MIRA INFORM REPORT
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Report No. : |
339169 |
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Report Date : |
10.09.2015 |
IDENTIFICATION DETAILS
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Name : |
ELECTRO STEEL CASTINGS LIMITED |
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Registered
Office : |
Rathod Colony, Rajgangpur, Sundergarh – 770017, Orissa |
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Tel. No.: |
91-66-24220332 |
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Country : |
India |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
26.11.1955 |
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Com. Reg. No.: |
15-000310 |
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Capital
Investment / Paid-up Capital : |
Rs. 356.955 Million |
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CIN No.: [Company Identification
No.] |
L27310OR1955PLC000310 |
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IEC No.: |
Not Available |
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TIN No.: |
08051764761V |
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PAN No.: [Permanent Account No.] |
AAACP4709N |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast Iron (CI) Pipes. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
A (56) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behavior : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having fine track. Rating derives strength from experienced promoters with a long track
record of operations and leadership position of the company in the domestic
ductile iron pipe segment. Fundamental of the company appears to be strong and healthy. However,
company has reported marginal dip in its revenue base and profit in FY14.
Profit margin seems to be fair. Trade relations are fair. Business is active. Payment terms are
reported to be regular and as per commitment. The company can be considered for business dealing with usual 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE Ratings |
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Rating |
Long term bank facilities “AA-” |
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Rating Explanation |
High degree of safety and very low credit
risk |
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Date |
February 19, 2015 |
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Rating Agency Name |
CARE Ratings |
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Rating |
Short term debt = (A1+) |
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Rating Explanation |
Very Strong degree of safety and lowest
credit risk |
|
Date |
February 19, 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
31-03-2013.
INFORMATION DENIED BY
|
Name : |
Mr. Nilesh Daga |
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Designation : |
Finance Head |
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Contact No.: |
91-33-22839990 |
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Date : |
03.09.2015 |
LOCATIONS
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Registered Office : |
Rathod Colony, Rajgangpur, Sundergarh – 770017, Orissa, India |
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Tel. No.: |
91-66-24220332/ 9 / 287047 / 207008 |
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Fax No.: |
91-6622-481803 |
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E-Mail : |
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Website : |
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Corporate Office / Head Office : |
G. K. Tower, 19, Camac Street, Kolkata – 700017, West Bengal, India |
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Factory 1 : |
30, B.T. Road, Sukchar, Khardah, 24-Paraganas (North) – 743179, West
Bengal, India |
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Factory 2 : |
Gummodipoondi Taluk, P.O. Elavur, District. MGR, Chengal – 601211,
Tamilnadu, India |
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Factory 3 : |
Haldia,Kasberia, P.O. Khanjan Chawk, Haldia, Midnapore (East), West
Bengal India |
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Factory 4 : |
Parbatpur Coal Mine, P.O. Batbinor, District: Bokaro – 827013,
Jharkhand India |
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Factory 5 : |
Bansberia Works, Saptagram Panchayat, P.O. Adconnagar, Chak Bansberia
– 712121, West Bengal, India |
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Branch Office 1 : |
148/150 (Old No.98/99), Luz Church
Road, Luz Church Road, Chennai – 600004, Tamilnadu, India |
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Branch Office 2 : |
B-47, Shiv Mahal Cannught Place, New Delhi – 110001, India |
DIRECTORS
AS ON 28.08.2014
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Name : |
Mrs. Shermadevi Yegnaswami Rajagopalan |
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Designation : |
Director |
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Address : |
Udayan, UD-08-1003, 1050/1, Survey Park, Kolkata - 700075, West Bengal, India |
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Date of Appointment : |
01.04.2014 |
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DIN No.: |
00067000 |
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Name : |
Mr. Pradip Kumar Khaitan |
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Designation : |
Director |
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Address : |
B-103, Rai Enclave, 7/1A, Sunny Park, Kolkata - 700019, West Bengal, India |
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Date of Appointment : |
28.08.2014 |
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DIN No.: |
00004821 |
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Name : |
Mr. Binod Kumar Khaitan |
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Designation : |
Director |
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Address : |
5, Queens Park, Kolkata - 700019, West Bengal, India |
