MIRA
INFORM REPORT
|
Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
UTTAM GALVA STEELS LIMITED |
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Registered Office : |
Uttam House, 69, P D ‘Mello Road, Mumbai – 400 009, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
29.03.1985 |
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Com. Reg. No.: |
11-35806 |
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CIN No.: [Company
Identification No.] |
L27104MH1985PLC035806 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMU03480B |
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PAN No.: [Permanent
Account No.] |
AAACU1710C |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges |
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Line of Business : |
Manufacturer of Galvanised Coils / Sheets and Cold Rolled Coils |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 36000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established
company having satisfactory track. Financial position is moderate. Payments
are slow but correct. Trade relations are fair. The company can be considered
normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Uttam
House, Carnac Bandar, 69, P D’mello Road, Mumbai – 400 009, Maharashtra |
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Tel. No.: |
91–22–23420557/23421968/56563500/23440440/
23413192 |
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Fax No.: |
91–22–23430765/23415025/23441383/56311949/
23434188 |
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Telex |
11-75909
UTAM IN |
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E-Mail : |
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Website : |
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Head
Office: |
Uttam
House, 69, P.D'Mello Road, Mumbai - 400 009 |
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International
Marketing: |
E-mail: export@uttamsteel.com Fax: 91-22-5631 1949 |
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Domestic
Marketing: |
Tel: 91-22-2341 3192 Fax:
91-22-2343 4188 |
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Factory 1 : |
Khopoli
- Pen Road, Village - Donvat, Taluka- Khalapur, District Raigad, Maharashtra,
India |
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Tel. No.: |
91-2192-278053/278055/278146 |
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Fax No.: |
91-2192-278143 |
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Factory 2 : |
Khopoli-Pali
Road, Village Dahivali, Taluka Khalapur, District Raigad, Maharashtra, India |
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Branches : |
Located
at : - ·
39,
Okhla Industrial Estate, New Delhi - 110 020, India Tel. No. 91-11-26848550
/ 2630435 Fax No. 91-11-26848555 ·
2,
Naresh Chandra Dutta Sarani, Sagar Estate, 4th Floor, Room No.
4, Kolkata - 700 001, West Bengal Tel. No.: 91-33-22201485 ·
#
213-214, Frutos Trade Centre, 2nd floor, SCRB Road, Fancy Bazar,
Guwahati - 781 001, Assam Tel. No.91-361-234594 ·
SC-1/8,
Kohinoor Castle, Mulla Road, Sangamwadi, Mumbai-Pune Road, Tel. 91-20-25818695 ·
White
House, 3rd Floor, Opp. Sandvik Asia Limited, Mumbai-Pune Highway,
Near Phugewadi Octroi Naka, Dapodi, Pune – 411 012, Maharashtra, India Tel – Fax No.: 91-20-27149238 ·
Chennai |
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Steel service centres : |
Located
at : ·
Mumbai,
Maharashtra ·
Kolkata,
West Bengal ·
New
Delhi ·
Kanpur,
Uttar Pradesh ·
Ghaziabad,
Uttar Pradesh ·
Guwahati,
Assam |
DIRECTORS
|
Name : |
Mr. Rajinder
K. Miglani |
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Designation : |
Chairman
cum Managing Director |
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Address : |
21-B,
Embassy Apartments, 46, Nepean Sea Road, Mumbai – 400 036 |
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Date of Birth /Age |
62
Years |
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Qualification : |
Graduate |
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Experience : |
42
Years |
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Date of Appointment : |
31.12.1998 |
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Last Employment |
Business |
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Name : |
Mr.
Praveen K. Miglani |
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Designation : |
Director |
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Other Directorship: |
Insco
Iron and Steels Limited |
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Brief Resume: |
He is
an industrialist and |
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Qualification: |
Graduate |
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Experienced: |
32
Years |
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Date of Appointment: |
29.03.1985 |
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Name : |
Mr.
P. G. Kakodkar |
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Designation : |
Director |
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Name : |
Mr.
Shirish T. Parikh |
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Designation : |
Director |
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Other Directorship: |
Frontline
Rolls, Forms Limited |
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Qualification: |
B.E.
(Civil) |
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Experienced: |
+49
Years |
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Date of Appointment: |
29.03.1985 |
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Name : |
Dr.
N. S. Datar |
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Designation : |
Director |
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Name : |
Mr.
Anuj Miglani |
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Designation : |
Deputy
Managing Director |
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Date of Birth /Age |
34 Years |
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Qualification : |
Mechanical Engineer from
Imperial College, Mumbai |
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Experience : |
13 Years |
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Date of Appointment : |
01.02.1995 |
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Name : |
Ms.
