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|
|
MIRA INFORM REPORT
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Report No. : |
503540 |
|
Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
SATHAVAHANA ISPAT LIMITED |
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|
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Registered
Office : |
314, Sri Ramakrishna Towers, Nagarjuna Nagar, Hyderabad – 500073, Telangana |
|
Tel. No.: |
91-40-23730813 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
08.11.1989 |
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Com. Reg. No.: |
36-010654 |
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Capital
Investment / Paid-up Capital : |
INR 509.000 Million |
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CIN No.: [Company Identification
No.] |
L27109TG1989PLC010654 |
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|
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IEC No.: [Import-Export Code No.] |
0991018303 |
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TIN No.: |
37670143150 29730230616 |
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GSTN : [Goods & Service Tax
Registration No.] |
36AACCS8982L1ZL 37AACCS8982L1ZJ (Andhra Pradesh) 29AACCS8982L1ZG (Karnataka) |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AACCS8982L |
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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
: |
[Registered Activity] |
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No. of Employees
: |
1537 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1989 and it is engaged in manufacturing of Pig Iron, Metallurgical Coke, Ductile Iron Pipes and Co-generation cum thermal power As per financials of March 2017, the company has registered decline in its revenue as compared to its previous year revenue and has reported losses. Rating takes into consideration the company’s continuous losses from its operations marked by moderate financial risk profile along with high debt balance sheet and stretched liquidity position. Rating also takes into account the delays in debt servicing by the company and classification of bank accounts as NPA. However, rating weakness is partially offset by established track record of business operations and sound net worth base of the company. Payment terms seems to be slow and delayed. In view of aforesaid, the company can be considered for business dealings at safe and secured trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
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 |
BRICKWORK |
|
Rating |
Long term rating = D |
|
Rating Explanation |
Lowest-credit-quality and very low prospects
of recovery |
|
Date |
31.01.2018 |
|
|
|
|
Rating Agency Name |
BRICKWORK |
|
Rating |
Short term rating = D |
|
Rating Explanation |
Lowest-credit-quality and very low prospects
of recovery |
|
Date |
31.01.2018 |
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 13.04.2018.
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
Tel. No.:
91-40-23730812 / 14 (Number is continuously
ringing)
Tel. No.:91-8392-271593 (Busy)
LOCATIONS
|
Registered Office : |
314, Sri Ramakrishna Towers, Nagarjuna Nagar, Hyderabad – 500073, Telangana, India |
|
Tel. No.: |
91-40-23730812 / 13/ 14 |
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Fax No.: |
91-40-23730566 |
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E-Mail : |
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Website: |
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Head / Corporate Office / Secretarial Department: |
505, 5th Floor, Block-I, Divyashakti Complex, Ameerpet, Hyderabad – 500016, Telangana, India |
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Factory 1: |
Haresamudram Village, Bommanahal Mandal, Ananthapur District, Andhra Pradesh, India |
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Factory 2: |
Kudithini Village, Korugodu Road, Bellary District, Karnataka, India |
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Corporate Office
2: |
Door No. 169/11, Grand Trunk Road, Contonment, Bellary - 583104, Karnataka, India |
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Tel. No.: |
91-8392-242655 / 242455 / 242355 / 271593 |
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Fax No.: |
91-8392-242955 |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Mr. Kolappa Thanu Pillai |
|
Designation : |
Chairman |
|
Address : |
6-2-913/914, 1st Floor, Progressive Towers, Khairatabad Hyderabad – 500004, Telangana, India |
|
Date of Appointment : |
29.01.1999 |
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DIN No.: |
00115814 |
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Name : |
Mr. Naresh Kumar Adusumilli |
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Designation : |
Managing Director |
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Address : |
1121, Nagarjuna Nagar, Ameerpet, Hyderabad – 500073, Telangana, India |
|
Date of Appointment : |
01.06.2009 |
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DIN No.: |
00112566 |
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|
Name : |
Mr. Shivaji Rao Adusumilli |
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Designation : |
Executive Vice Chairman |
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Address : |
8-3-966/22, Nagarjuna Nagar Sri Nagar, Punjagutta, Hyderabad - 500073 Telangana, India |
|
Date of Appointment : |
27.07.2015 |
|
DIN No.: |
00899415 |
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|
Name : |
