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MIRA INFORM REPORT
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Report No. : |
506164 |
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Report Date : |
30.04.2018 |
IDENTIFICATION DETAILS
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Name : |
BHUSHAN POWER AND STEEL LIMITED (w.e.f. 28.02.2006) |
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Formerly Known
As : |
BHUSHAN LIMITED |
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Registered Office
: |
F-Block, 1st Floor, |
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Tel. No.: |
91-11-43544500 |
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Country : |
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Financials (as
on) : |
31.03.2016 |
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Date of
Incorporation : |
22.02.1999 |
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Com. Reg. No.: |
55-108350 |
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Capital
Investment / Paid-up Capital : |
INR 2395.400 Million |
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CIN No.: [Company Identification
No.] |
U27100DL1999PLC108350 |
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IEC No.: [Import-Export
Code No.] |
0500049084 |
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GSTN : [Goods & Service Tax
Registration No.] |
07AAACB9760D2ZR |
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TIN/CST No.: |
21241702847 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTIN : |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACB9760D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of Iron and Generate Power. (Registered activity) |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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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 1999 and it is a steel manufacturer with facilities
for long as well as flat steel products. As per
Registrar Of Companies the date of balance sheet (i.e. financial filed) is
shown as 31-03-2017 but the documents related to the financial for the year
2017 are not available from any sources. As per available
financials of 2016, the company has sharply declined in its revenue from
operations as compared to previous year and reported heavy losses. Rating
constrained on account of deterioration in its operational and financial
performance, huge sizeable debt repayments have affected the liquidity
profile leading to continued delays in servicing of debt obligations by the
company. Further, as
per indirect sources we could find that company has delayed in repayment of
its debt obligations and Punjab National Bank refers the company to the
National Company Law Tribunal for insolvency proceedings on 28th July 2017. It is also
to be noted that the company is listed with RBI defaulter and defaulted hefty
amount of Corporation Bank i.e. INR 3337.584 million. Payments
terms are reported to be slow and delayed. In view of aforesaid, the company can be considered for business dealings on fully 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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
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Rating |
Not Available |
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Rating Explanation |
Not Available |
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Date |
Not Available |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under :
SUIT-FILED ACCOUNTS
OF INR 10.000 MILLION AND ABOVE AS ON 28-APRIL-2018
BORROWERS DETAILS
|
Borrowers’ Name : |
BHUSHAN POWER AND STEEL LIMITED |
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Address : |
F-Block, 1st Floor, |
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Name of Individual : |
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Name of Credit Grantors / Bank & Branch: |
Corporation Bank, |
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Amount (INR In Million) : |
INR 3337.584 Million |
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
31-03-2016.
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 30.04.2018
IBBI (Insolvency and Bankruptcy Board of
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. Rajeev Tandon |
|
Designation : |
General Manager |
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Contact No.: |
91-9779455616 |
|
Date : |
27.04.2018 |
MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-11-43544500 / 30451000
LOCATIONS
|
Registered/ Corporate Office : |
F-Block, 1st Floor, |
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Tel. No.: |
91-11-30451000 |
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Mobile No.: |
91-9779455616 (Mr. Rajeev) |
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Fax No.: |
91-11-30451101 / 26282737 |
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E-Mail : |
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Website : |
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Admin./ Network Office : |
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Tel. No.: |
91-33-30512299/ 30512332/ 3052333 |
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Fax No.: |
91-33-30512235/ 30512297 |
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E-Mail : |
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Factory 1 : |
141-142, Industrial and |
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Factory 2: |
Plot No 55, KIADB Industrial Area, |
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Factory 3 : |
Plot No. 03, 71, 83, Industrial Area, Phase – I, |
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Other Network Offices : |
Plot No. 3, Industrial Area, Phase – I, Phone : 91-172-3911702/ 3911703 Fax : 91-172-3911704 E-mail : chandigarh@bpsl.net ORISSA OFFICE Village Thelkoloi, P.O. Lapanga, Tehsil – Rengali,