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Date of Appointment : |
28.08.2014 |
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DIN No.: |
00128502 |
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Name : |
Mr. Jamshed Jiji Irani |
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Designation : |
Director |
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Address : |
H No 3 C Road (East) Northern Town, Bistupur East Singhbhum, Jamshedpur - 831001, Jharkhand, India |
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Date of Appointment : |
28.08.2014 |
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DIN No.: |
00311104 |
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Name : |
Mr. Umang Kejriwal |
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Designation : |
Managing Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata - 700019, West Bengal, India |
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Date of Appointment : |
15.02.1979 |
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DIN No.: |
00065173 |
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Name : |
Mr. Mayank Kejriwal |
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Designation : |
Managing Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata - 700019, West Bengal, India |
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Date of Appointment : |
15.02.1979 |
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DIN No.: |
00065980 |
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Name : |
Mr. Uddhav Kejriwal |
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Designation : |
Whole-Time Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata - 700019, West Bengal, India |
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Experience : |
5 Years |
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Date of Appointment : |
16.06.2008 |
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DIN No.: |
00066077 |
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Name : |
Mr. Naresh Chandra |
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Designation : |
Director |
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Address : |
C4/4053, Vasant Kunj,, New Delhi - 110070, Delhi, India |
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Date of Appointment : |
10.09.2014 |
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DIN No.: |
00015833 |
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Name : |
Mr. Vyas Mitre Ralli |
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Designation : |
Whole-Time Director |
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Address : |
"Silver Spring" Flat-13B, Block-3, 5, JBS Halden Avenue, Kolkata - 700105, West Bengal, India |
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Date of Appointment : |
21.12.2014 |
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DIN No.: |
02892446 |
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Name : |
Mr. Mahendra Kumar Jalan |
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Designation : |
Whole-Time Director |
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Address : |
Flat 6B, 3C, National Library Avenue, Alipur, Kolkata - 700027, West Bengal, India |
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Qualifications : |
B.Tech (3rd year) |
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Date of Appointment : |
22.01.2015 |
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DIN No.: |
00311883 |
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Name : |
Ms. Nityangi Kejriwal |
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Designation : |
Director Appointed in Casual Vacancy |
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Address : |
Nav-Nikung, 13 Gurusaday Road, Ballygunge, Kolkata - 700019, West Bengal, India |
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Qualifications : |
Graduate from Cardiff University specializing in Journalism, Media and Cultural Studies. |
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Date of Appointment : |
31.03.2015 |
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DIN No.: |
07129444 |
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Name : |
Mr. Ram Krishna Agarwal |
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Designation : |
Additional Director |
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Address : |
FD-226, Salt Lake, Sector- III, Kolkata - 700091, West Bengal, India |
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Qualifications : |
Institute of Internal Auditors, India and was a member of the Central Council of the Institute of Chartered |
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Date of Appointment : |
30.07.2015 |
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DIN No.: |
00416964 |
KEY EXECUTIVES
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Name : |
Mr. Gautam Jhunjhunwala |
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Designation : |
Chief Finance Officer |
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Address : |
Flat No. 23l, Tower 3, South City, 375 Prince Anwar Shah Road, Kolkata - 700068, West Bengal, India |
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PAN No : |
ACVPJ5088N |
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Date of Appointment : |
12.05.2015 |
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Name : |
Mr. Subhra Giri Patnaik |
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Designation : |
Company Secretary |
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Address : |
2A, Block- C, Dream Park, 468 Dakshin Kumrakhali, Sonarpur Station Road, Kolkata - 700103, West Bengal, India |
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Date of Appointment : |
01.08.2015 |
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PAN No : |
AIUPP1384J |
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Name : |
Mr. Nilesh Daga |
