MIRA
INFORM REPORT
|
Report Date : |
22ND
May, 2006 |
IDENTIFICATION
DETAILS
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Name : |
KALYANI
STEELS LIMITED |
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Registered Office : |
Mundhwa, Bombay-Pune Road, Pune-411 036,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
28th
February, 1973 |
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Com. Reg. No.: |
16350 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEK05371C |
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Legal Form : |
A
public limited liability company. The company’s shares are listed on the
stock exchanges |
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Line of Business : |
Manufacturers
of Steel and Steel Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
9500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is an established company but profit margin is under severe pressure.
Directors are reported as experienced, respectable and resourceful
industrialists. Their trade relations are fair. Payments are reported as slow
but correct. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
Mundhwa, Bombay-Pune Road, Pune-411 036,
Maharashtra, India |
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Tel. No.: |
91-20-26870806/26870435/26823344 |
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Fax No.: |
91-20-26871808/26871738 |
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E-Mail : |
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Website : |
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Factory
1 : |
·
Mundhwa, Bombay-Pune Road, Pune-411 036, Maharashtra, India Tel. No. 91-20-2687 0806 / 2687 0435 Fax No. 91-20-2687 1808 E-Mail : ksl@pune.kalyanisteels.com ·
Carbon
& Alloy Steel project located at : Hospet Road, Ginigera, Taluka &
District Koppal, Karnataka – 583 228, India |
DIRECTORS
|
Name : |
Mr. B.
N. Kalyani |
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Designation : |
Chairman |
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Name : |
Mr.
Amit B Kalyani |
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Designation : |
Director
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Name : |
Mr. S.
S. Hiremath |
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Designation : |
Director
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Name : |
Mr. S.
M. Kheny |
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Designation : |
Director
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Name : |
Mr.
Ajeet Prasad |
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Designation : |
UTI Nominee |
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Name : |
Mr. C.
G. Patankar |
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Designation : |
Executive Director |
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Name : |
Mr.
Suresh Pandey |
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Designation : |
Wholetime
Director |
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Name : |
Mr. B.
B. Hattarki |
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Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Mr. D.
R. Puranik |
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Designation
: |
Company Secretary |
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Our Management team includes : |
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Mr. B.
N. Kalyani |
Chairman |
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Mr. C.
G. Patankar |
Executive
Director |
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Mr. B.
B. Hattarki |
Whole
Time Director |
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Mr. S.
Pandey |
Whole
Time Director |
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Mr.
Sanjay Nath |
Vice
President Marketing |
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Mrs.
D. R. Puranik |
Company
Secretary |
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Mr. R.
Murali |
I.T.
Incharge/AVP MIS & Costing |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
23,173,718 |
55.11 |
|
Financial Institutions |
358,050 |
0.85 |
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Mutual Funds |
749,162 |
1.78 |
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Insurance Companies |
1,273,605 |
3.03 |
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Banks |
13,286 |
0.03 |
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FIIs |
966,831 |
2.30 |
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Bodies Corporate |
6,795,076 |
16.16 |
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NRIs / OCBs |
186,580 |
0.44 |
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Indian Public |
8,536,752 |
20.30 |
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Total |
42,053,060 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Steel and Steel Products. |
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Products : |
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GENERAL
INFORMATION
|
Client |
v
Alcan
Iceland , Iceland v Forging v
Aluminium
Bahrain B. S. C. (C) Alba-Bahrain v Forging v
Alcan
Steg. Switzerland v Forging v
Bharat
Forge Limited. India v Forging v
BHEL
, Trichy , India v Forging v
Comalco
Bellbay , Australia v Forging v
CVG
Venalum , Venezuela v Forging v
Dubai
Aluminium Company Limited ( Dubal ), Dubai v Forging v
Echjay
Industries Limited. , India v Forging v Indian Seamless Metal Tubes
Limited. , India v Seamless Tube Maharashatra Seamless Limited. , India v Seamless Tube Mahindra & Mahindra , India v
Auto Milltech Private Limited. , Australia v Forging v
M
M Forgings Limited. , India v Forging v
National
Forge , Australia v Forging v
PT
. Prekasa Indobaja, Indonesia v Forging v
Sadhu
Forgings Limited. , India v Forging v
Tata
Moters. Auto TomagoAl. , Australia v Forging |
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No. of Employees : |
890 |
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Bankers : |
v
Bank
of Baroda v
Union
Bank of India v
Canara
Bank v
HDFC
Bank Limited v
State
Bank of India |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Dalal
& Shah Chartered
Accountants |
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Address: |
49-55,
Bombay Samachar Marg, Fort, Mumbai – 400 023, Maharashtra, India |
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Associates/Subsidiaries : |
v
Hospet
Steels Limited v
Kalyani
Mukand Limited v
Hikal
Limited v
Kalyani
Ferrous Industries Limited SUBSIDIARIES
v
Chakrapani
Investments & Trades Limited v
Surajmukhi
Investments & Finance Limited v
Gladiolla
Investments Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
47,500,000 |
Equity Shares |
Rs.10/- each |
Rs. 475.000 millions |
|
3,010,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 301.000 millions |
|
2,400,000 |
Unclassified Shares |
Rs.10/- each |
Rs. 24.000 millions |
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TOTAL |
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RS. 800.000 millions |
Issued,
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No.
