|
Report Date : |
05.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
MISHRA DHATU NIGAM LIMITED |
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|
|
|
Registered
Office : |
P.O. Kanchan Bagh, Hyderabad-500058, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
20.11.1973 |
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Com. Reg. No.: |
01-001660 |
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Capital
Investment / Paid-up Capital : |
Rs.1833.400
Millions |
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|
|
CIN No.: [Company Identification
No.] |
U14292AP1973GOI001660 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDM00022B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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|
Line of Business
: |
Manufacturer of Titanium and Titanium Base Alloys, Molybdenum
and Articles and Other Alloy Steel in Semi finished Forms. |
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|
No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 13000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a government of It is a well established and reputed company having fine track. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory : |
P.O. Kanchan Bagh, Hyderabad-500058, Andhra Pradesh, India |
|
Tel. No.: |
91-40-24340001 (10 Lines) 91-40-24340201 / 24340280 / 24340044 / 24340853 (Other Lines) |
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Fax No.: |
91-40-24440214 / 24340214 / 24340764 |
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E-Mail : |
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Website : |
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Area : |
10000 sq. ft. (Approximately) |
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Location : |
Owned |
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Regional Office:
|
26, Sector A, Pocket C, Vasant Kunj, New Delhi-110070, India |
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Tel. No.: |
91-11-26132875 |
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Fax No.: |
91-11-26890253 |
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E-Mail : |
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Commercial
Office: |
Located At: ·
Mumbai ·
Kolkata ·
New Delhi ·
Chennai ·
New Delhi ·
Chennai |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Myneni Narayana Rao |
|
Designation : |
Chairman and Managing Director |
|
Address : |
House No. 1-95/1/72, F-3, Residency Inn, Guttala Begumpet, |
|
Date of Birth/Age : |
01.09.1955 |
|
Date of Appointment : |
27.07.2006 |
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|
Name : |
Mr. Gyanesh Kumar |
|
Designation : |
Director |
|
Address : |
Qtr. No.8-2, Sector-13, A Block, R. K. Puram, New Delhi-110 066, |
|
Date of Birth/Age : |
27.01.1964 |
|
Date of Appointment : |
28.01.2010 |
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|
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|
Name : |
Mr. Malakondaiah Guntupalli |
|
Designation : |
Director |
|
Address : |
H. No.8-9-140, Dhatunagar, Hyderabad-500 058, Andhra Pradesh, Idnia |
|
Date of Birth/Age : |
01.01.1951 |
|
Date of Appointment : |
14.07.2010 |
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|
Name : |
Mr. Vijay Shankar Verma |
|
Designation : |
Director (Production and Marketing) |
|
Address : |
17-1-383, SF4, Vinay Nagar Colony, Hyderabad-500 059, |
|
Date of Birth/Age : |
08.08.1951 |
|
Date of Appointment : |
01.04.2009 |
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|
|
Name : |
Mr. Vemulapati Sri Krishna Murthy |
|
Designation : |
Director (Finance) |
|
Address : |
17-1-383, IP- 145 /146, IP Township, Saidabad, |
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Date of Birth/Age : |
16.08.1954 |
|
Date of Appointment : |
18.07.2008 |
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|
Name : |
Mr. P. K. Kataria |
|
Designation : |
(Permanent Spl. Invitee) |
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|
Name : |
Mr. P. K. Mishra |
|
Designation : |
Permanent Spl. Invitee |
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|
Name : |
Mrs. Indu
Liberhan |
|
Designation : |
Director |
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|
Name : |
Dr. Dipankar
Banerjee |
|
Designation : |
Director |
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Name : |
Dr. Kota
Bhanushankara Rao |
|
Designation : |
Director |
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|
Name : |
Mr. R. K. Mishra |
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Designation : |
Director |
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|
Name : |
Dr. (Mrs.) B.
