MIRA
INFORM REPORT
|
Report Date : |
05.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
LLOYDS STEEL
INDUSTRIES LIMITED (03.06.1986) |
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|
|
Formerly Known As : |
GUPTA TUBES AND
PIPES PRIVATE LIMITED |
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Registered Office : |
Trade World, C- Wing, 16th Floor, Kamala City, Senapati Bapat Marg, Lower Parel (West),
Mumbai – 400 013, Maharashtra |
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Country : |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
27.04.1970 |
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Com. Reg. No.: |
11-014621 |
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Capital
Investment / Paid-up Capital : |
Rs.6289.370 Millions |
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CIN No.: [Company
Identification No.] |
L27100MH1970PLC014621 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04143G /
NGPL02517E / MUML03144B |
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PAN No.: [Permanent
Account No.] |
AAATL1607J /
AAACL6670Q |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacturing and
Fabrication of Chemical and Pharmaceutical Machinery, Ship Sets of Steering
Gears Stabilisers, Steel Pipes and Tubes, etc. |
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No. of Employees : |
1350 [Approximately ] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (17) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having moderate track. There appears huge accumulated
losses recorded by the company. Profitability of the company is under severe pressure.
However, Trade relations are reported as fair. Business is active. Payments
are reported to be slow. The company can
be considered for any business dealings on secured 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. C. G. Mhatre |
|
Designation : |
Accounts Manager |
LOCATIONS
|
Registered Office/Marketing Office : |
Trade World, C- Wing, 16th Floor, Kamala City, Senapati Bapat Marg, Lower Parel (West),
Mumbai – 400 013, Maharashtra, India |
|
Tel. No.: |
91-22-30418111 / 06 |
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Fax No.: |
91-22-30418260 / 59 |
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E-Mail : |
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Website : |
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Factory 1 : |
Steel
Plant Lloyds Nagar, |
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Tel. No.: |
91-7152-305000 |
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Fax No.: |
91-7152-305050 |
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Factory 2 : |
Engineering
Plant Plot No. A-5/5 and A-6/3, M.I.D.C. Industrial Area, Murbad, District Thane, |
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Marketing
Offices : |
Located At: ·
New Delhi ·
Chennai ·
·
·
Kolkata |
DIRECTORS
As on 30.06.2011
|
Name : |
Mr. Mukesh R. Gupta |
|
Designation : |
Chairman |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B. Com |
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Experience : |
33 Years |
|
Date of Appointment : |
28.09.1977 |
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Other
Directorship : |
Lloyds Metals and Energy Limited |
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Name : |
Mr. Rajesh R. Gupta |
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Designation : |
Managing Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B. Com |
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Experience : |
25 Years |
|
Date of Appointment : |
30.09.1983 |
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Other
Directorship : |
·
Lloyds Metals and Energy Limited ·
Vidarbha Power Limited |
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|
|
|
Name : |
Mr. B. L. Agarwal |
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Designation : |
Director |
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|
Name : |
Mr. B. Ravindranath |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. S. K Gupta |
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Designation : |
Director (Arcil Nominee) |
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|
Name : |
Mr. B. L. Khanna |
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Designation : |
BIFR SPL Director |
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Name : |
Mr. K. A. Krishna Rao |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 02.11.2011
|
Category of Shareholder |
No. of Shares |
% of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
245440 |
0.06 |
|
|
207923819 |
49.48 |
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|
208169259 |
49.53 |
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|
Total shareholding of Promoter and Promoter Group (A) |
208169259 |
49.53 |
|
(B) Public Shareholding |
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|
|
|
|
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|
573221 |
0.14 |
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|
54603360 |
12.99 |
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|
1500 |
- |
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|
4389894 |
1.04 |
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|
240542 |
0.06 |
|
|
59808517 |
14.23 |
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|
|
|
|
|
44208475 |
10.52 |
|
|
|
|
|
|
63167842 |
15.03 |
|
|
30556875 |
7.27 |
|
|
14345723 |
3.41 |
|
|
262473 |
0.06 |
|
|
2621400 |
0.62 |
|
|
11451900 |
2.72 |
|
|
4950 |
- |
|
|
5000 |
- |
|
|
152278915 |
36.23 |
|
Total Public shareholding (B) |
212087432 |
50.47 |
|
Total (A)+(B) |
420256691 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
420256691 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Fabrication of Chemical and Pharmaceutical Machinery, Ship Sets of Steering
Gears Stabilisers, Steel Pipes and Tubes, etc. |
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Products : |
·
Chemical
Machinery ·
Pharmaceutical
Machinery ·
Ship
Sets of Steering Gears Stabilisers ·
Steel
Pipes ·
Tubes |
PRODUCTION STATUS (As on 30.06.2011)
|
Products |
Unit |
Installed Capacity |
Actual Production |
|
Fabrication of
Chemicals, Pharmaceutical and other Machinery and Structurals |
M.T. |
*16000 |
-- |
|
Steel Structurals |
M.T. |
7000 |
-- |
|
Ship sets of
Steering Gears and Stabilisers each |
Nos. |
8 |
-- |
|
Steel Pipes and
Tubes |
M.T. |
*9000 |
-- |
|
Silos |
M.T. |
*9500 |
-- |
|
Marine Loading
Arms/Truck and Rail Loading Arms |
Nos. |
200 |
-- |
|
Power Plants |
Nos. |
5 |
-- |
|
Hot Rolled Coils/Plates/Sheets |
M.T |
*1000000 |
693623 |
|
Cold Rolled
Coils/Sheets |
M.T |
*375000 |
187982 |
|
GP Coils/Sheets
& GC Sheets |
M.T |
*250000 |
183168 |
Notes
·
N.A. - Not Applicable in terms of Government of
India’s Notification No. S.O. 477(E), dated 25th July, 1991.
·
Considering the nature of business of fabrication
of Chemical, Pharmaceutical and Other Machinery and Structural, Steel Pipes and Tubes, Marine
Loading Arms production details are not available in M.T.
·
Figure in the brackets pertains to previous year.
·
*Installed capacity is taken on the basis of IEM
dated 27.01.2011. The installed capacity of Hot Rolled is increased from 600000
MT to 1000000 MT, Cold Rolled, Coil/Sheets from 350000 MT to 375000 MT and GP
Coil / Sheets amd GC Sheets from 125000 MT to 250000
MT, with effect from 1st December, 2010.
·
Installed Capacity for the current period is on per
annum basis.
·
Saleable Production excluding captive consumption
is as under :
1. Hot Rolled Coils
and Plate (MT) - 480606
2. Cold Rolled Coils
(MT) - 5055
3. Galvanised Plain Coils (MT)
- 182473
GENERAL INFORMATION
|
No. of Employees : |
1350 [Approximately] |
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Bankers : |
·
Central Bank of ·
State Bank of ·
State Bank of ·
The Federal Bank Limited ·
State Bank of Travancore ·
·
Abu Dhabi Commercial Bank Limited ·
Bank of ·
Oriental Bank of Commerce |
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Facilities : |
Notes 1. a. Long Term
Loans are secured by way of hypothecation of all the movables except book
debts, including movable machinery, machinery spares, tools and accessories,
present and future, subject to prior charges created and/or to be created in favour of the Company’s Bankers for Working Capital
facilities. b. (i) Long Term Loans to the extent of Rs.4676.089 millions, are also secured
by way of first mortgage and charge on Company’s immovable properties, both
present and future ranking pari passu
with other First Charge holders, subject to prior charge of SBI for housing
colony for the employees at Wardha and specified movables,
both present and future, hypothecated to Banks for Working Capital. (ii) Long Term
Loans to the extent of Rs.283.701
millions, are also secured by way of first mortgage and charge on
Company’s immovable properties situated at Wardha,
both present and future, ranking pari passu with other First Charge holders, subject to prior
charge of SBI for housing colony for the employees at Wardha
and specified movables, both present and future, hypothecated to Banks for
Working Capital. c. Long Term
Loans to the extent of Rs.1650.000
millions, are to be secured by way of first mortgage and charge on
Company’s immovable properties, both present and future ranking pari passu with other First
Charge holders, subject to prior charge of SBI for housing colony for the
employees at Wardha and specified movables, both
present and future, hypothecated to Banks for Working Capital. d. The Term
Loans of Rs.35.397 millions from
SBI are secured by exclusive mortgage of the housing colony situated at Wardha. e. Long Term
Loan of Rs.192.467 millions,
cash credit facilities assigned by banks, is secured against hypothecation of
Raw Materials, Work-in-process, Finished Goods, Stores and Spares, Book Debts
etc., and by way of Second Charge on company’s immovable properties, and also
guaranteed by some of the directors of the Company. 2. Cash Credit
from Bank is secured against hypothecation of Raw Materials, Work-in-process,
Finished Goods, Stores and Spares, Book Debts etc., and by way of Second
Charge on Company’s immovable properties, and also guaranteed by some of the
Directors of the Company. 3. a. The loan
includes non interest bearing loans of Rs.5254.057 millions as per the loan restructuring terms. b. The loans
includes loan of Rs.500.000 millions convertible
into Equity Shares on September 15, 2011 at a price to be determined in
accordance with SEBI (ICDR) Regulations and in Compliance with all the
statutory provisions in this regard.
