MIRA INFORM REPORT
|
Report
Date : |
25th
May 2006 |
IDENTIFICATION
DETAILS
|
Name : |
MUKAND
LIMITED |
|
|
|
|
Registered
Office : |
Bajaj
Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400 021,
Maharashtra, India. |
|
|
|
|
Date
of Incorporation : |
25.12.1937 |
|
|
|
|
Com.
Reg. No.: |
11-2736 |
|
|
|
|
CIN
No.: [Company Identification No.] |
L99999MH1937PLC002726 |
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|
|
|
TAN
No.: [Tax Deduction & Collection Account No.] |
MUMM19254E |
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|
|
|
PAN
No.: [Permanent Account No.] |
AAACM5008R |
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|
|
|
Legal
Form : |
It is a Public Limited Liability Company. The company's shares are listed on the
Stock Exchanges. |
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|
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|
Line
of Business : |
Manufacturing,
Marketing and Exporting of iron and steel products |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
Maximum
Credit Limit : |
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|
|
|
|
Status
: |
Moderate |
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|
|
|
Payment
Behaviour : |
Slow and
Delayed |
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|
|
Litigation
: |
Unknown |
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|
Comments
: |
Due to improved results, the company is no more a
potentially sick unit. Subject is an old established company having moderate
track records. Trade relations are fair. Payments are reported as slow but
correct. The company is expected to perform better in current year
and further reduce past losses. The company can be considered for normal business dealings
at usual trade terms and conditions with some caution. |
LOCATIONS
|
Registered
Office : |
Bajaj
Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400 021,
Maharashtra, India. |
|
Tel.
No.: |
91-22-22021060
/ 2281 / 6524 / 3327 / 1025 |
|
Fax
No.: |
91-22-22021174 |
|
E-Mail
: |
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|
Website
: |
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|
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|
Corporate
Office : |
Bajaj Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point,
Mumbai -400 021, Maharashtra |
|
Tel.
No.: |
91-22-22021060 / 2281 / 6524 / 3327 / 1025 |
|
Fax
No.: |
91-22-22021174 |
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|
|
|
Factory
1 : |
Ř
Kurla,
Mumbai - 400 070, Maharashtra. Ř
Thane-Belapur
Road, Dighe, P. O. Kalwe, District Thane - 400 605, Maharashtra. Tel. No. 91-22-25347373 / 25348181 Fax No. 91-22-2534 0291 E-Mail mukandop@bom3.vsnl.net.in Ginigera,
Karnataka - 583 228. |
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Branches
: |
Located
At : Kolkata, Delhi, Chennai, Bangalore and Vishakhapatnam. |
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Email
: |
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|
Website: |
DIRECTORS
|
Name : |
Mr. Rahul
Bajaj |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. D. S.
Mulla |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.
Dhirajlal S. Mehta |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. N. P.
Jain |
|
Designation
: |
Director
(IFS - Retd.) |
|
|
|
|
Name : |
Mr. Narendra J. Shah |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. P.
Murari |
|
Designation
: |
Director
- IAS (Retd.) Nominee of ICICI |
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|
|
|
Name : |
Mr. Shishir Bajaj |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. N.C. Sharma |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Niraj
Bajaj |
|
Designation
: |
Managing
Director |
|
Date
of Birth/Age : |
46 years |
|
Qualification
: |
B.Com.,
M.B.A. (Harvard Business School) |
|
Experience
: |
20 years |
|
Date
of Appointment : |
03.12.1990 |
|
Previous
Employment: |
Director
(Com), Steel Authority of India Limited |
|
|
|
|
Name : |
Mr.
Rajesh V. Shah |
|
Designation
: |
Managing
Director |
|
Date
of Birth/Age : |
49 years |
|
Qualification
: |
M.A. (Cambridge),
M.B.A. (California), P. M. D. (Harvard Business School) |
|
Experience
: |
25 years |
|
Date
of Appointment : |
11.06.1977 |
|
Previous
Employment: |
Director
- Virani Fasteners & Bolts Private Limited (1 year) |
|
|
|
|
Name: |
Mr. I. M.
D’Costa |
|
Designation: |
Chief Executive |
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|
|
|
Name: |
Mr.
C.H.Sharma |
|
Designation: |
Chief of
Technical Services |
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|
|
|
Name: |
Mr.
A.M.Kulkarni |
|
Designation: |
Chief of
Maketing, Stainless Steel |
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|
|
|
Name: |
Mr.
Sidharth Shah |
|
Designation: |
Chief of
Materials Management |
|
|
|
|
Name: |
Mr. Amit
Ganguly |
|
Designation: |
Chief of
R&D and TQM |
|
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|
KEY EXECUTIVES
|
Name : |
Mr.
Suketu V. Shah |
|
Designation
: |
President |
|
|
|
|
Name : |
Mr. Vinod
S. Shah |
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Designation
: |
Joint
President |
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|
|
|
Name : |
Mr. P. C.
Chhajlani |
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Designation
: |
Secretary
|
|
|
|
|
Name : |
Mr. S. B.
Jhaveri |
|
Designation
: |
Vice
Presidents – Finance |
|
|
|
|
Name : |
Lt. Gen.
V. M. Patil |
|
Designation
: |
Vice
Presidents (Retd.) - Administration and Services |
|
|
|
|
Name : |
Mr. Rohit
M. Bhatt |
|
Designation
: |
General
Manager - Finance & Taxation |
|
|
|
|
Name : |
Mr. I. M.
D'Costa |
|
Designation
: |
Vice
Presidents - Steel Plant |
|
|
|
|
Name : |
Mr. C. H.
Sharma |
|
Designation
: |
Chief of Technical Services |
|
|
|
|
Name : |
Mr. A. M.
Kulkarni |
|
Designation
: |
Chief of Marketing, Stainless Steel |
|
|
|
|
Name : |
Mr. Sidharth Shah |
|
Designation
: |
Chief of Material Management |
|
|
|
|
Name : |
V. M. Mashruwala |
|
Designation
: |
Chief of Marketing – Special & Alloy Steels |
|
|
|
|
Name : |
Dr. Amit Ganguly |
|
Designation
: |
Chief of R & D TQM |
|
|
|
|
Name : |
Mr. R. Jagannathan |
|
Designation
: |
General Manager |
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|
|
|
Name : |
Mr. S. K, Bansal |
|
Designation
: |
Chief Executive |
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|
|
|
Name : |
Mr. R. Sankaran |
|
Designation
: |
General Manager |
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|
|
|
Name: |
Mr. P.C.Chhajlani |
|
Designation: |
Vice President |
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|
|
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter's Holding |
|
|
|
Indian Promoters |
11610421 |
41.27 |
|
|
|
|
|
Non Promoter's Holding |
|
|
|
Institutional
Investors |
|
|
|
Mutual
Funds and UTI |
1787991 |
6.36 |
|
Banks,
Financial Institution, Insurance companies |
4793298 |
17.04 |
|
|
|
|
|
Others
Investors |
|
|
|
Private
Corporates Bodies |
2455736 |
8.73 |
|
NRIs/OCBs |
53764 |
0.19 |
|
Others |
|
|
|
Sub
Total |
2509500 |
8.92 |
|
General
Public |
7430391 |
26.41 |
|
Grand Total |
28131601 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing, Marketing and Exporting of iron and steel
products |
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Products
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
|
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|
Iron & Steel Products |
|
|
|
|
|
Wire Rods |
Tonnes |
222000 |
|
|
|
Bars,
Rods and Sections |
Tonnes |
42300 |
335628 |
215727 |
|
Bright Bars |
Tonnes |
2400 |
8000 |
|
|
Steel Castings including Alloy
Steel Castings |
Tonnes |
17000 |
17400 |
1231 |
|
Industrial Machinery including
Spares, Assemblies and Component parts |
|
|
|
|
|
E.O.T.
