MIRA
INFORM REPORT
|
Report Date : |
08.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
IMPEX FERRO TECH LIMITED |
|
|
|
|
Registered
Office : |
35, Chittaranjan Avenue, 4th Floor, Kolkata 700012, West
Bengal |
|
|
|
|
Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
Date of
Incorporation : |
07.06.1995 |
|
|
|
|
Com. Reg. No.: |
21-071996 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.674.716 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27101WB1995PLC071996 |
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|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchanges. |
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|
Line of Business
: |
The Subject is mainly in the business of Manufacturing and Sales of
Ferro-Alloys and Trading in Iron and Steel Products. |
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|
|
No. of Employees
: |
197 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6100000 |
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|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an establish company having satisfactory track. There
appears dip in the profitability of the company. However, trade relations are
reported to be fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered for business dealing at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
B+ (Long Term) |
|
Rating Explanation |
Having high risk of default regarding timely servicing of financial obligation. |
|
Date |
June 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A4 (Short Term) |
|
Rating Explanation |
Having minimal degree of safety regarding timely payment of financial obligation it carry very high credit risk and susceptible to default. |
|
Date |
June 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
35, Chittaranjan Avenue, 4th Floor, Kolkata 700012, West
Bengal, India |
|
Tel. No.: |
91-33-22110225/ 22110226/ 40640021/ 40640022 |
|
Fax No.: |
91-33-40640020 |
|
E-Mail : |
|
|
Website : |
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|
|
|
Corporate Office : |
SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026, West Bengal, India |
|
Tel. No.: |
91-33-40168000/ 8100 |
|
Fax No.: |
91-33-40168189/ 8107 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Kadavita Dendua Road, P. O. Kalyaneshwari, P. S. Kulti, Burdwan -
713369 West Bengal, India |
|
Tel. No.: |
91-341-2522248 / 49 |
|
Fax No.: |
91-341-2522961 |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Suresh Kumar Patni |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Mr. Ankit Patni |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
13.01.1985 |
|
Qualification : |
M.B.A from University of Technology, Sydney, CFA from ICFAI University. |
|
Date of Appointment : |
28.03.2011 |
|
|
|
|
Name : |
Mr. Prem Narayan Khandelwal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Ashok Kumar Jain |
|
Designation : |
Independent and Non-Executive Director |
|
Date of Birth/Age : |
09.01.1960 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
11.06.2008 |
|
|
|
|
Name : |
Mr. Vijay Kumar Jain |
|
Designation : |
Independent and Non-Executive Director |
|
Date of Birth/Age : |
15.06.1966 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
12.12.2011 |
|
|
|
|
Name : |
Mr. Satish Kumar Singh |
|
Designation : |
Independent and Non-Executive Director |
|
Date of Birth/Age : |
20.12.1985 |
|
Qualification : |
B. Tech (Electrical and Electronic Engineering) |
|
Date of Appointment : |
24.08.2012 |
KEY EXECUTIVES
|
Name : |
Mr. Ritesh Kumar Singh |
|
Designation : |
Secretary |
|
Date of Appointment : |
14.02.2012 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2012
|
Category |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
851800 |
1.26 |
|
Bodies
Corporate |
43588046 |
64.60 |
|
|
44439846 |
65.86 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
44439846 |
65.86 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12294814 |
18.22 |
|
|
|
|
|
|
4837128 |
7.17 |
|
|
5823574 |
8.63 |
|
|
76242 |
0.11 |
|
Non Resident
Indians |
74291 |
0.11 |
|
Trusts |
100 |
-- |
|
Clearing
Members |
1851 |
-- |
|
|
23031758 |
34.14 |
|
Total
Public shareholding (B) |
23031758 |
34.14 |
|
Total
(A)+(B) |
67471604 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
67471604 |
- |
(1) Indian
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionEquity Share Break up (Percentage of Total Equity)
BUSINESS DETAILS
|
Line of Business : |
The Subject is mainly in the business of Manufacturing and Sales of
Ferro-Alloys and Trading in Iron and Steel Products. |
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Products : |
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PRODUCTION STATUS (As on: 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Ferroy Alloys |
MT |
NA |
59025 |
Note: Installed capacity has been certified by the management
and not verified by the auditors being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
197 (Approximately) |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
Punjab National Bank ·
United Bank of India ·
HDFC Bank ·
State Bank of Travancore ·
State Bank of Bikaner and Jaipur ·
Indian Overseas Bank ·
Allahabad Bank |
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Facilities : |
(Rs.