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Designation : |
Finance Head |
SHAREHOLDING PATTERN
AS ON 30.06.2015
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Category of
Shareholder |
Total No. of Shares |
% of Total No. of
Shares |
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(A) Shareholding of
Promoter and Promoter Group |
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|
40952003 |
11.47 |
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148274369 |
41.54 |
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189226372 |
53.01 |
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Total shareholding
of Promoter and Promoter Group (A) |
189226372 |
53.01 |
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(B) Public
Shareholding |
||
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|
3000200 |
0.84 |
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|
1336886 |
0.37 |
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|
24334235 |
6.82 |
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|
4942436 |
1.38 |
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|
33613757 |
9.42 |
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|
22809868 |
6.39 |
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|
68825498 |
19.28 |
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|
12308905 |
3.45 |
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|
30165922 |
8.45 |
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|
121910 |
0.03 |
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|
227575 |
0.06 |
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|
27480414 |
7.70 |
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|
2336023 |
0.65 |
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|
134110193 |
37.57 |
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Total Public
shareholding (B) |
167723950 |
46.99 |
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Total (A)+(B) |
356950322 |
100.00 |
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(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
5000 |
0.00 |
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|
5000 |
0.00 |
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Total (A)+(B)+(C) |
356955322 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast Iron (CI) Pipes. |
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Products : |
· Ductile Iron Pipes ·
Ductile Iron Fittings |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management
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Bankers : |
· State Bank of India · Punjab National Bank · Standard Chartered Bank · ICICI Bank Limited · IDBI Bank Limited · HDFC Bank Limited · Bank of India · IndusInd Bank limited ·
DBS Bank Limited ·
Syndicate Bank ·
Yes Bank Limited ·
Export-Import Bank of India |
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Facilities : |
Note: Long term
borrowing : 11% Non-Convertible Debentures (privately placed) are secured by
pari-passu on company’s fixed assets (immovable and movable) including land
and buildings both present and future other than assets located at Chennai
and Elavur. These debentures were allotted on 5th July, 2013 and
are redeemable at par at the end of 5th year from the date of
allotment i.e. on 5th July 2018. However, there is a put and call
options available to the issuer / investor which can be exercised at the end
of three years from the date of allotment i.e. on 5th July 2016. 12.50% Non-Convertible Debentures (privately placed) are secured by
pari-passu on company’s fixed assets (immovable and movable) including land
and buildings both present and future other than assets located at Chennai
and Elavur. These debentures were allotted on 5th July, 2013 and
are redeemable at par at the end of 5th year from the date of
allotment i.e. on 5th July 2018. However, there is a put and call
options available to the issuer / investor which can be exercised at the end
of three years from the date of allotment i.e. on 5th July 2016
and every quarter thereafter. 10.75% Non-Convertible Debentures (privately placed) are secured by
pari-pass on company’s fixed assets (immovable and movable) including land
and buildings both present and future other than assets located at Chennai
and Elavur and excluding furniture and fixture, vehicles and other intangible
assets. These debentures were allotted on 11th April, 2012 and are
redeemable at par in three annual installments at the end of 3rd,
4th and 5th year from the date of allotment. External commercial borrowing is secured by way of first pari-passu on
all immovable and movable Fixed Assets, both present and future of the
Company other than assets located at Chennai and Elavur. External commercial borrowing of USD 77.50 Million is repayable in 3
annual installments of 33.25% in July, 2013, 33.25% in July, 2014 &
33.50% in July, 2015. The outstanding as on 31.03.2015 is Rs. 1622.526
Million (previous year Rs. 3099.219 Million). External commercial borrowing
of USD 139.00 million is repayable in 12 semi annual installments from 29th
august, 2015. The outstanding as on is Rs. 8686.805 Million (previous year
Rs. 8327.490 Million). The interest rate ranges from 6m Libor + 250 to 500
basis points. Rupee term loan form bank of Rs. 2000.000 Million (previous year Rs.
2000.000 Million) is secured by way of first pari – passu charge on all
immovable and movable Fixed Assets, both present and future of the Company other
than assets located at Chennai and Elavur. Term loan is repayable in 28
quarterly installments starting from June, 2015.the interest rate ranges from
13.00%p.a to 13.50% p.a. Rupee term loan form bank of Rs. 400.000 Million (previous year Rs.
Nil Million) is to be secured by way of first pari – passu charge on all
immovable and movable Fixed Assets, both present and future of the Company
other than assets located at Chennai, Elavur and Vadgaon (Pune). Term loan is
repayable in 16 equal quarterly installments starting from December, 2015.