Dr. Shailendra Dasari |
|
Designation : |
Executive Director (Operations) |
|
Address : |
#307, Prakruthi Enclave, No. 10, 6th Main, JB Nagar Hal 3rd Stage, Bangalore – 560075, Karnataka, India |
|
Date of Appointment : |
01.10.2015 |
|
DIN No.: |
07263439 |
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|
Name : |
Mr. Syed Anis Hussain |
|
Designation : |
Director |
|
Address : |
Plot No.371, Road No.80, Phase III, Near Film Nagar, Jublee Hills, Hyderabad -500033, Telangana, India |
|
Date of Appointment : |
30.09.2006 |
|
DIN No.: |
00115949 |
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|
Name : |
Mr. Srinivas Narayana Rao |
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Designation : |
Director |
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Address : |
Shivaji Nagar, Haresamudram, Anatapur District – 515873, Andhra Pradesh, India |
|
Date of Appointment : |
01.02.1999 |
|
DIN No.: |
00116021 |
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|
Name : |
Mr. Yalamanchili Prameela Rani |
|
Designation : |
Director |
|
Address : |
Flat No 101, Akshara Enclave Plot No 33, Kalyan Nagar II, Hyderabad – 500038, Telangana, India |
|
Date of Appointment : |
01.10.2014 |
|
DIN No.: |
03270909 |
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|
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|
Name : |
Mr. Madala Sreerama Mohanrao |
|
Designation : |
Director |
|
Address : |
A-6 8-3-229/1B, MG Residency, Tahir Villa, Check Post, Yusuf Guda, Hyderabad 500045, Telangana, India |
|
Date of Appointment : |
01.10.2014 |
|
DIN No.: |
05113980 |
KEY EXECUTIVES
|
Name : |
Mr. Kommineni Venkata Krishna Rao |
|
Designation : |
Chief Financial Officer and Company Secretary |
|
Address : |
Flat A1, Lalitha Avenue, Street No.10, 3-6-674, New No.405, Himayat Nagar, Hyderabad - 500029, Telangana, India |
|
Date of Appointment : |
29.06.1997 |
|
DIN No.: |
AFKPK7486B |
SHAREHOLDING PATTERN
AS ON DECEMBER 2017
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
(A) Promoter & Promoter Group |
18810090 |
36.95 |
|
|
(B) Public |
32089910 |
63.05 |
|
|
Grand Total |
50900000 |
100.00 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER
GROUP
|
Category of
shareholder |
Total nos. shares
held |
Shareholding as a %
of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
||
|
Individuals/Hindu undivided Family |
12090090 |
23.75 |
|
|
Shri A. S.Rao |
1424000 |
2.80 |
|
|
Smt A. Mutya Bai |
4921585 |
9.67 |
|
|
Shri A. Naresh Kumar |
2019105 |
3.97 |
|
|
Shri A Ashok Kumar |
3319110 |
6.52 |
|
|
Smt N. Chilakamma |
210000 |
0.41 |
|
|
Smt Deepa N Adusumilli |
129100 |
0.25 |
|
|
Shri P. Ajay Kumar |
67190 |
0.13 |
|
|
Any Other (specify) |
4200000 |
8.25 |
|
|
Ganapati Adusumilli Fininvest Private Limited |
4200000 |
8.25 |
|
|
Sub Total A1 |
16290090 |
32.00 |
|
|
A2) Foreign |
0.00 |
||
|
Any Other (specify) |
2520000 |
4.95 |
|
|
Ganapati Holdings Pte Limited |
2520000 |
4.95 |
|
|
Sub Total A2 |
2520000 |
4.95 |
|
|
A=A1+A2 |
18810090 |
36.95 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
Category & Name of the Shareholders |
Total no. shares held |
Shareholding % calculated as per SCRR,
1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0.00 |
||
|
Mutual Funds/ |
26300 |
0.05 |
|
|
Financial Institutions/ Banks |
17300 |
0.03 |
|
|
Any Other (specify) |
9630996 |
18.92 |
|
|
Plutus Terra India Fund |
4990000 |
9.80 |
|
|
Antara India Evergreen Fund Limited |
4640996 |
9.12 |
|
|
Sub Total B1 |
9674596 |
19.01 |
|
|
B2) Central Government/ State Government(s)/ President of India |
0.00 |
||
|
B3) Non-Institutions |
0.00 |
||
|
Individual share capital upto INR 0.200 Million |
8939948 |
17.56 |
|
|
Individual share capital in excess of INR 0.200 Million |
4776887 |
9.38 |
|
|
Any Other (specify) |
8698479 |
17.09 |
|
|
Bodies Corporate |
2414566 |
4.74 |
|
|
NRI |
188813 |
0.37 |
|
|
Clearing Members |
518784 |
1.02 |
|
|
One Earth Capital Limited, Mauritius |
5576316 |
10.96 |
|
|
Sub Total B3 |
22415314 |
44.04 |
|
|
B=B1+B2+B3 |
32089910 |
63.05 |
BUSINESS DETAILS
|
Line of Business : |
[Registered Activity] |
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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||||||
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Terms : |
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 : |
1537 (Approximately) |
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Bankers : |
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Facilities : |
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Auditors : |
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|
Name : |
P.V.R.K. Nageswara Rao and Company Chartered Accountants |
|
Address : |
109, Metro Residency, 6-3-1247, Rajbhavan Road, Khairatabad, Hyderabad – 50082, Telangana, India |
|
Tel. No.: |
91-40-23311609/23312269 |
|
Fax No.: |
91-40-23319591 |
|
E-Mail : |
|
|
|
|
|
Secretarial Auditors : |
|
|
Name : |
D. Hanumanta Raju Company Chartered Accountants |
|
Address: |
Hyderabad, Telangana, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
S. Mahadevan and Company Practicing Cost Accountants |
|
Address: |
Coimbatore, Telangana, India |
|
|
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Related Parties : |
Not Available |
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
INR 10/- each |
INR 600.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50900000 |
Equity Shares |
INR 10/- each |
INR 509.000
Million |
|
|
|
|
|
a. Reconciliation
of the number of shares of equity shares outstanding is set out below.