In Millions)
A) Details of
Security (a) Term loans from Banks are secured by first charge on all the immovable and movable plant and machinery and other fixed assets including equitable mortgage of factory land with shed and building and office premises and second charge on the current assets of the Company, all ranking pari-passu jointly in favour of State Bank of India, Punjab National Bank and Bank of Baroda and personally guaranteed by the promoter Directors. (b) Loans against Vehicles are secured by way of hypothecation of the underlying asset financed. B) Terms of
Repayment a) Term Loans
* Term Loans carry an average interest rate of 17%. b) Unsecured Loan from Bodies Corporate amounting to Rs. 595.881 Millions are interest free. Balance carry an average interest rate of 12%. The loans are repayable at the option of the Company and are stated by the management to be in the nature of long-term borrowings. c) Loans against Vehicles are repayable by way of Equated Monthly Instalments subsequent to taking of such loan. The original period of such loans is between 3 and 5 years.
Working capital loans are secured by hypothecation of entire current assets including Stocks of Raw Materials, Stock-in-Process, Finished Goods, Stores and Spares, Receivables, both present and future ranking pari-passu jointly in favour of State Bank of India, Punjab National Bank, Bank of Baroda and United Bank of India and also secured by second charge on all the block assets and personally guaranteed by the promoter Directors. (B) Bridge Loan from WBIDC was sanctioned against interest subsidy receivable by the Company under West Bengal Incentive Scheme, 2000. As per the stipulated repayment terms, the said Bridge Loan is overdue for repayment since September, 2011. The Company intends to link the repayment of the said bridge loan with the receipt of admitted subsidy amount. |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. Jaykishan Chartered Accountant |
|
Address : |
Suite# 2D, 2E and 2F 12, Ho-chi-minh Sarani, Kolkata – 700071, West
Bengal, India |
|
Tel. No.: |
91-33-40035801 |
|
Fax No.: |
91-33-40035832 |
|
E-Mail : |
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|
Enterprises owned
or significantly influenced by the Key Managerial Personnel or their
relatives: |
· Ankit Metaland Power Limited · Arin Minerals Private Limited · Arthodock Vinimay Private Limited · Brahmand Udyog Limited · Dhodwala Enterprises Limited · Gold Mohar Steel Limited · Hira Concast Limited · Impex Cements Limited · Impex Industries Limited · Impex Metal and Ferro Alloys Limited · Impex Steel Limited · Invesco Finance Private Limited · Mahabali Ispat Private Limited · Patni Metal and Ferro Alloys Limited · Poddar Mech Tech Services Private Limited · Rohit Ferro-Tech Limited · Sahyogi Distributors Limited · Suanvi Trading and Investment Company Private Limited · Shreyansh Leafin Private Limited · Unilever Enterprises Private Limited · Vasupujya Enterprises Private Limited · Vikash Metal and Power Limited · Vikash Smelters and Alloys Limited · VSN Agro Products Limited · Whitestone Suppliers Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
68000000 |
Equity Shares |
Rs.10/- each |
Rs.680.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67471604 |
Equity Shares |
Rs.10/- each |
Rs.674.716
Millions |
|
|
|
|
|
(a) Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
31.03.2012 |
|
|
|
Nos. |
Rs. In Millions |
|
At the Beginning of the Period |
49971604 |
499.716 |
|
Issued During the Period |
17500000 |
175.000 |
|
At the End of the Period |
67471604 |
674.716 |
(b) Terms/Rights
attached to Equity Shares
The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. However, no dividend has been declared by the Company. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferrential amount. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
(c) Details of shareholders holding more than 5%
shares in the Company
