MIRA
INFORM REPORT
|
Report Date : |
05.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
REMI METALS GUJARAT LIMITED |
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Registered
Office : |
GIDC Industrial Estate, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
06.10.1993 |
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Com. Reg. No.: |
04-020358 |
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Capital
Investment / Paid-up Capital : |
Rs.650.615 Millions |
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CIN No.: [Company Identification
No.] |
L27100GJ1993PLC020358 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR14671G |
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PAN No.: [Permanent Account No.] |
AAACR2121C |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Seamless Pipes |
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No. of Employees
: |
950 [In Office + Corporate] Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca [17] |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company is under pressure. There appears huge accumulated losses
recorded by the company. however, trade relations are reported as fair.
Business is active. Payments are reported to be slow The Company can be considered for business dealings on a secured trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY [General Details]
|
Name : |
Mr. Kaushik |
|
Designation : |
Company Secretary |
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Contact No.: |
91-22-66136121 [Direct] |
|
Date : |
03.08.2011 |
LOCATIONS
|
Registered Office & Factory : |
GIDC Industrial Estate, |
|
Tel. No.: |
91-2645-619700 /
226305 / 6 / 7 |
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Fax No.: |
91-2645-226841 /
220403 |
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E-Mail : |
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Website : |
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Corporate
Office 1 : |
11 Cama Industrial Estate, Goregaon (East), Mumbai – 400063, |
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Tel. No.: |
91-22-2685 1998/
5699 1155 |
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Fax No.: |
91-22-2685 3868 |
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E-Mail : |
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Corporate Office 2 : |
B Wing, 9th Floor, Kamala Mill Compound, Lower Parel,
Mumbai – 400013, |
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Sales
Offices : |
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DIRECTORS
As on 31.03.2010
|
Name : |
Shri Atul Desai |
|
Designation : |
Chairman |
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Name : |
Shri B K Goenka |
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Designation : |
Director |
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|
Name : |
Shri Murarilal Mittal |
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Designation : |
Director |
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Name : |
Shri Vijay Singh Bapna |
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Designation : |
Director |
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Name : |
Shri Rajendra C Saraf |
|
Designation : |
Director |
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|
Name : |
Shri Rishabh Saraf |
|
Designation : |
Director |
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Name : |
Shri Nirmal Gangwal |
|
Designation : |
Director |
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Name : |
Shri Ramgopal Sharma |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Kaushik N. Kapasi |
|
Designation : |
Company Secretary |
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Name : |
Mr. Raja Ganesh |
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Designation : |
Assistant Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
382994 |
0.35 |
|
Bodies Corporate |
89621193 |
82.65 |
|
Sub Total (A)
(1) |
90004187 |
83.00 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
18430 |
0.02 |
|
Financial Institutions / Banks |
130 |
0.00 |
|
Foreign Institutional Investors |
23761 |
0.02 |
|
Sub Total (B)
(1) |
42321 |
0.04 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
2797683 |
2.58 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
7020472 |
6.47 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
2903092 |
2.68 |
|
|
|
|
|
Any other
Specify |
1040868 |
0.96 |
|
Clearing Members |