The interest rate ranges from 11.00% p.a. to 11.50% p.a. Term loan from financial institution of Rs. Nil Million. (Previous
year Rs. 93.750 million) was secured by way of first pari-passu charge on all
immovable and movable Fixed Assets, both present and future of the Company
other than assets located at Chennai and Elavur. Term loan from a financial institution of Rs. 235.294 Million
(Previous year Rs. 411.765 Million) is secured by way of first pari-passu
charge on all immovable and movable Fixed Assets, both present and future of
the Company other than assets located at Chennai and Elavur. Term loan is
repayable in 17 equal quarterly installments starting from 30th
December, 2011. The interest rate
ranges from 12.00% p.a. to 12.50% p.a. Term loan from a financial institution of Rs. 500.000 Million
(Previous year Rs. Nil Million) is secured by way of first pari-passu charge
on all immovable and movable Fixed Assets, both present and future of the
Company other than assets located at Chennai and Elavur. Term loan is
repayable in 24 equal quarterly installments starting from 01st
July, 2016. The interest rate ranges from 12.00% p.a. to 13.00% p.a. Term loan from a financial institution of Rs. 395.400 Million (Previous
year Rs. 395.400 Million) is to be secured by way of first pari – pass charge
on all movable Fixed Assets, both present and future of the Company. The loan
is repayable in 54 monthly installments starting from April, 2015. The
interest rate ranges from 14.00% p.a. to 14.50% p.a. Short term
borrowing: Loans repayable on demand being working capital facilities from banks (both fund based and non-fund based) are secured by first pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts / receivables and other current assets of the company both present and future. Fixed Deposits amounting to Rs. 300.000 Million (previous year units of mutual funds amounting to Rs. 300.000 Million) are pledged with bank for availing working capital facility. |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountants |
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Address : |
Hutatma Chowk, Mumbai - 400001, Maharashtra,
India |
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Tel no : |
91-22-22656225 |
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Solicitors : |
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Name : |
Khaitan and Company, LLP |
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Address : |
Kolkata, India |
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Memberships : |
----- |
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Collaborators : |
----- |
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Subsidiary Company : |
·
Electro
steel Europe SA ·
Electro
steel Algerie SPA ·
Electro
steel Castings (UK) Limited ·
Electro
steel USA LLC ·
WaterFab,
LLC (100% subsidiary of electro steel USA, LLC) ·
Mahadev
Vyapaar Private Limited ·
Electrosteel
Trading S.A, Spain ·
Singardo
International Pte Limited ·
Electrosteel
Castings Gulf FZE ·
Electrosteel
Doha for Trading LLC ·
Electrosteel
Brasil Ltda. Tubos e Conexoes Duteis |
|
|
|
|
Associates Company : |
·
Electrosteel
Steels Limited ·
Electrosteel
Thermal Power Limited ·
Srikalahasthi
Pipes Limited (Formerly, Lanco Industries Limited) ·
Singardo
International Pte Limited (From 1.10.2014 till 31.12.2014) |
|
|
|
|
Joint Venture Company: |
·
North
Dhadhu Mining Company Private Limited ·
Domco
Private Limited |
|
|
|
|
Enterprises where KMP/Relatives of KMP have significant influence or
control |
·
Global
Exports Limited ·
G.K. and
Sons Private Limited ·
Badrinath
Industries Limited ·
Akshay
Ispat and Ferro Alloys Private Limited ·
Electrocast
Sales India Limited ·
Tulsi
Highrise Private Limited ·
Wilcox
Merchants Private Limited ·
Murari
Investment and Trading Company Limited ·
Electrosteel
Thermal coal Limited ·
Gaushree
Enterprises ·
Sri Gopal
Investments Venture Limited ·
Ultimo
Logistics Private Limited ·
Krsna
Logistics Private Limited ·
Radhya
Infraservices Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Re.1/- each |
Rs. 500.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
356955322 |
Equity Shares |
Re.1/- each |
Rs. 356.955 Million |
NOTE:
- The company
has only one class of shares referred to as equity shares having a par value
of Re.1/- each holder of equity shares is entitled to one vote per share.
In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company, after distribution of all
preferential amount, in proportion of their shareholding.
- During the year, the company issued 1,31,38,000 Equity Shares to promoters/promoters group of the company on preferential basis as approved by the members of the company at the extraordinary general meeting held on 12.05.2014.
- The dividend
proposed by the board of directors is subject to the approval of the
shareholders in the ensuing annual general meeting.
- During the
year ended 31 March 2015, the amount of per share dividend recognized as
distribution to equity shareholders was Re.0.65.
- Reconciliation of the number of shares
outstanding.
