MIPL-Logo

3decades

 

MIRA INFORM REPORT

 

 

Report No. :

502198

Report Date :

07.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

TATA METALIKS LIMITED

 

 

Registered Office :

Tata Centre, 10th Floor, 43 Jawarlal Nehru Road, Kolkata – 700071, West Bengal

Tel. No.:

91-33-22881766

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

10.10.1990

 

 

Com. Reg. No.:

21-050000

 

 

Capital Investment / Paid-up Capital :

INR 252.880 Million

 

 

CIN No.:

[Company Identification No.]

L27310WB1990PLC050000

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AABCT1389B

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

The Company is engaged in the manufacture and sale of pig iron and ductile iron pipes. (Registered Activity)

 

 

No. of Employees :

1166 (Approximately) 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Status :

Good

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exist

 

 

Comments :

TATA Metaliks Limited is a subsidiary of “Tata Steel Limited” and was incorporated in the year 1990. It is engaged in manufacturing and selling of pig iron and ductile iron pipe.


Tata Metaliks has its state-of-the-art manufacturing plant at Kharagpur, West Bengal, India. The plant's annual hot metal production capacity is 500,000 tonnes out of which 200,000 tonnes is converted into Ductile Iron (DI) pipes and 300,000 tonnes into pig iron.


For the financial year 2017, the company achieved revenue growth of 1.43% as compared to the previous year along with a fair profit margin of 8.29%.


The sound financial risk profile of the company is marked by adequate net worth base along with strong debt protection metrics due to negligible debt balance sheet profile.


As per the quarterly financials of December 2017, the company has achieved revenue of INR 4899.000 million along with a profit of INR 403.500 million.

Payment seems to be regular.


In view of aforesaid, the company can be considered for business trade terms and conditions.


Note: The Scheme of Amalgamation between Subject Company and its wholly owned subsidiary i.e. Tata Metaliks DI Pipes Limited (TMDIPL) with Tata Steel Limited was withdrawn due to multiple factors including inordinate delay in obtaining requisite regulatory and statutory approvals along with the significant dilution in the intended synergies that were initially envisaged.


Subsequently, a fresh Scheme of Amalgamation (Scheme) between TMDIPL and the Subject Company was filed with the Hon’ble High Court, Calcutta, aimed to realise greater benefits of financial, managerial, technical, distribution and marketing synergies between the entities to maximise stakeholder value. The said Scheme has received the approval of the Hon’ble High Court, Calcutta and became effective from 22 December, 2016. Upon the effectiveness of this Scheme, Subject Company has two integral business segments i.e. Pig Iron and Ductile Iron Pipes – both structured as two separate divisions. Pursuant to the effectiveness of the Scheme, TMDIPL has ceased to be in existence as the subsidiary of Subject Company.

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long Term Borrowing=AA

Rating Explanation

High degree of safety and very low credit risk.

Date

27.11.2017

 

Rating Agency Name

ICRA

Rating

Short Term Borrowing=A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

27.11.2017

 

 

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 31-03-2018.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 07.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED BY

 

Name :

Mr. Rajesh

Designation :

Vice President Executive

Contact No.:

91-33-22881766

Date :

04.04.2018

 

(Tel. No.: 91-33-66134205 – Not working)

 

 

 

LOCATIONS

 

Registered Office/ Head Office/ Marketing and Sales Office :

Tata Centre, 10th Floor, 43 Jawarlal Nehru Road, Kolkata – 700071, West Bengal, India

Tel. No.:

91-33-22881766 / 66134200

Fax No.:

91-33-22884372

E-Mail :

sankar.bhattacharya@tatametaliks.co.in

investors@tatametaliks.co.in

tml@tatametalliks.co.in

Website :

www.tatametaliks.com

 

 

Customer Service Centre :

 

P-94/2, Benaras Road, Kajipara, Belgachia, Netaji Ghar P.O., Howrah, West Bengal, India Pin Code - 711108

 

 

Delhi Office :

E- 7/14, 1st Floor, Vasant Vihar, New Delhi - 110057, India

 

 

Manufacturing Plants :

P.O. Samraipur, Gokulpur Kharagpur, District: Paschim Mednipur - 721301, West Bengal, India

Tel. No.:

91-3222-233290

 

 

North Zone Office :

Located at:

 

  • Rajasthan
  • Madhya Pradesh
  • Uttar Pradesh

 

 

South and West Zone Office :

 

Located at:

 

  • Andhra Pradesh
  • Telangana
  • Tamil Nadu
  • Karnataka
  • Kerala

 

 