10565 |
0.01 |
|
NRI |
30303 |
0.03 |
|
Trusts |
1000000 |
0.92 |
|
Sub Total (B)
(2) |
13762115 |
12.69 |
|
(B) = (B) (1) +
(B) (2) |
13804436 |
12.73 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
|
|
|
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Total (A) + (B) +(C) |
108435840 |
100.00 |
|
Names of Shareholders |
No. of Shares |
Shares as % of
Total No. of Shares |
|
Shareholding belonging to the category |
|
|
|
Brescon Corporate Advisors Limited |
1,240,175 |
1.14 |
|
Details of
Locked-in Shares |
|
|
|
Welspun Steel Limited |
10,476,280 |
9.66 |
|
Calplus Trading Private Limited |
1,516,662 |
1.40 |
|
Magnificent Trading Private Limited |
1,926,524 |
1.78 |
|
Widescreen Holdings Private Limited |
5,698,815 |
5.26 |
|
Remi Finance and Investment Private Limited |
1,034,372 |
0.95 |
|
Rajendra Finance Private Limited |
1,034,515 |
0.95 |
|
|
|
|
|
Total |
22,927,343 |
21.14 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Seamless Pipes |
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Products : |
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Terms : |
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Selling : |
L/C / Cash / Credit |
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Purchasing : |
L/C / Cash / Credit |
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
- Steel Bloom |
-- |
-- |
150000 |
-- |
|
- Rolled Products |
-- |
-- |
100000 |
-- |
|
- Seamless Pipes |
-- |
-- |
70000 |
5772 |
|
- Steel |
MT |
-- |
-- |
83742** |
|
* Not applicable in terms of Government of India’s Notification No.SO.477(E)dated 25th July 1991. ** Includes 2972 MT processed by third parties. |
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GENERAL INFORMATION
|
Customers : |
Steel
Seamless Pipe and Tube Customers - Domestic
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No. of Employees : |
950 [In Office + Corporate] Approximately |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Chaturvedi and Shah Chartered Accountant |
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Address : |
Nariman Point, Mumbai - 400021, |
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Associates : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
110,000,000 |
Equity Shares |
Rs.06/-each |
Rs.660.000 millions |
|
54,000,000 |
Preference Shares |
Rs.10/-each |
Rs.540.000 millions |
|
|
|
|
Rs.1200.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
108,435,840 |
Equity Shares |
Rs.06/-each |
Rs.650.615 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
650.600 |
650.600 |
756.200 |
|
|
2] Share Application Money |
0.000
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
[888.600] |
[495.100] |
[822.400] |
|
|
NETWORTH |
[238.000] |
155.500 |
[66.200] |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1769.500 |
1057.500 |
1324.700 |
|
|
2] Unsecured Loans |
1664.000 |
1370.300 |
886.900 |
|
|
TOTAL BORROWING |
3433.500 |
2427.800 |
2211.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3195.500 |
2583.300 |
2145.400 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
2454.900 |
1740.400 |
1601.700 |
|
|
Capital work-in-progress |
18.700 |
637.800 |
85.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
956.200
|
750.500 |
731.400 |
|
|
Sundry Debtors |
854.000
|
482.500 |
717.600 |
|
|
Cash & Bank Balances |
180.200
|
42.300 |
70.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
149.600
|
139.500 |
93.500 |
|
Total
Current Assets |
2140.000
|
1414.800 |
1613.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1309.600 |
869.000 |
1061.300 |
|
|
Other Current Liabilities |
91.800
|
329.000 |
80.400 |
|
|
Provisions |
16.700
|
11.700 |
12.900 |
|
Total
Current Liabilities |
1418.100
|
1209.700 |
1154.600 |
|
|
Net Current Assets |
721.900
|
205.100 |
458.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3195.500 |
2583.300 |
2145.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3715.000 |
2920.200 |
3341.800 |
|
|
|
Other Income |
16.400 |
13.000 |
19.700 |
|
|
|
TOTAL (A) |
3731.400 |
2933.200 |
3361.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
0.000 |
98.100 |
24.000 |
|
|
|
Material Cost |
2312.800 |
2023.100 |
2364.500 |
|
|
|
Manufacturing & Other Expenses |
1546.300 |
997.300 |
1135.900 |
|
|
|
Increase / (Decrease) in Stock |
[72.400] |
13.000 |
[190.500] |
|
|
|
Misc. Expenses Written off |
0.000 |
0.000 |
7.800 |
|
|
|
TOTAL (B) |
3786.700 |
3131.500 |