|
Equity Shares |
As on 31.03.2017 |
|
|
Number
of Shares |
INR
in Million |
|
|
Equity Shares outstanding at the beginning of the year |
50900000 |
INR 509.000
Million |
|
Shares issued during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
50900000 |
INR 509.000 Million |
b. Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
As on 31.03.2017 |
|
|
Number
of Shares |
% holding |
|
|
Promoters group |
|
|
|
A. Mutya Bai |
4921585 |
9.67 |
|
A. Ashok Kumar |
3319110 |
6.52 |
|
Ganapati Adusumilli Fininvest Private Limited |
4200000 |
8.25 |
|
Other promoters
group |
|
|
|
One Earth Capital Limited |
5576316 |
10.96 |
|
Plutus Terra India Fund |
4990000 |
9.80 |
|
Antara India Evergreen Fund Limited |
4782643 |
9.40 |
c. Terms/ Rights attached to Equity Shares
The company has only one class equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.
d. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in promotion to the number of equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
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 |
509.000 |
509.000 |
509.000 |
|
(b) Reserves &
Surplus |
528.401 |
1176.095 |
1519.585 |
|
(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) |
1037.401 |
1685.095 |
2028.585 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
2829.929 |
3684.055 |
3610.333 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
254.570 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
57.736 |
21.820 |
17.943 |
|
Total Non-current
Liabilities (3) |
2887.665 |
3705.875 |
3882.846 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2627.528 |
2122.710 |
2634.663 |
|
(b) Trade payables |
4376.690 |
4477.157 |
3001.093 |
|
(c) Other current
liabilities |
1999.619 |
1321.185 |
2303.971 |
|
(d) Short-term provisions |
4.839 |
30.320 |
25.760 |
|
Total Current Liabilities
(4) |
9008.676 |
7951.372 |
7965.487 |
|
|
|
|
|
|
TOTAL |
12933.742 |
13342.342 |
13876.918 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7767.079 |
8110.047 |
3278.635 |
|
(ii) Intangible Assets |
0.136 |
0.209 |
0.222 |
|
(iii) Capital
work-in-progress |
288.531 |
261.394 |
4463.281 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
6.298 |
6.247 |
6.263 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
114.165 |
109.711 |
111.930 |
|
(e) Other Non-current
assets |
30.545 |
33.257 |
886.039 |
|
Total Non-Current Assets |
8206.754 |
8520.865 |
8746.370 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2197.390 |
1677.924 |
2183.864 |
|
(c) Trade receivables |
1148.462 |
1890.961 |
1612.019 |
|
(d) Cash and cash
equivalents |
878.274 |
824.803 |
794.825 |
|
(e) Short-term loans and
advances |
483.445 |
404.427 |
506.463 |
|
(f) Other current assets |
19.417 |
23.362 |
33.377 |
|
Total Current Assets |
4726.988 |
4821.477 |
5130.548 |
|
|
|
|
|
|
TOTAL |
12933.742 |
13342.342 |
13876.918 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
10956.012 |
11803.081 |
9796.112 |
|
|
Other Income |
118.305 |
90.862 |
70.053 |
|
|
TOTAL |
11074.317 |
11893.943 |
9866.165 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
5050.373 |
5617.006 |
6318.946 |
|
|
Purchases of
Stock-in-Trade |
3795.068 |
3525.004 |
1184.687 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(343.530) |
94.399 |
340.829 |
|
|
Employees benefits
expense |
391.593 |
400.502 |
220.192 |
|
|
Other expenses |
1183.711 |
1352.320 |
782.295 |
|
|
TOTAL |
10077.215 |
10989.231 |
8846.949 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
997.102 |
904.712 |
1019.216 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
1160.615 |
1042.964 |
493.382 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(163.513) |
(138.252) |
525.834 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
484.182 |
459.808 |
245.079 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(647.695) |
(598.060) |
280.755 |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
(254.570) |
22.442 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
(647.695) |
(343.490) |
258.313 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
(755.968) |
(412.478) |
(654.592) |
|
|
|
|
|
|
|
Add |
Depreciation on fixed
asset due to revision in estimated useful life |
0.000 |
0.000 |
(16.199) |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
(1403.663) |
(755.968) |
(412.478) |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
586.949 |
3640.538 |
1223.852 |
|
|
TOTAL EARNINGS |
586.949 |
3640.538 |
1223.852 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2795.643 |
5676.061 |
5036.210 |
|
|
Components and Spare
parts |
0.000 |
41.928 |
70.967 |
|
|
Capital Goods |
52.941 |
20.586 |
56.769 |
|
|
TOTAL IMPORTS |
2848.584 |
5738.575 |