|
Name of Shareholder |
31.03.2012 |
|
|
|
No. of Shares |
% holding |
|
Suanvi Trading and Investment Company Private Limited |
11483046 |
17.02 |
|
Sahyogi Distributors Limited |
* |
* |
|
Vasupujya Enterprises Private Limited |
10600000 |
15.71 |
|
Poddar Mech Tech Services Private Limited |
10633750 |
15.76 |
|
Invesco Finance Private Limited |
10871250 |
16.11 |
* Not holding more than 5% of Equity Shares as on that date
(d) The Company has made preferential allotment of 17,500,000 Equity Shares of Rs.10/- each at Rs.20/- per Equity Share (including a premium of Rs.10/-) in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 on 21st February, 2012. The Company has utilised the proceeds of the issue towards the objects of the said issue, i.e., repayment of unsecured loans, long-term working capital requirements and other general corporate purposes.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
674.716 |
499.716 |
499.716 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
860.990 |
653.951 |
585.971 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1535.706 |
1153.667 |
1085.687 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
994.230 |
1128.513 |
1395.936 |
|
|
2] Unsecured Loans |
923.778 |
813.952 |
632.139 |
|
|
TOTAL BORROWING |
1918.008 |
1942.465 |
2028.075 |
|
|
DEFERRED TAX LIABILITIES |
87.805 |
75.307 |
77.619 |
|
|
|
|
|
|
|
|
TOTAL |
3541.519 |
3171.439 |
3191.381 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2047.873 |
428.471 |
433.918 |
|
|
Capital work-in-progress |
43.629 |
1348.920 |
912.675 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1680.693
|
1537.604 |
1652.768 |
|
|
Sundry Debtors |
1293.855
|
1267.048 |
703.119 |
|
|
Cash & Bank Balances |
218.775
|
206.744 |
220.860 |
|
|
Other Current Assets |
136.342
|
30.362 |
0.000 |
|
|
Loans & Advances |
227.911
|
331.474 |
1043.283 |
|
Total
Current Assets |
3557.576
|
3373.232 |
3620.030 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1608.602
|
1545.154 |
1645.892 |
|
|
Other Current Liabilities |
486.460
|
399.030 |
23.922 |
|
|
Provisions |
12.497
|
35.000 |
109.371 |
|
Total
Current Liabilities |
2107.559
|
1979.184 |
1779.185 |
|
|
Net Current Assets |
1450.017
|
1394.048 |
1840.845 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
3.943 |
|
|
|
|
|
|
|
|
TOTAL |
3541.519 |
3171.439 |
3191.381 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5263.939 |
6027.500 |
5515.995 |
|
|
|
Other Income |
55.651 |
55.267 |
41.606 |
|
|
|
TOTAL (A) |
5319.590 |
6082.767 |
5557.601 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
3349.128 |
3789.814 |
1000.658 |
|
|
|
Purchases of Stock-in-Trade |
961.394 |
1426.450 |
3654.304 |
|
|
|
(Increase)/Decrease in Inventories |
(43.122) |
26.998 |
(39.452) |
|
|
|
Power and Fuel |
0.000 |
0.000 |
512.818 |
|
|
|
Employee Benefits Expense |
21.647 |
16.869 |
0.000 |
|
|
|
Other Expenses |
681.784 |
518.203 |
178.388 |
|
|
|
TOTAL (B) |
4970.831 |
5778.334 |
5306.716 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
348.759 |
304.433 |
250.885 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
242.948 |
170.142 |
121.180 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
105.811 |
134.291 |
129.705 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
45.443 |
29.329 |
28.747 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
60.368 |
104.962 |
100.958 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
24.513 |
36.982 |
35.995 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
35.855 |
67.980 |
64.963 |
|
|
|
|
|
|
|
|
|
Less |
Income Tax
Earlier Years |
0.000 |
0.000 |
(7.880) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
462.879 |
394.899 |
337.816 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
498.734 |
462.879 |
394.899 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1047.202 |
1037.999 |
1170.002 |
|
|
TOTAL EARNINGS |
1047.202 |
1037.999 |
1170.002 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