3341.700 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
[55.300] |
[198.300] |
19.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
149.400 |
120.700 |
146.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[204.700] |
[319.000] |
[127.100] |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
188..800 |
147.400 |
142.600 |
|
|
|
|
|
|
|
|
|
|
Interest including Funded Interest waived as per –rehabilitation
scheme |
0.000 |
66.500 |
1231.700 |
|
|
|
|
|
|
|
|
|
|
Principal waived as per rehabilitation scheme |
0.000 |
47.400 |
783.800 |
|
|
|
|
|
|
|
|
|
|
Excess Depreciation Reversed due to change in method |
0.000 |
0.000 |
864.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
[393.500] |
[352.500] |
2610.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
0.700 |
0.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
[393.500] |
[353.200] |
2609.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[495.100] |
[822.400] |
[3431.900] |
|
|
|
|
|
|
|
|
|
|
Adjustment on Reduction of Share Capital |
0.000 |
680.500 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
[888.600] |
[495.100] |
[822.400] |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
4.200 |
1.900 |
0.000 |
|
|
TOTAL EARNINGS |
4.200 |
6.100 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
583.800 |
152.000 |
235.300 |
|
|
|
Stores & Spares |
66.800 |
32.400 |
24.800 |
|
|
|
Capital Goods |
17.500 |
46.000 |
0.000 |
|
|
TOTAL IMPORTS |
668.100 |
230.400 |
260.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
[6.72] |
[3.37] |
20.71 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
1443.200 |
1576.000 |
1472.700 |
1467.000 |
|
Total Expenditure |
1421.400 |
1539.000 |
1473.800 |
1521.800 |
|
PBIDT (Excl
OI) |
21.800 |
37.000 |
[1.100] |
[54.800] |
|
Other Income |
2.200 |
2.700 |
4.200 |
6.100 |
|
Operating
Profit |
24.000 |
39.700 |
3.100 |
[48.700] |
|
Interest |
81.700 |
74.200 |
82.900 |
73.400 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
[57.700] |
[34.500] |
[79.800] |
[122.100] |
|
Depreciation |
55.000 |
55.800 |
55.900 |
64.600 |
|
Profit
Before Tax |
[112.700] |
[90.300] |
[135.700] |
[186.700] |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
[112.700] |
[90.300] |
[135.700] |
[186.700] |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
[112.700] |
[90.300] |
[135.700] |
[186.700] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
[10.54]
|
[12.04] |
77.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[10.59]
|
[12.07] |
78.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[8.56]
|
[11.17] |
81.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[1.65]
|
[2.27] |
[39.43] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
[20.38]
|
23.39 |
[50.85] |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.51
|
1.17 |
1.40 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY
CREDITORS DETAILS (Rs. in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Micro and Small |
5.800 |
8.300 |
0.000 |
|
Others |
1303.800
|
860.700 |
1061.300 |
|
Total |
1309.600 |
869.000 |
1061.300 |
Contingent
Liability (Rs. in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
|
a) Estimated amount of unexecuted contracts on Capital A/c not
provided for (net of advances) |
28.300 |
237.100 |
|
b) Bank Guarantee |
38.700
|
22.300 |
|
c) Bill Discounting |
23.000 |
63.700 |
|
d) Others |
0.400 |
0.400 |
|
e) Cumulative Preference Share Dividend |
0.000 |
0.100 |
|
f) Sales tax |
2.000 |
0.000 |
OPERATIONS
Despite on-going
recessionary situation in early FY 09-10 which has caused average realization of
steel products lower by 17% over that of its preceding year, the organization
has taken various steps which has resulted in 60% improvement in Sales Volume
of Steel Products and 10% improvement in sales volume of Seamless Pipes in FY
09-10 over that of FY 08-09. Some of the noteworthy Plant Improvements include
Installation of Continuous DRI feeding system- which has brought in savings in
manufacturing cost as well as stability in production, Outsourcing of smaller
size rolled products to vendors -which has resulted in increased through-put of
their rolling mill and recent Installation of LRF transformer which started
showing results of reduced cycle time in steel thereby reducing the cost of
steel making. Preventive Maintenance system has been further strengthened
across all production processes which has resulted in increased production
level of quality material.