5163.946 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(12.72) |
(6.75) |
5.07 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
1065.883 |
976.591 |
1152.402 |
|
Cash generated from operations |
1335.338 |
2359.533 |
1306.968 |
|
Net cash flow / (used) from
operating activities |
1338.505 |
2350.464 |
1329.975 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 1st
Quarter |
30.09.2017 2nd
Quarter |
31.12.2017 3rd
Quarter |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
Net Sales |
1159.430 |
432.330 |
394.900 |
|
Total Expenditure |
1456.030 |
648.380 |
756.950 |
|
PBIDT (Excluding Other Income) |
(296.600) |
(216.050) |
(362.050) |
|
Other Income |
37.330 |
4.750 |
13.360 |
|
Operating Profit |
(259.270) |
(211.300) |
(348.690) |
|
Interest |
269.160 |
352.180 |
364.990 |
|
Exceptional Items |
NA |
NA |
NA |
|
PBDT |
(528.430) |
(563.480) |
(713.680) |
|
Depreciation |
126.270 |
128.750 |
128.690 |
|
Profit Before Tax |
(654.700) |
(692.230) |
(842.370) |
|
Tax |
NA |
NA |
NA |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
(654.700) |
(692.230) |
(842.370) |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(654.700) |
(692.230) |
(842.370) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors
/ Income * 365) |
38.26 |
58.48 |
60.06 |
|
|
|
|
|
|
Account Receivables Turnover (Income /
Sunday Debtors) |
9.54 |
6.24 |
6.08 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
180.60 |
178.75 |
145.98 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.45 |
0.54 |
0.47 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.12 |
0.11 |
0.13 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
1.00 |
0.95 |
0.92 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
6.29 |
4.03 |
3.65 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
8.68 |
4.72 |
3.93 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
7.77 |
4.97 |
3.82 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
0.86 |
0.87 |
2.07 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin [(PAT / Sales) * 100] |
% |
(5.91) |
(2.91) |
2.64 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(5.01) |
(2.57) |
1.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
(62.43) |
(20.38) |
12.73 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.52 |
0.61 |
0.64 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.28 |
0.40 |
0.37 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.08 |
0.13 |
0.15 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
12.82 |
13.33 |
14.53 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.52 |
0.61 |
0.64 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 18.70/- |
FINANCIAL ANALYSIS
[all figures are
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 |
509.000 |
509.000 |
509.000 |
|
Reserves & Surplus |
1519.585 |
1176.095 |
528.401 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
2028.585 |
1685.095 |
1037.401 |
|
|
|
|
|
|
Long-term borrowings |
3610.333 |
3684.055 |
2829.929 |
|
Short term borrowings |
2634.663 |
2122.710 |
2627.528 |
|
Current Maturities of
Long term debt |
1152.402 |
976.591 |
1065.883 |
|
Total borrowings |
7397.398 |
6783.356 |
6523.340 |
|
Debt/Equity ratio |
3.647 |
4.026 |
6.288 |
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 |
9796.112 |
11803.081 |
10956.012 |
|
|
|
20.487 |
(7.177) |
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 |
9796.112 |
11803.081 |
10956.012 |
|
Profit / (Loss) |
258.313 |
(343.490) |
(647.695) |
|
|
2.64% |
(2.91%) |
(5.91%) |
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 |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
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 |
No |
|
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 |
CORPORATE
INFORMATION:
The company is a listed company in India and is engaged in the
manufacturer of serous products, metallurgical coke with co-generation pf
power. The ferrous products plant is in Anantapuramu district of Andhra Pradesh
and the metallurgical coke with co-generation power facility is in bellary
district, Karnataka. The company’s head office is at Hyderabad, India. A major
portion of metallurgical coke is captively used for manufacture of ferrous
products. The company’s turnover is mainly from domestic markets. The equity
shares of the company are listed on the BSE limited and the national stock
exchange of India limited
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Company is engaged in the manufacture and sale of Pig Iron; Ductile lron Pipe and Metallurgical Coke-an input material for Pig Iron, thus operates in the lron and Steel industry, which is considered as core sector. The Company is also into Power generation.