West Zone Office :

 

Located at:

 

  • Gujarat
  • Maharashtra

 

 

East Zone Office :

Located at:

 

  • West Bengal
  • North-Eastern States
  • Sikkim and Andaman
  • Nicobar Islands

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Sandeep Kumar

Designation :

Managing Director

Address :

Flat No. 6B, South Western Side 14/5A Burdwan Road, 6th Floor, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

02/12/1968

Qualification :

• Mining Engineer from ISM, Dhanbad;

• Post-graduate in International Trade from IIFT, New Delhi

Experience :

Steel Manufacturing

Date of Appointment :

20.03.2017

DIN No.:

02139274

 

 

Name :

Mr. Koushik Chatterjee

Designation :

Director

Address :

NCPA Residential Apartment, A Wing, 22nd Floor, Flat No. 221, Nariman Point, Mumbai – 400021, Maharashtra, India

Date of Appointment :

24.07.2009

DIN No.:

00004989

 

 

Name :

Mr. Sanjiv Paul

Designation :

Director

Address :

Flat-12, 10, Judges Court Road, Alipore, Kolkata – 700027, West Bengal, India

Date of Appointment :

30.03.2013

DIN No.:

00086974

 

 

Name :

Mr. Amit Ghosh

Designation :

Director

Address :

63C, Townshend Road, Kolkata – 700025, West Bengal, India

Date of Birth/Age :

20.07.1953

Qualification :

• B.Com (Hons.)

• AICWA from ICAI

• PGDBM from XLRI, Jamshedpur

Experience :

Corporate Finance

Date of Appointment :

24.01.2017

DIN No.:

00482967

 

 

Name :

Dr. Rupali Basu

Designation :

Director

Address :

1A, Lee Road, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

23/11/1963

Qualification :

• Medical degree from R G Kar Medical College, Kolkata

• Post-Graduation in Health and Hospital Management from Delhi University and Harvard Medical International

Experience :

Hospital and Healthcare

Date of Appointment :

24.01.2017

DIN No.:

01778854

 

 

Name :

Ms. Samita Jigar Shah

Designation :

Director

Address :

I-13, Plot-85, I Maker Tower, G D Somani Marg, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

02/02/1971

Qualification :

• B.A (Economics)

• PGDM from IIM, Ahmedabad

Experience :

Investment Banking and Risk Management

Date of Appointment :

24.03.2015

DIN No.:

02350176

 

 

Name :

Krishnava Satyaki Dutt

Designation :

Director

Address :

12 H Block, New Alipore, Kolkata – 700053, West Bengal, India

Date of Appointment :

05.07.2012

DIN No.:

02792753

 

 

Name :

Mr. Venugopal Pingali

Designation :

Director

Address :

House No. 50, Circuit House Area, Office S.R. Colony Bishtupur, District: Singhbhum, Jamshedpur – 831001, Jharkhand, India

Date of Appointment :

05.01.2012

DIN No.:

05166520

 

 

KEY EXECUTIVES

 

Name :

Mr. Sankar Bhattacharya

Designation :

Company Secretary

Address :

Flat 2B-1148/A, M G Road, Keorapukur Bazar, Behind K P Bazar, Kolkata – 700082, West Bengal, India

Date of Appointment :

01.02.2012

PAN No.:

AGXPB3255F

 

 

Name :

Subhra Sengupta

Designation :

Chief Financial Officer

Address :

Block - 1, Flat D/3 97, Chandi Ghosh Road, Kolkata – 700040, West Bengal, India

Date of Appointment :

24.04.2014

PAN No.:

AKDPS3654F

 

 

Name :

Mr. Rajesh

Designation :

Vice President Executive

 

 

COMMITTEES OF BOARD (As on 1 June, 2017)

 

 

Audit Committee
  • Mr. Krishnava Dutt – Chairman
  • Dr. Pingali Venugopal – Member
  • Ms. Samita Shah – Member
  • Mr. Amit Ghosh - Member

 

 

Stakeholders’ Relationship Committee
  • Dr. Pingali Venugopal – Chairman
  • Mr. Sanjiv Paul – Member
  • Mr. Sandeep Kumar – Member
  • Dr. Rupali Basu - Member

 

 

Risk Management Committee
  • Mr. Sanjiv Paul – Chairman
  • Ms. Samita Shah – Member
  • Mr. Sandeep Kumar – Member
  • Mr. Subhra Sengupta – Member
  • Mr. Amit Ghosh - Member

 

 