By diversifying
sales into Bearing, power, Defense and railway segments from hitherto Auto and
General Engineering Segments, their product mix got a wider spread. they have
also started developing niche products especially, high grade special steels
(Creep Resistance Steel, Ball Bearing Steels, Low Phosphorous and Low Sulphur
Nickel Chrome, Mo Steels and Round Ingots) to maximize sales and profitability.
The newly installed heat-treatment furnace would aid in strengthening quality
of these niche products.
In view of the
above steps taken, the Company expects improvement in performance as compared
to previous year.
INDUSTRY STRUCTURE
and DEVELOPMENT
The year 2009 was
not favorable for the steel industry as production dipped in response to weak
demand from end— user industries. However, amidst the turmoil in the global
industry,
The World Steel
Association in its April 2010 forecast of “Short range outlook for Steel for
2010 and 2011” estimates that apparent steel usage will increase by 10.7% to
1241 Million tones after contracting by -6.7% in 2009. The report says that
Indian Steel Demand Maintained stable growth during 2009 crisis and is expected
to grow by 13.9% and 13.7% in 2010 and 2011 respectively after 7.7% in 2009,
indicating that the worst is behind them.
The key drivers of
growth would be significant investments toward large scale public
infrastructure development, including roads, ports, power plants, airports, etc.,
as well as increasing levels of urbanization generating demand for housing,
automobiles and white goods.
DISCUSSION and
FINACIAL PERFORMANCE
SALES
Net turnover of
the Company is of Rs. 3720.000 millions during the year ended 31st March 2010
as against Rs. 2920.000 millions during the year 31st March 2009.
Audited
Financial Results for the year ended 31.03.2011
Rs. in millions
|
Particulars_ |
Year Ended 31.03.2011 Audited |
|
Net Sales / Income from Operations |
5954.200 |
|
b) Other
Operating Income |
4.700 |
|
2 Expenditure |
|
|
a) (Increase) / decrease in stock in trade
and work in progress |
4.300 |
|
b) Consumption of raw materials |
3869.600 |
|
c) Purchase of traded goods |
0.000 |
|
d) Power & Fuel |
938.300 |
|
e) Employees Cost |
275.900 |
|
f) Depreciation |
231.300 |
|
g) Other Expenditure |
829.200 |
|
h) Total |
6187.300 |
|
3 Profit from
Operations before Other Income, Interest & Exceptional Items (1-2) |
[228.400] |
|
4 Other Income |
15.200 |
|
5 Profit before Interest & Exceptional
Items (3+4) |
[213.200] |
|
6 Interest |
312.200 |
|
7 Profit after
Interest but before Exceptional Items (5-6) |
525.400 |
|
8 Exceptional Items |
0.000 |
|
9 Profits(+)/Loss(-) from Ordinary
Activities before tax (7+8) |
[525.400] |
|
10 Tax Expenses |
0.000 |
|
11 Net Profit(+)/Loss(-) from Ordinary
Activities After tax (9-10) |
[525.400] |
|
12 Extraordinary Item ( net of tax expense
Rs.nil) |
0.000 |
|
13 Net
Profit(+)/Loss(-) for the period (11-12) |
[525.400] |
|
14 Paid-up Equity Share Capital (Rs.6/- per
equity share) |
650.600 |
|
15 Reserve excluding Revaluation Reserves
as per balance sheet of previous accounting year |
[1414.000] |
|
16 Earnings Per Share (EPS) |
|
|
(a) Basic and diluted EPS before Extraordinary
items for the period, for the year to date and for the previous year |
[4.85] |
|
(b) Basic and diluted EPS after
Extraordinary items for the period, for the year to date and for the previous
year |
[4.85] |
|
17 Public Shareholding |
|
|
- Number of Shares |
13804436 |
|
- Percentage of shareholding (%) |
12.73 |
|
18 - Promoters & Promoter group
Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of Shares |
- |
|
- Percentage of Shares (as a % of the total
shareholding of Promoter & Promoter group) |
- |
|
Shareholding of Promoter & Promoter
group |
|
|
- Percentage of Shares (as a % of the total
share capital of the company) |
- |
|
b) Non-encumbered |
|
|
- Number of Shares |
94631404 |
|
- Percentage of Shares (as a % of the total
shareholding of Promoter & Promoter group) |
100.00 |
|
- Percentage of Shares (as a % of the total
share capital of __the company)__ |
87.27 |
Note :
1 The above audited results
have been reviewed by the Audit committee and thereafter were approved and
taken on record by the Board of Directors at their meeting held on May 30,
2011.
