MIRA
INFORM REPORT
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Report Date : |
09.02.2007 |
IDENTIFICATION DETAILS
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Name : |
SUJANA METAL
PRODUCTS LIMITED |
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Registered Office : |
Survey Nos.296/7/9, IDA Bollaram, Jinnaram Mandal, Medak District,
Andhra Pradesh, India |
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Country
: |
India |
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Financials
(as on) : |
30.06.2006 |
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Date of Incorporation : |
02.05.1988 |
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Com. Reg. No.: |
01-8610 |
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CIN
No.: [Company
Identification No.] |
L28120AP1988PLC008610 |
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Legal Form : |
Closely held public
limited liability company. |
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Line of Business : |
Company is in
engaged in producing Re-Rolled products, Mild Steel Ingots and others |
RATING
& COMMENTS
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MIRA’s Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having satisfactory track. Directors are
reported as experienced, respectable, and resourceful industrialists. Their trade
relations are fair. General financial position is satisfactory. Payments are
correct and as per commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Survey Nos.296/7/9, IDA Bollaram, Jinnaram Mandal, Medak
District, Andhra Pradesh, India |
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Corporate Office : |
18,
Nagarjuna Hills, Panjagutta, Hyderabad - 500 082, |
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Tel. No.: |
91-40-23351882, 23351887 |
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Factory 1 : |
Ř
Survey Nos.296/7/9, IDA Bollaram, Jinnaram Mandal,
Medak District, Andhra Pradesh, India Ř
Plot No.159B & C Ř
(iii) Plot No.128/A, I.D.A.Bollaram, Jinnaram Mandal, Medak District Andhra Pradesh |
DIRECTORS
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Name : |
Mr Y.S. Chowdhary |
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Designation : |
Chairman |
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Name : |
Mr. R.K. Birla |
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Designation : |
Managing Director |
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Name : |
Mr. G. Srinivasa Raju |
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Designation : |
Director |
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Name : |
Mr. S. Hanumantha Rao |
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Designation : |
Director |
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Name : |
Mr. J. Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr V . B. Chadha |
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Designation : |
Director |
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Name : |
Mr Sunil Kapoor |
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Designation : |
Director |
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Name : |
Mr M M Yesaw |
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Designation : |
Director |
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Name : |
Mr K Kameshwara Rao |
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Designation : |
Director |
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Name : |
Mr V Malakonda
Reddy |
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Designation : |
Director |
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Name : |
Mr K Srinivas Rao
(Dr.) |
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Designation : |
Director |
KEY
EXECUTIVES
|
Name : |
Mr. S. Naveen Kumar |
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Designation : |
Company Secretory |
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Name : |
Mr Y S Chowdary |
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Designation : |
Management
Committee Member |
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Name : |
Mr G Srinivasa Raju |
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Designation : |
Management
Committee Member |
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Name : |
Mr R K Birla |
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Designation : |
Management
Committee Member |
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Name : |
Mr S Hanumantha Rao |
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Designation : |
Management and
Audit Committee Member |
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Name : |
Mr K Srinivasa Rao |
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Designation : |
Audit Committee
Member |
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Name : |
Mr V Malakonda
Reddy |
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Designation : |
Audit Committee
Member |
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Name : |
