MIRA
INFORM REPORT
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Report Date : |
04.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
IMPEX FERRO TECH LIMITED |
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Registered Office : |
3/5, Chittaranjan Avenue, 4th Floor, Kolkata 700012, 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 : |
07.06.1995 |
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Com. Reg. No.: |
071996 |
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CIN No.: [Company
Identification No.] |
L27101WB1995PLC071996 |
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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 : |
Manufacturers of Ferro Alloys. |
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 2267000 |
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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 reputed company having fine
track. Trade relations are
fair. Business is active. Payments are reported as 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 : |
3/5, Chittaranjan Avenue, 4th Floor, Kolkata 700012, West
Bengal, India |
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Tel. No.: |
91-33-22119805/6/7 |
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Fax No.: |
91-33-22117871 / 22112154 |
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E-Mail : |
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Website : |
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Factory 1 : |
Kadavita Dendua Road, P. O. Kalyaneshwari, P. S. Kulti, Burdwan, West
Bengal, India |
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Tel. No.: |
91-341-2522248 / 2522866 |
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Fax No.: |
91-341-2522961 |
DIRECTORS
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Name : |
Mr. Vimal Kumar Patni |
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Designation : |
Chairman |
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Name : |
Mr. Suresh Kumar Patni |
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Designation : |
Managing Director |
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Name : |
Mr. Virendra Kumar Jain |
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Designation : |
Director |
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Name : |
Mr. Chatter Singh Dugar |
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Designation : |
Director |
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Name : |
Mr. Prem N. Khandelwal |
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Designation : |
Director |
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Name : |
Mr. P. K. Agarwal |
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Designation : |
Company Secretary |
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Name : |
Mr. Krishna Kumar Chanani |
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Designation : |
Director |
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Name : |
Mr. Ajit Kumar Patni |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Ferro Alloys. |
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Products : |
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Exports : |
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Countries : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Suppliers : |
v Manganese Ore India Limited, 3, Mount Road Extension, Post Box No. 34, Nagpur – 440001, Maharashtra v Orissa Manganese and Minerals Private Limited, 9, Esplanade Mansion, Government Place East, Kolkata – 700069, West Bengal v The Orissa Mining Corporation Limited, Barbil – 758035, Distt. Keonjhar v Rungta Mines Limited, Rungta House, Post Chaibasa – 833201, Jharkhand v Shivam Traders, Daruka House, Jharia - 828111 |
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Customers : |
v Jindal Strips Limited, Delhi Road, Hisar – 125005 v Rashriya Ispat Nigam Limited, Vishakhapatnam Steel Plant, Visakhapatnam – 530031 v Tata Engineering and Locomotive Company Limited, Foundry Division, Chinchwad, Pune – 411018, Maharashtra v The Tata Iron and Steel Company Limited, Burnpur Works, Burnpur, Distt. Burdwan, West Bengal |
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No. of Employees : |
150 |
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Bankers : |
v Bank of Baroda, Chittaranjan Avenue (South) Branch, 33, Chittaranjan Avenue, Kolkata – 700011, West Bengal, India v Punjab National Bank, 31, Chittaranjan Avenue, Kolkata – 700011, West Bengal, India v State Bank of India, Industrial Finance Branch, 11, Dr. U. N. Brahmachari Street, Kolkata – 700017, West Bengal, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Jaykishan Chartered Accountants |
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Address : |
12, Ho Chi Minh Sarani, Suit No. 2-D & 2-E, 2nd Floor, Kolkata – 700071, West Bengal, India |
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Tel. No.: |
91-33-22824942/43/74 |
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Associates/Subsidiaries : |
Manufacturer of Silica Ramming Mass and B P Sets (Refractories) |
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Group Companies: |
·
Impex Metal And Ferro Alloys Private Limited
·
Vikash Metal And Power Limited ·
Rohit Ferro-Tech Limited ·
Impex
Infotech Limited ·
Ankit
Metal And Power Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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26000000 |
Equity Shares |
Rs. 10/- each |
Rs. 260.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 250.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
250.000
|
250.000
|
250.000
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
203.400
|
174.500
|
126.000
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
453.400 |
424.500 |
376.000 |
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LOAN FUNDS |
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1] Secured Loans |
474.900
|
358.200
|
227.800
|
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2] Unsecured Loans |
19.500
|
0.000
|
0.000
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TOTAL BORROWING |
494.400 |
358.200 |
227.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
947.800 |
782.700 |
603.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
346.200
|
359.600
|
368.500
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Capital work-in-progress |
35.600
|
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 |
666.400
|
467.500