and Other Cranes |
Tonnes |
2000 |
2000 |
2713 |
|
Steel
Structural |
Tonnes |
1800 |
1800 |
16 |
|
Crushers
and Grinders |
Tonnes |
1650 |
1650 |
“1 |
|
Material Handling Equipment |
|
|
|
|
|
- Reclaiming Scrappers |
Tonnes |
750 |
750 |
-- |
|
- Conveyors and elevators |
Tonnes |
50 |
50 |
---- |
|
-
Stackers, Blender Reclaimers, Spreaders, etc. |
Tonnes |
-- |
---- |
14 |
|
Processing Plant and Equipment |
|
|
|
|
|
- Scrap
Processing Plant |
Tonnes |
1410 |
1410 |
75 |
|
- Dryers,
Coolers, Stackers, Kilns, Roasters, etc. |
Tonnes |
350 |
350 |
1 |
|
-
Fertiliser and Chemical Plant and Equipment |
Tonnes |
---- |
---- |
77 |
|
Ferrous and Non -Ferrous Rolling
Mills |
Tonnes |
1400 |
1400 |
1 |
|
|
|
|
|
|
|
Semi
Finished Goods |
|
|
|
|
|
Billets /
Blooms |
Tonnes |
270,000 |
270,000 |
82,756 |
|
Billets /
Booms and Rounds |
Tonnes |
290,000 |
362,500 |
273,899 |
GENERAL INFORMATION
|
Suppliers
: |
Ř
Amit
Refractories Private Limited Ř
A-One
Chemicals Ř
B.D.
K. Engineers & Fabricators Ř
Chandrika
Engineering Works Ř
DB
Power Electronics Private Limited Ř
Excel
Engfab (India) Private Limited Ř
Sansid
Polbro Chemicals (India) Private Limited Ř
Satish
Engineering Company Private Limited Ř
Ferro
Insulation Private Limited Ř
Salzgitter
Hydraulics Private Limited Ř
TIS
Thermo Instruments Ř
Tuff
Tools Ř
JSL
Refractories Limited Ř
Maxworth
Industries Ř
Moulds
& Dies Private Limited Ř
Annapurna
Lime Industries |
||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||
|
No. of
Employees : |
4,500 |
||||||||||||||||||||||||||||||||
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|
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|
Bankers
: |
Ř
Allahabad
Bank Ř
ABN
Amro Bank N.V. Ř
Bank
of Baroda, Khand Bazar Tel. No. 91-22-23422635 Ř
Dena
Bank Ř
HDFC
Bank Limited Ř
Indian
Overseas Bank Ř
ICICI
Bank Limited Ř
Punjab
National Bank Ř
State
Bank of India Ř UTI Bank Limited |
||||||||||||||||||||||||||||||||
|
|
As on 31.03.2005 |
||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Unknown |
|
|
|
|
Auditors
: |
Dalal
&Shah Chartered Accountants |
|
|
|
|
Associates: |
Ř Mukand Engineers Limited, Bajaj Bhawan (Third floor) Ř
Mukand
Vijayanagar Steel Limited Ř
Mukand
Industrial Machinery Limited Ř
Mukand
Soviet Engineering Limited Ř
Bombay
Forgings Limited Ř
Stainless
India Limited Ř
Hospet
Steels Limited Hospet
Road, Ř
Kalyani
Mukand Limited Ř
Lineage
Investments Limited Ř
Catalyst
Finance Limited Ř
Econium
Investments & Finance Limited Ř
Fusion Investments & Financial Services
Limited Ř
Primus
Investments & Finance Limited Ř
Conquest
Investments & Finance Limited Ř
Jeewan
Limited Ř
Wolff
Pipelines Limited Ř
Wye Limited |
|
Subsidiaries: |
Ř
Mukand
Global Finance Limited Ř
Mukand International Limited P.O.
Box.17138 Ř
Vidyavihar Containers Limited (Formerly Known as
Nathani Steel Limited) |
|
|
|
|
Parent
company: |
Mukand Holdings & Finance Limited |
|
|
|
|
Memberships: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
118000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1180.000 millions |
|
7000000 |
Preference
Shares |
Rs. 10/- each |
Rs. 70.000 millions |
|
|
Total |
|
Rs. 1250.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5626320 |
0.01%
Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs.
56.263 millions |
|
73159805 |
Equity
Shares |
Rs. 10/- each |
Rs.
731.599 millions |
|
|
Total |
|
Rs. 787.862 millions |
|
|
|
|
|
|
|
Subscribed
& Paid-up Capital |
|
|
|
5626320 |
0.01%
Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 56.263 millions |
|
73114129 |
Equity
Shares |
Rs. 10/- each |
Rs. 731.141 millions |
|
|
Forfeited
Shares |
Rs. 10/- each |
Rs. 0.116 million |
|
|
|
|
Rs. 787.520 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
787.520 |
787.520 |
281.432 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
5036.063 |
5041.187 |
5069.787 |
|
|
4]
(Accumulated Losses) |
(388.486) |
(2236.305) |
(2254.631) |
|
NETWORTH
|
5435.097 |
3592.405 |
3096.588 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
8784.055 |
12079.636 |
12508.050 |
|
|
2]
Unsecured Loans |
2265.841 |
682.501 |
992.326 |
|
TOTAL
BORROWING
|
11049.896 |
12762.137 |
13500.376 |
|
|
DEFERRED
TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
TOTAL
|
16484.993 |
16354.542 |
16596.964 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
8205.781 |
8692.672 |
9106.368 |
|
Capital work-in-progress
|
31.456 |
21.389 |
50.406 |
|
|
|
|
|
|
|
INVESTMENT
|
1087.875 |
1087.875 |
1078.218 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
3156.384
|
2440.006 |
2623.409 |
|
|
Sundry Debtors
|
4455.430
|
3906.524 |
3249.323 |
|
|
Cash & Bank Balances
|
426.430
|
434.750 |
287.736 |
|
|
Other Current Assets
|
371.060
|
364.516 |
359.225 |
|
|
Loans & Advances
|
2588.447
|
2986.354 |
3204.792 |
Total Current Assets
|
10997.751 |
10132.150 |
9724.485 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4090.805
|
3667.652 |
3433.194 |
|
|
Provisions
|
122.480
|
58.390 |
128.675 |
Total Current Liabilities
|
4213.285 |
3726.042 |
3561.869 |
|
Net
Current Assets
|
6784.466 |
6406.108 |
6162.616 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
375.415 |
146.498 |
199.356 |
|
|
|
|
|
|
|
TOTAL
|
16484.993 |
16354.542 |
16596.964 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
15238.686 |
10706.827 |
9551.412 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1858.871 |
130.762 |
(1571.811) |
Provision for Taxation
|
(1.600) |
1.475 |
(2.300) |
Profit/(Loss) After Tax
|
1857.271 |
129.287 |
(1574.111) |
|
|
|
|
|
Export Value
|
152.964 |
423.631 |
555.976 |
|
|
|
|
|
Import Value
|
2655.540 |
1438.338 |
1343.393 |
|
|
|
|
|
Total Expenditure
|
15118.468 |
11869.359 |
11134.246 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2005 |
30.09.2005 |
31.12.2005 |
31.03.2006 |
|
Sales
Turnover |
3729.80 |
3686.10 |
4102.600 |
4132.900 |
|
Other
Income |
62.90 |
81.50 |
743.200 |
127.600 |
|
Total Income |
3791.80 |
3767.60 |
4845.800 |
4260.500 |
|
Total
Expenditure |
3226.40 |
3180.60 |
3465.400 |
3581.500 |
|
Operating
Profit |
565.40 |
587.00 |
1380.400 |
679.00 |
|
Interest |
273.90 |
275.50 |
234.100 |
256.600 |
|
Gross
Profit |
291.50 |
311.50 |
1146.300 |
422.400 |
|
Depreciation |
140.80 |
139.70 |
145.700 |
153.100 |
|
Tax |
02.00 |
02.00 |
113.000 |
-5.000 |
|
Reported
PAT |
148.70 |
169.80 |
887.600 |
274.300 |
200506 Quarter 1 :
The turnover for the quarter including excise duty increased
by 27% to Rs.4310 millions as against Rs.3400 millions in the first quarter of
the previous year. Improved productivity, higher utilization of capacities,
better product mix, and better realisation from sale of steel products have
been the contributing factors for this improvement. The automotive industry is
on the path of growth and Company plans to stay focussed to meet the growing
requirements of this industry. The revenues from Industrial Machinery Division
also went up on account of improved order position and execution thereof.