Mr K Kameshwara Rao |
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Designation : |
Audit Committee
Member |
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Name : |
Mr Shaik Razia |
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Designation : |
Company Secretary |
MAJOR
SHAREHOLDERS
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Names of Shareholders |
Number
of Shares |
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Promoters and their Relatives |
8143015 |
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Bodies Corporate |
9046609 |
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Public |
6599476 |
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NRIs/OCBs |
000 |
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Foreign Bodies Corporate |
000 |
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Institutional Investors |
1000200 |
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Category of Shareholders |
Number
of Shares |
Percentage
of Holding |
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Promoters
and their Relatives |
13143015 |
33.84 |
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Bodies
Corporate |
3194667 |
8.23 |
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Public –
Individuals |
10040123 |
25.85 |
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NRI’s/OCBs |
243708 |
0.63 |
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FIIs |
3398123 |
8.75 |
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Institutional
Investors |
8813399 |
22.70 |
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Total |
38833035 |
100.00 |
BUSINESS
DETAILS
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Line of Business : |
Company is in engaged
in producing Re-Rolled products, Mild Steel Ingots and others |
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Products : |
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PRODUCTION
STATUS
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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a)
Castings Division: |
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M.S. Ingots |
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Matrix
Tones |
26,400 |
NA |
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b)
Re-Rolling Units (MT) |
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Tor and TMT Steel |
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Matrix
Tones |
150000 |
NA |
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Structural Steel |
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Matrix
Tones |
70000 |
NA |
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Pre Fabricated and Galvanised Steel |
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Matrix
Tones |
28125 |
NA |
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Re-rolled
Products & Galvanised Steel: (Including
Job Work) |
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Matrix
Tones |
NA |
30.06.2006
– 37097.3 30.06.2005 -
22072.2 |
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Processing |
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Matrix
Tones |
NA |
30.06.2006
–172257.1 30.06.2005 –
120287.5 |
GENERAL
INFORMATION
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Customers
: |
Following
are some of the key customers of the company 1] Towers Bharti
Tele-Ventures Limited 2]
TMT Bars Larsen & Toubro ltd Shapoorji Paloonji & Co ltd IVRCL Infrastructures & Projects
Ltd., IRCON International AP Transco & AP Genco Grid
corporation of Orissa Ltd BSES
Ltd AP
State Road Transport Corporation Nagarjuna
Construction Company Ltd Global
Tele Systems Ltd Tata
Projects Ltd Hindustan
Steel Works Constructions Ltd National
highways project, AP-ii package (JV between IVRCL & SPCL) Singapore
township (JV between NCC |
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No. of Employees : |
2000 |
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Bankers : |
Ř
Bank of Baroda Ř
Bank of Rajasthan Limited Ř
IndusInd Bank Limited Ř
IFCI Limited Ř
IDBI Limited |
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(Rs
in Millions) |
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Facilities
: |
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Banking
Relations : |
Satisfactory |
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Auditors : Address : |
G.V.
Suryanarayana Murthi Chartered
Accountant B-166, Sanjeeva Reddy Nagar,
Hyderabad. |
CAPITAL
STRUCTURE
Authorised Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
400,00,000 |
Equity Shares |
Rs.10/-
each |
Rs.400.000 Millions |
|
25,00,000 |
CRPS |
Rs.100/-
each |
Rs.
250.000 Millions |
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TOTAL |
|
Rs.
650.000 Millions |
Issued, Subscribed & Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,88,33,035 |
Equity Shares |
Rs.10/-
each |
Rs.
388.330 Millions |
|
20,90,160 |
Preference Shares |
Rs.100/-
each |
Rs.
209.016 Millions |
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TOTAL |
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Rs.
