MIRA
INFORM REPORT
|
Report Date : |
12.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ISMAT
LIMITED |
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Registered Office : |
Lunked
Towers, Viman Nagar, Pune-411014, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.1999 |
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Com. Reg. No.: |
11-16417 |
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CIN No.: [Company Identification No.] |
L27109PN1999PLC016417 |
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Legal Form : |
Public
Limited Liability Company. Company’s shares are listed on Stock Exchanges |
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Line of Business : |
Manufacturers
of Seamless Tubes, Tube based Products and Alloy Steels |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
17000000 |
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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 ad reputed company having satisfactory track. Directors
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are usually 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 : |
Lunked
Towers, Viman Nagar, Pune-411014, Maharashtra, India |
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Tel. No.: |
91-020-26630144/
26631461 |
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Mobile No.: |
91-020-26630779 |
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E-Mail : |
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Website : |
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Factory
1 : |
MIDC
Industrial Area, Ahmednagar-414111 |
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Factory
2 : |
MIDC
Industrial Area, Baramati-413133 |
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Factory
3 : |
Jejuri-Morgaon
road, Jejuri-413133 |
DIRECTORS
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Name : |
Mr.
Khushroo Rustumji |
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Designation : |
Chairman |
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Name : |
Mr. V.
Balasubramanian |
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Designation : |
Executive
Director (Operations) |
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Name : |
Mr.
Nirmal Chandra |
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Designation : |
President
(International Business and Product Development) |
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Name : |
Mr.
Salil Taneja |
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Designation : |
President
(Corporate Strategy and Development) |
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Name : |
Mr. O.
P. Kakkar |
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Designation : |
Managing
Director |
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Name : |
Mr. B.
R. Taneja |
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Designation : |
Chief
Executive Officer |
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Name : |
Mr. A.
K. Jain |
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Designation : |
Director |
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Name : |
Mr. J.
P. Sureka |
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Designation : |
Director |
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Name : |
Mr. K.
D. Hodavdekar |
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Designation : |
Director
(IDBI Nominee) |
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Name : |
Mr. N.
D. Pinge |
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Designation : |
Director
(ICICI Nominee) |
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Name : |
Mr.
Rajiv Goel |
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Designation : |
Chief
Financial Officer |
KEY EXECUTIVES
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Name
: |
Mr.
Jayan Nair |
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Designation
: |
Company
Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Seamless Tubes, Tube based Products and Alloy Steels |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Tube |
Tonnes Per Annum |
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158000 |
135635 |
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Steel |
Tonnes Per Annum |
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250000 |
234707 |
GENERAL
INFORMATION
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Suppliers : |
v
Aishwarya Engineers, Ajay Syscon (Private) Limited v
Agarwal Heat Systems v
Autoplus Engineering v
Amol Enterprises v
Aurangabad Metal Products v
Arora Refractories Private Limited v
Arsons Engineers v
B. B. EIectrotechnic v
B.Y. Industries v
Best Engineers v
Craftman Enterprises v
Caleo Engineering Company v
Contiroll Engineers v
Chaney & Company v
Chaitanya Enterprises v
ColourTech Paints v
Delta Flexibles v
Dynex Filters v
Dee Tee Industries v
Dee-kay Gears v
Emco Lenze Private Limited v
Essential Power v
Transmission Private Limited v
Europak Engineers v
Fairtech Engineers v
Fitwell Engineering Company v
Flotech Solutions v
Geeta Gloves v
H.C.& Company v
Ishwar Engineering Company v
Hi-Tech Corporation v
Joglekar Refractories v
Kandi Engineering Private Limited v
Lechler (India) Private Limited v