|
345.200
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Sundry Debtors |
129.300
|
148.000
|
59.000
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Cash & Bank Balances |
66.100
|
75.600
|
35.600
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
172.400
|
83.800
|
44.400
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Total
Current Assets |
1034.200
|
774.900 |
484.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
427.000
|
327.300
|
253.100
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Provisions |
44.900
|
30.100
|
3.300
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Total
Current Liabilities |
471.900
|
357.400 |
256.400 |
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Net Current Assets |
562.300
|
417.500 |
227.800 |
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MISCELLANEOUS EXPENSES |
3.700
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5.600
|
7.500
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TOTAL |
947.800 |
782.700 |
603.800 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1687.800
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1654.400
|
1407.500
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Other Income |
34.600
|
49.000
|
21.200
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Total Income |
1722.400 |
1703.400 |
1428.700 |
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Profit/(Loss) Before Tax |
47.500
|
73.100
|
65.600
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Provision for Taxation |
18.600
|
24.600
|
19.900
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Profit/(Loss) After Tax |
28.900
|
48.500
|
45.700
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
[39.900]
|
[32.700]
|
12.200
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Raw Materials |
1038.000
|
960.700
|
663.500
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Excise Duty |
56.700
|
97.600
|
109.600
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Power & Fuel Cost |
383.500
|
427.500
|
413.300
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Other Manufacturing Expenses |
27.300
|
29.700
|
26.500
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Employee Cost |
8.300
|
6.100
|
5.100
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Selling and Administration Expenses |
94.900
|
58.800
|
58.700
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Miscellaneous Expenses |
12.000
|
5.900
|
2.500
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Interest & Financial Charges |
73.000
|
56.000
|
55.000
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Depreciation |
21.100
|
20.700
|
16.700
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Total Expenditure |
1674.900 |
1630.300 |
1363.100 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
540.300
|
570.600
|
602.000
|
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Other Income |
0.000
|
6.100
|
2.800
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Total Income |
540.300
|
576.700
|
604.800
|
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Total Expenditure |
507.700
|
535.800
|
554.600
|
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Operating Profit |
32.600
|
40.900
|
50.200
|
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Interest |
13.900
|
16.100
|
19.500
|
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Gross Profit |
18.700
|
24.800
|
30.700
|
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Depreciation |
5.300
|
5.500
|
5.400
|
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Tax |
4.700
|
6.600
|
8.800
|
|
Reported PAT |
8.700
|
12.700
|
16.500
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.97 |
0.73 |
0.75 |
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Long Term Debt-Equity Ratio |
0.41 |
0.33 |
0.36 |
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Current Ratio |
1.37 |
1.34 |
1.26 |
|
Fixed Assets |
3.67 |
3.67 |
3.81 |
|
Inventory |
2.98 |
4.07 |
5.26 |
|
Debtors |
12.17 |
15.98 |
30.77 |
|
Interest Cover Ratio |
1.72 |
2.31 |
2.19 |
|
Operating Profit Margin(%) |
8.69 |
9.05 |
9.75 |
|
Profit Before Interest And Tax Margin(%) |
7.44 |
7.80 |
8.57 |
|
Cash Profit Margin(%) |
3.15 |
4.18 |
4.43 |
|
Adjusted Net Profit Margin(%) |
1.90 |
2.93 |
3.25 |
|
Return On Capital Employed(%) |
14.59 |
18.80 |
22.35 |
|
Return On Net Worth(%) |
7.29 |
12.12 |
14.74 |
LOCAL AGENCY
FURTHER INFORMATION
Financial and
Operational Performance
The operations of the Company during the year under review has resulted
in a profit before depreciation, interest and taxation (PBDIT) of Rs, 130.355
Millions as compared to Rs. 137.193 Millions in previous year. The Company has
achieved a turnover of Rs. 1705.731 Millions against Rs. 1700.731 Millions in
previous year. During the year the Company has produced 34,438.940 MT of Ferro
Alloys as compares to 38,149.630 MT in previous year.
The reduction in the output was due to interruption in the power supply to the
submerged arc furnaces on account of failure of furnace transformers and the
Company has since taken action to restore the power supply to the furnaces by
replacing / refurbishing the deficiency in electrical components. All the four
furnaces have since resumed normal operation,
Expansion of production Capacity and Power Plant
The Directors of the Company are pleased to inform you that implementation of
the power plant of 30 MW capacity and the 7.5 MVA Submerged Arc Furnace is in
progress.
The consortium bankers of the Company have sanctioned a term loan of Rs.
857.500 Millions for the project and the balance amount of Rs. 569.500 Millions
is planned to be met through further equity infusion into the Company,
unsecured loan and internal cash accruals.
The Company has applied for necessary approvals required for the implementation
of the project. The basic engineering, civil work and structural fabrication
has progressed significantly. The Company has released orders for equipments
having long lead time for their supply, The delivery of equipment has commenced
and their installation at project site has been taken up by the respective
contractors.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Development
The Company
manufactures Ferro Manganese and Silico Manganese which are primarily used as
alloying elements in the production of steel and modifying its strength,
ductility, hardness and corrosion resistance. Ferro Alloys are also used to
remove unwanted impurities from steel such as phosphorous or sulphur.