Nomination & Remuneration Committee
  • Dr. Pingali Venugopal – Chairman
  • Mr. Koushik Chatterjee – Member
  • Mr. Krishnava Dutt - Member

 

 

Corporate Social Responsibility Committee
  • Dr. Pingali Venugopal – Chairman
  • Mr. Sanjiv Paul – Member
  • Ms. Samita Shah – Member
  • Mr. Sandeep Kumar – Member
  • Dr. Rupali Basu - Member

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

(A) Promoter and Promoter Group

12667590

50.09

(B) Public

12620410

49.91

Grand Total

25288000

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

A1) Indian

0.00

Any Other (specify)

12667590

50.09

TATA STEEL LIMITED

12667590

50.09

Sub Total A1

12667590

50.09

A2) Foreign

0.00

A=A1+A2

12667590

50.09

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of

B1) Institutions

0

0.00

Mutual Funds/

2286748

9.04

BIRLA SUN LIFE TRUSTEE COMPANY PRIVATE LIMITED A/C BIRLA SUN LIFE SMALL AND MIDCAP FUND

665775

2.63

HDFC SMALL CAP FUND

625073

2.47

ITPL - INVESCO INDIA CONTRA FUND

535045

2.12

Foreign Portfolio Investors

799668

3.16

Financial Institutions/ Banks

57452

0.23

Insurance Companies

363731

1.44

Sub Total B1

3507599

13.87

B2) Central Government/ State Government(s)/ President of India

0

0.00

Central Government/ State Government(s)/ President of India

250000

0.99

Sub Total B2

250000

0.99

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

7073093

27.97

Individual share capital in excess of INR 0.200 Million

739323

2.92

DOLLY KHANNA

273697

1.08

Any Other (specify)

1050395

4.15

Bodies Corporate

641767

2.54

Foreign Individuals or NRI

150701

0.60

Trusts

16200

0.06

Clearing Members

241727

0.96

Sub Total B3

8862811

35.05

B=B1+B2+B3

12620410

49.91

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is engaged in the manufacture and sale of pig iron and ductile iron pipes. (Registered Activity)

 

 

Products/ Services :

NIC Code No.

Product/ Services Description

Manufacturing and selling of Pig Iron

24101

Manufacturing and selling of Ductile Iron Pipe

24311

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

1166 (Approximately) 

 

 

Bankers :
  • State Bank of India
  • HDFC Bank
  • DBS Bank
  • Central Bank
  • Kotak Mahindra Bank
  • IDBI Bank
  • Axis Bank
  • IndusInd Bank
  • ICICI Bank
  • RBL Bank

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term Loans From Banks

0.000

288.952

Short-term borrowings

 

 

Repayable on Demand From banks

 

 

-Working capital demand loans

200.000

200.000

- Cash credit

19.844

65.215

Buyer's credit from banks

158.920

115.127

Total

378.764

669.294

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Bengal Intelligent Park, Building Alpha, 1st Floor, Block EP and GP, Sector – V, Salt Lake Electronic Complex, Kolkata – 700091, West Bengal, India

Tel. No.:

91-33-66121000

Fax No.:

91-33-66121001

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company :

Tata Steel Limited

 

 

Fellow Subsidiaries :
  • Jamshedpur Utilities and Services Company Limited
  • Tayo Rolls Limited
  • Tata Sponge Limited
  • Tata Pigments Limited
  • T S Global Procurement Company Pte. Limited
  • The Indian Steel and Wire Products Limited

 

 

Joint Venture of Holding Company :
  • TM International Logistics Limited
  • TKM Global Logistics Limited
  • Tata Bluescope Limited

 

 

Trust incorporated by the Company :

Sadbhavna Trust

 

 

CAPITAL STRUCTURE

 

As on 26.07.2017

 

Authorised Capital : INR 3750.000 Million

 

Issued, Subscribed & Paid-up Capital : INR 252.880 Million

 

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

INR 10/- each

INR 500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25288000

Equity Shares

INR 10/- each

INR 252.880 Million

 

 

 

 

 

PARTICULARS

31.03.2017

No. of Shares

Amount

Reconciliation of Number of shares

 

 

Equity Shares

 

 

Issued, subscribed and fully paid up:

 

 

At beginning of the year

25288000

252.880

Issued during the year

--

--

At end of the year

25288000

252.880

 

PARTICULARS

31.03.2017

No. of Shares

%

Shares held by holding company or its subsidiaries

 

 

Equity Shares

 

 

Tata Steel Limited (Holding Company)

12667590

50.09%

 

 

 

Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

 

 

Equity Shares

 

 

Tata Steel Limited (Holding Company)