Lectroteck Systems (Pune) Private Limited v
Monika Enterprises v
Max Flow Controls India Private Limited v
Master Fab Engineers v
Mahati Electronics Private Limited v
M. G. Industries v
Mech Spares Rubber Products v
Metaequip Engineers v
Metropolitan Equipments & Constructions Private Limited v
Midfield steels Private Limited v
Nandadeep Engineers, Precision Engineering Products v
Patcon Agencies Private Limited v
Panchal Engineering v
Pandit Gears v
Protochem Industries Private Limited v
Parikh Industries v
Rajdeep Engineering Industries v
RM Applied Engineers v
R.K. Controls Instruments Private Limited v
Reliable Steels Distributors v
Quality Engineering Reclaimers v
Suraj Enterprises v
Shrinath Enterprises v
Spare Age India Private Limited v
Sini Engineering Works v
Shree Prakash Industries v
Steel Age Industries v
Shanti Industries v
S. K. Enterprises v
Spin-N-Cast v
Seal Jet Seals v
Samartha Engineers v
Swastik Castings v
Swirl Systems v
TLT Engineering India v
Vako Seals v
Vin Engineers v
Vision Hydraulics v
Vaibhav Engineers v
Versatile Paint Industries v
P. M. Tokekar v
Protochem Industries Private Limited v
Vijaya Fabricators v
Floraa v
Laxmi Packing Industries v
Malhotra Engineerings v
Power Build Limited v
Shanai Engineerings v
Sanghi Gases v
Star Engineering Company v
Suprabha Protective Products Private Limited v
Techno Trak Engineerings v
Trans Power Equipments v
Vim Sun Gears Private Limited v
Jagjeevan Rubber Industries v
Chati Thermal Systems & Services v
Spark-on Engineerings v
Saraswati Manufacturing Works v
Shashi Dhawal Hydraulics Private Limited v
Valency Compounds Services v
Himalaya Paints v
Durga Industries v
Mould Tech Private Limited v
Krish Enterprises v
The Asiatic Oxygen & Acetylene Company v
Shubham Engineerings v
Saras Plastices v
Maya Engineering Works Ratna Industries v
Anupama Enterprises v
Baker Gauges India Limited v
Gagangiri Alloys Private Limited v
Kelvin Industries v
Konark Plastics v
Maruti Industries v
Orient Wire Ropes v
Prashant Engineers v
Shree Parshwanath Industries v
Suvarn Udyog v
Swastik Industries v
Techno-Aid Enterprises v
Vijay Engineering Works v
Yelmesh Engineering Works v
Classic Engineering Works v
New Shree Springs v
Tashkent Oil Company Private Limited v
Plastipeel Chemical & Plastics Private Limited v
Kalika Industries v
Navjeevan Rubber Products v
Ahmednagar Industrial Gases Private Limited v
Kalyani Box Works v
S P Corporation v
Fine Tools v
Central and Western India Chemicals v
Siddhartha Leather Works v
Abhitech Energycon Services Private Limited v
Maharastra Box Mfg Company v
Cubic Cartons v
Kentee Oils Private Limited v
Bhairavnath Industries v
Kishore Wind Well v
Abhinav Alloys Private Limited v
Abhishek Engineering v
Aggarwal Plastic v
Annapurna Engineering Works v
Bhagyalaxmi Enterprises v
Bharat Roll Industry Private Limited v
C. H. Engineering Works v
Carol Petroleum Private Limited v
Coalition Engineers v
Corochem v
Dash heavy Engineering Company Private Limited v
Deeplaxmi Eng. Company v
Dewas Tools Private Limited v
Dies & Tools Limited v
Everest Traders v
Fine Eng Instruments v
Fomas India Limited v
G G R Enterprises v
Galaxy Bearings Limited v
Ganesh Trading Corporation v
General Instruments (Pneumetic) v
Graphic Charts Limited v
Grind Master Machines Private Limited v
Indian Cable Corporation v
Industrial Graphites v
International Electricals v
Jain Chemicals & Gases Private Limited v
Kamal Forgings Private Limited v
Maruti Industries v
Mudrik Enterprises v
Padma Engineering v
Pravilla Automation Private Limited v
Rohidas Gangaram Raskar v
Rohit Engineering Works Baramati v
S.K.Gupta Private Limited v
S R Engineering Works v
Sar Automation v
Shah Traders v
Shilpa Enterprises v
Shubham Conveyors & Engineering. Private Limited v
S P M Tools, Standard Engineering works v
Steelman Engineering & Forgings v
Tru - Cut Tools (I) Private Limited v
Thruput Technologies (I) Private Limited v
Vyankatesh Enterprises v
Well - Flow Engineering Company v
Wiperdrive Engineering v
Corrogard Chemicals v
N N Enterprises v
Venture Steels v
Precision Toolings v
Applied Engineering Sevices v
Garware Wallropes Limited v
Seal Jet Seals Petroleums Private Limited v
J S L Refrectories Limited v
Success Enterprises v
Sudha Industries v
Precirnac Automation v
New Sai Engineering works v
Nagpur Pollution Control v
Kedarlink Enterprises v
Cubix Corporation v
Rohan Packaging Industries v
Mahakali Gases v
Kalptaru Packaging v
Jayashree Encoders Private Limited v
Heat N Blast v
Apar Castings v
Auto Steel & Rubber Industries |
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No. of Employees : |
About
2000 |
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Bankers : |
v
ICICI
Bank Limited v
IFCI
Limited v
Industrial
Development Bank of India Limited v
Life
Insurance Corporation of India v
Unit
Trust of India v
International
Finance Corporation (Washington) v
Bank
of Baroda v
Bank
of India v
Bank
of Maharashtra v
Central
bank of India v
Indian
Overseas Bank v
State
Bank of India |
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Facilities : |
Secured Loans :
Unsecured Loans
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Banking Relations : |
Satisfactory
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Auditors : |
v
P.G.
Bhagwat
Chartered Accountants v
J.K.
Shah & Company
Chartered Accountants |
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Associates/Subsidiaries : |
v
Indian
Seamless Enterprises Limited v
Indian
Seamless Incoprorated v
Taneja
Aerospace and Aviation Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
155000000 |
Equity
Shares |
Rs.5/- each |
Rs.775.000 millions |
|
8008000 |
10%
Non Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.800.800 millions |
|
92000 |
10%
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.9.200 |
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Total |
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Rs.1585.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
144381756 |
Equity
Shares |
Rs.5/- each |
Rs.721.909 millions |
|
4601485 |
10%
Non Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.460.149 millions |
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|
10%
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.9.000 millions |
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Total |
|
Rs.1191.058
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1191.058 |
1073.658 |
1048.600 |
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2] Share Suspense |
0.000 |
472.025 |
0.000 |
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3] Reserves & Surplus |
3100.226 |
2018.908 |
793.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4291.284 |
3564.591 |
1841.800 |
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LOAN FUNDS |
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|
|
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1] Secured Loans |
6733.502 |
7163.187 |
2884.600 |
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2] Unsecured Loans |
1107.316 |
833.938 |
822.300 |
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TOTAL BORROWING |
7840.818 |
7997.125 |
3706.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
12132.102 |
11561.716 |
5548.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8063.720 |
8459.876 |
3694.800 |
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Capital work-in-progress |
148.636 |
121.827 |
40.600 |
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INVESTMENT |
0.060 |
0.666 |
0.500 |
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DEFERREX TAX ASSETS |
915.800 |
909.700 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
|
|
347.400 |
|
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Sundry Debtors |
|
|
1288.800 |
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Cash & Bank Balances |
5351.362
|
4737.419 |
198.400 |
|
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Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
1544.900 |
|
Total Current Assets |
5351.362
|
4737.419 |
3379.500 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
1511.100 |
|
|
Provisions |
|
|
80.100 |
|
Total Current Liabilities |
2422.775
|
2730.390 |
1591.200 |
|
|
Net Current Assets |
2928.587
|
2007.029 |
1788.300 |
|
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|
|
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|
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MISCELLANEOUS EXPENSES |
75.299 |
62.618 |
24.500 |
|
|
|
|
|
|
|
|
TOTAL |
12132.102 |
11561.716 |
5548.700 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
10852.703 |
9098.877 |
5268.300 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
1253.961 |
258.441 |
59.500 |
|
Provision
for Taxation |
103.546 |
(70.441) |
43.400 |
|
Profit/(Loss)
After Tax |
1150.415 |
328.882 |
16.100 |
|
|
|
|
|
|
Export
Value |
2072.174 |
1513.160 |
NA |
|
|
|
|
|
|
Total
Expenditure |
8211.560 |
7456.829 |
5208.800 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Sales Turnover |
2691.500 |
2868.000 |
2892.100 |
|
Other Income |
19.000 |
17.000 |
26.900 |
|
Total Income |
2710.500 |
2885.000 |
2919.000 |
|
Total
Expenditure |
2145.200 |
2279.100 |
2223.500 |
|
Operating
Profit |
565.300 |
605.900 |
695.500 |
|
Interest |
220.200 |
214.900 |
141.900 |
|
Gross Profit |
345.100 |
391.000 |
553.600 |
|
Depreciation |
132.300 |
129.700 |
132.000 |
|
Tax |
24.800 |
30.300 |
48.600 |
|
Reported PAT |
188.000 |
231.000 |
373.000 |
200606 Quarter 1
Notes:
EPS is Basic &
Diluted 1. The Company has two reportable segments viz. Tube and Steel 2. The
effect of deferred tax if any has not been considered in the current quarter
and the same will be considered at the year end. 3. The figures of current and
previous year quarter are not comparable since previous year's quarter figures
represents standalone Indian Seamless Steels & Alloys Limited and therefore
segment reporting for the previous year quarter is not applicable. 4. As at the
beginning of the quarter, there were no outstanding investor complaints. During
the quarter, 201 investor complaints were received and same were redressed. 5.
The comparative figures are regrouped and reclassified to meet the current
quarter's classification. 6. The above results were taken on record by the
Board of Directors at their meeting held on July 29, 2006.
200609 Quarter 2
Notes
Gross Sales Includes
Gross Sales Rs 5010.20 million Inter Segment Transfers Rs(1592.40)million Inter
Division Transfers Rs (214.60)million Expenditure Includes (Increase)/Decrease
in stock in Trade Rs 63.60 million Consumption of Raw Materials Rs 1287.60
million Direct Expenditure Rs 747.70 million Staff Cost Rs 135.00 million Other
Expenditure Rs 45.20 million Tax includes Provision for Taxation Current Rs
29.30 million Fringe Benefit Rs 1.00 million 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 135 Complaints disposed off
during the quarter 135 Complaints unresolved at the end of the quarter Nil 1.
The figures of current and previous year quarter and half year are not
comparable since previous year's quarter and half year's figures represents
standalone Indian Seamless Steels & Alloys Limited and not those of the
merged Company. Accordingly Segment reporting for the previous quarter and half
year is not applicable. 2. The Company is primarily a Seamless tube producer
with captive steel making facilities. However to comply with Accounting
Standard 17, the Company is required to classify Steel also as a separate
Segment. 3. The effect of deferred tax if any, has not been considered in the
current quarter and the half year, same will be considered at the year end. 4.
The comparative figures are regrouped and reclassified to meet the current quarter's
classification. The above results were taken on record by the Board of
Directors at their meeting held on October 31, 2006 and have been reviewed by
the Auditors.
200612 Quarter 3
Notes
Gross Sales Includes
Gross Sales Rs 5231.90 million Inter Segment Transfers Rs(1766.30)million Inter
Division Transfers Rs (221.40)million Expenditure Includes (Increase)/Decrease
in stock in Trade Rs (250.50) million Consumption of Raw Materials Rs 1502.60
million Direct Expenditure Rs 774.10 million Staff Cost Rs 154.90 million Other
Expenditure Rs 42.40 million Tax includes Provision for Taxation Current Rs
47.30 million Fringe Benefit Rs 1.30 million Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 202 Complaints disposed off
during the quarter 202 Complaints unresolved at the end of the quarter Nil 1.
The Company is primarily a Seamless tube producer with captive steel making
facilities. However to comply with Accounting Standard 17, the Company is
required to classify Steel also as a separate Segment. 2. The effect of
deferred tax if any, has not been considered in the quarter and the nine
months, same will be considered at the year end. 3. The Company has risen
during the quarter Foreign Currency Convertible Bonds (FCCB) of US$ 20 million
and has utilised Rs 429.341 million towards objects of the FCCB issue. 4. The
comparative figures are regrouped and reclassified to meet the current
quarter's classification. The above results were taken on record by the Board
of Directors at their meeting held on January 24, 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.02 |
2.16 |
1.99 |
|
Long Term Debt-Equity Ratio |
1.74 |
1.93 |
1.65 |
|
Current Ratio |
1.36 |
1.33 |
1.52 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.25 |
1.48 |
1.32 |
|
Inventory |
7.62 |
12.27 |
15.10 |
|
Debtors |
5.38 |
6.14 |
4.19 |
|
Interest Cover Ratio |
2.28 |
1.21 |
1.17 |
|
Operating Profit Margin(%) |
21.01 |
15.85 |
10.58 |
|
Profit Before Interest And Tax Margin(%) |
16.85 |
11.55 |
7.96 |
|
Cash Profit Margin(%) |
12.84 |
7.11 |
2.93 |
|
Adjusted Net Profit Margin(%) |
8.68 |
2.81 |
0.31 |
|
Return On Capital Employed(%) |
17.01 |
13.42 |
7.62 |
|
Return On Net Worth(%) |
32.41 |
14.24 |
1.21 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.81.20/- |
|
Low |
Rs.79.10/- |
LOCAL AGENCY
FURTHER INFORMATION
Company’s
fixed assets include leasehold land, freehold land, buildings, plant and
machinery, furniture and fixtures, office equipments, vehicles and plant and
machinery taken on lease.
OPERATIONS
There has been a marked improvement in performance of Tube segment while
the Steel segment has consolidated its position. Conscious cost reduction,
improving product mix and better utilization saw the Operating margin improve
from 17.8% to 23.7% of Sales.
MARKET
Strong growth in each of the major markets for the Company's products
viz Automobile, Bearing, Construction Equipments, Oil exploration and Power
have pushed up the domestic Tube sales by 32% to Rs. 4870 Millions. Exports
maintained its growth momentum and went up by 40% to Rs. 211 Millions. Europe
has now emerged as a major market accounting for about 40% of Exports.
FINANCE
During the year the Company has converted Rs. 1050 Millions of Rupee
Loans into Foreign Currency Loans to reduce its interest cost. The Company has
also repaid Term Loans of Rs. 750 Millions. Accordingly, the interest cost
during the year has come down by about 20% and is now lower at 8.3% of sales as
against 10.6% last year. The Company has initiated the process of refinancing
the existing CDR debt by fresh Term Loans at lower cost to reduce the interest
burden.
Further the Company is also exploring various options for raising
finance for its future plans and to further reduce the finance cost.
EXPANSION
The Company has embarked upon expansion of its capacity at Baramati Unit
from 90,000 tones per annum to 4,00,000 tones per annum which together with
Ahmednagar Unit will take the total tube manufacturing capacity to 4,75,000
tones per annum. The expansion is estimated to cost Rs. 2500 Millions. Further
the project will help reduce the cost of production significantly and make the
Company highly competitive. The project is expected to be commissioned by
December 2007.
SUBSIDIARY COMPANY
During the year, Indian Seamless Power limited a wholly owned Subsidiary
ceased to be a Subsidiary Company.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The sustained economic growth led to robust demand for seamless tubes in
the country which together with the export growth resulted in 35% growth in
Tube Sales.
The improvement in performance during 2005-06 can be attributed to the
following major initiatives:
v
Baramati Unit which turned around last year was the largest contributor
to revenue and profit growth among the three units.
v
Continued growth in exports with emphasis on extending the reach in
terms of customer, products and geographic segments.
v
Increasing shift in product mix towards high value items.
v
Increase in Tube sales as percentage of total sales.
v
Cost efficiencies arising from improved utilisation as also conscious
cost reduction measures undertaken by the Company.
OPPORTUNITIES AND
THREATS
Seamless Tubes consumption is aligned to economic growth and 7% growth
recorded by the economy for 3 consecutive years has meant accelerating demand
for tubes. In particular, the investments under way in both construction and
power sector has created a large market for seamless tubes. On the
international front, increasing customers base, buoyancy in U.S. Economy and
under exploited European market present a large pool of opportunity.
The Company, with its global competitive strengths, is suitably placed
to exploit this opportunity.
The Company's focus on continuous improvement in quality and delivery,
large range of product offering, and the widespread geographical spread not
only insulates it against 'competitor aggression' but also makes it possible to
improve its penetration on a sustained basis. The expansion in capacity would
result in improved economies of scale & further bring down the cost of
production. This would enable the Company to retain and improve market share
even under suppressed and price competitive market conditions.
OUTLOOK
Given the strong market, the Company has reason to be optimistic about
its prospects during 2006-07. Going forward, the expansion project will drive
and transform the business of the Company. The prices of inputs continue to be
volatile and the Company pursues the strategy of either linking the sale price
to international scrap prices or entering into shorter delivery orders.
FINANCIAL
PERFORMANCE
The year was notable for the fact that the Company has for the first
time crossed turnover of Rs. 10000 Millions and profit of Rs.1000 Millions.
This has led to the Company emerging as a strong financial entity.
Indian Seamless Steels & Alloys Limited (formerly Jejuri Steels & Alloys Limited), the new name which come into effect on March 27, 2002 subsequent to the amalgamation of erstwhile Indian Seamless Steels & Alloys Limited with Jejuri Steels & Alloys Limited on 30.09.2001.