The Company is using Mini Blast Furnace Technology. The Company operates Blast Furnace with technology sourced from Sino-Steel for Pig lron making. The Company uses the Anshan technology, sourced from P.R. China for Metallurgical Coke making. The technology for Ductile lron Pipe making was sourced from Chinese Academy of Agriculture Mechanisation Sciences (CAAMS), China.
Pig Iron is of two grades- basic grade and foundry grade. Basic grade is used in the manufacture of Steel and whereas foundry grade is used for making castings. Basic grade is produced mainly by the lntegrated Steel Plants (ISPs) for captive consumption in the manufacture of steel and exports. Part of the production is also diverted to the domestic market. Foundry grade is mainly used for castings and is produced by the Mini Blast Furnace units. The Company is into Pig lron manufacture since inception. A major portion of Pig lron manufactured is captively consumed in the manufacture of Ductile lron Pipes.
Pig lron is the basic raw material for most of the engineering products and construction industry. Pig lron is also a raw material for foundry and engineering industry. With the significant growth in the main user industries like automobiles, construction, foundries, the demand for lron and Steel has increased significantly.Thetota1 production of Pig lron in lndia has increased from one and a half Million tons in 1991-92 to the present level of over nine million tons in 2016-1 7.The production for sale of Pig lron as per statistics (provisional) released by the Joint Plant Committee (JPC) attached to the Ministry of Steel for the financial year 201 6-1 7 is at 9.452 million tons as against 9.288 million tons in the previous year, registering a moderate growth of 2.4%. Continued adverse economic conditions, supply side issues and volatile prices of steel raw materials, intensive competition from lntegrated Steel Players have had a significant bearing on the performance of the Pig Iron industry in India.
Metallurgical Coke is the key input material for Iron making. The Company has integrated itself backward for this key input material. The surplus Metallurgical Coke production from this facility is being sold in the nearby market. The Company is also operating a Co-generation Power plant where the surplus Power after meeting the captive needs is being sold to third parties. The Company is operating this facility for over nine years now. A major portion of the Metallurgical Coke manufactured is captively consumed in the manufacture of Pig Iron.
The Company is also into manufacture of Ductile lron Pipes which are mainly used for water transportation and sewerage works that are sponsored by the governments, municipalities etc. Given the longevity and durability and the thrust given by the governments for providing safe drinking water and for providing better sewerage facilities to both urban and rural areas and also application in the irrigation works the usage of Ductile Iron Pipes is likely to improve over a period.
GLOBAL
SCENARIO:
The global lron and Steel industry during the year recorded a moderate growth on the back of economic recovery in the emerging economies and improvements in the developed economies. The moderate growth in the industry was driven mostly by consumption rather than investment and the demand for lron and Steel fails to be exciting. Excess capacities, protectionism and rising population are the causes of concern in the industry. Amidst these uncertainties the global Steel production recorded a modest growth by registering crude Steel production of 1.63 billion tons as against 1.62 billion tons in the year before. Asia continues to be the predominant player with 69.03% of global Steel production. P.R. China continues to be the largest player in terms of both world and Asian production with 49.6% and 71 36% respectively. Japan, lndia and South Korea together account for 16.5% of global Steel production and 23.9% of the Asian Steel production. The global Pig Iron industry during the year witnessed stagnation when the production recorded at level of 1.16 billion tons. The sentiment in the industry continues to be subdued during the year under review.
INDIAN SCENARIO:
During the year 2016-1 7 the lndian Steel industry contrary to the global scenario recorded a robust growth by recording 97.385 million tons which accounts for annual growth of 8.5%. lndian Steel industry continues to be third largest producer of Steel in the world. During the year lndia became net exporter of Steel narrowing the gap between imports at 7.427 million tons and exports at 8.244 million tons. The year saw an apparent Steel consumption at 89.902 million tons as against 86.698 million tons during the last year. However the lndian Pig lron sector reported a negative growth trend where the gross production has come down from 9.05 million tons to 8.810 million tons during the current year. The year witnessed volatile markets with sudden increase or decrease in the prices of Steel making raw materials which eroded the margins. The lron and Steel industry is burdened with high debt and high interest costs which have impacted adversely the performance of the industry.