Shaila Sarpotdar |
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Designation : |
Nominee
(ICICI) |
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Name : |
Mr. S R Krishnaswamy |
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Designation : |
Nominee (LIC) |
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Name : |
Mr. Ankit Miglani |
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Designation : |
Director |
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Date of Birth /Age |
29 Years |
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Qualification : |
Graduate in Economics from
Wharton School U.S.A. |
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Experience : |
7 Years |
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Date of Appointment : |
29.01.2003 |
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Name : |
Mr. A K Mahendru |
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Designation : |
Director (Sales and Marketing) |
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Qualification: |
B. Tech, FIE and MIMA |
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Experienced: |
39 Years |
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Date of Appointment: |
01.04.1999 |
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Name : |
Mr. S G Tudekar |
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Designation : |
Director (Works) |
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Qualification: |
Graduate Engineer in Metallurgy |
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Experienced: |
46 Years |
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Date of Appointment: |
1998 |
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Name : |
Mr. V. D. Shinde |
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Designation : |
Director Nominee (IDBI) |
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Brief Resume: |
He has tenure of 30 Years with
Industrial Development Bank of India in various Departments and at present he
is working as General Manager (HRD) in IDBI. He has got vast experienced in Institutional
Finance. He has joined the Board on December 2006 |
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Name : |
Mr. G S Sawhney |
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Designation : |
Executive Director (Finance) and
CFO |
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Name : |
Mr. Kishor Naik |
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Designation : |
Director (Nominee – ICICI) |
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Name : |
Mr. S R Krishnaswamy |
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Designation : |
Director (Nominee LIC) |
KEY EXECUTIVES
|
Name : |
Mr. R. K. Agrawal |
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Designation : |
Vice President and Company Secretary |
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Name : |
Mr. Gursi Aran S Sawhney |
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Designation : |
Executive Director (Finance) and Chief Financial Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
Promoters’ holdings
|
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Indian
Promoters |
36913985 |
32.39 |
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Foreign
Promoters |
2714700 |
2.38 |
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Non promoter's holdings
|
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Mutual
Funds and UTI |
42400 |
0.03 |
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Banks,
Financial Institutions and Insurance Companies |
285211 |
0.25 |
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FIIs |
9660536 |
8.48 |
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Others
|
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Private
Corporate Bodies |
16791775 |
14.73 |
|
Indian
Public |
23832582 |
20.91 |
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NRIs
/ OCBs |
1710363 |
1.51 |
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Any
other |
163967 |
0.14 |
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Shares held by Custodians and against
which Depository Receipts have been issued |
21857924 |
19.18 |
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TOTAL |
113973443 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Galvanised Coils/Sheets and Cold Rolled Coils. |
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Products : |
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Exports : |
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Countries : |
·
Afghanistan ·
Angola ·
Argentina ·
Bangladesh ·
Burundi ·
Cambodia ·
Chile ·
Comoros ·
United
Arab Emirates ·
Ecuador ·
Eritrea ·
Ethiopia ·
Gambia ·
Ghana ·
Kenya ·
Lebanon ·
Liberia ·
Madagascar ·
Malaysia ·
Mauritius ·
Mozambique ·
Myanmar ·
Nepal ·
Nigeria ·
Paraguay ·
Peru ·
Philippines ·
Portugal ·
South
Africa ·
Senegal ·
Sri
Lanka ·
Sudan ·
Syria ·
Tanzania ·
Thailand ·
Togo ·
United
Kingdom ·
Uganda ·
Uruguay
·
Zimbabwe |
PRODUCTION STATUS
(As on 31.03.2008)
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Galvanised
Coils/Sheets / Slit Coils |
MT |
|
750000 |
338385 |
|
Colour
coated Coils / Sheets / Slit Coils |
MT |
|
90000 |
74710 |
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Cold
Rolled Coils / Sheets / Slit Coils |
MT |
|
900000 |
513905 |
GENERAL
INFORMATION
|
Customers : |
·
Hindustan
Petroleum Corporation Limited ·
Bharat
Petroleum Corporation Limited ·
Indian