12667590

50.09%

 

Equity Share Capital

 

Rights, preferences and restrictions attached to shares

 

Equity Shares

 

The Company has one class of equity shares having a par value of INR 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

 

 

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

252.880

252.880

1252.880

(b) Reserves & Surplus

1818.913

737.526

633.782

(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)

2071.793

990.406

1886.662

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1575.063

1725.950

933.333

(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

105.311

79.804

76.043

(e) Retirement benefit obligations

73.129

38.184

0.000

Total Non-current Liabilities (3)

1753.503

1843.938

1009.376

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1732.970

1341.130

518.205

(b) Trade payables

1706.573

2487.297

2521.739

(c) Other current liabilities

3392.159

1927.366

977.879

(d) Short-term provisions

0.000

0.000

127.268

(f) Retirement benefit obligations

0.000

2.100

0.000

Total Current Liabilities (4)

6831.702

5757.893

4145.091

 

 

 

 

TOTAL

10656.998

8592.237

7041.129

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

5895.188

3521.720

1997.137

(ii) Intangible Assets

2.131

4.148

4.142

(iii) Capital work-in-progress

335.448

876.897

4.429

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.152

0.152

1338.201

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

617.706

(e) Other Non-current assets

196.326

545.586

1.856

Total Non-Current Assets

6429.245

4948.503

3963.471

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1601.906

1200.512

721.743

(c) Trade receivables

1879.204

1706.553

2151.080

(d) Cash and cash equivalents

21.612

15.010

22.865

(e) Short-term loans and advances

0.000

0.000

166.359

(f) Other current assets

725.031

721.659

15.611

Total Current Assets

4227.753

3643.734

3077.658

 

 

 

 

TOTAL

10656.998

8592.237

7041.129

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

14100.958

13901.786

10975.556

 

Other Income

14.551

15.811

13.043

 

TOTAL

14115.509

13917.597

10988.599

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

6594.873

6563.285

7289.643

 

Purchases of Stock-in-Trade

0.000

0.000

0.000

 

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

(60.256)

(151.922)

43.508

 

Employees benefits expense

848.827

719.865

353.111

 

Other expenses

4468.168

4609.455

1763.048

 

Exceptional Items

0.000

0.000

17.71

 

TOTAL

11851.612

11740.683

9467.020

 

 

 

 

 

 

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

2263.897

2176.914

1521.579

 

 

 

 

 

Less

FINANCIAL EXPENSES

375.043

458.813

322.011

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1888.854

1718.101

1199.568

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

364.269

329.636

125.219

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

1524.585

1388.465

1074.349

 

 

 

 

 

Less

TAX

356.100

260.226

231.793

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

1168.485

1128.239

842.556

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

NA

1191.983

1008.929

 

Components and Stores parts

NA

2.349

6.463

 

TOTAL IMPORTS

NA

1194.332

1015.392

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic

46.21

44.62

33.32

 

Diluted

45.89

44.40

33.08

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

2039.952

1033.635

686.667

Cash generated from operations

1102.513

1151.927

1014.965

Net cash flow from operating activity

770.400

908.328

786.277

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Unaudited

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

4080.100

4502.400

4899.000

Total Expenditure

3585.000

3833.300

4172.900

PBIDT (Excl OI)

495.100

669.100

726.100

Other Income

105.700

2.300

1.000

Operating Profit

600.800

671.400

727.100

Interest

93.300

99.900

100.500

Exceptional Items

NA

NA

NA

PBDT

507.500

571.500

626.600

Depreciation

116.100

119.700

122.700

Profit Before Tax

391.400

451.800

503.900

Tax

85.200

114.600

97.700

Provisions and contingencies

NA

NA

NA

Profit After Tax

306.200

337.200

406.200

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

306.200

335.500

403.500

 

 

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

48.64

44.81

71.54

 

 

 

 

Account Receivables Turnover

( Income / Sundry Debtors)

7.50

8.15

5.10

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

94.45

138.32

126.27

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.41

1.81

2.11

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.36

0.49

0.76

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.98

0.99

0.82

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

2.58

4.14

1.13

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

3.30

5.81

2.20

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

3.01

4.45

1.06

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

6.04

4.74

4.73

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

[(PAT / Sales) * 100]

%

8.29

8.12

7.68

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

10.96

13.13

11.97

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

56.40

113.92

44.66

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.62

0.63

0.74

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.38

0.42

0.57

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.19

0.12

0.27

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

21.15

16.22

1.71

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.62

0.63

0.74

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

Market Value

INR 791.00/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

1252.880

252.880

252.880

Reserves & Surplus

633.782

737.526

1818.913

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1886.662

990.406

2071.793

 