|
Particular |
As on 31.03.2015 (Rs. in Million) |
|
Number of shares at the beginning |
343817322 |
|
Add: addition during the year |
13138000 |
|
Number of shares at the end |
356955322 |
- Shareholders
holding more than 5% shares
|
Name of Shareholders |
As on 31.03.2015 (Rs. in Million) |
|
Murari Investment and Trading Company |
30053080 |
|
G.K. and Sons Private Limited |
36731833 |
|
G.K. Investment Limited |
21739560 |
|
Uttam Commercial Company Limited |
18590570 |
|
Electrocast Sales India Limited |
29899981 |
|
Stemcor Metals Limited |
19243836 |
FINANCIAL DATA
[All figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
356.955 |
343.817 |
326.753 |
|
(b) Reserves &
Surplus |
24690.909 |
24128.622 |
23217.694 |
|
(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) |
25047.864 |
24472.439 |
23544.447 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
12843.759 |
15154.774 |
12062.222 |
|
(b) Deferred tax
liabilities (Net) |
308.672 |
351.490 |
339.792 |
|
(c) Other long term
liabilities |
8.271 |
49.967 |
102.549 |
|
(d) long-term provisions |
129.862 |
150.560 |
105.633 |
|
Total Non-current
Liabilities (3) |
13290.564 |
15706.791 |
12610.196 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
8101.945 |
6864.968 |
8566.793 |
|
(b) Trade payables |
2194.497 |
3047.360 |
1444.259 |
|
(c) Other current
liabilities |
5194.397 |
3425.601 |
3020.350 |
|
(d) Short-term provisions |
789.206 |
562.701 |
673.539 |
|
Total Current Liabilities
(4) |
16280.045 |
13900.630 |
13704.941 |
|
|
|
|
|
|
TOTAL |
54618.473 |
54079.860 |
49859.584 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
11064.463 |
10924.345 |
10936.626 |
|
(ii) Intangible Assets |
23.548 |
21.935 |
8.415 |
|
(iii) Capital
work-in-progress |
12784.117 |
12108.172 |
9860.930 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
12586.397 |
10323.763 |
10284.052 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
213.407 |
2886.618 |
835.449 |
|
(e) Other Non-current
assets |
33.968 |
127.932 |
139.636 |
|
Total Non-Current Assets |
36705.900 |
36392.765 |
32065.108 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
71.546 |
675.835 |
1141.912 |
|
(b) Inventories |
4957.856 |
5567.953 |
4517.359 |
|
(c) Trade receivables |
5803.476 |
6168.581 |
6566.132 |
|
(d) Cash and cash
equivalents |
2102.242 |
2288.436 |
3204.354 |
|
(e) Short-term loans and
advances |
3651.274 |
1923.545 |
1453.082 |
|
(f) Other current assets |
1326.179 |
1062.745 |
911.637 |
|
Total Current Assets |
17912.573 |
17687.095 |
17794.476 |
|
|
|
|
|
|
TOTAL |
54618.473 |
54079.860 |
49859.584 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
21537.789 |
21868.793 |
19345.473 |
|
|
Other Income |
308.113 |
197.010 |
950.528 |
|
|
TOTAL |
21845.902 |
22065.803 |
20296.001 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
10372.682 |
9473.202 |
9664.694 |
|
|
Purchases of
Stock-in-Trade |
865.310 |
1825.730 |
484.129 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
50.927 |
(296.384) |
91.504 |
|
|
Employees benefits
expense |
1599.067 |
1487.605 |
1374.904 |
|
|
Other expenses |
5867.089 |
6328.111 |
5827.677 |
|
|
TOTAL |
18755.075 |
18818.264 |
17442.908 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
3090.827 |
3247.539 |
2853.093 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
1453.162 |
1358.196 |
1112.418 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1637.665 |
1889.343 |
1740.675 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
674.300 |
529.671 |
530.868 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
963.365 |
1359.672 |
1209.807 |
|
|
|
|
|
|
|
Less |
TAX |
236.649 |
354.088 |
237.536 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX |
726.716 |
1005.584 |
972.271 |
|
|
|
|
|
|
|
|
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
1821.046 |
1866.924 |
1135.795 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
250.000 |
250.000 |
450.000 |
|
|
proposed Dividend |
232.021 |
223.481 |
163.376 |
|
|
debenture redemption
reserve |
35.000 |
540.000 |
100.000 |
|
|
Tax on Dividend |
47.234 |
37.981 |
27.766 |
|
|
Total |
564.255 |
1051.462 |
741.142 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
1983.507 |
1821.046 |
1866.924 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
6879.791 |
9090.658 |
8486.331 |
|
|
Others |
93.893 |
115.987 |
21.948 |
|
|
TOTAL EARNINGS |
6973.684 |
9206.645 |
8508.279 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2999.761 |
4309.190 |
2457.920 |
|
|
Components and Stores
parts |
381.553 |
231.815 |
292.362 |
|
|
Capital Goods |
168.999 |
166.571 |
171.841 |
|
|
TOTAL IMPORTS |
3550.313 |
4707.576 |
2922.123 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
2.05 |
3.02 |
2.98 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