597.346 Millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
597.346 |
277.393 |
277.393 |
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2] Share Application Money |
0.000 |
18.220 |
18.220 |
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3] Reserves & Surplus |
2275.987 |
1091.589 |
789.487 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
NETWORTH
|
2873.333 |
1387.202 |
1085.100 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
898.395 |
1416.918 |
2042.465 |
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2] Unsecured Loans |
8.740 |
20.199 |
138.135 |
TOTAL BORROWING
|
907.135 |
1437.117 |
2180.600 |
|
DEFERRED TAX LIABILITIES |
371.081 |
321.568 |
267.740 |
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TOTAL
|
4151.549 |
3145.887 |
3533.440 |
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APPLICATION OF
FUNDS
|
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FIXED ASSETS [Net
Block]
|
1801.266 |
1548.505 |
1641.103 |
Capital work-in-progress
|
347.285 |
51.704 |
36.182 |
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INVESTMENT
|
214.478 |
214.478 |
214.478 |
DEFERREX TAX
ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS,
LOANS & ADVANCES
|
|
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Inventories
|
565.847 |
384.060 |
389.631 |
Sundry Debtors
|
1656.888 |
1552.261 |
1370.723 |
Cash & Bank
Balances
|
32.390 |
13.887 |
22.163 |
Other Current
Assets
|
0.000 |
0.000 |
0.000 |
Loans &
Advances
|
517.536 |
328.625 |
343.577 |
Total
Current Assets
|
2772.661 |
2278.833 |
2126.094 |
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
Current
Liabilities and Provisions
|
984.141 |
947.633 |
484.417 |
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Total
Current Liabilities
|
984.141 |
947.633 |
484.417 |
Net Current Assets
|
1788.520 |
1331.200 |
1641.677 |
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MISCELLANEOUS
EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
4151.549 |
3145.887 |
3533.440 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
Sales Turnover
[including other income]
|
7272.036 |
7030.768 |
7560.189 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
364.687 |
224.856 |
48.856 |
Provision for
Taxation
|
82.421 |
72.749 |
32.860 |
Profit/(Loss) After
Tax
|
282.266 |
152.107 |
15.996 |
|
|
|
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Export Value
|
2323.248 |
740.667 |
537.568 |
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|
|
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Import Value
|
1131.141 |
200.809 |
NA |
|
|
|
|
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Total Expenditure
|
6907.349 |
6805.911 |
7511.332 |
QUARTERLY
|
PARTICULARS |
|
30.09.2006 1st
Qtr |
31.12.2006 2nd
Qtr |
|
Sales Turnover |
|
2043.200 |
2068.900 |
|
Other Income |
|
3.300 |
5.700 |
|
Total Income |
|
2046.500 |
2074.600 |
|
Total Expenditure |
|
1873.200 |
1855.00 |
|
Operating Profit |
|
173.300 |
219.600 |
|
Interest |
|
19.400 |
25.600 |
|
Gross Profit |
|
153.900 |
194.00 |
|
Depreciation |
|
31.600 |
34.800 |
|
Tax |
|
10.900 |
13.400 |
|
Reported PAT |
|
111.400 |
144.900 |
200609 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in stock in Trade Rs 9.167 million Consumption of Raw
Material Rs 1812.403 million Other expenditure Rs 36.685 million General
Administrative Expenses Rs 7.161 million Selling & Distribution Expenses Rs
7.690 million Tax Includes Provision for Current Tax Rs 10.294 million Fringe
Benefit Tax Rs 0.615 million EPS is Basic & Diluted Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 35
Complaints disposed off during the quarter 35 Complaints unresolved at the end
of the quarter Nil 1. The above Un-audited financial results for the quarter
ended September 30, 2006 were approved in the Board Meeting held on October 14,
2006. 2. Proposal of the Company to de-merge the Towers Division in to a
separate Company will July 06 as relevant date is under process. 3. Break up of
the Net Sales and Profit after Tax between the Steels and Towers is as under:
(Rs in Million) Steels Towers Total Net Sales 1357.111 Millions 686.105
Millions 2043.216 Millions Profit after Tax 42.386 Millions 68.638 Millions
111.024 Millions 4. As a part of expansion, a new Tower Division at IDA
Bollaram with a installed capacity of 48000 Mts has been commissioned in the
first week of September 2006 thereby the present installed capacity of Tower
Division has become 76125 Mts per annuam.
200612 Quarter 2 --------------- Notes: 1.The above
unaudited financial results for the quarter ended 31.12.2006 were approved in
the Board Meeting held on 25.01.2007. 2.Proposals of the company to de-merge
the Towers Division in to a separate company and merger of Sujana Steels Ltd
into Sujana Metal Products Ltd with July 06 were approved by the shareholders
and creditors of the respective companies. 3.Break up of the Net Sales and
Profit after Tax between the Steels and Towers for the six months periods ended
31.12.2006 is as under: (Rs. In Millions) Steels Towers Total Net sales
2368.473 1743.678 4112.151 Profit after tax 79.753 176.520 256.273 4.The number
of Investor complanits pending at the beginning of the quarter - NIL , Received
and disposed off during the quarter 23 and lying unresolved at the end of the
quarter - NIL.
