MIRA INFORM REPORT

 

 

Report Date :

17.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MSP STEEL AND POWER LIMITED

 

 

Registered Office :

1, Crooked Lane, Kolkata – 700 069, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.11.1968

 

 

Com. Reg. No.:

21-027399

 

 

Capital Investment / Paid-up Capital :

Rs.668.940 Millions

 

 

CIN No.:

[Company Identification No.]

L27109WB1968PLC027399

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALM04906G

 

 

PAN No.:

[Permanent Account No.]

AACCA2756N

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Iron and Steel.

 

 

No. of Employees :

Not Available  

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 15500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a flagship company of “MSP Group”. It is a well established company having a good track record. There appears sharp fall in its profitability during the year 2011-2012. The external borrowings seems to be increasing over a year.

 

However, general financial position appears to be strong. The subject gets good support from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment.

 

In view of experience promoters, the company can be considered normal for business dealings at usual trade terms and condition. 

 

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

LONG TERM RATING : CARE BBB+

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.

Date

December 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.

 

INFORMATION DECLINED BY

 

Name :

Ms. Pinky Gupta

Designation :

Company Secretary

Contact No.:

91-33-40057777

Date :

15.04.2013

 

 

LOCATIONS

 

Registered Office :

1, Crooked Lane, Kolkata – 700 069, West Bengal, India

Tel. No.:

91-33-22483795 / 4138

Fax No.:

91-33 22481738

E-Mail :

invertor.contact@mspsteel.com

Website :

http://www.mspsteel.com

 

 

Corporate Office :

16/ S, Block 'A' New Alipore, Kolkata - 700 053, West Bengal, India

Tel. No.:

91-33-24570038/ 24573940/ 40057777

Fax No.:

91-33-24582239/ 40057788

E-Mail :

contactus@mspsteel.com

 

 

Factory :

P.O. and Village : Jamgaon, District – Raigarh, Chattishgarh, India

Tel. No.:

91-7762-2644-49/ 51/ 52/ 53

Fax No.:

91-7762-264450

E-Mail :

sambeet.das@mspsteel.com

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Puranmal Agrawal

Designation :

Chairman and Whole-time Director

Qualification:

B.com

Date of Birth/Age:

63 Years

Date of Appointment:

09.07.2007

 

 

Name :

Mr. Suresh Kumar Agrawal

Designation :

Managing Director

Qualification:

B.E. Mechanical

Date of Birth/Age:

59 Years

Date of Appointment:

09.07.2007

 

 

Name :

Mr. Manish Agrawal

Designation :

Non Executive  Director

 

 

Name :

Mr. Saket Agrawal

Designation :

Non Executive  Director

 

 

Name :

Mr. Arvind Kumar Saraf

Designation :

Independent Director

 

 

Name :

Mr. Navneet Jagatramka

Designation :

Independent Director

 

 

Name :

Mr. Amit Mehta

Designation :

Independent Director

 

 

Name :

P. K Gupta

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Pinky Gupta

Designation :

Company Secretary

Qualification:

B.Com (H), ACS

Experience:

7 Years (secretarial work and statutory compliance)

 

 

Name :

Mr. George Thomas

Designation :

(Sr. General Manager- Corporate HR and Administration)

 

 

Name :

Mr. Kamal Kumar Jain

Designation :

Head (Finance and Accounts)

 

 

Name :

Mr. B.K. Singh

Designation :

President (Works and Power Projects)

 

 

Name :

Mr. Manish Seth

Designation :

President (Commercial and Pellet)

 

 

Name :

Mr. Sambeet Das

Designation :

(Vice President- Marketing and Sales)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2012

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

clear(1) Indian

 

 

clearIndividuals / Hindu Undivided Family

2303240

3.38

clearBodies Corporate

46660260

68.52

clearSub Total

48963500

71.90

clear(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

48963500

71.90

(B) Public Shareholding

 

 

clear(1) Institutions

 

 

clearFinancial Institutions / Banks

254990

0.37

clearSub Total

254990

0.37

clear(2) Non-Institutions

 

 

clearBodies Corporate

11677310

17.15

clearIndividuals

 

 

clearIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

4990832

7.33

clearIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

2038351

2.99

clearAny Others (Specify)

175017

0.26

clearNon Resident Indians

156137

0.23

clearClearing Members

18880

0.03

clearSub Total

18881510

27.73

Total Public shareholding (B)

19136500

28.10

Total (A)+(B)

68100000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

clear(1) Promoter and Promoter Group

-

-

clear(2) Public

-

-

clearSub Total

-

-

Total (A)+(B)+(C)

68100000

--

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Iron and Steel.