District Sambalpur – 768232 Phone: 91-663-2562026-32 Fax: 91-663-2562007/ 2562011 E-mail : orissa@bpsl.net DERABASSI OFFICE
Fax: 91-1762-307902 E-mail : bhushandrb@bpsl.ne KOLKATA Tel. No.: 91-33-30512299
/ 30512332 / 3052333 Fax No.:91-33-30512235
/ 30512297 Email: kolkata@bpsl.net |
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Branch Office 1 : |
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Branch Office 2: |
Plot No 7, Survey No 32, Opposite Poonam Dumber, Vavdi, Rajkot-360004,
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DIRECTORS
As on 31.03.2018
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Name : |
Mr. Sanjay Singal |
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Designation : |
Managing Director |
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Address : |
61, Sector 5, Chandigarh-160005, |
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Date of Birth/Age : |
19.06.1960 |
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Qualification : |
Graduate |
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Date of Appointment : |
22.02.1999 |
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PAN No.: |
ANRPS7985C |
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DIN No.: |
00006579 |
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Other Directorship:
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Name : |
Mr. Ravi Prakash Goyal |
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Designation : |
Director |
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Address : |
House No. 157, Sector 16, Panchkula – 134112, |
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Date of Birth/Age : |
09.09.1951 |
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Qualification : |
Graduate |
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Date of Appointment : |
30.12.2014 |
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PAN No.: |
ADAPG0813G |
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DIN No.: |
00006595 |
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Other Directorship:
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Name : |
Mr. Ram Naresh Yadav |
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Designation : |
Whole Time Director (Technical) |
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Address : |
14/4A, |
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Date of Birth/Age : |
16.07.1959 |
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Qualification : |
B Tech |
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Date of Appointment : |
30.12.2014 |
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PAN No.: |
AAAPY4673M |
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DIN No.: |
00006697 |
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Name : |
Mr. Hardev Chand Verma |
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Designation : |
Director |
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Address : |
14/4A, |
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Date of Birth/Age : |
15.11.1952 |
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Qualification : |
Graduate |
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Date of Appointment : |
29.05.2014 |
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PAN No.: |
ABVPV6037G |
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DIN No.: |
00007681 |
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Other Directorship:
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Name : |
Mrs. Aarti Singal |
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Designation : |
Whole-time director |
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Address : |
House No. 61, Sector 5, Chandigarh-160005, |
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Date of Birth/Age : |
08.03.1961 |
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Qualification : |
Graduate |
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Date of Appointment : |
01.04.2015 |
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PAN No.: |
AEFPS6299L |
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DIN No.: |
00007698 |
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Other Directorship:
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Name : |
Mr. Dinesh Kumar Behal |
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Designation : |
Director |
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Address : |
House No. 3235, Phase – II, |
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Date of Birth/Age : |
19.02.1958 |
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Qualification : |
Graduate |
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Date of Appointment : |
28.02.2006 |
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PAN No.: |
ABUPB2010Q |
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DIN No.: |
00011735 |
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Other Directorship:
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Name : |
Mr. Dinesh Kumar Yadav |
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Designation : |
Director |
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Address : |
House No. I 1, |
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Date of Birth/Age : |
02.10.1972 |
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Qualification : |
BE |
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Date of Appointment : |
31.01.2015 |
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PAN No.: |
ABUPY8210F |
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DIN No.: |
07051856 |
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KEY EXECUTIVES
|
Name : |
Mr. Rajeev Tandon |
|
Designation : |
General Manager |
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|
Name : |
Mr. Arun Kumar Agrawal |
|
Designation : |
Chief Financial Officer |