KEY RATIOS
|
PARTICULARS |
|
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity Ratio |
|
0.55 |
1.49 |
1.84 |
|
Long Term Debt-Equity Ratio |
|
0.52 |
1.16 |
1.38 |
|
Current Ratio |
|
1.82 |
1.54 |
1.38 |
|
TURNOVER RATIOS |
|
|
|
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|
Fixed Assets |
|
3.26 |
3.44 |
3.50 |
|
Inventory |
|
15.29 |
18.11 |
11.57 |
|
Debtors |
|
4.53 |
4.79 |
5.25 |
|
Interest Cover Ratio |
|
3.98 |
2.56 |
1.15 |
|
Operating Profit Margin(%) |
|
8.29 |
6.69 |
5.90 |
|
Profit Before Interest And Tax Margin(%) |
|
6.71 |
5.26 |
4.83 |
|
Cash Profit Margin(%) |
|
5.47 |
3.60 |
1.27 |
|
Adjusted Net Profit Margin(%) |
|
3.89 |
2.17 |
0.21 |
|
Return On Capital Employed(%) |
|
14.79 |
12.18 |
11.07 |
|
Return On Net Worth(%) |
|
14.07 |
12.80 |
1.32 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs.120 00/- |
|
Low |
Rs. 107.40/- |
LOCAL
AGENCY FURTHER INFORMATION
FIXED
ASSETS
Land,
Buildings, Plant & Machinery, Workshop –Equipment, Weighing Machine,
Electrical Installation, Furniture & Fixtures, Office Equipment, Vehicles,
Computer System & Erp,Lab Equipment
HISTORY
Sujana Metal Products
Ltd earlier known as Steels Steels Ltd (SSL) was incorporated on 2 May '88 as a
private limited company and was converted into a public limited company on 4
Apr.'92. The company was promoted by Y S Chowdary, V Malakonda Reddy and
others. Y S Chowdary is the Chairman & Managing Director. Other group
companies include Sujana Industries, Sujana Corporation, Sujana Holdings and
Sujana Pharma.
A public issue was made for Rs.29.200 Millions crores to finance the expansion programme of ingot.The company
increased the installed capacity by 16400 TPA and the expansion was completed
in 1992. The company manufactures steel and re-rolled steel products. The products
of the company are mainly for construction and industrial use and they enjoy a
very good demand.
The company's new hot re-rolling mill for the production of additional
1,25,000 tpa of steel products at Gummidipundi,Chennai was successfully completed.
The company's new Hot Re-rolling Mill for the production of 1,25,000
tonnes per annum has been transferred to M/s Padmini Steel Corporation Ltd, a
subsidiary company, production in this unit was started by the last quarter of
1997.
The company modernised its Re-rolling Mills by way of increasing its
manufacturing capacity to 110000 TPA at an cost of Rs 360.000 Millions . The
company has taken up Wind Farm Power project for 2 MW capacity in Ananthpur
Dist. A.P. at a cost of Rs.84.300 Millions and has met with financial
assistance from IREDA and Equity.The project which was flagged off in 1999-2000
has not completed and the company is taking necessary steps to complete the
Project as per schedule.
