MIRA
INFORM REPORT
|
Report Date : |
23.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHREEYAM POWER AND STEEL INDUSTRIES LIMITED |
|
|
|
|
Formerly Known As
: |
RUCHI POWER AND STEEL INDUSTRIES LIMITED (w.e.f September 2010) MID INDIA POWER AND STEEL LIMITED (w.e.f 2007) MID INDIA ENGINEERING LIMITED |
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Registered
Office : |
621, Tulsiani Chambers, Nariman Point, Mumbai-400009, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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|
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Date of
Incorporation : |
19.07.1995 |
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Com. Reg. No.: |
11-090807 |
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Capital
Investment/ Paid-up Capital: |
Rs.784.869 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U45200MH1995PLC090807 |
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|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Reinforcement (TMT) Bars, Structural Steel and SS
Flats. |
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|
|
No. of Employees: |
3200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (35) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 14000000 |
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|
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. Trade relations are reported as fair. Business is active. Payments are reported to be slow. Due to erratic business conditions, the company can be considered for business dealings with some caution. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY (GENREAL DETAILS)
|
Name : |
Mr. Navneet |
|
Designation : |
Deputy Manager |
|
Contact No.: |
91-731-40174409 |
|
Date : |
21.05.2012 |
LOCATIONS
|
Registered Office : |
621, Tulsiani Chembers, Nariman Point, Mumbai-400 009, |
|
Tel. No.: |
91-22-22025098/22886267 |
|
Mobile No.: |
91-9752092232 (Mr. Prabhu) |
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Fax No.: |
91-22-22025084 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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|
|
|
Factory : |
Plot No.332, New GIDC, Phase II, Mithirohar, Gandhidham, Kutch- 370
201, |
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Tel. No.: |
91-2836-286524 / 25 / 28 |
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Fax No.: |
91-2836-286525 / 27 |
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E-Mail : |
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Administration Office : |
Shree Mahadeo House, 10/2, South Tukoganj, |
|
Tel. No.: |
91-731-4062083 |
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Fax No.: |
91-731-4017493 |
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|
|
|
Alloy Steel Division: |
Plot No. 153 A to D, Industrial Area, Sector- III, District. Dhar- 454
774, Madhya Pradesh, |
|
Tel. No.: |
91-7292-650113 / 114 |
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Ashok Kumar Agarwal |
|
Designation : |
Directors |
|
Address : |
101, Nupur, 8, |
|
Date of Birth/Age : |
06.02.1964 |
|
Date of Appointment : |
27.09.2002 |
|
Din No.: |
00121648 |
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|
|
|
Name : |
Mr. Santosh Shahra |
|
Designation : |
Directors |
|
Address : |
29, Old Palasia, |
|
Date of Birth/Age : |
17.12.1946 |
|
Date of Appointment : |
10.06.2004 |
|
Din No.: |
00305846 |
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|
|
|
Name : |
Mr. Adya Prasad |
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Designation : |
Directors |
|
Address : |
27, Goyal Nagar, |
|
Date of Birth/Age : |
15.01.1956 |
|
Date of Appointment : |
01.06.2009 |
|
Din No.: |
02676913 |
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|
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|
Name : |
Mr. Navneet Zalani |
|
Designation : |
Director |
|
Address : |
189, BG, Scheme No. 74 C, Indore-452010, |
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Date of Birth/Age : |
11.10.1944 |
|
Date of Appointment : |
01.05.2011 |
|
Din No.: |
00205570 |
KEY EXECUTIVES
|
Name : |
Mr. Navneet |
|
Designation : |
Deputy Manager |
|
|
|
|
Name: |
Mr. Nilesh Kumar Jain |
|
Designation : |
Secretary |
|
Address : |
71, Mahaveer Nagar, |
|
Date of Birth/Age : |
28.05.1973 |
|
Date of Appointment : |
01.12.2005 |
|
Pan No.: |
ADEPJ9245P |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Arun Tatia |
|
20 |
|
Sanjay Khandelwal |
|
20 |
|
Shaliendra Jhalani |
|
20 |
|
Ashok Agrawal |
|