|
|
|
|
Secured |
3696.266 |
1872.850 |
2610.294 |
|
Cash generated from operations |
4039.332 |
881.258 |
(2027.584) |
|
Net cash flow from (used in) operations |
NA |
NA |
NA |
|
Net cash flow from operating activities |
3948.090 |
573.221 |
(2185.079) |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
Unaudited 30.06.2015 |
|
Type |
|
|
1rd
Quarter |
|
Net Sales |
|
|
4790.320 |
|
Total Expenditure |
|
|
4177.550 |
|
PBIDT (Excl OI) |
|
|
612.770 |
|
Other Income |
|
|
109.980 |
|
Operating Profit |
|
|
722.750 |
|
Interest |
|
|
394.270 |
|
Exceptional Items |
|
|
NA |
|
PBDT |
|
|
328.480 |
|
Depreciation |
|
|
157.510 |
|
Profit Before Tax |
|
|
170.970 |
|
Tax |
|
|
52.210 |
|
Provisions and contingencies |
|
|
NA |
|
Profit After Tax |
|
|
118.760 |
|
Extraordinary Items |
|
|
NA |
|
Prior Period Expenses |
|
|
NA |
|
Other Adjustments |
|
|
NA |
|
Net Profit |
|
|
118.760 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
3.37 |
4.60 |
5.03 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
14.35 |
14.85 |
14.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.29 |
4.30 |
4.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.06 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.01 |
1.00 |
1.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10 |
1.27 |
1.30 |
STOCK
PRICES
|
Face Value |
Rs. 1.00/- |
|
Market Value |
Rs. 17.55/- |
FINANCIAL ANALYSIS
[All figures are in
Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
326.753 |
343.817 |
356.955 |
|
Reserves & Surplus |
23217.694 |
24128.622 |
24690.909 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
23544.447 |
24472.439 |
25047.864 |
|
|
|
|
|
|
long-term borrowings |
12062.222 |
15154.774 |
12843.759 |
|
Short term borrowings |
8566.793 |
6864.968 |
8101.945 |
|
Current maturities of
long-term debts |
3696.266 |
1872.85 |
2610.294 |
|
Total borrowings |
24325.281 |
23892.592 |
23555.998 |
|
Debt/Equity ratio |
1.033 |
0.976 |
0.940 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
19345.473 |
21868.793 |
21537.789 |
|
|
|
13.043 |
(1.514) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
19345.473 |
21868.793 |
21537.789 |
|
Profit |
972.271 |
1005.584 |
726.716 |
|
|
5.03% |
4.60% |
3.37% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
--- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
--- |
|
33 |
Market information |
--- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
UNSECURED LOAN
|
PARTICULARS |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
Short term
borrowing |
|
|
|
Repayable on demand from banks |
|
|
|
Indian currency |
0.000 |
100.000 |
|
Foreign currency |
284.343 |
233.649 |
|
From related party |
9.634 |
9.235 |
|
Total |
293.977 |
342.884 |
OVERVIEW:
The company is engaged in the business of manufacturing Ductile Iron
(DI) Pipes, Ductile Iron Fittings (DIF) and Cast Iron (CI) Pipes. The company
is the first to set up a ductile iron pipe plant in India today it is India’s
leading Pipeline solution provider. It has a strong brand presence around the
globe. Since 1994, the company has maintained its edge over its competitors.
OPERATIONS
The Company’s Revenue from operations has increased from Rs. 19345.500 Million in 2012-13 to Rs. 21868.800 Million in 2013-14. Export sales showed an increase from Rs. 9366.800 Million to Rs.9892.100 Million, an increase of 5.60% due to higher realization in the export market. The Company’s profit (PAT) for the financial year was Rs.1005.500 Million as against Rs. 972.300 Million of previous financial year which is a nominal increase of 3.42% since last financial year.
During the year production of Ductile Iron (DI) pipes was 2,81,239 MT as against 2,84,849 MT in the previous year. Production of DI Fittings during the year was 5,992 MT as compared to 6,063 MT in previous year. The production of Cast Iron (CI) pipes at Elavur was 25,848 MT as against 24,451 MT in the previous year.
Special attention has been given not only to increase energy efficiency but also for improvement in production and productivity. Further, product variety has been added to meet newer requirements from international and enlightened Indian customers.
FUTURE PROSPECTS
Demand for Ductile Iron Pipes and Fittings in the domestic market is bullish. The Company continues to maintain its dominant position in the market against competitors. In the Export market, market shares have increased in the European markets even with the crisis in Europe. The Company, after entrenching itself in the prestigious West European markets, is looking to expand in Eastern Europe. New markets are being opened up in South America and Africa. We will maintain our emphasis in the Gulf markets where we have a historically strong presence.