2 The Company is
engaged in the business of steel and steel products such as Seamless Tubes and
Rolled Products which in the opinion of the management is considered the only
business segment in the context of Accounting Standard 17 on "Segment
Reporting".
3 Deferred tax asset
is more than deferred tax liability as computed in accordance with the
Accounting Standard AS 22, notified in the Companies (Accounting Standards)
Rules 2006, The Company, as a matter of prudence has not recognised deferred
tax asset.
4 In the previous
year the Company has implemented the scheme of rehabilitation by raising long
term funds and utilization thereof in capex. During the year, the Company has
also tied up the required working capital finance. The Company has stabilized
all the new equipments installed for debottlenecking of the facilities and
accordingly the Company has recorded significant increase in production and sale. The Company also made effort to
develop products for additional applications towards enriching its product mix
and also approached a number of Original Equipment Manufacturers for product and
process approvals. The management is hopeful of improved performance in the
coming year. In view of the foregoing, the accounts have been prepared on a
going concern basis despite the fact that the Company's accumulated losses
exceed its net worth.
5 The Company had
received 37 complaints during the quarter ended March 31, 2011. They have been
disposed off and no complaints are pending.
6 Previous period
figures have been re-grouped and re-arranged, wherever necessary.
History :
Founded in 1960, Remi Metals Gujarat Limited (REMI) has diversified into a multi-product group involved in the manufacture of Alloy Steel, Stainless Steel, Seamless Tubes and Pipes.
With a huge manufacturing base and extensive distribution network, REMI is
capable of technically supporting and providing expertise to its valued
customers. Having diversified manufacturing activities REMI always stood firm
in its commitment to provide real value-for-money to its customer.REMI is the
only integrated facility for making steel and seamless pipes/tubes in
India at Jhagadia near Bharuch (Gujarat) having steel making capacity of 1.55
Lacs Mt per annum and seamless tube manufacturing capacity of 50000
TPA. REMI is equipped with the latest Testing and R and D facilities
It may be noted that Welspun Group has done a strategic investment with REMI in
2008.
They are currently producing forging quality and engineering grade steel,
Carbon and alloy Steels used mainly for Auto-manufacturing / auto
components, Oil and Gas, Energy and other engineering
applications as per IS, BS, AISI/SAE, DIN, JIS,GOST specifications
or as per customer’s specific requirements.
Business Description
Remi Metals Gujarat Limited (RMGL) is an India-based company.
The Company is engaged in the manufacture of steel and steel products, such as
seamless tubes and rolled products. During fiscal year ended March 31, 2010
(fiscal 2010), the Company produced 83742 tons of steel and 5,772 tons of
seamless pipes. For the nine months ended 31 December 2010, Remi Metals Gujarat
Limited's revenue increased 81% to RS4.5B. Net loss increased 15% to RS338.7M.
Revenues reflect an increase in income from operations. Higher loss reflects an
increase in consumption of raw materials, increased power and fuel expenses, a
rise in employee’s costs, higher depreciation expenses and an increase in other
expenditure of the company.
Press Release
CARE maintains ratings on RMGL's bank facilities BB/PR4
EquityBites
09 February 2011
[What follows is the full text of the news story.]
9 February 2011 - India'sCARE yesterday reaffirmed the ratings assigned
to the long and short-term bank facilities of Remi Metals Gujarat Limited
(BOM:500365), or (RMGL), at BB and PR4, respectively.
