MIRA
INFORM REPORT
|
Report Date : |
27.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ELECTRO STEEL CASTINGS LIMITED |
|
|
|
|
Registered
Office : |
Rathod Colony, Rajgangpur, Sundergarh-770017, Orissa |
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|
Country : |
India |
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|
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Financials (as
on) : |
31.03.2012 |
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|
Date of
Incorporation : |
26.11.1955 |
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Com. Reg. No.: |
15-000310 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.326.753
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27310OR1955PLC000310 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALE01429B / CALE01711D |
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|
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PAN No.: [Permanent Account No.] |
AAACE4975B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Ductile Iron Pipes, Fittings and Cast Iron Pipes. |
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|
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 68100000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having a good
track record. The financial position of the company seems to be strong.
Liquidity position of the company is good. There appears slight fall in the profitability during 2012. However,
performance capacity of the company seems to be high. Subject gets good
support from its group companies. Trade relations are reported to be trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
AA [Long Term Bank Facilities] |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry very low credit risk. |
|
Date |
May 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 : |
Rathod Colony, Rajgangpur, Sundergarh-770017, Orissa, India |
|
Tel. No.: |
91-6622-207008/ 9/ 287047 |
|
Fax No.: |
91-6622-481803 |
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E-Mail : |
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|
Website : |
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Corporate Office 1: |
148/150, Old No. 98/99, Luz Church Road, Chennai – 600004, Tamilnadu, India |
|
Tel No. : |
91-44-24995257/ 58 (10 Lines) |
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Fax No. : |
91-44-24995229 |
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|
Corporate Office 2: |
G.K. Tower, 19 Camac Street, Kolkata-700017, West Bengal, India. |
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Head Office : |
19, Camac Street, Kolkata – 700017, West Bengal, India |
|
Tel No.: |
91-33-22839990 |
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Fax No.: |
91-33-22894336/
4337/ 4338/ 4339/ 4340 |
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E-Mail : |
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Factory 1 : |
30, B. T. Road, Sukchar, Khardah, 24-Parganas (North) – 743179, West Bengal, India |
|
Tel. No.: |
91-33-25531892/ 2987/ 2991 |
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Fax No.: |
91-33-25531893/ 0588 |
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E-Mail : |
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Factory 2 : |
Gummodipoondi Taluka, P. O. Elavur, MGR, District Chennai
– 601211, Tamilnadu, India |
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Factory 3 : |
Haldia, Kasberia,
P.O. Khanjan Chawk, Haldia, Midnapore (East), West |
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Factory 4 : |
Parbatpur, |
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Branch Office : |
Located At: ·
Ahmedabad ·
·
Mumbai
|
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. P. K. Khaitan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Umang Kejriwal |
|
Designation : |
Managing Director |
|
Qualification : |
B.Com. (Hons.) |
|
Date of Appointment : |
16.02.1975 |
|
Previous Employment : |
Executive Director – Electrocast Sales India Limited |
|
|
|
|
Name: |
Mr. Mayank Kejriwal |
|
Designation : |
Joint Managing Director |
|
Qualification : |
B.Com. (Hons.) |
|
Date of Appointment : |
25.01.1977 |
|
Previous Employment : |
Executive Director – Electrocast Sales India Limited |
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|
|
|
Name : |
Mr. B. Khaitan |
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Designation : |
Director |
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|
Name : |
Mr. Naresh Chnadra |
|
Designation : |
Director |
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|
Name : |
Mr. Jamshed J. Irani |
|
Designation : |
Director |
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|
Name : |
Mr. Uddhav Kejriwal |
|
Designation : |
Whole Time Director |
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|
Name : |
Mr. M.B.N. Rao |
|
Designation : |
Director |
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|
Name : |
Mr. S.Y. Rajagopalan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. V.M. Ralli |
|
Designation : |
Director |
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|
Name : |
Mr. M.K. Jalan |
|
Designation : |
Director |
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|
Name : |
Mr. R.S. Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Jyoti Jain |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category
of Shareholder |
Total
No. of Shares |
Percentage
of Shareholding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
40880003 |
12.62 |
|
|
118076252 |
36.45 |
|
|
158956255 |
49.06 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
158956255 |
49.06 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
5894166 |
1.82 |
|
|
1073283 |
0.33 |
|
|
25353164 |
7.83 |
|
|
13393259 |
4.13 |
|
|
45713872 |
14.11 |
|
|
|
|
|
|
23739950 |
7.33 |
|
|
|
|
|
|
59309675 |
18.31 |
|
|
6256428 |
1.93 |
|
|
30006525 |
9.26 |
|
|
1692177 |
0.52 |
|
|
27480414 |
8.48 |
|
|
592448 |
0.18 |
|
|
241486 |
0.07 |
|
|
119312578 |
36.83 |
|
Total Public
shareholding (B) |
165026450 |
50.94 |
|
Total (A)+(B) |
323982705 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
2770000 |
0.00 |
|
|
2770000 |
0.00 |
|
Total
(A)+(B)+(C) |
326752705 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Ductile Iron Pipes, Fittings and Cast Iron Pipes. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Bank of Baroda · HSBC Limited · State Bank of India · Punjab National Bank · Standard Chartered Bank · BNP Paribas · ICICI Bank Limited · IDBI Bank Limited · HDFC Bank Limited · Hong Kong and Shanghai Banking Corporation Limited · Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
14, |
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Tel. No.: |
91-33-22481507 / 7102 / 6962 / 1111 |
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Mobile No.: |
91-33-22486960 / 4572 |
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E-Mail : |
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Solicitors : |
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Name : |
Khaitan and Company |
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Joint Venture : |
·
North Dhadhu Mining Company Private Limited ·
Domco Private Limited |
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Associates : |
· Electrosteel Europe SA · Electrosteel Algeria SPA · Electrosteel Castings (UK) Limited · Electrosteel USA LLC · WaterFab, LLC (100% subsidiary of Electrosteel USA, LLC) · Mahadev Vyapaar Private Limited · Electrosteel Trading S.A, Spain · Singardo International Pte Limited |
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|
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Subsidiaries : |
· Lanco Industries Limited · Electrosteel Steel Limited [Formerly Electrosteel Integrated Limited] · Electrosteel Thermal Power Limited |
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|
|
|
Enterprise where KMP/Relatives of KMP have significant influence or
control : |
·
Global Exports Limited ·
G. K. and Sons Private Limited ·
Badrinath Industries Limited ·
Akshay Ispat and Ferro Alloys Private Limited ·
Electrocast Sales India Limited ·
Tulsi Highrise Private Limited ·
Wilcox Merchants Private Limited ·
Murari Investment and Trading Company Limited · Electrosteel Thermal Coal Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Re.1 /- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
326752705 |
Equity Shares |
Re.1 /- each |
Rs.326.753
Millions |
|
|
|
|
|
NOTE:
1. The company has only one class of shares referred to as equity shares
having a par value of Re.1/- each holder of equity shares is entitled to one
vote per share. In the event of liquidation, the equity shareholders are eligible
to receive the remaining assets of the company, after distribution of all
preferential amount, in proportion of their shareholding.
2. The dividend proposed by the board of directors is subject to the
approval of the shareholders in the ensuing annual general meeting.
3. During the year ended 31 March 2012, the amount of per share dividend
recognized as distribution to equity shareholders was Re.0.50
4. Reconciliation of the number of shares outstanding.
|
Particular |
31.03.2012 |
|
Number of shares at the beginning |
326752705 |
|
Number of shares at the end |
326752705 |
Shareholders holding more than 5% shares
|
Name of Shareholders |
31.03.2012 |
|
Murari Investment and Trading Company |
30053080 |
|
G.K. and Sons Private Limited |
23763602 |
|
G.K. Investment Limited |
21739560 |
|
Uttam Commercial Company Limited |
18590570 |
|
Electrocast Sales India Limited |
16931750 |
|
Stemcor Metals Limited |
19243836 |
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 |
326.753 |
326.753 |
326.753 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
16703.491 |
16521.531 |
15510.986 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
17030.244 |
16848.284 |
15837.739 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12848.411 |
11579.741 |
11297.379 |
|
|
2] Unsecured Loans |
2474.397 |
1398.700 |
1121.923 |
|
|
TOTAL BORROWING |
15322.808 |
12978.441 |
12419.302 |
|
|
DEFERRED TAX LIABILITIES |
208.061 |
440.868 |
469.712 |
|
|
|
|
|
|
|
|
TOTAL |
32561.113 |
30267.593 |
28726.753 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5554.765 |
5380.479 |
5246.254 |
|
|
Capital work-in-progress |
6558.132 |
4319.522 |
3909.603 |
|
|
|
|
|
|
|
|
INVESTMENT |
11187.212 |
13998.767 |
10239.603 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5529.432
|
5197.958 |
3567.313
|
|
|
Sundry Debtors |
6192.021
|
4874.150 |
3741.081
|
|
|
Cash & Bank Balances |
1564.692
|
1896.696 |
2809.253
|
|
|
Other Current Assets |
1006.111
|
526.367 |
0.000
|
|
|
Loans & Advances |
3121.133
|
1731.525 |
2210.088
|
|
Total
Current Assets |
17413.389
|
14226.696 |
12327.735 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3393.304
|
3623.283 |
1462.463
|
|
|
Other Current Liabilities |
3517.427
|
2560.236 |
367.184
|
|
|
Provisions |
1241.654
|
1474.352 |
1166.795
|
|
Total
Current Liabilities |
8152.385
|
7657.871 |
2996.442
|
|
|
Net Current Assets |
9261.004
|
6568.825 |
9331.293
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
32561.113 |
30267.593 |
28726.753 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19166.615 |
17095.332 |
14287.747 |
|
|
|
Other Income |
707.724 |
1017.479 |
1277.469 |
|
|
|
TOTAL (A) |
19874.339 |
18112.811 |
15565.216 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
9541.981 |
7649.870 |
|
|
|
|
Purchases of Stock in Trade |
973.367 |
1096.595 |
|
|
|
|
Employee Benefits Expenses |
1230.923 |
1228.737 |
11499.069 |
|
|
|
Other Expenses |
6399.992 |
4860.855 |
|
|
|
|
Changes in Inventories of Finished Goods, Work in Progress and Stock
in Trade |
(46.862) |
(202.273) |
|
|
|
|
TOTAL (B) |
18099.401 |
14633.784 |
11499.069 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1774.938 |
3479.027 |
4066.147 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1006.479 |
786.027 |
463.974 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
768.459 |
2693.000 |
3602.173 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
542.603 |
544.126 |
523.006 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
225.856 |
2148.874 |
3079.167 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(197.972) |
602.500 |
1016.278 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
423.828 |
1546.374 |
2062.889 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
861.900 |
1010.200 |
896.465 |
|
|
|
TRANSFER
FROM DEBENTURE REDEMPTION RESERVE |
250.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
DIVIDEND
PAID FOR PREVIOUS YEAR |
0.000 |
0.000 |
17.500 |
|
|
|
TAX
ON DIVIDEND PAID FOR PREVIOUS YEAR |
0.000 |
0.000 |
2.975 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.000 |
1000.000 |
1182.428 |
|
|
|
Transfer to Debenture Redemption Reserves |
160.000 |
220.000 |
270.000 |
|
|
|
Proposed Divided Including Tax Thereon |
189.900 |
474.700 |
408.441 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
67.837 |
|
|
BALANCE CARRIED
TO THE B/S |
1135.828 |
861.874 |
1010.173 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7523.989 |
5724.097 |
4952.472 |
|
|
|
Interest |
0.000 |
113.690 |
5.384 |
|
|
|
Other Earnings |
0.000 |
0.000 |
45.990 |
|
|
TOTAL EARNINGS |
7523.989 |
5837.787 |
5003.846 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
4400.684 |
4338.879 |
2034.267 |
|
|
|
Stores & Spares |
294.258 |
230.454 |
337.871 |
|
|
|
Capital Goods |
403.352 |
169.451 |
477.382 |
|
|
TOTAL IMPORTS |
5098.294 |
4738.784 |
2849.520 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.30 |
4.73 |
6.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4467.800 |
4939.000 |
4795.900 |
|
Total Expenditure |
4355.700 |
4124.500 |
4327.900 |
|
PBIDT (Excl OI) |
112.100 |
814.600 |
468.000 |
|
Other Income |
88.400 |
20.200 |
376.300 |
|
Operating Profit |
200.400 |
834.700 |
844.400 |
|
Interest |
330.800 |
258.500 |
268.900 |
|
PBDT |
(130.300) |
576.200 |
575.500 |
|
Depreciation |
135.700 |
135.000 |
132.900 |
|
Profit Before Tax |
(266.100) |
441.100 |
442.600 |
|
Tax |
-92.800 |
70.8000 |
111.700 |
|
Profit After Tax |
(173.300) |
370.400 |
330.900 |
|
Net Profit |
(173.300) |
370.400 |
330.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.13
|
8.54 |
13.25
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.17
|
12.57 |
21.55
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.98
|
10.95 |
17.52
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.13 |
0.19
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.90
|
0.77 |
0.78
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.14
|
1.86 |
4.11
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
UNSECURED LOAN
|
Particulars |
As
on 31.03.2012 [Rs.
in Millions] |
As
on 31.03.2011 [Rs.
in Millions] |
|
Working Capital Facilities From Banks |
|
|
|
Indian Currency |
0.000 |
1377.808 |
|
Foreign Currency |
1724.397 |
20.892 |
|
Commercial Papers |
750.000 |
0.000 |
|
TOTAL
|
2474.397 |
1398.700 |
OPERATIONS:
F.Y. 2011-12
was a challenging year with a moderate growth of business due to turbulent
economic environment. There was a slowdown in global economy activities across
major part of the world and India was also affected to a larger extent coupled
with domestic factors such as inflation, decelerating growth and widening
current account deficit. Despite these constraints and the challenging
environment, the Company performed reasonably well and sustained its production
and sales in quantitative terms. The Company's Revenue from operation has
increased from Rs. 17095.300 Millions in 2010-11 to Rs. 19166.600 Millions in
2011-12 representing an increase of 12.12 %. Export sales showed an increase
from Rs. 5663.300 Millions to Rs. 8226.900 Millions, an increase of 45.27 % due
to higher proportion of sales in the export market. The Company's profit (PAT)
for the year was Rs. 423.800 Millions as against Rs. 1546.400 Millions. The
decline was due to steep rise in raw materials prices mainly of iron ore and
coal and sharp depreciation of INR against dollar.
During the
year D.I. pipes production was 2,70,168 MT as against 2,70,327 MT in the
previous year, showing marginally decreases. This year more product varieties
have been added in the said production to satisfy their customers. Production
of D.I. fittings was higher by 23.34% over the previous year (from 5,038 MT to
6,214MT).
The
production of C.I. pipes at Elavur was 19,177 MT as against 30,199 MT in the
previous year due to the customer's preference for DI Pipes over CI Pipes.
FUTURE
PROSPECTS:
Government's
thrust on the infrastructure facilities is already showing continuous
increasing demand for D. I. pipes in the domestic market. However, additional capacity
installed by new entrants and peer group companies may intensify the
competition in the domestic market. There is constant endeavor by the Company
for increasing the share in existing foreign markets and enter new countries.
The Company has opened a new office in Italy with two stockyards. There are
plans to set up an office and stockyard in Germany this fiscal. A branch office
is also being opened shortly in Morocco to service the West African market
where they have already started getting projects. Approvals have been obtained
in Brazil and other South American markets and initial businesses obtained. In
short, they see an exciting year ahead.
MANAGEMENT DISCUSSION
AND ANALYSIS:
OVERVIEW
The
Company is engaged in the business of manufacturing Ductile Iron Pipes,
Fittings and Cast Iron Pipes. Additionally, the Company also undertakes turnkey
solutions for water transportation and sewerage management, which includes
manufacturing DI Pipes, supplying and laying various types of pipes, operating the
system and transferring to the owners.
INDUSTRY
OUTLOOK
To
transport sufficient quantities of water from different sources to treatment
plants with minimal loss and then transport it to the end users, a strong
reliable transport medium is required. Earlier, the only major means available
for the use in water transportation application (supply and sanitation) were
the CI pipes. The DI pipes were first introduced in 1955, which has since been
recognized as the industry standard for modern water and wastewater systems. DI
pipes are preferred over CI pipes on account of being lighter, stronger, more
durable and cost efficient these being corrosion resistant, ductile, etc. The
DI pipes also have higher water carrying capacity. The DI pipes can also be
laid out much faster and are virtually maintenance free. In addition, DI pipes
require less support and provide greater flow area as compared to pipes made
from other materials.
Ductile
Iron pipes have a current demand of 800,000 tonnes p.a. in India out of which
only 500,000 tonnes p.a. is produced locally. Most of the pipes are consumed
primarily by State and the Central government projects for distributing
drinking water.
India,
with approximately 16% of the world's population, is estimated to have access
to only 4% of the world's water resources. Government of India has in recent
years taken the drinking water supply as one of the main thrust area. The
involvement of international and multilateral development finance institutions
in funding and developing a comprehensive water transportation infrastructure
in India, together with the successful implementation of water storage and
distribution projects has resulted in the development of a comprehensive water
resources management policy and the implementation of other related projects.
DEMAND
DRIVERS FOR DI PIPES:
THE FOLLOWING FACTORS WOULD DRIVE THE
DEMAND FOR DI PIPES:
1.
Thrust of the government to provide drinking water and
sanitation to 100% of the population and make funds available to achieve it.
2.
The need to conserve water and reduce leakage. The need to
focus on life cycle cost rather than initial cost; and to consider
inconvenience to public in replacement of pipes.
3.
The over reliance on ground water for rural water supply has
resulted in twin problem of sustainability and water quality and suggested a
shift to surface water source for tackling this issue. This will result in
substantial increase in requirement of pipes.
4.
Expectations and assertions from people all over for a strong
water supply and good drainage system.
2011-12
VS.2010-11:
F.Y.
2011-12 was a challenging year with a moderate growth of business due to
turbulent economic environment. There was a slowdown in global economy
activities across major part of the world and India was also affected to a
larger extent coupled with domestic factors such as inflation, decelerating
growth and widening current account deficit. Despite these constraints and the
challenging environment, the Company performed reasonably well and sustained
its production and sales in quantitative terms. The Company's Revenue from
operation has increased from Rs. 17095.300 Millions in 2010-11 to Rs. 19166.600
Millions in 2011-12 representing an increase of 12.12 %. Export sales showed an
increase from Rs. 5663.300 Millions to Rs. 8226.900 Millions, an increase of
45.27 % due to higher proportion of sales in the export market. The Company's
profit (PAT) for the year was Rs. 423.800 Millions as against Rs. 1546.400
Millions. The decline was due to steep rise in raw materials prices mainly of
iron ore and coal and sharp depreciation of INR against dollar.
DUCTILE
IRON PIPES
The
production of DI pipes during the year 2,70,168 MT against last year 2,70,327
MT.
|
Year |
DI Pipe Production |
|
2009-10 |
235463 MT |
|
2010-11 |
270327 MT |
|
2011-12 |
270168 MT |
More
varieties and value added products were produced during the year to meet higher
exports and inspite of that production was sustained mainly due to continual improvement
in productivity and debottlenecking in the manufacturing facilities.
CAST IRON
PIPES
Production
was lower at 19,177 MT against 30,199 MT in the previous year. This is due to
reduction in demand as an effect of preference of DI Pipes over Cast iron
pipes.
DI
FITTINGS AND ACCESSORIES
Production
of DI Fittings increased during the year from 5,038 MT last year to 6,214 MT.
Company improved the performance of the division by targeting more value added
products and higher exports to niche markets.
EXPORT
There is
constant endeavor by the Company for increasing the share in existing foreign
markets and enter new countries. The Company has opened a new office in Italy
with two stockyards. There are plans to set up an office and stockyard in Germany
this fiscal. A branch office is also being opened shortly in Morocco to service
the West African market where they have already started getting projects.
Approvals have been obtained in Brazil and other South American markets and
initial businesses obtained. In short, they see an exciting year ahead.
TURNKEY
PROJECTS
The
Company also provides turnkey solutions to its customers in the areas of water
infrastructure and sewerage management. It undertakes the activities of
engineering, procurement, construction operations and management with respect
to water distribution and sewerage systems, across the country. This turnkey
activity also involves supply and laying of substantial quantities of the
Company's pipes and fittings and thus adds to business opportunities for the
Company.
OUTLOOK
Being the
largest and low cost producer of quality Ductile Pipes in India, coupled with
cost control measures, rising demand and focus on exports, the Company is very
optimistic of its bright future.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31,
2012
(Rs. in Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Month Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
4726.830 |
4790.608 |
13799.197 |
|
|
Other Operating
Income |
69.068 |
148.411 |
403.479 |
|
|
Total Income From Operations |
4795.898 |
4939.019 |
14202.676 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
2313.899 |
2479.110 |
7445.865 |
|
|
Purchase
of stock in trade |
129.234 |
151.272 |
403.875 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
104.751 |
(80.711) |
(428.240) |
|
|
Employee
benefits expenses |
352.648 |
351.486 |
1009.696 |
|
|
Depreciation
and amortization expenses |
132.930 |
135.034 |
403.707 |
|
|
Power
and fuel |
378.909 |
380.175 |
1111.003 |
|
|
Stores
and spares |
351.989 |
300.016 |
947.245 |
|
|
Job
charges |
25.245 |
17.523 |
102.943 |
|
|
Other
expenditure |
671.169 |
525.599 |
2215.627 |
|
|
Total Expenses |
4460.774 |
4259.504 |
13211.721 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
335.124 |
679.515 |
990.955 |
|
|
|
|
|
|
|
4. |
Other
Income |
376.325 |
20.167 |
484.840 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
711.449 |
699.682 |
1475.795 |
|
|
|
|
|
|
|
6. |
Interest |
268.886 |
258.544 |
858.181 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
442.563 |
441.138 |
617.614 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
442.563 |
441.138 |
617.614 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
111.699 |
70.778 |
89.699 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
330.864 |
370.360 |
527.915 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
330.864 |
370.360 |
517.915 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Re.1/- Each) |
326.753 |
326.753 |
326.753 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
1.01 |
1.13 |
1.62 |
|
|
b)
Basic and diluted EPS after extraordinary items |
1.01 |
1.13 |
1.62 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-
Number of Shares |
165219284 |
165319284 |
165219284 |
|
|
-
Percentage of Shareholding |
50.56 % |
50.59 % |
50.56 % |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
158763421 |
158663421 |
158763421 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 % |
100.00 % |
100.00 % |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
48.59 % |
48.56 % |
48.59 % |
|
Particulars |
3 Months Ended 31.12.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
1. The above financial results , as reviewed by audit committee, were approved and taken on record by the Board of Directors in their meeting held on January 14, 2013.The above results have been subjected to Limited Review by the Statutory Auditors.
2. The Company operates mainly in one business segment viz. Pipes and all other activities revolve around the main business.
3. As on December 31, 2012, the Company had inter-alia outstanding forward exchange contracts, (other than those covered under AS-11 on "The Effects of Changes in Foreign Exchange Rates") and other derivative contracts. The Mark - to -Market (MTM) losses on such forward contract as on December 31, 2012 stood at Rs. 365.028 millions, after giving effect to resultant excess amount of Rs. 318.824 Millions during this quarter, continued to remain fully provided for in the accounts.
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
Buildings
·
Railway Siding
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
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 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.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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.