korea. He always used to address the economic development and also did such campaigns. I very strongly feel Modi is like the late president Park Chung hee," Lee added.
"Korea's total investment in India, at present, is 3.5 million dollars but I am not satisfied with the amount with the inauguration of Modi government and with the new government policy I expect rapid investment in India in future," Lee said.
POSCO PLODS THROUGH
DESPITE SETBACKS
April 25, 2013
It has been nearly ten years since South Korea's Posco made its India foray. Since then, its plan to set up a $12-billion steel plant in Odisha's Paradip, in what was billed as the single largest foreign direct investment in the country, has struggled to take off over issues related to land acquisition. Still, that hasn't stopped the steel giant from pumping in money into the country. Over the last several years, it has announced investments worth $1.4 billion in downstream steel projects, underscoring the importance that India occupies in its business plans.
"We came to India in 2004 on the invitation of Tata Steel to set up a steel plant in a joint venture. But the talks failed as Tata Steel was not willing to concede majority stake to us. Then we started negotiation with the Odisha government for setting up an integrated steel plant on our own," says a senior official of Posco. The South Korean company, of course, had come on a recce before-in the 1990s. However, it could not take a call on setting up business then. "The market, at that time, was not good, though it would have been much easier to acquire land," adds the official, referring to the difficulty the company faces in acquiring land in the state.
Long wait
Posco had signed a memorandum of understanding (MoU) with the Odisha government
in June 2005 and intended to start work the next year. However, as of 2013, the
company has not been able to take possession of a single inch of land. The
state government and the Industrial Infrastructure Development Corporation of
Odisha, which have been carrying out land acquisition haltingly due to stiff
resistance from locals, claim to have acquired 2,100 acres till date and have
assured to take hold of the rest 600 acres to help the company start work on
the first phase in another couple of months, according to a status report
submitted to the inter-departmental ministerial committee of the Centre this
week.
However, land is not the only obstacle in its way. Posco has
to overcome the hurdles in getting captive mining rights, the final
environmental nod from the Green Tribunal, and resolving issues related to
sourcing of water.
But Posco is not sitting on its haunches while the clearances are pending. The
company, which has moved its chairman & managing director's office from
Bhubaneswar to New Delhi for better monitoring of its projects in other states,
has its hands full through a spate of small investments in downstream steel
projects. It has set up specialised steel units in Maharashtra, and processing
centres at Delhi, Pune, Hyderabad and Chennai.
The continuous galvanised line (CGL) and cold rolling mill (CRM) (under
construction) at Mangaon in Maharashtra are designed to cater to the demand for
high-quality steel, ranging from coated steel to cold-rolled products which are
required by a variety of industries such as construction, home appliances and
automotive. The CGL plant, built at an investment of $240 million, was
completed in May 2012, while the CRM plant is expected to go on stream in June
2014.
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 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.63.29 |
|
|
1 |
Rs.96.85 |
|
Euro |
1 |
Rs.75.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PNM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.