OUTLOOK:
Although there were signs of recovery in the global lron and Steel industry during the year 2016 yet the short term outlook appears to be bearish and whereas the medium to long term outlook appears to be positive on the back of expected improvement in the global economic outlook. In the short term factors like the weak signs of recovery in the global economies, lower consumptions and excess capacities, increased trade tensions and protectionist measures would have an adverse bearing on the growth of industry. However in the medium to long term the industry is expected to improve on the back of strengthening economic indicators, expected growth in world GDP and measures to drive the consumption. The Indian lron and Steel industry is showing a healthy growth mainly on account of measures initiated by the government, drive on 'make in India: larger public spending etc. However the challenges on the bank loans to industry and increased non-performing assets with Banks, high interest costs, and volatile price trends are of concern in the growth of the industry. After creating a value chain in the form of backward and forward integration, the Company is poised for a better growth once the issues on working capital and increased loan portfolio are addressed suitably.
INDEX OF CHARGE:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Amount |
Address |
|
1 |
G22926679 |
100060914 |
Axis Bank Limited |
20/10/2016 |
- |
5625000.0 |
5-2-183/184, ASC Centre, III Floor, RP Road, Hyderabad-500003, Telangana, India |
|
2 |
G22876338 |
100060881 |
Axis Bank Limited |
12/08/2016 |
- |
9240000.0 |
5-2-183/184, ASC Centre, III Floor, RP Road, Hyderabad-500003, Telangana, India |
|
3 |
G08271926 |
100041009 |
Axis Bank Limited |
29/06/2016 |
- |
4273000.0 |
5-2-183/184, ASC Centre, III Floor, RP Road, Hyderabad-500003, Telangana, India |
|
4 |
C80561715 |
10623225 |
STATE BANK OF HYDERABAD |
05/02/2016 |
- |
500000000.0 |
Industrial Finance Branch, Topaz On Amrutha Hills, Punjagutta, Hyderabad-500082, Telangana, India |
|
5 |
C70639323 |
10603519 |
IFCI LIMITED |
27/10/2015 |
- |
900000000.0 |
IFCI Tower 61, Nehru Place, New Delhi-110019, India |
|
6 |
C37075884 |
10536855 |
SREI EQUIPMENT FINANCE LIMITED |
22/11/2014 |
- |
2682000.0 |
'Vishwakarma', 86C, Topsia Road, Kolkata-700046, West Bengal, India |
|
7 |
B96377866 |
10477615 |
Axis Bank Limited |
30/01/2014 |
- |
1845000.0 |
5-2-183/184, ASC Centre, III Floor, RP Road, Hyderabad-500003, Telangana, India |
|
8 |
B96377023 |
10477613 |
Axis Bank Limited |
30/01/2014 |
- |
2475000.0 |
5-2-183/184, ASC Centre, III Floor, RP Road, Hyderabad-500003, Telangana, India |
|
9 |
B91101766 |
10464145 |
CANARA BANK (AS A LEAD BANK OF CANARA BANK CONSORTIUM) |
14/10/2013 |
- |
1920000000.0 |
Prime Corporate Branch, 1-7-1, TSR Complex, S.P. Road, Secunderabad-500003, Telangana, India |
|
10 |
B37697653 |
10329493 |
CANARA BANK |
20/12/2011 |
26/03/2012 |
2740000000.0 |
Prime Corporate Branch, 1-7-1, TSR Complex, S.P. Road, Secunderabad-500003, Telangana, India |
CONTINGENT
LIABILITIES:
(INR in million)
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
On account of bank guarantees issued by the bankers |
26.460 |
14.960 |
|
Claims against the Company not acknowledged as debt |
52.566 |
4.613 |
|
Taxes and Duty demands contested by the Company |
|
|
|
Central Excise |
32.431 |
8.939 |
|
Commercial Taxes |
4.204 |
4.204 |
|
Income Tax |
1.379 |
1.379 |
|
Customs |
108.704 |
108.704 |
|
Total |
225.744 |
142.799 |
|
Note: It is not applicable for the company to estimate the
timing of cash flows, if any, in respect of above pending resolution of the