of Shares |
Type |
Value |
Amount |
|
42159380 |
Equity Shares |
Rs.10/- each |
Rs. 421.593 Millions |
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Subscribed
& Paid-up Capital : |
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42053060 |
Equity Shares, fully paid Total Subscribed
and fully paid up |
Rs.10/- each |
Rs. 420.530 Millions |
|
106320 |
**Add : Forfeited Equity Shares (Amount
Paid up) |
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Rs. 0.379 Millions |
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Total |
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Rs. 420.909 Millions |
Of the above shares –
3,843,750 Equity Shares of Rs.10/- each were
issued as fully paid bonus shares by way of Capitalisation of Reserves.
12,000,000 Equity Shares allotted on 13th March,
2004 to shareholders of erstwhile Kalyani Ferrous Industries Limited, pursuant to a Scheme of Arrangement, constituting an amalgamation
in the nature of a merger of Kalyani Ferrous Industries
Limited with the Company as approved by High Court of Judicature at Bombay,
vide its Order dated 15th January, 2004.
Amount received on Equity Shares forfeited on
25th February, 1997 on account of non-payment of allotment / call money.
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
420.909 |
420.900 |
400.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2031.416 |
1876.400 |
2404.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2452.325 |
2297.300 |
2804.900 |
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LOAN FUNDS |
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|
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1] Secured Loans |
1317.598 |
1395.900 |
691.200 |
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2] Unsecured Loans |
85.981 |
105.100 |
156.400 |
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TOTAL BORROWING |
1403.579 |
1501.000 |
847.600 |
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DEFERRED TAX LIABILITIES |
237.926 |
0.000 |
0.000 |
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TOTAL |
4093.830 |
3798.300 |
3652.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1999.374 |
1885.200 |
935.400 |
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Capital work-in-progress |
104.673 |
404.200 |
265.600 |
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INVESTMENT |
807.970 |
810.700 |
1382.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
587.317
|
358.200 |
154.200 |
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Sundry Debtors |
1328.572
|
906.900 |
1285.600 |
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Cash & Bank Balances |
81.082
|
161.700 |
46.000 |
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Other Current Assets |
55.771
|
0.000 |
0.000 |
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Loans & Advances |
914.667
|
1089.900 |
346.800 |
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Total Current Assets |
2967.409
|
2516.700 |
1832.600 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
1627.367
|
1786.300 |
747.700 |
|
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Provisions |
158.229
|
32.200 |
17.900 |
|
Total Current Liabilities |
1785.596
|
1818.500 |
765.600 |
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Net Current Assets |
1181.813
|
698.200 |
1067.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
2.500 |
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TOTAL |
4093.830 |
3798.300 |
3652.500 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
7715.894 |
4715.861 |
3638.000 |
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Profit/(Loss)
Before Tax |
645.185 |
178.915 |
87.000 |
|
Provision
for Taxation |
215.098 |
59.254 |
30.800 |
|
Profit/(Loss)
After Tax |
430.087 |
119.661 |
56.200 |
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Export
Value |
18.357 |
79.720 |
NA |
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Import
Value |
1949.579 |
1018.398 |
NA |
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Total
Expenditure |
7067.137 |
4536.946 |
1685.000 |
QUARTERLY
|
PARTICULARS |
30.06.2005 [1ST Quarter] |
30.09.2005 [2nd Quarter] |
31.12.2005 [3rd Quarter] |
|
Sales Turnover |
1360.200 |
1505.300 |
1402.300 |
|
Other Income |
9.300 |
317.000 |
1.800 |
|
Total Income |
1369.500 |
1822.300 |
1404.100 |
|
Total Expenditure |
1053.600 |
1190.000 |
1088.800 |
|
Operating Profit |
315.900 |
632.300 |
315.300 |
|
Interest |
12.400 |
9.000 |
9.800 |
|
Gross Profit |
303.500 |
623.300 |
305.500 |
|
Depreciation |
51.600 |
42.200 |
42.000 |
|
Tax |
37.300 |
25.900 |
12.800 |
|
Reported PAT |
167.800 |
505.000 |
178.300 |
200506
Quarter 1
- Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(9.212) million Consumption of Raw Materials Rs 739.177 million Conversion cost
