MIRA
INFORM REPORT
|
Report Date : |
21.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
USHA MARTIN
LIMITED |
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Formerly Known
As : |
USHA BELTRON
LIMITED |
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Registered Office : |
Mangal Kalash, 2 A,
Shakespeare Sarani, Kolkata – 700 071, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.05.1986 |
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Com. Reg. No.: |
21-91621 |
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CIN No.: [Company
Identification No.] |
L99999WB1986PTC91621 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALU01301G |
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Legal Form : |
Public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer of
jelly filled telephone cables, wire and wire ropes and steel. Its operations are spread cover Ranchi,
Jamshedpur, Agra and Bangalore |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 28707100 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and diversified company having satisfactory track
records. Available information
indicates high financial responsibility of the company. Their trade relations are fair. Financial
position of the company is good.
Business is active. The company can
be considered good for any normal business dealings. It can be regarded as a promising business
partner in a long-run |
LOCATIONS
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Registered
Office : |
Mangal Kalash, 2
A, Shakespeare Sarani, Kolkata – 700 071, West Bengal, India |
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Tel. No.: |
91-33-2282 8540 /
41 / 6737 / 8545 / 39800300 |
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Fax No.: |
91-33-2282 1660 /
1971 / 39800400 |
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E-Mail : |
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Website : |
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Corporate
Office : |
2A, Shakespeare
Sarani, Kolkata – 700 072, West Bengal, India |
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Tel. No.: |
91-33-2282 8540 /
8541 / 8545 / 2248 3677 |
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Fax No.: |
91-33-2282 3866 /
2282 6498 |
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E-Mail : |
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Website : |
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Administrative
Office : |
Usha Alloys and
Steel Division, Post Box 147, Jamshedpur – 831001, India |
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Tel No.: |
91-657-2386052 /
2386070 |
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Factory : |
v Wire
and Wire Ropes \ Cable \ Usha Ismal Division Tatisilwai, Ranchi – 835 103, Bihar, India v Steel
Division Adityapur, Jamshedpur – 831
001,Jharkhand, Bihar, India v Rolling
Mill Division 12/16, Nawalganj, Agra – 282 006, Uttar
Pradesh, India v Machinery
Division Main Road, Whitefield, Bangalore – 560
066, Karnataka, India Others: Barjamda, Jharkhand, (Iron Ore mines) Hoshiarpur, Punjab Doddanekundi Industrial Area, Bangalore |
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DIRECTORS
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Name : |
Mr. B. K. Jhawar |
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Designation : |
Chairman |
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Name : |
Brij K Jhawar |
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Designation : |
Director |
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Name : |
Mr. Prashant
Jhawar |
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Designation : |
Vice Chairman |
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Name : |
Mr. Rajeev Jhawar |
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Designation : |
Managing Director |
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Name : |
Dr. P.
Bhattacharya |
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Designation : |
Joint Managing Director |
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Name : |
Mr. U. V. Rao |
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Designation : |
Director |
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Name : |
Mr. A. K.
Choudhri |
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Designation : |
Director |
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Name : |
Mr. M J Subbaiah |
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Designation : |
Director (Nominee of ICICI) |
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Name : |
Mr. M J Subbaiah |
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Designation : |
Director - Nominee (ICICI) |
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Name : |
Mr. J K Roy |
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Designation : |
Director - Nominee (IDBI) |
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Name : |
Mr. N J Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Suresh Neotia |
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Designation : |
Director |
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Name : |
Mr. Ashok Basu |
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Designation : |
Director |
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Name : |