respective proceedings. |
||
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ENDED DECEMBER 31, 2017
(INR In Million)
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
INCOME FROM OPERATIONS |
|
|
|
|
Net Sales |
394.901 |
432.328 |
1986.654 |
|
Other Income |
13.360 |
4.752 |
55.441 |
|
Total
Income from Operations |
408.261 |
437.080 |
2042.095 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
343.815 |
0.217 |
952.659 |
|
Purchase of Stock in Trade |
24.252 |
22.546 |
46.798 |
|
Changes in inventories of finished goods and
work-in-progress |
139.055 |
451.925 |
1098.238 |
|
Excise duty |
0.000 |
0.000 |
49.434 |
|
Finance costs |
364.992 |
352.176 |
986.332 |
|
Employee benefits expense |
78.091 |
80.931 |
245.804 |
|
Depreciation and Amortization expenses |
128.690 |
128.754 |
383.713 |
|
Other Expenditure |
171.736 |
92.759 |
468.418 |
|
Total
Expenses |
1250.631 |
1129.308 |
4231.396 |
|
Profit
/ (Loss) before Tax |
(842.370) |
(692.228) |
(2189.301) |
|
Tax Expense |
0.000 |
0.000 |
0.000 |
|
Profit
/ (Loss) after Tax |
(842.370) |
(692.228) |
(2189.301) |
|
Other
Comprehensive Income |
|
|
|
|
Items that will not be reclassified to profit or loss |
1.413 |
4.325 |
4.238 |
|
Total
Comprehensive Income / (Expenses) |
1.413 |
4.325 |
4.238 |
|
Total
Comprehensive Income for the period |
(840.957) |
(687.903) |
(2185.063) |
|
Paid-up Equity Share Capital (Face value INR 10/- per
share) |
509.000 |
509.000 |
509.000 |
|
Basic
and Diluted EPS (in INR) |
(16.55) |
(13.60) |
(43.01) |
SEGMENT WISE
REVENUE, RESULTS, ASSETS AND LIABILITIES
(INR in Million)
|
Sr. No. |
Particular |
Quarter ended |
Nine months ended |
|
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Segment Revenue |
|
|
|
|
|
Ferrous Products |
144.786 |
545.807 |
1747.368 |
|
|
Metallugrical coke with co-generation power |
252.523 |
72.034 |
643.136 |
|
|
Total |
397.309 |
617.841 |
2390.504 |
|
|
Less: Inter segment revenue |
2.408 |
185.513 |
403.850 |
|
|
Total |
394.901 |
432.328 |
1986.654 |
|
|
|
|
|
|
|
2. |
Segment Result |
|
|
|
|
|
Ferrous Products |
(314.446) |
(247.672) |
(759.024) |
|
|
Metallugrical coke with co-generation power |
(161.495) |
(92.284) |
(442.063) |
|
|
Total |
(475.941) |
(339.956) |
(1201.087) |
|
|
Less: Other Un-allocable
expenditure |
1.438 |
0.097 |
1.883 |
|
|
Total segment results before interest and tax |
(477.379) |
(340.053) |
(1202.970) |
|
|
|
|
|
|
|
|
Less : i.
Finance costs |
364.992 |
352.175 |
986.332 |
|
|
Total Profit/(Loss)
before tax |
(842.370) |
(692.228) |
(2189.301) |
|
|
Tax |
-- |
-- |
-- |
|
|
Net Profit/(Loss)
after tax |
(842.370) |
(692.228) |
(2189.301) |
|
|
Other comprehensive
income (net of tax) |
1.413 |
4.325 |
4.238 |
|
|
Total other
comprehensive income |
(840.957) |
(687.903) |
(2185.063) |
|
|
|
|
|
|
|
3. |
Segment Assets |
|
|
|
|
|
Ferrous Products |
4499.632 |
6112.216 |
4499.632 |
|
|
Metallugrical coke with co-generation power |
6370.330 |
5446.700 |
6370.330 |
|
|
Total |
10869.962 |
11558.916 |
10869.962 |
|
|
|
|
|
|
|
|
Segment Liabilities |
|
|
|
|
|
Ferrous Products |
6337.898 |
5924.752 |
6337.898 |
|
|
Metallugrical coke with co-generation power |
5192.213 |
5459.188 |
5192.213 |
|
|
Total |
11530.111 |
11383.940 |
11530.111 |
|
|
|
|
|
|
|
|
Unallocated |
38.303 |
44.135 |
38.303 |
|
|
|
|
|
|
|
|
Total |
(621.845) |
219.111 |
(621.845) |
NOTES:
1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 13th February 2018 and also have been subjected to Limited Review by the Statutory Auditors of the Company. The Limited Review Report of the Auditors on these financial statements is an unqualified report.
