MIRA
INFORM REPORT
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Report Date : |
05.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LLOYDS STEEL
INDUSTRIES LIMITED |
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Formerly Known As : |
GUPTA TUBES AND
PIPES PRIVATE LIMITED |
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Registered Office : |
Modern Mills
Compound, 101, Kesharvao Khade Marg, Jacob Circle, Mumbai – 400 011,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.04.1970 |
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Com. Reg. No.: |
11-14621 |
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CIN No.: [Company
Identification No.] |
L27100MH1970PLC014621 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04143G |
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PAN No.: [Permanent
Account No.] |
AAATL1607J |
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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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Line of Business : |
Manufacturing and
fabrication of chemical and pharmaceutical machinery, ship sets of steering
gears stabilisers, steel pipes and tubes, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Ways and means
position of the company is difficult. Payments are reported as slow and
delayed. Profit margin is slow and delayed. Profit margin is under severe
pressure. The company can
be considered for any business dealings on safe and secured trade terms and
conditions, only. |
LOCATIONS
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Registered Office : |
Modern Centre, 'B' Wing, 2nd Floor, Sane Guruji Marg, Mahalaxmi,
Mumbai-400 011, Maharashtra, India |
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Tel. No.: |
91-22-30418111/06 |
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Fax No.: |
91-22-30418260/59 |
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E-Mail : |
puspendu@lloyds.in |
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Website : |
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Factory 1 : |
Steel Division Lloyds Nagar, Bhugaon Link Road, Wardha – 442 001, Maharashtra |
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Tel. No.: |
91-7152-305000 |
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Fax No.: |
91-7152-305050 |
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Factory 2 : |
Engineering Division Plot No. A-5/5, A-6/3, M.I.D.C. Industrial Area, Murbad, District
Thane, Maharashtra |
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Regional
Offices : |
Located at :- Y
Kolkata, West Bengal Y
Hyderabad, Andhra Pradesh Y
Mumbai, Maharashtra Y
New Delhi Y
Bangalore, Karnataka, India Y
Chennai, Tamilnadu, India |
DIRECTORS
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Name : |
Mr. Mukesh R.
Gupta |
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Designation : |
Chairman |
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Name : |
Mr. Rajesh R.
Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. B. L. Agarwal |
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Designation : |
Director |
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Name : |
Mr. B.
Ravindranath |
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Designation : |
Director (IDBI
Nominee) |
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Name : |
Mr. S. K. Singhai |
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Designation : |
Director (IFCI
Nominee) |
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Name : |
Mr. K. A. Krishna
Rao |
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Designation : |
Director |
SHAREHOLDING
PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Promoters |
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20.38 % |
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Financial Institutions / Banks |
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06.14 % |
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Mfs / Axis |
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00.51 % |
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FII |
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00.42 % |
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Others |
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72.55 % |
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Total |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
fabrication of chemical and pharmaceutical machinery, ship sets of steering
gears stabilisers, steel pipes and tubes, etc. |
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Products : |
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PRODUCTION STATUS
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Products |
Unit |
Installed Capacity |
Actual Production |
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Fabrication of
Chemicals, Pharmaceutical and other Machinery and Structurals |
M.T. |
13,855 |
-- |
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Steel Structurals |
M.T. |
7,000 |
-- |
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Ship sets of
Steering Gears & Stabilisers each |
Nos. |
8 |
-- |
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Steel Pipes and
Tubes |
M.T. |
10,000 |
-- |
|
Silos |
M.T. |
10,000 |
-- |
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Marine Loading
Arms/Truck and Rail Loading Arms |
Nos. |
200 |
-- |
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Hot Rolled
Coils/Plates/Sheets |
M.T. |
600000 |
511824 |
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Cold Rolled
Coils/Sheets |
M.T. |
350000 |
166402 |
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GP Coils/Sheets
& GC Sheets |
M.T. |
125000 |
187701 |
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Power Plants |
Nos. |
5 |
-- |
GENERAL
INFORMATION
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No. of Employees : |
1439 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Todarwal and Todarwal Chartered Accountants |
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Memberships : |
Confederation of
Indian Industry |
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Associates : |
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Subsidiaries : |
Aristo Realty
Developers (Formerly Lloyds Realty Limited) |
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Parent Company : |
Lloyds Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2000.000 millions |
|
250,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 2500.000 millions |
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Total |
|
Rs.