Dr. P Bhattacharya |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. A K Somani |
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Designation : |
Company Secretary |
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Name |
Mr. B K Jhawar |
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Designation |
Chairman |
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Age |
68 years |
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Qualification |
Graduate |
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Date of
Joining |
Since Incorporation |
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Previous
Employment |
ICICI Limited - Director |
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Name |
Dr. P. Bhattacharya |
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Designation |
Executive Director |
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Age |
53 years |
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Qualification |
B.E.(Mech.), M. Tech. (Design Engg.), PHD (Solid Mechanics) |
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Experience |
32 years |
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Date of
Joining |
02.02.1998 |
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Previous
Employment |
Essar Steels Limited – Chief Operations Officer |
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Name |
Rajeev Jhawar |
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Designation |
Managing Director |
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Age |
38 years |
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Qualification |
B.Com. (Hons) |
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Experience |
17 years |
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Date of
Joining |
01.10.1997 |
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Previous
Employment |
Usha Martin Industries Limited – Joint Managing Director |
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Name : |
Mr. S N Guha |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. S K modak |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Rahul Gupta |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Subir Sen |
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Designation : |
President |
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Name : |
Mr. A Basak |
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Designation : |
Senior Vice President |
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Name : |
Mr. S Somani |
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Designation : |
Senior Vice president |
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Name : |
Mr. K C Dujari |
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Designation : |
Senior Vice president |
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Name : |
Mr., A K Dutta |
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Designation : |
Senior Vice President |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of promoter and Promoter Group |
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India - |
628708 |
1.32 |
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Individual / HUF |
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Bodies Corporate |
16440574 |
34.34 |
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Foreign - |
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Bodies Corporate |
3855227 |
8.05 |
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Public shareholding |
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Institution - |
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Mutual Funds and UTI |
7100873 |
14.83 |
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Financial Institution / Banks |
187774 |
0.39 |
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Insurance Companies |
2562266 |
5.35 |
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Foreign Institutions Investors |
9011801 |
18.83 |
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Non Institutions |
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Bodies Corporate |
2801340 |
5.85 |
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i) Individual shareholders holding nominal share capital upto Rs.
0.100 millions |
3835651 |
8.01 |
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ii) Individual shareholders holdings nominal share capital in excess
of Rs. 0.100 millions |
94268 |
0.20 |
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Shares held by Custodians and against which depository Receipts have
been issued. |
1354874 |
2.83 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
jelly filled telephone cables, wire and wire ropes and steel. Its operation are spread cover Ranchi,
Jamshedpur, Agra and Bangalore |
PRODUCTION STATUS as on 31.03.2006:
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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Wire Drawing And
Allied Machines |
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Wire Machines |
Nos |
50 |
25 |
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Wire Rods |
MT |
228000 |
290035 |
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Wire Ropes,
Strands Including Locked Coil |
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Wire Ropes |
MT |