2. The Statement has been prepared in accordance with the Companies (Indian
Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the
Companies Act, 2013 and other recognised accounting practices and policies to
the extent applicable. Effective from April 1, 2017, the Company has, for the
first time, adopted Ind AS with a transition date of April 1, 2016.
3. As Scheme for Sustainable Structuring of Stressed Assets (S4A) cannot be
implemented due to cash flow constraints, the company's request for
restructuring of the debt is under active consideration of the JLF and the JLF
at its meeting held on 09-02-2018 in principally agreeable to consider the
request of the company subject to approval of the sanctioning and other
regulatory authorities. Meanwhile debt of company stands classified as
non-performing asset (NPA) by the Banks. The company views that the deep
restructuring of the debt will help to restart and establish profitable
operations of the company and it would be able to meet commitments and reduce
stress.
4. As at 31st December 2017, the company had accumulated losses and the company
has incurred losses during the preceding two years. The company has delayed
payment of loans and interest and loan accounts have been classified as
non-performing by banks. Due to tight cash flows and non availability of
working capital limits the operations at ferrous division have been impacted
and the plant was under shut down since 12th June 2017. The operations at
Kudithini works too were impacted where Metallurgical Coke facility is running
on job work basis and power generation is partially operated. This impact is
likely to continue until the restructuring of the loans are done by the
financing institutions and banks. Notwithstanding the above, the financial
results of the company have been prepared on going concern basis as management
believes that the Shortage of working capital funds will be temporary and
lenders will consider the request for deep restructuring of the debt and arrive
at the resolution plan at the earliest. The Company views that the deep
restructuring will help to restart and establish profitable operations of the
company and it would be able to meet commitments and reduce debts. The auditors
of the company had drawn an emphasis of matter paragraph in their limited review
report for the quarter in this regard.
5. The Company's business consists of two reportable segments viz., Ferrous
Products and Metallurgical coke with co-generation of Power.
6. The Ind AS compliant financial results, pertaining to the quarter and nine
months ended 31st December, 2016 have not been subjected to limited review or
audit. However, the management has exercised necessary due diligence to ensure
that such financial results provide a true and fair view of its affairs.
7. The Statement does not include Ind AS compliant result of previous year
ended March 31, 2017 as the same is not mandatory as per SEBI's Circular dated
July, 5 2016.
8. The Government of India introduced Goods and Services Tax (GST) with effect from
1st July 2017. Revenue from operations for the quarter ended 30th September
2017 and 31st December 2017 is presented net of GST. Accordingly revenue for
operations for the nine months ended 31st December 2017 includes excise duty up
to 30th June 2017 of INR 49.434 million. Revenue from operations of earlier
periods includes excise duty which is now subsumed in GST.
9. The Company have considered fair value for property, viz land admeasuring
over 271.51 acres, situated in India, with impact of INR 553.592 Million in
accordance with stipulations of Ind AS 101 with the resultant impact being
accounted for in the reserves.
10. In the opinion of the management, sundry debtors and advances have a value
on realisation in the ordinary course of business at least equal to the amount
at which they are stated in the accounts. Adequate provisions have been made
for all known losses and liabilities. Certain balances of the sundry creditors,
sundry debtors and advances are subject to confirmation and reconciliation.
11. The Company along with some other buyers of Iron Ore contested before the
Hon'ble High Court of Karnataka (HC) the levy of Forest Development Tax (FDT)
by the miners on their sale of Iron Ore. The Hon'ble HC vide its judgement
dated 15.02.2016 has granted partial relief to the Company and directed the
Government of Karnataka (GOK) to refund the FDT collected earlier. Following
the judgement the Company has vide its letter dated 09.03.2016 filed an
application for refund of INR 232.573 million towards FDT collected in the
earlier years. However Government of Karnataka and some mining companies have
since gone on appeal before the Hon'ble Supreme Court against the above
judgement. Company has also filed a petition before the Hon'ble High Court of
Karnataka against collection of Forest Development Fee (FDF) on purchase of
Iron Ore and the petition has been held in favour of the Company where an
amount of INR 26.411 million was ordered to be refunded to the company. The
Government of Karnataka has appealed before the Hon'ble Supreme Court against
the Order of High Court of Karnataka. Pending disposal of the appeals, the
Company has not recognised the said refund claim in its books of account.
FIXED ASSETS:
Tangible assets
- Leasehold Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Office equipment
- Data Processing equipment
Intangible Assets
- Software
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 65.13 |
|
UK Pound |
1 |
INR 92.52 |
|
Euro |
1 |
INR 80.59 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
BHG |
SCORE FACTORS
|
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 |
NO |
|
--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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.