4500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
192,106,371 |
Equity Shares |
Rs. 10/- each |
Rs. 1921.064 millions |
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Less: |
Calls-in-Arrears |
|
Rs. 30.806 millions |
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Add: |
Forfeited Shares |
|
Rs. 1.893 millions |
|
236,275,420 |
Redeemable Preference Shares
|
Rs. 10/- each |
Rs. 2362.754 |
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Total
|
|
Rs. 4254.905 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4254.905 |
4241.949 |
1886.203 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4149.066 |
4149.060 |
3874.991 |
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4] (Accumulated Losses) |
[12162.091] |
[11511.419] |
(10886.093) |
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NETWORTH |
[3758.120] |
[3120.410] |
(5124.899) |
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LOAN FUNDS |
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1] Secured Loans |
13603.325 |
14081.369 |
15588.356 |
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2] Unsecured Loans |
180.654 |
218.537 |
2573.509 |
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TOTAL BORROWING |
13783.979 |
14299.906 |
18161.865 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10025.859 |
11179.496 |
13036.966 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
11342.680 |
12264.330 |
12662.054 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
25.000 |
100.002 |
100.002 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3017.915
|
2361.657 |
2188.880
|
|
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Sundry Debtors |
1231.164
|
1066.693 |
616.169
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Cash & Bank Balances |
177.723
|
178.519 |
121.466
|
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Other Current Assets |
0.000
|
0.000 |
0.000
|
|
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Loans & Advances |
1742.762
|
937.841 |
1449.176
|
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Total
Current Assets |
6169.564
|
4544.710 |
4375.691 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7553.527
|
5818.916 |
4224.234
|
|
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Provisions |
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|
0.000
|
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Total
Current Liabilities |
7553.527
|
5818.916 |
4224.234 |
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Net Current Assets |
[1383.963]
|
[1274.206] |
151.457
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MISCELLANEOUS EXPENSES |
42.142 |
89.370 |
123.453 |
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TOTAL |
10025.859 |
11179.496 |
13036.966 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
19320.493 |
15864.823 |
15189.443 |
|
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Other Income |
391.244 |
111.885 |
0.000 |
|
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Total Income |
19711.737 |
15976.708 |
15189.443 |
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|
|
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Profit/(Loss) Before Tax |
[677.811] |
[628.385] |
1213.522 |
|
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Provision for Taxation |
3.608 |
3.680 |
-- |
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Profit/(Loss) After Tax |
[681.419] |
[632.065] |
1213.522 |
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Earnings in Foreign Currency : |
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Total Earnings |
0.300 |
0.000 |
95.668 |
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Imports : |
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Raw Materials |
2394.167 |
2234.337 |
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Stores & Spares |
286.279 |
223.702 |
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Total Imports |
2680.446 |
2458.039 |
1818.908 |
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Expenditures : |
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Raw Materials
Consumed/Sold & Other Materials |
12916.020 |
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|
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Excise Duty |
2064.891 |
1878.193 |
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Personnel |
347.641 |
273.594 |
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Manufacturing
& Asset Maintenance |
2441.014 |
1792.267 |
|
|
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Administrative
& other Expenses |
178.368 |
104.129 |
14691.444 |
|
|
Selling &
Distribution Expenses |
926.926 |
699.119 |
|
|
|
Preliminary /
Issue / Deferred Expenses Written Off |
47.228 |
47.227 |
|
|
|
Interest and
Financial Charges |
342.326 |
393.246 |
|
|
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Depreciation |
1125.134 |
