MIRA
INFORM REPORT
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Report Date : |
17.01.2011 |
IDENTIFICATION DETAILS
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Name : |
WELSPUN MAXSTEEL LIMITED |
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Registered
Office : |
1/5, Parasi Mohalla, Chhavni, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
27.06.2008 |
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Com. Reg. No.: |
020834 |
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CIN No.: [Company Identification
No.] |
U27100MP2008PLC020834 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer of Hot Briquetted Iron (HBI),Direct
Reduced Iron (DRI) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11464860 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively new company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
1/5, Parasi Mohalla, Chhavni, |
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E-Mail : |
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Website.: |
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Regional Office : |
No. 11, C – 310, Blue Cross Chambers, 3rd Floor, |
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Corporate Office : |
Welspun House, 7th Floor, Kamala Mills Compound, Senapati
Bapat Marg, Lower Parel, Mumbai – 400013, |
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Tel. No.: |
91-22-66136000/24908000 |
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Fax No.: |
91-22-24908020/24908021 |
DIRECTORS
As on 27.09.2010
|
Name : |
Mr. Balkrishan Goenka |
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Designation : |
Director |
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Address : |
Rocky Isle 46-C, |
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Date of Birth/Age : |
15.08.1966 |
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Date of Appointment : |
22.05.2009 |
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Name : |
Mr. Murarilal Mittal |
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Designation : |
Director |
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Address : |
1601, Marathon Heights, Jai Bharat Oil Mills Comp., P. Budhkar Marg,
Lower Parel, Mumbai – 400 013, Maharashtra, India |
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Date of Birth/Age : |
11.03.1958 |
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Date of Appointment : |
22.05.2009 |
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Name : |
Mr. Vijay Singh Bapna |
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Designation : |
Director |
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Address : |
5th Floor, Room No. 503, Purna, 68-A, Sir Pochkhanwala Road,
Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
28.08.1948 |
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Date of Appointment : |
22.05.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Rajendra Sawant |
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Designation : |
Company Secretary |
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Address : |
508, B-Wing, 5th Floor, Raj Gruha Chs., Bala Seth Madhulkar
Marg, Lower Parel, Mumbai – 400 013, |
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Date of Birth/Age : |
23.05.1971 |
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Date of Appointment : |
30.04.2010 |
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Name : |
Mr. Jigar Shah |
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Designation : |
Company Secretary |
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Address : |
16, Kirti Kunj, |
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Date of Birth/Age : |
21.04.1987 |
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Date of Appointment : |
30.04.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 27.09.2009
|
Names of Shareholders |
|
No. of Shares |
|
Grasim Industries Limited, |
|
198800 |
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Dwarka Dass Rathi |
|
200 |
|
Sanjeev Bafna |
|
200 |
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Pavan Kumar Jain |
|
200 |
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Ashok Malu |
|
200 |
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Hemant Kadel |
|
200 |
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Ravindra Kastia |
|
200 |
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Welspun Steel Limited (Formerly, Welspun Power and Steel Limited), |
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129882342 |
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Devendra Patil (Nominee Welspun Steel Limited), |
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2 |
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Welspun Fintrade Limited, Gujarat (Nominee Welspun Steel Limited), |
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2 |
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Welspun Mercantile Limited, Gujarat (Nominee Welspun Steel Limited), |
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2 |
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Welspun Wintex Limited, Gujarat (Nominee Welspun Steel Limited), |
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2 |
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Krishiraj Trading Limited, Gujarat (Nominee Welspun Steel Limited), |
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2 |
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Total |
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130082352 |
AS ON 30.09.2010
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Equity Share
Breakup |
|
Percentage of
Holding |
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Category |
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Bodies corporate |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hot Briquetted Iron (HBI),Direct
Reduced Iron (DRI) |
GENERAL INFORMATION
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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 : |
Mgb and Company Chartered Accountant |
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Address : |
Jolly Bhavan #2, 1st Floor, 7, New Marine Lines,
Churchgate, Mumbai – 400 020, |
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Tel. No.: |
91-22-66332330 |
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Fax No.: |
91-22-66351545 |
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E-Mail : |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
150,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
130,082,352 |
Equity Shares |
Rs.10/- each |
Rs. 1300.823 Millions |
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Note –
1)
Of the above 129,882,352
equity shares of Rs. 10/- each fully paid up is held by holding company Welspun
Power and Steel Limited
2)
During the year,
41,100,000 equity shares of Rs. 10/- each fully paid up were issued as a bonus
shares by way of capitalization of securities premium
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
|
1300.823 |
1.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
1565.392 |
0.000 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
2866.215 |
1.000 |
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LOAN FUNDS |
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1] Secured Loans |
|
6069.083 |
0.000 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
6069.083 |
0.000 |
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DEFERRED TAX LIABILITIES |
|
103.225 |
0.000 |
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TOTAL |
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9038.523 |
1.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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5160.351 |
0.000 |
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Capital work-in-progress |
|
2998.400 |
0.000 |
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INVESTMENT |
|
29.905 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