Orders on hand at the end of the quarter aggregated Rs.1920 millions
representing over 15 months' volume of business for the Division. Earnings
before Interest, Depreciation and Tax (EBIDTA) for the quarter has increased by
100% to Rs.533.8 millions as compared to Rs.267.2 millions in the first quarter
of the previous year The Profit Before Tax for the quarter is Rs.152.0 millions
as against Loss of Rs.173.9 millions in the first quarter of the previous year.
2. Exceptional items (net) include compensation under VRS, provision for doubtful
debts, and surplus (net) on disposal of assets of the closed unit of Foundry at
Kurla, Mumbai. 3. Management's response to the qualifications of the auditors
on the financial statements for the year ended 31.3.2005
200509 Quarter 2 :
Expenditure includes (Increase)/Decrease in stock in Trade
Rs (166.851) million Consumption of Raw Material Rs 1669.761 million Purchase
of Goods for trade Rs 2.059 million Stores & Spares, components, etc.
consumed Rs 563.328 million Staff Cost Rs 154.502 million Power & Fuel Rs
281.345 million Contract Execution Costs Rs 258.413 million Other expenditure
Rs 416.804 million Tax Indicates Provision for Fringe Benefit Tax Extraordinary
Items includes Exceptional Item (net) Rs 18.700 million Waivers under One Time
Settlement with Lenders Rs 1.154 million EPS is Basic Status of Investor
Complaints for the quarter ended September 30, 2005
200512 Quarter 3 :
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (110.705) million Consumption of Raw Material Rs 1667.667 million Purchase
of Goods for trade Rs 13.805 million Stores & Spares, components, etc.
consumed Rs 577.528 million Staff Cost Rs 161.717 million Power & Fuel Rs
293.680 million Contract Execution Costs Rs 337.091 million Other expenditure
Rs 524.684 million Tax Indicates Provision for Current Tax (including wealth
Tax) Rs 111.000 million Fringe Benefit Tax Rs 2.000 million Extraordinary Items
Includes Exceptional Item (net) Rs 698.505 million Waivers under One Time
Settlement with Lenders Rs 0.428 million EPS is Basic & daluted 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 07
Complaints disposed off during the quarter 07 Complaints unresolved at the end
of the quarter NIL 1. The turnover for the quarter including excise duty
increased to Rs 4710 million as against Rs 4700 million in the third quarter of
the previous year. Concerted efforts were made to maximize the margin by
increasing production of clue added heat treated steels and bright bars. Better
product mix and cost cutting measures helped to improve the bottom line. The
revenues from Industrial Machinery Division went up by 68%to Rs 433.9 million
on accounts of improved order position and execution there of as against Rs
257.7 million reported in the corresponding quarter of the pervious year
Earnings before interest, depreciation and tax (EBIDTA) for the quarter has
increased to Rs 45.31% to Rs 680.8 million as compared to Rs 468.5 million in
the third quarter of the previous year. The profit before exceptional items,
waivers and tax for the quarter is Rs 301.1 million as against amount of Rs
275.9 million reported in the third quarter of the previous year. The profit
after tax of Rs 887 million for the quarter is higher than Rs 618.5 million of
the corresponding quarter of the previous year on account of improved
operational efficiency and surplus on disposal of assets/land of its closed
unit of Foundry at Kurla 2. Exceptional items (net) include net surplus of Rs
1045.9 million on sale of land at Kurla, Mumbai (including sale of land held as
stock in trade) the difference between the original cost of land at kurla and
the book value (revalued has been directly taken credit to general reserve
aggregating Rs 1092.7 million from the revaluation reserve. Thus the net
surplus on sale of land amounts to Rs 2138.6 million. it also includes net
surplus of Rs 90 million for the quarter (908 million for nine months)on
disposal of assets of the closed unit of foundry at Kurla, Mumbai compensation
under VRS, bad debts/advances including Rs 344.9 million for dues recoverable
from Stainless India Ltd, a sick Industrial Company whose reference is pending
disposal with BIFR. 3. Provision for current tax has been made under Section
115JB of the Income Tax Act, 1961. Deferred tax, if nay shall be provided for
at the end of the year. 4. Management's response to the qualifications of the
auditors on the financial statements for the year ended March 31, 2005: a) The
Company continues to rely upon the market value of assets and the earnings from
ongoing business of Stainless India Ltd and Bombay Forgings Ltd and also upon
the market value of assets of Vidyavihar Containers Ltd (a wholly owned
subsidiary), for recovery of the value of investments and other dues from these
Companies. (net of amounts provided as doubtful of recovery for dues from SIL).
b) Regarding recoverability of loans from Companies whose net-worth's have
eroded, the Company continues to rely upon the ultimate reliability from the
financial assets of these Companies. c) Regarding Debts under litigation, the
Company has made the necessary provision against the same. 5. Figures in
respect of previous quarter / nine months / year have been recomputed /
regrouped / recast wherever necessary. 6. The above results have been taken on
record in the meeting of the Board of Directors held on January 20, 2006. 7.
Statutory Auditors have carried-out Limited Review of the financial results
shown above.