The growth of
Ferro Alloys industry is directly linked with the growth of Iron and Steel
Industry which in turn depend upon its user industry i.e. infrastructures and
construction, automobiles, consumer durables etc. About 90% of world Ferro
Alloy production is consumed by the Iron and Steel Industry with balance 10%
being consumed by engineering sector. The Indian Steel Industry is progressing
well over past three years. During the period 2004-2005 to 2006-2007 the
average compounded growth rate of steel production in the country is 11.1% per
annum and the consumption growth during the some period is 11.3%. The Ferro
Alloys industry has registered strong growth in tune with trend of growth in
Iron & Steel Sector driven by its consuming industry.
Opportunity and Threats
The Company has
established itself as a leading Ferro Alloys manufacturer in India and in the
international markets. Having established its presence in Europe, the Far East
Asian Countries the Company is making inroads for export of its products to
USA, China, Latin America. This will widen the opportunity for the Company to
expand its export base.
The new
entrants and cheap imports continue to be a threat to the Company The
volatility in the major input prices i.e. manganese ore and cost of power holds
threat of increase in cost of production.
However, with
the availability of all inputs within the country and compressing cost at all
the possible area including installation of its own captive power plant, the
Company is confident in maintaining its position.
Outlook
With the significant growth in the automobiles,
white goods, construction and infrastructure sector the pace of production and
consumption of steel is expected to grow and the growth trend promises a bright
outlook for Ferro Alloys industry. As per the forecast of The International
Iron and Steel Institute, the Global consumption of steel will grow by 5.9% in
2007 and 6.1% in 2008, driven by the strong demand from Asia, Africa and South
America. The Apparent demand of steel is also likely to increase by 65 MMT in
2007 and 72 MMT in 2008 so as to reach a level of 1250 MMT in 2008. In the line
with the overall high growth trend in iron and steel sector the demand for
Ferro Alloys is expected to remain buoyant.
Risk and concern
In the normal
course of business the Company is exposed to external risk such as fluctuation
in demand, competition from other market players, risk arising from supply
chain glitches, internal risk like variation in cost, financial risk of adverse
variation in interest rate and fluctuation in foreign exchange rates. All the
key function and division heads are independently responsible to monitor the
risk associated in their respective area.
Segment-wise Performance
The Company operates
in Iron and Steel Industry comprising of industry intermediates like Ferro
Manganese, Silico Manganese and Iron & Steel products. The key financial of
the segments are given in notes no. B.9 of Schedule 18 to the Notes on
Accounts.
AS PER WEBSITE
DETAILS:
GROUP
IMPEX Group is one of the leading manufacturer, trader and marketer of
Ferro Alloys, Sponge Iron and Iron & Steel related products. In addition,
the Group has also diversified its activities to Cements, I.T.Services, etc. It
was founded in 1996 at a very small level incorporating Impex Ferro Tech
Limited and within few years with hardworking , honesty and under the dynamic
leadership of its promoters expanded in terms of chain of Companies resulting
in huge turnover, profitability and goodwill and becomes a remarkable Group
with continuing growth.To day Impex is a leading group in Ferro Alloys and Iron
& Steel related products due to its industrial base through effective
utilisation of money, materials, and manpower.
IMPEX METAL AND FERRO ALLOYS PRIVATE LIMITED
Impex Metals & Ferro Alloys Private Limited was
incorporated on 31.05.1991 and presently engaged in trading and importing of
Metals and Minerals.
VIKASH METAL AND POWER LIMITED
The Company was incorporated on 04.07.1996. and presently
engaged in the business of manufacturing of Sponge Iron. The Company is running
two module of 100 TPD capacity sponge iron plant at Parodia, District -
Purulia, West Bengal.
ROHIT FERRO-TECH LIMITED
Rohit Ferro Tech Ltd. was incorporated on 07.04.2000 and has
set up two submerged arc furnaces of 7.5 MVA to produce High Carbon Ferro
Chrome at Bishnupur, District - Bankura, West Bengal.The Company is also in the
process of setting up an another furnace of 9 MVA capacity to produce Ferro
Chrome.
IMPEX INFOTECH LIMITED
Impex Infotech Limited was incorporated on 03.12.2001 with
the object of carrying out business of software development and information
technology enabled services. Presently the Company is running a call center of
50 seat capacity at Kolkata.
ANKIT METAL AND POWER
LIMITED
Ankit Metal & Power Limited was incorporated on
07.08.2002 The Company is setting up 350 TPD plant of Sponge Iron at Jorehira,
Bankura District. The company is also planning to setup a 8.50 MVA power plant
at Orrisa.
Its product range includes:
v Ferro Manganese
v Silico Manganese
v Ferro Chrome
v Silica Ramming Mass and B P Sets (Refractories)
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. 42.53 |
|
UK Pound |
1 |
Rs. 83.44 |
|
Euro |
1 |
Rs. 66.18 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|