Rs 182.077 million Goods Purchased for resale Rs 27.663 million Staff Cost Rs
32.320 million Other Expenditure Rs 81.149 million Trial Run Income net of
expenditure Rs 0.380 million Tax Includes Provision for Current Tax Rs 36.650
million Deferred Tax Rs 46.841 million Fringe Benefit Tax Rs 0.600 million EPS
is Basic and Diluted Status of Investor Complaints for the quarter ended June
30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The supply and
procurement of the products between the constituents of the composite
manufacturing facility at Ginigera, under Strategic Alliance effective February
01, 2005, are carried out (in Conversion Basis as against Sales. Hence, the
above revenues and components of cost of goods sold in respect of current
quarter are strictly not comparable with previous period. However, this has no
effect on the profits of the above periods. 2. The Company commenced commercial
generation of Power during the Quarter on April 20, 2005. 3. Previous year
figures have been regrouped and reclassified wherever necessary. 4. The above
results were taken on record by the Board of Directors of the Company at its
meeting held on July 26, 2005.
200509
Quarter 2
- The supply and procurement of the products between the constituents of
the composite manufacturing facility at Ginigera,under Strategic Alliance
effective 1s February,2005,are carried out on 'Conversion Basis' as against
'sales'.Hence,the above revenues and components of cost of goods sold in
respect of current quarter are strictly not comparable with previous
periods.However,this has no effect on the profits of the above periods.
2.during the quarter one investor complaint was received and redressed.There
were no investor complaints pending for redressal as at the commencement and
end of the quarter. 3.The Company commenced production of Pig iron plant taken
on lease on 24th July,2005. 4.Extraordinary item of income for the quarter
represents profit on sale of shares of Kalyani Brakes Limited. 5.Previous year
figures have been regrouped and reclassified wherever necessary. 6.The above
results were taken on record by the Board of Directors of the company at its
meeting held on 30th October,2005.
200512
Quarter 3
- Tax Includes Provision for Current Tax Rs 12.364 million Deferred Tax
Rs 72.425 million Fringe Benefit Tax Rs 0.350 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended December 31, 2005
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 05 Complaints disposed off during the quarter 05 Complaints
unresolved at the end of the quarter Nil 1.(i) The supply and procurement of
the products between the constituents of the composite manufacturing facility
at Ginigera, under Strategic Alliance effective February 01, 2005, are carried
out (in Conversion Basis as against Sales. Hence, the above revenues and
components of cost of goods sold in respect of current quarter are strictly not
comparable with previous period. However, this has no effect on the profits of
the above periods. (ii). The Company commenced production of pig iron plant
taken on lease in the previous quarter. 2. Extra Ordinary item of income for
the nine months ended December 31, 2005 represents profit on sale of shares of
Kalyani Brakes Ltd. 3. Previous year figures have been regrouped and
reclassified wherever necessary. 4. The above results were taken on record by
the Board of Directors of the Company at its meeting held on January 23, 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
0.61 |
0.47 |
0.33 |
|
Long
Term Debt Equity Ratio |
0.57 |
0.40 |
0.25 |
|
Current
Ratio |
1.33 |
1.45 |
1.78 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
3.47 |
2.91 |
3.10 |
|
Inventory
|
19.52 |
20.79 |
23.84 |
|
Debtors |
8.26 |
4.86 |
2.83 |
|
Interest
Cover Ratio |
5.65 |
1.79 |
1.82 |
|
Operating
Profit Margin (%) |
10.55 |
10.42 |
6.96 |
|
Profit
Before Interest and Tax Margin (%) |
8.49 |
7.63 |
5.43 |
|
Cash
Profit Margin (%) |
6.72 |
5.03 |
3.11 |
|
Adjusted
Net Profit Margin (%) |
4.66 |
2.25 |
1.58 |
|
Return
on Capital Employed (%) |
20.48 |
11.04 |
5.29 |
|
Return on Net Worth (%) |
18.11 |
4.84 |
2.03 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.354.00/- |
|
Low |
Rs.312.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Kalyani
Steels (KSL), promoted by B N Kalyani, was established in 1973 and has its
works at Mundhwa, Pune. The company is one of the leading mini steel plants
manufacturing forging quality carbon and alloy steels using the electric arc
furnace route. KSL produces engineering and alloy steel ingots, blooms and
billets conforming to international standards. Its products range between 36 mm
and 140 mm in diameter. KSL has absorbed various technologies from Aichi
Steels, Japan; Mann, Germany; Inteco, Austria; and Concast, Switzerland.
