MIRA INFORM REPORT

 

 

Report No. :

498291

Report Date :

17.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

NMDC LIMITED [w.e.f. 17.09.2007]

 

 

Formerly Known As :

NATIONAL MINERAL DEVELOPMENT CORPORATION LIMITED [w.e.f. 05.01.1960]

 

NATIONAL MINERAL DEVELOPMENT CORPORATION PRIVATE LIMITED

 

 

Registered Office :

Khanij Bhavan, 10-3-311 / A, Castle Hills, Masab Tank, Hyderabad-500028, Andhra Pradesh

Tel. No.:

91-40- 23538713-21 (9 Lines) / 23538711

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

15.11.1958

 

 

Com. Reg. No.:

01-001674

 

 

Capital Investment / Paid-up Capital :

INR 3163.900 Million

 

 

CIN No.:

[Company Identification No.]

L13100AP1958GOI001674

 

 

IEC No.:

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACN7325A

 

 

TIN No.:

37260199941

 

 

GST No.:

·         37AAACN7325A1ZU [Hyderabad]

·         22AAACN7325A2Z4 [Kirandul]

·         22AAACN7325A1Z5 [Bacheli]

·         29AAACN7325A1ZR [Donimalai]

·         23AAACN7325A2Z2 [Panna]

·         36AAACN7325A1ZW [Khammam]

 

 

Legal Form :

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

 

 

Line of Business :

The subject is engaged in Exploration and Production of Iron Ore along with Diamond, production and sale of Sponge Iron and Generation and sale of Wind Power. [Confirmed by Management]

 

 

No. of Employees :

5490 (Approximately)

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a state-controlled mineral producer of the Government of India. It is owned by the Government of India and is under administrative control of the Ministry of Steel.

 

It was incorporated in the year 1958 and is engaged in the exploration of oil and minerals. It is an old and well-established company having an excellent track record.

 

For the financial year 2017, the company has increased its revenue from operation as compared to previous year and maintained healthy profit margin of 29.32%.

 

The rating draw comfort from the strong financial profile of the company marked by a robust capital structure and debt protection metrics.

 

The ratings continue to reflect the strategic importance and expectation of continued support from the Government of India, over 30 years of reserves in existing mines and Valid Mining Licences.

 

Share price are quoted high on stock exchange (Share Price of INR 132 with face value of INR 01).

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitments.

 

In view of strong financial base and established market position, the company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

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

INDIA RATING

Rating

Bank Facility = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

29.12.2016

 

Rating Agency Name

INDIA RATING

Rating

Non Fund Based Limit = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk

Date

29.12.2016

 

 

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 31-03-2016.

 

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 17.03.2018

 

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 DECLINED

 

MANAGEMENT NON-COOPERATIVE [91-40-23538711/ 23538713]

 

 

LOCATIONS

 

Registered/ Correspondence:  Office: 

Khanij Bhavan, 10-3-311 / A, Castle Hills, Masab Tank, Hyderabad-500028, Andhra Pradesh, India

Tel. No.:

91-40-23538713-21 (9 Lines) / 23538711

Fax No.:

91-40-23538711

E-Mail :

ims@nmdc.co.in

hois@nmdc.coin

cs_pardha@nmdc.co.in

Website :

www.nmdc.co.in

 

 

Factories :

PLANT / MINE LOCATIONS:

 

The mines / units of the Company are located in the following locations:

 

·         Bailadila Iron Ore Mine Kirandul Complex P.O. Kirandul District:  Dantewada, Chhattisgarh, India

 

·         Bailadila Iron Ore Mine Bacheli Complex P.O. Bacheli,  District Dantewada – 494553, Chhattisgarh, India

 

·         Donimalai Iron Ore Mine Donimalai Township District Bellary - 583118, Karnataka ,India

 

·         Diamond Mining Project Majhgawan, Panna - 488001, Madhya Pradesh, India 

 

·         Sponge Iron Unit, NMDC Limited, SIIL Campus, Paloncha - 507 154, District Khammam, Andhra Pradesh, India

 

 

DIRECTORS

 

AS ON: 31.03.2017

 

Name :

Mr. Ramakishan Ramakishan Tanugula

Designation :

Director

Address :

Plot No. 62, Maithri Enclave, Near Tulasi Gardens, Yapral, Secunderabad-500087, Hyderabad, Telangana, India

Date of Appointment :

17.11.2014

DIN No.:

01312449

 

 

Name :

Mrs. Bhagwati Devi Baldwa

Designation :

Director

Address :

8-2-684/11/2, Road No. 12, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Appointment :

13.11.2015

DIN No.:

01537251

 

 

Name :

Mr. Arun Kumar Srivastava

Designation :

