MIRA
INFORM REPORT
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Report Date : |
17.05.2011 |
IDENTIFICATION DETAILS
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Name : |
MSP STEEL AND POWER LIMITED |
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Registered Office : |
1, Crooked Lane, Kolkata – 700 069, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.11.1968 |
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Com. Reg. No.: |
21 - 027399 |
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Capital Investment / Paid-up Capital : |
Rs.581.000
Millions |
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CIN No.: [Company
Identification No.] |
L27109WB1968PLC027399 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALM04906G |
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PAN No.: [Permanent
Account No.] |
AACCA2756N |
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Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Iron and Steel. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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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 8939000 |
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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 an established 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 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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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, Crooked Lane, Kolkata – 700 069, West |
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Tel. No.: |
91-33-22483795 / 4138 |
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Fax No.: |
91-33 22481738 |
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E-Mail : |
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Website : |
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Corporate Office : |
16/ S, Block 'A' New Alipore, Kolkata - 700
053, West |
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Tel. No.: |
91-33-24570038/ 24573940/
40057777 |
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Fax No.: |
91-33-24582239/ 40057788 |
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E-Mail : |
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Factory : |
P.O. and Village : Jamgaon, District – Raigarh, |
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Tel. No.: |
91-7762-2644-49/ 51/ 52/ 53 |
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Fax No.: |
91-7762-264450 |
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E-Mail : |
DIRECTORS
As on 31.03.2011
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Name : |
Mr. Puranmal Agrawal |
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Designation : |
Chairman and Whole-time Director |
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Name : |
Mr. Suresh Kumar Agrawal |
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Designation : |
Managing Director |
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Name : |
Mr. Manish Agrawal |
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Designation : |
Director |
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Name : |
Mr. Saket Agrawal |
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Designation : |
Director |
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Name : |
Mr. Navneet Jagatramka |
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Designation : |
Independent Director |
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Name : |
Mr. Arvind Kumar Saraf |
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Designation : |
Independent Director |
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Name : |
Mr. Amit Mehta |
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Designation : |
Independent Director |
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Name : |
Mr. Niranjan Dash |
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Designation : |
Independent Director |
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Name : |
P. K Gupta |
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Designation : |
Independent Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of
Promoter and Promoter Group |
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1,979,000 |
3.41 |
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39,734,500 |
68.39 |
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41,713,500 |
71.80 |
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Total shareholding
of Promoter and Promoter Group (A) |
41,713,500 |
71.80 |
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(B) Public
Shareholding |
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312,470 |
0.54 |
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370,128 |
0.64 |
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682,598 |
1.17 |
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9,005,880 |
15.50 |
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4,809,847 |
8.28 |
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1,692,707 |
2.91 |
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195,468 |
0.34 |
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140,504 |
0.24 |
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54,964 |
0.09 |
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15,703,902 |
27.03 |
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Total Public shareholding
(B) |
16,386,500 |
28.20 |
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Total (A)+(B) |
58,100,000 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
58,100,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturer of Iron and Steel. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Pellet Plant |
M.T. |
300000 |
144643 |
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Sponge Iron |
M.T. |
192000 |
155851 |
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MS Ingot/ Billet |
M.T. |
144109 |
107579 |
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TMT Bar |
M.T. |
80000 |
68385 |
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Structural Rolling Mill |
M.T. |
128000 |
1099 |
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Captive Power Plant |
Kwh |
190080000 |
161783321 |
Notes:
Since the industry in which the Company operates is de-licensed, the requirement for disclosure of licensed capacity is not applicable.
GENERAL INFORMATION
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Customers : |
As on
31.03.2009
Maheswari Ispat Limited |
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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 : |
S.R. Batliboi and Company Chartered Accountants |
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Subsidiary Company; |
MSP Group International (w.e.f. 1st April 2009) |
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Jointly Controlled Entity: |
Madanpur South Coal Company Limited |
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Group Company : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
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15000000 |
6% Non Cumulative Preference Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Total |
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Rs. 750.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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58100000 |
Equity Shares |
Rs.10/- each |
Rs.581.000
Millions |
Note:
- 71800 equity shares of Rs.10/- each were allotted as fully paid up
for consideration other than cash
- 4754300 equity shares of Rs.10/- each were allotted as fully paid bonus
shares by capitalization of securities premium
As on 29.09.2010
Authorised Capital : Rs. 970.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 656.400 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
581.000 |
581.000 |
581.000 |
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2] Share Application Money |
222.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1431.880 |
1111.338 |
717.604 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2234.880 |
1692.338 |
1298.604 |
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LOAN FUNDS |
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1] Secured Loans |
4247.442 |
2494.424 |
1800.965 |
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2] Unsecured Loans |
363.271 |
232.500 |
252.129 |
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TOTAL BORROWING |
4610.713 |
2726.924 |
2053.094 |
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DEFERRED TAX LIABILITIES |
198.579 |
158.295 |
92.525 |
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TOTAL |
7044.172 |
4577.557 |
3444.223 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2558.863 |
2272.760 |
1346.675 |
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Capital work-in-progress |
2221.742 |
996.723 |
796.552 |
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PRE-OPERATIVE AND TRIAL RUN EXPENSES (PENDING ALLOCATION) |
232.355 |
55.347 |
39.786 |
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INVESTMENT |
449.542 |
67.279 |
61.017 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
683.401
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393.376
|
463.347 |
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Sundry Debtors |
668.372
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418.025
|
665.628 |
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Cash & Bank Balances |
378.700
|
194.043
|
215.132 |
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Other Current Assets |
0.639
|
0.499
|
0.000 |
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Loans & Advances |
541.354
|
425.657
|
471.201 |
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Total
Current Assets |
2272.466
|
1431.600 |
1815.308 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
581.160
|
190.521
|
555.089 |
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Other Liabilities |
61.172
|
25.177
|
17.116 |
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Provisions |
48.464
|
30.454
|
48.262 |
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Total
Current Liabilities |
690.796
|
246.152 |
620.467 |
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Net Current Assets |
1581.670
|
1185.448 |
1194.841 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
5.352 |
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TOTAL |
7044.172 |
4577.557 |
3444.223 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
3887.448 |
3988.621 |
3607.249 |
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Other Income |
71.090 |
150.068 |
148.992 |
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TOTAL (A) |
3958.538 |
4138.689 |
3756.241 |
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Less |
EXPENSES |
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|
|
|
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|
Increase/ Decrease in stocks |
(59.615) |
11.451 |
(125.036) |
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Excise duty and cess on stocks |
8.024 |
(10.348) |
8.268 |
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Raw Material Consumed |
2289.277 |
2870.898 |
2136.009 |
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Purchase of Trading Goods |
381.719 |
37.455 |
580.014 |
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Personal Cost |
119.384 |
74.334 |
53.784 |
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Manufacturing, Selling and Administrative Expenses |
504.617 |
388.690 |
283.684 |
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Prior Period Expenses |
3.063 |
6.132 |
0.000 |
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TOTAL (B) |
3246.469 |
3378.612 |
2936.723 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
712.069 |
760.077 |
819.518 |
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|
Less |
FINANCIAL
EXPENSES (D) |
204.043 |
194.241 |
141.540 |
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
508.026 |
565.836 |
677.978 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
125.735 |
74.113 |
73.406 |
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PROFIT BEFORE
TAX (E-F) (G) |
382.291 |
491.723 |
604.572 |
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Less |
TAX (I) |
61.749 |
92.819 |
137.948 |
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PROFIT AFTER TAX
(G-I) (J) |
320.542 |
398.904 |
466.624 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1105.779 |
706.875 |
240.251 |
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BALANCE CARRIED
TO THE B/S |
1426.321 |
1105.779 |
706.875 |
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EARNINGS IN
FOREIGN CURRENCY |
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FOB Value of Export (excluding sales made to |
314.235 |
470.682 |
56.414 |
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TOTAL EARNINGS |
314.235 |
470.682 |
56.414 |
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IMPORTS |
|
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Capital Goods |
7.951 |
27.421 |
126.001 |
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|
Stores, Spares and Consumables |
1.167 |
2.833 |
2.732 |
|
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|
Raw Materials |
71.179 |
0.000 |
0.000 |
|
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TOTAL IMPORTS |
80.297 |
30.254 |
128.733 |
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Earnings Per
Share (Rs.) |
5.52 |
6.87 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) (Unaudited) |
30.09.2010 (2nd
Quarter) (Unaudited) |
31.12.2010 (3rd
Quarter) (Unaudited) |
|
Net Sales |
1070.510 |
988.720 |
1441.560 |
|
Total Expenditure |
861.620 |
754.380 |
1085.770 |
|
PBIDT |
208.890 |
234.340 |
355.790 |
|
Other Income |
0.220 |
8.240 |
2.380 |
|
Operating Profit |
209.110 |
242.580 |
358.170 |
|
Interest |
56.000 |
58.130 |
63.210 |
|
Exceptional Items |
(0.380) |
(0.010) |
(2.990) |
|
PBDT |
152.720 |
184.440 |
291.970 |
|
Depreciation |
42.270 |
42.740 |
41.400 |
|
Profit Before Tax |
110.450 |
141.700 |
250.570 |
|
Tax |
24.240 |
31.430 |
60.470 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
86.210 |
110.270 |
190.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
86.210 |
110.270 |
190.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.10
|
9.64 |
12.42 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
9.83
|
12.33 |
16.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.91
|
13.27 |
19.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.29 |
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.37
|
1.76 |
2.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.29
|
5.81 |
2.92 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, a part of the MSP group, is a Kolkata-based steel manufacturer. The company is engaged in the production of iron and steel. The company has a diversified portfolio, including sponge iron, steel, power generation, rolling mills and ferro alloys. They market their TMT bars under the brand name of MSP Gold Theremax TMT. They are having their manufacturing unit at Raigarh in Chattisgarh. Subject was incorporated on November 18, 1968 as Adhunik Rollers Private Limited. The name of the company was changed to MSP Steel and Power Private Limited on March 7, 2003. The company subsequently became a public company under the name of MSP Steel and Power Limited with effect from September 9, 2003. During the year 2005-06, the company started commercial production of their second 300 TPD Sponge Iron Kiln, Induction furnace and 16MW Power Plant, in the Raigarh Project. In April 2006, rolling division mill started commercial production. In June 2006, the company came out with the public issue of Rs.160.000 millions and in July 2006, the company shares got listed in Bombay Stock Exchange and National Stock Exchange. During the year 2006-07, the company started commercial production of their Coal Washery, MS Billets and additional 8 MW Power Plant. They also started operations of their private railway siding. During the year, The Ministry of Coal, Government of India, granted allocation of Coal Block of Madanpur (South) jointly with four other companies which will work through a joint venture company named Madanpur South Coal Company Limited In May 4, 2007, the company signed a memorandum of understanding (MoU) with the government of Chhattisgarh for their expansion programme in the state of Chhattisgarh with proposed investment of Rs.8500.000 millions. During the year 2007-08, the company entered into a MoU with Madhya Pradesh State Government to setup two million tonnes cement plant. In December 2008, the pellet plant having the production capacity of 300,000 MTPA was commissioned on trial basis and in March 2009, they started commercial operations. During the year, some of the company's expansion projects are under progress which include Structural Rolling mill having capacity of 128,000 MTPA, 132 KVA Line, Raw material handling system, 350 MTPA Sponge Iron Plant, 18 MW Power Plant, 383,625 MTPA Coal Washery and 30 MW Power Plant. Captive Coal Block of Madanpur South Coal Company Limited, which was allotted to the company by Government of Chattisgarh is progressing as scheduled and will be commissioned during the year 2010-11.
OPERATIONAL REVIEW: The financial year 2009-2010 can be described as one of recovery from global economic crises. The Indian steel Industry witnessed an upward trend during the previous year. It has huge scopes in the future with massive scale of infrastructural development happening all across the country. This upward trend is expected to be continued on account of favourable conditions like competitive prices
increase
in consumption of steel owing to upcoming infrastructure and
In March 2010, the company commissioned a 128,000 TPA structural rolling mill in Raigarh to manufacture steel angles, beams, joists and channels. The manufacture of these products altered their exposure from vulnerable sectors to value added infrastructure and power sector segments.
The company achieved net turnover of Rs. 39,58.538 Millions and profit before tax of Rs. 3,82.291 Millions. The company recorded net profit after taxes of Rs. 3,20.542 Millions and earned cash profit before tax of Rs. 4,86.561 Millions.
PROTECTS and EXPANSION PLANS: Project commissioned during FY 2009-10: Structural Rolling mill having capacity of 1,28,000 MTPA was commissioned in the year 2009-2010 in Raigarh to manufacture steel angles, joists and channels.
In October 2009, the company has received plug-in with the state utility’s 132 KVA line, which enabled to market power to the open market.
Project under progress
The company has lined up a number of business-strengthening initiatives for 2010-11:
They expect to commission the first phase of the 1,15,000-tonne sponge iron plant by September 2010 and the second phase of 1,15,000 tonnes by June 2011 (financial closure achieved). This expansion will enhance their total sponge iron capacity to 0.422 Millions TPA.
In sync with sponge iron capacity expansion, they intend to bring on stream our 18 MW power plant (16 MW WHRB and balance based on coal). While around 30 percent of the capacity will address captive requirements, the rest will be deployed for profitable merchant sales. They expect to commission another 34 MW (thermal) by April 2012 at their Raigarh unit for merchant sales (financial closure in process).
They are undertaking an expansion at their coal Washery to raise their overall capacity by 3,40,000 tpa for Rs 600.000 Millions (financial closure achieved).The construction of a 2.4-km railway siding has reduced transportation costs on the one hand and eased logistics on the other.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT Business Review
The
Steel industry in
Recently,
Steel Minister, Mr. Virbhadra Singh said that India will become the world's
second-largest steel producer by 2012, more than doubling its capacity to 124
million tonnes (MT) as part of the push being given to assist overall
infrastructure development. Steel production rose 4.2 per cent to reach 60 MT
in 2009-2010. According to the Ministry of Steel, 222 memorandum of
understanding (MoUs) have been signed with various states for planned capacity
of around 276
Domestic steel demand is expected to increase by 10% to 66 million tonnes in FY10, since it troughed in FY09. This also compares favourably with an expected 8% increase in global demand in FY10. The increase in demand from the automobiles, infrastructure and construction sectors, which account for ~ 85% of the total domestic demand, has triggered the speedy recovery. The revival has increased the demand for steel and pushed up its prices. The country’s steel consumption increased to 56.3 MT in the 12 months to March 2010 from 52.3 MT in the previous year, as per the Ministry of Steel.
The Financial year 2009-10 will be remembered by the company because the operating model underwent a fundamental change from one that was market-driven to one that gradually emerged as market driving. Till February 2010, the company manufactured and marketed sponge iron, MS ingots and TMT. These products were affected by demand-supply vagaries as they figured relatively low in the value chain. In March 2010, the company commissioned a 128,000 TPA Greenfield structural rolling mill in Raigarh to manufacture steel angles, beams, joists and channels. The manufacture of these products altered our exposure from vulnerable sectors to value-added infrastructure and power sector segments. This business model interplay of valueadded steel and merchant power sales will enhance our profitability and sustainability.
Road ahead
Iron
and steel industry is one of the fastest growing industries in
Performance Review of the Company
At subject, their respect is derived from their ability to make superior quality of steel over their ability to manufacture a growing volume. The total overall performance of the company is quite good. Here's a brief outline of the product wise performance:
i) Pellet Plant
Pellet production was 1,44,643 MT as compared to 16,486 Mt during last year
ii) Sponge Iron
The production of Sponge Iron increased to 1,55,851 MT as compared to 1,24,896 MT in the last year.
iii) Power Generation
The total power generation is 16,17,83,321 KWH as compared to 13,70,88,268 KWH during the last year.
iv) Ingot/Billets
The production of Ingot/Billets has increased to 1,07,579 MT as against last year’s production of 95,078 MT.
v) TMT Bars
The production of TMT Bar was 68,385 MT as compared to 56,506 MT during last year.
vi) Structural Rolling Mill
The trial production had just started in March 2010. The total production is 1,099 MT.
Outlook:
The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. The government is backing the industry through favorable industrial reforms, while the private sector is supporting it with investments worth billions of dollars. Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors.
The future of the Indian steel industry is definitely optimistic. In this journey of progress, the Indian steel industry has also taken significant steps in improvement of productivity, conservation of natural resources and energy, import substitution, quality upgradation; environment management and research and development
With an impressive track record, the country
has become a reputed name in the world steel industry. Global steel giants from
all over the world have shown interest in the industry because of its
phenomenal performance. For instance - the crude steel production in
The global economic slowdown hampered the growth curve of various steel intensive industries such as construction in 2009 and its impact also fell on steel demand. However, the government proactive incentive plans to boost economic growth by injecting funds in various industries like construction, infrastructure automobile and power will help the steel industry to again achieve its previous growth trajectory.
Steel
consumption in
Financial Performance:
The company's performance during the year 2009-2010 can be described as one of recovery from the global economic crises.
Raw material costs increased faster than steel realisations, which lead to a decline in post-tax profit. However this downtrend is expected to correct; with realizations rising adding to a full year’s working of value-added structural steel capacity, The Company expects to grow profits and profitability over 2010-11 and beyond.
Profile
The year 1996. MSP
Group embarked on its journey in the steel industry in a modest manner. An
18000 TPA MS Ingot plant was set up in
A lesson was learnt - the key to survival lay in integration along the value
chain of production. As a part of this drive a Re - Rolling mill was
established in 1998 for production of high quality construction bars. Looking
into the huge potential that lay in making its own raw material for steel
melting, the company was among the pioneers in setting up a mini sponge iron
plant in the year 1999.
Following its principle of integration and capacity expansion, the group has
risen to one of the leading secondary steel manufacturers in
Promoters
The group
Chairman, Mr. Puran Mal Agarwal, has with his wealth of experience and keen
foresight led the group over the years. He is aptly supported by his younger
brother, Mr. Suresh Kumar Agrwal, B. E. Mechanical, who provides the technical
support for all projects. They are assisted by their sons Manish and Saket, both
MBA's, who with their dynamism and commercial acumen have injected fresh
enthusiasm into the group and aid in speedy and timely implementation of all
projects. They are supported by a highly qualified team of professionals.
GROUP PROFILE:
The year 1996. MSP Group embarked on its
journey in the steel industry in a modest manner. An 18000 TPA MS Ingot plant
was set up in
A lesson was learnt - the key to survival lay in integration along the value
chain of production. As a part of this drive a Re - Rolling mill was
established in 1998 for production of high quality construction bars. Looking
into the huge potential that lay in making its own raw material for steel
melting, the company was among the pioneers in setting up a mini sponge iron
plant in the year 1999.
Following its principle of integration and capacity expansion, the group has
risen to one of the leading secondary steel manufacturers in
Management Team
· MR. PURAN MAL AGARWAL: The 'Key Man' who envisioned the various projects, made planning and implemented the same successfully. Engaged in steel business for the last 27 years. He is the Chairman of the company, looking after and in control of overall matters.
·
MR.
SURESH KUMAR AGARWAL: Engaged in steel business for the last 22 years.
B.E.(Mech.) from
· MR. P.K. DEY: Associated with steel industry for the last 17 years. M.B.A, LLB. He is legally & technically sound and looking after the HRD, Mining, Liaison & all kinds of Public Relation matters of the various projects of the company.
·
MR.
MANISH AGARWAL: Commerce Graduate from St. Xavier's College, Kolkata and
MBA from IMI,
·
MR. SAKET
AGARWAL: Commerce Graduate from St. Xavier's College, Kolkata and MBA from
IMI,
· MR. D. SINGH: Associated with steel industry for the last 47 years, Bsc.
· MR. KAMAL KUMAR JAIN: Associated with industries for the last 12 years, ACA, ACS.
MR. B.K. SINGH: Associated with
steel industry for the last 20 years, BE MECHANICAL).
Contingent Liabilities not provided for in respect
of:
|
Particulars |
As on 31.03.2010 (Rs. in Millions) |
As on 31.03.2009 (Rs. in Millions) |
|
Excise Matters under dispute/ appeal |
39.297 |
8.157 |
|
Sales Tax Matters under dispute/ appeal |
3.420 |
14.169 |
|
Un expired Bank Guarantees and Letter of Credit |
60.374 |
91.005 |
|
Cess on Power Generation |
NA |
NA |
|
Claims against the company not acknowledged as debt |
6.067 |
0.000 |
|
Total |
109.158 |
113.331 |
A
search and Seizure was conducted by the Excise Department at the Company’s
Plant at Raigarh on 17th February, 2009. During the current year,
the excise department has returned back the documents relating to consumption
of raw materials and production which were seized by the said department. The
show cause cum demand notice for Rs. 5.581 Millions received from the
department has been considered as contingent liability and included in (a)
above.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs.
in Millions)
|
Particulars |
31.12.2010 Quarter Ended |
31.12.2010 9 Months Ended |
|
Sales/ Income |
1308.533 |
3438.207 |
|
Less: Excise Duty |
94.730 |
267.061 |
|
a) Net Sales / Income from Operations |
1213.803 |
3171.146 |
|
b) Other Operating Income |
227.763 |
329.640 |
|
Total Operating Income |
1441.566 |
3500.786 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(173.465) |
(308.465) |
|
(b) Consumption of Raw Materials |
835.919 |
2097.406 |
|
(c) Purchase of traded goods |
234.935 |
349.133 |
|
(d) Employees Cost |
35.494 |
107.501 |
|
(e) Depreciation |
41.401 |
126.414 |
|
(f) Other Expenditure |
152.881 |
456.184 |
|
Total Expenditure |
1127.166 |
2828.174 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
314.400 |
672.612 |
|
Other Income |
2.375 |
10.836 |
|
Profit/(Loss) before Interest and Exceptional items |
316.775 |
683.448 |
|
Interest |
63.212 |
177.348 |
|
Profit / (Loss) after interest before Exceptional items |
253.563 |
506.100 |
|
Prior Period Items (Net) |
2.989 |
3.380 |
|
Profit / (Loss) From
Ordinary activities before Tax |
250.574 |
502.720 |
|
Provision for Taxation |
|
|
|
- Current Tax |
51.899 |
102.424 |
|
- MAT Credit Entitlement |
30.281 |
(10.772) |
|
- For Earlier Years |
0.000 |
0.000 |
|
- Differed Tax Charge |
(21.709) |
24.483 |
|
- Fringe Benefit Tax |
0.000 |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
190.102 |
386.585 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
5810 |
5810 |
|
Reserves (Excluding Revaluation Reserves) |
0.000 |
0.000 |
|
Earning Per Share |
|
|
|
-Basic and Diluted |
3.27 |
6.65 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
16386500 |
16386500 |
|
- Percentage of shareholding |
28.20% |
28.20% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
4330000 |
4330000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
10.38% |
10.38% |
|
- Percentage of shares(as a % of the total share capital of the company) |
7.45% |
7.45% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
37383500 |
37383500 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
89.62% |
89.62% |
|
- Percentage of Share (as a % of the total share capital of the company) |
64.35% |
64.35% |
Notes:
- The Company has only one business segment “Iron and Steel”
- There was no exceptional / extraordinary item during the respective
periods reported above.
- the status of investors complaints for the quarter ended 31.12.2010
Opening – Nil Received - Nil
Cleared – Nil
Closing - Nil
- The above unaudited financial results were reviewed by the audit
committee and approved by the board of directors at its meeting held on
18.01.2011
- The company had paid an amount of Rs. 29.050 Millions as dividend
during the quarter, which was declared earlier for the financial year
2009-10 and Rs. 4.937 Millions as tax on the same.
- Previous period figures have been regrouped/ rearranged wherever
considered necessary.
Fixed Assets:
- Land
- Factory Buildings
- Non Factory Buildings
- Plant and Machinery
- Vehicles
- Furniture and Fixtures
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.45.07 |
|
|
1 |
Rs.72.97 |
|
Euro |
1 |
Rs.63.57 |
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 |
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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.