200603 Quarter 4 :
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (175.608) million Consumption of Raw Material Rs 1664.484 million Purchase
of Goods for trade Rs 1.256 million Stores & Spares, components, etc.
consumed Rs 614.205 million Staff Cost Rs 186.959 million Power & Fuel Rs
313.491 million Contract Execution Costs Rs 398.581 million Other expenditure
Rs 582.713 million Expenditure on Capital accounts/ capital work in progress Rs
(4.817) million Tax Indicates Provision for Current Tax Rs (9.000) million
Fringe Benefit Tax Rs 4.000 million Wealth Tax Rs 0.275 million EPS is Basic
& Diluted Status of Investor Complaints for the quarter ended March 31,
2006 Complaints Pending at the beginning of the quarter NIL Complaints Received
during the quarter 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter NIL 1. The turnover for the year increased
by 7.70% to 18020 million including excise duty as compared to Rs l6730 million
in the previous year. However, EBIDTA improved by 58% to Rs 2490 million as
compared to Rs 1570 million in the previous year. This was on account of
concerted efforts to maximize the margins by higher production of value added
heat treated steels and bright bars, as also improved performance by Industrial
Machinery Division. The turnover of steel division Increased by 7% to Rs 15240
million from Rs 14240 million in the previous year on account of higher sales
of alloy steels to automotive sector. The revenues from Industrial Machinery Division
also went up by 58% to Rs 1460 million as an outcome of rapid expansion and
investments for additional capacities in the engineering and steel sectors of
the economy as against Rs 920 million reported in the previous year. Orders on
hand as at the end of the year aggregated to Rs 2020 million.The Company's
profit before exceptional items, waivers and tax Increased to Rs 860.30 million
from Rs 134.80 million in the previous year. 2. Exceptional Items (net)
Includes net surplus on sale of land at Kurla, Mumbai, net surplus on disposal
of assets of the closed unit of Foundry at Kurla Mumbai compensation under VRS,
bad debts / advances written off / recovered, provision for doubtful debts /
advances, provision for diminution of value of investments, expected loss on
assets retired from active use, loss on termination of lease agreements and
damages awarded under an arbitration in respect of erstwhile engineering
construction division, etc. 3. The Board of Directors recommend payment of
dividend (including arrears) @ 0.01% on the Preference capital of the Company
with effect from January 12, 2004. 4. Management's response to the
qualifications of the auditors on the financial statements for the year ended
March 31, 2006: a) The Company continues to rely upon the market value of
assets and the earnings from ongoing business of Stainless India Ltd (SIL) and
Bombay Forgings Ltd and also upon the market value of assets of Vidyavihar
Containers Ltd (a wholly owned subsidiary), for recovery of the value of Investments
and other dues from these Companies (net of amounts provided as doubtful of
recovery for dues from SIL and for diminution in value of Investments In VCL).
b) Regarding recoverability of loans from Companies whose net-worths have
eroded, the Company continues to rely upon the time bound schedule given by
these companies for re-payment of loans and the fact that part of the loans
have been repaid by these companies during the year under review 5. Figures In
respect of previous quarter / nine months / year have been recomputed /
regrouped / recast wherever necessary 6. The consolidated accounts as shown
above Include the audited results of three wholly owned subsidiaries, Mukand
Global Finance Ltd, Vidyavihar Containers Ltd, Mukand International Ltd and the
pro-rata share in the audited results of associate Company Mukand Engineers Ltd
and the pro rata share in un-audited results of associate Companies Bombay
Forgings Ltd and Stainless India Ltd. 7. The above results have been taken on
record in the meeting of the Board of Directors held on May 20, 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
5.51 |
13.48 |
8.51 |
|
Long Term Debt Equity Ratio |
4.54 |
9.18 |
5.09 |
|
Current Ratio |
1.73 |
1.26 |
1.12 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.70 |
1.16 |
0.92 |
|
Inventory |
6.04 |
4.57 |
3.67 |
|
Debtors |
4.04 |
3.24 |
2.82 |
|
Interest Cover Ratio |
2.84 |
1.28 |
0.15 |
|
Operating Profit Margin (%) |
22.50 |
22.95 |
8.72 |
|
Profit Before Interest and Tax Margin (%) |
19.19 |
18.42 |
2.98 |
|
Cash Profit Margin (%) |
15.75 |
8.55 |
(11.73) |
|
Adjusted Net Profit Margin (%) |
12.44 |
4.01 |
(17.47) |
|
Return on Capital Employed (%) |
21.53 |
14.17 |
0.00 |
|
Return on Net Worth(%) |
61.64 |
22.50 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
Earlier known as Mukand Iron & Steel Works, Mukand was
incorporated in Nov.'37. Founded by Lala Mukand Lal, it was later taken over by
Jamanlal Bajaj and Jeewanlal Motichand Shah. It is a multi-product,
multi-division company. The main divisions are the steel plant, steel foundry
and real estate. The steel foundry and the stainless steel coils finishing
division received certificates of approval under ISO 9002 from the Bureau
Veritas Quality Internationale.
A leading producer of stainless steel, Mukand manufactures cold-headed
quality steel, ball-bearing steel, carbon and alloy steel bars and wire rods,
and, leaded steel bars. Its foundry produces a wide range of components from
intricate tiny pieces weighing a few kilograms to large castings weighing over
80 tonnes.
As a leading special and alloy steel producer, Mukand has been a pace
setter for technological development in Electric Arc Furnace Steelmaking. In
1965, Mukand became India's first steelmaker to install a continuous casting
machine. Today, its entire steel production is through the continuous casting
route.
In 1989, it set up a new company for engineering and project management
services in collaboration with Dravo Wellman Company, US. The Company also
issued Bonus shares in the ratio of 1:2. Beco Engineering Company was
amalgamated with the Company in Oct.'92 in terms of the AAIFR order with effect
from Apr.'91.
In 2001, the company like other industries in manufacturing segment
experienced liquidity crunch throughout the year resulting from excess
production capacities and longer credits granted by competitors. The company
has entered into co-operation agreements with JSC Centrodorstroy(CDS) a Russian
based company to whom the Road construction contracts were awarded on early
2001. The total project value being Rs.5610 million and it involves four-laning
and strengthening of the existing two-lane sections on the NH-2 in UP.
The Road Construction division has commenced execution of the four laning
project in Uttar Pradesh during the year 2002-03.The net worth of the company
has eroded in excess of 50% of its peak net worth during the immediately
preceding four financial years and the company has thus become Potentially
Sick. On restructuring of company's debts,the revised proposal for
restructuring has been finalised by ICICI Bank Ltd and the same has been approved
by Corporate Debt Restructuring Cell(CDR) set up RBI
POTENTIAL
SICKNESS:
As at
31.03.2003, the Company became a 'Potentially Sick Industrial Company' under
The Sick Industrial Companies (Special Provisions) Act, 1985, (SICA). With the
reduction in unadjusted accumulated losses as at 31.03.2005, the Company now
ceases to be a 'Potentially Sick Industrial Company' under SICA.
FIXED ASSETS:
Freehold
Land, Leasehold Land, Buildings and Roads, Plant and Machinery, Furniture,
Fixtures, etc, Vehicles, Plant and Machinery, Vehicles
The company
is in trade terms with :-
Ř
A. N.
Instruments Private Limited
Ř
A. S.
Industries
Ř
Aeroflex
Industries Private Limited
Ř
Aero-Tech
Ducon Systems Private Limited
Ř
Alliance
Engineering Company
Ř
Allied
Instruments and Thermocouples,
Ř
Hindustan
Technocraft Industries
Ř
National
Engineering Corporation
Ř
Navjeevan
Engineering Works
Ř
Pallave
Chemical Industries
Ř
Kumar
Industries
Ř
S. N.
Engineering Works
Ř
Pipe
Supports India Private Limited
Ř
Universal
Oil Seals Manufacturers Company Private Limited
Ř
Vimtex
Machinery
Ř
Vinil
Process Controls Private Limited
Ř
Windston
Springs Private Limited
The company
has Joint Venture with Mukand International Limited, UK.