Director

Address :

B 3/12, Vishal Khand 3, Lucknow-226010, Uttar Pradesh, India

Date of Appointment :

13.11.2015

DIN No.:

01940109

 

 

Name :

Mr. Pradip Bhargava

Designation :

Director

Address :

C-2/21 Charimli, Bhopal-462016, Madhya Pradesh, India

Date of Appointment :

27.11.2015

DIN No.:

01986827

 

 

Name :

Mr. Devinder Singh Ahluwalia

Designation :

Director

Address :

Dda Flat No. 17, Pocket-Mgi Block-M, Vikash Puri, New Delhi-110018, India

Date of Appointment :

29.09.2015

 

Abzpa3153e

DIN No.:

02164448

 

 

Name :

Mr. Narendra Kumar Nanda

Designation :

Wholetime Director

Address :

F.No.101, Hno. 8-1-305 & 306, Anand Brindavan Apts Puranbagh, Tolichowki, Golconda, Hyderabad-500008, Telangana, India

Date of Appointment :

01.12.2008

DIN No.:

02455894

 

 

Name :

Mr. Rajesh Kumar Mangal

Designation :

Director

Address :

482, Mahavir Nagar - Pratham, Durgapura, Ward No. 21, Jaipur-302018, Rajasthan, India

Date of Appointment :

13.11.2015

DIN No.:

03033081

 

 

Name :

Mr. Baijendra Kumar Narayanan Nair

Designation :

Managing Director

Address :

D-I/5 Officers Colony Devendranagar Raipur 492001, Chhattisgarh, India

Date of Appointment :

06.09.2017

DIN No.:

03289526

 

 

Name :

Mr. Ashok Kumar Angurana

Designation :

Additional Director

Address :

26, Road No 57, Punjabi Bagh (West), New Delhi-110026, India

Date of Appointment :

16.11.2017

DIN No.:

06600185

 

 

Name :

Mr. Pradip Satpathy Kumar

Designation :

Director

Address :

Qtr No.V/2, Biom Bacheli Complex Po-Bacheli Dantewada 494553, Madhya Pradesh, India

Date of Appointment :

13.12.2014

DIN No.:

07036432

 

 

Name :

Mr. Sunil Barthwal

Designation :

Nominee Director

Address :

D-I/84, Satya Marg, Chanakya Puri, New Delhi-110021, India

Date of Appointment :

11.10.2017

DIN No.:

07066759

 

 

Name :

Mr. Sandeep Tula

Designation :

Director

Address :

Flat No.308, Vijaya Sree Apartment Santosh Nagar Colony, Mehadipatnam, Asif Nagar, Hyderabad-500028, Telangana, India

Date of Appointment :

03.08.2016

DIN No.:

07261884

 

 

Name :

Shyam Murari Nigam

Designation :

Director

Address :

Block E, Flat No.4-1, Sector -13 R.K. Puram, New Delhi-110066, India

Date of Appointment :

27.11.2015

DIN No.:

07355272

 

 

Name :

Mrs. Syamal Kumar Sarkar

Designation :

Director

Address :

C-11/125, Satya Marg, Chanakya Puri, New Delhi-110021, India

Date of Appointment :

27.11.2015

DIN No.:

07387840

 

 

Name :

Mrs. Saraswati Prasad

Designation :

Director

Address :

D-9, 9th Floor, Tower 9 New Moti Bagh, Delhi-110023, India

Date of Appointment :

08.02.2017

DIN No.:

07729788

 

 

KEY EXECUTIVES

 

Name :

Mr. Akella Sri Pardha Saradhi

Designation :

Company Secretary

Address :

10-3-311/A, Nmdc Limited Khanij Bhawan, Masabtank, Hyderabad-500028, Talangana, India

Date of Appointment :

22.01.2015

PAN No.:

ADNPA7837P

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON: 31.12.2017

 

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

2371126192

74.94

(B) Public

792764282

25.06

Grand Total

3163890474

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

Central Government/ State Government(s)

2371126192

74.94

PRESIDENT OF INDIA

2371126192

74.94

Sub Total A1

2371126192

74.94

A=A1+A2

2371126192

74.94


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/

24753778

0.78

Foreign Portfolio Investors

113790310

3.60

Financial Institutions/ Banks

104036630

3.29

LIC OF INDIA PENSION PLUS MIXED FUND

63892411

2.02

Insurance Companies

421369958

13.32

LIFE INSURANCE CORPORATION OF INDIA

389938677

12.32

Any Other (specify)