AWARDS
EEPC INDIA, Eastern Region has given AWARD FOR EXPORT EXCELLENCE to / Electrosteel Castings Limited for star performers as large enterprise in the product group of sanitary and Industrial Castings for its outstanding contribution to engineering exports during the year 2011-12.
Disposal of complaint under The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressed) Act, 2013 (The Act)
In compliance with the Act, the Company has constituted the Internal Complaints Committee and also framed the redressed policy in case of sexual harassment at workplace. During the year, the Company has not received any complaint with respect to sexual harassment at work place.
Increase in Paid-up Equity Share Capital
During the year ended March 31, 2014, the Company has allotted 1,70,64,617 Equity Shares of Re. 1/- (Rupee one) each at an issue price of Rs 13.85 per Equity share on November 27, 2013 to the Promoters on preferential basis and accordingly the paid-up Equity share capital stands increased to Rs. 34,38,17,322 divided into 34,38,17,322 Equity shares of Re. 1/- (Rupee one) each.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10584076 |
10/07/2015 |
2,382,060,000.00 |
Axis Bank Limited |
Corporate Banking Branch,
1, Shakespeare Sarani, AC Market Building, Kolkata - 700071, West
Bengal, INDIA |
C60800521 |
|
2 |
10520069 |
27/04/2015 * |
400,000,000.00 |
YES BANK LIMITED |
56A, Hemanta Basu
Sarani,, Dalhousie, Kolkata - 700001, West Bengal, INDIA |
C53820874 |
|
3 |
10540880 |
24/11/2014 * |
105,776,000,000.00 |
IL & FS TRUST COMPANY
LIMITED |
IL & FS FINANCIAL
CENTREPLOT NO C22 G BLOCK BANDRA - KURLA COMPLEX BANDRA EAST, MUMBAI -
400051, Maharashtra , INDIA |
C41352543 |
|
4 |
10504946 |
06/01/2015 * |
450,000,000.00 |
EXPORT-IMPORT BANK OF
INDIA |
FLOOR 21, CENTRE ONE
BUILDING, WORLD TRADE CENTRE |
C42406900 |
|
5 |
10504949 |
06/01/2015 * |
500,000,000.00 |
EXPORT-IMPORT BANK OF
INDIA |
FLOOR 21, CENTRE ONE BUILDING,
WORLD TRADE CENTRE |
C42407304 |
|
6 |
10456029 |
09/10/2013 * |
1,500,000,000.00 |
Axis Trustee Services
Limited |
Axis House, 2nd Flr,
Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai - 400025, Maharashtra, INDIA |
B88351754 |
|
7 |
10437896 |
06/01/2015 * |
2,000,000,000.00 |
State Bank of India |
Corporate Accounts Group
Branch, 2nd Floor,, Reli |
C41920885 |
|
8 |
10436689 |
26/06/2013 |
100,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI
BAPAT MARG, LOWER PAREL W |
B79549069 |
|
9 |
10413738 |
30/07/2014 * |
2,250,000,000.00 |
IDBI Bank Limited |
IDBI House, 44,
Shakespeare Sarani, Kolkata - 700017, West Bengal, INDIA |
C15989148 |
|
10 |
10413155 |
21/03/2013 |
750,000,000.00 |
INDUSIND BANK LTD. |
Savitri Towers, 3A Upper Wood
Street, Kolkata - 700017, West Bengal, INDIA |
B71246763 |
* Date of charge modification
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
(Rs. in Million)
|
Particulars |
30.06.2015 (Unaudited) |
|
Income from Operations |
|
|
(a) Net sates/income from operations (Net of excise duty) |
4698.175 |
|
(b) Other Operating Income |
92.137 |
|
Total income from operations (net) |
4790.312 |
|
Expenses |
|
|
(a) Cost of materials consumed |
2335.103 |
|
(b) Purchases of stock-in trade |
183.476 |
|
(c) Changes in inventories of finished goods. work-in-progress and
stock in trade |
(108.701) |
|
(d) Employee benefits expense |
417.764 |
|
(e) Depreciation and Amortization Expenses |
157.512 |
|
(f) Other Expenses |
1349.898 |
|
(g)Foreign Exchange |
|
|
Total expenses |
4335.052 |
|
Profit/ (Loss) from operations before other Income, finance costs and
exceptional Items |
455.260 |
|
Other Income |
109.975 |
|
Profit/ (Loss) from operations before other income, finance costs and
exceptional items |
565.235 |
|
Finance Costs |
394.269 |
|
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items |
170.966 |
|
Exceptional items |
0.000 |
|
Profit/ (Loss) from ordinary activities before tax |
170.966 |
|
Tax expenses |
52.208 |
|
Net Profit / (Loss) from ordinary activities after tax |
118.758 |
|
Net Profit/ (Loss) after taxes, minority interest and share of
profit/(loss) of associates |
|
|
Paid up equity share capital (Face Value of Rs 10/-each) |
356.955 |
|
Reserve excluding Revaluation Reserve as per Balance Sheet of previous
accounting year |
|
|
Earnings per share (before extraordinary items) of Rs.10/- each (not
annualized): |
|
|
(a) Basic |
0.33 |
|
(b) Diluted |
0.33 |
|
Particulars |
30.06.2015 (Unaudited) |
|