 

 

 

long-term borrowings

933.333

1725.950

1575.063

Short term borrowings

518.205

1341.130

1732.970

Current Maturities of Long term debt

686.667

1033.635

2039.952

Total borrowings

2138.205

4100.715

5347.985

Debt/Equity ratio

1.133

4.140

2.581

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

10975.556

13901.786

14100.958

 

 

26.661

1.433

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

10975.556

13901.786

14100.958

Profit/(Loss)

842.556

1128.239

1168.485

 

7.68%

8.12%

8.29%

 

 

 

LEGAL CASES

 

High Court of Calcutta – Original Side

Case Status Information System

 

                               Case Status : Pending

                                    Status of : INCOME TAX APPEAL TENDERED 127 OF 2017

                                    Litigants : THE PRINCIPAL CIT-1, KOLKATA Vs. TATA METALIKS LIMITED

                                   Pet’s Adv : S. LAMBA

                                  Res’s Adv :

                 Last Date of Hearing : Monday, March 05, 2018

     Next / Final Date of Hearing : Monday, April 02, 2018

                      Case Updated on : Thursday, March 29, 2018

                                    Category : INCOME TAX :  REVENUE

 

Connected Application(s)

No Connected Application

 

Connected Matter(s)

No Connected Cases

 

 

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

Yes

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

Yes

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

 

GENERAL CORPORATE INFORMATION

 

The Company is a subsidiary of Tata Steel Limited. The Company is engaged in the manufacture and sale of pig iron and ductile iron pipes. The Company is having its manufacturing plant at Kharagpur in the state of West Bengal.

 

OPERATION AND PERFORMANCE

 

The Company recorded a turnover of INR 14100.000 Million for FY 2016-17 as compared to INR 13900.000 Million for FY 2015-16. The EBITDA for FY 2016-17 was INR 2260.000 Million, which is higher by 4% than INR 2170.000 Million for FY 2015-16.

 

The Company recorded its highest ever Profit after Tax of INR 1160.000 Million, which is 4% higher than that of FY 2015-16. This was primarily due to significant improvement in overall performance of Ductile Iron (DI) pipes business. DI Pipe business has recorded a 32% growth in turnover compared to the previous year and a 41% increase in production of finished DI Pipes.

 

During the year, the Company has commissioned the following capital projects which would have significant bearing on the operational efficiencies and volume growth in the years to come:

 

• Capacity expansion of DI pipe plant to 200,000 tonnes by installing a new casting machine and a finishing line during Quarter 2;

 

• Coke Oven Project on BOOT (Build Own Operate Transfer) basis having a capacity of 10,000 tonnes/ month of BF grade coke during Quarter 3;

 

• 10 MW Captive Power Plant utilising exhaust flue gases from Coke Ovens during Quarter 3; and

 

• Modernisation and expansion of Mini-Blast Furnace (MBF) - 1 in Quarter 4.

 

Several cost optimisation initiatives have immensely helped to reduce costs thereby helping in achieving a robust bottom-line.

 

Pig Iron

 

The Pig Iron (PI) division produced 381,968 tonnes of hot metal against last year’s production of 433,437 tonnes. Out of the total hot metal produced, 177,545 tonnes were utilised for manufacture of DI pipes and the balance 204,358 tonnes have been utilised for manufacture of Pig Iron. Hot metal production has been lower than previous year on account of a 91 days shutdown of MBF - 1 during last two quarters of FY 2016-17. PI division recorded a total sale of 199,084 tonnes with a turnover of INR 5600.000 Million crores including inter segment transfers.

 

Ductile Iron pipe

 

The Ductile Iron (DI) pipe business of the Company has recorded its highest ever production of 187,253 tonnes of finished pipes and highest ever dispatch of 182,480 tonnes, thereby resulting in its highest ever turnover of INR 8500.000 Million. The result is attributable to the successful execution of the expansion of DI pipe manufacturing plant and installation of a new casting and finishing line.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Industry Structure and Development

 

Despite the slowdown in the global economy, the Indian economy registered a reasonable growth in the first two quarters of FY 2016-17 benefiting from a good monsoon after successive rain-deficient years. Economic growth however, slowed down to 7% in Q3 FY 2016-17 as compared to 7.4% in Q2 FY 2016-17 due to the impact of demonetisation. GDP growth of 7.1% in financial year 2016-17 as against 7.6% in FY’16 was primarily due to industrial slowdown and the possible impact of demonetisation. Despite this, India will remain one of the fastest growing major economies globally in 2017.