Indian Seamless Steels & Alloys(ISSAL), produces Hot Rolled Bars and Rods
of Alloy/Non-Alloy Steels and Cast Rolled of Alloy steel from its steel plant
at Jejuri in Pune District. The steel plant has an installed capacity of 190000
MTPA.
ISSAL is the main supplier of steel to The Indian Seamless Metal Tubes Limited
giving ISSAL the advantage of assured base load. The company is planning to
broad banding its product range and customer base. It is supplying alloy steel
products to companies in automobile, forging and engineering companies in
India.
The Company is having one wholly owned subsidiary Company called Indian
Seamless Power Limited
The company is considering a Corporate Debt Restructuring proposal, which also
envisages the merger of Indian Semaless Metal Tubes Limited and ISSAL. In this
regard the company has constituted a commitee to negotiate the CDR and evaluate
the Merger plan.
The Company is certified and Registered to QS 9000 and ISO 9002.
Website Details :
History
The Indian Seamless Metal Tubes Limited was promoted in 1977 by a group of technocrats to produce specialized seamless tubes in India. Beginning with an installed capacity of 15,000 metric tons per annum, ISMT commenced production in 1980 with the installation and commissioning of an Assel mill in technical collaboration with Mannesman Demag Meer of Germany. Subsequently, in 1990 the production capacity was raised to 50,000 metric tons per annum with the addition of a second Assel Mill. In 1995 The Indian Seamless Metal Tubes Limited promoted another company, Indian Seamless Steels and Alloys Limited (ISSAL), to produce alloy steel, the raw material used in the manufacture of seamless tubes, giving ISMT better control over product quality as well as deliveries.
In April 2000 The Indian Seamless Metal Tubes Limited acquired Kalyani Seamless Tubes Limited (KSTL), the other major Indian manufacturer of seamless tubes. The combined entity which retained the name The Indian Seamless Metal Tubes Limited emerged as not only the largest producer of seamless tubes in India but also as one of the largest and most diversified producers of specialized seamless tubes worldwide with - an installed capacity of 150,000 metric tons of tubes per annum in the size range of 6mm to 273mm.
In 2005 The Indian Seamless Metal Tubes Limited and Indian Seamless Steels and Alloys Limited merged to form ISMT Limited. This Company is the largest integrated manufacturer of specialized seamless tubes in the Asia Pacific Region. Currently ISMT Limited has an installed capacity of 155,000 tpa and 250,000 tpa for seamless tubes and alloy steel respectively.
Currently all tubes at ISMT Limited, are manufactured through the Assel Mill route. This process yields tubes of very high dimensional accuracy and excellent concentricity thus minimizing the requirements of final machining. As a result, these tubes are ideal for applications such as the manufacture of bearings, automobile parts, drill rods, hydraulic cylinders, gas cylinders, boilers, etc. Apart from tubes, ISMT Limited also manufactures a wide range of value added products for each of these industries. These include items such as bearing rings, gear blanks, shifter sleeves, cages for constant velocity joints, swaged & machined axles, threaded and coupled casings, couplings and a host of similar products.
Milestones
1977 : The Indian Seamless Metal Tubes Limited Incorporated
1980 : The Indian Seamless Metal Tubes
Limited Starts Commercial Production
1988 : Taneja Aerospace & Aviation Limited Incorporated
1989 : Indian
Seamless Steels & Alloys Limited Incorporated
1994 : Taneja
Aerospace & Aviation Limited First Certification Of Airworthy Flight/
Commercial Production
1994 : Indian
Seamless Steels & Alloys Limited Starts Commercial Production
1999 : Kalyani
Seamless Tubes Limited Merges With The Indian Seamless Metal Tubes Limited
2005 : Ismt
Limited Formed Through The Merger Of The Indian Seamless Metal Tubes Limited And Indian Seamless Steels And Alloys Limited
Group Companies
ISMT North America is a wholly owned subsidiary of the ISMT
Limited and provides a wide spectrum of seamless tube products and a hands-on
level of service for the diverse North America marketplace.
The Group Company Taneja Aerospace and Aviation Limited (TAAL) is
the first and the only private sector aircraft manufacturing company in the
country. In addition to manufacturing a six seat aircraft, it manufactures
advanced aero-structures and parts for the Indian and international aerospace
industry. It is, also, the sole marketing representative for Cessna in India
for its business class jets.