20 |
|
Amit Nakra |
|
20 |
|
Manish Jain |
|
20 |
|
Laxmi G. Krishnan |
|
20 |
|
Thomas Anjula Khandelwal |
|
124000 |
|
Easaw Thomas |
|
120000 |
|
Vidhya Maria Thomas Vadeketh |
|
126400 |
|
Molly Chacko |
|
119200 |
|
Mathew Kurain |
|
128800 |
|
Mary Thomas |
|
124000 |
|
V. Thomas James |
|
131200 |
|
Sharon Marie Mathew |
|
126400 |
|
Vishesh Shahra |
|
800000 |
|
Ushadevi Shahra |
|
300000 |
|
Santosh Shahra |
|
436700 |
|
Aditi Shahra |
|
200000 |
|
East West Global Limited – UAE |
|
16701482 |
|
National Steel and Agro Industries Limited – |
|
1333332 |
|
NSIL Finance Limited – |
|
2000000 |
|
Arab Asia Trade Inc. – UAE |
|
839486 |
|
Adidev Foundation – |
|
400000 |
|
Benco Finance and Investment Private Limited – |
|
45596906 |
|
Amas |
|
8482444 |
|
Soucano Holding Company Limited – |
|
18567712 |
|
NSIL Infotech Limited – |
|
25533286 |
|
NSIL Power Limited – |
|
25850532 |
|
Shriyam Industries Private Limited – |
|
8931826 |
|
Total |
|
156973846 |
As on 30.09.2011
Equity Shares Break -up
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
29.04 |
|
Bodies corporate |
|
69.59 |
|
Directors or relatives of directors |
|
1.11 |
|
Other top fifty shareholders |
|
0.26 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Reinforcement (TMT) Bars, Structural Steel and SS
Flats. |
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Products : |
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Terms : |
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Selling : |
Cash/Credit (30 to 60 Days) |
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Purchasing : |
Cash/Credit (30 to 60 Days) |
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
Unit |
31.03.2010 |
|
Licensed
Capacity |
M.T. |
450000 |
|
|
|
|
|
Installed
Capacity * |
|
|
|
Rolling Products of Mild Steel/ Stainless Steel/Alloy Steel as bars/ Rods/Beam/other Sections and Flats |
M.T |
370000 |
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|
|
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Actual
Production |
|
|
|
Sponge Iron |
M.T |
147529.000 |
|
M.S. Billets |
M.T |
242009.937 |
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T.M.T. Bars |
M.T |
95485.100 |
|
Alloys Steel |
M.T |
30999.623 |
|
Carbon Steel |
M.T |
11209.966 |
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Structural Steel |
M.T |
36825.459 |
NOTE
M.T. = Metric Ton (Per Annum)
* As certified by the Management and relied
upon by the Auditors, being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
3200 (Approximately) |
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Bankers : |
·
IDBI Bank Limited, Specialised Corporate Branch,
Upper Ground Floor, Captain C.S. Nayudu Arcade, 10/2 Old Palasia, ·
Central
Bank of ·
Bharat
Overseas Bank Limited – 581/3, Bansi Plaza, M.G. Road, Indore – 452001,
Madhya Pradesh, India ·
UCO
Bank – New Palasia Branch, |
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Facilities : |
NOTES : 1. Term loans
from banks are secured by way of first mortgage of immoveable properties and
hypothecation of all the Company’s movables (save and except book debts and stocks)
including movable Machinery, Spares and Tools both present and future ranking
pari-passu inter-se subject to prior charge created/to be created in favour
of the banks on specified movable assets for securing borrowings for working
capital requirements and personal guarantee of a Director. 2. Loans from Banks for working capital are secured by hypothecation
of Company’s entire Raw materials, Stock-in-process, Finished goods, Stores
and Spares, Stock in transit, other current assets and second charge over
entire fixed assets of the Company inter-se and personal guarantee of a
Director |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Vijay Rathi and Company Chartered Accountants |
|
Address : |
11, R.N.T, Marg, 313-314, Manas Bhawan, |
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Tel. No.: |
91-731-2527627 |
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Mobile No.: |
91-9893035514 |
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Pan No.: |
AAYPR6721P |
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Other Related Party : |
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CAPITAL STRUCTURE
As on 30.09..2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
Total |
|
|
Rs.3050 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
156973846 |
Equity Shares |
Rs.10/- each |
Rs.1569.738 Millions |
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs. 10/- each |