OPERATIONS:
3.01 The
sales and income from other operations increased by 44% to Rs.16.73 billion as
against Rs.113^ billion in the previous year. 3.02 Profit before Interest,
Depredation, Exceptional items, Waivers and Taxes increased-fey 117%to Rs.1.49
billion as compared to
Rs.0.69
billion in the previokls year. Improved performance of steel and industrial
machineiy & Businesses has resulted in better results. The profit after tax
for the year under review increased to Rs. 1.85 billion as against .8^6,13
billion in the previous year.
STEEL
PLANT:
(a) To
reduce electrical energy consumption :
• Time-zone
wise optimum utilisation of captive power plant to reduce cost of power.
•
Re-distribution of the load on the main transformer to operate on optimum
efficiency.
• Use of
flue gases, which were blown-off earlier to generate power.
• Auto operation
of compressors.
•
Installation of economical drives in Fume Exhaust System of Ladle Refining
Furnace.
• Use of
energy saver for street lighting.
• Catena of
steps taken to improve productivity led to reduction in consumption of power.
(b) To reduce Fuel Oil consumption :
•
Installation of Recuperator in Blooming Mill at Dighe, Thane.
• During
the year all the sludge generated in the Captive Power Plant was treated inside
the Plant and re-used in Billet re-heating furnaces of Bar Mill and Blooming
Mill.
• By-pass
line damper modified for proper control of furnace pressure in Wire Rod Mill.
• Duplex
oil filter installed near the Burners for cleaner oil facilitating better
automization.
•
Replacement of hearth and burner blocks in Blooming Mill.
• Catena of
steps taken to improve productivity led to reduction in consumption of fuel.
OUTLOOK:
• The
outlook is positive especially with an estimated five fold growth rate expected
in the coming decade from the auto component industry and with prospects of
exports by the said industry being higher.
• The
development of import substitution steel grades for the domestic auto ancillary
units and the supply to overseas automotive giants is expected to provide
sustained growth to the steel industry.
• With the
increase in demand, initiatives in reducing costs, improvement in productivity
and yield, development of new products and addition of down-stream facilities
for manufacture of higher quantum of cold heading quality steel, heat treated
steel and bright bars, the Company expects to increase its market share and
improve margins in the coming years.
AS PER
WEBSITE
PRODUCTS,
PROJECTS AND SERVICES
Products
Alloy, special and stainless steel long products in a
variety of grades and sections, to international specifications like Japanese (JIS), German (DIN) American
(AISI/SAE) and Indian standards (BIS).
Range
Carbon and alloy steel, free-cutting
steel, semi free-cutting steel, leaded free-cutting steel, cold heading quality
steel including boron steel, austenitic, ferritic and martensitic stainless
steel, spring steel including chrome vanadium steel, high carbon steel,
electrode quality steel, boiler quality steel
Condition of supply
As rolled, normalized/soft-annealed,
spheroidised-annealed, machine-straightened, peeled/smooth turned/and
centreless ground, cold drawn/and centreless ground or in any combination
thereof
Size range
|
Products
|
Dimensions in mm |
|
|
|
|
Blooms as cast |
160 / 200 / 250 mm sq. |
|
Billets as cast |
125 square |
|
Rolled products |
|
|
Wire rods |
5.5, 6, 6.5,
7, 7.5, 8, 8.5,
9, 10, |
|
Round bars |
24, 25, 26, 27.5, 28.5, 30.5, 32, 34, 36,
|
|
Hexagons (mm A/F) |
22.5, 23.5, 25.5, 27.5, 28.5, 30.5, |
|
Round corner squares |
63, 75, 80, 90, 95, 100, 110, 120, 125, |
|
Bright bars |
3mm to 137mm |
|
Cold finished
wires |
3.4 to 22mm |
|
|
|
|
*Sizes between 10 and 23 mm dia. rolled
in wire rods can be supplied in straightened condition. |
|
End Uses
Mukand's steel is not
just another product. It is a product that thousands of other products are made
of. A random, incomplete listing of end uses :
Kitchen-ware, umbrella ribs, spectacle frames and hairpins,
surgical instruments, stainless steel for industrial applications, axle shafts
for passenger cars, rear axles in commercial vehicles, coiled springs for
passenger cars, hi-tensile fasteners for critical applications in automotive and
engineering industry, gears, pinions and forgings for automobile applications,
high precision cold forged components for automobile/engineering industry,
seamless tubes, races and rings for bearings, springs for railway freight cars,
components for textile machinery, components for military hardware.
Machine Building
Products
Electric Overhead Travelling (EOT) cranes,
Electrical Level Luffing crane, Gantry crane, container handling crane. Bulk
Material Handling
Equipment,
Process Plant equipment.
Steel Plant equipment.
Equipment for mining, space exploration and research, defence
applications.
Product Profile
Work shop
crane
Crane
Bulk Material Handling Systems
Specialised Equipment for
·
Steel Plant
• Cement
Plant
• Aluminum
Plant
• Copper
Plant
• Power Plant
Mill body
Large Fabrication, Machining and
Assembly Jobs
Heavy Steel Casting
Revamping of Equipment
STEEL PLANT CRANES
Slag
Piercing Crane
Two/Four Girder Ladle Cranes upto
250 TCapacity
Rotating Trolley Cranes
Charging Cranes
Rotating Trolley Crane
Scrap Handling Cranes with Magnets
/ Grab
Billet Handling Cranes
Special Purpose Cranes
EQUIPMENT FOR
STEEL INDUSTRY
Ultra High
Power Furnace
Converter
Converter relining machine
Hot Metal Mixers
Electric Arc Furnaces
1300 T Mixer
Ladle Furnaces
Ultra High Power Furnace
Equipment for Vacuum degassing,
vacuum, oxygen Decarburisation
Rotary Kiln
Ladle
Cooler for Sponge Iron Plant
Blast Furnace Shell
Bell & Hopper
Pig Casting Machine
Sintering Machine
Ladles, Slag Pots, Scrap Boxes
Bloom & Billet Casters
Sintering Machine
Door Extractor
Transfer
Cars
Pay off reel
Moving & Hot Saw
Transfer Cars
Hydraulic Scale Breaker for IHI Japan
Rolling mill
equipment
Mill Stand
Assembly
Mill Stand
Roller Table
Cooling Bed
Chain Transfer
Charging & Discharging
Equipment
Cooling Bed
Jaw & Shear
Pinch Roll Assembly
Hydraulic Scale Breakers
Entry/Del. Side Guides
Steel Plant
Casting
Slag Pots
Ladles
Side Guards
Big Bell / Hopper
Mill Housings
Chocks
Cluster Rolls
Rolling Mill Housings
EQUIPMENT FOR NON-FERROUS INDUSTRY
Anode
Refining Furnace
Supplied to Birla Copper
Ladle Handling Cranes
Rotary Holding Furnace
Slag Granulation Plant
Ladles and Bail Assemblies
Anode Mould Boxes
Copper Converter
Ball Mills
Rotary Kilns/ Dryers
Copper Converters
Anode Refining Furnaces
Lance / Lance handling Systems
EQUIPMENT FOR
POWER PLANT
250 T Power House Crane at Koyna
High Capacity Power House Cranes
E- Mills
Various critical machined
fabricated components/assemblies
E - Mills
Mitsui Babcock
Turbine Equipment
7FA Turbine base for gas turnine