1753.218 |
0.000 |
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Sundry Debtors |
|
1261.755 |
0.000 |
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Cash & Bank Balances |
|
80.093 |
0.471 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
424.873 |
0.000 |
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Total
Current Assets |
|
3519.939 |
0.471 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
|
867.403 |
0.005 |
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Other Current Liabilities |
|
1747.804 |
0.000 |
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Provisions |
|
54.865 |
0.000 |
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Total
Current Liabilities |
|
2670.072 |
0.005 |
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Net Current Assets |
|
849.867 |
0.466 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.534 |
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TOTAL |
|
9038.523 |
1.000 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
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|
31.03.2010 |
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SALES |
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Income |
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10850.336 |
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Other Income |
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|
12.320 |
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TOTAL (A) |
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10862.656 |
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Less |
EXPENSES |
|
|
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|
|
|
|
Cost of Goods Sold |
|
|
8598.012 |
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Manufacturing and Other Expenses |
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|
1094.631 |
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Other Expenses |
|
|
87.815 |
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TOTAL (B) |
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9780.458 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
1082.198 |
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Less |
FINANCIAL
EXPENSES (D) |
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636.524 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
445.674 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
236.699 |
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PROFIT BEFORE
TAX (E-F) (G) |
|
|
208.975 |
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Less |
TAX (H) |
|
|
103.225 |
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PROFIT AFTER TAX
(G-H) (I) |
|
|
105.750 |
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Earnings Per
Share (Rs.) |
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Basic |
|
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2.57 |
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Diluted |
|
|
1.40 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
0.97 |
- |
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Net Profit Margin (PBT/Sales) |
(%) |
|
- |
- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
2.40 |
- |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.07 |
- |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
3.04 |
0.00 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.31 |
94.20 |
LOCAL AGENCY FURTHER INFORMATION
ACQUISITION OF
UNIT
During the year, the Company has acquired Sponge Iron Unit of Grasim Industries
Limited as a slump sale for a total consideration of Rs. 10300.000 millions.
The unit is the only merchant producer of Gas based DRI in
CHANGE IN NAME
Welspun Group has acquired controlling stake in the Company and to
convey a Welspun Group Company, name of the Company has been changed to
“Welspun Maxsteel Limited” we.f. July 01, 2009.
With the change in name and new stakeholders, the Company is looking for
a good prospect for the years to come.
Form 8
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Corporate
identity number of the company |
U27100MP2008PLC020834 |
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Name of the
company |
WELSPUN MAXSTEEL LIMITED |
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Address of the
registered office or of the principal place of business in |
1/5, Parasi Mohalla, Chhavni, |
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This form is for |
Creation of
charge |
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Type of charge |
Book debts Movable property |
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Particular of
charge holder |
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Nature of
instrument creating charge |
General Letter of
Hypothecation and Term Loan Agreement dated February 10, 2010 entered into
between the Company and Allahabad Bank. |
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Date of
instrument Creating the charge |
10.02.2010 |
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Amount secured by
the charge |
Rs. 5000.000
Millions |
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Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest As per sanction
letter of Allahabad Bank Terms of
Repayment As detailed Term
Loan Agreement dated 10-02-2010 Margin As detailed Term Loan
Agreement dated 10-02-2010 Extent and
Operation of the charge As detailed in
attached deed of Hypothecation Others Nil |
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Particulars of
the property charged |
Term Loan I 1st charge on all
the assets, present and Future products, goods & movable property of any
kind of the Company. 2nd charge on all
current assets, the present and future stocks. Term Loan II Second charge on
all fixed assets, present and future products. As detailed in the attached
deed of hypothecation. ILC/FLC- First charged
on the assets acquired under L.C. |
FIXED ASSETS
Tangible Assets
- Land Freehold
- Buildings
- Plant and Machinery
- Office Equipments
- Furniture and Fixture
- Motor Vehicles
In Tangible Assets
- Goodwill
WEBSITE DETAILS
PROFILE
Subject was formed on 22 May, 2009 after Welspun Power and Steel Limited. completed the acquisition of Vikram Ispat, the Sponge Iron Business of Grasim Industries Limited.
Now part of the US$ 3 billion Welspun Group, the facility was set up in 1989 with design capacity of 0.75 million tons of Sponge Iron in the form of HBI (Hot Briquetted Iron) and an initial investment of Rs. 5250.000 millions.
Spread across 435 acres of land with a captive Port, the facility is located in the scenic beaches of Salav village in Raigad district of Maharashtra.
The facility today boasts of being the only natural
gas-based DRI plant for merchant sale in
The Company currently has a work force of more than 550 employees and has an installed capacity of 0.900 million ton per annum.
Subject takes pride in being the first and the only one of
its kind in the world to produce both HBI and DRI (Direct Reduced Iron) from
the same Reactor" using state of the art technology “HYL III” from HYLSA
of MEXICO and engineering expertise of Davy Dravo of USA. The facility is today
connected to the main gas grid of
It is worthy to mention that Welspun plans to invest approximately Rs. 60000.000 millions with 330 MW power project technology provided by HYLSA (now owned by Tenova) on this facility over the next 2-3 years. This expansion on Gas Based DRI, Electric Arc Furnace and Secondary metallurgy will boost high-end slab making. Welspun believes that this state-of-the-art facility marks a new level of excellence in product quality and will fulfill the Group's vision of being an integrated player from ‘Iron ore to Pipes'.
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.45.30 |
|
|
1 |
Rs.71.73 |
|
Euro |
1 |
Rs.60.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--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 |
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.