 

During the year, the global steel industry gained positive momentum with an upturn in steel prices driven by developments in China and periodic surge in raw material prices. According to provisional data by Joint Plant Committee, Govt. of India, Indian crude steel production has recorded a growth of 9% year-on-year in FY 2016-17 as compared to previous year. In FY 2016-17, India’s crude steel production was 97.39 million tonnes against 89.79 million tonnes in the previous fiscal. On the consumption front, India’s finished steel consumption increased by 3% year-on-year to 83.93 million tonnes during FY 2016-17 against 81.52 million tonnes in last fiscal. The threat from cheap imports from China was mitigated to a large extent by imposition of protectionist measures by the Government of India (GoI).

 

Export of pig iron from India remained subdued for first three quarters of FY 2016-17 due to global slowdown. It finally picked up in the last quarter and overall for the year the volume of pig iron exported ended at the same level as the last year. On the domestic front, pig iron demand continued to remain depressed due to low overall industrial activity in the country and impact of demonetisation. Demand, however, is expected to improve with government’s focus on reforms and increased investments in infrastructure and construction sectors including “Make in India” initiatives. Ductile Iron (DI) pipe demand continued to show a robust growth with the Government’s on-going and proposed investments in water, sanitation and irrigation schemes, especially in new states like Telangana and for development of smart cities. The medium to long term outlook of DI pipe is encouraging with several States planning for execution of mega water supply and sewage projects. The Telangana Water Grid Project, Lift Irrigation Project of Orissa are some of the big projects, where work has started. The endeavor of GoI in clearing the stalled projects, formalisation of the newly announced scheme “AMRUT” (Atal Mission for Rejuvenation & Urban Transformation) coupled with signs of lowering the interest rates by RBI will have a positive impact on the temporary slowdown being experienced by the industry in the recent past.

 

An important component of cost of production of pig iron and DI pipes is the cost of coke. International price of coke continued its upward trend from USD 123/t CFR in the beginning of FY 2016-17 to USD 345/t CFR in Nov’16 and then closing the year at a level of USD 284/t CFR. Price of coking coal from Australia showed a similar trend of increase from USD 82/t FOB in the beginning of FY 2016-17 to USD 302/t FOB in Nov’16 and then ending the year at a level of USD 160/t FOB. Steep rise in coal price resulted in high price of the domestic coke and the same got further aggravated with the imposition of anti-dumping duty of USD 25.2/t on Chinese coke by the GoI. However, with commissioning of coke plant during FY 2016-17, a judicious mix of converted coke, imported and domestic coke was used to optimise its overall cost base.

 

International iron ore fines price also saw increase from average of USD 52/t CFR China in FY 2015-16 to USD 65/t CFR in FY 2016-17.

 

Pig iron prices also moved up by approx. 20% during the year 2016-17 although not to the extent of increase in coal/coke price. During the first two quarters, as there were no export of pig iron, there was pressure on pig iron prices in the domestic market as a result of oversupply. Since one of the Company’s blast furnaces was down for a 91 days for modernisation, sale of pig iron was rationalised in various markets to maximise the price realisation despite adverse market conditions.

 

Volatility in price of value-added products like DI pipe is generally much lower compared to pig iron which is an intermediate product and of commodity nature. Therefore, DI pipe price trend showed far more stability over the year.

 

Operational and Financial Performance

 

Production of hot metal was 381,968 tonnes in 2016-17 against 433,437 tonnes in the previous year, a drop of 12% due to 91 days shutdown of MBF No. 1 for modernisation and expansion. Finished DI pipe production was 187,253 tonnes in 2016-17 as against 133,211 tonnes in 2015-16, a significant increase of 41% as a result of capacity expansion and improved operating efficiencies. Despite 91 days shutdown of one of the blast furnaces, there was an increase in turnover in 2016-17 to INR 14100.000 Million as compared to INR 13900.000 Million in 2015-16 due to higher sale of value added product, DI pipes. Company delivered its best ever performance for third year in succession with a net profit after tax of INR 1160.500 Million in 2016-17 as against INR 1122.700 Million achieved a year ago.

 

Outlook

 

Production of hot metal in 2017-18 is expected to increase signifi cantly as compared to previous year, with the newly rebuilt furnace with modern features (MBF - 1) and availability of two furnaces for production for the full year unlike 2016-17. Molten metal for production of DI pipes is also projected to increase in view of increased capacity of DI pipe plant which would be available for the entire year as against for three quarters in the previous year. Sale of pig iron and DI pipes is also expected to increase in 2017-18 as a result of higher production and robust demand. There would be signifi cant gain in cost effi ciency due to merger of pig iron and DI pipes businesses into one entity and also due to availability of 10 MW captive power from the newly commissioned power plant, as grid power is relatively more expensive in West Bengal. There are proposals under consideration for further reduction in production cost of hot metal. All these would create signifi cant value for the Shareholders.