Status on
Long Term Debt Restructuring
The proposal made by the Company for restructuring of its
liabilities has-been sanctioned by Stressed Assets Stabilization Fund (SASF),
Mumbai vide its letter dated 28.06.2005 by reducing the rate of interest on
outstanding loans to 8% PA. with effect from 01.04.2003, repayment of core
principal amount in 40 quarterly installments commencing from October 1, 2006,
funding of interest from 01.04.2003to 30.09.2005 on simple interest basis etc.,
The Board took note of the same in its meeting held on
29.06.2005 subject to the terms and conditions mentioned in their letter dated
28th June, 2005 and requested SASF for modification of certain terms and
conditions. In turn, SASF vide their letter dated 29th October, 2005 agreed in
principle for conversion of 50% of the FITL (existing as on date) discounted at
10.25% for NPV into Equity Share Capital of the Company at a price in
accordance with the SEBI Guidelines. Balance 50% of FITL shall be converted
into 1% CRPS redeemable in 12 quarterly installments co-terminus with principal
repayment schedule.
Company’s Preformance
Directors hereby report that the
Company has achieved a turnover of Rs.7262.414 Millions upto
30.06.2006, as against the turnover of
Rs. 7003.720 Millions for the previous year ended 30.06.2005
Operations:
Company has achieved a turnover of Rs.
7262.414 Millions earning profit before tax of Rs.364.687 Millions. The gross
block as on 30.06.2006 stood at Rs. 2408.485 Millions and the Net Block as on
30.06.2006 stood at Rs.1801.266 Millions.
Allotment of equity and preference shares under
Debt Restructuring :
As per the sanction of restructuring of
term loans of the Company by Stressed Assets Stabilization Fund
(SASF), Mumbai, Company had allotted
(1) 5,93,735 Equity Shares of Rs.10/- each at a premium
of Rs.73/- per share to "Stressed
Assets Stabilization Fund", (SASF), Chennai (a trust established by the
Government of India for transferring
certain Non Performing Assets of the Industrial Development Bank
of India Limited) against the sanction
of debt restructuring vide SASF letter Nos. 2592/SASF/CBO
and 5938/SASF/CBO dated: 28"'
June, 2005 and 29th October, 2005 respectively, in respect of the loans
availed by the Company from IDBI,
basing on the resolution passed by the members of the company at
the Extra-Ordinary General Meeting of
the Company held on 31.03.2006 through private placement as
preferential allotment in accordance
with the Preferential Issue guidelines under SEBI (Disclosure
and Investor Protection) Guidelines,
2000 as amended from time to time (2) 17,90,160 (Seventeen Lakhs
Ninety Thousand One Hundred and Sixty
Only) 1% 'Cumulative Redeemable Preference Share/ (CRPS)
of Rs.100/- each to 'Stressed Assets
Stabilisation Fund', (SASF) Chennai on exercise of option by IDBI Limited for converting
50% of Funded Interest Term Loan (FITL) into 1% 'Cumulative Redeemable
Preference Shares' (CRPS) of the Company.
As per the letters issued by 'IFCI
Limited, Hyderabad, vide its letter Nos.(l) HRO.E.130/206-591, dated
25.04.2006 (2) HRO.E. 130/2006/693
dated 21.07.2006 and (3) HRO.E.130/2006/814 dated 04.08.2006, sanctioning One
Time Settlement (OTS) of dues in respect of the loans availed by the Company
from IFCI Limited, Hyderabad, an amount of Rs.80.000 Millions is to be payable
by the Company by way of allotment of Optionally Fully Convertible Debentures
(OFCDs) redeemable in 18 months and carrying
coupon rate of 9% p.a. each payable
quarterly with effect from 01.04.2006 in lieu of conversion of a part
of principal into equity. After expiry
of 18 months period, OFCDs if not redeemed shall stand converted
into equity.
This amount of Rs. 80.000 Millions is
proposed to be transferred to M/s. Sujana Towers Limited as per the Scheme of
Arrangement between Company and M/s Sujana Towers Limited wherein it is
provided that the Optionally Fully Convertible Debentures worth Rs. 80.000
Millions will be allotted by M/s. Sujana Towers Limited. Therefore, the
allotment of OFCDs to IFCI Limited has not been made by Company.