1090.711 |
|
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Total Expenditure |
20389.548 |
17195.52 |
14691.444 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 [1st
Quarter] |
30.09.2007 [2nd
Quarter] |
|
Sales Turnover |
|
5162.600
|
4486.6
|
|
Other Income |
|
69.800
|
554.300
|
|
Total Income |
|
5232.400
|
5040.900
|
|
Total Expenditure |
|
4878.100
|
4524.400
|
|
Operating Profit |
|
354.300
|
516.500
|
|
Interest |
|
50.900
|
74.000
|
|
Gross Profit |
|
303.400
|
442.500
|
|
Depreciation |
|
281.300
|
312.800
|
|
Tax |
|
0.500
|
1.000
|
|
Reported PAT |
|
21.600
|
128.700
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.49 |
0.45 |
0.42 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.87 |
0.74 |
0.72 |
|
Inventory |
7.18 |
6.97 |
8.54 |
|
Debtors |
16.82 |
18.85 |
9.89 |
|
Interest Cover Ratio |
[0.36] |
[1.88] |
2.93 |
|
Operating Profit Margin (%) |
4.89 |
1.86 |
12.19 |
|
Profit Before Interest and Tax Margin (%) |
[0.94] |
[5.01] |
4.99 |
|
Cash Profit Margin (%) |
2.30 |
[0.81] |
10.49 |
|
Adjusted Net Profit Margin (%) |
[3.53] |
[7.68] |
3.29 |
|
Return on Capital Employed (%) |
0.00 |
0.00 |
3.89 |
|
Return on Net Worth (%) |
0.00 |
0.00 |
[170.93] |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated in the name and style of Gupta
Tubes and Pipes Private Limited on 27th April, 1970. The name of the company was changed to
Lloyds Steel Industries Private Limited on 10th September,
1985. The company’s status was changed
to that of Public Limited Company with effect from 3rd June, 1986.
It’s Company Registration Number is 14621.
The company’s registered office was shifted from “Lloyds
House, 954, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra”
to the above address.
The company was promoted by Mr. R. N. Gupta and is the
flagship of the Lloyds group. Its’ engineering division manufactures a wide
range of capital equipments and executes turnkey projects. Its steel division,
commissioned in 1994, at Wardha, Maharashtra, manufactures wide strip
hot-rolled coils. Hot-rolled coils are cold-rolled and converted to GP/CG
sheets (installed capacity : 400000 tpa). The company has a worldwide
collaboration to obtain technology on a long-term basis with Vosper Thornycroft,
U.K., CE Natco International, Singapore, FMC, Europe, SA, France, Mechron
Energy, Canada, LGE, U.K. and United Engineering, U.S.A. Lloyds Realty is a
wholly-owned subsidiary of the company.
The company came out with an issue of convertible debentures
in February, 1994 to part-finance facilities to manufacture 0.4 million tpa of
hot-rolled steel strips. Commercial production commenced in 1994. The forward
integration project undertaken by the company to manufacture CR coils and CP/GC
sheets/coil, has been implemented. Of the several turnkey projects executed
successfully are some of the world’s largest – a fully automatic LPG loading
station at Hazira for the Oil and Natural Gas Commission (ONGC), a space simulator for Indian Space Research
Organisation (ISRO), steering, Gear and Stabilisers for the Indian Navy,
Storage facilities for Reliance Industries, Horton spheres for the PVC projects
of Finolex Industries and Reliance Industries.
During March, 1996, it came out with an offer of 75.141
millions equity shares of Rs. 10/- each a premium of Rs. 18/- aggregating Rs.
2100 millions with detachable warrants in the ratio of 1 warrant for every 10
equity shares to the existing shareholders of the company on Right basis in the
ratio of 64 shares for every 100 shares held, to part finance the project to
manufacture 225000 tpa Cold Rolled Close Annealed (CRCA) and 125000 tpa
Galvanised Plain (GP) / Galvanised Corrugated (GC) sheets at Wardha,
Maharashtra.
During the year 1997-98, the Wardha plant was accorded ISO
9002 certificate by SGS Yarsley ICS Limited, U.K. During 1998-99, the company
in consultation with financial institution transferred the 80 MW captive power
project to a separate company viz. Vidarbha Power Limited and hence forth this
project will be implemented by the said company.
The Cold Rolling Mill – II, (CRM-II) and plate finishing
mill which was undergoing trial runs, commenced commercial production from
September, 2001.
OPERATIONS
AND OVERALL PERFORMANCE:
The Steel demand has grown steadily during last three years which resulted in
elevating the India's rank among the top steel producers of the world from 9th
position in 2004 to 7th position in the year under review. In tandem the price
of Flat Steel with an exception of previous year has also shown a upswing
trend. However, the cost of raw materials particularly zinc prices which has
shown a jump of over 100% and energy during the year under review has kept
margins under constant pressure.. The Company achieved a Turnover of Rs.19320.500 Millions as against Rs.15864.800 Millions in the previous year, showing a remarkable increase of
21.78%.