55000 |
63716 |
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Wire |
MT |
41700 |
43998 |
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Pig Iron /Hot
Metal |
MT |
200000 |
195514 |
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Billets |
MT |
360000 |
296192 |
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Sponge Iron |
MT |
100000 |
46851 |
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Hydralic Machines
Including Presses. Proof Loading Machines Accessories |
Pcs. |
100 |
1 |
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Blocks, Dies And Accessories |
--- |
400 |
36 |
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Ferrules, Slings,
Fittings And Accessories Equipment And Materials For Prestressed Concrete System
And Bargrip Seamless |
Pcs. |
700000 |
112637 |
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Tubes For
Splicing x |
Pcs. |
460000 |
1255672 |
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Concrete System
And Bargrip Seamless |
Pcs. |
-- |
43 |
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Jelly Filled |
-- |
--- |
--- |
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Telecommunication |
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Cables |
LCKM |
64 |
0.02 |
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Bright Bar |
MT |
12000 |
6519 |
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Conveyor Cord |
MT |
840 |
787 |
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House Wire |
KM |
1680 |
4 |
GENERAL
INFORMATION
|
Suppliers : |
Ø
Eastern
Steels Ø
Acme
Industries Ø
Tatanagar
Refractory and Minerals Company Limited Ø
Sarvesh Refractory
P Limited Ø
Hytek
Industries Kaypee Enterprises Ø
Kaypee
Enterprises Ø
Bihar
Precision Machine Tools Manufacturing Company Ø
Metropoliton
Casting and Engineering Works Ø
Madhuraj
Imprints Private Limited |
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No. of Employees : |
8000 |
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Bankers : |
v State Bank Of India v Canara Bank, Kolkata, West Bengal, India v ICICI Bank Limited v Indusind Bank Limited v Allahabad Bank, Kolkata, West Bengal,
India v The Hongkong & Shanghai Banking
Corporation Limited, Kolkata, West Bengal, India v HDFC Bank Limited v BNP Paribas v American Express Bank Limited v
The Bank Of
Tokyo Limited, Kolkata, West Bengal, India v
Axis Bank
Limited v
Export
Import Bank Of India |
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Facilities : |
NOTES: 1. 9% Privately
Placed Secured Redeemable Non-Convertible Debentures are secured by a Joint Mortgage
by deposit of title deeds with Trustees for the Debenture holders in respect
of certain immovable properties and by English Mortgage on certain immovable
properties and hypothecation over movable assets of the Company (other than
book debts) subject to prior charges of the Company's Bankers on specified
movable assets for Working Capital requirements. Term Loans from Banks are
secured/to be secured by way of Joint Equitable Mortgage by deposit of title
deeds of certain immovable properties and hypothecation over movable assets
of the Company, both present and future, subject to prior charges of the
Company's Bankers on specified movable assets for Working Capital
requirements. Sales Tax Loan by way of deferred sales tax benefit on the
expansion of capacity is secured by way of Joint Mortgage by deposit of title
deeds on certain immovable properties ranking pari-passu with existing
lenders. The amount is payable in equal instalments over a period of 5 years
starting from 1st April, 2004. Working Capital Loans from Banks are secured
by hypothecation of all current assets of the Company. Further such loans
from Banks are also secured by charge on certain immovable properties,
subject to prior charges in favour of Financial Institutions, Banks and/or Trustees
for Debentures created/to be created in respect of any existing/future
financial assistance/accommodation which has been/may be obtained by the
Company. Securities as mentioned in Note 1 and some of the Securities as
mentioned in Notes 2 and 3 rank pari-passu. Vehicle loans from Banks are
secured by way of hypothecation of the vehicles financed. |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Price Waterhouse Chartered
Accountants |
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Address : |
Plot No. Y-14, Block
EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata – 700
091, West Bengal, India |
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Memberships : |
Confederation of
Indian Industry |
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Joint Venture
Company: |
Ø
Gustav Wolf
Speciality Cords Limited Ø
Pengg Usha Martin
Wires Private Limited Ø
Ccl Usha
Martin Stressing Systems Limited Ø
Dove
Airlines Private Limited |
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Associates/Subsidiaries : |
Ø
Usha Martin
International Limited Ø
Usha Martin
American Inc. Ø
Usha Martin
UK Limited Ø
Usha Martin
Scandanavia A/S Ø
UMICOR
Africa (Pty.) Limited Ø
European
Management And Marine Corporation Limited Ø
EMM Caspian
Limited Ø
E.M.M
Kazakhstan Limited Ø
UMICOR Ropes
(Pty.) Limited Ø
Usha Siam
Steel Industries Public Company Limited Ø
Brunton Shaw
UK Limited Ø
Usha Martin
Singapore Pte. Limited Ø
Burnton Wolf