 

Amalgamation

 

During the year, the Scheme of Amalgamation between the Company and its wholly owned subsidiary i.e. Tata Metaliks DI Pipes Limited (TMDIPL) with Tata Steel Limited was withdrawn due to multiple factors including inordinate delay in obtaining requisite regulatory and statutory approvals along with the significant dilution in the intended synergies that were initially envisaged.

 

Subsequently, a fresh Scheme of Amalgamation (Scheme) between TMDIPL and the Company was filed with the Hon’ble High Court, Calcutta, aimed to realise greater benefits of financial, managerial, technical, distribution and marketing synergies between the entities to maximise stakeholder value. The said Scheme has received the approval of the Hon’ble High Court, Calcutta and became effective from 22 December, 2016.

 

Upon the effectiveness of this Scheme, the Company has two integral business segments i.e. Pig Iron and Ductile Iron Pipes – both structured as two separate divisions.

 

Pursuant to the effectiveness of the Scheme, TMDIPL has ceased to be in existence as the subsidiary of the Company.

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Finance Lease

470.900

 

Term Loans from Banks

1104.163

436.998

8.5% Non Cum. Redeemable Pref Shares

0.000

1000.000

Short-term borrowings

 

 

Buyer's credit from banks

943.825

742.028

Acceptances

159.112

102.382

Overdraft from banks

251.269

1.217

Bill discoundt

0.000

115.161

Total

2929.269

2397.786

 

 

INDEX OF CHARGES

 

Charges Registered

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Amount

Address

1

C05343884

10489157

ICICI Bank

07/04/2014

15/05/2014

1200000000.0

ICICI Bank Towers Bandra Kurla Complex Mumbai MAHARASHTRA 400051 INDIA

2

C57925836

10429914

INDUSIND BANK LTD.

01/06/2013

02/07/2015

1100000000.0

SAVITRI TOWER3A, UPPER WOOD STREET KOLKATA WEST BENGAL 700017 INDIA

3

B72861115

10418614

CENTRAL BANK OF INDIA

29/03/2013

-

6430000000.0

Corporate Finance Branch,33, Netaji Subhas Road Kolkata WEST BENGAL 700001 INDIA

4

B73498354

10420896

INDUSIND BANK LTD.

29/03/2013

-

50000000.0

Savitri Towers 3A Upper Wood Street KOLKATA WEST BENGAL 700017 INDIA

5

B68507557

10403985

TATA CAPITAL FINANCIAL SERVICES LIMITED

08/02/2013

-

250000000.0

One Forbes, Dr. V. B. Gandhi Marg, Fort Mumbai MAHARASHTRA 400001 INDIA

6

B70212220

10410162

INDUSIND BANK LTD.

25/01/2013

-

120000000.0

Savitri Towers 3A Upper Wood Street KOLKATA WEST BENGAL 700017 INDIA

7

B68823673

10405598

DBS Bank Ltd.

04/01/2013

-

700000000.0

4A, Nandalal Basu Sarani Kolkata WEST BENGL 700071 INDIA

8

B63251516

10389927

The Federal bank Limited

06/11/2012

-

100000000.0

1 R. N. Mukherjee Road Kolkata WEST BENGAL 700001 INDIA

9

B63246607

10389933

The Federal bank Limited

06/11/2012

-

487500000.0

1 R. N. Mukherjee Road Kolkata WEST BENGAL 700001 INDIA

10

C25231200

10380193

ING VYSYA BANK LIMITED

14/09/2012

22/09/2014

450000000.0

4/1,MIDDLETON STREET,SIKKIM HOUSE, KOLKATA WEST BENGAL 700071 INDIA

 

 

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS

FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER, 2017

(INR In Million)

 

 

Particulars

3 Months Ended

3 Months Ended

Quarter Ended

31.12.2017

30.09.2017

31.12.2017

(Audited)

(Audited)

(Audited)

 

 

 

 

Income from Operations

 

 

 

Net Sales / Income from Operations

4899.000

4502.400

13481.500

Other Operating Income

1.000

2.300

108.900

Total Income from Operations (net)

4900.000

4504.700

13590.400

Expenditure

 

 

 