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Address : |
K 68C, Sheikh Sarai, Phase II, New Delhi-110017, India |
|
Date of Appointment : |
07.07.2014 |
|
PAN No.: |
AELPA7713F |
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|
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|
Name : |
Mr. Ravinder Kumar Gupta |
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Designation : |
Secretary |
|
Address : |
2147/3, Sector 45 C, Chandigarh – 160002, Punjab, India |
|
Date of Birth/Age : |
31.05.1958 |
|
Date of Appointment : |
21.09.2000 |
|
PAN No.: |
ADOPG2712Q |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2017
|
Names of Equity Shareholders |
No. of Shares |
|
Sanjay Singal |
12585436 |
|
Sanjay Singal (HUF) |
256450 |
|
Priyanka Miglani |
1000895 |
|
Radhika S. Dhoot |
1000220 |
|
Aarti Singal |
5969324 |
|
Aniket Singal |
1750967 |
|
Jasmine Steel Trading Limited, India |
39775000 |
|
Marsh Steel Trading Limited, India |
39556000 |
|
Diyajyoti Steel Limited, India |
40035250 |
|
Vision Steel Limited, India |
41071173 |
|
Baring Private Equity Asia III Mauritius Holdings (3) Limited,
Mauritius |
10714285 |
|
Total |
193715000 |
|
Names of Preference Shareholders |
No. of Shares |
|
Jasmine Steel Trading Limited, India |
750270 |
|
Marsh Steel Trading Limited, India |
756469 |
|
Vision Steel Limited, India |
791830 |
|
Diyajyoti Steel Limited, India |
743784 |
|
Sanjay Singal |
596434 |
|
Aarti Singal |
1176751 |
|
Aniket Singal |
335873 |
|
Sanjay Singal (HUF) |
427281 |
|
Evergrowing Iron and Finest Private Limited, India |
19921 |
|
Total |
5598613 |
Equity Share Break up (Percentage of Total Equity)
As on 08.07.2017
|
Category |
Percentage |
|
Promoters- Individual/Hindu Undivided Family- Indian |
9.71 |
|
Promoters- Body corporate |
82.82 |
|
Public/Other than promoters- Individual/Hindu Undivided Family- Indian |
1.94 |
|
Public/Other than promoters-Foreign Institutional Investors |
5.53 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Iron and Generate Power. (Registered activity) |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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||||
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
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Financial Institution: |
SBICAP Trustee Company Limited, 202, Maker Tower,
"E", Cuffe Parade, Mumbai – 400005, Maharashtra, India |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Mehra Goel and Company Chartered Accountants |
|
Address : |
505, |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AABFM1488M |
|
|
|
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Auditors 2 : |
|
|
Name : |
S. K. Mittal and Company |
|
Address : |
E-29, South Extension, Part-II, New Delhi, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AAAFS9946B |
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|
|
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Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Associates Company (AS ON 31.03.2016): |
U10300DL2008PTC176675
L02710CT1989PLC010052
U27104CT2004PTC016778 |
|
|
|
|
Subsidiary Company (AS ON 31.03.2016): |
U10101CH2015PTC035511 |
|
|
|
|
Enterprises which
are owned, or have
significant influence of or are
partners with Key management personnel and their relatives (AS ON
31.03.2016): |
U27109pb1993plc014037
U65921dl1965ptc004523
L74899dl1983plc014942
U10101ch2015ptc035511 |
CAPITAL STRUCTURE
As on 08.07.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
INR 10/- each |
INR 3750.000 Million |
|
7500000 |
Preference Shares |
INR 100/- each |
INR 750.000 Million |
|
|
Total |
|
INR
4500.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
193715000 |
Equity Shares |
INR 10/- each |
INR 1937.150 Million |
|
5598613 |
Preference Shares |
INR 100/- each |
INR 559.861 Million |
|
|
|
|
|
|
|
Total |
|
INR
2497.011 Million |
As on 31.03.2016
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
INR 10/- each |
INR 3750.000 Million |
|
7500000 |
Preference Shares |
INR 100/- each |
INR 750.000 Million |
|
|
Total |
|
INR
4500.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
193715000 |
Equity Shares |
INR 10/- each |
INR 1937.150 Million |
|
4582504 |
Preference Shares |
INR 100/- each |
INR 458.250 Million |
|
|
|
|
|
|
|
Total |
|
INR
2395.400 Million |
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET – (STANDALONE)
|
SOURCES
OF FUNDS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2395.400 |
2395.400 |
2366.465 |
|
(b) Reserves & Surplus |
41790.405 |
66115.837 |
78786.253 |
|
(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) |
44185.805 |
68511.237 |
81152.718 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
290308.408 |
277494.442 |
230381.127 |
|
(b) Deferred tax liabilities
(Net) |
2090.034 |
12588.309 |
14008.309 |
|
(c) Other long term
liabilities |
23247.718 |
7468.624 |
5589.969 |
|
(d) long-term provisions |
355.045 |
353.486 |
287.161 |
|
Total
Non-Current Liabilities (3) |
316001.205 |
297904.861 |
250266.566 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
66542.638 |
54471.335 |
55640.824 |
|
(b) Trade payables |
11364.907 |
10890.948 |
7682.751 |
|
(c) Other current liabilities |
34904.301 |
18040.699 |
24535.218 |
|
(d) Short-term provisions |
35.996 |
53.402 |
733.592 |
|
Total
Current Liabilities (4) |
112847.842 |
83456.384 |
88592.385 |
|
|
|
|
|
|
TOTAL |
473034.852 |
449872.482 |
420011.669 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
308934.738 |
310570.75 |
229816.877 |
|
(ii) Intangible Assets |
121.208 |
161.247 |
180.212 |
|
(iii) Capital work-in-progress |
83150.733 |
53596.484 |
105783.141 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1258.514 |
1231.871 |
1220.695 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
14849.505 |
16910.194 |
16072.754 |
|
(e) Other Non-current assets |
1667.921 |
530.927 |
197.656 |
|
Total
Non-Current Assets |