Rs.800.000 Millions |
|
500000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
|
|
Total |
|
Rs.850.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
78486923 |
Equity Shares |
Rs. 10/- each |
Rs.784.869
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
784.869 |
784.686 |
599.365 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2759.515 |
2338.763 |
1865.846 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3544.384 |
3123.449 |
2465.211 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5287.300 |
5201.389 |
3303.773 |
|
|
2] Unsecured Loans |
650.000 |
0.000 |
86.493 |
|
|
TOTAL BORROWING |
5937.300 |
5201.389 |
3390.266 |
|
|
DEFERRED TAX LIABILITIES |
200.621 |
166.395 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9682.305 |
8491.233 |
5855.477 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6985.587 |
3340.224 |
1719.278 |
|
|
Capital work-in-progress |
914.467 |
3994.604 |
3442.698 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
5.004 |
5.004 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2703.195
|
1426.032
|
995.502 |
|
|
Sundry Debtors |
825.942
|
1218.845
|
540.623 |
|
|
Cash & Bank Balances |
266.066
|
238.120
|
141.332 |
|
|
Other Current Assets |
0.000
|
0.000
|
131.729 |
|
|
Loans & Advances |
503.148
|
463.565
|
147.107 |
|
Total
Current Assets |
4298.351
|
3346.562
|
1956.293 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2399.431 |
2107.906 |
1180.048 |
|
|
Other Current Liabilities |
90.991
|
82.511
|
68.189 |
|
|
Provisions |
26.308
|
5.560
|
20.561 |
|
Total
Current Liabilities |
2516.730
|
2195.977
|
1268.798 |
|
|
Net Current Assets |
1781.621
|
1150.585
|
687.495 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.630 |
0.816 |
1.002 |
|
|
|
|
|
|
|
|
TOTAL |
9682.305 |
8491.233 |
5855.477 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8149.729 |
7047.498 |
3599.629 |
|
|
|
Other Income |
1.897 |
2.474 |
12.164 |
|
|
|
TOTAL (A) |
8151.626 |
7049.972 |
3611.793 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
6092.013 |
5043.324 |
|
|
|
|
Excise duty on increase/decrease stock |
157.161 |
(27.518) |
|
|
|
|
Manufacturing expenses |
1375.780 |
1386.657 |
|
|
|
|
Selling and distribution expenses |
290.128 |
300.646 |
|
|
|
|
Administrative expenses |
114.863 |
97.780 |
3231.984 |
|
|
|
Miscellaneous expenses written off |
0.185 |
0.185 |
|
|
|
|
Employees remuneration and benefits |
179.181 |
164.689 |
|
|
|
|
Expenses related to prior period |
4.398 |
0.620 |
|
|
|
|
Increase/Decrease in stock |
(1415.619) |
(82.548) |
|
|
|
|
TOTAL (B) |
6798.090 |
6883.835 |
3231.984 |
|
|
|
|
|
|
|
|
Less |
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1353.536 |
166.137 |
379.809 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
674.016 |
435.626 |
90.564 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION |
679.520 |
(269.489) |
289.245 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
269.233 |
101.473 |
51.423 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX |
410.287 |
(370.962) |
237.822 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(9.547) |
77.016 |
61.654 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
AFTER TAX |
419.834 |
(447.978) |
176.168 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(190.880) |
257.098 |
80.930 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
228.954 |
(190.880) |
257.098 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
33.468 |
851.836 |
323.786 |
|
|
TOTAL EARNINGS |
33.468 |
851.836 |
323.786 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
890.177 |
765.879 |
274.803 |
|
|
|
Stores and Consumables |
9.393 |
29.623 |
4.139 |
|
|
|
Capital Goods |
88.560 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
988.130 |
795.502 |
278.942 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.35 |
(6.65) |
4.35 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.15
|
(6.35)
|
4.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.03
|
(5.26)
|
6.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.64
|
(5.55)
|
6.47 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
(0.12)
|
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.39
|
2.37
|
1.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.71
|
1.52
|
1.54 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Construction
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
Yes |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
Yes |
|
Designation
of contact person |
Yes |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
Yes |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
No |
|
Major
Shareholders, if applicable |
Yes |
SUNDRY CREDITORS DETAILS
|
Particular |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
2066.701 |
1761.705 |
805.218 |
|
Creditors for Capital Goods |
332.730 |
346.201 |
374.830 |
|
|
2399.431 |
2107.906 |
1180.048 |
Form 8:
|
Corporate
identity number of the company |
U45200MH1995PLC090807 |
|
Name of the
company |
SHREEYAM POWER AND STEEL INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
621, Tulsiani Chembers, Nariman Point, Mumbai-400 009, Email: roc_work@hotmail.com |
|
This form is for |
Creation of charge |
|
Type of charge |
·
Immovable
Property ·
Any Interest
in Immovable Property ·
Movable
Property (not being pledge) |
|
Particular of
charge holder |
IDBI Bank Limited, Specialised Corporate Branch, Upper Ground Floor,
Captain C.S. Nayudu Arcade, 10/2 Old Palasia, Email: s.ashutosh@idbi.co.in
|
|
Nature of
description of the instrument creating or modifying the charge |
Company has
executed master Restructuring Agreement (MRA) with IDBI Bank Limited. And other Lenders to create security as per
the terms of Letter of Approval received from CDR Cell towards approval of
restructuring of loans. A joint deed Hypothecation was executed by the
company with an intent to create security in favour of IDBI Bank Limited and other Lenders |
|
Date of
instrument Creating the charge |
27.03.2012 |
|
Amount secured by
the charge |
Rs.10500.300
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As contained in MRA
dated 27.03.2012 Terms of Repayment As contained in
MRA dated 27.03.2012 Margin As contained in
MRA dated 27.03.2012 Extent and Operation of the charge As per Joint deed
Hypothecation charge on entire Assets of the company, Immovable and movable,
both present and future. 1. Term Loans, Working capital TL, Funded
Interest TL and interest TL and interest on FITL ·
First
pari – passu charge on the entire fixed assets ·
Second
pari – passu charge on the entire current assets 2. Cash Credit and Non Fund based on Working
Capital Facilities ·
First
pari – passu charge on the entire current assets ·
Second
pari – passu charge on the entire fixed
assets Other: Security common
for Term Loan, Funded Interest Term Loan Working Capital Term Loan (Fund
Based and Non Fund Based): 1. Pledge of 100%
Promoters/Promoters group shareholding (71.59%) 2. Un conditional and irrevocable Personal
Guarantee of Shri Santosh Shahra. 3. Additional Security in the from of first
mortgage and charge on pari – passu basisb on 70 acres land, adjacent to
Gandhidam Plant |
|
Short particulars
of the property charged |
·
Company's
immovable properties comprised in Plot No. 332, GIDC, Village : Mithirohar, District
: Kachchh, Gujrat. Revenue Survey NO. 573/P together with building, Pant and
Machinery ·
Company's
immovable properties comprised in revenue survey No. 116/1, 116/2, 117/1 and
118 at Village Mithirohar, sub District: Gandhidham, District: Kachahh, Gujrat
with building, Plant and Machinery. ·
Company's
immovable properties comprised in Plot No. 153-A to D, situated at Industrial
Area, Sector-3, Pithampur, Dhar (M.P.) together with building, other
constructions, erections and installations. ·
Company
Whole or the movable properties including is movable Plant and Machinery, Machinery Spares,
tools and accessories and other movable both present and future whether
installed or not. ·
Company Whole or the stock of the raw
material, semi-finished goods, consumable stores, book debts, receivables and
consumables stores and all other movable assets. |
PERFORMANCE REVIEW
During the year
the performance of the Company has been spectacular. Despite of the marginal increase
in top line by 14% the company came out of red and earned net profit of Rs
419.800 Millions. During the year the company started operations from all units
of the Expansion programme. The prices of raw materials and finished goods have
been volatile throughout the year. The Company has been on front foot because
of higher operational efficiency. The Company’s Sponge Iron production was
147529 MT (Previous year 79238 MT, growth of 86%), Steel Melting Shop
production was 242010 MT (Previous year 177677 MT, growth of 36%), Rolled
Products production was 174520 MT (Previous year 133994 MT, growth of 30%). The
Company’s exports have been to the tune of Rs.910.000 millions. The Company is
enjoying status of “Recognized Star Export House”.