Cost of materials consumed

2848.300

2669.600

7925.500

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

89.200

84.500

(202.300)

Employee benefits expense

248.900

268.000

746.300

Finance Costs

100.500

99.900

293.700

Depreciation and amortisation expense

122.700

119.700

358.500

Excise duty on sale of goods

0.000

0.000

208.900

Other expenses

986.500

811.200

2910.000

Total Expenses

4396.100

4052.900

12240.600

 

 

 

 

Profit/ (Loss) before tax

503.900

451.800

1349.800

Tax expenses

 

 

 

-Current Tax

105.200

88.100

278.500

-Deferred Tax

(7.500)

26.500

19.000

Total Tax

97.700

114.600

297.500

Net Profit / (Loss) for the period/ year from continuing operations

406.20

337.200

1052.300

Loss for the period/ year from discontinued operations

(2.700)

(1.700)

(7.000)

Net Profit / (Loss) for the period

403.500

335.500

1045.300

Other Comprehensive Income

 

 

 

Items that will not be reclassified to profit or loss

7.400

(0.600)

6.200

Total Comprehensive Income for the period/ year

410.900

334.900

1051.500

Paid-up equity share capital (Face Value of INR 10 per share)

252.900

252.900

252.900

Other Equity

 

 

 

Earnings Per Share (for continuing operation) (of INR 10/- each)

Basic and diluted

16.07

13.33

41.61

Earnings Per Share (for discontinued operation) (of INR 10/- each)

Basic and diluted

(0.11)

(0.06)

(0.27)

Earnings Per Share (for continuing and discontinued operation) (of INR 10/- each)

Basic and diluted

15.96

13.27

41.34

 

 

SEGMENT REVENUE, SEGMENT RESULTS, SEGMENT ASSETS AND SEGMENT LIABILITIES

 

(INR In Million)

 

 

PARTICULARS

3 Months Ended

3 Months Ended

Quarter Ended

31.12.2017

30.09.2017

31.12.2017

(Audited)

(Audited)

(Audited)

 

 

 

 

Segment Revenue

 

 

 

Pig Iron

3755.500

3504.600

10055.200

Ductile Iron Pipe

2423.400

2176.700

6997.100

Total

6178.900

5681.300

17052.300

Less: Inter Segment Revenue

(1279.900)

(1178.900)

(3570.800)

Revenue from operations

4899.000

4502.400

13481.500

 

 

 

 

Segment Results

 

 

 

Pig Iron

302.000

269.200

768.400

Ductile Iron Pipe

302.400

282.500

875.100

Total Segment results before finance cost and tax

604.400

551.700

1643.500

Finance Costs

100.500

99.900

293.700

Profit before tax

503.900

451.800

1349.800

Tax Expenses

97.700

114.600

297.500

Profit for the period/ year from continuing operations

405.200

337.200

1052.300

Profit of the period/ year from discontinued operations

(2.700)

(1.700)

(7.00)

Profit for the period/ year from discontinued operations and continuing operations

403.500

335.500

1045.300

Other comprehensive income

7.400

(0.600)

6.200

Total Other comprehensive income

410.900

334.900

1051.500

 

 

 

 

Segment Assets

 

 

 

Pig Iron

6118.500

6170.500

6118.500

Ductile Iron Pipe

5154.700

5443.200

5154.700

Unallocable

77.100

66.300

77.100

Total

11350.300

11680.00

11350.300

 

 

 

 

Segment Liabilities

 

 

 

Pig Iron

2107.700

2138.900

2107.700

Ductile Iron Pipe

1205.300

1137.700

1205.300

Unallocable

4990.100

5767.100

4990.100

Total

8303.100

9043.700

8303.100

 

Notes:

 

  • The above results were reviewed by the Audit Committee on January 16, 2018 and taken on record by the Board of Director at its meeting held on February 02, 2018.

 

  • The loss from discontinued operation is totally attributable to the ordinary activities and do not include gain / loss on disposal of assets or settlement of liabilities.

 

  • Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Excise and service tax

9,485.23

8,913.16

Income tax

129.90

138.23

Sales tax and VAT

137.73

99.46

 

 

FIXED ASSETS

 

  • Freehold Land
  • Plant and Machinery
  • Furniture and Fixture
  • Office Equipment
  • Vehicles
  • Leasehold Land

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 64.98

UK Pound

1

INR 90.95

Euro

1

INR 79.51

 

 

INFORMATION DETAILS

 

Information Gathered by :

PNM

 

 

Analysis Done by :

PRI

 

 

Report Prepared by :

SUD

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

 

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.