KSL has also set up an electro-slag refining (ESR) plant to manufacture
ingots with a maximum diameter of 800 mm. The company went public in Sep.'92
with an issue of FCDs and NCDs with warrants attached to part-finance its
seamless pipe project at Baramati near Pune.
In Jan.'95, the company transferred its 90,000-tpa carbon and alloy steel
seamless tubes plant at Baramati, Pune, to Kalyani Seamless Tubes, a company
promoted especially to take over this project. During the year 1999-2000,
Kalyani Seamless Tubes,a company promoted by Kalyani Steels merged with Indian
Seamless Tubes Ltd.
The subsidiaries of the company are Chakrapani Investments and Trade Ltd,
Surajmukhi Investments and Finance Ltd & Gladiolla Investments Ltd.Kalyani
Steels Ltd (KSL), has teamed up with the US-based Carpenter Technology
Corporation(26% stake) to set up a joint venture, Kalyani Carpenter Special
Steels Ltd to manufacture high value-added steels. Carpenter and Kalyani have
established a second joint venture, Kalyani Carpenter Metal Centres Ltd, for
opening distribution centres.
For captive consumption purposes the company intends to set up a 7.5 MW
capacity power plant by using blast furnace gas generated by the mini blast
furnaces. By setting up the power plant the company expects to bring down the
input cost of steel prodcution and increase the competitiveness of the end
products. The project cost is pegged to be around Rs.270 million and would be
financed by way of internal accruals and debts. During April 2005 the company
has commissioned the power plant which uses the blast furnace gases generated
by mini blast furnaces at a total capital expenditure of Rs.251 million.
The Company has entered into an agreement with Gujarat NRE Coke Ltd for
setting up of coke oven batteries project. The company has contributed to 40%
equity stake in Bharat NRE Coke Ltd (BNCL). BNCL has planned to set up eight
coke oven batteries at Dharwad, Karnataka. During April 2005 the company has
commissioned the first coke oven battery and the second battery is in process and
both the batteries taken together are expected to produce 5400 tonnes per month
of coke. The project is expected to be completed by November 2005.
In the 2004-05 the company has commenced a project for integrated steel
manufacturing project of 30000 TPA at village Ginigera, Koppal, Karnataka. The
company will commission 350m3 capacity Mini Blast Furnace, Coal based Sponge
Iron Plant of 350 TPD capacity and Power plant to utilise the engery of the
flue gases generated in the above processes in the first phase and in the
second phase it will commission steel melting shop and Rolling Mills.
Further the company has entered into lease agreement with Shree Ram
Electrocast Pvt Ltd to lease the pig iron making facilites consisting of one
mini blast furnace of 175m3 capacity, pig casting machine, raw material
handling system, electrical facilites including 2.5 MW captive power plant etc.
This facility is located at Village Honarhalli and Halekote, Bellary, Karnataka
and it is expected to produce 108000 TPA of Pig Iron. The facility is expected
to commence its operations from July 2005.
Kalyani Ferrous Industries Ltd (KFIL) was merged with the company through
a scheme of Amalgamation. According to the Scheme of Merger the company has
issued 2 equity shares of Rs.10/- each of the company to the shareholders of
KFIL for every 9 equity shares of Rs.10/- each held by them in KFIL.
History Of
Company
YEAR EVENTS 1973 - The company was
incorporated on 28th February, at Pune. The company was promoted by Mr. B.N.
Kalyani. The Company manufacture mild steel/carbon/alloy steel ingots and
billets and chemicals.
1979 - The company entered into a
technical and management consultancy contract with the Gulf Venture, Company at
Doha, in the State of Qatar for processing scrap.
1981 - The Company promoted a new
company under the name and style of Kalyani Brakes Ltd., to manufacture
1,00,000 sets of hydraulic air and air over hydraulic brakes and brake systems
in collaboration with Bendix Group of Companies, U.S.A.
1982 - The Company received a letter
of intent for the manufacture of additional 18,000 tonnes of steel per annum.
The Company negotiated with Hiremates Chemicals Ltd. (HCL), to run its chemical
manufacturing unit for a period of 5 to 7 years.
- The Company undertook to set up a seamless pipe project at
Baramati, Dist. Poona in Maharashtra.