Status on
Scheme of Arrangement for demerging the Towers Division with "M/sSujana
Towers Limited" and amalgamation of "Mis Sujana Steels Limited"
with the Company (SMPL).
Directors approved to scheme of
arrangement for transfer of Towers Division of the Company to
M/s. Sujana Towers Limited and
Amalgamation of M/s. Sujana Steels Limited with the Company.
Necessary approval from the Bombay
Stock Exchange Limited has been obtained vide their Letter No.DCS/
SJK/RCG/HKK/2006/513414-3, dated October 27, 2006. The Company Law Board,
Southern Region Bench, Chennai has approved the shifting of registered office
of "Sujana Steels Limited", from Chennai to Hyderabad (which is
proposed to be merged with the Company (SMPL)) for enabling to file the
petition with the Hon'ble High Court of Andhra Pradesh. Necessary steps are
being taken for filing the application before Hon'ble High Court of Andhra
Pradesh.
Increase in authorized share capital
During the year the Authorized Share
Capital of the Company has been increased from Rs.300.000 Millions divided into
25.000 Millions Equity Shares of Rs. 10/- ( Rupees Ten only ) each and 0.500
Millions Preference Shares of Rs.100/- (Rupees One Hundred only) each to
Rs.650.000 Millions divided into 40.000 Millions Equity Shares of
Rs.l0/-(Rupees Ten only) each and 2.500 Millions Preference Shares of Rs.100/-
(Rupees One Hundred only) each.
Registered
Office of the Company
The petition made by the Company before
the Company Law Board, Southern Region Bench,Chennai for change of Registered
Office from Hyderabad to Chennai was withdrawn by the Company.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry
structure and development:
Globally the average capacity
utilization of steel has increased significantly during the year. The bulk of the
increase in steel demand was contributed by China. Chna accounted for 30% of
global steel demand in the year 2005. The industrial sector registered a strong
growth during the year, primarily due to the growth of the manufacturing
sector. During the year under review demand in the domestic steel market was
strong, with double-digit growth in the automobiles, capital goods and consumer
durable segments. Domestic steel prices moved in tandem with the international
prices showing a downward trend as compared to the previous year. The latest
National Steel Policy aims at hiking steel production to 110 million tones by
2019-20. The longterm goal is that India should become self-reliant and
globally competitive in the steel sector in terms of cost, quality and product
mix.
The Company deals in re-rolled long
iron and steel products and power transmission & telecom towers.
Company has recorded a turnover of
Rs.7262.414 Millions during the year under review as compared to Rs.7003.720
Millions during the previous year. However company js under the process of
expansion and
modernization of the existing
structural mill and expansion of Towers Division at Bollaram, Medak Dist.
Opportunities
and Strengths:
The demand for iron & steel long
products is expected to be higher on account of the huge investments being
planned on infrastructure projects. Company has capabilities to quickly adapt
to the changing market conditions and sustain the projected growth in sales and
profits.
Threats and
Risks:
There is severe competition from the
other secondary re-rolling manufacturers and the prices are expected to be
volatile.
Business
Outlook:
The International Iron and Steel
Institute (IISI) forecasts that the total use of finished steel products
continues to show strong growth in all regions of the World. While the main
focus of the growth will be in China, total world steel demand is predicted to
grow by 7.3% to 1,087 million metric tones in 2006. Data for 2005 highlights
the influence of inventory reduction by steel industry customers, which will
turn positive in 2006 as steel companies replenish stocks. However, with a
predicted growth of 5.8% to 1,150 million metric tones in 2007, the global
outlook for steel demand remains positive. The largest factor in this growth is
the influence of China. Even with aslowing of Chinese steel demand,
double-digit growth in China is still predicted in 2006 and 2007. This
continued growth demonstrates the essential role that steel plays in the
functioning of modern society.