Note Amount repayable within one year Rs.5.136 millions (Previous year
Rs.5.302 millions) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Todarwal and Todarwal Chartered
Accountants |
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Memberships : |
Confederation of Indian
Industry |
CAPITAL STRUCTURE
As on 30.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500,000,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
|
250,000,000 |
Preference Shares |
Rs.10/- each |
Rs.2500.000 Millions |
|
|
Total |
|
Rs.7500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
391,338,241 |
Equity Shares |
Rs.10/- each |
Rs.3913.382 Millions |
|
2,714,451 |
Add: Forfeited Shares (Amount Originally Received) |
|
Rs. 13.234 Millions |
|
236,275,420 |
Redeemable Preference Shares
|
Rs.10/- each |
Rs.2362.754 Millions |
|
|
Total
|
|
Rs.6289.370 Millions |
Note
·
The Redeemable Preference Shares will be redeemed with
a premium of 11.50% in 6 (Six) Annual Installments commencing from financial
year 2016.
·
During the period, the Company has issued
16,85,00,000 Equity Shares of Rs.10/- each to Promoters on conversion of
16,85,00,000 Share Warrants
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
6289.370 |
4604.370 |
4474.222 |
||
|
2] Subscription
for Share Warrants |
0.000 |
421.250 |
0.000 |
|
|
3] Reserves
& Surplus |
6986.658 |
7161.033 |
5587.485 |
|
|
4] (Accumulated
Losses) |
(16266.879) |
(15060.366) |
(14279.557) |
|
|
NETWORTH |
(2990.851) |
(2873.713) |
(4217.850) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7289.529 |
7893.438 |
11619.510 |
|
|
2] Unsecured Loans |
21.977 |
35.231 |
40.206 |
|
|
TOTAL BORROWING |
7311.506 |
7928.669 |
11659.716 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4320.655 |
5054.956 |
7441.866 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11482.445 |
8161.419 |
9301.790 |
|
|
Capital work-in-progress |
308.962 |
2250.099 |
480.474 |
|
|
|
|
|
|
|
|
INVESTMENT |
25.026 |
25.026 |
25.026 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2767.801
|
2029.076
|
1927.703
|
|
|
Sundry Debtors |
2022.563
|
2018.621
|
1246.423
|
|
|
Cash & Bank Balances |
489.302
|
304.875
|
363.897
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
5845.799
|
3894.595
|
4865.517
|
|
Total
Current Assets |
11125.465
|
8247.167
|
8403.540
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11590.629
|
7688.921
|
6917.249
|
|
|
Other Current Liabilities |
6838.491
|
5798.442
|
3724.237
|
|
|
Provisions |
192.123
|
141.392
|
127.478
|
|
Total
Current Liabilities |
18621.243
|
13628.755
|
10768.964
|
|
|
Net Current Assets |
(7495.778)
|
(5381.588)
|
(2365.424)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4320.655 |
5054.956 |
7441.866 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Turnover |
40807.376 |
28987.206 |
26055.138 |
|
|
|
Other Income |
340.890 |
44.709 |
63.685 |
|
|
|
TOTAL |
41148.266 |
29031.915 |
26118.823 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
35885.821 |
23997.361 |
23167.939 |
|
|
|
Manufacturing
and Asset Maintenance |
2336.665 |
2551.028 |
2276.291 |
|
|
|
Personnel Cost |
678.078 |
397.655 |
409.228 |
|
|
|
Selling and
Distribution Expenses |
1098.179 |
849.923 |
790.541 |
|
|
|
Administrative
and other Expenses |
168.861 |
173.807 |
350.550 |
|
|
|
TOTAL |
40167.604 |
27969.774 |
26994.549 |
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
980.662 |
1062.141 |
(875.726) |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCIAL CHARGES |
852.916 |
489.703 |
509.965 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION |
127.746 |
572.438 |
(1385.691) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1549.307 |
1166.820 |
1157.927 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE EXCEPTIONAL ITEM AND TAX
|
(1421.561) |
(594.382) |
(2543.618) |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITMES (NET) |
23.689 |
(180.786) |
896.614 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX |
(1397.872) |
(775.168) |
(1647.004) |
|
|
|
|
|
|
|
|
|
Less/ Add |
FRINGE BENEFIT TAX |
0.000 |
0.000 |
4.209 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
AFTER TAX |
(1397.872) |
(775.168) |
(1651.213) |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
INCOME / EXPENSES (NET) |
1.159 |
(5.641) |
2.668 |
|
|
|
|
|
|
|
|
|
Add |
PROFIT / LOSS BROUGHT
FORWARD FROM PREVIOUS YEAR |
(15060.366) |
(14279.557) |
(12631.012) |
|
|
|
|
|
|
|
|
|
Add |
TRANSFERRED FROM
DEBENTURE REDEMPTION RESERVE |
190.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(16266.879) |
(15060.366) |
(14279.557) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
Brokerage and Commission |
2.177 |
2.230 |
5.857 |
|
|
|
TOTAL EARNINGS |
2.177 |
2.230 |
5.857 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
1256.811 |
2244.245 |
3558.734 |
|
|
|
Production Consumables, Stores and Spares |
768.949 |
391.411 |
313.845 |
|
|
|
Projects |
0.000 |
296.615 |
0.000 |
|
|
|
TOTAL IMPORTS |
2025.760 |
2932.271 |
3872.579 |
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Per Share (Rs.) |
(4.46) |
(3.65) |
(8.33) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.09.2011 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
11224.330 |
|
Total Expenditure |
|
|
11425.180 |
|
PBIDT (Excl
OI) |
|
|
[200.850] |
|
Other Income |
|
|
148.800 |
|
Operating
Profit |
|
|
[52.050] |
|
Interest |
|
|
195.710 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
[247.750] |
|
Depreciation |
|
|
353.270 |
|
Profit
Before Tax |
|
|
[601.020] |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
[601.020] |
|
Extraordinary Items |
|
|
1.500 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
[599.520] |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
PAT / Total Income |
(%) |
(3.40)
|
(2.67)
|
(6.32) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.43)
|
(2.67)
|
(6.32) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.18)
|
(4.72)
|
(9.30) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.47)
|
(0.27)
|
(0.39) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(8.67)
|
(7.50)
|
(5.32) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.60
|
0.61
|
0.78 |
LOCAL AGENCY FURTHER INFORMATION
STEEL INDUSTRY
SCENARIO
The Indian Steel
Industry, after passing through a phase of economic slowdown in 2009 has shown
a steady growth in 2010. The consumption
of steel in the country has shown an increase of around 10.3 per cent during April
2010 to January 2011 as compared to the same period of previous year,
indicating strengthening of demand. During the last few years, the demand
growth has been more than supply growth. The lag in supply growth was mainly
due to delays in statutory clearances, land acquisition issues, lack of new raw
material linkages, etc. However the Indian economy is facing the risk of very
high inflationary conditions leading the Government to tighten monetary
policies which may in turn affect growth significantly. The high raw material
cost coupled with increasing operational cost has put pressure on operating
margins of the Steel Companies in the later half and trend is expected to
continue during the current year as well.
OPERATIONS AND
OVERALL PERFORMANCE
The Company
achieved a Turnover of Rs.43653.600
millions in 15 months period as against Rs.30527.800 millions in the previous year (12
months). The Company incurred a Loss of Rs.1397.900 millions during the period (15 months) as against
previous year (12 months) loss of Rs.775.200 millions after providing depreciation of Rs.1549.300 millions (Previous year
Rs.1166.800 millions).
The company during
the period has completed modernization and modification of its steel plant at Wardha and installed
some new equipment/s, modified existing equipments and up-graded other
auxiliary facilities to increase the existing capacity of the plant. The
company has now started receiving regular Hot Metal supplies and accordingly
has changed its charge mix by replacing scrap by Hot Metal thereby reducing the
production time and saving a considerable amount on power consumed. The company
has made necessary changes in its plant to synchronise
with production cycle of Hot metal. The above changes along with removal of
certain bottlenecks has now increased its production capacity to 1 million tonnes of HR per annum. This will help to improve the
viability of its operations in the long run.
DEBT RESTRUCTURING
The Company has
completed restructuring of debt with majority of its lenders. Restructuring
proposals of debts with some Financial Institutions and Banks are under various
stages of discussion. In spite of Company facing a very difficult situation,
the Company has paid off Rs.577.600 millions
during the period towards past Debt liabilities in accordance with the restructuring
terms.
STEEL PRODUCTS
Sale of steel
products during the period (15 months) has been Rs.28419.600 millions as against the previous year (12 months)
figure of Rs.17932.100 millions.
Export during the period of 15 months has increased to Rs.133.200 millions as
against Rs.21.300 millions
recorded during the previous year of 12 months.
ENGINEERING
PRODUCTS
During the period
the sales of engineering products were Rs.4007.700 millions for the 15 months period as compared to
the previous year (12 months) of Rs.4382.600 millions. The Company during the year has supplied critical items
to G.R.S.E., DPRO and other equipments for many clients. The division has
completed its project of supply and commissioning of Marine Loading Arms to Essar Construction Limited. The Division continues to
support in supply of Spares and Services to all the major Oil, Gas, Port Trust
and various Government Bodies. The Company has been successful in obtaining
further orders from reputed companies for their projects.
PREFERENTIAL ISSUE
During the period,
the Company has converted 16,85,00,000 Warrants of Rs.10/- each issued on
preferential basis to promoters into Equity Shares of Rs.10/- each upon
exercise of conversion option by them. The Warrants were convertible at the
option of the holder at any time within a period of 18 months from the date of
allotment. The Company has received listing approval from both BSE and NSE in
respect of the aforesaid shares.
MANAGEMENT
DISCUSSION AND ANALYSIS
The core business
of the Company is manufacturing and marketing Iron and Steel products and
manufacturing capital equipments and turnkey projects. The Management discussions and analysis is given
hereunder:-
INDUSTRY STRUCTURE
AND DEVELOPMENT
demands high level
of investment.
SEGMENT-WISE
PERFORMANCE
The Company is
mainly in the business of manufacturing Steel and Capital Equipments and
Turnkey Projects. The Company has no activity outside
OUTLOOK
The outlook for
the domestic steel industry looks positive. The country has acquired a central
position on the global steel map with its giant steel mills, acquisition of
global scale capacities by players, continuous modernization and up gradation
of old plants, improving energy efficiency, and backward integration into
global raw material sources. Steel consumption in
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
30.06.2011 (15 Months) Rs. in Millions |
|
(a) In respect of
guarantees issued by Banks : This includes expired Bank guarantees of Rs.11.111 millions. |
157.680 |
|
|
|
|
(b) Corporate Guarantee issued by the Company |
5.596 |
|
|
|
|
(c) i) Claims against the Company not
acknowledged as debt. |
84.686 |
|
ii) Show cause notices under hearing in respect of excise duty which
is disputed by the Company |
44.784 |
|
iii) Sales Tax |
2.865 |
|
Total |
295.611 |
FIXED
ASSETS
·
Land
·
Building
·
Plant and
Machinery
·
Computers
·
Electrical
Installations
·
Office Equipment
·
Furniture and
Fixtures
·
Motor
Vehicles
·
Railway
Siding
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.53.14 |
|
|
1 |
Rs.83.08 |
|
Euro |
1 |
Rs.69.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
- |
|
--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 |
|
17 |
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.