409982.619 |
383001.473 |
353271.335 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
51.166 |
86.509 |
94.906 |
|
(b) Inventories |
39179.545 |
43581.522 |
31821.128 |
|
(c) Trade receivables |
10977.220 |
12141.572 |
16243.669 |
|
(d) Cash and cash equivalents |
1239.099 |
1243.817 |
1760.425 |
|
(e) Short-term loans and
advances |
11403.687 |
9817.589 |
16810.53 |
|
(f) Other current assets |
201.516 |
0.000 |
9.676 |
|
Total
Current Assets |
63052.233 |
66871.009 |
66740.334 |
|
|
|
|
|
|
TOTAL |
473034.852 |
449872.482 |
420011.669 |
PROFIT
& LOSS ACCOUNT – (STANDALONE)
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
SALES |
|
|
|
|
|
Income |
77377.502 |
92939.308 |
103525.408 |
|
|
Other Income |
172.826 |
426.658 |
721.400 |
|
|
TOTAL |
77550.328 |
93365.966 |
104246.808 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
37417.682 |
47169.360 |
46506.960 |
|
|
Purchases of
Stock-in-Trade |
1377.836 |
3174.354 |
3323.810 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
3568.185 |
(5080.047) |
(35.322) |
|
|
Employees benefits
expense |
3254.233 |
3529.065 |
2752.188 |
|
|
CSR Expenditure |
23.800 |
140.098 |
0.000 |
|
|
Other expenses |
19966.808 |
24507.357 |
18748.826 |
|
|
TOTAL |
65608.544 |
73440.187 |
71296.462 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
11941.784 |
19925.779 |
32950.346 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
38141.666 |
27843.947 |
14811.631 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(26199.882) |
(7918.168) |
18138.715 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
8623.803 |
6683.569 |
8783.827 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(34823.685) |
(14601.737) |
9354.888 |
|
|
|
|
|
|
|
Less |
TAX |
(10498.253) |
(970.602) |
3000.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX |
(24325.432) |
(13631.135) |
6354.888 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
4238.700 |
17880.100 |
14841.900 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Proposed dividend on Cumulative
compulsorily convertible Preference Share |
0.000 |
8.600 |
4.600 |
|
|
Dividend Tax |
0.000 |
1.700 |
2.400 |
|
|
Transferred to General
Reserve |
0.000 |
0.000 |
3300.000 |
|
|
Balance Carried to the
B/S |
(20086.732) |
4238.665 |
17889.788 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(125.63) |
(70.42) |
32.78 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Maturities of Long term debt |
17177.920 |
6620.451 |
19561.445 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from operating activity |
15373.242 |
20311.657 |
30629.370 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
51.78 |
47.68 |
57.27 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
7.05 |
7.65 |
6.37 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
106.92 |
78.96 |
56.27 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.30 |
0.46 |
1.04 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.03 |
0.05 |
0.10 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.89 |
0.82 |
0.81 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
8.46 |
4.94 |
3.77 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
2.55 |
1.22 |
1.09 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
8.88 |
5.32 |
4.14 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
0.31 |
0.72 |
2.22 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
(31.44) |
(14.67) |
6.14 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
(5.14) |
(3.03) |
1.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
(55.05) |
(19.90) |
7.83 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Ratio (Current Assets / Current Liabilities) |
0.56 |
0.80 |
0.75 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.21 |
0.28 |
0.39 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.09 |
0.15 |
0.19 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
156.14 |
141.35 |
129.13 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
0.56 |
0.80 |
0.75 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
2366.465 |
2395.400 |
2395.400 |
|
Reserves & Surplus |
78786.253 |
66115.837 |
41790.405 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
81152.718 |
68511.237 |
44185.805 |
|
|
|
|
|
|
Long Term borrowings |
230381.127 |
277494.442 |
290308.408 |
|
Short Term borrowings |
55640.824 |
54471.335 |
66542.638 |
|
Current Maturities of Long term debt |
19561.445 |
6620.451 |
17177.920 |
|
Total
borrowings |
305583.396 |
338586.228 |
374028.966 |
|
Debt/Equity
ratio |
3.766 |
4.942 |
8.465 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
103525.408 |
92939.308 |
77377.502 |
|
|
|
(10.226) |
(16.744) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
103525.408 |
92939.308 |
77377.502 |
|
Profit |
6354.888 |
(13631.135) |
(24325.432) |
|
|
6.14% |
(14.67%) |
(31.44%) |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES OF FUNDS |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
(1) Shareholders' Funds |
|
|
|
(a) Share Capital |
2395.400 |
2395.400 |
|
(b) Reserves &
Surplus |
41726.093 |
66085.562 |
|
(c) Minority Interest |
0.004 |
0.000 |
|
|
|
|
|
(2) Share Application
money pending allotment |
0.069 |
18.546 |
|
Total Shareholders’ Funds
(1) + (2) |
44121.566 |
68499.508 |
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
290308.408 |
277494.442 |
|
(b) Deferred tax
liabilities (Net) |
2090.034 |
12588.309 |
|
(c) Other long term
liabilities |
23247.718 |
7468.624 |
|
(d) long-term provisions |
355.045 |
353.485 |
|
Total Non-current
Liabilities (3) |
316001.205 |
297904.860 |
|
|
|
|
|
(4) Current Liabilities |
|
|
|
(a) Short term borrowings |
66542.658 |
54471.335 |
|
(b) Trade payables |
11465.131 |
10977.677 |
|
(c) Other current
liabilities |
34917.154 |
18053.121 |
|
(d) Short-term provisions |
35.995 |
53.402 |
|
Total Current Liabilities
(4) |
112960.938 |
83555.535 |
|
|
|
|
|
TOTAL |
473083.709 |
449959.903 |
|
|
|
|
|
II.