Wire Ropes FZCO. Ø
UM Cable
Limited Ø
Usha Martin
Holdings Limited Ø
Usha Martin
Australia Pty Limited Ø
Brunton Shaw
America Inc. |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity shares |
Rs. 5/- each |
Rs. 500.000 millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 50/- each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
47873356 |
Equity
shares |
Rs. 5/- each |
Rs. 239.366
millions |
|
Add |
Share forfeited |
|
Rs. 0.678
million- |
|
|
|
Total |
Rs. 240.044 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
240.045 |
221.920 |
185.801 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
6936.730 |
5605.048 |
4321.939 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7176.775 |
5826.968 |
4507.74 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7441.398 |
6717.748 |
7661.952 |
|
|
2] Unsecured Loans |
52.340 |
158.367 |
597.349 |
|
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TOTAL BORROWING |
7493.738 |
6876.115 |
8259.301 |
|
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DEFERRED TAX LIABILITIES |
1434.331 |
1335.064 |
1076.817 |
|
|
EQUITY WARRANTS |
33.278 |
88.740 |
0.000 |
|
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TOTAL |
16138.122 |
14126.887 |
13843.858 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9000.079 |
8847.172 |
8501.988 |
|
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Capital work-in-progress |
1970.586 |
695.615 |
435.770 |
|
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INVESTMENT |
1600.805 |
1525.755 |
1395.403 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3390.551
|
2621.667 |
2840.534 |
|
|
Sundry Debtors |
2269.104
|
1982.492 |
2513.970 |
|
|
Cash & Bank Balances |
370.805
|
517.489 |
389.655 |
|
|
Other Current Assets |
260.942
|
225.640 |
195.738 |
|
|
Loans & Advances |
2119.931
|
1648.665 |
2100.403 |
|
Total
Current Assets |
8411.333
|
6995.953 |
8040.300 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4612.543
|
3769.487 |
4413.061 |
|
|
Provisions |
262.565
|
210.109 |
176.380 |
|
Total
Current Liabilities |
4875.108
|
3979.596 |
4589.441 |
|
|
Net Current Assets |
3536.225
|
3016.357 |
3450.859 |
|
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|
|
|
|
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MISCELLANEOUS EXPENSES |
30.427 |
41.988 |
59.838 |
|
|
|
|
|
|
|
|
TOTAL |
16138.122 |
14126.887 |
13843.858 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
14086.047 |
12317.878 |
11908.518 |
|
|
Other Income |
143.261 |
94.846 |
0.000 |
|
|
Total Income |
14229.308 |
12412.724 |
11908.518 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1383.960 |
1007.385 |
582.759 |
|
|
Provision for Taxation |
369.200 |
357.744 |
174.025 |
|
|
Profit/(Loss) After Tax |
1014.760 |
649.641 |
408.734 |
|
|
|
|
|
|
|
|
Export value |
3657.376 |
3279.154 |
NA |
|
|
|
|
|
|
|
|
Import Value |
2368.032 |
2024.589 |
2.137 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material
Consumed |
5816.061 |
5250.697 |
|
|
|
Purchases of general Merchandises |
15.302 |
9.616 |
|
|
|
Increase/(Decrease)
in Finished Goods |
[238.579] |
[155.097] |
|
|
|
Manufacturing,
Selling and Administrative expenses |
5801.012 |
4850.660 |
11325.759 |
|
|
Interest |
762.804 |
730.996 |
|
|
|
Depreciation
& Amortization |
762.804 |
760.996 |
|
|
|
Other
Expenditure |
0.000 |
0.000 |
|
|
Total Expenditure |
12895.136 |
11405.732 |
11325.759 |
|
QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
|
Type
|
2nd
Quarter |
1st
Quarter |
|
Sales Turnover |
3892.000 |
3709.800 |
|
Other Income |
16.300 |
59.600 |
|
Total Income |
3908.300 |
3769.400 |
|
Total Expenditure |
3049.500 |
2934.300 |
|
Operating Profit |
858.800 |
835.100 |
|
Interest |
192.400 |
175.300 |
|
Gross Profit |
666.400 |
659.800 |
|
Depreciation |
184.100 |
184.600 |
|
Tax |
123.700 |
175.600 |
|
Reported PAT |
358.600 |
322.200 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.11 |
1.46 |
1.94 |
|
Long Term Debt-Equity Ratio |
0.96 |
1.26 |
1.58 |
|
Current Ratio |
1.13 |
1.14 |
1.13 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
1.02 |
0.93 |
0.95 |
|
Inventory |
5.20 |
4.89 |
4.89 |
|
Debtors |
7.36 |
5.95 |
5.83 |
|
Interest Cover Ratio |
2.79 |
2.22 |
1.69 |
|
Operating Profit Margin(%) |
18.67 |
19.39 |
16.96 |
|
Profit Before Interest And Tax Margin(%) |
13.79 |
13.70 |
11.35 |
|
Cash Profit Margin(%) |
11.36 |
10.55 |
8.87 |
|
Adjusted Net Profit Margin(%) |
6.49 |
4.86 |
3.26 |
|
Return On Capital Employed(%) |
15.81 |
14.44 |
11.08 |
|
Return On Net Worth(%) |
15.61 |
12.57 |
9.30 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
Dividend
The Board of
Directors recommends a dividend at the rate of 75% per cent on the equity
shares of the Company for the year ended 31st March 2007 amounting to Rs. 219.600
millions., including dividend tax, surcharge and cess @ 16.995%. All the
existing equity shares, including 58,00,000 shares issued on conversion of
warrants in terms of shareholders approval, will be eligible for such dividend.
Review of
Operations
During the year
under review, the Company achieved net turnover of Rs. 14086.000 millions. as
against Rs. 12317.900 millions. in the previous year, higher by 14.4%. The
gross sales before adjusting inter divisional sales was Rs. 20366.500 millions,
registering a growth of 15.7% over the previous year.