The agency issued the following press release:
Ratings
Facilities Amount (Rs. crore) Ratings Remarks
Long-term Bank Facilities 198.00 'CARE BB' [Double B] Reaffirmed
Short-term Bank Facilities 175.00 'PR4'
[PR Four] Reaffirmed
Total Facilities
373.00
Rating Rationale
The ratings continue to be constrained by the relatively small size of
RMGL's operations with limited product offering, operational inefficiencies of
the seamless pipe plant leading to operating losses, RMGL continuing to be
under the purview of the Board for Industrial and Financial Reconstruction
(BIFR) and its stressed debt coverage indicators.
The ratings, however, draw strength from the financial support provided
by the Welspun Group through regular infusion of funds into RMGL and the
benefits arising out of association with the group with respect to raw material
sourcing, marketing arrangements and maintenance of the manufacturing
facilities as well as improvement in the operating efficiency of steel
manufacturing facilities.
RMGL's ability to improve the operational efficiency of the seamless
pipe plant along with the profitability as well as to turn its networth
positive and come out of the purview of BIFR are the key rating sensitivities.
Company Background
Promoted by Mr. V.C. Saraf and Mr. R.C. Saraf, RMGL is engaged in
manufacturing of carbon and alloy steel seamless pipes/tubes with captive facilities
for steel melting and continuous bloom/ingot casting at Jhagadia, Gujarat. Due
to inefficiencies in the plant on account of lack of critical equipment, the
operations of the company were unprofitable. Subsequently, the company became a
sick unit in August 1999 and came under the purview of BIFR. In 2009, the
Welspun group was inducted as a strategic partner of RMGL for revival of the
company.
Press Release
CARE keeps BB/PR4 ratings on RMGL's bank facilities
Aii Data Processing Limited
09 February 2011
[What follows is the full text of the news story.]
(ADPnews) - Feb 9, 2011 - India'sCARE yesterday reaffirmed the ratings
assigned to the long and short-term bank facilities of Remi Metals Gujarat
Limited (BOM:500365), or (RMGL), at BB and PR4, respectively.
The agency issued the following press release:
Ratings
Facilities Amount
(Rs. crore) Ratings Remarks
Long-term Bank Facilities 198.00
�CARE BB� [Double B] Reaffirmed
Short-term Bank Facilities 175.00
�PR4� [PR Four] Reaffirmed
Total Facilities 373.00
Rating Rationale
The ratings continue to be constrained by the relatively small size of
RMGL�s operations with
limited product offering, operational inefficiencies of the seamless pipe plant
leading to operating losses, RMGL continuing to be under the purview of the
Board for Industrial and Financial Reconstruction (BIFR) and its stressed debt
coverage indicators.
The ratings, however, draw strength from the financial support provided by
the Welspun Group through regular infusion of funds into RMGL and the benefits
arising out of association with the group with respect to raw material
sourcing, marketing arrangements and maintenance of the manufacturing
facilities as well as improvement in the operating efficiency of steel
manufacturing facilities.
RMGL�s ability to
improve the operational efficiency of the seamless pipe plant along with the
profitability as well as to turn its networth positive and come out of the purview
of BIFR are the key rating sensitivities.
Company Background
Promoted by Mr. V.C. Saraf and Mr. R.C. Saraf, RMGL is engaged in
manufacturing of carbon and alloy steel seamless pipes/tubes with captive
facilities for steel melting and continuous bloom/ingot casting at Jhagadia,
Gujarat. Due to inefficiencies in the plant on account of lack of critical
equipment, the operations of the company were unprofitable. Subsequently, the
company became a sick unit in August 1999 and came under the purview of BIFR.
In 2009, the Welspun group was inducted as a strategic partner of RMGL for
revival of the company.
(INR 100 = USD 2.201/EUR 1.616)
(crore = 10 million)
FIXED ASSETS :
- Free Hold
- Plant & Machinery
- Electrical Installation
- Building
- Office Equipment
- Furniture & Fixture
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.41 |
|
|
1 |
Rs.72.69 |
|
Euro |
1 |
Rs.63.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
17 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.