ASSETS |
|
|
|
(1) Non-current assets |
|
|
|
(a) Fixed Assets |
|
|
|
(i) Tangible assets |
308965.247 |
310601.263 |
|
(ii) Intangible Assets |
121.208 |
161.247 |
|
(iii) Capital
work-in-progress |
83150.733 |
53596.484 |
|
(iv) Intangible assets under
development |
1.457 |
0.000 |
|
(b) Non-current
Investments |
1119.848 |
1139.783 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
14926.337 |
16980.630 |
|
(e) Other Non-current
assets |
1667.921 |
530.927 |
|
Total Non-Current Assets |
409952.751 |
383010.334 |
|
|
|
|
|
(2) Current assets |
|
|
|
(a) Current investments |
51.166 |
86.509 |
|
(b) Inventories |
39179.545 |
43581.522 |
|
(c) Trade receivables |
10977.220 |
12141.572 |
|
(d) Cash and cash equivalents |
1239.327 |
1243.880 |
|
(e) Short-term loans and
advances |
11482.184 |
9896.086 |
|
(f) Other current assets |
201.516 |
0.000 |
|
Total Current Assets |
63130.958 |
66949.569 |
|
|
|
|
|
TOTAL |
473083.709 |
449959.903 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
Income |
77377.502 |
92939.308 |
|
|
Other Income |
172.826 |
426.659 |
|
|
TOTAL |
77550.328 |
93365.967 |
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
Cost of Materials
Consumed |
37417.682 |
47169.360 |
|
|
Purchases of
Stock-in-Trade |
1377.836 |
3174.354 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
3568.185 |
(5080.047) |
|
|
CSR Expenditure |
23.800 |
140.098 |
|
|
Employees benefits
expense |
3254.233 |
3529.065 |
|
|
Other expenses |
19966.966 |
24518.996 |
|
|
TOTAL |
65608.702 |
73451.826 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
11941.626 |
19914.141 |
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
38155.607 |
27852.439 |
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(26213.981) |
(7938.298) |
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION
|
8623.805 |
6683.572 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(34837.786) |
(14621.870) |
|
|
|
|
|
|
Less |
TAX |
(10498.253) |
(970.602) |
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX |
(24339.533) |
(13651.268) |
|
|
|
|
|
|
Less/ Add |
MINORITY INTEREST |
0.001 |
9.305 |
|
|
|
|
|
|
Less/ Add |
SHARE OF PROFIT / (LOSS)
OF ASSOCIATES |
19.935 |
0.000 |
|
|
|
|
|
|
|
TOTAL PROFIT / (LOSS) FOR THE PERIOD |
(24359.469) |
(13660.573) |
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(125.81) |
(70.57) |
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 |
Yes |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
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 |
NOTE: Registered office of the company has been
shifted from F-Block, 1st Floor, International Trade Tower, New Delhi -110019,
India to the present address w.e.f. 11.08.2015
HIGHLIGHTS AND
FINANCIAL SUMMARY
Highlights of Global
Steel Industry
The year 2015-16 was remained passive for world steel. Tata Steel off loads long products business in Europe. World number one steel making ArcelorMittal is preparing to shed about 10% of its workforce in France through sale of subsidiaries. The continued slowdown in consumption of steel in real estate sector worldwide is the one of the reason behind the slowdown. According to OECD Steel Committee, global crude steelmaking between 2000 to 2014 substantially increased by an unprecedented expansion in capacity by China. World crude steel production stood at 1622 million metric tonnes (MMT) during 2015, It is projected to grow further to 2361 million metric tonnes (MMT) by 2017 about 700 MMT more than in 2015. Chinese Government is taking steps to address the stagnating growth in steel sector. European steel demand has been hit by economic crisis in Italy and Brexit move by Britain. The latest economic data does point to a recovery in the European economy. However there are still several sectors, like housing, where demand is week. India is the third largest steel producer with a total installed capacity of 110 MMT but cheap imports from China, Russia, Japan and South Korea have hurt the Indian steel industry.