634.493 |
281.000 |
599.195 |
|
|
TOTAL IMPORTS |
634.493 |
281.000 |
599.195 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.69 |
1.36 |
1.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st Quarter |
|
Type |
Unaudited
|
|
Net Sales |
1348.900 |
|
Total Expenditure |
1226.700 |
|
PBIDT (Excl OI) |
122.200 |
|
Other Income |
9.200 |
|
Operating Profit |
131.400 |
|
Interest |
87.900 |
|
Exceptional Items |
0.000 |
|
PBDT |
43.500 |
|
Depreciation |
27.900 |
|
Profit Before Tax |
15.600 |
|
Tax |
5.400 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
10.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
10.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.67 |
1.12 |
1.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.15 |
1.74 |
1.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.08 |
2.76 |
2.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.09 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.62 |
3.40 |
3.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.69 |
1.70 |
2.03 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
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 |
Yes |
|
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
FINANCIAL AND
OPERATIONAL REVIEW
During the year the Company has achieved net sales/income from operation of Rs.5263.939 Millions as against Rs.6027.500 Millions in the previous year. The profit before tax for the year stood at Rs.60.368 Millions as against Rs.104.962 Millions in the previous year. The Company has produced 38,580.28 MT of Ferro Alloys as compared to 31,530.68 MT in previous year. During the year the net profit after tax reduced by 47.26% due to margin pressure on account of increase in raw material cost, power cost and interest cost.
AMALGAMATION
The Board of Directors of the Company in their meeting held on 30th May, 2012, took up the proposal of amalgamation of the Company with Rohit Ferro-Tech Limited, a group Company, subject to the approval of the members and creditors of the respective Companies, the Hon'ble Calcutta High Court, Stock Exchange(s) and other Concerned Authorities.
AWARDS AND ACHIEVEMENT
During the current year the Company has been awarded with "Top Exporter-Gold"under Medium Enterprise category by EEPC-ER (Engineering Export Promotion Council, Eastern Region) for its export contribution during the year 2009-10.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
The global economy is on a recovery path due to concerted policy actions around the world although it is still looking fragile in some regions. The world GDP, as reported by the International Monetary Fund, witnessed a moderate growth of 3.9% in 2011 as compared to a growth of 5.3% in 2010. The growth in the advanced economies slowed to 1.6% in 2011 in comparison to 3.2% in 2010, while the emerging and developing economies grew at 6.2% in 2011 compared to 7.5% in 2010.
Indian economy grew at 6.5% in 2011-12 down from 8.4% in 2010-11. Global factors such as euro zone crisis, geopolitical disturbances and weather extremities contributed to the domestic economic slowdown. Domestic factors like monetary tightening and rising repo rate to control inflation slowed industrial investment and growth. Fortunately, India enjoys the unique advantage of having multiple forces driving its economic growth engine in the form of a favourable demographic profile of population, relatively high savings and investment rates, a large domestic consumption base and the oft-quoted entrepreneurial spirit of its people.
COMPANY OVERVIEW
Subject a part of the Rs.38000.000 Millions SKP Group, was incorporated in 1995. Today, the Company possesses five sub merged arc furnaces with a cumulative ferro-alloys production capacity of 59,025 TPA and manufactures ferro-manganese and silico-manganese. In a significant initiative, the Company established a 30 MW captive power plant and emerged self-reliant in its energy needs.