 

 

Products :

Product Description

ITC Code (Item Code No.0

TMT Bar

7214 90 00

Sponge Iron

7203 10 00

M.S. Billiets

7224 90 91

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available 

 

 

Bankers :

·         State Bank of India

·         ING Vysya Bank

·         Andhra Bank

·         UCO Bank

·         Indian Overseas Bank

·         State Bank of Mysore

·         Allahabad Bank

·         Axis Bank

·         State Bank of Bikaner and Jaipur

·         United Bank of India

·         Corporation Bank

·         DBS Bank Limited

·         ICICI Bank Limited

·         Union Bank of India

·         Dena Bank

·         Oriental Bank of Commerce

 

 

Facilities :

Secured Loan

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

Term loans

 

 

From Banks

 

 

- Indian rupee loan

3857.301

3198.736

- Foreign currency loan

757.757

699.000

Finance Lease Obligation

 

 

- From Banks

3.091

3.205

- From Body Corporate

2.926

2.560

Rupee Loan from Banks

0.000

0.000

Cash Credit Facility

2444.630

1667.268

Cash Credit Facility from non consortium banks

262.009

0.000

Short term Loan

0.000

500.000

Foreign Currency Loans from Banks

508.271

50.665

Total

7835.985

6121.434

 

Term loans from banks and financial institutions

 

Particulars

Outstanding

including current

maturities

No. of

Installments

Rs. In Millions

 

Starting

Month

Period of Maturity with

respect to 31st March,

2012 (in Years)

Rate

of

interest

From Banks

 

 

 

 

 

Indian rupee loan

(Quarterly installments)*

8

284.879

Jun.' 12

2

14.00% - 15.00%

 

(12)

(454.758)

(Jun.' 11)

(3)

(12.75% - 13.50%)

 

12

113.879

Jun.' 12

3

14.75%

 

(16)

(151.879)

(Jun.' 11)

(4)

(13.00%)

 

9

157.078

Jun.' 12

3

14.75%

 

(13)

(227.078)

(Jun.' 11)

(4)

(13.00%)

 

21

1549.994

Jun.' 12

6

13.50% -15.00%

 

(21)

(1513.758)

(Jun.' 12)

(7)

(12.50%-13.75%)

 

20

340.556

Mar.' 13

6

13.65%-14.25%

 

(20)

(208.905)

(Mar.' 13)

(7)

(12.50%-13.00%)

 

28

1201.377

Mar.' 13

8

13.50%-14.00%

 

(28)

(920.238)

(Mar.' 13)

(9)

(12.00%-13.75%)

 

26

770.298

Dec.' 13

8

13.45%-13.90%

 

28

85.000

Dec.' 14

10

13.50%

Total (A)

 

4503.061 (3476.616)

 

 

 

 

 

 

 

 

 

Foreign currency loan

(Half yearly installments)**

8

866.008

Dec.' 12

5

8.80%

 

(8)

(699.000)

(Dec.'12)

6

(After considering the hedge effect)

Total (B)

 

866.008 (699.000)

 

 

 

 

 

 

 

 

 

Finance lease obligation

(Monthly installments)***

 

 

 

 

 

From banks

3-32

6.907

Apr.' 12

3

7.99%-12.79%

(1-33)

(6.164)

(Apr.' 11)

(3)

(7.99%-12.79%)

From body corporate

12-26

5.867

Apr.' 12

3

10.45%-11.50%

 

(5-36)

(4.434)

(Apr.' 11)

(3)

(10.45%-11.50%)

Total (C)

 

127.74

(105.98)

 

 

 

 

 

 

 

 

 

Deferred Payments Credits

(unsecured) (Annual installments)

 

 

 

 

 

From Bodies Corporate

-

-

 

 

 

-

(125.785)

(Apr.' 12)

(1)

Interest Free

From Related Parties

-

-

 

 

 

-

(275.638)

(Apr.' 12)

(1)

Interest Free

Total (D)

 

-

(401.423)

 

 

 

 

 

 

 

 

 

Unsecured (Annual installments)

 

 

 

 

 

Inter Corporate Deposits from Bodies Corporate

-

69.500

Apr.' 13

1

10.00% - 16.50%

-

(102.558)

(Apr.' 12)

(1)

(12.00%)

Loans & Advances from Related Parties

-

2.500

Apr.' 13

1

12.00%

-

(7.456)

(Apr.' 12)

(1)

(12.00%)

Total (E)

 

72.000

(110.014)

 

 

 

 

 

 

 

 

 

Grand Total [A+B+C+D+E]

 

5453.843

(4697.651)

 

 

 

 

Note:

Nature of security:

 

* Rupee Term Loans from Banks are secured by way of equitable mortgage of Company’s land and immovable properties at Raigarh, first charge by way of hypothecation of the Company’s movable assets (save and except book debts) including movable machinery, machinery spares, tools and accessories, (both present and future), second charge over entire current assets of the company , (both present and future), on pari passu basis. The term loans are further secured by the personal guarantees of Puranmal Agrawal (the Chairman), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal (Directors of the Company).

 

  ** Foreign Currency Loans from Banks are secured by way of equitable mortgage of Company’s land and immovable properties at Raigarh, first charge by way of hypothecation of the Company’s movable assets (save and except book debts) including movable machinery, machinery spares, tools and accessories, (both present and future), second charge over entire current assets of the company, (both present and future), on pari passu basis. The term loans are further secured by the personal guarantees of Puranmal Agrawal (the Chairman), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal (Directors of the Company).

 

*** Hire purchases obligations are secured by hypothecation of vehicles purchased under the respective agreements.

 

Cash Credit and other working capital facilities and Foreign currency loans from banks are secured by hypothecation of raw materials, finished goods, goods under process, stores and spares, book debts etc. (both present and future), second charge over the entire fixed assets of the Company and personal guarantees of Puranmal Agrawal (the Chairman), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal (Directors of the Company).

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R.  Batliboi and Company

Chartered Accountants

 

 

Jointly Controlled Entity:

·         Madanpur South Coal Company Limited

 

 

Subsidiary Company:

·         MSP Group International Singapore (PTE) Limited

·         AA ESS TradeLinks Private Limited (effective from 8th July, 2011)

·         MSP Cement Limited (effective from 31st August, 2011)

 

 

Enterprises over which Key Management Personnel and / or their Relatives have significant influence:

·         Adhunik Gases Limited

·         Ashirwad Steels and Industries Limited

·         B.S. Confin Private Limited

·         Chaman Metallics Limited

·         Danta Vyappar Kendra Limited

·         Emerald Tradelink Private Limited.

·         Ginny Traders Private Limited

·         High Time Holding Private Limited

·         Howrah Gases Limited

·         Larigo Investment Private Limited

·         MSP Infotech Private Limited

·         MSP Metallics Limited

·         MSP Mines and Minerals Private Limited

·         MSP Power Limited

·         MSP Properties (India) Limited*

·         MSP Sponge Iron Limited

·         Raj Securities Limited

·         Rajnath Vyapaar Private Limited

·         Shree Khathupati Mercantiles Private Limited

 

 

CAPITAL STRUCTURE

 

After 18.09.2012

 

Authorised Capital : Rs.1170.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.968.940 Millions

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

82000000

Equity Shares

Rs.10/- each

Rs.820.000 Millions

15000000

6% Non Cumulative Preference Shares

Rs.10/- each

Rs.150.000 Millions

 

Total

 

Rs. 970.000

Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

58100000

Equity Shares

Rs.10/- each

Rs.581.000 Millions

8794000

6% Non Cumulative Preference Shares

Rs.10/- each

Rs.87.940 Millions

 

Total

 

Rs.668.940 Millions

 

 

Reconciliation of the shares outstanding at the beginning and at the end of the year

 

Equity shares

No.

Rs. In millions

 

 

 

At the beginning of the year

58,100,000

581.000

Outstanding at the end of the year

58,100,000

581.000

 

 

Preference shares

No.

Rs. In millions

At the beginning of the year

7,540,000

75.400

Issued during the year

1,254,000

12.540

Outstanding at the end of the year

8,794,000

87.940

 

Terms/ rights attached to equity shares

The Company has only one class of equity shares having a nominal 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. During the year ended 31st March, 2012, the dividend per share recognised as proposed distributions to equity shareholders is Rs. 0.25 (31st March, 2011: Rs. 0.50).

 

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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Terms/rights attached to preference shares

 The Company has only one class of preference shares (i.e. 6% non cumulative redeemable preference shares) having a nominal value of Rs.10/- per share. The preference shareholders shall have the right to vote on any resolution of the Company directly affecting their rights. The Company declares and pays preferential dividends in Indian rupees.

 

The preference share of the Company are non cumulative in nature and therefore in case the Company does not declare dividend in any particular year, dividend right gets lapsed and is not eligible for carry forward in future years.

 

During the year, the Company has issued 1,254,000 (31st March, 2011: 7,540,000) numbers of preference shares of Rs. 10 each in the same class with a premium of Rs. 90 per share on private placement basis.

 

During the year ended 31st March, 2012, the dividend per share recognised as proposed distributions to preference shareholders is Rs.0.60 (31st March, 2011: Rs. 0.60).

 

Preference shares are redeemable within 20 years from the date of allotment at a price to be decided by the Board of Directors at the time of redemption.

 

In the event of liquidation of the Company, the holders of preference shares will be entitled to receive assets of the Company, before its distribution to equity shareholders. The distribution will be in proportion to the number of preference shares held by the preference shareholders.

 

Details of shareholders holding more than 5% shares in the company

 

Equity shares of Rs. 10/- each fully paid

No.

% holding in

the class

MSP Infotech Private Limited

7,129,760

12.27%

MSP Properties (I) Limited

6,030,500

10.38%

Adhunik Gases Limited

4,004,000

6.89%

K. C. Texofine Private Limited

3,932,000

6.77%

Raj Securities Limited 

3,872,000

6.66%

Larigo Investment Private Limited

3,835,000

6.60%

Rama Alloys Private Limited

2,965,000

5.10%

 

Details of shareholders holding more than 5% shares in the company

 

Preference shares of Rs. 10/- each fully paid

No.

% holding in

the class

Jaik Leasing and Commercial Investment Limited

1,540,000

17.51%

Dexo Trading Private Limited

1,220,000

13.87%

M.A. Hire Purchase Private Limited

1,105,000

12.57%

Sikhar Commotrade Private Limited

935,000

10.63%

Ravi Business Services Private Limited

760,000

8.64%

Shree Vinay Finvest Private Limited

680,000

7.73%

Mod Commodeal Private Limited

442,000

5.03%

Shringar Mercantile Private Limited

442,000

5.03%

 

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

668.940

656.400

581.000

2] Share Application Money pending allotment

318.100

0.000

222.000

3] Reserves & Surplus

2894.288

2543.463

1431.880

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

3881.328

3199.863

2234.880

LOAN FUNDS

 

 

 

1] Secured Loans

7835.985

6121.434

4247.442

2] Unsecured Loans

466.542

649.937

363.271

TOTAL BORROWING

8302.527

6771.371

4610.713

DEFERRED TAX LIABILITIES

380.801

333.734

198.579

 

 

 

 

TOTAL

12564.656

10304.968

7044.172

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

4958.223

4999.076

2558.863

Capital work-in-progress

5165.536

2935.224

2221.742

 

 

 

 

PRE-OPERATIVE AND TRIAL RUN EXPENSES (PENDING ALLOCATION)

0.000

0.000

232.355

 

 

 

 

INVESTMENT

324.191

69.501

449.542

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

2100.776

1208.547
683.401

 

Sundry Debtors

459.853

404.040
668.372

 

Cash & Bank Balances

72.069

96.342
378.700

 

Other Current Assets

207.459

11.534
0.639

 

Loans & Advances

1319.043

1656.286
541.354

Total Current Assets

4159.200

3376.749
2272.466

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

524.378

270.082
581.160

 

Other Current Liabilities

1439.087

683.561
61.172

 

Provisions

79.029

121.939
48.464

Total Current Liabilities

2042.494

1075.582

690.796

Net Current Assets

2116.706

2301.167
1581.670

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

12564.656

10304.968

7044.172

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

6963.292

4793.288

3887.448

 

 

Other Income

52.276

341.215

71.090

 

 

TOTAL                                     (A)

7015.568

5134.503

3958.538

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw material and components consumed

4280.896

3165.718

3246.469

 

 

Purchase of traded goods

579.644

349.133

 

 

 

(Increase) in inventories of finished goods,

work-in-progress and traded goods

(180.079)

(383.557)

 

 

 

Employee benefits expenses

184.049

153.372

 

 

 

Other expenses

936.752

748.920

 

 

 

Prior period expenses

0.668

1.572

 

 

 

TOTAL                                     (B)

5801.930

4035.158

3246.469

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

1213.638

1099.345

712.069

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

585.913

235.055

204.043

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

627.725

864.290

508.026

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

290.878

193.290

125.735

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

336.847

671.000

382.291

 

 

 

 

 

Less

TAX                                                                  (I)

76.538

168.890

61.749

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

260.309

502.110

320.542

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1859.304

1426.321

1105.779

 

 

 

 

 

Less

APPROPRIATION

2097.270

69.127

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

2188.740

1859.304

1426.321

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Export Earnings

737.189

210.256

314.235

 

TOTAL EARNINGS

737.189

210.256

314.235

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

172.831

52.689

71.179

 

 

Stores & Spares

4.874

3.643

1.167

 

 

Capital Goods

77.713

254.219

7.951

 

TOTAL IMPORTS

255.418

310.551

80.297

 

 

 

 

 

 

Earnings Per Share (Rs.)

Basic

 

4.39

 

8.62

 

5.51

 

Dilute

4.26

8.62

5.51

 

 

QUARTERLY RESULTS

 

 

PARTICULARS

 

30.06.2012

(1st Quarter)

(Unaudited)

30.09.2012

(2nd Quarter)

(Unaudited)

31.12.2012

(3rd Quarter)

 (Unaudited)

Net Sales

2189.310

1986.700

2081.100

Total Expenditure

1794.900

1575.900

1668.600

PBIDT

394.410

410.900

412.400

Other Income

13.240

8.100

8.300

Operating Profit

407.650

419.000

420.700

Interest

180.740

254.200

257.700

Exceptional Items

0.000

0.000

0.000

PBDT

226.910

164.800

162.900

Depreciation

74.730

126.800

128.900

Profit Before Tax

152.180

38.100

34.100

Tax

50.120

13.600

13.800

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

102.060

24.400

20.300

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

102.060

24.400

20.300

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
 3.71

9.78
8.10

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
4.84

13.99
9.83

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
3.69

8.01
7.91

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.09

0.21
0.17

 

 
 

 
 

Debt Equity Ratio

(Total Debt/Networth)

 
2.14

2.12
2.06

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.04

3.14
3.29

 

 

 

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

No

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

 

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars

31.03.2012

31.03.2011

 

 

 

Deferred Payment Credits

0.000

401.423

Inter Corporate Deposits

69.500

102.558

Loans and Advances from related parties

2.500

7.456

Working Capital loan

290.000

0.000

Inter Corporate Deposits

104.542

138.500

Total

466.542

649.937

 

Notes:

 

Working Capital loan from Body Corporates is secured by personal guarantees of Puranmal Agrawal (the Chairman) and Suresh Kumar Agrawal (Director of the Company) and Subservient charge on all moveable assets including stock and bdebtors.

 

HIGHLIGHT

 

During the year, the company has commissioned 383,625 MTPA of coal washery at Jamgaon, Raigarh.

 

The gross revenues from operations of the company have increased to Rs. 7517.700 millions, registering a growth of 44.64% over previous year’s level of Rs.5197.500 millions.

 

EXPANSION PROJECT

 

The company started its backward integration with capacity of Rs.0.900 million MTPA of Beneficiation Plant, Rs.0.600 millions MTPA of Pellet Plant, 34 MW of Power Plant and 117,952 MTPA of Billet Plant. Pellet, Beneficiation and Power Plant has started trial production and the company will be in full control of EBITDA margins.

 

The company has option to sell the surplus pellet in the market to maximise the margins.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDIA’S ECONOMIC SCENARIO

 

India went through a turbulent year, affected by worsening global conditions and domestic concerns such as high inflation, tight monetary policy and infrastructure constraints. The GDP rate stood at 6.5%, the lowest in nine years. Though the agriculture and services sectors performed well, weakening industrial activity hampered overall economic growth. Due to the rising uncertainty in the Eurozone and muted domestic investment, economic growth for FY 2012-13 is likely to be restricted at FY 2011-12 levels. Further, WPI inflation is expected to remain high at 7% for FY 2012-13.

 

GLOBAL STEEL INDUSTRY

 

The world steel production for the year ending 2011 grew by 4.8% to reach 1,486 million metric tonnes (MMT) compared to 1,418 MMT in the previous year. Steel production is gradually shifting from developed markets to emerging economies. China is anticipated to outperform globally, whereas the NAFTA region and Europe are likely to grow at 5% and 2.5%, respectively. Steel consumption, on the other hand, has witnessed a slower growth of 3.6% in 2011, due to the Eurozone crisis and lower steel-intensive growth in China.

 

 

INDIA’S STEEL INDUSTRY

 

India’s steel industry plays a pivotal role in the country’s growth and development. Globally, India is the fourth largest steel producer. The acquisition of global capacities, constant modernisation and upgradation of old plants, improving energy efficiency and backward integration into global raw material sources have enhanced India’s position on the global steel map.

 

 

BUSINESS OVERVIEW

 

Performance Review of the Company

 

The overall operational performance of the Company has been satisfactory during the year. The brief financial performance of the Company is as follows

 

A brief operational performance of the Company is as follows:-

 

i) Pellet plant

 

Pellet production was 271,118 MT as compared with 185,219 MT during the previous year

 

ii) Sponge Iron plant

 

The production of sponge iron increased to 195,595 MT compared to 158,187 MT in the previous year.

 

iii) Power generation

 

The total power generation was 269,777,140 KWH compared to 192,995,100 KWH during the previous year.

 

iv) Ingot/Billets

 

The production of Ingot/billets was 143,371 MT compared to the previous year’s production of 102,326 MT.

 

v) TMT Bars

The production of TMT Bar was 75,693 MT compared to 49, 379 MT during the previous year.

 

vi) Structural Rolling Mill

 

The production of structural steel was 49,501 MT compared to 53,196 MT in the previous year. A two-pronged strategy has been adopted by the Company towards achieving long-term sustainability. On the demand side, the strategy is to create incremental demand through promotional efforts, creation of awareness and strengthening the delivery chain, particularly in rural areas. On the supply side, the strategy is to facilitate creation of additional capacity, remove procedural and policy bottlenecks in the availability of inputs such as iron ore and coal, make higher investments in R and D and HRD and encourage the creation of infrastructure such as roads, railways, and ports.

 

The Company is in the process of demerging its cement division into MSP Cement Limited. The Company’s cost reduction measures and improvements of products are expected to provide a competitive edge in the market. The proposed demerger will increase the ability to compete in international and domestic markets, thereby creating enhanced value for shareholders. It will also allow a focused strategy in operations, which would be in the best interest of all stakeholders. The demerger will also provide scope for independent collaboration and expansion without committing the existing organisation in its entirety.

 

 

During the year, the Company acquired a 52.66% stake in AA ESS Tradelinks Private Limited to improve its logistic support in Odisha. AA ESS Trade Link Limited has rights touse a private railway siding in Odisha, which he Company will leverage to transport iron ore fines.

 

The three ingredients for steel production are Power, Iron-Ore and Coal. The Company strives to achieve of economies of scale and to enhance production capacity. The Company is also working to increase its captive power generation capacity in steel and power. The Company has, over the years, built a strong technical and managerial team with expertise in setting up and managing ventures.  he Company is committed to sustainable development, fulfilling its responsibility towards the society while accomplishing business objectives.

 

FINANCIAL MANAGEMENT

 

Capital budgeting and subsequent progress of projects under implementation are monitored on a periodic basis by senior management personnel. Funding is arranged by borrowing from a consortium of banks at competitive rates. The balance is covered by internal accruals and promoter contributions. During the year, the Company issued 1,254,000 units of 6% noncumulative, non-convertible redeemable preference shares of Rs. 10 each with a premium of Rs. 90 per share on private placement basis. The Company is under process to raise Rs.600.000 millions of equity by way of issue of equity shares on a preferential basis. Well-trained and highly efficient professionals are responsible for operations in the factories and in the Accounting and Finance department of the Company. The team ensures that established organisational procedures, laid down by the senior management at a strategic level, are followed and incorporated into financial results and periodic management reports. Regular audits are conducted to ensure that proper controls are in place.

 

FINANCIAL PERFORMANCE

 

The Company’s performance during FY 2011-12 was one of growth with consolidation. They benefitted from a full year’s working of the 115,500 MTPA of Sponge Iron Plant and the 18 MW Power Plant. Further, the two month trial working of the 0.600 millions MTPA Pellet Plant helped to boost the Company’s revenues. Going forward, the Company expects that revenues from the newly-commissioned projects and incremental capacity utilisations from existing projects will improve the revenues and EBITDA margins.

 

 

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012

                                                                                                                       (Rs. In Millions)

 

31.12.2012

30.09.2012

31.12.2012

Particulars

Quarter Ended

9 Month Ended

 

(Reviewed)

1 (a)Gross Sales/Income from Operations

2249.154

2178.100

6834.295

Less: Excise Duty

201.157

215.268

606.668

Income from Operations (Net)

2047.997

1962.832

6173.627

(b) Other Operating Income

33.055

23.910

83.478

Total income from operations (net)

2081.052

1986.742

6257.105

2 Expenditure:

 

 

 

(a) Cost of Materials Consumed

1203.888

1141.306

3607.140

(b) Purchase of Stock in Trade

156.763

101.121

257.884

(c) (Increase)/Decrease in Inventories of Finished Goods, Work in Progress and Stock-in-Trade

(97.974)

(40.367)

(69.226)

(d) Employees Costs

68.387

67.281

187.360

(e) Depreciation

128.854

126.771

330.351

(f) Other Expenditure

337.569

306.507

1056.226

Total Expenses

1797.487

1702.619

5369.735

3 Profit from Operations before Other Income, Finance Costs and Exceptional Items (1-2)

2835.565

284.123

887.370

4 Other Income

8.251

8.108

29.598

5 Profit from Ordinary Activities before Finance Costs and Exceptional Items (344)

291.816

292.231

916.968

6 Finance Costs

257.723

254.161

692.624

7 Profit from Ordinary Activities after Finance Costs but before Exceptional Items (5-6)

34.093

38.070

224.344

8 Exceptional Items

--

--

--

9 Profit before Taxes (7-8)

34.093

38.070

224.344

10 Tax Expense

 

 

 

Current Tax [Minimum Alternate Tax (MAT)]

8.938

8.380

48.297

MAT Credit Entitlement

(6.821)

(7.612)

(44.881)

Deferred Tax Charge

11.676

12.864

74.133

11 Net Profit for the Period (9-10)

20.300

24.438

146.795

12 Paid up Equity Share Capital

681.000

681.000

681.000

(Equity shares of Rs.10/-each)

 

 

 

13 Reserves excluding Revaluation Reserves

NA

NA

NA

14 Earnings Per Share (EPS) (in Rs.)

 

 

 

Basic

0.30

0.36

1.59

Diluted

0.30

0.36

1.59

 

 

 

 

A PARTICULARS OF SHAREHOLDING

 

 

 

1 Public Shareholding

 

 

 

-- Number of Shares

19136500

19136500

19136500

-- Percentage of Shareholding

28.10%

28.10%

28.10%

2 Promoters and Promoter Group shareholding

 

 

 

a) Pledged/ Encumbered

 

 

 

- Number of shares

Nil

Nil

Nil

- Percentage of Shares (as a % of total shareholding of promoter and Promoter Group)

Nil

Nil

Nil

- Percentage of Shares (as a % of total share capital of the Company )

Nil

Nil

Nil

b) Non Encumbered

 

 

 

- Number of shares

48963500

48963500

48963500

- Percentage of Shares (as a % of total shareholding of promoter and Promoter Group)

100.00%

100.00%

100.00%

- Percentage of Shares (as a % of total share capital of the Company )

71.90%

71.90%

71.90%

 

B

Particulars

Quarter ended

 

 

31.12.2012

 

INVESTOR COMPLAINTS (In Nos.)