Highlights of Indian
Steel Industry
India has taken a tactical decision to back a recent G20 move to curb excess steel capacity and subsidies given by countries to their steel makers, although the government fears that this may keep the local industry from availing itself of state support in the form of a minimum import price. Besides imposing a minimum import price, (MIP) India is carrying out an anti-dumping probe against steel imports from some countries. Indian Government imposed MIP in the range of $341to $752 per tonnes on 173 steel products for six months in February 2016, aimed at curbing rising imports at predatory prices by countries such as China, Japan, Korea and Russia. A sharp in the input costs has pushed steel industry into a corner. Steel Industry has been adversely impacted by increasing cost of inputs such as metcoke, Zinc and some of the micro alloys required for valued added grades. This has resulted in increased cost of production which will necessitate increase in selling price. Ministry of steel has notified 15 steel products which are critical in building the country’s infrastructure under the mandatory certification mark scheme of BIS in the year 2012. Subsequently 15 more products have been notified on 18.12.2015 taking it to total 30 products under mandatory quality standards. In order to achieve the growth target of production of 300 million tonnes of Steel by 2025 under National Steel Policy 2005, a concept of Special Purpose Vehicle has been proposed with respective state governments of Chhattisgarh, Odisha, Jharkhand and Karnataka. India is large producer of sponge with a large number of coal based units, located in mineral rich States of the Country. Over the years coal based route has emerged as a key contributor and accounted for 90% of total sponge iron production 2014-15.
India’s steel demand is expected to grow by 25% till 2030. Lower capacity utilization is a negative sign for global steel industry. With capacity utilization rate, competition increases between existing industry players. This put pressure on steel prices. Steel, Power and Infrastructure industries are expected to generate more employment. Industry expecting reduction of further interest rate cut from Reserve Bank of India and steps to keep the foreign exchange fluctuations under control to strength the Indian currency. Govt. has enacted Mines and Mineral (Development & Regulation) Amendment Act 2015 effective from January 2015 for allocation of mines through E-auction system. All applications for iron ore blocks were lapsed on the date of amendment act except those applications for mining lease or prospective lease which has letter of intent (by whatever name called) by the State. The E-auction process may facilitate quick disposal of various approvals pending and smooth operation of mines which may turn around the steel industry. Increase in urban population to an estimation of 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others will accelerate the growth of steel production in near future. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, 12th Five Year Plan has projected that domestic crude steel capacity in the county is likely to be 140 million tonnes by 2016-17 and has the potential to reach 149 million tonnes. The country is expected to become the 2nd largest producer of crude steel in the world soon, provided all requirements for creation of fresh capacity are adequately met. India is also an important producer of pig iron. The private sector accounted for 93% of total production for sale of pig iron in the country.
Operational
Performance and Company’s Affairs
The Company achieved gross revenue of INR 85031.800 Million from operation as compared to INR 10,196.11 Million. Company earned an operating income of INR 11941.800 Million. However for the reasons stated, Company incurred loss of INR 24325.400 Million as compared to last year loss of INR 13631.100 Million. Unavailability of coal due to cancellation of coal blocks pursuant to order of Supreme Court of India vide its judgment dated 25.08.2014 and 24.09.2014, further litigation in E-auction of coal blocks in various courts caused lower capacity utilization in the year 2015-16 and squeezed the margins. E-auction for open sale of coal stopped by Coal India Limited also affected supply of Coal and company procured imported raw material at higher price. Situation was further aggravated when State Govt. stopped all unauthorized running mines of coal and iron ore were closed and a result the timely availability of raw material also get affected. Iron ore, coal and power are the important raw material for producing steel. Due to shortage of coal, power generation also got affected. The cost of imported coal and iron ore is higher than domestic available raw material besides higher freight cost in import of raw material. In view of depressed international prices, Government implemented Minimum Import Price (MIP) Scheme for six months, which too could not stop the downward trend of global steel prices. The rupee devaluation for the domestic sales made the cost of production uneconomic. The above factors resulted into low production and low realization resulting in difficulties in servicing of debts obligations of lenders consequently higher finance cost.
Exports
Exports turnover of the Company has decreased from INR 16239.700 Million in 2014-15 to INR 11186.300 Million in 2015-16. Products were exported to about 35 countries. Large part of the exports is made to African and Asian countries. Their products otherwise confirm international quality standards coupled with efficacy of sternest delivery tests applied worldwide thereby making presence in the international market.
Mines
Global economic slump has delayed the government’s plan of opening coal sector to private commercial mining. Slump in international coal prices and financial stress in Steel and Aluminum sectors has forced government to resume fourth round of bidding when the market improves. Government is not sure whether coal blocks auction for commercial mining will generate adequate interest among mining companies. Indian Bureau of Mines (IBM), which promotes scientific development of mineral resources, will be the nodal agency to implement the satellite monitoring measure through GPS (Global Positioning System) enabling defection of illegal mining.