Kinnera Murthy |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P. Ravi, IPS |
|
Designation : |
Chief Vigilance Officer |
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|
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|
Name : |
Mr. P. V. Subba
Rao |
|
Designation : |
Company Secretary |
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Name : |
Mr. P. Ravi, IPS |
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Designation : |
Chief Vigilance Officer |
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|
Name : |
Mr. P. V. Subba
Rao |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. D.N. Bhatia |
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Designation : |
General Manager
(Production) |
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|
Name : |
Mr. B.G. Raj |
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Designation : |
General Manager (Comml.) |
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Name : |
Mr. A.K. Bhatia |
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Designation : |
General Manager (Production.-II) |
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|
Name : |
Mr. T.K.
Chandrasekhar |
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Designation : |
General Manager (Services) |
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|
Name : |
Mr. D.N. Bhatia |
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Designation : |
General Manager (Production) |
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Name : |
Mr. B.G. Raj |
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Designation : |
General Manager (Comml.) |
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Name : |
Mr. P. Sarkar |
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Designation : |
Additional General Manager (MS) |
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Name : |
Mr. H.V. Kiran |
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Designation : |
Additional General Manager (Marketing) |
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Name : |
Mr. K. Shankar Rao |
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Designation : |
Additional General Manager (Eng. Services) |
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Name : |
Mr. K. Rambabu |
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Designation : |
Additional General Manager (Production.-I) |
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|
Name : |
Mr. M.S. Chalapathy |
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Designation : |
Additional General Manager (Production.-II) |
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Name : |
Mr. K. Siva Subramanian |
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Designation : |
Additional General Manager (Production -III) |
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Name : |
Mr. P. Mukhopadhyay |
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Designation : |
Additional General Manager (QC) |
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|
Name : |
Mr. K.R. Acharya |
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Designation : |
Additional General Manager (QCL) |
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|
Name : |
Mr. A.R. Ghatak |
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Designation : |
Additional General Manager (PPC) |
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Name : |
Mr. R.N. Ray |
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Designation : |
Additional General Manager (Prg. and Dev.) |
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Name : |
Dr. M. Chatterjee |
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Designation : |
Addl. Genl. Mgr (R and D) |
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Name : |
Mr. A.B. Naidu |
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Designation : |
Additional General Manager (HR) |
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Name : |
Mr. M.S. Ray |
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Designation : |
Additional General Manager (F and A) |
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|
Name : |
Mr. A.K. Ghosh |
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Designation : |
Dy. General Manager (U and SS) |
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Name : |
Mr. T.V. Rao |
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Designation : |
Dy. General Manager (ER) |
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Name : |
Mr. G.V.R. Murthy |
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Designation : |
Dy. General Manager (QC) |
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|
Name : |
Mr. D. Giri |
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Designation : |
Dy. General Manager (Tech. Coord.) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Titanium and Titanium Base Alloys,
Molybdenum and Articles and Other Alloy Steel in Semi finished Forms. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
· Central Bank of India · Andhra Bank, BDL Campus, Kanchanbagh, Hyderabad - 500058, Andhra Pradesh, India · Andhra Bank, Ballygunje, Hyderabad, Andhra Pradesh, India · Andhra Bank, Kolkata, West Bengal, India · HDFC Bank, Lakdi-ka-pul Branch, Hyderabad, Andhra Pradesh, India · State Bank of India, Chandrayangutta, Hyderabad, Andhra Pradesh, India · State Bank of India, Backbay Reclamation, Mumbai, Maharashtra, India · State Bank of India, Chunabhatti, Mumbai, Maharashtra, India · Standard Chartered Grindlays Bank Limited, Hyderabad, Andhra Pradesh, India · Punjab National Bank, Malakpet Branch, Hyderabad, Andhra Pradesh, India · State Bank of Hyderabad, Saidabad Branch, Hyderabad, Andhra Pradesh, India · State Bank of Patiala, Camac Street Branch, Kolkata, West Bengal, India ·
Indian Bank, Harbour Branch, Chennai,
Tamilnadu, India |
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Facilities : |
NOTE: ** This Includes
Rs.350.000 Millions received from MoD exclusively towards procurement of
Forge Press which is kept in fixed deposit as the same was retendered. & Loan is
secured by way of hypothecation of vehicles. # By hypothecation of raw materials, stock in process, finished goods
and book debts. |
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Banking
Relations : |
-- |
|
|
|
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Auditors : |
|
|
Name : |
Satyam and Veerabhadra Chartered Accountants |
|
Address : |
Flat No. 107, |
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Tel. No.: |
91-40-23222564/23224813 |
|
E-Mail : |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000 |
Equity Shares |
Rs.1000/- each |
Rs.2000.000 Millions |
Issued, Subscribed & Paid-up Capital :*
|
No. of Shares |
Type |
Value |
Amount |
|
1833400 |
Equity Shares |
Rs.1000/- each |
Rs.1833.400
Millions |
NOTE: * This includes Rs. 390.800 Millions received from MoD exclusively
towards procurement of Forge Press which is kept in fixed deposit as the same
was retendered.
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 |
1833.400 |
1833.400 |
1463.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1546.146 |
1275.918 |
934.150 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3379.546 |
3109.318 |
2397.550 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10.692 |
1.745 |
0.746 |
|
|
2] Unsecured Loans |
350.000 |
442.000 |
90.000 |
|
|
TOTAL BORROWING |
360.692 |
443.745 |
90.746 |
|
|
DEFERRED TAX LIABILITIES |
4.004 |
4.718 |
9.597 |
|
|
|
|
|
|
|
|
TOTAL |
3744.242 |
3557.781 |
2497.893 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
552.639 |
367.682 |
277.932 |
|
|
Capital work-in-progress |
141.515 |
155.008 |
352.168 |
|
|
|
|
|
|
|
|
INVESTMENT |
21.011 |
21.011 |
21.011 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3922.610
|
3204.603 |
2984.249 |
|
|
Sundry Debtors |
1040.638
|
1075.371 |
825.975 |
|
|
Cash & Bank Balances |
1884.738
|
2403.300 |
1204.227 |
|
|
Other Current Assets |
104.071
|
143.402 |
12.979 |
|
|
Loans & Advances |
1236.347
|
948.565 |
682.843 |
|
Total
Current Assets |
8188.404
|
7775.241 |
5710.273 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
152.644
|
184.650 |
162.836 |
|
|
Other Current Liabilities |
3565.167
|
3537.208 |
2933.118 |
|
|
Provisions |
1441.516
|
1039.303 |
767.537 |
|
Total
Current Liabilities |
5159.327
|
4761.161 |
3863.491 |
|
|
Net Current Assets |
3029.077
|
3014.080 |
1846.782 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3744.242 |
3557.781 |
2497.893 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4078.843 |
3634.566 |
3013.591 |
|
|
|
Other Income |
190.605 |
186.313 |
154.937 |
|
|
|
TOTAL (A) |
4269.448 |
3820.879 |
3168.528 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Materials and Consumables |
2111.822 |
1467.298 |
1583.185 |
|
|
|
Power and Fuel |
309.120 |
237.814 |
241.573 |
|
|
|
Employment Remuneration and Benefits |
1000.933 |
924.603 |
740.228 |
|
|
|
Repairs and Maintenance |
82.027 |
75.205 |
66.007 |
|
|
|
Off- Loading of Jobs and Semis |
382.664 |
268.229 |
278.776 |
|
|
|
Other Expenses |
191.604 |
142.503 |
144.554 |
|
|
|
Provisions |
3.699 |
1.363 |
1.000 |
|
|
|
Prior Period Adjustments |
4.784 |
(0.614) |
0.899 |
|
|
|
Accretion/ Decretion to work in Process and Finished Goods |
(675.881) |
(20.264) |
(549.160) |
|
|
|
TOTAL (B) |
3410.772 |
3096.137 |
2507.062 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
858.676 |
724.742 |
661.466 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
67.941 |
15.595 |
1.809 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
790.735 |
709.147 |
659.657 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
38.921 |
32.469 |
30.692 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
751.814 |
676.678 |
628.965 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
247.596 |
230.512 |
218.401 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
504.218 |
446.166 |
410.564 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
20.000 |
10.000 |
10.000 |
|
|
|
Proposed Final Dividend |
180.000 |
79.233 |
72.113 |
|
|
|
Tax on Dividend |
33.990 |
15.165 |
13.955 |
|
|
|
General Reserve |
270.228 |
341.768 |
314.496 |
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
275.02 |
304.88 |
280.55 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
11.81
|
11.68 |
12.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.43
|
18.62 |
20.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.60
|
8.31 |
10.50 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.22 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.63
|
1.67 |
1.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.63 |
1.48 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
No |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
SIGNIFICANT ACHIEVEMENTS DURING THE YEAR UNDER
REPORT WERE:
·
HIGHEST ever achieved Sales Turnover was Rs.
4180.000 Millions (more than double over a period of 5 years) and an increase
of around 13% over the previous year.
·
HIGHEST VoP of Rs. 4850.000 Millions registering an
increase of around 29% over the previous year.
·
LAYING FOUNDATION STONE by Shri AK Antony, Hon.ble
Raksha Mantri, Ministry of Defence, symbolizing the start of a GOLDEN ERA of
major Expansion and Modernisation in MIDHANI including inauguration of
Indigenously built ESR Furnace.
·
LAYING FOUNDATION STONE by Mr. M M Pallam Raju,
Hon’ble Raksha Rajya Mantri, Ministry of Defence, for establishing dedicated
plant for production of high quality fasteners made up of Titanium and Titanium
alloys and Special Steels.
·
SUCCESSFUL COMMISSIONING of critical equipment like
10 MT Vacuum Arc Re-melting Furnace.
·
SUCCESSFUL INNOVATION in building up and bringing
into operation, with in-house expertise and experience, at most possible
economical cost:
·
A 10 T Electro Slag Refining Furnace; Two Electric
Discharge-cutting machines
·
COMPLETION OF PROCUREMENT ACTIVITY for critical
equipment, indicating commencement of new era of operations in MIDHANI i.e.
·
6000 MT Forge Press,
·
20 MT Elec. Arc Furnace (VD/VOD)
·
Radial Axial Ring Rolling Mill
·
CRYSTALLIZING the proposal to acquire State-of-Art
equipment i.e. 4 Hi-Wide plate rolling Mill and 20T Elec. Arc. Furnace /VD/VOD
Melting Furnaces and tying up, financial support to the tune of Rs. 5070.000
Millions from M/s ASL (DRDO) and OFB.
·
Declaring “GO-LIVE” for an IT enabled solution i.e.
Enterprise Resource Planning (ERP), for integrating all functional areas of
operation in the Company.
·
Receiving “MoU Excellence Award” from Hon’ble Prime
Minister of India Dr. Manmohan Singh, in respect of the year 2008-09 in the
Mining and Metal sector.
·
Winning of “Hindustan Zinc Gold Medal” instituted
by Indian Institute of Metals, by one of the General Managers of MIDHANI for
his contributions towards the development of Titanium processing for Non
Ferrous Metallurgical industries.
·
REMAINED as 23rd Profit Making and 8th Dividend
paying year.
·
COMFORTABLE order book position to the tune of Rs.
7260.000 Millions as on 01.04.2011.
·
BUILT UP of Internal Reserves to the tune of
Rs.1546.100 Millions with a view to ploughing them back for creating
contemporary Stateof- Art technologies and capacities to meet challenges of the
year 2020.
HIGHLIGHTS OF PRODUCTION and SUPPLIES:
·
Turnover increased to Rs. 4178.700 (3,014 MT) as
compared to Rs. 3712.100 Millions (2,429MT) during the previous year, thus
registering a growth of about 13% value wise.
·
Titan 31 satellite rings have been developed and
supplied to Indian Space Research Organisation for the first time.
·
Completion and put into operation of existing
Roller Hearth Furnace after revamping.
·
MIDHANI was the first to get clearance from Nuclear
Power Corporation of India Limited (NPCIL) for supply of end fitting forging
components required for the 700 MW PHWR (Pressurised Heavy Water Reactors)
being set up by NPCIL.
·
For the first time developed and supplied Titan 32
forged and machined bars for Ship Building Centre (SBC), Vishakapatnam.
FINANCIAL HIGHLIGHTS:
The Company has
earned a Gross Margin of Rs. 790.700 Millions and a Profit before Tax of Rs.
751.800 Millions during the year 2010-‘11 as compared to Rs. 709.100 Millions
and Rs. 676.700 Millions in the previous year respectively. The Profit After
Tax for the year stands at Rs. 504.200 Millions as against Rs. 446.200 Millions
in the previous year, thus surpassing all the previous years’ records.
The surplus
available for appropriations would be Rs. 504.200 Millions as against Rs.
446.200 Millions in the previous year which would enable the Company to declare
an Interim Dividend and a final dividend aggregating to Rs.200.000 Millions as
against Rs. 89.200 Millions in the previous year.
During the year,
the Authorized Share Capital of the Company remained un-altered. At the
beginning of the Financial Year 2010-’11, there has been infusion of fresh Share
Capital by Govt. of India, Dept. of Def. Prod. to the tune of Rs. 370.000
Millions towards Governments contribution for procuring critical equipment like
6000 T Forge Press and 10T ESR. Accordingly, the Issued, Subscribed and Paid-up
Share Capital has gone up, during May, 2010, by way of further allotment of
3,70,000 Equity shares of Rs. 1000/- each ranking pari-passu with the existing
Equity Shares to President of India. The Paid -up Share Capital of the Company
thus stood at Rs. 1833.400 Millions On 31.03.2011.
MODERNISATION AND UP-GRADATION PROGRAM AND
IMPLEMENTATION OF CORPORATE PLAN-2020 OF THE COMPANY.
MIDHANI has taken
multifarious approach to become one of the global players in the production of
Special Steels, Stainless Steels, Superalloys, Titanium alloys and many other
Strategic alloys for different strategic and industrial sectors of their
Country. Along with identifying new projects for development of new alloys, new
processes, supply of finish components in place of semis and mill forms, new
applications for the existing products, efforts were also made for augmenting,
expanding and revamping in-house production facilities with full support from
Govt. as well as from their esteemed customers. MIDHANI, being not designed
initially to cater to large scale operations, the ploughing back of profits for
investment being meager, phase - wise development strategy was adopted and the
same has been yielding results.
The Phase - I
envisaged a revamping and Upgradation program with an investment of around Rs.
1510.000 Millions was completed – the substantial funding thereof coming from
major Customers and internal resources of the Company.
FUTURE OUTLOOK:
MIDHANI is looking
forward to undertake several diversified projects/ programs to enhance its Corporate
Mission and to discharge its long term goals. Its future outlook include the
attainment of an ambitious production level of about 15,000 Tonnes/year in
about a time frame of 3 years when compared to the present level of 2900 MT /
year.
AWARDS:
Shri D N Bhatia,
General Manager, MIDHANI received the “Hindustan Zinc Gold Medal” award by
Indian Institute of metals for his contributions towards the development of
Titanium processing for Non ferrous Metallurgical industries in November, 2010.
MIDHANI executive
Mr. N. Michal Praveen received the Society of Defence Technologists (SODET)
Award for Technology in Bronze Category for the year 2009-10 on December, 23,
2010 at Hyderabad for his contribution towards indigenous development,
fabrication and manufacture of various types of machines, jigs, fixtures,
toolings etc.
OPERATIONAL EFFICIENCY:
“Excellent
’’performance in the matter of recycling of reclaimed material from production
process was to the extent of 29% (1,863 MT) obviating the use of virgin raw
materials worth Rs.386.800 Millions as against 33% (1,682 MT) of such material
worth Rs. 308.500 Cr in the previous year.
Development of new
products through R and D efforts during the year 2010-11 include:
·
Directional solidified C247A turbine blades for
aero engine
·
Ferritic Martensitic T92 for Nuclear application
·
Nickel based superalloy C214 for nuclear
applications (IGCAR)
·
Nickel based superalloy Superni 617 for nuclear
applications
·
Special stainless steel for space application.
In-house manufacture
of two Electric Discharge machine one 1,000 mm and other 650 mm resulting in
savings to the extent of Rs. 24.000 Millions
In-house
manufacture of 350 mm dia Band saw resulted in saving of Rs.1.000 Million.
8 National and 1
International Technical papers were presented at various seminars by MIDHANI
engineers during the year.
MARKETING AND BUSINESS DEVELOPMENT:
MIDHANI had a
comfortable Order Booking position during the year 2010-11 despite several
adverse factors like heavy pressure on selling prices on account of tough
competition from overseas suppliers and also steep and sudden fall in imported
raw material prices. The cumulative orders on hand at the beginning of the year
for 2011-‘12 was of the order of Rs.7250.000 Millions and about Rs.4150.000
Millions orders were booked during the year 2010-‘11. Long term tie up and
business agreements to supply high value and value added products were also
made during the year which enabled the Company to achieve a higher order book.
During the year 40 new customers joined MIDHANI’s clientele.
THE PROMINENT SECTORS CONTRIBUTING TO SUCH MAJOR
ORDER BOOK WERE:
Defence to the
extent of 53%; 17% from Space; 13% from Atomic Energy and 17% from other
sector. As such the order Book from Strategic Sectors in aggregate accounted
for 83% which was similar to that of earlier year.
During the year
the Order Booking from sectors like Space, Atomic Energy, Defence was quite
encouraging. Order Booking from Aero sector is not encouraging as HAL (Koraput)
stopped Mig Engine production and also there is no requirement for Kaveri
Engine Project. Efforts are being made to improve the situation from this
sector during 2011-‘12.
Such comfortable
order book position enabled MIDHANI to plan the production schedules systematically
and out-sourcing activities with reliable sources at competitive costs, thus
leading to timely supplies and adhering to quality standards.
To gain and
sustain customer’s confidence in terms of quality and timely deliveries,
several programs of up-gradation and modernisation of production processes,
installing State-of-Art production facilities, continuous efforts to ensure
“zero” customer grievances, effective management of outsourcing activity were
taken as thrust areas.
During the year, the
activities like yield improvement, R and D efforts, establishment of
contemporary State-of-Art manufacturing facilities and technologies, have been
given high priority, for achieving higher productivity with a main objective of
passing on the benefits so accrued to Customers in order to gain the ultimate
objective of “CUSTOMER DELIGHT”. During the year under report there were no
Customer Grievances.
The total value of
the orders executed during the year accounted for Rs. 4180.000 Millions The
Individual sectors for which such supplies were made value-wise during the year
were as follows: Defence: Rs. 1530.000 Millions; Atomic Energy Rs. 440.000
Millions; Space Rs. 1540.000 Millions; Power Rs. 170.000 Millions General
Engineering Rs. 500.000 Millions
MIDHANI has
organized its Govt. Customers Meet on 24th Nov.,, 2010 wherein 90 Delegates
from various strategic sectors viz., ISRO, DRDO, NAVY, HAL, BHAVINI, DAE have
attended. Space, Atomic sectors and Commercial organizations like BHEL have
presented their requirement for the next 10 years. The meet created a platform
for interaction with the customers on their present and long term requirements
of special metals and alloys and MIDHANI’s expected contributions to meet their
future plans.
EXPORTS:
MIDHANI exports
over the years have been focusing on titanium alloys in the form of slabs and
rounds and Molybdenum wires. Inspite of the volatile raw material prices like
titanium sponge, molybdenum powder and small production facilities, MIDHANI
strives hard for offering competitive prices for molybdenum wires and titanium
products to increase export to traditional markets.
During the
financial year 2010-‘11, MIDHANI’s export performance has not been encouraging in
view of stiff competition in the international market coupled with global
recession and due to lack of cost competitiveness and longer deliveries.
Representatives from M/s Pratt and Whitnoy, USA, Timet, USA, Howaldtswerke,
Deutche Werft, GmbH (HDW), Germany were showing keen interest in sourcing
Titanium alloys, Superalloys and Special Steels from MIDHANI. The Modernisation
and substantial expansion of MIDHANI in the years to come may improve the
competitive edge and may bring in opportunities to enter into Export markets.
MARKETING OF
SPECIAL PRODUCTS:
In the pursuit of
discharging the Corporate Social Responsibility towards society, MIDHANI has
continued its operations on manufacture and supply of Bio-medical implants to
the needy at highly affordable prices when compared to imports. Such supplies
amounted to Rs. 27 lakhs during the year under report which include 70 Nos of
custom made prosthesis to Cancer patients.
MIDHANI HAS SUPPLIED FASTENERS WORTH RS. 7.600
MILLIONS DURING THE FINANCIAL YEAR 2010-11.
As an effective
marketing strategy, MIDHANI participated in various National and International
Exhibitions, Conferences, Seminars to enhance its role both in the National and
International Markets. Some of the programs attended were: the Africa Aerospace
and Defence 2010 (AAD 2010) an international exhibition held at Cape Town,
South Africa during Sept., 2010; Silver – Jubilee – Missile Seminar and
Technical exhibition organized by INS Kalinga, Vizag during Nov., 2010; India
International Trade Fair organized by Defence Exhibition Organisation at
Pragati Maidan, New Delhi during Nov., 2010; Aero India 2011, International
Exhibition held at Yelahanka, Bangalore from Feb., 2011 organised by Ministry
of Defence, 2nd International Conference on Advances in Nuclear Materials (ANM
2011) organized jointly by Bhabha Atomic Research Centre, Mumbai and Indian
Institute of Metals, Mumbai Chapter at Mumbai during Feb., 2011.
MANAGEMENT
DISCUSSIONS AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Company is a
Pubic Sector Undertaking under the Administrative control of Dept. of Defence
Production, Ministry of Defence, Government of India, incorporated in the year
1973. The main object of the company is to manufacture and process all grades,
types, sizes of superalloys in particular and other special metals and their
alloys in the form of ingots, billets, forgings, rolled and extruded sections,
strips, foils, wires, tubes, and other wrought, cast, sintered, fabricated
shapes and forms required for aircraft, rockets, missiles, electronics,
instruments, and allied industries in India or elsewhere either independently
or in collaboration with others.
The company has
single manufacturing unit with Registered Office situated in Hyderabad in the
State of Andhra Pradesh. It possess wide range of facilities recognised in
metallurgical industry and produces wide variety of products applying varied
state-of-art technologies and processes under one roof. It is unique of its
kind in the whole of Asia. The mission of the Company is to achieve
self-reliance in the research, development, production and supply of strategic
materials and products for critical and hi-tech engineering applications.
The Company mainly
caters to the needs of critical materials and alloys required by strategic
sectors of their country like Defence, Space, Atomic Energy, Aeronautics etc.
The products produced by MIDHANI are basically import substitutes which were
denied to India by western world and their non-availability would have effected
various prestigious National programs of the country. The Company had fully
absorbed the technologies offered by collaborators during its initial stages
and fully reaped the benefits associated with such technologies. With the
constant developments made over the years in various operational areas, by
utilising inhouse R and D capabilities; the company indigenised various
critical technologies, alloys and products which reduced dependence on imports
of these critical materials.
NATURE OF
OPERATIONS:
MIDHANI continues
to focus on carrying out improvements in operational processes and product
improvements by putting in place, a robust monitoring model to achieve
repeatable and predictable results. The necessity to fulfill the ever
increasing demands for stringent specificational requirements of the Strategic
customers of the Company provides the basic thrust and driving force to the
organization to suitably frame its policies and procedures in every sphere of
organizational activity to discharge its goal.
FIXED ASSETS:
·
Lands and Development
·
Roads and Bridges
·
Drainage, Sewarage and
Water Systems
·
Electrical Installation
·
Building and Internal
Services
·
Plant and Machinery
·
Vehicle
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.55.52 |
|
|
1 |
Rs.85.29 |
|
Euro |
1 |
Rs.68.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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.