The Company has
achieved profit before tax of Rs. 1384.000
millions. as against Rs. TOO.740.000 millions., higher by 37.4% and net
profit of Rs. 1014.800 millions., as against Rs. 649.700 millions. in the previous
year, higher by 56.2%. The collective turnover of the subsidiaries (without
inter company/division sales) stood at Rs. 923.700 millions. Which is higher by
8.3% over the previous year. The consolidated net turnover (net of excise duty
and inter company/division sales) increased 9.2% to Rs. 19647.100 millions. The
consolidated profit before tax and profit after tax moved up by 43.3% and 62.5%
to Rs. 1829.200 millions. And Rs. 1377.800 millions. respectively.
Subsidiaries
The wire rope
manufacturing plant being set up by Brunton Shaw Americas Inc., a subsidiary
jointly promoted by the Company along with Usha Martin International Limited.
is under implementation and is expected to commence production in the first
quarter of financial year 2007-08. The commissioning activity has started from
early May 07. The Statement required under Section 212 of the Companies Act,
1956 in respect of subsidiaries of the Company is annexed to this Report. The
Company has, vide letter No. 47/205/2007-CL-lli dated 10th May, 2007, received
approval from Ministry of Company Affairs, Government of India for exemption
from annexing the accounts and other documents pertaining to the subsidiaries,
under Section 212(8) of the Companies Act, 1956. U M Cables Limited., the only
Indian subsidiary company, an unlisted one, is not a material subsidiary (in
terms of Clause 49 of the Listing Agreement) requiring appointment of an
independent director of the
Company, as
director of this Company.
Business Outlook
The Company is
positive on business outlook in the coming years. With the completion of
expansion of Speciality Steel production and value added products, and
with full integration with Captive iron ore, coal and power in next 2 years,
the Company expects rapid growth in financial performance in coming years. The
Company has achieved meaningful results from its overseas investments and it is
planning to strengthen its manufacturing, distribution and service network
globally particularly in Europe, USA and South East Asia.
Steel Business
The Steel business
accounts for 56.9% of gross activity level of the Company and 45.0% of reported
turnover. This business as a whole achieved a turnover of Rs. 10102.700
millions. In the year under review, as against Rs. 8978.200 millions. in the previous
year, higher by 12.5%, due to volume growth.
Usha Alloys and
Steel Division (UASD) has recorded a turnover of Rs. 9692.000 millions, against
Rs. 8978.200 millions. in the previous year, higher by 7.9%. However, the
reduced gross profit margin from 21.4% in the previous year to 9.2%, in the
year under review, was on account of lower export gains and higher cost of
alloys and fluxes even after neutralising gains of captive iron ore supplies.
Steel sector has witnessed softer prices of finished products in first half of
the year bur the trend reversed by end of the year. The export turnover of
steel business remained at Rs. 1022.800 millions. in the year under review
against Rs. 1010.400 millions., with marginally higher growth of 1.2%. The
lower growth was on account of meeting requirements of domestic customers and
for higher captive value addition products.
During the year
under review, inter divisional transfers for captive use has gone upto Rs.
3977.300 millions. against Rs. 3282.500 millions, showing an increase of 21.1%.
After commencement of iron ore mining in the previous year, the Company has
stabilised and could attain allotted capacity, in steel business, the Company
has gradually achieved o fair level of integration with iron ore mining activities
by increasing use of its own iron ore. The Company hopes to increase captive
use to yet higher levels during the current year. The Company has also
applied for
enhancement of iron ore mining capacity.
The coal mining
activities are likely to commence by 4th quarter of current
financial year. For growth of steel business, the Company has undertaken capex
programme to set up 2nd Mini Blast Furnace, Blooming Mill, 30 MW Captive Power
Plant, 3rd Steel Melt Shop including Electric Arc Furnace, Ladle
Furnace and Vacuum Degassing, Bioom
Caster, two DRI plants with related auxiliaries and utility facilities. The
implementation of these projects is progressing satisfactorily.
During the year
under review, the Company has also taken over a steel rolling plant in Agra,
with an annual capacity for manufacturing 72000 tonnes of construction steel.
This division, named as Construction Steel Division, achieved a turnover of Rs.
410.800 millions. since acquisition in December 06. The gross profit margin was
4.0% during this period. This plant is expected to help the Company to cater to
growing market for construction steel sector in north India.