Financial
Performance;
The Gross Block as on 30.06.2006 stood
at Rs.2408.485 Millions and the Net Block as on 30.06.2006
stood at Rs. 1801.266 Millions. The
Company has allocated Rs.76.950 Millions to meet the capital expenditure on
expansion and modernization of existing structural mill at Bollaram, Medak
Dist, Andhra Pradesh and an amount of Rs.720.900 Millions to meet the capital
expenditure on expansion of towers division at Bollaram, Medak Dist, Andhra
Pradesh The deferred tax liability has been provided in
accordance with the requirements of
Accounting Standard 22 - Accounting of Taxes on Income, issued
by the Institute of Chartered
Accountants of India and the Provision for Fringe Benefit tax was created as
per Income Tax Act, 1961
Operational
Performance:
Company has achieved a turnover of
Rs.7262.414 Millions and a PBDIT of Rs.601.707 Millions against
Rs.468.652. Millions during the
previous year.
|
SECURED
LOANS |
30.06.2006 |
30.06.2005 |
|
|
|
|
|
Term Loans |
886.560 |
1300.514 |
|
Working Capital Loans |
11.834 |
0.116 |
|
|
898.395 |
1416.918 |
|
|
|
|
|
UNSECURED
LOANS |
|
|
|
Hire Purchase Loans |
8.740 |
8.963 |
|
Others |
0.000 |
11.236 |
|
|
8.740 |
20.199 |
Fixed
Assets
- Land
- Buildings
- Plant
and Machinery
- Workshop
Equipment
- Weighing
Machine
- Electrical
Installation
- Furniture
and Fixtures
- Office
Equipment
- Vehicles
- Computer
System and Erp
- Lab
Equipment
Related
Parties Transaction:
The following are related parties as
defined in Accounting Standard 18 of the Institue of Chartered Accountants of
India Yalamanchili Finance and Trading Private Limited, Foster Infin and
Trading Private Limited, Sujana Universal Industries Limited, Sujana Finance
and Trading Private Limited, sujana Steels Limited, Sujana Power (Tuticorin)
Limited and Sujana Power (Gangikondan) Limited
Particulars of Transactions with
related parties:
|
Transaction |
30.06.2006 |
30.06.2005 |
|
Sales |
36.897 |
26.284 |
|
Purchase |
246.832 |
33.552 |
|
Others |
9.816 |
15.238 |
|
Outstanding Balance – Debit (Net) |
--- |
108.896 |
|
Outstanding Balance – Credit (Net) |
80.664 |
--- |
Vision
When it comes to boardroom supremacy, the Japanese are known
for sharpness. Not surprisingly, the Land of the Rising Sun has brought us the concept
called Kaizen - 'Continuous Improvement'. As a concept company believes in
dearly. Excellence is an ideal that company is always striving to achieve and
is the reason why company has reached the heights that it is at today.
As company move forward, company sees kaizen manifest in 3 major growth
propellers:
Size: company is set to emerge the largest private tower
manufacturing company in India and scale up to MNC status
People: A higher accent on keeping the commitments and greater
responsibility as corporate citizens are the key mandates
Quality: Products, with a deeper focus into every process
that company drive quality upon
Awards
The Bollaram unit of Sujana Metal Products Limited, was
awarded ISO 9001:2000 certification last month for manufacture and supply of
structural and alloy steel sections as part of the quality focus initiatives at
the company.
Stating that "Sujana's products are reputed for strength and
specification-adherence", Mr RK Birla, Managing Director , said,
"company has recorded lower than 0.4% rejections and less than 1%
complaintsfrom the ISO certified
facility in the last quarter. This is due to efficient
operational management systems for continuous improvement instituted for the
ISO process, which were duly certified by Det Norske Veritas."
As Sujana services the requirements of core sectors including telecom, power,
construction and infrastructure, this announcement will have significant impact
on large steel users to improve their performance based on project life-cycle
costing
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.
44.06 |
|
UK Pound |
1 |
Rs.
86.34 |
|
Euro |
1 |
Rs.
57.46 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |