MIRA INFORM REPORT

 

 

Report Date :

20.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ZENITH BIRLA (INDIA) LIMITED

 

 

Registered Office :

1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point, Mumbai – 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

05.08.1960

 

 

Com. Reg. No.:

11773

 

 

Capital Investment / Paid-up Capital :

Rs.537.428 Millions

 

 

CIN No.:

[Company Identification No.]

L29220MH1960PLC011773

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Share are listed on Stock Exchange.

 

 

Line of Business :

Manufacturer and Exporter of Steel Pipes

 

 

No. of Employees :

500 (Approximately)

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 7391000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. 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.

 

 

INFORMATION PARTED BY (General Details)

 

Name :

Mr. K.V.S. Kumar

Designation :

Senior Marketing Executive

Contact No.:

91-9702020708

Date :

16.06.2011

 

 

LOCATIONS

 

Registered Office :

1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-22821122 / 66168400

Mobile No.:

91-9702020708/9987095114 (Mr. KVS Kumar)

Fax No.:

91-22-67933111

E-Mail :

share@zeinthsteelpipes.com

exports@zenithsteelpipes.com

isc@zenithsteelpipes.com

suresh.shenoy@yashbirlagroup.com

Website :

http://www.zenithsteelpipes.com

Area

10000 sq. ft.

Location

Owned

 

 

Corporate Office :

Vedant Commercial Complex, Building No. S – 2, 2nd Floor, Vartak Nagar, Pokhran Road No. 1, Thane – 400606, Maharashtra, India

Tel. No.:

91-22-67933059 / 67933047 / 67933000 / 55933121

Fax No.:

91-22-67933111 / 67933113

E-Mail :

share@zeinthsteelpipes.com

 

 

Factory :

Pipe Division

 

Khopali District Raigad - 410203, Maharashtra, India

Tel. No.:

91-2192-263321/22

Fax No.:

91-2192-262471

 

 

Branches :
  • 62/63, MIDC Area, Satpur, Nashik – 422007, Maharashtra, India

 

  • B – 15/3/1, MIDC Area, Walung District, Aurangabad - 431133, Maharashtra India

 

 

DIRECTORS

 

As on 31.03.2010

Name :

Mr. Yash Birla

Designation :

Chairman

 

 

Name :

Mr. P.V.R. Murthy

Designation :

Director

 

 

Name :

Mr. M.S. Arora

Designation :

Managing Director

 

 

Name :

Mr. D.V. Kapur

Designation :

Director

 

 

Name :

Mr. Augustine P Kurais

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. K.V.S. Kumar

Designation :

Senior Marketing Executive

 

 

Name :

Mr. Bhuvan

Designation :

H.R Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

155,709

0.15

Bodies Corporate

33,845,959

32.98

Any Others (Specify)

75,169

0.07

Societies

75,169

0.07

Sub Total

34,076,837

33.20

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

34,076,837

33.20

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3,955

-

Financial Institutions / Banks

1,274,279

1.24

Foreign Institutional Investors

5,694,622

5.55

Sub Total

6,972,856

6.79

(2) Non-Institutions

 

 

Bodies Corporate

19,052,959

18.57

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

21,803,314

21.25

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

19,849,752

19.34

Any Others (Specify)

872,258

0.85

Clearing Members

124,442

0.12

Trusts

1,447

-

Directors & their Relatives & Friends

14

-

Non Resident Indians

746,355

0.73

Sub Total

61,578,283

60.00

Total Public shareholding (B)

68,551,139

66.80

Total (A)+(B)

102,627,976

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

28,652,472

-

Sub Total

28,652,472

-

Total (A)+(B)+(C)

131,280,448

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Steel Pipes

 

 

Products :

ITC Code No.

Product Description

7306

Steel Pipes

8207

Tools

 

 

Exports :

 

Products :

Steel Pipes

Countries :
  • USA
  • Europe Countries 

 

 

Imports :

 

Products :

Raw Material

Countries :
  • Middle East

 

PRODUCTION STATUS AS ON 31.03.2010

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Steels Pipes

Tones

--

210000

115949@

 

@ Includes Nil of Steel Pipes Rolled outside (Previous year 9234 MTs) and excludes Nil (Previous year 17,836 MT) of semi finished Steel Pipes purchased and processed as finished goods.

 

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • OEM’s

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :
  • State Bank of India, Thane Branch, Maharashtra, India
  • Punjab National Bank
  • Bank of Baroda
  • Oriental Bank of Commerce
  • Bank of India 
  • The Shamrao Vithal Co-operative Bank Limited
  • Axis Bank

 

 

Facilities :

Secured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

Working Capital Loans from Banks

661.700

486.165

Term Loans from Foreign Institution

353.597

509.500

Term Loan from The Shamrao Vithal Co-operative Bank Limited

4.502

0.000

Term Loan from Axis Bank Limited

24.142

0.000

 

 

 

Total

1043.941

995.665

 

 

 

Unsecured Loans

 

 

Fixed Deposit

120.992

60.192

The State Industrial and Investment Corporation of Maharashtra Limited

0.000

5.443

Due to Bodies Corporate

11.200

41.364

Sales Tax Deferred Payment Loan

15.000

15.000

Interest accrued and due

0.000

15.633

 

 

 

Total

147.192

137.632

 

 

 

Vehicle Loans

 

 

Loans secured against specific vehicles

3.167

1.725

 

 

 

Total

3.167

1.725

 

Note:

 

1. Working Capital Loans from Banks are secured by hypothecation of inventories and or book debts and export incentives recoverable etc. and collaterally secured by way of first charge on the fixed assets.

 

2. Term Loan from Foreign Institution is secured by

a)       First charge (hypothecation) of all movable assets, both present and future including Plant and Machinery purchased out of this Term Loan with a second charge of these assets to existing working capital bankers, and

b)       Second charge (hypothecation) on overall existing movable and immovable assets including Plant and Machinery.

 

3. Term Loan from Shamrao Vithal Co-op Bank Limited is secured by an equitable mortgage of Land and Building and Hypothecation of Plant and Machinery, situated at village Isnapur, Medak Andhra Pradesh and Tarapur.

 

4. Term Loan from Axis Bank Limited is secured by mortgage of property located at 2nd Floor, Bldg., No. 2, Vedant Commercial Complex, Vartak Nagar, Thane (W) Including all rent receivable from the said property.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Thakur Vaidyanath Aiyar and Company

Chartered Accountants

Address :

Mumbai, Maharashtr,a india

 

 

Associates/Subsidiaries :
  • Zenith (USA) lnc.(Wholly owned)
  • Zenith Middle East FZE (Wholly owned)
  • Dagger Forst Tools Limited
  • Birla Precision Technologies Limited
  • Birla Power Solutions Limited
  • Birla Accu Cast Limited
  • Birla Global Corporate Private Limited
  • Birla Bombay Private Limited
  • Birla Cotsyn (India) Limited
  • Godavari Corporation Private Limited
  • Shearson Investment and Trading Co.
  • Viking Travels Private Limited
  • Birla Shloka Edutech Limited
  • Birla International Private Limited
  • Nirved Traders Private Limited
  • Birla Infrastructure Private Limited
  • Mounthill Investment Private Limited
  • Sonakshi Consultant Private Limited 
  • Asian Distributors Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

155500000

Equity Shares

Rs.10/- each

Rs.1555.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

53742859

Equity Shares

Rs.10/-each

Rs.537.428 Millions

 

Note :

 

Of the above Equity Shares-

 

  1. 4,36,444 Equity Shares were allotted as fully paid up Bonus Share by capitalisation of Reserves and Share Premium Account.

 

  1. 1,37,683 Equity Shares were issued and allotted to the Shareholders of erstwhile “The Indian Tool Manufacturers Limited” in terms of the Scheme of Amalgamation.

 

  1. 48,019 Equity Shares were issued on part conversion of loans into Equity.

 

  1. 1,57,745 Equity Shares were issued on part conversion of 13.5% Redeemable Convertible Debentures into Equity.

 

  1. 50,552 Equity Shares were issued and allotted to Term Lenders as per Scheme of Rehabilitation sanctioned by BIFR on 8th January,1996.

 

  1. 1,72,974 Equity Shares were issued and allotted to Term Lenders as per Scheme of Rehabilitation sanctioned by BIFR on 8th January,1996.

 

  1. 1,15,93,207 Equity Shares were issued and alloted on Conversion of 15.5% C C P S at a premium of Rs. 11/- per share based on the pricing formula as laid down in the Scheme of Rehabilitation approved by BIFR on 8th January, 1996.

 

  1. 1,36,70,315 Equity Shares issued and allotted to the Shareholders of erstwhile Tungabhadra Holdings Private Limited in terms of the Scheme of Amalgamation

 

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

537.428

400.725

400.725

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1310.361

1852.977

1749.526

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1847.789

2253.702

2150.251

LOAN FUNDS

 

 

 

1] Secured Loans

1043.941

995.665

754.520

2] Unsecured Loans

147.192

137.632

114.632

3] Vehicle Loans

3.167

1.725

1.819

TOTAL BORROWING

1194.300

1135.022

870.971

DEFERRED TAX LIABILITIES

45.991

15.870

0.000

 

 

 

 

TOTAL

3088.080

3404.594

3021.222

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

983.924

900.059

859.322

Capital work-in-progress

242.352

295.626

172.275

 

 

 

 

INVESTMENT

26.059

75.989

25.989

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1219.715
1161.703

1031.117

 

Sundry Debtors
911.218
537.370

655.355

 

Cash & Bank Balances
343.209
210.755

184.091

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
1953.712
2048.272

1878.417

Total Current Assets
4427.854
3958.100

3748.980

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2108.062

1548.827

 

Other Current Liabilities
3.891
6.789

1553.955

 

Provisions
480.156
269.564

231.389

Total Current Liabilities
2592.109
1825.180

1785.344

Net Current Assets
1835.745
2132.920

1963.636

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3088.080

3404.594

3021.222

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

4801.602

5829.598

4619.640

 

 

Other Income

246.935

123.816

114.230

 

 

TOTAL                                     (A)

5048.537

5953.414

4733.870

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing Expenses

261.631

290.345

329.744

 

 

Administrative Expenses

361.397

421.566

346.859

 

 

Raw Material Consumed

3641.555

3690.739

3068.034

 

 

Purchases for finished goods for trade

379.179

862.206

443.200

 

 

Salaries, Wages, Bonus, etc.

151.534

262.768

245.141

 

 

Increase/(Decrease) in Finished Goods

(189.056)

(50.056)

(56.209)

 

 

TOTAL                                     (B)

4606.240

5477.568

4376.769

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

442.297

475.846

357.101

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

190.030

217.996

81.085

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

252.267

257.850

276.016

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

52.604

50.146

46.632

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

199.663

207.704

229.384

 

 

 

 

 

Less

TAX                                                                  (H)

81.962

53.078

37.248

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

117.701

154.626

192.136

 

 

 

 

 

Less

Expenses in respect of earlier years

0.000

0.048

NA

 

 

 

 

 

 

Excess/(Short) Provision of Current Tax for Prior Period

1.885

(0.830)

NA

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

563.840

438.222

NA

 

 

 

 

 

Less

Net surplus for the year ended 31st March 2009, transferred to Birla Precision Technologies Limited on account of demerger of Tool Division

37.557

--

NA

 

 

 

 

 

Less

Adjusted on account of demerger of Tool Division as per the scheme of arrangement approved

206.855

--

NA

 

 

 

 

 

Less

Difference in book value of assets transferred on account of amalgamation of Tungabhadra Holdings Private Limited as per scheme of arrangement.

49.471

--

NA

 

 

 

 

 

Less

Net Deficit for the year ended 31st March 2009, transferred on account of amalgamation of Tungabhadra Holdings Private Limited as per Scheme of arrangement

2.720

--

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

8.969

--

NA

 

 

Proposed Equity Dividend

216.200

24.044

NA

 

 

Tax on Proposed Equity Dividend

35.908

4.086

NA

 

BALANCE CARRIED TO THE B/S

125.746

563.840

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

1982.203

2516.699

1553.569

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

696.955

525.139

185.238

 

 

Stores & Spares

0.482

27.786

6.965

 

TOTAL IMPORTS

697.437

552.925

192.203

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.23

3.86

4.79

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

(1st Quarter)

30.09.2010

(2nd Quarter)

31.12.2010

(3rd Quarter)

31.03.2011

(4th Quarter)

Net Sales

1298.300

1060.800

1383.100

1243.200

Total Expenditure

1199.900

959.400

1284.900

1226.200

PBIDT (Excl OI)

98.400

101.400

98.200

17.000

Other Income

0.000

0.000

0.000

0.000

Operating Profit

98.400

101.400

98.200

17.000

Interest

33.600

25.900

18.500

37.700

Exceptional Items

0.000

0.000

0.000

5.900

PBDT

64.800

75.500

79.700

(14.800)

Depreciation

13.300

13.300

13.400

7.300

Profit Before Tax

51.500

62.200

66.300

(22.200)

Tax

15.000

17.600

22.500

(6.200)

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

36.500

44.600

43.800

(16.100)

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

36.500

44.600

43.800

(16.100)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
2.33

2.60

4.06

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.16

3.56

4.97

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
3.69

4.27

10.67

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.11

0.09

0.11

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.05

1.31

0.83

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.71

2.17

2.10

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS :

(Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

 

 

 

Micro and Small Enterprises

0.000

0.000

NA

Others

2108.062

1548.827

NA

Total

2108.062

1548.827

NA

 

 

SCHEME OF ARRANGEMENT

 

The Scheme of Arrangement between the Company, Birla Precision Technologies Limited, Tungabhadra Holdings Private Limited and their respective shareholders has been sanctioned by the Honble High Court of Bombay on 8th January, 2010.  According to the Scheme, the Tooling Business of the Company has been demerged from the Company and merged with Birla Precision Technologies Limited Further, Tungabhadra Holdings Private Limited has been amalgamated with the Company.

 

In consideration of the transfer and vesting of the undertakings of Tungabhadra Holdings Private Limited in the Company, the Company has allotted 1,36,70,315 equity of Rs. 10/- each to the shareholders of Tungabhadra Holdings Private Limited in the ratio of 19 (nineteen) equity share of the face value of Rs. 10/- each of the Company for every 7 (seven) equity shares of the face value of Rs. 10/- each held in Tungabhadra Holdings Private Limited.

 

Birla Precision Technologies Limited in consideration for the transfer of and vesting of the assets and liabilities of the Tooling Business of Company, has allotted to the members of the Company, 2 (Two) Equity share of the face value of Rs. 21- each credited as fully paid up of Birla Precision Technologies Limited, for every 5 (five) Equity   shares of the face value of Rs. 10/- each credited as fully paid up held in the Company.

 

FINANCIAL HIGHLIGHTS

 

During the year , the net income of the Company has decreased to Rs. 5048.537 millions as compared to Rs. 5953.414 millions of previous year Profit after Tax (after prior period adjustments) for the financial year stood at Rs.  119.586 millions as against Rs.153.748 millions of previous year.

 

The decrease in net income and profit of the Company during the year  was mainly due to the demerger of Tooling Business of the Company.

 

ISSUE OF GLOBAL DEPOSITORY RECEIPTS

 

The Company has allotted 18,11,902 Global Depository Receipts on 28th May, 2010 representing 54,357,060 underlying Equity Shares of Rs. 10/- each (offering at Rs 19.10 each) at an offer price of USD 12.69 per Global Depositary Receipt aggregating to USD 23 million equivalent to  Rs.1038.200 millions.

 

 BONUS ISSUE

 

The Board of Directors in their meeting held on 24th June, 2010 has recommended a bonus issue of 1:5, i.e. one equity share of face value of Rs. 10/- each for every five equity share of face value of Rs. 10/- each held in the Company. The bonus issue is subject to approval of the shareholders in the ensuing Annual General Meeting.

 

 EXPORT PERFORMANCE

 

Exports turnover stood at Rs. 1982.203 millions for the year ended 31st March, 2010 as compared to Rs.2516.699 millions of previous year.

 

SUBSIDIARY COMPANY

 

The Accounts for the wholly owned Subsidiary Companies, M/s. Zenith (USA) Inc., and M/s. Zenith Middle East FZE have been received by the Company

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC SCENERIO :

 

Indian economy grew by 7.4% in 2009-10, however, in the quarter ended March, 2010, the economy grew by 8.6% which was much better than expected. The upward revision in the growth rate is mainly on account of higher performance in ‘agriculture, forestry and fishing’, ‘Mining and quarrying’ and Manufacturing. The growth for 2010-11 is being estimated at 8.5%. The index of Industrial Production in March 2010 stands at 347.3, which is 13.5% higher as compared to the level in March 2009. The cumulative growth for the year 2009-10 stands at 10.4% over the corresponding previous year.

 

There has been an expansion in global trade in recent months. India’s exports during April 2010 were valued at US $ 16.9 billion which was 36.2% higher than the level of US $ 12.4 billion during April 2009. Imports during April 2010 were registered at US $ 27.3 billion representing a growth of 43.3% over the level of imports valued at US $ 19.1 billion in April 2009. With the recent global developments and unfolding of the Greek crisis, global financial markets have been largely impacted due to higher risk aversion among investors. India, too, is witnessing some capital outflows and currency depreciation due to the impact of the ongoing Euro crisis.

 

INDUSTRY STRUCTURE :

 

The pipeline industry is an important part of manufacturing sector and is a major consumer of steel. The industry has benefited from economic growth and the increasing emphasis on infrastructure. The key economic driver for the industry includes water infrastructure, oil and gas exploration, transportation and power industry.

 

Today, pipes are the most preferred mode of transport for liquids and gases globally as they are safe and economical. Further, in comparison to rail and roads, they have lower operating cost per unit and also higher capacity. India has become the global pipe manufacturing hub primarily due to its lower cost, high quality and geographical advantages. Additionally, Indian companies have acquired global accreditations and certifications which make them preferred suppliers to most of the world’s top oil and gas companies in the Middle East, North America and Europe.

 

OUTLOOK :

 

Supported by good domestic economic growth, backed by well established brand image, global reach and focused approach, the Company is hopeful that the demand for the Companies steel pipes will continue to grow in future.

 

Company is also aggressively pursuing the plan to move up in the value chain by diversifying/expanding into higher technology products used by Oil/Gas industry and Auto component industry. The Company is also in the process of further improvising its performance by achieving organic and inorganic growth.

 

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011

 

(Rs. In Millions)

Particulars

 

31.03.2011

(Audited)

 

 

 

(a) Sales of Products and Export Incentives

 

5338.900

Less: Excise Duty

 

395.800

 

 

4943.000

(b) Other Operating Income

 

42.300

Total Income

 

4985.400

 

 

 

Expenditure

 

 

a) (Increase) / Decrease in stock in trade and work in progress

 

(236.400)

b) Consumption of raw materials

 

3717.700

c) Purchase of traded goods

 

270.100

d) Employees cost

 

168.700

e) Depreciation

 

47.300

f) Other expenditure

 

750.300

Total

 

4717.700

 

 

 

Profit from operations before other income, interest and exceptional Items

 

267.600

Other income

 

--

Profit before interest and exceptional Items

 

267.600

Interest

 

115.700

Profit after Interest but before Exceptional Items

 

151.900

Prior year adjustments

 

(5.900)

Profit from Ordinary Activities before tax

 

157.800

Tax expense

 

48.900

Profit from Ordinary Activities after tax

 

108.800

Extraordinary Items

 

--

Profit after extraordinary activities

 

108.800

Paid up equity share capital (Face value of Rs.10/- per share)

 

1312.800

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

 

1645.500

Earning per share (EPS)

 

 

Basic and diluted

 

0.84

Public shareholding

 

 

          Number of shares

 

97203611

          Percentage of shareholding

 

74.04%

Promoters and Promoters group Shareholding-

 

 

a) Pledged /Encumbered

 

 

Number of shares

 

1440000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

 

4.23%

Percentage of shares (as a % of total share capital of the company)

 

1.10%

 

 

 

b) Non  Encumbered

 

 

Number of shares

 

32636837

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

 

95.77%

Percentage of shares (as a % of total share capital of the company)

 

24.86%

 

 

STATEMENT OF ASSETS AND LIABILITIES AS AT 31ST MARCH, 2011

(Rs. In Millions)

Particulars

Year Ended

31.03.2011

 

 

Shareholders Fund

 

a) Share Capital

1362.300

b) Reserve and Surplus

1674.500

Net Deferred Tax Liability

44.500

Loan Funds

1228.900

Total

4310.200

 

 

Fixed Assets

1251.800

 

 

Investment

36.400

 

 

Current assets Loans and Advances

 

Inventories

1613.700

Sundry Debtors

352.000

Cash and Bank Balances

838.800

Loans and Advances

2782.800

 

 

Less:  Current Liability and Provision

 

a) Liabilities

2289.700

b) Provisions

275.600

 

 

Net Current Assets

3022.000

Total

4310.200

 

Notes :

 

  1. These results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 30th May, 2011

 

  1. The company has issued 1,08,10,000 Convertible Equity Share Warrants on 10th January, 2011 to the Promoters of the Company at an Issue price of Rs.21.40 per warrant. On 25th March 2011 the Company converted 15,60,000 Equity Share Warrants into 15,60,000 Equity Shares. Listing Approval is awaited from the Stock Exchanges. As on 31st March, 2011 92,50,000 Convertible Equity Share Warrants are outstanding.

 

  1. The Company operates in a single segment namely Pipes and hence the segment information is not furnished in the above standalone.

 

  1. Previous year figures have been regrouped / recasted, wherever necessary.

 

  1. There were no complaints from investors at the beginning of the last quarter of the year. As intimated by Registrars and Transfer Agents, the Company received 39 Complaints from the investors during the quarter, all Complaints were disposed off during the quarter and there were no Complaints lying unresolved at the end of the quarter

 

  1. The details of utilization of Public, issue proceeds of Rs. 1310.000 Millions ongoing project is given hereunder :

(Rs. in Millions)

Sr. no.

Particulars

Projected Amount

Balance amount to be spent

1.

Land and Site Development

4.200

0.000

2.

Building

157.600

83.500

3.

Plant and Machinery

715.700

629.800

4.

Miscellaneous Fixed Assets

4.700

3.700

 

Sub Total

882.200

717.000

5.

Preliminary and Pre-operative Expenses

15.000

9.800

6.

Public Issue Expenses

120.000

(1.000)

7.

Contingency

22.100

22.100

8.

Working Capital (Existing)

215.000

0.000

9.

Working Capital (Project)

55.700

55.700

 

Total

1310.000

803.600

 

 

FIXED ASSETS:

 

  • Land – Free Hold
  • Land – Lease Hold
  • Building
  • Plant and Machinery
  • Furniture, Fixtures and Equipments
  • Vehicles

 

 

Website Details:

 

 Company Profile:

 

Subject was incorporated in the year 1960. Its Steel Pipes Division located at Khopoli, 80 kms from Mumbai, went into production in a record time of eighteen months. This Division ranks as one of the pioneers amongst Steel Pipe manufacturers of India. Till 1971, Zenith manufactured Steel Pipes By ERW process. Thereafter, the manufacturing Process was converted to the latest technology of High Frequency Induction Welding (HFIW) process.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.93

UK Pound

1

Rs.72.43

Euro

1

Rs.63.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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

 

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.