Oil Corporation Limited |
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No. of Employees : |
4000 |
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Bankers : |
·
State
Bank of India Commercial Branch, Bombay
Samachar Marg, Mumbai – 400 023, Maharashtra ·
Canara
Bank Bombay Samachar Marg, Mumbai –
400 023, Maharashtra, India ·
Punjab
National Bank ·
Bank
of Baroda ·
Indian
Overseas Bank ·
ICICI
Bank Limited ·
Punjab
and Maharashtra Co-op Bank Limited ·
IDBI
Bank Limited |
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Facilities : |
Notes: Serial number of Notes correspond to
serial numbers of Loans mentioned earlier. (1) a) Term Loans availed from ICICI, IDBI,
LIC ,IFCI IIBI,UII,GIC,Canara Bank, IOB, BOB, and Corporation Bank, Union
Bank and Allahabad Bank ranking pari passu inter-se are secured by mortgage
of all immoveable properties and hypothecation of all moveable properties
including moveable machineries, machinery spares, tools and
accessories, both present and future except Packing Machine supplied by
PESMEL, Finland. b) i) Foreign Currency / ECB Loan of USD
0.272 Millions equivalent to Rs. 10.900 millions from IDBI: USD 6.25 millions
equivalent to Rs.250.700 millions from Bank of India: USD 3.125 millions
equivalent to Rs.125.300 millions from Syndicate Bank; USD 50 millions
equivalent to Rs.2005.500 millions syndicated by ICICI Bank, are secured by
mortgage of all immoveable properties and hypothecation of all moveable
properties including moveable machineries, machinery spares, tools and
accessories both present and future, except Packing Machine supplied by
PESMEL, Finland. ii) ECA of USD 10.006 millions (Nil) sanctioned
by Nordea Bank and disbursed by them during the year amounting to USD 3.3354
millions (Nil) equivalent to Rs.133.800 millions (Nil) is secured by
hypothecation of Packing Machine supplied by PESMEL, Finland. (2 )
Non Convertible Debentures of Rs.13.000 millions are secured by: (a)First
mortgage and charge on the movable and immovable assets present and futures
ranking Pari-passu subject to the prior charges on specific moveable assets
created or to be created in favour of bankers for working capital borrowings. (b)
Personal Unconditional Irrevocable Guarantee of two directors. (c)
Pari-Passu Joint Pledge of Promoters Shareholding with Other Term Lenders. Redemption : Commencing from
15th April, 2004 to 15th January, 2009. (3)
Optionally Fully Convertible Bonds are convertible into Equity / Preference
Shares at the option of the holder at a future date and are secured by : Redemption
: (a)
First mortgage and charge on the movable and immovable assets present and
futures ranking Pari-passu subject to the prior charges on specific moveable
assets created or to be created in favour of bankers for working capital
borrowings. (b)
Personal Unconditional Irrevocable Guarantee of two directors. Redemption : Commencing from
15th June, 2010 to 15th June, 2014. (4)
Loans from banks on cash credit account are secured by: (i)
Hypothecation of all tangible, moveable assets such as raw materials,
work-in-process, finished goods, stock in transit and book debts and (ii)
The Second Charge on fixed assets of the company as per Registration entries
of Form no. 8 and 13 vide document Serial No.449 dated 18th May, 2006. (5)
a) All the above loans are secured by Personal Guarantees of two Directors. (b)
21224700 equity shares held by the promoters are pledge by them against term
loan amounting to Rs.478.900 millions availed by the Company.
The Company has availed sales tax loan
under Deferral Sales Tax Scheme, from 1st July, 2006, which is
repayable from 11th to 15th Year. The Company has issued
Series ‘A’ US $ 24 Millions and Series ‘B’ US $ 20 Millions 2 percent
Convertible Bonds of face value of US $ 1000 aggregating to US $ 44 Millions. (i) As per the terms of the issue, the
bonds are convertible at any time on or after September 18, 2005 and upto the
close of business on July 31, 2010 into newly issued, ordinary shares at a
reset conversion price of Rs.45.12 per Share with a fixed rate of exchange on
conversion of Rs.43.53 = US $ 1. The conversion price will be subject to
certain adjustment in certain circumstances. Out of this, bonds worth of USD
9 millions (USD 2.5 millions from Series ‘A’ and USD 6.5 millions from Series
‘B’) have been converted into equity shares during the year. (ii) Further, the bonds may subject to
certain conditions be redeemed in whole at the option of the Company at any
time on or after August 10, 2008 at their Early Redemption Amount, (iii) The Series B bonds may be redeemed,
in whole or in part at the option of a Bondholder on August 9, 2008 subject
to satisfaction of certain conditions, at 117.25 per cent of their principal
amount, (iv) Unless previously converted, redeemed
or repurchased and cancelled, the bonds will be redeemed on August 10, 2010
at 130.97 per cent of their principal amount. (v) In view of the uncertainty of
redemption, premium on redemption of FCCB has not been provided in this
accounts, (vi) These bonds are listed on Singapore Stock Exchange. |
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
Mr. Yogesh
B. Mehta Chartered
Accountant |
|
Address : |
401/402, Nand Prem Shopping Centre, Junction of
Nehru Road & M G Road, Vileparle (East), Mumbai - 400 057, Maharashtra |
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Statutory Auditors : |
Prakkash
Muni and Associates Chartered
Accountants |
|
Name : |
Mumbai |