geps USA
Front standard for steam turbine
geps, USA
Power Plant
Casting:
Anode
Refining Furnace Supplied to Birla Copper
Grinding Ring & Ball - Mitsui
Babcock Technology
Stay Ring
Runner Body
Butterfly Valve Door
Spherical Valve Door
Upstream/Downstream Body
Cheek / Trunnion
EQUIPMENT FOR
CEMENT INDUSTRY
Cement Plant
Equipment:
Grinding Table
Mill Body
Pre-heaters
Pre-Calcinators
Rotary Kilns
Grate Coolers
Cyclones
1300 T
Mixer
Planetary Coolers
Dryers
Ball Mills
Vertical Roller Mills
Dynamic Air Separators
Grit - Separators
Handling Equipment:
Mill Head
Kiln Tyres
Support Rollers
Mill Heads
Girth Gears
Grinding
Table
Slide Rings
Grinding Tables
Bearing Blocks
EQUIPMENT FOR PORTS
Port
Cranes
6T x 23 M. DLL Crane for Andaman
Electrically Operated Level Luffing
Cranes
Diesel Operated Level Luffing
Cranes
12T &
16T ELL Cranes at Kandla Port
Structures for Container Handling
Cranes (RMG/RTG)
Bulk Material Handling Equipments
Grab Type Barge Unloader For Essar
Ship/Barge Unloaders
Ship Loaders
Continuous Barge Unloaders
Coal Handling Stackers
Bucket Wheel Reclaimers
2,200 MT/Hr. Ship Loader for NALCO
DEFENCE
Specialized EOT Cranes for DRDO
Transport Equipments for SBC
Mechanical Parts for warships for
MDL
SPACE RESEARCH
40 - metre high mobile service structure
for assembly of augmented satellite launching vehicle (ASLV)
Major clients in India
Government / Public Sector:
Steel Authority of India Ltd
Bharat Heavy Electricals Ltd
Major Electricity Boards
Nuclear Ppwer Corporation
National Thermal Power Corporation
Ltd
National Hydro Power Corporation
Ltd
Indian Space Research Organisation
Defence Research and Dvelopment
Organisation
Directorate General of Naval
Projects
Major Ports - KPT, BPT, VPT, MPT
Ship Building Center
Indian Navy
Mazgaon Docks Ltd
Private Sector:
TATA Group Companies
Larson & Toubro Ltd
Hindustan Aluminum
National Aluminium Company Ltd
Sterlite/Balco
Loesche India
Ispat Industries
Essar Group
Birla Copper
Major clients abroad
General Electric, USA
Alstom
Hyundai
Mitsui
P.T. Ispat
Turnkey Projects
150 T
Converters
250 T Ladle
crane
A 40 –
metre high mobile service structure for assembly of augmented satellite
launching vehicle (ASLV) for Indian Space Research Organization (ISRO). This is
essentially a facility to assemble rockets in an enclosed, controlled
environment : virtually, a workshop that moves on wheels.
An anode
handling and rodding plant, jointly with Syprim SA (France) for National
Aluminium Company Ltd., where over 70 material handling and processing stations
were integrated into a single automatic system through programmable logic
controls.
A medium
merchant structural mill with an annual capacity of 850,000 tonnes for
Visakhapatanam Steel Plant – a Government of India enterprise – jointly with
Skodaexport (Czech Republic). The total configuration, including 11,000 tonnes
of mechanical equipment manufactured by Mukand Ltd., weighing over 17,500
tonnes was erected by Mukand Ltd.
A basic
oxygen furnace shop for the Rourkela Steel Plant of the Steel Authority of
India Ltd., with a capacity of 1.5 million tonnes per annum, in a consortium
lead by, and jointly with, Tyazhpromexport (Russia). The scope of the work
covered design, manufacture, supply, execution of related civil and structural
work, erection and commissioning of facilities including : two 150 - tonne LD
converters, two 1300 - tonne mixers, thirteen EOT cranes including four 250 –
tonne ladle handling cranes, gas cleaning plant, gas recovery equipment,
desulphurisation plant, electricals, instrumentation, process computerization
and utilities.
Civil,
structural and mechanical work for steel plant at Hospet, with a capacity of
0.3 million tonnes per annum. The scope of the work covered : civil and
structural work, mechanical equipment such as converters, energy optimizing
furnace, mixer, vacuum degassing units, bloom casters, material handling
equipment such as EOT cranes, electricals, instrumentation and utilities.
Infrastructure
: Highway Construction
Projects
Two highway
construction projects funded by by the World Bank, for which the contaracts
were won through international competitive bidding by Centrodorstoy, a leading
Russian company with proven expertise in the field in associatin with Mukand
Ltd., are under execution. The projects are part of the ' Golden Quadrilateral
' announced by the Prime Minister of India. Mukand Ltd responsibility covers
supply of material, machinery and manpower as well as other services incidental
to the execution of the projects.
Salient
Features
Two
packages –
Construction of 77 KM four-lane
highway consisting of 94 KM of two-lane concrete pavement and 60 KM of two-lane
asphalt pavement for the Ashapur-Khaga stretch of NH-2.
Construction of 72 KM four-lane
highway consisting of 56 KMs of two-lane concrete pavement and 88 KM of
two-lane asphalt pavement in Handia-Rajatalao stretch of NH-2.
The work includes the following –
Ashapur-Khaga
Handia-Rajatalao
Minor
bridges 6 8
Culverts 116 35
Under
Passes/Subways 3 4
Concrete
pavement 273,000 cu.m 156,000 cu.m
Asphalt
pavement 120,000 cu.m 160,000 cu.m
Earthwork 1,760,000 cu.m 2,500,000 cu.m
FACILITIES AND PROCESSESS
Steel
Ultra High Power Electric Arc Furnace at Kalwe
Ladle Refining
Furnace at Kalwe
Vacuum Degassing
at Kalwe
Fully Automatic
Wire Rod Mill at Kalwe
Mini Blast Furnace
at Hospet
Energy Optimizing
Furnace at Hospet
Continuous Casting
at Kalwe
Easy Draw Continous
Cooling System for wire rods at Kalwe
Steel Plant of Mukand Ltd at Kalwe near
Mumbai, Maharashtra is India's most modern electric arc furnace complex. It is
equipped with a state-of-the-art ultra high power furnace, with computerized
process controls, scrap pre-heating arrangements operating on a heat recovery
system with facilities for eccentric bottom tapping, oxy-fuel burners and ladle
refining furnace.
The bar mill, with its walking beam type cooling bed is the state-of-the-art
type and so is the fully automatic wire rod mill and so is the eight-strand,
no-twist block mill.
Mukand Ltd.'s steel plant uses ‘easy draw continuous cooling'
system for wire rods. Blooming mill facilities include a walking beam furnace,
automatic screw down system and computerised process controls. The bright bar
unit is equipped with modern facilities including heat treatment furnaces for
bars and coils and facilities for spheroidised annealing for coils.
Steel Plant at Hospet, Karnataka makes steel
using mini blast furnace technology, with iron ore and metallurgical coke as
major inputs. Hot metal from mini blast furnace is converted into steel using
energy optimizing furnace technology. The plant is equipped with bloom and
billet caster (10/18 and 9/16 m radius respectively), with modern process
controls including auto mould level control and electro magnetic stirrer.