MANAGEMENT DISCUSSION
AND ANALYSIS
The core business
of the Company is manufacturing and marketing of Iron and Steel products and
Power generation. The Management discussions and analysis is given hereunder:-
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The Indian economy
is largely domestic consumption led and accordingly it has been less affected
by the deceleration in global economic growth as compared to other countries.
Despite the strong adverse impact of global economic meltdown, Indian steel
demand remains better than in many countries. The domestic steel industry
staged a recovery during the year on account of revival of demand from the
automobile, rural infrastructure and housing sectors, although world’s major
steel producing countries are facing a steep fall in output.
All major players
in the steel industry have to adopt a collaborative and competitive approach to
create distribution channels in semi-urban and rural areas, share best
practices to become cost effective, efficiently tackle environment issues, focus
on development of skills of steel industry personnel and develop products that
are best suited to the needs of Indian steel users. Keeping global standards in
mind, industry should strive towards increasing per capita consumption of steel
than the present level.
Although Indian
Steel companies are better equipped to deal with market turbulence, in view of
their lowest manufacturing cost, they will have to overcome disadvantages like
lack of latest technology, low manpower productivity, absence of collaborative
and competitive approach, demand creation and distribution channel problems.
SEGMENT-WISE
PERFORMANCE: The Company is mainly in the business of manufacturing Steel products.
OUTLOOK:
The outlook for
the industry looks reasonable, since
The Steel players
are now eying on rural market in addition to growing sectors like construction,
infrastructure, automobile and engineering. The companies who are having
captive raw materials linkages can take advantage of higher margins on the back
of rising demand during the current year. The global recession and weak
economic scenario around the globe has its impact on Industry.
The future trend
of the domestic steel industry is directed towards achieving efficiency in the
production through world standards practices and thus catering to diversified
steel demand. The focus is therefore to meet competitiveness in terms of cost,
quality and product-mix and productivity. The liberalization of industrial
policy and other initiatives taken by the Government have given a definite
impetus for entry, participation and growth of the private sector in the steel
industry. While the existing units are being modernized/ expanded, a large
number of new/ green field steel plants are also coming up in different parts
of the country based on modern, cost effective, state of-the-art technologies.
With the current year already witnessing improved performance in terms of
realization and price stability, the profitability is expected to grow further
during 2010-11. The contribution from the newly started
Structural Mill and newly commissioned Thermal Power plant is yet to be
realized by way of enhanced production and maintaining the equilibrium between
supply and demand trends. In view of the buoyant growth of Indian Economy with
GDP of around 8 % to 8.50 % and CAGR of 20% in Automotive Industries and 15% in
Infrastructure AND Construction Industries, the Company does not foresee any
problem in maintaining its current growth in enhanced production and
profitability in the coming years.
CONTINGENT LIABILITIES: [AS ON 31.03.2010]
a) The Company has
given bank guarantee amounting to Rupees 53.284 millions to various State Government Departments.
b) Estimated
amount of contracts remaining to be executed on capital account is Rupees
87.457 millions
c) Income Tax demand appeal under ITAT Rs.3.463 Millions for Assessment
Year 2003-04 (deposited against demand with department is Rs.1.731 millions).
FIXED ASSETS:
- Land
- Building
- Plant and Machinery
- Furniture
- Vehicles
- Office Equipments
- Computers
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.54.88 |
|
|
1 |
Rs.86.84 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Information Gathered
by : |
JML |
|
|
|
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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.