694515

0.02

Foreign Institutional Investors

694515

0.02

Sub Total B1

664645191

21.01

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

0.00

B3) Non-Institutions

0.00

Individual share capital up to INR 0.200 Million

90914167

2.87

Individual share capital in excess of INR 0.200 Million

4233074

0.13

NBFCs registered with RBI

269355

0.01

Employee Trusts

51657

0.00

Any Other (specify)

32650838

1.03

NRI – Non- Repat

1477995

0.05

NRI – Repat

4164788

0.13

Bodies Corporate

17703616

0.56

Clearing Members

2920351

0.09

Trusts

6379309

0.20

Unclaimed or Suspense or Escrow Account

1840

0.00

IEPF

2939

0.00

Sub Total B3

128119091

4.05

B=B1+B2+B3

792764282

25.06

 

 

BUSINESS DETAILS

 

Line of Business :

The Subject is engaged in Exploration and Production of Iron Ore along with Diamond, Production and sale of Sponge Iron and Generation and sale of Wind Power. [Confirmed by Management]

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

PRODUCTION STATUS: [NOT AVAILABLE]

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

Customers :

·         Rashtriya Ispat Nigam Limited, (VSP)

·         KIOCL Limited

·         Essar Steels Limited

·         JSW Steel Limited

·         Ispat Industries Limited

·         CG based Sponge Iron Units

·         Welspun Max Steel Limited

·         Visveswaraya Iron & Steel Plant

 

 

No. of Employees :

5490 (Approximately)

 

 

Bankers :

 

Bank Name:

Canara Bank

Branch:

--

Person Name (with Designation):

--

Contact Number:

--

Name of Account Holder:

--

Account Number:

--

Account Since (Date/ Year of A/c Opening):

--

Average Balance Maintained (Optional):

--

Credit Facilities Enjoyed (CC/OD/Term Loan):

--

Account Operation:

--

Remarks:

--

 

·         State Bank of India

 

 

Facilities :

SECURED LOANS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

LONG-TERM BORROWINGS

 

 

Loan against FDs

0.000

14969.500

 

 

 

Total

 

0.000

14969.500

 

 

 

Auditors :

 

Name :

Venugopal and Chenoy

Chartered Accountants

 

 

Statutory Auditors :

 

Name:

Tej Raj and Pal

Chartered Accountants

Address:

Hyderabad, Telangana, India

 

 

Branch Auditors 1 :

 

Name:

O P Totla and Company

Chartered Accountants

Address:

Raipur, Chhattisgarh, India

 

 

Branch Auditors 2 :

 

Name:

Vijay Panchappa and Company

Chartered Accountants

Address:

Dharwad, Karnataka, India

 

 

Branch Auditors 3 :

 

Name:

Amit OM and Company

Chartered Accountants

Address:

Allahabad, Uttar Pradesh, India

 

 

Secretarial Auditors :

 

Name:

D. Hanumanta Raju and Company

Chartered Accountants

Address:

Hyderabad, Telangana, India

 

 

Cost Auditors :

 

Name:

Prasad Bharathula and Associates

Cost Accountants 

Address:

Hyderabad, Telangana India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies:

·         Legacy Iron Ore Limited

·         J & K Mineral Development Corporation Limited

·         NMDC Power Limited

·         Karnataka Vijaynagar Steel Limited

·         NMDC Steel Limited

·         Jharkhand Kolhan Steel Limited

·         NMDC-SARL, Madagaskar (Under closure)

 

 

Joint Venture Companies :

·         Kopano-NMDC Minerals (Proprietary) Limited

·         Jharkhand National Mineral Development Corporation Limited

·         NMDC-CMDC Limited. Raipur

·         NMDC-SAIL Limited

·         Bastar Railway Private Limited

 

 

Associate Companies :

·         Romelt-Sail (India) Limited*

·         International Coal Ventures Private Limited

·         Krishnapatnam Railway Company Limited

·         Chhattisgarh Mega Steel Limited

·         Neelachal Ispat Nigam Limited

 

* In the process of liquidation. Public notice has been issued by GOI, Ministry of Corporate affairs vide their notice dated 27.04.2017 to remove/strike off the name of the Company from the Registrar of Companies unless a cause is shown to the contrary within 30 days from the date of notice.

 

 

CAPITAL STRUCTURE

 

AFTER: 22.09.2017

 

Authorised Capital: INR 4000.000 Million

 

Issued, Subscribed & Paid-up Capital: INR 3163.890 Million

 

 

AS ON: 31.03.2017

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

4000000000

Equity Shares

INR 1/- each

INR 4000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

3964716000

Equity Shares

INR 1/- each

INR 3964.700 Million

800825526

Repurchase of Equity shares

INR 1/- each

INR 800.800 Million

 

 

 

 

 

Total

 

INR 4765.500 Million

 

ADDL. NOTES:

 

No new shares were issued during the current year.