Working Capital
Working Capital Facilities from consortium of banks lead by Punjab National Bank for the financial year 2014- 15 has been assessed to INR 87410.000 million (Fund Based INR 42500.000 Million and Non-Fund Based INR. 44910.000 Million) excluding BG limit for INR 5500.000 Million for Coal blocks. For the financial year 2015-16, the leads bank is yet to assess working capital facilities.
UNSECURED LOAN
|
PARTICULARS |
31.03.2016 (INR
in Million) |
31.03.2015 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Term loans from banks |
0.000 |
738.901 |
|
Intercorporate deposits |
1546.406 |
0.000 |
|
Loans and advances from directors |
1941.250 |
30.050 |
|
Loans and advances from others |
433.000 |
0.000 |
|
Short-term
borrowings |
|
|
|
Rupee term loans from others |
0.000 |
105.552 |
|
Total |
3920.656 |
874.503 |
INDEX
OF CHARGES:
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
AMOUNT |
ADDRESS |
|
1 |
G48604060 |
100108034 |
SBICAP
TRUSTEE COMPANY LIMITED |
03/06/2017 |
06/07/2017 |
57068400000.0 |
202,
MAKER TOWER, "E",CUFFE PARADEMUMBAIMH400005IN |
|
2 |
G48604862 |
100107859 |
SBICAP
TRUSTEE COMPANY LIMITED |
03/06/2017 |
06/07/2017 |
57784900000.0 |
202,
MAKER TOWER, "E",CUFFE PARADEMUMBAIMH400005IN |
|
3 |
G48605372 |
100107860 |
SBICAP
TRUSTEE COMPANY LIMITED |
03/06/2017 |
06/07/2017 |
50967400000.0 |
202,
MAKER TOWER, "E",CUFFE PARADEMUMBAIMH400005IN |
|
4 |
C81974842 |
10615103 |
THE
JAMMU AND KASHMIR BANK LIMITED |
31/12/2015 |
31/12/2015 |
850000000.0 |
(CORPORATE
HEADQUARTERS),M.A.ROAD,SRINAGAR,KASHMIRSRINAGARJK190001IN |
|
5 |
G04429841 |
10597543 |
THE
KARUR VYSYA BANK LIMITED |
23/09/2015 |
31/12/2015 |
250000000.0 |
CONNAUGHT
PLACE BRANCH (4111)H-17, GOVIND MANSION, CONNAUGHT PLACENEW DELHIDL110001IN |
|
6 |
G01187806 |
10595780 |
UNION
BANK OF INDIA |
21/09/2015 |
31/12/2015 |
470000000.0 |
INDUSTRIAL
FINANCE BRANCH, M-11, 1ST FLOOR,INDUSTRIAL FINANCE BRANCH, M-11, 1ST
FLOOR,NEW DELHIDL110001IN |
|
7 |
C75846592 |
10593669 |
VIJAYA
BANK |
19/09/2015 |
21/09/2015 |
990000000.0 |
BARAKHAMBA
ROAD BRANCH.GROUND FLOOR VIJAYA BUILDING 17 BARAKHAMBA ROADNEW
DELHIDL110001IN |
|
8 |
G01896026 |
10592559 |
STATE
BANK OF HYDERABAD |
18/09/2015 |
31/12/2015 |
535300000.0 |
COMMERCIAL
BRANCH74, JANPATHNEW DELHIDL110001IN |
|
9 |
G01896489 |
10595530 |
INDIAN
OVERSEAS BANK |
18/09/2015 |
31/12/2015 |
1920000000.0 |
PRAKASH
DEEP BUILDING7, TOLSTOY MARG,NEW DELHIDL110001IN |
|
10 |
G02374601 |
10592619 |
AXIS
BANK LIMITED |
09/09/2015 |
31/12/2015 |
1228800000.0 |
2ND FLOOR,
RED FORT CAPITAL, PARSVNATH TOWERS,GOLE MARKET, BHAI VEER SINGH MARGNEW
DELHIDL110001IN |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2016 (INR
In Million) |
31.03.2015 (INR
In Million) |
|
Claims against the Company not acknowledged as debt |
1843.438 |
1919.417 |
|
Guarantees |
675.297 |
1362.989 |
|
Other money for which company is contingently liable |
14797.174 |
7701.566 |
|
Total |
17315.909 |
10983.972 |
FIXED ASSETS
- Land
- Buildings
- Plant and Equipment
- Factory Equipments
- Furniture and Fixtures
- Vehicles
- Motor Vehicles
- Office Equipment
- Computer Equipments
PRESS RELEASE
PUNJAB NATIONAL BANK
GETS GREEN SIGNAL TO ACT AGAINST BHUSHAN POWER
JUNE 24, 2017
MUMBAI: A consortium of lenders has given Punjab National Bank NSE 2.64 % (PNB) the mandate to begin bankruptcy proceedings against Bhushan Power and Steel, one of the largest defaulters among the 12 companies identified by the Reserve Bank of India. The company, promoted by Sanjay Singhal, has outstanding loans of more than INR 550000.000 Million and is being investigated by the Serious Fraud Investigation Office (SFIO) for possible diversion of funds.
