%20LIMITED%20-%20155447%2030-Sep-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
30.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
ZENITH BIRLA ( |
|
|
|
|
Registered
Office : |
1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point,
Mumbai – 400 021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
05.08.1960 |
|
|
|
|
Com. Reg. No.: |
11-011773 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1312.804
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29220MH1960PLC011773 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of Steel Pipes. |
|
|
|
|
No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 12147000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having moderate track records. Trade relations are reported
as fair. Business is active. Payments are reported to be slow but correct. The company can
be considered for business dealings with some cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point,
Mumbai – 400 021, |
|
Tel. No.: |
91-22-22821122/ 66168400 |
|
Mobile No.: |
91-9702020708/ 9987095114 (Mr. KVS Kumar) |
|
Fax No.: |
91-22-22047835/ 67933111 |
|
E-Mail : |
|
|
Website : |
|
|
Area |
10000 sq. ft. |
|
Location |
Owned |
|
|
|
|
Corporate Office : |
Vedant Commercial Complex, Building No. S–2, 2nd Floor,
Vartak Nagar, |
|
Tel. No.: |
91-22-67933059/ 67933047/ 67933000 |
|
Fax No.: |
91-22-67933111/ 67933113 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Khopoli Unit: Taluka Khopali, District Raigad – 410 203, |
|
Tel. No.: |
91-2192-263321/22 |
|
Fax No.: |
91-2192-262471 |
|
|
|
|
Factory 2 : |
Murbad Unit: Survey (Gut) No. 440/441, Village Nhave, Taluka Murbad, District
Thane, Maharashtra, India |
|
|
|
|
Factory 3 : |
Tarapur Unit: G-38/39, Tarapur Industrial Area, Village Saravali, Taluka Palgar,
District Thane, |
|
|
|
|
Branch Office 1 : |
62/63, MIDC Area, Satpur, Nashik – 422 007, |
|
|
|
|
Branch Office 2 : |
B–15/3/1, MIDC Area, Walung District, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Yashovardhan Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. M.S. Arora |
|
Designation : |
Managing Director |
|
Date of Birth/ Age : |
49 Years |
|
Qualification : |
B.E. (Mech) |
|
Experience : |
25 Years |
|
Date of Appointment : |
15.03.2007 |
|
|
|
|
Name : |
Mr. P.V.R. Murthy |
|
Designation : |
Non Executive and Non-Independent Director |
|
Date of Birth/ Age : |
21.04.1951 |
|
Qualification : |
FCA, MBA, LL.B |
|
Expertise in specific functional area : |
Shri P.V.R.
Murthy, aged 58 years, is a Chartered Accountant and MBA by academic
qualification. He has almost 30 years of experience in the finance sector. He
has worked as a part of the Top Management with various companies over a span
of 16 years in the capacity of Managing Director, CEO and Advisor prior to
joining the Yash Birla Group (YBG) of Companies. At YBG, he is looking after
Financial Resource Management of all the group companies, Business
restructuring, Disinvestments, Merger and Acquisitions, MIS, Management,
Internal And Statutory audit, Integrated ERP systems across group companies,
Corporate Governance, Investments, in new projects, expansion/
diversification of the existing Group Companies etc. |
|
Date of Appointment : |
27.07.2009 |
|
Directorship held in other companies : |
1. Birla Power Solutions Limited 2. Melstar Information Technologies Limited 3. Birla Pacific Medspa Limited 4. Birla Cotsyn ( 5. Birla Precision Technologies Limited 6. Birla Surya Limited 7. Birla Edutech Limited 8. Birla Infrastructure Limited 9. Birla Urja Limited 10. Birla Energy Infra Limited 11. Birla Research and Lifesciences Limited 12. Birla Integrated Textile Park Limited |
|
|
|
|
Name : |
Mr. D.V. Kapur |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Augustine P. Kurias |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Aniruddha Barwe |
|
Designation : |
Independent Director (till 5th October 2010) |
|
|
|
|
Name : |
Mr. Anoj Menon |
|
Designation : |
Independent Director (from 13th November 2010) |
|
Date of Birth/ Age : |
03.02.1973 |
|
Qualification : |
B.Com and LL.B |
|
Expertise in specific functional area : |
Shri Anoj Menon,
aged 37 years is a B.Com and LLB, working as a partner at Desai and Diwanji,
Advocates and Solicitors. He is a Corporate Lawyer specializing in Mergers
and Acquisitions, Private Equity Investment, Private Investment in Public
Equity, Corporate Advisory, Foreign Direct Investment, Capital Markets, SEBI
Laws, Drug Laws and Dispute Resolution. Shri Anoj Menon has an experience of
over 14 years in this field. |
|
Date of Appointment : |
13.11.2010 |
|
Directorship held in other companies : |
1. Melstar Information Technologies Limited 2. Birla Pacific Medspa Limited 3. Birla Shloka Edutech Limited |
KEY EXECUTIVES
|
Name : |
Mrs. Harsha Kedia |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
155,709 |
0.14 |
|
|
33,845,959 |
30.21 |
|
|
75,169 |
0.07 |
|
|
75,169 |
0.07 |
|
|
34,076,837 |
30.41 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
34,076,837 |
30.41 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,955 |
- |
|
|
1,159,839 |
1.04 |
|
|
4,700,000 |
4.19 |
|
|
5,863,794 |
5.23 |
|
|
|
|
|
|
21,941,381 |
19.58 |
|
|
|
|
|
|
24,117,528 |
21.52 |
|
|
23,957,819 |
21.38 |
|
|
2,090,617 |
1.87 |
|
|
1,084,435 |
0.97 |
|
|
1,447 |
- |
|
|
14 |
- |
|
|
1,004,721 |
0.90 |
|
|
72,107,345 |
64.35 |
|
Total Public shareholding (B) |
77,971,139 |
69.59 |
|
Total (A)+(B) |
112,047,976 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
19,232,472 |
- |
|
|
19,232,472 |
- |
|
Total (A)+(B)+(C) |
131,280,448 |
- |
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SocietiesBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Steel Pipes. |
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|
|
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|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity (Per Annum) (*) |
Production |
|
Steel Pipes |
Tonnes |
210000 |
107782 |
|
|
|
|
|
(*) As Certified by the Technical Personnel and being technical matter,
accepted as correct by Auditors.
GENERAL INFORMATION
|
No. of Employees : |
500 (Approximately) |
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|
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|
Bankers : |
v
State Bank of v Punjab National Bank v
Bank of v Oriental Bank of Commerce v
Bank of v The Shamrao Vithal Co-operative Bank Limited v Axis Bank |
||||||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
Note: (i) Working
Capital Facility 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. (ii) Term Loan
from Foreign Institution is secured by (a) First charge
(hypothecation) of all movable assets, 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. (iii) Term Loan
from Axis Bank Limited is secured by mortgage of property located at 2nd
Floor, Building No.2, Vedant Commercial Complex, Vartak Nagar, Thane (West)
Including all rent receivable from the said property.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Thakur, Vaidyanath Aiyar and Company Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Subsidiaries : |
v
Zenith (USA) Inc.(Wholly owned) v
Zenith Middle East FZE (Wholly owned) |
|
|
|
|
Enterprises
Owned or significantly influenced by key management personnel or their
relatives : |
v
Birla Machining and Toolings Limited v
Birla Precision Technologies Limited v
Birla Power Solutions Limited v
Birla AccuCast Limited v
Birla Global Corporate Private Limited v
Birla Bombay Private Limited v
Birla Cotsyn ( v
Godavari Corporation Private Limited v
Shearson Investment and Trading Company v
Birla Viking Travels Limited v
Birla Shloka Edutech Limited v
Birla International Private Limited v
Nirved Traders Private Limited v
Birla Infrastructure Private Limited v
Mounthill Investment Private Limited v
Sonakshi Consultant Private Limited v
Asian Distributors Private Limited v
Melstar Information Technologies Limited v
Yash Society |
CAPITAL STRUCTURE
As on 31.03.2011
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 |
|
131280448 |
Equity Shares |
Rs.10/- each |
Rs.1312.804
millions |
|
|
|
|
|
Note: Of the above
Equity Shares-
(a) 4,36,444
Equity Shares were allotted as fully paid up Bonus Share by capitalisation of Reserves
and Share Premium Account.
(b) 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.
(c) 48,019 Equity
Shares were issued on part conversion of loans into Equity.
(d) 1,57,745
Equity Shares were issued on part conversion of 13.5% Redeemable Convertible
Debentures into Equity.
(e) 50,552 Equity
Shares were issued and allotted to Term Lenders as per Scheme of Rehabilitation
sanctioned by BIFR on 8th January, 1996.
(f) 1,72,974
Equity Shares were issued and allotted to Term Lenders as per Scheme of
Rehabilitation sanctioned by BIFR on 8th January,1996.
(g) 1,15,93,207
Equity Shares were issued and allotted 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.
(h) 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.
(i) The Company
has allotted on 28th May, 2010, 5,43,57,060 Equity Share of Rs.10/-
each on conversion of 18,11,902 Global Depository Receipts each Global
Depository Receipt representing 30 Equity Shares.
(j) The Company
has allotted 2,16,20,529 equity share, on 17th August, 2010, to the eligible
shareholders of the Company as Bonus Shares in the ratio of ONE new fully paid up Equity
Share for every FIVE Equity
Share of Rs. 10/- each held in the Company as on the record date i.e. 12th
August, 2010.
(k) On 25.03.2011,
total 15,60,000 convertible equity share warrants were converted into equity
shares. Balance warrants outstanding for conversion as on 31.03.2011 are
92,50,000.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1312.804 |
537.428 |
400.725 |
|
|
2] Share Application Money |
49.488 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1674.547 |
1310.361 |
1852.977 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3036.839 |
1847.789 |
2253.702 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
854.415 |
1043.941 |
995.665 |
|
|
2] Unsecured Loans |
372.617 |
147.192 |
137.632 |
|
|
3] Vehicle Loans |
1.827 |
3.167 |
1.725 |
|
|
TOTAL BORROWING |
1228.859 |
1194.300 |
1135.022 |
|
|
DEFERRED TAX LIABILITIES |
44.533 |
45.991 |
15.870 |
|
|
|
|
|
|
|
|
TOTAL |
4310.231 |
3088.080 |
3404.594 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
946.552 |
983.924 |
900.059 |
|
|
Capital work-in-progress |
305.220 |
242.352 |
295.626 |
|
|
|
|
|
|
|
|
INVESTMENT |
36.449 |
26.059 |
75.989 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1613.701
|
1219.715
|
1161.703
|
|
|
Sundry Debtors |
351.976
|
911.218
|
537.370
|
|
|
Cash & Bank Balances |
838.816
|
343.209
|
210.755
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2782.801
|
1953.712
|
2048.272
|
|
Total
Current Assets |
5587.294
|
4427.854
|
3958.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2277.383
|
2108.062
|
1548.827 |
|
|
Other Current Liabilities |
12.276
|
3.891
|
6.789
|
|
|
Provisions |
275.625
|
480.156
|
269.564
|
|
Total
Current Liabilities |
2565.284
|
2592.109
|
1825.180
|
|
|
Net Current Assets |
3022.010
|
1835.745
|
2132.920
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4310.231 |
3088.080 |
3404.594 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
4943.020 |
4801.602 |
5829.598 |
|
|
|
Other Income |
164.832 |
246.935 |
123.816 |
|
|
|
TOTAL (A) |
5107.852 |
5048.537 |
5953.414 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase)/Decrease in Stocks |
(236.350) |
(189.056) |
(50.056) |
|
|
|
Materials Consumed |
3717.697 |
3641.555 |
3690.739 |
|
|
|
Purchase of Finished Goods for Trade |
270.107 |
379.179 |
862.206 |
|
|
|
Manufacturing and Maintenance |
257.823 |
261.631 |
290.345 |
|
|
|
Employees' Remuneration and Benefits |
168.717 |
151.534 |
262.768 |
|
|
|
Administrative, Selling and Other Expenses |
492.442 |
361.397 |
421.566 |
|
|
|
TOTAL (B) |
4670.436 |
4606.240 |
5477.568 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
437.416 |
442.297 |
475.846 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
238.227 |
190.030 |
217.996 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
199.189 |
252.267 |
257.850 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
47.306 |
52.604 |
50.146 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
151.883 |
199.663 |
207.704 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
48.918 |
81.962 |
53.078 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
102.965 |
117.701 |
154.626 |
|
|
|
|
|
|
|
|
|
|
Expenses in respect of earlier years |
(0.222) |
-- |
(0.048) |
|
|
|
Excess/(Short) Provision of Current Tax for Prior Period |
6.099 |
1.885 |
(0.830) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
125.746 |
563.840 |
438.222 |
|
|
|
|
|
|
|
|
|
|
Net surplus for the year ended 31st March 2009, transferred
to Birla Precision Technologies Limited on account of demerger of Tool
Division |
-- |
(37.557) |
-- |
|
|
|
Adjusted on account of demerger of Tool Division as per the scheme of
arrangement approved |
-- |
(206.855) |
-- |
|
|
|
Difference in book value of assets transferred on account of
amalgamation of Tungabhadra Holdings Private Limited as per scheme of
arrangement. |
-- |
(49.471) |
-- |
|
|
|
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) |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
-- |
8.969 |
-- |
|
|
|
Proposed Equity Dividend |
-- |
216.200 |
24.044 |
|
|
|
Tax on Proposed Equity Dividend |
-- |
35.908 |
4.086 |
|
|
BALANCE CARRIED
TO THE B/S |
234.588 |
125.746 |
563.840 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports |
2508.039 |
1982.203 |
2516.699 |
|
|
TOTAL EARNINGS |
2508.039 |
1982.203 |
2516.699 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material (including Canalised items) |
448.747 |
696.955 |
525.139 |
|
|
|
Spare parts |
0.403 |
0.482 |
27.786 |
|
|
TOTAL IMPORTS |
449.150 |
697.437 |
552.925 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.83 |
1.59 |
3.84 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1389.700 |
|
Total Expenditure |
|
|
1283.000 |
|
PBIDT (Excl OI) |
|
|
106.700 |
|
Other Income |
|
|
0.000 |
|
Operating Profit |
|
|
106.700 |
|
Interest |
|
|
42.200 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
64.500 |
|
Depreciation |
|
|
12.000 |
|
Profit Before Tax |
|
|
52.500 |
|
Tax |
|
|
17.400 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
35.100 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
35.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.02
|
2.33
|
2.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.07
|
4.16
|
3.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.32
|
3.69
|
4.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.11
|
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.25
|
2.05
|
1.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.18
|
1.71
|
2.17 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL
HIGHLIGHTS
During the year,
the net income of the Company has increased to Rs.5107.852 millions as compared
to Rs.5048.537 millions of previous year. Profit after Tax for the financial
year stood at Rs.108.842 millions as against Rs.119.586 millions of previous
year.
ISSUE OF BONUS
SHARES
The Company has
during the year issued 21,620,529 Bonus Shares in the proportion of ONE new
fully paid equity share of Rs.10/- each for every FIVE equity shares of Rs.10/-
each held in the Company as on the Record Date (i.e. 12th August
2010). The said equity shares have been listed with Bombay Stock Exchange
Limited and National Stock Exchange Limited w.e.f. 24th August 2010.
ISSUE OF
CONVERTIBLE EQUITY SHARE WARRANTS
On 10th
January, 2011 the Company has allotted 1,08,10,000 Convertible Equity Share
Warrants to the Promoter Group at an issue price of Rs.21.40/- each aggregating
to Rs.23,13,34,000 determined in accordance to the SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2009. Further, on 25th March,
2011, 15,60,000 warrants has been converted into equity shares. As on 31st
March 2011, 92,50,000 Convertible Equity Share Warrants remain outstanding.
EXPORT PERFORMANCE
Exports turnover
increased to Rs.2508.039 millions for the year ended 31st March,
2011 as compared to Rs.1982.203 millions of previous year.
EXPANSION PROJECT
The Company is
setting up Saw Mill (Spiral Mill) Project and also contemplating expansion in
its existing ERW pipe range for bigger diameter pipes.
SUBSIDIARY COMPANY
The Accounts of
the wholly owned subsidiary companies, M/s. Zenith (USA) Inc., and M/s. Zenith
Middle East FZE have been received by the Company.
MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT
ECONOMIC SCENERIO
The year was
marked by a fairly tough financial environment due to slowdown in some of the
major economies of the world. The economic activities in many developed counties
remained sluggish due to sovereign debt turmoil. The lingering uncertainties
around global growth hampered long-term investment prospects. As per the data
released by International Monetary Fund (IMF), World GDP grew by 5.0% in 2010
and is projected to grow at a lower rate of 4.4% in 2011.
INDUSTRY STRUCTURE
The pipe 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. In comparison to rail and roads, they have lower operating
cost per unit and also higher capacity.
OPPORTUNITIES AND
THREATS
Opportunities:
The exploration
activities in the Country are bound to grow on account of depletion of oil
reserves, thereby resulting in an increase in the demand for pipes. The
domestic gas availability is poised to increase two-fold over the next four
years. The planned investments and ongoing projects will triple the gas
transmission infrastructure, with the eventual development of a national gas
grid. The government is also planning to build national gas highways. All this
indicates that the demand for pipes for oil and gas drilling will remain
robust.
Irrigation remains
a key focus area for the Government and more so for the state governments due
to the politically sensitive nature of the investments. Combined with water
supply and the sanitation segment, which is essentially driven by the
Government plan for Jawaharlal Nehru National Urban Renewal Mission projects,
this segment is the second-most important focus for the government after the
power sector as per the 11th five-year plan. The 11th plan envisages
US$ 83bn of investments in irrigation and water supply and sanitation over
FY08–12.
As the Union
Government has been laying a lot of stress on building infrastructure in the
recent past, the steel tubes and pipe segment has been seeing a steady demand.
The situation is improving further with the private sector players’ increasing
participation in infrastructure projects.
Threats/risks:
1. The
unavailability of steel plates/coils (the primary component in pipe manufacturing)
is the biggest risk factor for the pipe-manufacturing industry, because
majority of them are imported into
2. Sharp
unexpected increase in the cost of raw materials i.e. steel plates/coils may
affect the profitability of the Company as the raw materials comprise 70-75% of
the total cost structure.
3. A sharp and
unprecedented increase in the cost of freight may lead to pressure on margins.
Presently, the cost of freight is calculated prior to the execution of the
order. However, if this cost were to rise sharply and suddenly, the
pipe-manufacturing companies could be at risk if charter rates were not tied up
well in advance.
4. Global competition could pose problems for Indian Pipe Manufacturers
in the medium to long term
5. Competition
from PEC Pipes manufactures in the medium to long term.
6. The Indian pipe
manufacturers are subject to foreign exchange risk due to high imports and
exports.
7. Any adverse change in government policies can affect the industry.
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.
FINANCIAL
PERFORMANCE
During the year,
the net income of the Company has increased to Rs.5107.852 millions as compared
to Rs.5048.537 millions of previous year. Profit after Tax for the financial
year stood at Rs.108.842 millions as against Rs.119.586 millions of previous
year.
FIXED ASSETS:
v Land – Free Hold
v Land – Lease Hold
v Buildings
v Plant and Machinery
v Furniture, Fixtures and Equipments
v Vehicles
WEBSITE DETAILS:
COMPANY PROFILE
Subject was incorporated in the year 1960. Their
Steel Pipes Division is located at Khopoli which went into production in a
record time of eighteen months. This Division ranks as one of the pioneers
amongst Steel Pipe manufacturers of
The company has been pioneers in the Export of steel pipes, Tubes, Square and
Rectangular Hollow Sections from
MANUFACTURING FACILITIES
Their manufacturing facilities are strategically
located on the outskirts of Mumbai. They have 3 manufacturing facilities at
Khopoli, Tarapur and Murbad on the western part of
The company's Khopoli plant covers 552900 Sq Mtrs
(137 Acres) land which has a complete manufacturing and residential complex for
its employees with facilities of Club House, Guest House,
They have total 6 tube mills having the
manufacturing capacity of 2,10,000 MT/Annum. Also, they have 5 galvanising
units having combine capacity to galvanise pipes upto 1,50,000 MT/Annum.
The tube mill equipments for manufacture of pipes,
tubes, square and rectangular hollow sections are from world renownedequipment
manufacturers namely: Mannesmannmeer AG, Maschinen and Apatebau, Seuthe Hermer
(
PRESS RELEASES:
ZENITH BIRLA PLANS
TO SET UP SAW PIPES FACILITY
Zenith Birla (
At the announcement, the company spokesperson said: “Once commissioned, it will
be the first mobile spiral mill that can move from one location to another
location and manufacture pipes at site, thus, reducing transportation cost and
wastage of materials. The move will enable Zenith Birla to become the leading
enterprise that can manufacture products from half-an-inch to 100 inches of
steel pipes in the country.
It also has a facility for internal cement mortar lining that can coat the
inner lining of the pipes at the site itself, which is required in such manufactured
spiral pipes. "The project will help us to enter into a diversified field
of pipe manufacturing from ERW (Electric Resistance Welded) small diameter
pipes to large diameter pipes including large diameter spiral SAW pipes and
will be able to cater from 1/2 inch to 100 inches pipes," he said.
Currently, the production capability is 210,000 tons per annum of up to 8
inches steel pipes at its facility in Kho-poli, near Mumbai. Post expansion,
it will have the potential to deliver 360,000 tons per annum of up to 14 inches
steel 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] 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.48.93 |
|
|
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.