CONTINGENT
LIABILITIES:
A) Contingent Liabilities not provided for
in the books of accounts in respect of:-
(a) Bills discounted with Banks outstanding as on 31st March, 2012 - Rs. 237.403 Millions (P.Y. - Rs. 97.366 Millions).
(b) Excise Demand of Rs. 2.887 Millions (P.Y. - Rs. 3.612 Millions) for the financial year 2005-06, 2006-07 and 2007-08 disputed in appeal (Rs. 0.500 Millions is paid under protest).
(c) Sales Tax Demand disputed in appeal for the year 2005-06, 2006-07, 2008-09 and 2009-10 aggregates to Rs. 240.029 Millions (P.Y. -Rs. 170.379 Millions). The Company has paid a sum of Rs. 8.862 Millions (P.Y. - Rs. 13.966 Millions) under protest.
(d) Several parties including the Company have disputed the basis of levy of Fuel Surcharge in the electricity bills of Damodar Valley Corporation (DVC). During the year, the Company has recognised amount of Rs. 77.761 Millions as expense being the adhoc payments made against the bills. An amount of Rs. 268.156 Millions (P.Y. - Rs. 195.298 Millions) (after considering waiver of electricity duty admitted by DVC) has not been provided for by the Company.
(e) Claims not acknowledged as debts for commitment charges debited by the Bank - Rs. 13.527 Millions (P.Y. - Rs. 13.527 Millions).
B) Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. 15.058 Millions (P.Y. - Rs. 196.147 Millions). Advances paid
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
(Rs. In Millions)
|
|
PARTICULARS |
UNAUDITED |
|
|
|
Quarter ended |
|
1. |
Income from
Operation |
30.06.2012 |
|
|
(a) Net Sales/Income from Operations |
1315.900 |
|
|
(b) Other Operating Income |
33.000 |
|
|
Total Income |
1348.900 |
|
2 |
Expenses |
|
|
|
(a) Cost of Materials Consumed |
511.600 |
|
|
(b) Purchases of Stock-in-Trade |
569.200 |
|
|
(c) Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(71.100) |
|
|
(d) Employee Benefits Expense |
5.500 |
|
|
(e) Depreciation and Amortisation Expense |
27.900 |
|
|
(f) Power |
161.700 |
|
|
(g) Other Expenses |
49.800 |
|
|
Total Expenses |
1254.600 |
|
3 |
Profit(+)/ Loss (-)
from Operations before Other Income, Finance Costs & Exceptional Items
(1-2) |
94.300 |
|
4 |
Other Income |
9.200 |
|
5 |
Profit(+)/ Loss (-)
before Finance Costs & Exceptional Items (3+4) |
103.500 |
|
6 |
Finance Costs |
87.900 |
|
7 |
Profit(+)/ Loss
(-) after Finance Costs but before
Exceptional Items (5-6) |
15.600 |
|
8 |
Exceptional Items |
0.000 |
|
9 |
Profit (+)/ Loss
(-) from Ordinary Activities before tax (7-8) |
15.600 |
|
10 |
Tax expense |
5.400 |
|
11 |
Net Profit
(+)/Loss(-) from Ordinary Activities after tax (9-10) |
10.200 |
|
12 |
Extraordinary Item |
0.000 |
|
13 |
Net Profit
(+)/Loss(-) for the period (11+12) |
10.200 |
|
14 |
Paid-up equity share capital (Face Value of Rs.10/- per share) |
674.700 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
|
|
16 |
Earnings per share (EPS) for the year ended |
|
|
|
Basic |
0.15 |
|
|
Diluted |
0.15 |
SELECT INFORMATION
FOR THE QUARTER ENDED 30.06.2012
(Rs. In Millions)
|
|
|
UNAUDITED |
|
|
|
Quarter ended |
|
A |
PARTICULARS OF
SHAREHOLDING |
30.06.2012 |
|
1 |
Public shareholding |
|
|
|
- Number of shares |
23031758 |
|
|
- Percentage of shareholding |
34.14% |
|
2 |
Promoters and
Promoter Group shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of shares |
190860 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
0.43% |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
0.28% |
|
|
b) Non - encumbered |
|
|
|
- Number of shares |
44248986 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
99.57% |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
65.58% |
|
|
Particulars |
Three Months Ended 30.06.2012 |
|
(B) |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the Quarter |
Nil |
|
|
Received during the Quarter |
Nil |
|
|
Disposed of during the Quarter |
Nil |
|
|
Remaining unresolved at the end of the Quarter |
Nil |
Notes:
1. The above financial results have been
reviewed by the Audit Committee and approved by the Board of Director at its
meeting held on 14th August, 2012.