The Company incurred a Loss, before exceptional items, of Rs. 677.800 Millions during the year as compared with previous year loss of Rs.
1218.800 Millions after providing depreciation
of Rs.1125.100 Millions (Previous year
Rs.1090.700 Millions).
Debt Restructuring:
On the restructuring/settlement of debts with the Financial Institutions and
Banks, the Restructuring proposals are under various stages of discussion with
the lenders. In accordance with the restructured terms, the Company has paid
off Rs. 704.500 Millions during the year towards past Debt
liabilities.
During the year, company has issued Redeemable Preference Shares at par of Rs.
12.900
Millions against part conversion of its debt to IDBI
as per the approval of Members at the last Annual General Meeting. These
Preference Shares will be redeemed with a premium of 11.5% commencing from Financial
year 2016.
Steel Products:
Steel Products Sales during the year under review has seen an improvement of
23% over the previous year and has reached a figure of Rs.18706.400 Millions as against the previous year figure of Rs.15265
Millions. The exports of steel has shown a quantum
jump and has almost doubled. The Export during the year was at Rs.2761.900
Millions as against Rs.1272.800 Millions recorded during the previous year.
Engineering Products:
The Engineering Products, during the year under review has recorded sales at
Rs. 614.100 Millions as compared to the previous year of
Rs.1278.700 Millions.
The
Company during the year has successfully executed jobs for reputed public and
private sector companies. The setting up of Pelletization Plant at Orissa for a
client is almost in the completion stages. The Company continue to support in
supply of spares and services to Navy, Coast Guard, Mumbai Port Trust, GRSE and
major Oil and Gas sector companies.
MANAGEMENT DISCUSSION AND
ANALYSIS:
The
core business of the Company is manufacturing and marketing Iron and Steel
products and manufacturing capital equipments and turnkey projects.
The Management discussions and analysis
is given hereunder:
Industry structure and development : Steel
prices remained firm during second half of the year after seeing a fall in
prices during the previous year. The steel sector has performed well in the
year under review. The Engineering Products of the Company has been approved
for its engineering skills/works/services by various premier consulting
companies and Inspection Agencies. The company is highly competitive in view of
tough competition from foreign companies/agencies.
Segment-wise performance: The
Company is mainly in the business of manufacturing Steel and Capital Equipments
and Turnkey Projects. The Company has no activity outside India except export
of steel products manufactured in India. Segment wise performance is given at
Note No.17 of Schedule Q i.e. Notes on Accounts.
Outlook: With sustained global
demand and the industry consolidation gathering momentum, there is every
possibility of the steel producers getting back the pricing power. Intact, the
consolidation is also expected to lower the prices because of expected
synergies in such areas as procurement and logistics though the timeline is
difficult to predict.
However
the input cost showing no signs of softening, pressure on margins is likely to
continue during the current year. For Engineering Industry, the Current year
appears to be promising. The Company is participating on continuous basis in
the tenders of major public sector undertaking amongst various other
companies.
FIXED
ASSETS
- Land
- Building
- Plant & Machinery
- Computers
- Electrical Installations
- Office Equipment
- Furniture & Fixtures
- Motor Vehicles
- Railway Siding
AS PER WEBSITE
·
The USD 850 Million LLOYDS has expanded and
diversified into core business areas, ensuring synergy amongst its business
ventures spreading over 4 plants, at 3 pivotal locations in India.
·
The focus in manufacturing is, Steel & related
products, including upstream (Coal Based DRI) & Downstream (like Pipes,
Tubes, Engineering Products)
·
LLOYDS plants/divisions are equipped with the
state of art technology, equipments and excellent infrastructure like water,
power, rail link, and townships.
LLOYDS
Dedication towards Customer Service has ensured the group
Consolidation in the worst times & Growth in the Booming Business Cycles
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.39.41 |
|
UK Pound |
1 |
Rs.79.81 |
|
Euro |
1 |
Rs.57.58 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
22 |
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|