 

Board of Directors of the Company in its meeting held on 7th June 2016 approved buyback of 80,08,25,526 equity shares @ INR 94/- for an aggregate consideration of INR 75277.600 million. The buyback offer of shares was closed on 30th September 2016 and the process for buyback was been completed on 10th October 2016. The buyback offer was fully subscribed.

 

Terms/Rights attached to equity shares: “The Company has only one class of equity shares having par value of INR 1/- each and each holder of equity shares is entitled to one vote per share.

 

The details of shares in the company held by each shareholder holding more than 5% shares:

 

Name of the Share holders

31-Mar-2017

 

% of share Holding

Number of shares

President of India

74.94

2371126192

LIC of India (incl all schemes)

12.32

389938677

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET [STANDALONE]

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

31.03.2015

I.      EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

3163.900

3964.700

3964.700

(b) Reserves & Surplus

222025.500

287211.200

319009.000

(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)

225189.400

291175.900

322973.700

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

6112.000

3534.500

3133.300

Total Non-current Liabilities (3)

6112.000

3534.500

3133.300

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

14969.500

0.000

(b) Trade payables

1987.800

3244.200

2262.400

(c) Other current liabilities

20671.100

13096.700

12345.700

(d) Short-term provisions

3060.300

692.800

628.500

Total Current Liabilities (4)

25719.200

32003.200

15236.600

 

 

 

 

TOTAL

257020.600

326713.600

341343.600

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

17307.600

16499.600

12279.200

(ii) Intangible Assets

2220.500

2684.900

905.500

(iii) Capital work-in-progress

118313.600

97228.800

77188.200

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

7269.800

6954.100

5619.300

(c) Deferred tax assets (net)

4533.600

2631.700

1778.800

(d)  Long-term Loan and Advances

924.800

862.100

843.000

(e) Other Non-current assets

20601.200

12206.900

21661.800

Total Non-Current Assets

171171.100

139068.100

120275.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

5400.400

6220.500

6827.300

(c) Trade receivables

10435.200

7960.700

9478.200

(d) Cash and cash equivalents

52892.800

147635.700

184431.400

(e) Short-term loans and advances

0.000

0.000

0.000

(f) Other current assets

17121.100

25828.600

20330.900

Total Current Assets

85849.500

187645.500

221067.800

 

 

 

 

TOTAL

257020.600

326713.600

341343.600

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

 

Revenue from Operations

88296.400

64572.700

123564.100

 

 

Other Income

9088.100

18092.500

22654.000

 

 

TOTAL                                    

97384.500

82665.200

146218.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

53.700

97.300

276.700

 

 

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

988.700

631.200

(169.900)

 

 

Employees benefits expense

8855.800

6461.800

7000.900

 

 

Other expenses

15219.400

12243.200

8203.500

 

 

Excise duty

15.000

14.700

0.000

 

 

Consumption of stores & spares

2640.800

2756.100

3201.700

 

 

Power and electricity

876.000

676.700

642.200

 

 

Repairs & maintenance

1122.200

1192.600

1041.400

 

 

Royalty & other levies

15247.400

8823.100

13901.100

 

 

Selling expenses

7259.300

4171.200

11683.000

 

 

Exceptional items

0.000

1847.800

1130.100

 

 

TOTAL                                    

52278.300

38915.700

46910.700

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

45106.200

43749.500

99307.400

 

 

 

 

 

Less

FINANCIAL EXPENSES                       

207.600

655.900

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION              

44898.600

43093.600

99307.400

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

1961.800

2166.000

1622.300

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX                        

42936.800

40927.600

97685.100

 

 

 

 

 

Less

TAX                                                                 

17045.400

13805.400

33466.500

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX               

25891.400

27122.200

64218.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components & Spare part

168.200

141.300

114.000

 

 

Capital Goods

1697.700

2188.100

2152.400

 

TOTAL IMPORTS

1865.900

2329.400

2266.400

 

 

 

 

 

 

Earnings/ (Loss) Per Share (INR)

7.22

6.84

16.2

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

NA

NA

 

 

 

 

Cash generated from operations

37222.000

35633.500

70386.200

 

 

 

 

Net Cash Flow from operating activities

21333.000

18617.400

40072.200

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

43.14

45.00

28.00

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

8.46

8.11

13.04

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

13511.12

12169.92

2984.37

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

8.35

7.03

14.55

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.33

0.38

1.10

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.10

0.10

0.04

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.00

0.05

0.00

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.11

0.11

0.05

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.61

0.40

0.28

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

217.27

66.70

0.00

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

29.32

42.00

51.97

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

10.07

8.30

18.81

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

11.50

9.31

19.88

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

3.34

5.86

14.51

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

3.13

5.67

14.06

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.88

0.89

0.95

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

0.00

3.78

0.00

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

3.34

5.86

14.51

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

STOCK PRICES

 