 

 

Pending at the beginning of the Quarter

Nil

 

Received during the Quarter

01

 

Disposed during the Quarter

01

 

Remaining Unresolved at the end of the Quarter

Nil

 

Notes:

 

1.       The Company has only one business segment namely "Iron & Steel".

 

2.       There were no exceptional /extraordinary items during the respective periods reported above.

 

3.       EPS for the quarter is not annualised.

 

4.       The Statutory Auditors in their review report have expressed their inability to ascertain the impact of tax treatment arising on the income from commodity transactions in an earlier year, which was in the nature of speculative income, on the statement of unaudited financial results. The management is of the opinion that this is normal business income and does not foresee any impact of the same on the financial results of the Company.

 

5.       The above unaudited financial results were reviewed by the Audit Committee and approved by the Board of directors at their respective meetings held on February 7, 2013 and have been subjected to limited review by the statutory auditors.

 

6.       Previous period figures have been regrouped/rearranged wherever considered necessary.

 

FIXED ASSETS:

 

  • Land
  • Factory Buildings
  • Non Factory Buildings
  • Plant and Machinery
  • Vehicles
  • Furniture and Fixtures

 

 

WEBSITES DETAILS:

 

PRESS RELEASE:

 

TIMES OF INDIA AWARD FOR INNOVATIVE TALENT MANAGEMENT AND SUCCESSION PLANNING FOR MSP STEEL AND POWER LIMITED

OCTOBER 13,2012

 

We are glad to inform you that our company MSP Steel and Power Limited had won the Times of India Award for Innovative Talent Management and Succession Planning for the year 2012. The event was organized at HYATT Regency, Kolkata. We take the opportunity to thank the HR Team and all MSP employees for this great achievement. Let us put together all our effort to achieve the vision of our company. We are enclosing here with certificate for HR Excellence Award for your ready reference.

 

VISIT OF MRS NISHA AGRAWAL AT MSP PUBLIC SCHOOL

FEBRUARY 10,2012

 

In the Red Letter Day for MSP Public School at Junadih, We have the privilege to welcome the First Lady, Mrs Nisha Agrawal, wife of Mr. Suresh Agrawal (MD), on her maiden visit at the MSP school. A short welcome ceremony was organized by the students of the school which started with welcome song, presentation of bouquet by most studious student of class III, Ms Pooja Patel, introduction of all teachers and briefing by Mr D. J. Basu. Madam was joined by MD Sir and President-Works, Mr B K Singh along with other Officials of MSP in their visit to the construction site of the School building.

 

REPORT ON MSPL REGARDING WATER CONSUMTION

FEBRUARY 9,2012

 

During the past one or two decades, industries in and around the township area mushroomed like anything who are inadequately and excessively exploiting the ground and surface water that too without requisite permission from the government. The only two industries who have the mandatory permission of using ground or surface water are MSP Steel and Power Limited, Jamgaon and Jindal Industries and Power Limited, Patrapali.

 

REPUBLIC DAY CELEBRATION AT MSP UNIT, RAIGARH

JANUARY 29,2012

 

63rd Republic Day function was celebrated on January26, 2012 with great zeal and enthusiasm. Mr Suresh Agrawal (MD) on his visit to the Unit has been kind enough to offer himself to attend the program and hoist the National Flag. He even handed over the prizes to the winners and runner-up team of the Inter-Department Volleyball Tournament which was held recently in the Plant. The first three position holders of the Internal Trainers were also rewarded by him. He also rewarded few Security personnel for their contribution in the work.

 

 

 

 

 

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 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.54.33

UK Pound

1

Rs.83.17

Euro

1

Rs.71.05

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

BSN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

48

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.