“Some of the
large consultants made presentations to lenders for being selected as the
interim resolution professional (IRP),” said a bank official present at the
meeting.
“Subsequently,
lenders discussed the various resolution plans.” With this, lenders have given
mandates to lead banks to initiate insolvency proceedings for all 12 companies
referred by RBI on June 13.
Since the
start of this week, lenders have held a series of meetings to decide on the
fate of the dozen defaulters. The RBI ordered banks to refer these cases to the
National Company Law Tribunal (NCLT) after the central bank was empowered to
direct lenders to take action against defaulters.
These 12
companies owe a total INR 0.250 Million crore and constitute 25% of all bad
loans in the banking system.
Lanco Infratech, Essar Steel NSE 0.00 %, Bhushan Steel NSE -9.96 % (not to be confused with Bhushan Power and Steel), Jaypee Infratech NSE -4.39 %, Alok Industries NSE -4.00 % and Amtek Auto NSE -4.92 % are among the dozen.
INSOLVENCY PROCESS:
BHUSHAN POWER CASE FACES ISSUES OVER BID SECRECY
MARCH 4, 2018
The legal battle that has broken loose in the insolvency resolution process of Bhushan Power and Steel underlines the importance a confidentiality clause in bidding or deals involving mergers and acquisitions. The two bidders, Tata Steel and Liberty House, seem to know each other’s offer price and have been throwing that as an argument supporting their claim for bailing out the troubled lenders to the steel company.
Abhishek Manu Singhvi, the Tata Steel lawyer, last week stated in the National Company Law Tribunal that Liberty House's bid was higher by "only INR 10 billion". The Liberty offer, he argued, came after it was informed that the Tata Steel bid was the highest. He said the Liberty offer should not be considered on this ground.
London-based Liberty House, too has been claiming its bid is higher than that of the Tata's. While there seems to be no contradiction in the statements by the two sides, other stakeholders are questioning the breach of confidentiality in the whole process.
“It’s a sealed bid. I do not know where Tata Steel got this information. I am surprised how Tata Steel can make such statement. I don’t wish to comment more on this matter,” Rajiv Bajaj, executive director, Business Development (Asia), Liberty House, told Business Standard.
Calls and text messages to Singhvi and his office did not get any response, while questions emailed to Tata Steel remained unanswered.
Pavan Kumar Vijay, founder, Corporate Professionals, and an expert in the Insolvency and Bankruptcy Code said the law provided for confidentiality but it was not being seriously implemented earlier. “All persons involved, whether resolution professional, valuer or those representing creditors, are now made to sign a confidentiality agreement. This is required not only for the money part but all aspects of the resolution process.” He said action should be taken against those breaching it.
Sanjeev Gupta-led Liberty House had filed a petition with the NCLT against the rejection of its bid to acquire debt-ridden Bhushan Power and Steel, which owes nearly INR 450 billion to its lenders. The Committee of Creditors had rejected Liberty House’s resolution plan, saying the bid was submitted after the deadline. The parties would now be heard on March 5.
Under the rules for resolution process, the resolution professional (RP), the suitors for the company, and the committee of creditors that eventually decides on the offer are required to maintain confidentiality. The required secrecy is similar to the process involving mergers and acquisition between companies that sign such confidentiality clause to avoid external influence on valuation. Interestingly, the two rivals in the Bhushan Power and Steel case, Tata Steel and Liberty House, have been in deal talks earlier when the Indian steelmaker sold its UK speciality business to Liberty House. Since Liberty House’s offer came after Tata Steel's bid, the committee of creditors rejected it. Liberty House challenged the decision, stating, “Our bid is superior in every way, why would the creditors reject a higher offer?” This, however, meant that even they were aware of the Tata offer.
While Tata Steel is said to be the aggressive bidder for both Bhushan Steel and Bhushan Power and Steel, leaving behind Sajjan Jindal-led JSW Steel, the $6.8 billion Liberty House claims to have a track record of turning around nearly two dozen businesses. It has plans to invest $10 billion in India over the next five years if it succeeds to take over the stressed assets. Liberty House, which bought Tata Steel's two mills in Britain last year, has already managed to turnaround the units.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 64.78 |
|
|
1 |
INR 85.88 |
|
Euro |
1 |
INR 76.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
SUP |
|
|
|
|
Analysis Done by
: |
PSD |
|
|
|
|
Report Prepared
by : |
KVT |
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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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.