1983 - Chakrapani Investment &
Trader Ltd. and Suryamukhi Investment & Finance Ltd. became wholly owned
subsidiaries of the Company.
- Surajmukhi Investment & Finance Ltd. and Hikal Chemical
Industries Ltd. are subsidiaries of the Company.
- 3,00,000 Bonus Equity shares allotted in the prop. 1:2 on 7th
November.
1984 - The Manufacture of chemicals
was undertaken on a pilot project basis.
- 2,25,000 No. of equity shares offered at par for public
subscription during April.
1985 - Laddle Furnace Vacuum
Degassing Equipment was installed.
- In April,
50,000-15% secured non-convertible redeemable debentures of Rs 100 each were
privately placed with Army Group Insurance Directorate. These debentures are
redeemable at a premium of 5% after 7 years from the date of allotment.
- In April, the Company issued 1,12,500-15% secured,
non-convertible redeemable debentures of Rs 100 each as rights in the
proportion 1 debenture for every 10 shares held. These debentures are
redeemable at a premium of 5% at the end of 7 years from the date of allotment.
1986 - The company installed on ultra high power furnace to commence ferrous
and non-ferrous casting manufacturing activity.
1987 - During the year, the Company
undertook installation of electro-slag refining facility and continuous casting
unit with a view to modernising and upgrading the manufacturing technology.
- 56,250 No. of equity shares issued at par for the benefit and
welfare of Senior Executives of the Company.
1989 - Dandakaranya Investment &
Trading Ltd., Dronacharya Investment & Trading Ltd., Hastinapur Investment
& Trading Ltd., Cornflower Investment & Finance Ltd. and Campamela
Investment & Finance Ltd. ceased to be subsidiaries with effect from 12th
October, 1989.
- 11,81,250 bonus equity shares issued in prop. 1:1 on 4th April.
1990 - The Company offered
33,07,500-14% Secured Redeemable Partly convertible debentures of Rs 150 each
to the equity shareholders and employees on rights basis in the proportion of 2
debentures: 3 equity shares held all were taken up. 11,66,666 debentures were
issued to the public through the prospectus (all taken up).
- These debentures consist of part A of Rs 60 and part B of Rs 90.
Part A of Rs 60 will be automatically and compulsorily converted into one
equity share of Rs 10 each at a premium of Rs 50 per share on the expiry of 6
months from the date of allotment. Part B of Rs 90 will be a non-convertible
portion of the debentures redeemable at par in three equal annual instalments
at the end of the 6th, 7th and 8th year from the date of allotment.
- The Company also issued 19,90,000-14% secured redeemable
non-convertible debentures of Rs 100 each on rights basis in the proportion of
21 debentures: 50 No. of equity shares held (81,462 debentures were taken up).
The balance 18,84,890 debentures were allotted to financial institutions. These
debentures are redeemable at a premium of 5% at the end of 7 years from the
date of allotment.
- 12,62,500 bonus equity shares issued in prop. 1:1 on 1st
December.
1991 - The Company allotted
5,00,000-19% secured redeemable non-convertible debentures of Rs 100 each and
12,00,000-19% secured redeemable debentures of Rs 100 each to financial
institutions on private plant basis.
- These are redeemable at a premium of Rs 5 per debentures at the
end of 6th, 7th & 8th year from the date of allotment i.e. 3.2.1992 and
14.2.1992 respectively.
1992 - The Cold Pilger mill HPT 90
and HPT 55 were installed.
- The Company
undertook to set up facilities for carrying out threading and coupling of
seamless pipes to enable the Company explose oil country tubular goods market
more effective.
- During September, the company had offered 46,00,000-16% fully
convertible debentures of Rs 155 each on Rights basis in prop. 1 deb: 2 equity
shares held.
- Another 2,30,000 debentures were issued to the employees' on an
equitable basis (only 54,050 debs. taken up).
- Each debenture was to be converted into one equity sum of Rs 10
each at a premium of Rs 145 per share on expiry of 6 months from date of
allotment of debentures. Accordingly 46,54,060 No. of equity shares were
allotted.
- The Company also offered 12,88,000-16% non-convertible
debentures on Rights basis in proportion 7 debs: 50 equity share held.
- Another 64,400 debentures were issued to employees on equitable
basis (only 100 debs. taken up). Each debenture had a warrant attached
entitling the holder to apply for 1 equity share at a premium of Rs 165 per
share.
1994 - During February-March the
Company offered 90,85,000 Rights equity shares of Rs 10 each at a premium of Rs
50 per share in prop. 3:5 (all were taken up) on 19th April.