Machine Building
Major Shop
Facilities
Structural
Fabrication
CNC
profile cutting machine
Plate bending machine
CNC Optical Profile Cutting
Machines
Air Plasma Cutting Machines
Plate Shearing Bending Machines
Plate Section Straightening
Machines
CO2, MIG, MMAW,SAW,FCAW, TIG
Welding Machines
Shot Blasting Machine
Machine Shop
Horizontal
Boring Machine Light
Machine Shop
Horizontal Boring Machine upto 205mm spindle
dia
Vertical Boring Machine upto 8.5 M
Table dia
Plano Milling Machine upto 8 M x
2.5 M x 1.8 M job size
Gear Hobbing Machine upto 16 module
1.6 M job dia
Lathes ( Jobs upto 6 mtr length)
Heavy Castings Dept.
Melting and
Refining Facilities
Casing
40T Capacity Ultra High Power
Furnace, Ladle Refining, V D/ V O D
Pouring and
Teeming Facilities
Valve body
Slide Gate Ladle operated by
Hydraulic Power Pack
Purging of Liquid Metal by Argon
gas
Core Shop Facilities
Grinding rings
Continuous Sand Mixer
Sand Reclamation System
Pouring and Teeming Facilities
Six moulding pits
Box Moulding facility for smaller
castings
Fettling Shop Facilities Heat
Treatment Facilities
Pneumatic Chipping Machines
Grinding & Welding Machines
Cutters
Gouging Facilities
Shot Blasting Facilities
Grinding balls
100T Capacity oil fired Furnace of
Size 10M x 7M x 3.6M ht
Box Moulding facility for smaller
castings
Handling Facilities
, Heat Treatment Facilities
17 EOT Cranes upto 75T capacity
Single piece handling upto 125 T
Cutters
Gouging Facilities
Shot Blasting Facilities
Bogie Hearth Furnaces
Stress Relieving Furnaces
Sorbitising facilities
Miscellaneous Facilities
Shot blasting facility
Hydraulic Presses
Testing Facilities
Infrastructure : Highway
construction
Equipments
used include crushing plants, concrete batching plants, asphalt mix plants,
concrete pavers, complete range of earthmoving equipment and tippers etc
CUSTOMER
Mukand Ltd manufactures and supplies alloy and special
steel long products to customers including original equipment manufacturers
(OEM's) in vital segments of Indian economy including, among others,
automotive, engineering, defence and railways. The Company also manufactures
and supplies stainless steel long products to customers in India and exports
these products to developed and developing countries such as : the United
States of America, Germany, Italy, the Netherlands, Switzerland, United Arab
Emirates, Japan, Korea, Hong Kong, Taiwan, Vietnam, to mention a few.
SOME OF THE MAJOR CUSTOMERS SERVED
Original equipment manufacturers
(OEMs) like -
Motor Industries Co. Ltd Hi-Tech Gears Ltd
SKF India Ltd Sundram Fasteners Ltd
Maruti Udyog Ltd Hero Honda Motors Ltd
Dephi Automotive Systems Ltd
Bajaj Auto Ltd
Sona Koyo Stearing Systems Ltd
Honda Motor Cycle & Scooter
India Pvt Ltd
Machine
Building & Turnkey Projects
Government
sector in India Non - government sector in India
Steel Authority of India Ltd Tata Group of companies
National Aluminium Company Ltd Larsen & Toubro Ltd
Bharat Heavy Electricals Ltd Hindustan Aluminium Ltd
State Electricity Boards Sterlite/Bharat Aluminium Company
Ltd
Nuclear Power Corporation Ltd Loesche India
National Thermal Power Corporation
Ltd Ispat Industries
National Hydro Power Corporation
Ltd Essar Group
Indian Space Research Organisation Birla Copper
Defence Research and Development
Organisation
Directorate General of Naval
Projects
Port Trusts
Indian Navy
Ship Building Centre
Mazgaon Docks Ltd
General Electric
Alstom
Hyundai
Mitsui
P.T. Ispat
Infrastructure : Highway
construction
Customers
in India
National Highways Authority of
India
FINANCIALS
Investors
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10 lakhs = 1 million |
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AUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2006 |
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QUALITY
Total
Quality Management
ISO 9000 Quality Systems
First company in India to have this
accreditation for the entire Steel Plant.
All Divisions of the Company certified under ISO 9000 : 2000
standards.
Quality improvement projects based
on JURAN on Quality Improvement (JQI)
Quality Control Circles
Continuing Education and Training
Total Productive Maintenance under
guidance of Japanese Institute of Productive Maintenance
( JIPM )
Quality Awards Won: a
random listing
Indian Institute of Metals National
Quality Awards - 1991, 1992, 1993, 1994 & 1998
"Outstanding in house R&D" Award from
Department of Scientific and Industrial Research, Government of India - 1993.
National Award for R & D
efforts - 1993.
“Best of the Best” QC Circle in
India at the National Convention for Quality Circle-1995.
Presented case study in International Convention in Kuala Lumpur, Malaysia
QC Circles won prizes/awards every
year from 1992 to 1997. Nine completed projects won awards at National level in
the last ten years.
“Award for Excellence” from
Mico-Bosch for the year 2001-2002
Confederation of Engineering
Industry's (now Confederation of Indian Industry)
Award of excellence in the area of technology and innovation given to Mukand
Ltd. for Machine building
TPM Excellence award given by JIPM
to Mukand Ltd. for Machine building - 2003.
Golden Peacock National Quality Award from Institute of
Directors - 1995.
Awards from Indian National Suggestion Schemes Association for Mukand Ltd.'s
Master Mind Suggestion Scheme - 1993, 1997, 1998, 2001 & 2002.
Qimpro Gold Standard in 1990 and Platinum Standard in 1993.
Best Paper Awards at National Conventions for five technical projects under
Juran Quality Improvement System - 1985 - 1995.
ESSAR Gold Medal from Indian Institution of Metals - 1997.
Distinguished Metallurgist 'Award from Institution of Engineers - 1994.
All India Certificate of Export Excellence - 1989, 1990, 1997, 1998, 1999 &
2000.
All India Special Shield for Exports - 1992 & 1997.
Regional Top Exporters Shield - 1993, 1995, 1996 & 1997.
Regional Special Shield for Exports - 1989, 19900 & 1994.
RESEARCH AND DEVELOPMENT
·
Accredited by National Accreditation Board, Department of
Science & Technology, Government of India to EN 45000 Series of Standards
·
National award from Council of Scientific & Industrial
Research Plant
·
Laboratory with modern facilities including Hitachi model of
Scanning Electron Microscope.
·
Radiography laboratory approved by the Bhabha Atomic
Research Centre, Mumbai.
·
Collaboration with National Laboratories and similar
institutions in India and abroad.
EMPLOYEES
Mukand Ltd. has a highly trained and multi-skilled workforce
and a large team of engineers, technologists, scientists and managers with
specialized as well as broad professional capabilities. The Company has enjoyed
uninterrupted industrial peace in its factories and offices for two decades.
The skills of employees at all levels are renewed and
augmented through programmes of need-based education and training based on
‘training calendar' formulated in the light of the training needs of individual
employees as identified annually as a part of Company-wide performance
appraisal system. Specialised on-the-job training programmes are an integral
part of the process of education and training. The Company has substantial
in-house training facilities which are supplemented by participation by
employees individually or in groups in external training programmes.
Mukand Ltd. and its associate companies are on the look out,
as their businesses grow, for opportunities to augment their human resources by
inducting fresh talent from outside. You may well be the one we are looking for
- at Mukand, you choose not a job but a career.
The Mukand
Way
At Mukand, we have a philosophy, a set of values, a way of looking
at life which is truly our own. We, each one of us, elieve in this and our
every action reflects it. This is the way we do business; this is why we do
business. We believe our prime responsibility is to make the best product
possible. To ensure that our customers get the best value for their money.
Towards this one aim, we will constantly innovate and develop new technologies
to produce products which are demonstrably superior.
It is our business to provide the best service to our
customers, suppliers and everyone we deal with. To do so actively and with a
genuine desire to contribute to their business. We shall make commitments and
we shall keep them. We shall create satisfied customers and grow with them.
As individuals, we shall behave with great responsibility. Be
particular about our work and our environment. We shall seek and find, in our
every action, a way to do things better. Always better. And we shall be deeply
proud of our achievements.
We value people. We trust and respect the individuality of
the men and women who work by our side. It is our responsibility to actively,
and constantly, create an environment that supports them and causes them to
grow and flourish. Our people are our pride and we shall reach out and touch
their lives.
We shall do all of this with great seriousness and integrity.
With fairness and justice. We respect the law and perform our every duty
diligently.
Finally, our commitment is to our shareholders on whose
behalf we act. It is our responsibility to generate a sound profit and we must
constantly strive towards this end.
We are a team and shall always work as one. As a business, we
shall be alert and alive to opportunities. It is not our way to be content with
our achievements. Growth is vital to us and we shall unceasingly seek out ways
and means to constantly move forward.
We respect our environment and the society to which we
belong. We have been given the privilege to use these resources and we shall
not waste them. We will care for and contribute to our country. Above all, we
shall be consciously responsible
citizens.
HISTORY
Mukand Iron
& Steel Works Limited, re-christened ‘Mukand Ltd.' on and from March 23,
1989, was registered on November 29, 1937. The Company then operated re-rolling
mills and foundry in Lahore and at Reay Road, Bombay. Two years later, Lala
Mukand Lal who had the controlling interest in the Company and had been doing
constructive social work under the guidance of Mahatma Gandhi, expressed his
desire to leave the Company. The Mahatma asked Jamnalal Bajaj and Jeevanlal
Motichand to take over the Company which was then under serious financial
strain. They did so after some persuasion, in 1939.
The Steel Plant at Kalwe commenced operations in 1965.
A structural shop, later re-christened ‘Machine Building Division' was also set
up at Kalwe by the same year. The Company established its leadership in the two
businesses, steel and machine building, fairly quickly.
The
history of Mukand Ltd is the history of its resilience, continual renewal and
resurgence.
ASSOCIATES COMPANY
Mukand
Ltd.'s leadership in steel technology is built on a long history of pioneering,
kept alive by adaptive absorption of advanced technology's sustained in-house
research and development.
Mukand
Ltd. was India's first steelmaker to successfully adopt the ‘continuous billet
casting' technology using ‘F' type continuous casting machine, when this
technology was in its infancy in the West.
Mukand
Ltd. was the first in India to successfully adopt the vacuum oxygen decarburisation
technology for the manufacture of stainless steel. It was also the first in the
country to install an oxygen top and bottom blown converter for the manufacture
of stainless steel, there being only three other plants in the world that used
this technology.
Mukand's
steel plant is the fourth in the world to introduce the ‘easy draw continuous
cooling' system for wire rods.
Leadership in machine building
Mukand Ltd. has a record of proven leadership in building the
machines that build the sinews of economic power.
As machine builders, Mukand Ltd. has worked with the best and
the biggest companies in their fields in the world : Dravo Wellman Company
(United States of America), Fives-Cail Babacock (France), Hitachi Ltd. (Japan),
Lurgi Chemie (Germany), Peiner (Germany), SKET Export-Import (Germany),
Skodaexport (Czech republic), Syprim SA (France)… It has supplied plant and
equipment all over India. Starting out from its do-it-yourself efforts for
captive purposes, Mukand is now equipped with comprehensive and modern
manufacturing facilities and computerized design, planning, procurement and
monitoring capabilities. It has developed a large network of ancillary units in
Bombay and elsewhere – it's a growing network. Mukand builds not just machines
but total systems for total capabilities.
Mukand
Ltd.'s track record of unique ‘firsts' in machine building in India include :
The largest India-designed and manufactured
gantry crane of 80-tonne capacity and 60-metre span, with monobox girder and
underslung trolley
Four girder ladle crane
Computer-controlled crane
Ship loader and ship unloader
A 34-metre long and 4.2-metre dia.
rotary dryer, the largest now in use in Asia (for Southern Petrochemicals
Industries Corporation Ltd.)
A 40-metre high structure that
moves on wheels, weighing about 700 tonnes, with multi-level folding platforms
and remote-controlled doors for vertical assembly of augmented satellite launch
vehicle (ASLV) – a ‘vertical workshop' with an array of electronically controlled
equipment at various levels – for the Indian Space Research Organisaion.
Open gantry area : 6,000 sq.mtrs.
Mukand's
outstanding achievements won for it the Confederation of Engineering Industry's
prestigious award in the area of technology
and innovation
The largest India-designed and
manufactured gantry crane of 80-tonne capacity and 60-metre span, with monobox
girder and underslung trolley
Four girder ladle crane
Computer-controlled crane
Ship loader and ship unloader
A 34-metre long and 4.2-metre dia.
rotary dryer, the largest now in use in Asia (for Southern Petrochemicals
Industries Corporation Ltd.)
A 40-metre high structure that moves
on wheels, weighing about 700 tonnes, with multi-level folding platforms and
remote-controlled doors for vertical assembly of augmented satellite launch
vehicle (ASLV) – a ‘vertical workshop' with an array of electronically
controlled equipment at various levels – for the Indian Space Research
Organisaion.
Open gantry area : 6,000 sq.mtrs.
Mukand
developed indigenous technology for :
Door extractor-cum-coke guide car
Gear box for rolling mill
Mill stand
Rotating trolley crane
Scraper reclaimer
Scrap transfer car
Slag car
CONTACT
Corporate Communications
Contact
Ms. Anna Abraham at anna@mukand.com
Steel - general information
Alloy &
Special Steel
Contact Mr.
V. M. Mashruwala at vmmashruwala@mukand.com
Stainless Steel
Contact
Mr.. A.M.Kulkarni at amkulkarni@mukand.com
Machine building – general information
EOT cranes & Gantry cranes
Contact Mr. H. V. Parikh hvparikh@mukand.com
EOT cranes & Gantry cranes
Contact Mr. H. V. Parikh hvparikh@mukand.com
for Electrical Level Luffing cranes,
Container Handling cranes, Bulk Material Handling equipment, Process Plant
equipment
Contact Mr. A. Sen at asen@mukand.com
for Defense, Space and Mining
equipment
Contact Mr. A. Sen at asen@mukand.com
for Heavy Castings
Contact
Mr. Jarnail Singh at jarnailsingh@mukand.com
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 45.85 |
|
UK Pound |
1 |
Rs. 85.82 |
|
Euro |
1 |
Rs. 58.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
4 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT
LINES |
1~10 |
4 |
|
--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 |
|
38 |
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 |
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 |