Press Release :
Results for Quarter I of FY 2006-07
Announced
Pune: July
29, 2006: The Pune based engineering company, ISMT Limited, announced its
financial results for Quarter I of FY 2006-07.
The
Company is the only integrated and diversified manufacturer of specialized
seamless tubes and alloy steels in India. The Company offers an unmatched range
of specialized tubes to Tier I suppliers of auto components, bearings, and
other engineering OEM’s. Additionally, the products are used for applications
such as drilling of oil wells, high pressure boilers, and mining. The specialty
steels manufactured by the Company is preferred by the most discerning buyers
in the domestic bearing and forging industries.
Highlights
of QI of FY 2006-07 results vis-à-vis the last year are:
Tube sale
increase of 25 percent
EBIDTA increased by 24 percent to Rs 570 millions
Cash profits improve by over 40 percent to Rs 320 millions.
Mr. O.P.
Kakkar, the Managing Director of ISMT Limited, is of the opinion that “the
performance of the Company is as it was planned and the management is confident
of progressively improving the performance of the company through the remaining
part of the year to record a substantial improvement in performance over the
previous year. All the annual maintenance shutdowns have been carried out and
all the plants are geared up to meet the expectations of their customers”. He
added that, “they have already initiated work on the expansion project which
would increase their capacity in tube making from 155,000 TPA to 475,000 TPA
and alloy steel manufacturing from 250,000 TPA to 500,000 TPA and with this they
would be looking forward to a steep growth in their operating performance in
the next five years”.
Mr. Rajiv
Goel, the CFO of the Company added that “the improvement in the performance of
the Company, its improving presence in the domestic and international markets,
the speed of implementation of the expansion project, and its commitment to all
its stakeholders clearly establishes that the improvement in performance is
going to be marked and sustained and it would soon be ‘the most sought after’
specialized seamless tube manufacturer in the world”. He is of the opinion that
“the Company is in the business of specialized seamless tubes and the
performance of the tube segment has recorded a growth in sales turnover of 25
percent. The domestic market is showing signs of stable growth and the two new
sectors that the Company is focusing on – power and construction equipment –
are growing at a very fast pace and thus would become huge growth drivers for
the Company and enable it to achieve optimal utilization of its increased
capacity in the shortest possible time.”
The
Company would be able to meet its growth plans for the next two years and,
thereafter, the increase in capacity that is under implementation and expected
to be completed by the fourth quarter of 2007-08 would support the sustained
medium-term growth. It is expected that the top-line after capacity
augmentation would treble to over Rs 30000 millions.
Contact :
Automobile, Mining,
General Engineering and OCTG
Contact: Mr. S Mallya, Senior General Manager (Marketing)
ISMT Limited, Eden Park, C-Wing, Off Pune – Nagar Road, Viman Nagar, Pune – 411
014
Email : sudhir.mallya@ismt.co.in
Tel : 020-2650 4007 / 2663 1475
Bearings,
Boiler, and Projects :
Contact: Mr. Ajay Kabu,
General Manager
ISMT Limited, Lunkad Towers, Viman Nagar, Pune – 411 014
Email : ajayk@ismt.co.in
Tel : 020-26630130 / 2663 0714
Procurement
:
Contact: Mr. R Kumar, Senior
General Manager (Procurement)
ISMT Limited, Eden Park, C-Wing, Viman Nagar, Pune – 411 014
Email : rawmaterials@ismt.co.in
Tel : 020-26504038 / 26630715
Corporate
Affairs and Communication
Contact: Mr. Rakesh Duda,
General Manger (Corporate Office) and Resident Director at Delhi
ISMT Limited, Lunkad Towers, Viman Nagar, Pune – 411 014
Email : rduda@ismt.co.in or rduda@vsnl.com
Tel : 020-26630144 / 2663 0714
Investor
Relations :
Contact: Mr. Jayan Nair, Chief
Group Counsel and Company Secretary
ISMT Limited, Lunkad Towers, Viman Nagar, Pune – 411 014
Email : legal@ismt.co.in
Tel : 020-26630144 / 2663 0714
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.44.17 |
|
UK
Pound |
1 |
Rs.86.10 |
|
Euro |
1 |
Rs.57.26 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|