1995 - The Company embarked upon an
integrated steel making project of 2,90,000 tpa at village Ginegera, dist.
Raichur in Karnataka. The entire project has been divided into two parts and
was being set up in technical arrangement with Tata Korf Engineering Services
Ltd. for usage of korf technology from Brazil.
- The first part of the project for manufacturing of pig iron is
being set up by Kalyani Ferros Industries Ltd. (KFIL) with a capacity 2,40,000
tpa.
- The second part of the project i.e. more cost effective carbon
and alloy steel plant having a capacity of 2,90,000 tpa was being set up for
which the hot metal was to be provided by KFIL, as an input for production of
billets and rounds.
1997 - The Company entered into a
joint venture agreement with Carpenter Technology Corporation, USA for
manufacture and marketing of speciality steels. The joint venture entails
transfer of Mundhwa plant into a separate company viz Kalyani Carpenter Special
Steels Pvt. Ltd. It also envisages promotion of another company viz Kalyani
Carpenter Metal Centres Pvt. Ltd. to look after the marketing and distribution
of the licensed products in India.
1998 - The company has fully
implemented the cost effective Carbon and Alloy Steel project through the Mini
Blast Furnace route at Ginigera. Trial runs of the Hospet Project have shown
good results.
1999 - Crisil today undertook a
four-category downgrade of the BBB+ (moderate safety with relatively higher
standing within the category) rating assigned to two non-convertible debenture
(NCD) issues of Kalyani Steels Ltd. for an aggregate amount of Rs 56.90 crore,
to D (default grade).
- Kalyani Steels, has exported its first consignment of high
value-added special steel to the US.
- The company has been formed to manufacture high value-added
steels like stainless steel, tool steel, and die steel for the world markets.
These products will find high-tech applications in the automotive, electronics
and engineering industries.
2000 - Kalyani Steels Ltd
is setting up a new plant at Ranjangaon to manufacture higher alloy steel
grades.
- Kalyani Carpenter, a joint venture between Kalyani Steels and
Carpenter Technology USA has opened its first steel services centre in Pune
district to provide rapid delivery of stock anywhere throughout India.
- Private sector steel majors Tisco, Kalyani Steel and the public
sector Steel Authority of India are all set to form a three-way joint venture
for undertaking e-commerce activities in the steel sector.
- The Company intend to acquire 18,64,700 No. of equity shares of
Rs 10 each of Hikal Chemical Industries Ltd. together with 18,64,700 No. of
equity shares proposed to be issued by HCIL as bonus shares for a total
consideration of Rs 71,048,690 from the company's wholly-owned subsidiary
Surajmukhi Investments & Finance Ltd.
2001 - Kalyani Steel has sold
43,53,472 No. of equity shares of Bharat Forge Ltd and 22,231,052 No. of equity
shares of Kalyani Carpenter Special Steel for a consideration of Rs 96 crore to
KSL Holdings. - The management of the Pune-based Kalyani Steels has transferred
its entire holding in Bharat Forge and in its joint venture, Kalyani Carpenter
Special Steels, to a newly formed company, KSL Holdings, for a total
consideration of Rs 96 crore.
2003
-Shareholders approve the scheme of arrangement between Kalyani
Ferrous Industries Ltd. with the Company
The
company’s fixed assets of important value include leasehold land, buildings,
plant & machinery, electrical installation, furniture\office equipments,
vehicles and Aircraft’s
Power Project :
The Directors are pleased to inform
commissioning of the Power Plant on 20th April, 2005. The said plant uses the
blast furnace gases generated by mini blast furnaces, which were earlier
unutilised and the entire power generated by the plant is used for captive
consumption. The total capital expenditure incurred for setting up of the plant
amounted to Rs.251 Million, which was financed from internal accruals and term
loans. The plant is currently operating at its full capacity and has generated
9.5 Million units from its commissioning date.
Coke Oven Batteries Project :
Members are aware of an agreement entered into
between tyie Company and Gujarat NRE Coke Limited (GNCL), for setting up
of Coke Oven Batteries Project. The Company has contributed to 40% Equity of
Bharat NRE Coke Limited viz. a company incorporated, in terms of the said
agreement, for setting up one or more coke oven batteries at mutually agreed
location, for conversion of coal into coke, by using the technology of GNCL.