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Internal Auditors : |
KPMG |
|
Name : |
Mumbai |
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Memberships: |
EEPC,
WTC, COSRMA |
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Associates/Subsidiaries : |
·
Uttam
Agro Foods (India) ·
Uttam
Flour Mills Limited ·
Frontline
Roll Forms Limited ·
Golden
Greens Golf and Resorts Limited ·
Uttam
Exports Private Limited A-40, Mohan Co-operative Industrial Area, Main
Mathura Road, New Delhi – 110 004 ·
Uttam
Investments Private Limited Mulji House, Ground Floor, Broach Street, Mumbai
– 400 009, Maharashtra ·
Shree
Uttam Steel and Power Limited ·
Uttam
Galva Metallics Limited ·
MKR
International Private Limited ·
Growell Mercantile Private Limited ·
Texturing Technology Private Limited |
CAPITAL STRUCTURE
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
169000000 |
Equity Shares |
Rs.10/- each |
Rs.1690.000 millions |
|
6000000 |
Redeemable Cumulative
Preferences Shares |
Rs.10/- each |
Rs.60.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.1750.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
113973443 |
Equity Shares |
Rs.10/- each |
Rs.1139.700
millions |
|
1500000 |
12% Optionally Convertible Cumulative
Redeemable Preference Shares |
Rs.10/- each |
Rs.15.000 millions |
|
|
|
|
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Total |
|
Rs.1154.700 millions |
Note :
During the year the Company has issued 8682846
Equity Shares of Rs.10/- each at a premium of Rs.35.12 on conversion of FCCB,
equivalent to USD 9 Millions.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1154.700 |
1082.900 |
879.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5955.700 |
4412.000 |
2557.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7110.400 |
5494.900 |
3436.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8302.300 |
7633.400 |
6080.300 |
|
|
2] Unsecured Loans |
2179.200 |
2196.000 |
2489.900 |
|
|
TOTAL BORROWING |
10481.500 |
9829.400 |
8570.200 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17591.900 |
15324.300 |
12006.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13197.300 |
7955.200 |
6967.900 |
|
|
Capital work-in-progress |
2785.700 |
4333.300 |
1393.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
511.300 |
31.300 |
01.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8479.800
|
5271.400 |
3305.500
|
|
|
Sundry Debtors |
2416.500
|
2434.300 |
1170.300
|
|
|
Cash & Bank Balances |
305.800
|
228.100 |
52.900
|
|
|
Other Current Assets |
13.000
|
1867.200 |
1953.300
|
|
|
Loans & Advances |
4377.900
|
4279.900 |
3677.400
|
|
Total
Current Assets |
15593.000
|
14080.900 |
10159.400 |
|
|
Less : CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
14349.900
|
10943.600 |
6441.800
|
|
|
Provisions |
145.500
|
132.800 |
73.300
|
|
Total
Current Liabilities |
14495.400
|
11076.400 |
6515.100
|
|
|
Net Current Assets |
1097.600
|
3004.500 |
3644.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17591.900 |
15324.300 |
12006.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
31558.400 |
25752.900 |
18970.600 |
|
|
Other Income |
21.100 |
44.000 |
96.000 |
|
|
Total Income |
31579.500 |
25796.900 |
19066.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1243.300 |
1134.800 |
816.600 |
|
|
Provision for Taxation |
4.600 |
4.200 |
|
|
|
Profit/(Loss) After Tax |
1238.700 |
1130.600 |
743.300 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Exports on FOB Value |
15102.600 |
13801.500 |
9896.800 |
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
14930.700 |
9690.400 |
5233.200 |
|
|
Stores & Spares |
100.000 |
173.100 |
|
|
|
Capital Goods |
166.500 |
408.400 |
|
|
Total Imports |
15197.200 |
10271.900 |
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
26096.600 |
19563.600 |
13788.800 |
|
|
Manufacturing Expenses |
1447.100 |
1183.300 |
923.100 |
|
|
Administrative Expenses |
212.200 |
147.400 |
129.800 |
|
|
Selling Distribution Expenses |
1501.600 |
1358.500 |
1057.900 |
|
|
Increase/(Decrease) in Finished Goods |
(1040.600) |
542.400 |
(127.900) |
|
|
Salaries, Wages, Bonus, etc. |
332.900 |
284.200 |
235.300 |
|
|
Interest |
1138.800 |
1092.500 |
774.400 |
|
|
Depreciation & Amortization |
647.600 |
490.200 |
379.900 |
|
Total Expenditure |
30336.200 |
24662.100 |
17161.300 |
|
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2008 |
|
Type |
1st
Quarter |
|
Sales
Turnover |
8029.700 |
|
Other
Income |
3.200 |
|
Total
Income |
8032.900 |
|
Total
Expenditure |
6971.900 |
|
Operating
Profit |
1061.000 |
|
Interest |
524.400 |
|
Gross
Profit |
536.600 |
|
Depreciation |
213.000 |
|
Tax |
57.700 |
|
Reported
PAT |
265.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity
Ratio |
1.61 |
2.06 |
2.24 |
|
Long
Term Debt-Equity Ratio |
1.51 |
1.79 |
1.8 |
|
Current
Ratio |
1.10 |
1.21 |
1.16 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.32 |
2.56 |
2.29 |
|
Inventory |
4.78 |
6.25 |
5.74 |
|
Debtors |
13.56 |
14.87 |
21.87 |
|
Interest
Cover Ratio |
1.61 |
1.71 |
1.96 |
|
Operating
Profit Margin(%) |
11.92 |
12 |
10.79 |
|
Profit
Before Interest And Tax Margin(%) |
9.95 |
10.17 |
8.79 |
|
Cash
Profit Margin(%) |
5.74 |
6.05 |
5.92 |
|
Adjusted
Net Profit Margin(%) |
3.77 |
4.22 |
3.92 |
|
Return
On Capital Employed(%) |
19.88 |
19.95 |
16.93 |
|
Return
On Net Worth(%) |
19.72 |
25.53 |
24.9 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
With a modest beginning in the year 1988 with a Wet-Flux
Galvanizing line in technical collaboration with M/s John Lysaght of B.H.P.