Face Value

INR 1.00/-

 

 

Market Value

INR 124.00/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particulars

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

3964.700

3964.700

3163.900

Reserves & Surplus

319009.000

287211.200

222025.500

Share Application money pending allotment

0.000

0.000

0.000

Net worth

322973.700

291175.900

225189.400

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

14969.500

0.000

Total borrowings

0.000

14969.500

0.000

Debt/Equity ratio

0.000

0.051

0.000

 

 

 

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

123564.100

64572.700

88296.400

 

 

(47.742)

36.740

 

 

 

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

123564.100

64572.700

88296.400

Profit/ (Loss)

64218.600

27122.200

25891.400

 

51.97%

42.00%

29.32%

 


ABRIDGED BALANCE SHEET [CONSOLIDATED]

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

I.      EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

3163.900

3964.700

(b) Reserves & Surplus

 

222658.200

287836.200

(c) Money received against share warrants

 

0.000

0.000

Non-controlling interest

 

153.900

168.500

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

225976.000

291969.400

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

6113.200

3535.100

Total Non-current Liabilities (3)

 

6113.200

3535.100

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

14969.500

(b) Trade payables

 

1989.000

3245.200

(c) Other current liabilities

 

20697.800

13144.800

(d) Short-term provisions

 

3060.600

693.800

Total Current Liabilities (4)

 

25747.400

32053.300

 

 

 

 

TOTAL

 

257836.600

327557.800

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

17333.900

16527.700

(ii) Intangible Assets

 

2678.500

3118.000

(iii) Capital work-in-progress

 

118554.500

97470.800

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

6123.000

5916.400

(c) Deferred tax assets (net)

 

4533.600

2631.800

(d)  Long-term Loan and Advances

 

924.800

862.500

(e) Other Non-current assets

 

26987.600

18730.900

(f)Goodwill

 

938.900

938.900

Total Non-Current Assets

 

178074.800

146197.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

5400.400

6220.500

(c) Trade receivables

 

10435.200

7960.700

(d) Cash and cash equivalents

 

53205.100

148061.400

(e) Short-term loans and advances

 

0.000

0.000

(f) Other current assets

 

10721.100

19118.200

Total Current Assets

 

79761.800

181360.800

 

 

 

 

TOTAL

 

257836.600

327557.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

 

Revenue from Operations

 

88296.400

64572.700

 

 

Other Income

 

9101.700

18106.800

 

 

TOTAL                                    

 

97398.100

82679.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

 

53.700

97.300

 

 

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

 

988.700

631.200

 

 

Employees benefits expense

 

8887.500

6498.100

 

 

Other expenses

 

15255.500

12286.900

 

 

Excise duty

 

15.000

14.700

 

 

Consumption of stores & spares

 

2640.800

2756.100

 

 

Power and electricity

 

876.500

676.900

 

 

Repairs & maintenance

 

1123.700

1193.900

 

 

Royalty & other levies

 

15247.400

8826.800

 

 

Selling expenses

 

7259.300

4171.200

 

 

Exceptional items

 

0.000

1847.800

 

 

TOTAL                                    

 

52348.100

39000.900

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

45050.000

43678.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                       

 

207.800

656.500

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION              

 

44842.200

43022.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

1966.500

2180.200

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX                        

 

42875.700

40841.900

 

 

 

 

 

Less

TAX                                                                 

 

17045.400

13805.400

 

 

 

 

 

 

PROFIT/ (LOSS) FOR THE YEAR

 

25830.300

27036.500

 

 

 

 

 

 

SHARE OF NON-CONTROLLING INTEREST (LOSS)

 

11.500

20.200

 

 

 

 

 

 

SHARE OF LOSSES OF ASSOCIATES

 

(403.200)

(1595.700)

 

 

 

 

 

 

PROFIT AFTER ADJUSTING MINORITY INTEREST AND SHARE OF LOSS OF ASSOCIATES

 

25438.600

25461.000

 

 

 

 

 

 

Earnings/ (Loss) Per Share (INR)

 

7.10

6.42

 

 

LEGAL CASES

 

 


 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

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

Yes

18

Major suppliers

No

19

Major customers

Yes

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES

 

CHARGES REGISTERED

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G10455103

90259387

STATE BANK OF HYDERABAD

25/02/1982

13/01/2004

19/08/2016

6000000.0

O. BRANCHSOMAJUGUDAHYDERABADAPIN

2

G10453264

90260517

STATE BANK OF HYDERABAD

08/03/1982

-

18/08/2016

6000000.0

KOTHAGUDAMKHAMMAMAPIN

3

G10449809

90260513

STATE BANK OF HYDERABAD

25/02/1982

06/02/1995

18/08/2016

6000000.0

KOTHAGUDAM BRANCHKHAMMAMAPIN

4

G10456713

90259578

STATE BANK OF HYDERABAD

29/09/1992

26/07/1993

12/08/2016

22500000.0

MASAB TANK BRANCHHYDERABADAP500028IN

5

A52462173

90338895

STATE BANK OF HYDERABAD

16/05/1995

-

08/12/2008

34140000.0

OVERSEAS BRANCHHYDERABADAPIN

 

 

MANAGEMENT DISCUSSION & ANALYSIS


NMDC: AN OVERVIEW

 

INTRODUCTION

 

NMDC, incorporated in 1958, is the largest iron ore mining company in India. With iron-ore production of around 34 million tonnes per annum (MTPA) in FY'17, it has a market share of about 25% domestically (excluding captive iron ore production). Average grade of iron ore of NMDC sold in the market is ~64% Fe, which is one of the best globally.

 

With a Profit (before tax) of INR 42930.000 MILLION in FY'17, it is one of the top profit-making 'Navratna' public sector companies in the country. It has a net worth of INR 225190.000 million (as on 31st March, 2017). It has a strong history of rewarding investors with an average dividend payment of over 800% in the last 5 years.

 

NMDC continues to pursue policies and programmes to deliver long term value to all its stakeholders. NMDC has also invested substantially in the socio-economic development of the local communities, especially near its mining projects.

 

OPERATING PROJECTS

 

NMDC is operating three highly-mechanised iron ore mine complexes. Two complexes are located in Dantewada (Chhattisgarh) namely Bailadila Iron Ore Mine, Kirandul Complex & Bailadiala Iron Ore Mine, Bacheli Complex with yearly production of around 22 MT. One complex in Donimalai Iron Ore Complex, located in Bellary (Karnataka) produces 12 MT per annum

 

NMDC is also operating a diamond mine namely Diamond Mining Project, Panna (M.P.), which is the only mechanized diamond mine in Asia, with yearly production of around 35,000 carats. NMDC also has a sponge iron unit of 200 TPD, at Paloncha (Telangana).

 

GLOBAL PRESENCE

 

Spreading its footprint globally, NMDC has a majority stake of 78.56% in Legacy Iron Ore limited, Australia which has iron ore, gold, base metal interests (19 tenements) in Western Australia.

 

ICVL, a JV company of SAIL, RINL, NTPC, CIL and NMDC acquired a coking/thermal coal mine in Mozambique. Operations were discontinued due to the depressed coking coal prices from December 2015. In view of upswing in the coking coal prices, ICVL is in the process of restarting operations at the Benga Mine.

 

NMDC is in the process of setting up of a pilot-scale processing plant for gold in its mining lease in Tanzania.

 

GROWTH PLAN

 

NMDC has made a comprehensive plan to enhance iron ore production capacity to 67 MTPA by FY'22 to meet the growing requirements of iron ore of the Indian Steel sector. The strategy focuses on growth largely through brown field expansion of existing mines and improving evacuation along with it

 

Development of a green- field mines (Deposit 13) has also been planned through Joint Venture with the Chhattisgarh State Mining development Corporation.

 

NMDC is in the process of setting up a slurry pipeline in phases for evacuation of iron ore at economical cost to such locations from where the pellets /ore are made available to industry. Efforts to increase evacuation capacity through doubling of Kirandul-Kothavalasa (KK) line is also in full swing.

 

NMDC is developing iron ore stockyard in Chhattisgarh for uninterrupted supplies to customers

 

For further expansion in capacity, NMDC is pursuing allocation of new iron ore deposits both through participation in auction and reservation through government dispensation route ( section 17A(2A) of the revised MMDR Act, 2015).

 

Besides, as a part of its diversification and forward integration plan, it is setting up a 3.0 MTPA green field Steel Plant at Nagarnar in Chhattisgarh, which is in advanced stage of construction. It also has forayed in pellet-making with a 1.2 MTPA pellet plant started trial at Donimalai. Another 2 MTPA pellet plant is in the process of being set up at Nagarnar, Chattisgarh.

 

MARKET ENVIRONMENT:

 

ECONOMY:

 

GLOBAL:

 

Global growth for 2016 is estimated at 3.2 percent, from a level of 3.4 percent in 2015. Going ahead, pick-up in the global growth has been projected to 3.5 percent in 2017 and 3.6 percent in 2018. Economic activity in both advanced economies and emerging & developing economies is forecasted to accelerate in 2017, to 2 percent and 4.6 percent respectively.

INDIA

 

India has emerged as the world's fastest economy, with policies and reforms by the Government supporting higher growth. Prudent fiscal regime and calibrated monetary policy has reigned in inflation and strengthened macro-economic stability. Lower crude oil prices globally have also helped Indian economy reduce current account deficit and boost the overall economy of the country

 

India's economy is estimated to grow by 7.1% in FY 2016-17 as per Central Statistics Office (CSO) from 7.9% recorded in the previous financial year. The growth momentum of the Indian economy is expected to rise with measures by the Government in areas such as, taxation (Goods & Service Tax), ease of doing business, Foreign Direct Investment (FDI) reforms, etc. Another major factor helping India's economy is the expected lower global oil prices, which has a significant impact on the country's import bill, improving fiscal condition.

 

The thrust of Government of India to enhance spending on infrastructure augurs well for the Steel industry and thereby, the iron ore sector.

 

IRON ORE INDUSTRY OUTLOOK:

 

GLOBAL:

 

The steel industry witnessed a major growth cycle in the last two decades, driven by China's growth. It, in-turn, stimulated a massive increase in global iron ore production, more than doubling from 950 million tonnes per annum (Mtpa) in 2000 to over 2200 Mtpa in 2016. These market fundamentals incentivized new iron ore producers to enter the industry, and encouraged existing players to expand their operations, to meet this unprecedented demand. However, the iron ore industry is currently passing through a phase where supply is exceeding demand globally and this surplus scenario is likely to continue in the coming years. As a result, the prices of iron ore have come down in the recent past and are likely to remain subdued in the near future.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2017

 

(INR IN MILLION)

 

 

Particulars

Quarter

Ended

31.12.2017            

Quarter

Ended

30.09.2017            

Nine Months

Ended

31.12.2017            

 

 

(Unaudited)

(Unaudited)

(Unaudited)

 

 

 

 

 

1.

Income from operations

 

 

 

 

Net Sales (Net or Excise Duty)

24690.300

24213.300

77319.000

 

Other operating Income

1111.400

1098.500

3495.800

 

Total Income from operations (Net)

25801.700

25311.800

80814.800

 

 

 

 

 

2.

Expenses

 

 

 

 

Consumption of Raw Material

24.400

41.500

65.900

 

Excise Duty

0.000

0.000

0.100

 

Consumption of stores and spares

601.500

510.400

1668.500

 

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

(280.800)

1325.400

767.000

 

Employee benefits expense

2183.600

2123.800

6343.300

 

Royalty and other levies

5176.200

3475.000

13578.600

 

Selling Exps. including freight

1080.500

1392.500

4656.000

 

Depreciation and amortisation expense

771.700

619.600

1858.200

 

Finance cost

111.800

101.700

295.000

 

Other expenditure

3806.300

3314.600

11161.800

 

Total Expenses

13475.200

12904.500

40394.400

 

 

 

 

 

7.

Profit from ordinary activities before exceptional Items and Tax

12326.500

12407.300

40420.400

8.

Exceptional Items

(1449.400)

0.000

(1449.400)

9.

Profit Before Tax

13775.900

12407.300

41869.800

10.

Tax expense

4909.500

3963.300

14866.800

11.

Net profit from ordinary activities after tax

8866.400

8444.000

27003.000

 

Loss from discontinued operations

(1.600)

(1.600)

(4.100)

 

Tax Expense of discontinued operations

(0.500)

(0.600)

(1.400)

 

Loss from discontinued operations [after tax]

(1.100)

(1.000)

(2.700)

 

Net profit/ loss for the year

8865.300

8443.000

27000.300

 

Other comprehensive income

(167.700)

(167.600)

(503.000)

 

Total comprehensive income

8697.600

8275.400

26497.300

14.

Paid - up Equity Share Capital

3163.900

3163.900

3163.900

 

Face value of per share (Re)

1

1

1

 

Other equity excluding revaluation reserve

 

 

 

15.

Earnings Per Share (EPS)

 

 

 

 

Basic and diluted EPS before exceptional Items for the period (INR)

2.80

2.67

8.53

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

Particulars

Quarter

Ended

31.12.2017            

Quarter

Ended

30.09.2017            

Nine Months

Ended

31.12.2017            

 

(Unaudited)

(Unaudited)

(Unaudited)

 

 

 

 

1] Segment Revenue

 

 

 

(Sale/ Income from each segment )

 

 

 

Iron Ore

24289.400

23952.600

76422.800

Other Minerals and Services

400.900

260.700

896.200

Total

24690.300

24213.300

77319.000

Less: Inter Segment Revenue

0.000

0.000

0.000

Sale/ Income from Operations

24690.300

24213.300

77319.000

 

 

 

 

2] Segment Results

 

 

 

(Profit (+)/ Loss (-) before tax and interest from each segment)

 

 

 

Iron Ore

13568.800

11889.800

41109.200

Other Minerals and Services

(222.300)

(348.500)

(620.900)

Total

13346.500

11541.300

40488.300

Less: Finance Cost

111.800

101.700

295.000

Add: Other Un-Allocable Income net off Un-Allocable Expenditure

539.600

966.100

1672.400

Profit Before Tax    

(Including discontinued operations)

13774.300

12405.700

41865.700

 

 

 

 

3] Segment Assets

 

 

 

Iron Ore

57951.900

57184.800

57951.900

Other Minerals and Services

6665.100

6783.200

6665.100

Un-allocated

209476.200

205523.100

209476.200

Total Assets

274093.200

269491.100

274093.200

 

 

 

 

4] Segment Liabilities

 

 

 

Iron Ore

18016.900

16876.100

18016.900

Other Minerals and Services

347.800

339.900

347.800

Un-allocated

12536.000

17758.200

12536.00

Total Liabilities

30900.700

34974.200

30900.700

 

 

 

 

5] Capital Employed

 

 

 

(Segment assets-Segment liabilities)

 

 

 

Iron Ore

39935.000

40308.700

39935.000

Other Minerals and Services

6317.300

6443.300

6317.300

Un-allocated

196940.200

187764.900

196940.200

Total

243192.500

234516.900

243192.500

 

NOTES:

 

1.     The Company opts to publish the financial results on Standalone basis.

 

2.     The unaudited financial results of the company for the quarter/nine months ended 31st December 2017 duly reviewed by the Audit Committee have been approved by the Board of Directors at its meeting held on 13th February 2018. 

 

3.     An amount of INR 453.000 million for the quarter and INR 956.700 million up to the quarter ended December 2017 are included under the head “Other Expenses” towards expenditure on enabling facilities towards doubling of railway line between Kirandul - Jagdalpur and railway line between Jagdalpur – Ambagaon, required for augmentation of evacuation capacity of Bailadila sector and others. 

 

4.     An amount of INR 762.500 million for the quarter and INR 2307.400 million up to the quarter ended December 2017 towards expected credit loss (ECL) are included under the head “Other Expenses”. 

 

5.     An amount of INR 238.900 million for the quarter and INR 681.700 million up to the quarter ended December 2017 towards mines closure obligation are included under “Other Expenses”. 

 

6.     Consequent upon the judgement of Hon’ble Supreme Court of India dated 13th October 2017 in TC (Civil) no 43/2016 regarding determination of effective date of liability towards District Mineral Fund (DMF), the company has reversed a net amount of INR 1449.400 million which pertains to the period prior to the effective date (17th Sep 2015) and included in “Exceptional items”. 

 

7.     The Company has been legally advised that there is no impact of the Hon’ble Supreme Court of India judgement with reference to the writ petition (Civil) no. 114 of 2014 dated 2nd August 2017 on NMDC. However, in case it is found applicable to NMDC at a later date, it may impact the profits of the company. 

 

8.     The financial results have been reviewed by the Statutory Auditors as required under regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. 

 

9.     Figures for the previous period have been regrouped wherever considered necessary so as to conform to the classification of the current period. 

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

Claims against the company not acknowledged as debts consisting of:

 

 

Disputed claims under Property tax, Export tax, Conservancy Tax, Sales Tax, Service Tax, Income tax etc.

18772.800

21149.400

Claims by contractors under arbitration

1733.000

--

On capital account

--

--

On revenue account

--

1.600

Other claims on company not acknowledged as debts

850.800

884.400

Contingent liability on bills discounted/ LCs/BG's

5887.100

3.000

 

The Company has issued letter of comfort in favour of International Coal Venture (P) Limited (ICVL) in furtherance for providing Corporate Guarantee of US$ 30 Mn by them to EXIM Bank on behalf of Minas De Benga Limitada, Mozambique (Borrower), a downstream operating subsidiary of ICVL, New Delhi in respect of short term working capital loan. The said letter of comfort does not in any way constitute the guarantee or security by the Company of the duties of the borrower to meet its obligation under the said facility.

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant & Machinery

·         Heavy Mobile Equipment

·         Furniture & fittings

·         Vehicles

·         Office Equipment

·         Roads, bridges etc.

·         Dams, Wells & Pools

·         Railway sidings

·         Locomotives

·         Electrical Installations

·         Sanitary & W. S. Installations

 

 

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or 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 64.87

UK Pound

1

INR 90.49

Euro

1

INR 79.91

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

PRS

 

 

Report Prepared by :

RUP

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

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

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.