BNCL has proposed to set up eight coke oven batteries at Dharwad, in the State
of Karnataka. The first coke oven battery was commissioned during April, 2005
and has already started conversion of coal into coke. Commissioning of the
second battery is in process and both the batteries taken together are expected
to produce 5,400 tonnes per month of coke. Remaining six batteries are expected
to be commissioned at the rate of two batteries per month commencing from
September, 2005 to November, 2005. As the project is nearby Company's existing
integrated steel plant, coke handling will be for a shorter distance, resulting
in reduction in hanHling losses. Savings is also expected, due to lesser
generation of fines by 5 to 7%. Coke supplies to the Company are being started
and project will facilitate assured supply of coke, at the reduced costs.
New Steel Project :
In pursuance of the Company's philosophy to
focus on its core competency in steel manufacturing, the
Company has embarked upon an integrated steel
manufacturing project of 300,000 TPA at Village Ginigera, Taluka and District
Koppal, in the State of Karnataka. Location of the proposed project is in the vicinity of major
raw material viz. iron ore. Necessary water, electricity and other
infrastructural resources are also available due to its proximity to the
existing plant of the Company. The said New Steel Project is being planned for
execution in two phases : In Phase I, the Company will commission 350m3 capacity Mini Blast Furnace (MBF), Coal based
Sponge Iron Plant of 350 TPD capacity and Power Plant to utilise the
energy" of the flue gases generated in the above Processes Phase II will consist of Steel Melting Shop
(SMS) and Rolling Mills. The total cost of the project is estimated at approx.
Rs.4,450 Million. The Company has already initiated dialogues with various
Technology and Equipment Suppliers for making the necessary tie-ups for the
Project. With this additional capacity, the Company would become one of the
largest alloy steel manufacturers in the country.
New Pig Iron Making Facility :
Pig Iron is a basic ingredient / raw material in
steel making process and required in large quantities by the
Company. At present, part of the pig iron
requirements are met internally by the two Mini Blast Furnaces
(MBFs) of the Company and part is required to be
procured from outside sources. In order to achieve, the cost advantage in pig
iron procurement, the Company has entered into lease agreement with M/s Shree
Ram Electrocast Private Limited and taken on lease for the period of 22 months,
Pig Iron Making Facilities consisting of one mini blast furnace of 175m3 capacity, pig casting machine, raw material
handling system, electrical facilities including
2.5 MW captive power plant etc. The said facility is situated at Village
Honarhalli and Halekote, Taluka Siruguppa, District Bellary, in the State of
Karnataka and expected to produce 108,000 TPA of Pig Iron. The facility is
expected to commence its operations from July, 2005.
Outlook
:
Members will appreciate that with the
initiatives taken in various areas the Company has secured, assured supply of
quality raw materials and energy sources by way of : Long term arrangements for
iron ore mines, to make the Company self sufficient, for its major raw material
requirements in steel making Long term
contracts for procurement of coal and its conversion into coke, an energy
source for hot metal production. Captive Power Plants : Existing and proposed
power plants would make the Company self sufficient as regards to its power
requirements, a short supply commodity. This would ensure a long-term viability
to the operations of the Company to register consistent and sustainable top
line and bottom line growth over years to come, while facing the challenges
thrown up by internationally competitive environment.
Industrial Investment Bank of India Limited -
Term Loan (Repaid during the year). Satisfaction of charge has been filed with
the Registrar of Companies, Pune.
ii) Canara Bank - Term Loan and Corporate Loan
iii) Bank of Baroda - Term Loan
iv) Union Bank of India - Term Loan
v) The Jammu and Kashmir Bank Limited - Term
Loan
Above loans, except Corporate Loan of Canara
Bank, are / were secured by mortgage of Company's immoveable properties
consisting of land together with all buildings and structures thereon and all
plant and machinery, attached to the earth or permanently fastened to anything
attached to the earth, both present and future and hypothecation of whole of
the moveable fixed assets / properties of the Company, including its movable
plant and machinery, machinery spares, tools and accessories and other movable
fixed assets, both present and future, ranking pari passu with charges created
and / or to be created in favour of the Trustees for Debentureholders and Banks
/ Financial Institutions for their term / foreign currency loans. The Corporate
Loan of Canara Bank is secured by a second mortgage of Company's immoveable
properties consisting of land together with all buildings and structures
thereon and all plant and machinery, attached to the earth or permanently
fastened to anything attached to the earth, both present and future and second
charge on all the movable fixed assets and hypothecation of the whole of the
Current Assets including stock of raw materials, stocks in process,
semi-finished and finished goods, consumable stores and spares, bills
receivables and book debts and all other movables, both present and future,
subject to prior charges created and / or to be created in favour of the
Company's bankers on the current assets of the Company for securing the
borrowings for Working Capital
requirement in the ordinary course of business.
c) Foreign Currency Loans
i) Union Bank of India - Foreign Currency Term
Loan, Outstanding balance USD 329,333
ii) State Bank of India - Corporate Term Loan in
the form of FCNR(B) Term Loan, Outstanding balance USD 2,614,000
As per Website Details:
About Us:
Kalyani Steels Ltd.
was established in 1973, to fulfill the in-house requirements of forging
quality steel of the Kalyani Group. It's corporate office is in Pune. Over the
years, Kalyani Steels has been continuously upgrading its technology and
infrastructure. The first such technology update was implemented through a
technology tie-up with AICHI Steels of Japan.