2. The Statutory Auditors of the Company have carried
out the “LIMITED REVIEW” of the financial results.
3. The EPS for the respective period have been
calculated based on weighted average number of equity shares outstanding during
the period.
4. Tax expense includes Provision for Current
Tax, Deferred Tax and Tax for earlier years.
5. Figure for the previous period have been
regrouped/ rearranged whether considered necessary.
SEGMENT-WISE
REVENUE AND RESULTS
(Rs. In Millions)
|
|
PARTICULARS |
UNAUDITED |
|
|
|
Quarter ended |
|
|
|
30.06.2012 |
|
1. |
Segment Revenue |
|
|
|
a) Ferro Alloys |
738.400 |
|
|
b) Iron and Steels |
610.500 |
|
|
c) Power Plant |
74.500 |
|
|
Total |
1423.400 |
|
|
Less: Inter Segment Revenue |
(74.500) |
|
|
Net Sales/ Income from
Operations |
1348.900 |
|
2 |
Segment Results |
|
|
|
Profit before Tax and Interest |
|
|
|
a) Ferro Alloys |
91.500 |
|
|
b) Iron and Steels |
41.300 |
|
|
c) Power Plant |
(29.300) |
|
|
d) Un-allocated |
-- |
|
|
Total |
103.500 |
|
|
Less: Finance Costs |
87.900 |
|
|
Less: Exceptional Item |
-- |
|
|
Total Profit before
tax |
15.600 |
|
3. |
Capital Employed |
|
|
|
(Segment
assets-segment liabilities) |
|
|
|
a) Ferro Alloys |
1770.400 |
|
|
b) Iron and Steels |
461.600 |
|
|
c) Power Plant |
1700.200 |
|
|
d) Un-allocated Assets |
(104.400) |
|
|
Total |
3827.800 |
AS PER WEBSITE DETAILS:
PROFILE
The company was incorporated on June 07, 1995 with the intention to set up a plant for manufacturing Silico Manganese and Ferro Manganese, In the year 1997-98, the company set up two number of submerged arc furnaces with capacities of 3.60 MVA and 5 MVA for manufacturing Silico Manganese and Ferro Manganese respectively at Kalyaneswary, West Bengal and the unit became fully operational in 1998-99. The company further went for expansion in the year 2000-01, when the third furnace having a rating of 7.50 MVA was installed and the same commenced production in April 2002.
Encouraged with the market and the acceptance for its products and the growing demand for ferro alloys by the consuming industry, both in the domestic and export market, the company went for further expansion by putting up a fourth submerged arc furnace of 8.25 MVA for manufacturing HC Silico Manganese and commissioned the same in the year 2004. Encouraged further with the buoyant demand for the company’s products, the company went for another round of expansion in the year 2008-09, by commissioning its 5th submerged electric arc furnace of 7.5 MVA capacity for manufacturing Ferro Manganese.
The company has been awarded the ISO 9001:2000
certification for manufacture and supply of different types of ferro alloys
like ferro-manganese, silico manganese and ferro chrome.
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.88.49 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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.