MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
GOODLUCK STEEL TUBES LIMITED |
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Registered Office : |
5/102 Sikka Complex Preet Vihar, Community Centre Vikas
Marg, |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
06.11.1986 |
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Com. Reg. No.: |
55-50910 |
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CIN No.: [Company
Identification No.] |
L74899DL1986PLC050910 / U27320UP1986PTC008341 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTG00350A |
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PAN No.: [Permanent
Account No.] |
AAACG3204D |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
Manufactures galvanised steel tubes and pipes |
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 930000 |
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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 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 : |
5/102 Sikka Complex Preet Vihar, Community Centre Vikas
Marg, |
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Tel. No.: |
91-11-22439513 / 22465439 |
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Fax No.: |
91-11-22214254 |
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E-Mail : |
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Website : |
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Head Office : |
Goodluck House, |
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Tel. No.: |
91-120-4196600 / 4196700 |
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Fax No.: |
91-120-4196666 / 4196777 |
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E-Mail : |
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Factory 1 : |
A-45, Industrial Area,
Sikandrabad, Distt., Bulandshahr - 203205 |
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Tel. No.: |
91-5735-222969 / 222970 |
DIRECTORS
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Name : |
Mr. M C Garg |
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Designation : |
Chairman |
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Name : |
Mr. R C Garg |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Garg |
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Designation : |
Director |
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Name : |
Mrs. Kanak Lata |
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Designation : |
Director |
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Name : |
Mrs. Pushpa Garg |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufactures galvanised steel tubes and pipes |
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Products : |
Pipes / Tubes G. P. / G. C. Sheet |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Anil Vaish & Company Chartered Accountants
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4500000 |
Equity Shares |
Rs. 10/- each |
Rs. 45.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3692150 |
Equity Shares |
Rs. 10/- each |
Rs. 36.922
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
36.900 |
36.900 |
36.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
197.000 |
173.300 |
138.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
233.900 |
210.200 |
175.800 |
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LOAN FUNDS |
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1] Secured Loans |
316.000 |
237.800 |
231.100 |
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2] Unsecured Loans |
54.900 |
41.100 |
34.600 |
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TOTAL BORROWING |
370.900 |
278.900 |
265.700 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
604.800 |
489.100 |
441.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
167.200 |
155.400 |
125.500 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
159.400
|
114.500 |
126.400 |
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Sundry Debtors |
277.800
|
215.300 |
152.600 |
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Cash & Bank Balances |
23.500
|
9.500 |
7.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
150.500
|
148.300 |
131.600 |
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Total
Current Assets |
611.200
|
487.600 |
417.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
143.000
|
126.400 |
76.400 |
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Provisions |
30.600
|
27.500 |
25.500 |
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Total
Current Liabilities |
173.600
|
153.900 |
101.900 |
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Net Current Assets |
437.600
|
333.700 |
316.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
604.800 |
489.100 |
441.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover |
2493.200
|
1865.800
|
1518.000
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Other Income |
112.900
|
179.900
|
101.500
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Stock
Adjustments |
22.200
|
25.500
|
50.200
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Total Income |
2628.300 |
2071.200 |
1669.700 |
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Profit/(Loss) Before Tax |
60.000
|
65.700
|
58.000
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Provision for Taxation |
22.900
|
18.000
|
17.400
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Profit/(Loss) After Tax |
37.100
|
47.700
|
40.600
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Earnings in Foreign Currency : |
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Total Earnings |
1486.100 |
NA |
NA |
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Expenditures : |
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Raw
Materials |
1941.100
|
1454.800
|
1167.300
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Excise
Duty |
226.100
|
209.000
|
178.800
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Power
& Fuel Cost |
37.000
|
35.300
|
31.900
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Other
Manufacturing Expenses |
56.000
|
53.300
|
46.100
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Employee
Cost |
20.900
|
18.900
|
13.800
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Selling
and Administration Expenses |
232.200
|
184.800
|
138.100
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Miscellaneous
Expenses |
6.200
|
09.900
|
2.400
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Interest
& Financial Charges |
37.600
|
29.700
|
24.800
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Depreciation
|
11.200
|
9.800
|
8.500
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Total Expenditure |
2568.300 |
2005.500 |
1611.700 |
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SUMMARISED RESULTS
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PARTICULARS |
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30.09.2006 |
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Type |
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1st
Half |
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Sales
Turnover |
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1587.500 |
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Other
Income |
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|
44.000 |
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Total
Income |
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1631.500 |
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Total
Expenditure |
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1564.000 |
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Operating
Profit |
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|
67.500 |
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Interest |
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|
18.000 |
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Gross
Profit |
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|
49.500 |
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Depreciation |
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|
8.500 |
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Tax |
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|
12.000 |
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Reported
PAT |
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|
29.000 |
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Dividend
(%) |
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|
0.000 |
KEY RATIOS
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Debt-Equity
Ratio |
1.51 |
1.47 |
1.19 |
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Long
Term Debt-Equity Ratio |
0.37 |
0.37 |
0.29 |
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Current
Ratio |
1.34 |
1.36 |
1.46 |
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TURNOVER
RATIOS |
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Fixed
Assets |
11.33 |
9.95 |
10.13 |
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Inventory |
18.21 |
15.49 |
17.03 |
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Debtors |
10.11 |
10.14 |
11.04 |
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Interest
Cover Ratio |
2.60 |
3.21 |
3.34 |
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Operating
Profit Margin(%) |
4.36 |
5.64 |
6.01 |
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Profit
Before Interest And Tax Margin(%) |
3.91 |
5.11 |
5.45 |
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Cash
Profit Margin(%) |
1.94 |
3.08 |
3.23 |
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Adjusted
Net Profit Margin(%) |
1.49 |
2.56 |
2.67 |
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Return
On Capital Employed(%) |
18.09 |
20.87 |
23.62 |
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Return
On Net Worth(%) |
17.28 |
25.80 |
25.34 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
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High |
Rs.7.00/- |
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Low |
Rs.7.00/- |
LOCAL AGENCY FURTHER INFORMATION
Subject was originally incorporated on 6th November, 1986 at
The company changed its registered office from 24th Addl,
Sihani Gate Scheme,
History
Subject was incorporated in Nov.'86 as a private limited
company. It became a deemed public company in Jul.'90 and was converted into a
public limited company in 1994. The company was promoted by M C Garg, K C Garg,
Anil Kumar and K C Agarwal.
The company manufactures galvanised steel tubes and pipes (of diameters ranging
from 1/2" to 10"). It has its unit in Sikandrabad with an installed
capacity of 32,000 tpa, equipped with sophisticated automatic electrical
resistance welding steel tubes manufacturing machinery and galvanizing plant.
Commercial production commenced in Aug.'87.
GSTL commenced mining granite in 1993. Granite mining is done at its plant at
Berhampur, Orissa. In Apr.'95, it came out with a public issue to part-finance
the expansion project to expand the existing capacity of 32,000 tpa to 50,000
tpa.
The company exports to
During the year 1999-2000, the company has set-up cold rolling strip plant at
its factory premises which is fully operational and registered a sales turnover
of Rs.525.251 Millions i.e. growth of 16% over the previous year.
REVIEW OF OPERATIONS
The Company's turnover for the year were recorded of Rs. 2493.297 Millions as
against Rs. 1865.837 Millions for the Previous year. The Profit after tax has
recorded to Rs 37.107 Millions as against Rs 47.746 Millions in the previous
year.
The Company has achieved an impressive Export growth during the year. The
Export turnover for the year ended 31st March 2005 was 1486.100 Millions as
against 1007.400 Millions for the previous financial year.
FOREIGN EXCHANGE EARNING AND OUTGOING
During the year the Company was able to generate Export earning of Rs. 1486.100
Millions (FOB value) and the total payment made during the year amount of Rs.
123.800 Millions in Foreign currency.
AS PER
WEBSITE
Goodluck
Group
Goodluck
Group is one of
GLST's
business pursuits are driven by following:
Mision
To excel in quality international business.
Vision
To be recognized internationally as best procurement partner.
Core Values
Customer Loyalty
Customer Satisfaction
Commitment to Quality
Continuous Communication
Business
Divisions
Pipe
Division
With combined capacity of more than 1,00,000 MT, Pipe Division manufactures all
kind of ERW Black Steel Pipes for various purposes.
- Steel Pipes manufactured as per ASTM specification.
- Capability exists for galvanising pipes upto 24 feet in lenght and
12 inches in diameter.
- Manufactures galvanised hollow sections.
Leading
manufacturers of manipulated tubes.
Cold Rolled and Galvanised Sheets-Coils Division
This unit is engaged in
manufacturing standard range of Galvanised Plain & Corrugated Sheets/ Coils
for wide range of applications. Cold Rolled Sheets/Coils produced by GLST are
widely used in various applications.
Hindon Carrying Co. Corporation
(P) Limited is the division of the Good Luck Group involved in the supply of
Indian & Imported Coal/Coke of all types.
International Division is
engaged in export of wide range of engineering products, construction
hardwares, plants & machinery.
Business Philosophy
Their business is based on sound
values that work for their staff, their customers, and their shareholders. With
these values, they aim to be
Future Outlook
With its customer focused
approach, emphasis on quality products & services combined with highly
competent management to guide, Goodluck Group is all set to become
Company
Profile
GLST
was established and commenced production in 1986 with an objective to provide quality
material to the national and international market. The journey from supplying
black steel pipes to becoming one of the leading manufacturers of Black and
Galvanized Pipes & Tubes, Cold Rolled Steel & Galvanized Sheets / Coils
has been filled with accomplishments and accolades. The quality of their
products and services are widely recognized.
Product
Profile
GLS manufactures wide variety of steel products to meet diversified usage &
applications. Their product range can be classified as under:
A. ERW
Black and Galvanized Pipes & Tubes
They offer wide range of mild
steel pipes & tubes for structural purposes, mechanical & meneral engg.
purpose, E.R.W. pipes for water, gas & sewrages, steel tubes for idlers for
belt conveyors, steel tubes for water wells, steel tubes for furnitures, steel
tubes for automobile purpose, screwed & socketed steel subes &
tubulars, steel pipes & tubes for pressure purposes, carbon steel tubes screwing
and mild & welded steel tubes for various other purposes.
Cold
Rolled Sheets/Coils produced by GLS are widely used in various applications,
such as industrial goods, automobile components, precision tubes and consumer
durable.
Their
integrated unit is engaged in manufacturing standard range of Galvanised Plain
& Corrugated Sheets for wide range of applications.
They
are manufacturing and exporting Mild Steel Black ERW Square Tubes, Rectangular
Tubes & Round Hollow Section Tubes and Cold Rolled Steel Sections as per
customer's requirement.
These are manufactured from HR and CR material costumer's requirment
- Steel Pipes manufactured as per ASTM specification.
- Capability exists for galvanising pipes upto 24 feet in lenght and
12 inches in diameter.
- Manufactures galvanised hollow sections.
- Leading manufacturers of manipulated tubes.
Clients
They enjoy the trust of their
wide clientele spread over 90 countries that include
Infrastructural Facilities
Integrated facilities with state
of the art equipment for manufacturing steel pipes, hollow sections, cold
rolled and galvanised steel. Has in- house testing facilities to undertake all
types of quality testing.
STEEL
STRUCTURE
Steel Structures Division of
GLST is engaged in manufacturing and exporting of wide range of Galranized
steel structures including Electricity Transmission Towers / Grid Towers,
Telecommunication Structures, MSIGI, Swaged Poles, Lighting Poles, Traffic
Light Poles, Street Light Poles, Galvanised Steel Structures for use in
telecommunications and power transmissions.
GSTL's products are designed and manufactured to achieve high standards of
quality. The concept of Total Quality Management (TQM) is built into
organizational structure and operations. GSTL is in approved vender list of
PGCIL, EIL, PDIL and other reputed organisations of the industry.
Apart from tailor-made structures as per customer requirements, they regularly
manufacture the following :
- Electricity Transmission Towers / Grid Towers
- Telecommunication Structures
- Swaged Poles for Transmission & Lighting
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.57 |
|
|
1 |
Rs.80.64 |
|
Euro |
1 |
Rs.54.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
51 |
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 |
|