Although the forging industry in India is the primary market for the company's
products, manufacturers of various components for commercial vehicles,
two-wheelers, diesel engines, bearings, tractors, turbines, railways and
seamless tubes (oil sector) also form a substantial part of the company's clientele.
In 1997, the Kalyani Group entered into product sharing with Mukund Ltd. to set
up a new plant in the Hospet-Bellary
region of Karnataka state.
At present the products for the KSL are manufactured at its Hospet plant which
employs a new facility using less power intensive mini-blast furnace route,
provided by Tata Korf-Korf Technology of Brazil. In 1999, the KSL plant in Pune
was hived off to KCSSL (Kalyani Carpenter Special Steels Ltd.).
Vision
The corporate philosophy of the
Chairman of the Kalyani Group, Mr. B.N. Kalyani is,
"To use their specialized skills and innovative technology to contribute
to the welfare of the society. It is their intention to grow with their
employees and to aid and encourage them to participate in their goals in order
that they realize their full potential. Their prosperity is linked to the
prosperity of their customers".
Apart from Kalyani Steels, the 2000 cr. Pune
based Kalyani Group encompasses:
- Bharat
Forge - The flagship company of the group was established
in 1961.
It is the largest forging company in Asia and one of the three largest and most technologically advanced commercial forge shops in the world. Bharat Forge manufactures a wide range of forgings and machined components for automotives, diesel engines, railways, earthmoving, cement, sugar, steel, coal, ship building and oilfield industries.
Address - Kalyani Brakes Ltd. - Established in 1982, when
the automative revolution in India was about to take-off, Kalyani Brakes
Ltd.(KBX) is today, a leading manufacturer of brakes in the country.
Kalyani Brakes is a joint venture between Robert Bosch, Germany- a Fortune
500 company, and world leader in brake systems, Nippon Air Brake Co. Ltd.
of Japan and the Kalyani Group.
Address - Kalyani Lemmerz Ltd. - The Kalyani Group had
promoted Kalyani Wheels as a part of its diversification plan. At that
time they had a collaboration with Lemmerz Werke, Germany. Subsequently,
Lemmerz Werke became a joint venture partner and the new company was
christened as Kalyani Lemmerz Ltd.(KLL). The company manufactures wheel
rims for utility vehicles, light and heavy commercial workers and
tractors.
Address - Kalyani Sharp India Ltd. - Was established in 1986
as a joint venture between Sharp Corporation, Japan and the Kalyani Group.
It is a leading manufacturer and exporter of consumer electronic items
from India.
Address - Kalyani Thermal Systems Ltd. - Established in 1979, this
company specialises in design, construction and installation of custom
engineered Industrial Heat Processing Systems. To stay apace with the
latest technology, the company has a technical tie-up with Flinn &
Dreffein Engineering Co., USA.
Address
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The various products of Kalyani Steels
Ltd. include :
PRODUCTS
GRADES (As per Indian & Various International Standards) :
Carbon Steels Forging Boilers Auto 2 wheeler Cars Tractors Seamless tube Exports Transmission Low Alloys Forging Auto 2 wheeler 4 wheeler Seamless tube High Alloys Forging Auto Heavy engineering SPRING STEELS BALL BEARING STEELS ANY OTHER
SPECIAL GRADES OF STEEL Primary Aluminium smelters
cathode/Anode steel bars.
SIZE RANGE
AS CAST PRODUCTS
AS ROLLED PRODUCTS
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SIZES
:
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The
facilities at Kalyani Steels are on par with any sophisticated steel
manufacturer in the world.
The Mini-Blast technology at Hospet provided by Tata Korf-Korf of Brazil, has
planned to produce 2,40,000 MT of pig iron per annum. The alloy manufacturing
is based on the modern energy and cost-saving technology of 'Energy Optimising
Furnace'(EOF).
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.52 |
|
UK
Pound |
1 |
Rs.85.79 |
|
Euro |
1 |
Rs.58.46 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |