Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
|
Principal Name 1 |
Mr. D.P. Jindal |
|
Status |
Good |
Principal Name 2 |
Mr. U.C. Agarwal |
|
|
|
Registration # |
11-080545 |
|
Street Address |
Pipe Nagar, Village-Sukeli, N.H.17, |
||
|
Established Date |
10.05.1988 |
SIC Code |
-- |
|
Telephone# |
91-2194-238511/ 12/ 238567/ 69 |
Business Style 1 |
Manufacturer of Seamless Pipes. |
|
Fax # |
91-2194-238513 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Seamless Pipes and Tubes |
|
|
# of employees |
1165 |
Product Name 2 |
ERW Pipes and Tubes |
|
Paid up capital |
Rs. 352,667,110 |
Product Name 3 |
Wind Power |
|
Shareholders |
Bodies Corporate 51.03% |
Banking |
HDFC Bank
Limited |
|
Public Limited Corp. |
-- |
Business Period |
22 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation - Associates |
Country
|
Company
Name |
Jindal Drilling and Industries Limited |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,337,990,000 |
Current Liabilities |
1,729,163,000 |
|
Inventories |
5,140,016,000 |
Long-term Liabilities |
800,998,000 |
|
Fixed Assets |
10,171,101,000 |
Other Liabilities |
434,388,000 |
|
Deferred Assets |
0 |
Total Liabilities |
2,964,549,000 |
|
Invest& other Assets |
8,191,175,000 |
Retained Earnings |
22,523,066,000 |
|
|
|
Net Worth |
22,875,733,000 |
|
Total Assets |
25,840,282,000 |
Total Liab. &
Equity |
25,840,282,000 |
|
Total Assets (Previous Year) |
22,383,004,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
15,931,726,000 |
Net Profit |
2,845,939,000 |
|
Sales(Previous yr) |
20,388,609,000 |
Net Profit(Prev.yr) |
2,578,410,000 |
MIRA
INFORM REPORT
|
Report Date : |
05.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
Pipe Nagar, Village-Sukeli, N.H.17, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on)
: |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
10.05.1988 |
|
|
|
|
Com. Reg. No.: |
11-080545 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1988PLC080545 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company's shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacturer of Seamless Pipes. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 11503000 |
|
|
|
|
Status : |
Good |
|
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|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject is a well establishment and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business dealings at usual
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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Sri Krishna |
|
Designation : |
Senior Manager – Finance |
|
Contact No.: |
91-124-4629327 |
LOCATIONS
|
Registered Office/ Factory 1 : |
Pipe Nagar, Village-Sukeli, N.H.17, |
|
Tel. No.: |
91-2194-238511/ 12/ 238567/ 69 |
|
Fax No.: |
91-2194-238513 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
5000 sq ft |
|
Location : |
Owned |
|
|
|
|
Head Office : |
1/ 23 B, |
|
Tel. No.: |
91-11-23213631 |
|
|
|
|
Corporate Office : |
Jindal Corporate Centre, Plot No 30 ,
Institutional Sector 44, Gurgaon – 122 002, |
|
Tel. No.: |
91-124-2574325,
2574326, 4624000 |
|
Fax No.: |
91-124-2574327,
4624215 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
Sealess and ERW Pipes: D –
114, Industrial Area, Vile Bhagad, Taluka Mangaon, District Raigad, |
|
|
|
|
Factory 3 : |
Village
Nivknae, Taluka Patan, District Satara, |
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|
|
|
Branch Office |
Located at:
|
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. D.P. Jindal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
|
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. U.C. Agarwal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D.K. Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
|
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S.P. Raj |
|
Designation : |
Whole Time Director |
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|
|
|
Audit Committee : |
Mr. U.C. Agarwal – Chairman Mr. D.P. Jindal Mr. D.K. Parikh |
KEY EXECUTIVES
|
Name : |
|
|
Designation : |
VP and Company Secretary |
|
|
|
|
Name : |
Mr. Anil Jain |
|
Designation : |
CFO |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,029,709 |
2.88 |
|
|
35,992,359 |
51.03 |
|
|
38,022,068 |
53.91 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
38,022,068 |
53.91 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
8,537,991 |
12.10 |
|
|
59,382 |
0.08 |
|
|
1,592,601 |
2.26 |
|
|
9,464,232 |
13.42 |
|
|
19,654,206 |
27.87 |
|
|
|
|
|
|
4,808,944 |
6.82 |
|
|
|
|
|
|
5,075,223 |
7.20 |
|
|
2,049,425 |
2.91 |
|
|
923,556 |
1.31 |
|
|
998 |
- |
|
|
921,958 |
1.31 |
|
|
600 |
- |
|
|
12,857,148 |
18.23 |
|
Total Public
shareholding (B) |
32,511,354 |
46.09 |
|
Total (A)+(B) |
70,533,422 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
70,533,422 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Seamless Pipes. |
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Products : |
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Exports : |
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Products : |
Black Pipes |
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Countries : |
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Imports : |
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Products : |
Non Alloy Steel |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit 30/ 60/ 90 days |
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Purchasing : |
Cash and Credit 30/ 60/ 90 days
|
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Seamless Pipe |
MT |
|
350000 |
201279 |
|
ERW Pipe |
MT |
|
200000 |
115210 |
|
Wind Power (Units
Generated) |
KWH |
|
61320000 |
7773116 |
|
|
|
|
|
|
GENERAL INFORMATION
|
Customers : |
End Users, OEM’s and
Manufacturer
|
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No. of Employees : |
1165 |
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Bankers : |
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Facilities : |
The borrowings for working capital are secured by hypothecation of inventories, book debts and all other current assets other than those specifically excluded and second charge on moveable fixed assets ranking pari-passu.
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Kanodia Sanyal and
Associates Chartered Accountants |
|
Address : |
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Joint Venture Company : |
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Associates/Subsidiaries : |
Address: Pipe Nagar,
Village-Sukeli, N.H.17, Line of Business: Offshore Drilling For Oil and Gas.
Address: Pipe Nagar,
Village-Sukeli, N.H.17, Line of Business: Manufacturer of ERW Black and G.I. Pipes. |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs.5/- each |
Rs.400.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total
|
|
Rs.600.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70533422 |
Equity Shares |
Rs.5/- each |
Rs.352.667
millions |
|
|
|
|
|
(Includes 6645120 equity shares of Rs.5/- each (Originally 332560 equity
shares of Rs.10/- each) fully paid up issued/ converted for consideration other
than cash in terms of approved scheme of amalgamation in Financial Years
1995-96)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
352.667 |
352.667 |
352.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
22523.066 |
12747.174 |
10581.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22875.733 |
13099.841 |
10934.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
18.682 |
1.101 |
158.300 |
|
|
2] Unsecured Loans |
782.316 |
822.611 |
863.200 |
|
|
TOTAL BORROWING |
800.998 |
823.712 |
1021.500 |
|
|
DEFERRED TAX LIABILITIES |
434.388 |
427.411 |
419.800 |
|
|
|
|
|
|
|
|
TOTAL |
24111.119 |
14350.964 |
12375.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10171.101 |
2837.492 |
2684.600 |
|
|
Capital work-in-progress |
1907.182 |
1068.919 |
690.000 |
|
|
Silver Coins in hand |
0.030 |
0.027 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
6283.963 |
4198.699 |
893.800 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5140.016
|
3520.803 |
3802.700 |
|
|
Sundry Debtors |
1825.547
|
2787.729 |
2695.200 |
|
|
Cash & Bank Balances |
83.807
|
1106.340 |
2548.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
428.636
|
617.168 |
984.900 |
|
Total
Current Assets |
7478.006
|
8032.040 |
10031.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
944.764 |
|
1423.900 |
|
|
Other Current Liabilities |
184.017
|
235.805 |
|
|
|
Provisions |
600.382
|
579.035 |
500.600 |
|
Total
Current Liabilities |
1729.163
|
1786.213 |
1924.500 |
|
|
Net Current Assets |
5748.843
|
6245.827 |
8107.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
24111.119 |
14350.964 |
12375.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Income from Operations |
15931.726 |
20388.609 |
14911.800 |
|
|
|
Other Income |
529.393 |
720.834 |
437.100 |
|
|
|
TOTAL
(A) |
16461.119 |
21109.443 |
15348.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/ Decrease in Stock |
1.902 |
434.055 |
12118.400 |
|
|
|
Materials and Manufacturing Expenses |
11258.999 |
15217.380 |
|
|
|
|
Employees’ remuneration and Benefits |
272.886 |
238.632 |
|
|
|
|
Administrative Expenses |
100.518 |
95.650 |
|
|
|
|
Selling and Distribution Expenses |
298.428 |
978.507 |
|
|
|
|
TOTAL (B) |
11932.733 |
16964.224 |
12118.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4528.386 |
4145.219 |
3230.500 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
34.032 |
115.610 |
37.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4494.354 |
4029.609 |
3193.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
183.410 |
179.280 |
174.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4310.944 |
3850.329 |
3019.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7156.883 |
1271.919 |
1066.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2845.939 |
2578.410 |
1952.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
433.979 |
368.172 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
423.201 |
352.667 |
NA |
|
|
|
Dividend Distribution Tax on Proposed
Dividend |
70.288 |
59.936 |
NA |
|
|
|
Transfer to General Reserve |
2250.000 |
2100.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
536.429 |
433.979 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Fob Value of Physical/ Deemed Exports |
3347.669 |
8642.107 |
NA |
|
|
|
Interest Received |
0.000 |
38.037 |
NA |
|
|
TOTAL EARNINGS |
3347.669 |
8680.144 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1942.445 |
4324.537 |
NA |
|
|
|
Stores & Spares |
154.306 |
164.677 |
NA |
|
|
|
Capital Goods |
255.725 |
185.199 |
NA |
|
|
TOTAL IMPORTS |
2352.476 |
4674.413 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
40.35 |
36.56 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Gross Sales |
|
4239.800 |
4355.500 |
|
Other Operating Income |
|
36.600 |
152.400 |
|
Other Income |
|
317.300 |
135.700 |
|
Total Income |
|
4333.800 |
4367.800 |
|
Total Expenditure |
|
3039.300 |
3196.100 |
|
PBIDT |
|
1294.500 |
1171.700 |
|
Interest |
|
7.700 |
4.600 |
|
PBDT |
|
1286.800 |
1167.100 |
|
Depreciation |
|
51.900 |
44.500 |
|
Tax |
|
312.600 |
327.800 |
|
Fringe Benefit Tax |
|
0.000 |
0.000 |
|
Deferred Tax |
|
(82.300) |
(6.000) |
|
Reported Profit After
Tax |
|
1004.600 |
800.800 |
|
Extra-ordinary Items |
|
0.000 |
0.000 |
|
Adjusted Profit After
Extra-ordinary item |
|
1004.600 |
800.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
17.29
|
12.21 |
12.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.06
|
18.88 |
20.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.43
|
35.42 |
23.74 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.29 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.32
|
4.50 |
5.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.32
|
4.50 |
5.21 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs.
in millions) |
31.03.2009 (Rs.
in millions) |
31.03.2008 (Rs.
in millions) |
|
Sundry Creditors |
944.764 |
971.373 |
NA |
|
|
|
|
|
HISTORY:
Subject, incorporated on 10th May 1988, is the flagship
company of the well diversified DP Jindal group. The
Company is engaged in the manufacture of seamless pipes (various capacities),
which find application in oil exploration, boilers, pipelines, petrochemicals
etc. The plant is located at Raigad,
RESULTS OF
OPERATIONS
Total turnover of the Company during the year was Rs.16912.200 millions
against Rs.21835.100 millions in the previous year. The profit before tax for
the year was Rs.4311.000 millions as against Rs.3850.300 millions in the
previous year. The profit after tax and adjustments for the year was
Rs.2845.900 millions as against Rs.2578.400 millions in the previous year.
The lower turnover was mainly on account of reduced sale prices of the
products owing to decline in raw material cost, without affecting the
profitability margins.
The Company has primarily two segments - Steel Pipes and Tubes and Wind
Power. Both segments contribute positively to the profitability of the Company.
The contribution of Steel Pipes and Tubes Division is over 89% of the total
Profit before Tax. Wind Power Project of the Company is meeting around 12% of
Power requirement and has helped in reducing over all cost of power.
EXPANSION PLANS
The erection work of 6” Seamless Pipe Plant at Mangaon
is on schedule and is likely to be completed during the current fiscal. This
would also enable the Company to increase the total installed capacity to 5.5
Lac Ton for Seamless Pipes. The plant has the facility to manufacture Drill
Pipe which is a value added product.
The Government of Maharashtra has conferred
the status of “Mega Project” to Company’s aforesaid project, which would enable
the Company to avail various incentives from the Government of Maharashtra in due course of time.
BACKWARD
INTEGRATION PROJECT
The Company is committed for its backward integration project to make steel
billets, with a capacity of 1.0 million ton in phases. A suitable location is
being looked at for this Project.
Ministry of Coal, Government of India, has also allocated a Non Coking
Coal Block to subject near
Thus the Company will have better control on cost of production of
Seamless pipes and poised for a good positioning in Seamless pipe industry.
DIRECTORS
Shri U. C. Agarwal and
Shn D. K. Parikh, Directors of the Company, retire by
rotation at the ensuing Annual General Meeting and being eligible, offer
themselves for reappointment.
The Board of Directors has reappointed Shri SaketJindal as Managing Director of the Company for a
period of five years w.e.f. 1st April, 20 0. The
Board of Directors has also reappointed Shri S. P. Raj as Wholetime Director of the
Company for a period of five years w.e.f. 1St
October, 2010.
MANAGEMENT
DISCUSSION AND ANALYSIS
FORWARD LOOKING
STATEMENTS
The statement in the Directors’ Report and Management Discussion and
Analysis Report contains “forward-looking statements” about the business,
financial performance, skills and prospects of the Company. Statements about
the plans, intentions, expectations, beliefs, estimates, predictions or similar
expression for future are forward-looking statements.
Forward-looking statements should be viewed in the context of many risk
issues, and events that could cause the actual performance to be different from
that contemplated in the Directors’ Report and Management Discussion and
Analysis Report, including but not limited to, the impact of changes in oil,
Steel prices worldwide and domestic, economic and political conditions. They
cannot assure that outcome of this forward-looking statements will be realized.
The Company disclaims any duty to update the information given in the aforesaid
reports.
INDUSTRY STRUCTURE
AND DEVELOPMENT
Global sentiments have shown slight recovery towards the beginning of
2009 after the steep slowdown. However demand recovery is still undermined by
short to medium term uncertainties emerging from global market conditions. The
demand for raw materials and employment in US is still facing setback, which is
being debated at different forums.
EXPANSION PLANS
The erection work of 6’ Seamless Pipe Plant at Mangaon
is in progress and is likely to be completed by the end of this fiscal. This
would also enable the Company to increase the total installed capacity to 5.5
Lac Ton for Seamless Pipes. This will also have the facility of manufacturing
Drill Pipe, which is a value added product. The Project has been awarded the
status of “Mega Project” by State Government of Maharashtra.
BACKWARD
INTEGRATION PROJECT
The Company is committed for its backward integration project and
planning a Integrated Steel plant with an annual capacity of 1.0 million ton
per annum of steel billets in phases, as it would offer complete control on
cost, price, quality and delivery of its raw material. A suitable location is
being looked at for the Project The Company is, however, successfully moving
for its Coal Blocks Project near
OPPORTUNITIES and
THREATS
Growing energy demand coupled with heavy investment in the Power Sector
promises higher revenue for Indian steel pipe makers. Globally, pipes are the
most economical way to transport oil and gas. Consistently rising global demand
of energy. especially in a developing country like
Major oil marketing I transportation companies like GAIL IOCL etc. have
plans to lay Pipelines across the length and breadth of the country and would
result in a huge demand for welded pipes. The country’s domestic gas
availability is expected to increase manifold in couple of years and would
require huge infrastructure for domestic Pipelines.
Domestic Seamless Pipe Industry has approached Government of India to
ensure level playing field in the domestic market against the cheaper imports
of pipes from
SEGMENT-WISE
PERFORMANCE
The Company has primarily two segments - Steel Pipes and Tubes and Wind
Power. Both segments contribute positively to the profitability of the Company.
The contribution of Steel Pipes and Tubes Division is over 89 % of the total
Profit before Tax. Wind Power Project of the Company is meeting around 12 % of
Power requirement and has helped in reducing over all cost of power.
OUTLOOK
Global demand for Seamless Pipes from Oil and Gas Industry has recovered
owing to increase in Rig counts and E and P activities. Domestic Oil companies
are also moving on with their ongoing project and Exploration and production
activities. Some competition in the Domestic market for Seamless Pipe is
expected from Imports. which could have bearing on both revenues and margins.
The company is now putting up intensive and aggressive marketing approach by
expanding customer base both in domestic as well as international markets to
improve its competitive edge.
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER, 2010
(Rs. in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
30.09.2010 |
30.09.2010 |
|
|
1. a. Sales & Income from Operations |
4355.500 |
8595.300 |
|
Less: Excise Duty |
275.800 |
520.900 |
|
Net Sales &
Income from Operations |
4079.700 |
8074.400 |
|
b. Other Operating Income |
152.400 |
189.000 |
|
|
4232.100 |
8263.400 |
|
2. Expenditure |
|
|
|
a. (Increase)! Decrease in stocks |
(119.700) |
(294.400) |
|
b. Consumption of Raw Materials |
2746.800 |
5300.200 |
|
c. Manufacturing Expenses |
430.500 |
993.100 |
|
d. Employees cost |
71.100 |
135.200 |
|
e. Depreciation |
44.500 |
96.400 |
|
f. Selling & Distribution Expenses |
47.900 |
74.300 |
|
g. Administrative / Other Expenditure |
19.500 |
41.800 |
|
Total
Expenditure |
3240.600 |
6346.600 |
|
3. Profit from operations before Other Income, Interest &
Exceptional Items (1-2) |
991.500 |
1916.800 |
|
4. Other Income |
135.700 |
453.000 |
|
5. Profit before Interest & Exceptional Items (3+4) |
1127.200 |
2369.800 |
|
6. Interest |
4.600 |
12.300 |
|
7. Profit after Interest but before Exceptional Items (5-6) |
1122.600 |
2357.500 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit from Ordinary Activities before Tax (7+8) |
1122.600 |
2357.500 |
|
10. Tax Expenses |
|
|
|
- Current |
327.800 |
640.400 |
|
- Deferred |
(6.000) |
(88.300) |
|
11. Net Profit from Ordinary Activities after tax (9-10) |
800.800 |
1805.400 |
|
12. Extraordinary Items (net of tax expenses) |
-- |
-- |
|
13. Net Profit for the period (11-12) |
800.800 |
1805.400 |
|
14. Paid up Equity Share Capital (Face Value of Rs. 5/- each) |
352.700 |
352.700 |
|
15. Reserves excluding revaluation reserves |
-- |
-- |
|
16. Earning per Share (EPS) (before & after extra ordinary items) |
|
|
|
- Basic/ Diluted Earning Per Share (Rs.) |
11.35 |
25.59 |
|
17. Public shareholding |
|
|
|
- Number of shares |
32511354 |
32511354 |
|
- Percentage of shareholding |
46.09% |
46.09% |
|
18. Promoter and
Promoter Group Shareholding |
|
|
|
a) Pledged /
Encumbered |
Nil |
Nil |
|
- Number of
Shares |
NA |
NA |
|
- Percentage of Shares
(as a % of total shareholding of promoter & promoter group) |
NA |
NA |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
|
|
|
b)
Non-Encumbered |
|
|
|
- Number of
Shares |
38022068 |
38022068 |
|
- Percentage of Shares
(as a % of total shareholding of promoter & promoter group) |
100% |
100% |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
53.91% |
53.91% |
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
30.09.2010 |
30.09.2010 |
|
|
1. Segment Revenue |
|
|
|
a Steel Pipes & Tubes |
4212.400 |
8230.200 |
|
b Wind Power |
19.700 |
33.200 |
|
c Others /Unallocated |
135.700 |
453.000 |
|
Total income |
4367.800 |
8716.400 |
|
Less: Inter segment revenue |
19.700 |
33.200 |
|
|
4348.100 |
8683.200 |
|
|
|
|
|
2. Segment Results : Profit before tax and interest (EBIT) from each
Segment |
|
|
|
a Steel Pipes & Tubes |
999.000 |
1939.000 |
|
b Wind Power |
12.000 |
19.600 |
|
c Others Unallocated |
135.700 |
453.000 |
|
Total |
1146.700 |
2411.600 |
|
Less: i) interest & Financial Charges |
4.600 |
12.300 |
|
ii) Other Unallocable Expenditure |
19.500 |
41.800 |
|
Total Profit Before Tax |
1122.600 |
2357.500 |
|
3. Capital Employed (Excluding Revaluation) |
|
|
|
(Segment Assets - Segment Liabilities) |
|
|
|
a Steel Pipes & Tubes |
11857.100 |
11857.100 |
|
b Wind Power |
214.600 |
214.600 |
|
c Others /Unallocated |
6187.700 |
6187.700 |
|
|
18259.400 |
18259.400 |
|
Less: Unallocable Liabilities – Assets |
1001.700 |
1001.700 |
|
Total
|
17257.700 |
17257.700 |
STATEMENT
OF ASSETS AND LIABILITES
(Rs. in millions)
|
Particulars |
30.09.2010 |
|
STATEMENT OF
ASSETS AND LIABILITIES |
|
|
SHAREHOLDERS’
FUNDS |
|
|
a. Capital |
352.700 |
|
b. Reserves and Surplus |
16905.000 |
|
c. Revaluation Reserve |
7219.000 |
|
LOAN FUNDS |
1031.100 |
|
DEFERRED TAX
UABILITY |
346.100 |
|
TOTAL |
25853.900 |
|
FIXED ASSETS (including Revaluation) |
12333.000 |
|
INVESTMENTS |
6039.100 |
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
a. Inventories |
5031.800 |
|
b. Sundry Debtors |
3105.000 |
|
c. Cash and Dank Balances |
87.000 |
|
d. Other current assets |
860.800 |
|
e. Loans and Advances |
80.600 |
|
Less: Current Liabilities and Provisions |
|
|
a. Liabilities |
1027.800 |
|
b. Provisions |
655.600 |
|
MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED) |
-- |
|
PROFIT AND LOSS ACCOUNT |
|
|
TOTAL |
25853.900 |
Notes:
1. The above financial results were reviewed by the Audit Committee and approved
by the Board of Directors at their meeting held on 29th October and have
undergone limited Review” by the Statutory Auditors of the Company.
2. Number of investors complaints for the quarter ended 30.09.2010 are:
Beginning-Nil, Received-i, Disposed off-i and Pending- Nil.
3. Figures for the previous periods have been re-grouped I rearranged I
recast to make them comparable with the figures of the current period.
TRADE REFERENCES:
- Bharat Heavy Electricals
Limited
- National
Thermal Power Corporation
- Punj Lloyd Limited
CONTINGENT
LIABILITIES (As on 31.03.2010)
a) Letter of Credit – Rs.401.722 millions
b) Bank Guarantees and Others – Rs.1284.061 millions
c) Sales Tax Demand under appeal – Rs.0.465 million
d) Income Tax Demand under appeal – Rs.3.558 millions
e) Excise Duty Demand under Appeal - Rs.138.564 millions
f) Indian Oil Corporation Limited (IOCL) had raised a claim of
Rs.179.848 millions during the financial year 2008-09 and against the above
mentioned claim a performance bank guarantee of Rs.85.279 millions was given to
IOCL which was realized by them, and an equivalent amount is charged in the
Profit and Loss Account in financial year 2008-09. The matter is still under
dispute and arbitration proceeding is going on. Any further demand, if any,
will be provided for on the date of final settlement
FIXED ASSETS:
·
Land
·
Shed and Building
·
Plant and Machinery
·
Office Equipment
·
Computer
·
Furniture and Fixtures
·
Vehicles
WEBSITE DETAILS:
PROFILE:
Subject, is one of the flagship company of Rs.30000.000 millions
D.P. Jindal Group. Due to our willingness to take on
big challenges and see them through, and a persevering policy of "no
compromise on quality", subject has
evolved into a Rs.21830.000 millions Seamless Pipes Manufacturing Company by 2008-2009 from Rs.1050.000 millions in 1994-1995.
They pride theirselves in providing a whole range of high-class, customizable and innovative seamless pipes and tubes using state-of-art technology. They also manufacture ERW pipes along with the seamless pipes. This ERW plant is India's first and only Plant capable of manufacturing ERW Pipes upto 21" Outer Diameter. They have also diversified into Power Generation with 7 MW wind power project at Satara Maharashtra, thus committing theirselves to environment friendly GREEN POWER.
Their engineers and technicians are among the best and they
can boast quality and productivity levels on par with those of any seamless
pipes manufacturing facilities in the world.
Listed are years and the associated events:
· 1988 Incorporated
· 1991 IPO Launched
· 1992 7" Seamless plant Commissioned
· 1993 API Certification and Production of Casing and Line Pipes
· 1995 IBR Certification by Central Boiler Board
· 1996 ISO Certification by BVQI
· 2000 21" ERW Plant OD Commissioned
· 2001 7MW Wind Power Plant Commissioned
· 2004 14" Seamless plant Commissioned
·
2005 JV facility with Hydril
· 2005 FCCB issue of USD 75 Million (entirely converted in Indian Equity Shares)
· 2006 Coating facility Commissioned.
·
2007 6" Seamless Plant having 200000 TPA
acquired from
· 2008 JV Arrangement with Tenaris reconstituted (post Hydril acquisition)
·
2008 Allocation of Non Coking Coal Block near
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.44.84 |
|
|
1 |
Rs.69.32 |
|
Euro |
1 |
Rs. 59.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE PROPRIETORY CONCERN
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.