Wire Ropes and
Speciality Products Business
The Wire Ropes and
Speciality Products business accounted for 42.6% of gross activity level and
54.3% of reported turnover of the Company. This business achieved turnover of
Rs. 7854.200 millions. As against Rs. 6573.700 millions. in the previous year,
registering a growth of 1 9.5% over the previous year. The gross profit margin
improved to 14.3% from 13.2%. The export turnover of this business has grown by
14.5% to Rs. 2680.300 millions. During the year under review as against Rs.
2341.400 millions. in the previous year. During the year under review, Wire Rope
and Speciality Product Divison at Rafchi and North Division at Hoshiarpur have:
a) developed! dolphin brand fishing ropes with enhanced performance, which has
been well received by fishing industry, b) improved performance of plastic
valley filled mining ropes to 1 200 hrs from level of 350 hrs, c) developed
copper coated bailing wire to replace conventional galvanised wire, and d)
developed copper coated crimping wire for export market,
After getting
"2005 Award for TPM Excellence-First Category" from Japan institute
of Plant Maintenance (JIPM), the first by any wire and wire rope making company
in India, Wire Rope and Speciality Product Division at Ranchi is gearing itself
for audit and accredition of TPM phase II award.
Cable Business
The cable business
under UM Cables Limited, a wholly owned Indian subsidiary of the Company,
achieved a gross turnover of Rs. 1814.600 millions against Rs. 2123.800
millions in the previous year. Profit before tax reduced to Rs. 27.200
millions. from Rs. 51.200 millions in the previous year. Inspite of this
company now being the largest producer of jelly filled telephone cables in
India, the reduced level of performance is on account of lower demand of
telecommunication cables partly on the back of continuing higher prices of
copper. However, this company has achieved growth of 90.1 % in exports at Rs.
423.800 millions, which accounted for 23.4% of turnover as against 10.5% in the
previous year. This company is now the most significant exporters of
telecommunication cables. UM Cables's continued focus of diversified customer
base, in domestic and international markets, remains its' competitive edge,
which is expected to enable this
Company to perform
better than peers in the industry.
International
Business
Gross level of activities
of overseas subsidiaries has increased by 15.9% to Rs. 7422.800 millions in the
year under review from Rs. 6402.400 millions. in the previous year. The
international business accounted for 27.3% of consolidated gross level of
activity of the Company. The Company has presence in international markets
through
manufacturing and distribution subsidiaries located in different parts of the
world.
Usfia Martin
/nternafiona/ Limited (UMIL):
UMIL, a wholly
owned subsidiary of the Company, is having its' operations in UK and European
markets through Usha Martin UK Limited. (a wholly owned subsidiary of UMIL),
which has facilities ranging from manufacturing, distribution and providing end
use solutions to off shore oil and gas sector. Consolidated turnover of UMIL,
during the year, was GBP 36.0 Mn. against GBP 37.3 Mn. in the previous year.
The marginally lower reported turnover is due to net effect of loss of turnover
on account of sale of its' subsidiary namely Usha Martin Scandinavia A/S
(UMScan) in February 2006 and regrouping of some of other subsidiaries with the
Company. UMIL reported consolidated net profit of GBP 1.6 Mn. against GBP 2.7
Mn. (which included extra ordinary income of GBP 2.2 Mn. on sale of UMScan) in
the previous year.
Brunton Shaw
Americas Inc (BSAI):
BSAI, set up as
wholly owned subsidiary of the Company, jointly with UMIL, is putting up wire
rope manufacturing
facilities in
United States of America. BSAI is expected to commence production in the first
quarter of current financial year.
Usha Martin
Americas Inc (UMAI):
During the year
under review, UMAI, a wholly owned subsidiary of the Company, achieved a
turnover and profit after tax of US $ 22.2 Mn. and US $ 1.0 Mn. against US $ 20.3 Mn. and US $ 0.4 Mn in the
previous year, registering growth of 9.5% and 160.4% respectively.
FIXED ASSETS
Ø
Land and Site
Development
Ø
Freehold
Ø
Leasehold
Ø
Buildings
Ø
Plans and
Machinery
Ø
Electrical
Installation
Ø
Water
Treatment
Ø
Office
Equipment
Ø
Vehicles
Ø
Computer
Software’s
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.39.41 |
|
UK Pound |
1 |
Rs.81.37 |
|
Euro |
1 |
Rs.58.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
56 |
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 |
|