PARTICULARS OF SHAREHOLDING |
|
|
A. Public Shareholding |
|
|
- Number of shares |
167723950 |
|
- Percentage of shareholding |
46.99% |
|
Promoters and Promoter group shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of shares |
32675270 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
17.27% |
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
9.15% |
|
b) Non Encumbered |
|
|
- Number of shares |
156551102 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
82.73% |
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
43.86% |
Note:
1. The above financial results, as reviewed by Audit Committee, were approved by the Board of Directors at their meeting held on July 30, 2015. The above results have been subjected to Limited Review by the Statutory Auditors.
2. The Company operates mainly in one business segment viz.
Pipes and all other activities revolve around the main business.
3. The Board of Directors of the Company has approved the Scheme of
Amalgamation (the Scheme) of its wholly owned subsidiary, Mahadev Vyapar
Private Limited with the Company with effect from April 01, 2014. No effect of
the Scheme pending necessary approvals etc. has been given in the Financial
Statements.
4. a) In pursuance of the Order dated September 24, 2014 issued by the Hon'ble
Supreme Court of India (the Order) followed by the Ordinance promulgated by the
Government of India, Ministry of Law and Justice (legislative department) dated
October 21, 2014 (Ordinance) for implementing the order allotment of Parbatpur
coal block (coal block/mines) to the company which was under advanced stage of
implementation, has been cancelled w.e.f. April 01, 2015. In terms of the
Ordinance, the Company was allowed to continue the operations in the said block
till March 31, 2015. Accordingly, the same has been handed over to Bharat
Coking Coal Limited (BCCL) as per the direction from Coal India Ltd. (CIL) with
effect from April 01, 2015. The Company pending acceptance and recovery of the
amount of compensation, has filed a petition before the Hon'ble High Court at
Delhi, hearing whereof has been concluded and judgement is awaited.
Pending decision of the Court (i) Rs. 12888.411 Million incurred pertaining to
coal block including balances of advances, inventory, land and other fixed
assets till March 31, 2015 and (ii) Interest and other finance cost for the
period from April 01, 2015 onwards against the fund borrowed for the Coal block
amounting to Rs. 298.585 Million (net of incidental interest income of Rs.4.592
Million) has been considered as recoverable under current assets. The matter
being subjudice the amount of compensation are presently not ascertainable and
consequential adjustments in this respect will be given effect to on
ascertainment of the amounts there of.
b) In respect of Company's investment of Rs.82.281 Million in North Dhadhu Coal
Block, allotted in joint venture with other companies, in view of the
management, the compensation to be received in terms of the ordinance is
expected to cover the cost incurred by the Joint Venture Companies and thereby
no dimunition in value of such investment is expected to arise and accordingly
no provision has been considered necessary by the management.
5. The Joint Lender Forum (JLF) in case of Electrosteel Steels Limited, an
associate company has since approved "in principle" the decision for
the invocation of Strategic Debt Structuring (SDR) in terms of RBI Guidelines
and among other things is exploring the Investment proposals in the said
company. The Company's investment being strategic in nature, pending
implementation of these measures have been continued to be carried at cost.
6. Previous periods' figures have been regrouped/rearranged wherever necessary.
FIXED ASSETS
Tangible assets
- Land Freehold
- Land Leasehold
- Building
- Railway Siding
- Plant and Machinery
- Office Equipment
- Furniture and Fixtures
- Vehicles
- Livestock
Intangible assets
- Computer Software
- Mining Rights
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or oher
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. 66.40 |
|
|
1 |
Rs. 101.19 |
|
Euro |
1 |
Rs. 73.89 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
SANS |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
----- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
56 |
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
unfavorable 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.