Australia, today subject has three modern galvanizing lines with a total
capacity of 350,000 tons/year. Subject has its own cold rolling facility with a
capacity of 500,000 tons/year. Balance of CR are converted to value added
grades in CRCA coils, cut to length sheets and also sold as Full Hard CR in
overseas markets. The company, was, incorporated in March 1985 as Uttam Galva
Steels subsequently the companies name was to changed to Uttam Steel in March
1993 and once again the companies name was changed to Uttam Galva Steel Limited
in 13th June 2002. The Company commenced operations in April 1985.
Subject is a manufacturer of Cold Rolled Annealed and Unannealed Sheets and
Coils, Galvanised Plain and Corrugated Sheets. The company has its plant
located at Raigad district of Maharashtra.
Subject is an established player for the supply of CRCA to
most of the manufacturers of automobiles, white goods, general engineering,
Drums and Barrels segments of the Industry. It is also a large supplier of
Galvanized coils and sheets to the construction industries
The company has received a Certficate of ISO 9002 for all its plant.
In Technical Collaboration with John Lysaght, Australia, the company set up a
unit in the Raigad District of Maharashtra to manufacture 35,000 tpa of
galvanised plain/corrugated (GP/GC) Sheets. The companies Rs.188.000 millions
plant started production in January 1988. Uttam Galva also set up a captive
plant to manufacture 50,000 tpa of thin guage cold-rolled strips.
The company tapped the capital market in October 93 with a public issue to part
finance the Rs.100 millions expansion plan by issue of 8700700/- 15% Secured
Fully Convertible Debentures of Rs.50/- each for cash at par aggregating to
Rs.435.035 millions and rights issue of 5630145 - 15% Secured Fully Convertible
Debentures of Rs.50/- each for cash at par aggregating Rs.281.507 millions to
the existing Equity Shareholders of the company.
The company diluted its shareholding in uttam galva Exports Limited in December
2004 and by virtue of which the Uttam galva exports is no longer a subsidiary
of the company.
OPERATIONS:
The Company has achieved a turnover of Rs. 32884.700
millions as against Rs.26799.000 millions in the previous year. The Company has
recorded Profit Before Tax of Rs. 1243.300 millions. as against Rs. 1134.800
millions in the previous year. The Company has recorded the highest ever Sales
Turnover and Profit before Tax during the year.
Owing to expansions and importance of timely execution of projects, the Board
is of the opinion that cash flow should not be disturbed and hence has decided
to plough back earnings for the time being & not to recommend dividend
payout.
EXPORTS:
The Company has exported to 135 countries across the Globe
and continues to expand its wings. This year, the Company has serviced 259
export customers across most continents, of which 36 are new recipients of
Uttam products. The Company's average market-share in top 10 countries of
exports is 0.6%
The Company has registered a growth in exports to Europe by 15% and Africa by
43% mainly due to change in product mix and emerging market scenario in
developing nations, where demand exists. The Company remains the highest
exporter to USA from India for the Galvanised product group for the 3rd year in
succession.
The new wide width 1650 mm - Galvanising line 'SGL' which got operational
during the year is going to help broaden the Company's product range further
enhancing value addition. The 'SGL' will make the Company one of the world's
most wide ranged product serving organisation which can service galvanized
sheets as thin as 0.12 mm and as thick as 3.00 mm. Very few mills in the Works
can produce such a wide product range. The 'SGL' will also help in enhancing
Market mix while focusing on exports to developing economies in East Europe,
Middle East, Africa and South America.
The Company has been awarded for the last 10 successive years by the
Engineering Export Promotion Council (fir of Commerce, Govt. of India) for
outstanding exports. By also bagging the State Level Export Award for the year
2006-2007 by the Govt. of Maharashtra. the Company has achieved a double
distinction.
DOMESTIC MARKET:
In the domestic market the
volume increase in sales has been 55% compared to sales in the same period last
year.
The Directors are pleased to inform you that the Company continues to enjoy the
goodwill and business of reputed customers such as Mahindra and Mahindra, Bajaj
Auto. Force Motors and others as is evident from the renewals of
contracts.
The Company has been quite successful with the white goods industry during the
year and is now the vendor to customers like Voltas, Godrej Appliances, Bajaj
Electricals and Haier Appliances. The Company also continues to supply the
vendors of TATA Motors, General Motors, Piaggio, Whirlpool, LG Electronics
etc.
During the year, the Company successfully continued supply of colour coated
coils/sheets to the Indian rooting industry and continues to gain repeat
business.
The segments supplied include Construction, Telecon shelters, Bus body building
and appliances.
The Company is continuing to enhance the reach in the domestic market by
opening offices at various locations across the Country.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Pursuant to Clause 49(IV) (B) and (F) of the Listing
Agreement ythe Directors wish to report as follows:
a) Industry Structure and
Development:
The World economy is today primarily driven by ERIC economy and India is part
of BRIC, with GDP Growth in the range of 8-9%. The Company is all set to serve
the booming Domestic Market with enhanced capacity of value added products like
Galvanised and Pre-painted steel sheets without disturbing the overseas
customer base. The demand for these products is set to grow at the rate of 20%
domestically and the Company can fulfill the market demands to keep a satisfied
customer base.
b) Opportunities and threats:
There exist good opportunities for the Company in markets like the USA, East
Europe and Middle East countries with value added products like Structural
Grade GI in thicker gauges, and wider PPGI products which very few mills in the
world can serve.
The Company can cater to White goods customers as well as the Automobile
Industry, located overseas, with its new product mix.
With the Indian Economy growing at such a fast pace and the growing demands in construction and
infrastructure segments there will be a good opportunity for the Company to
offer its expanded range of products in the Indian Market.
However, there exists a threat with regard to volatile raw material prices,
shipping and exchange rates. These hold valid for the competitors too both in
International as well as Domestic markets.
c) Segment - wise Performance:
Since the Company operates only in one Segment, Segment wise or product wise
analysis or performance is not applicable.
OUTLOOK
The outlook for the Steel Industry looks quite promising
with World's crude steel capacity over 1.2 Billion tonnes and& India poised
to cross 50 Million tonnes. The new construction norms demand superior grades
of steel, which the Company can serve with its new facilities in place. The
Company's strategic location allows it to serve domestic markets as well as
export markets within the shortest time which is the demand of the hour.
World steel consumption could increase by. 71% in the next ten years, to exceed
2 Billion tonnes/year of finished steel products by 2017. Global consumption is
forecast to grow at an annual rate of 5.20% between 2006 to 2012, to reach 1.5
Billion tonnes/year. The compound annual grown rate will then accelerate to 6%
in the period 2012-2017.
Fastest growth in consumption will be seen in Asia, which will average a 7.4%
per year increase in steel demand upto 2017. This will be driven by an 8%
annual rise in China, which will be consuming more than 800 Million tonnes/year
by 2017. India's steel usage is also growing fast, and its consumption is
forecast to overtake South Korea by 2012 and Japan by 2017.
Consumption in the CIS is forecast to rise by more than 3% per year, reaching
73.7 Million tonnes by 2017. North American and European consumption is
forecast to dip between 2007 and 2009 because of the sub-prime crisis. But both
regions should see a recovery from 2010 onwards. In Europe the rise in consumption
will be led by Eastern Europe and Turkey which should see annual growth of more
than 6 % per year upto 2017; while growth in the rest of Europe will be 1% per
year, or less.
In India the Union Steel Ministry has revised its original documents production
target specified in the National Steel Policy. The Government, which had
earlier set an annual production target of 110 Million tonnes by 2020, now
expects to achieve this by 2011-2012 itself.
Accordingly, domestic production for 2020 has been revised to a staggering 300
Million tonnes. The spurt in production would be led by the 13% growth in
national consumption.
India's annual steel production capacity is growing at 10%. While India ranks
fifth in global steel production, it expects to achieve the second slot by
2020.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008
|
Particulars |
For 3 Months
ended (30.06.2008) (Rs.
In Millions) |
|
|
Reviewed |
|
Net Sales / Income from Operations |
8029.700 |
|
Other Income |
3.200 |
|
Total Income |
8032.900 |
|
|
|
|
Expenditure |
|
|
a) (Increase) / Decrease in FG and WIP |
(1520.300) |
|
b) Consumption of Raw Materials |
7273.000 |
|
c) Purchase of Traded Goods |
236.000 |
|
d) Staff Cost |
100.900 |
|
e) Depreciation |
213.000 |
|
f) Other Expenditure |
882.300 |
|
Total |
7184.900 |
|
|
|
|
Interest |
524.400 |
|
|
|
|
Profit / (Loss) From Ordinary Activities Before Tax |
323.600 |
|
Tax Expense |
57.700 |
|
Net Profit / (Loss) From Ordinary Activities after Tax |
265.900 |
|
Paid up Equity Share Capital (of Rs 10/each) |
1139.700 |
|
Paid up Preference Share Capital (of Rs 10/each) |
15.000 |
|
|
|
|
Reserves excluding Revaluation Reserves |
|
|
|
|
|
EPS (in Rs ) not annualized |
|
|
- Basic |
23.300 |
|
- Diluted |
18.000 |
|
|
|
|
Public shareholding |
|
|
- Number of shares |
74081507 |
|
- Percentage of shareholding |
65.00% |
Notes
·
The above audited financial results were approved at the Meetings of the
Audit Committee of Directors and the Board of Directors held on 31st July,
2008.
·
The above financial results are on stand alone basis
·
Previous year's figures have been regrouped / rearranged wherever
necessary.
·
A limited review of the above results was carried out by the Statutory
Auditors of the company pursuant to clause 41 of the Listing Agreement
·
The Company operates only in one business segment, hence segment
reporting as defined in Accounting Standard 17 is considered not applicable.
·
Investor complaints pending at the beginning of the quarter was Nit
during the quarter thecompany receivd I complaint. Out of the said complaint,
the company disposed off I complaint and Nil complaints were pending as at the
quarter ended 30.06.2008
FIXED
ASSETS:
·
Land
·
Building
AND Site Development
·
Flat
and Office Premises
·
Plant
and Machinery
·
Furniture
and Fixture
·
Office
Equipments
·
Vehicles
·
Computers
·
Housing
Complex.
AS PER WEBSITE
Profile
Subject is one of
the largest manufacturers of cold rolled steel ("CR") and galvanized
steel (GP) in Western India.
The Company is into the business of procuring hot rolled steel ("HR")
and processing it into CR and further into GP and Colour Coated Coils. In
Galvanized coils it specializes in making ultra thin sheets, which could be as
low as 0.13mm thickness. The excess capacity of CR which is not used for
galvanizing is converted to value added grades in Cold Rolled Closed Annealed
("CRCA") coils, cut to length sheets and also sold as Full Hard CR in
the overseas markets.
In the fiscal 2005, it had net sales
revenues of Rs.20, 917 million (U.S.$480 million) and net income of Rs.947
million (U.S.$22 million). The sales of GPs and CR constituted around 51 % and
22% of total sales volume respectively for the fiscal 2005.
More than 70% of the Company's products are currently exported to over 122
countries worldwide and it has a customer base in many advanced markets such as
Australia , France , Germany , Greece , UK and the USA to name a few. In the
Indian market, the Company has established itself as a major player for the
supply of CRCA to manufacturers of automobiles, white goods, general
engineering and drums and barrels segment. The Company is also a large supplier
of galvanized coils and sheets to the construction industry.
The Company's manufacturing facilities are located at Khopoli, in the state of
Maharashtra, India, which are close to Nhava Sheva and Mumbai ports. This
provides the Company with easy access to imports of HR coils and also for
exporting its products. A close proximity to the ports gives the Company the
advantage of lowering its transportation costs. The Company's domestic sales
are also within the radius of 500 km from its manufacturing facilities to
domestic companies.
The Company is an ISO 9001-2000 and TS 16949/2002 accredited Company both for
CR and GP/GC, It has also been awarded the highest exporter award by the
Engineering Export Promotion Council ("EEPC") of India for the past 7
years in succession.
The Company has made efforts to expand and modernize its operations at Khopoli
which have increased its cold rolling capacity from 250,000 MT per annum as of
March 2003 to 1,000,000 MT per annum as of March. The Company has also
increased its GP capacity from 200,000 MT per annum as of March 2003 to 450,000
MT per annum as of March 2006 and it plans to further increase its capacity to
750,000 MT per annum by June 2007. The Company has also added a new colour
coated line (Uttam Spectrum) with a capacity of 80,000 MT per annum as of March
2005. Due to its high quality products and brand image in the market, the
Company expects that its increased volumes will be easily absorbed into the
domestic and export markets.
The Company now has an entire range of cold rolling Reversible mills i.e. 20-Hi,
6-Hi, 4-Hi and newly commissioned twin stand 6-Hi mill. It is now in a position
to process HR coils of different grades, thicknesses and widths and is able to
meet virtually the entire thickness/width range of CR/GP/GC coils for various
end-use sectors. A significant portion of the Company's CR coils and GP/GC,
coils/sheets are in the higher value added thin gauge segment.
The Company believes that the above measures will further strengthen its
position as one of the leading companies in the CR and GP/GC market. With
around 77% of the CR production being transferred to the GP/GC, the level of
value addition is significantly enhanced. The Company has always focused on
novel and high value-added products. Its new colour coating line caters to a
niche set of consumers.
As part of its modernization program, the Company has also invested in
improving production and overall quality of its manufacturing processes and
finished products and Intends to increase its production of higher value- added
products. It is also investing in a state of the art Steel Service Center, to
cater to the ever increasing requirements of Tailor made, ready to use sheets
in HRPO, CR, GP and color coated sheets. Eventually, Uttam would emerge as a
one stop shop for all flat steel product users.
HISTORY
Ushering the Steel Age
Steel has penetrated all aspects of modern life. It has become an integral part
of lifestyle to such an extent that it is almost a consumer item now.
The visionary in Mr. Rajinder Miglani saw this necessity and pioneered the
Company Uttam Galva Steels Limited in 1985. The CR Steel Galvanizing line at
Khopoli, near Mumbai has turned into one of the largest producers of CRCA and
Galvanized Steel in India.
Subject has crossed several milestones in its journey from a small beginning
with 30,000 MT per year of galvanizing capacity in the year 1985 to more than
Seventy lakh tons per year capacity for galvanizing today. It has gone for
backward integration to cold rolling of steel and also for down-stream value
addition such as colour-coated products etc.
Carving a Global Niche
Subject has always strived to make its products accepted globally. This has led
to consistency in quality becoming its hallmark.
Some of the achievements over the years are:-
·
Capacity to roll a million ton of cold rolled steel.
·
Galvanizing capacity of 7,50,000 tons.
·
Annealing capacity of 1,50, 000 MT of cold rolled close annealed
products.
·
Colour-coating capacity of 80, 000 MT.
·
The Company's turnover crossed over Rs.22,000 million (US $ 490 million)
and exports Rs. 12,500 million (US $ 278 million) during the
financial year 2004- 05.
·
More than 70% of Uttam's products are exported to over 122 Countries
worldwide.
·
The Company is accredited with ISO 9001- 2000 and TS 16949/2002
certification. (All capacities indicate annual production.)
International
Marketing
Subject’s focus today is mainly on export markets and presently exports more than 70% of its prime production to over 122 countries worldwide. Underlining its emphasis on export, Subject has won the Award for Export Excellence for 7 consecutive years from Engineering Export Promotion Council, Ministry of Commerce, Government of India.
With first ever exports by UGSL of INR 75 Million (100 MT) in 1996, to one
country that is Myanmar in September 1996 Subject's export crossed the one million
tons mark, to over 122 countries that includes developed countries liked USA,
Canada, Italy, Belgium, Greece, Germany, France, UK, spain, Australia, Japan,
China etc. and developing countries like Africa, S. America and Far East Asian
countries.
Currently subject
exports CR Full Hard, Galvanized hard and soft quality. In CRCA over and above the
normal D and EDD grades, Uttam also exports Medium Carbon, Semi-processed steel
etc. With established name in CR and GP products, today Uttam are ready with
Color coated steel products for the world market. 70% of the finished steel
production is being exported.
Domestic Marketing
In the
Domestic markets subject supplies to highly quality conscious Auto Sector. Auto Majors
like Mahindra and Mahindra
both Auto and Tractor divisions, Bajaj
Auto, Bajaj Tempo, Piaggio TATA Motors, etc are in the client list.
IF Steel, High Strength Steel , Extra Deep Drawn grades are some of the value
added products regularly supplied in this segment.
The
White Goods Appliance Clientele includes Godrej,
Daewoo Anchor etc.
wherein Skin Panels of White Goods like Refrigerators, Washing Machines are
supplied in DD, EDD and GP Skin passed steel.
The
Colour Coated Steels are also under trials in this segment Uttam's major
customers in the Engineering and
Electrical segment
comprises of Bharat Heavy
Electricals (BHEL), Larsen and Turbro, Compoton Greaves, Kirloskar
Copeland etc. Medium Carbon Steel, Atmospheric corrosion
resistant steel (Corten) Semi- processed electrical steel for Electrical
Stampings are sold in this segment.
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 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.47.46 |
|
UK Pound |
1 |
Rs.83.37 |
|
Euro |
1 |
Rs.64.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING 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 |
|