MIRA INFORM REPORT
|
Report Date : |
14.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SURANA INDUSTRIES LIMITED |
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Registered
Office : |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
25.03.1991 |
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Com. Reg. No.: |
18-20533 |
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Capital
Investment / Paid-up Capital : |
Rs. 445.191
Millions |
|
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|
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CIN No.: [Company Identification
No.] |
L27104TN1991PLC020533 |
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|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing of Integrated Steel. |
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No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (35) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 43000000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having a moderate track record. The company requires large working capital. The market price of the company’s
share is continuously falling. The company is exposed to price volatility
risk of finished product and raw materials. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the outbreak
of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood opportunities
for the millions living in poverty as also the large contingent of young people
joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: BB- |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
April 2013. |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
April 2013. |
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 PARTED BY
|
Name : |
Mr. Pratap |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-44-28525127 |
|
Date : |
14.08.2013 |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-44-28525127/ 596/ 28523598/ 28526336/ 28525596 |
|
Fax No.: |
91-44-28521143/ 28520587 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory 1 : |
F-67, 68 and 69, SIPCOT Industrial Complex, Gummidipoondi
-601201,Tiruvallur, Tamilnadu |
|
Tel. No.: |
91-4119-222880/ 22881 |
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Mobile No.: |
91-9444361868 |
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Factory 2 : |
Plot No. 231-234, Raichur Growth Centre, KIADB, Raichur District,
Raichur - 584102, Karnataka |
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Factory 3 : |
No. 30, G.N.T. Road, Madhavaram, Chennai - 600110, India |
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Factory 4 : |
No. 144, Kondakarai (NTPC) Road, Ponneri Taluk, Chennai - 600120,
India |
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Factory 5 : |
“Anugraha” No.6, 2nd Main Road, Behind Govt. School, Byalarayanapura, Mysore Road,
Bangalore - 560026, India |
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Mumbai Branch: |
410A, Panchratan, Opera House, Mumbai – 400004 |
|
Tel. No.: |
91-22-23666379 |
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Corporate Office: |
29, White Road, 2nd Floor, Royapettah, Chennai – 600014, India |
|
Tel. No.: |
91-44-28525127 (3 line)/ 28525596 |
|
Fax No.: |
91-44-33901114 |
|
Email-id: |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Dineshchand Surana |
|
Designation : |
Managing Director |
|
Designation : |
Managing Director |
|
Date of Birth/ Age : |
31.12.1965 |
|
Qualification : |
B.Sc., D.Pharm. |
|
Other Directorship : |
· Sfrana Power Limited · Surana Green Power Limited · Surana Green Energy Limited · Uday Energy Private Limited · 6th Sense Infrastmcturee Private Limited · Surana Mines & Mineral Limited · Surana Holdings Pte Limrited |
|
|
|
|
Name : |
Mr. V. M Swami |
|
Designation : |
Director (Finance) |
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|
Name : |
Mr. Krishna Udupa |
|
Designation : |
Director |
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|
Name : |
Mr. V. Aranganathan |
|
Designation : |
Director |
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|
Name : |
Dr. B. Samal |
|
Designation : |
Director |
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|
Name : |
Mr. S.K. Gupta |
|
Designation : |
Director |
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|
Name : |
Mr. K.N. Prithivraj |
|
Designation : |
Director |
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|
Name : |
Mr. B.S. Patil |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. G. A. Tadas |
|
Designation : |
Nominee Director (IDBI) |
KEY EXECUTIVES
|
Name : |
Mr. G. R. Surana |
|
Designation : |
Chairaman |
|
|
|
|
Name : |
Mr. R.K. Chouhan |
|
Designation : |
Chief Executive Officer |
|
Designation : |
Chairman |
|
Date of Birth/ Age : |
62 Years |
|
Qualification : |
B. E. (Mech) |
|
Experience : |
38 Years |
|
|
|
|
Name : |
Mr. Vijay Chordia |
|
Designation : |
Asst. Vice President |
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|
Name : |
Mr. V. Raman |
|
Designation : |
General Manager - Finance |
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|
Name : |
Mr. S.S. Deshpande |
|
Designation : |
General Manager - Accounts & Taxation & Legal |
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Name : |
Mr. Ajay Kumar Shukla |
|
Designation : |
Jt. General Manager - Projects |
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|
Name : |
Mr. V. K. Venkat Rao |
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Designation : |
Deputy General Manger - Exim & Admin |
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Name : |
Mr. B. Sudharsan |
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Designation : |
Deputy General Manger – System |
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|
Name : |
Mr. V. Suresh |
|
Designation : |
Deputy General Manger Deputy - M.D. Secretariat |
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|
Name : |
Mr. Ajay Chaturvedi |
|
Designation : |
General Manger Deputy General - Purchase |
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|
Name : |
Mr. V.J. Arunkumar |
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Designation : |
Manger - Marketing |
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|
Name : |
Mr. Venkatraman |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
20307502 |
45.62 |
|
|
20307502 |
45.62 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
20307502 |
45.62 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
688665 |
1.55 |
|
|
688665 |
1.55 |
|
|
|
|
|
|
9652281 |
21.68 |
|
|
|
|
|
|
516159 |
1.16 |
|
|
328602 |
0.74 |
|
|
13025858 |
29.26 |
|
|
179 |
0.00 |
|
|
11069067 |
24.86 |
|
|
58602 |
0.13 |
|
Non Residents Indians |
1786603 |
4.19 |
|
Directors and their Relatives and
Friends |
32507 |
0.07 |
|
|
23522900 |
52.84 |
|
Total Public shareholding (B) |
24211565 |
54.38 |
|
Total (A)+(B) |
44519067 |
100.00 |
|
(C) Shares held by Custodians and against which
Depository Receipts have been issued |
0 |
0.00 |
|
Total (A)+(B)+(C) |
44519067 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Integrated Steel. |
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Exports : |
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Products : |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C, and Credit |
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Purchasing : |
L/C, and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
||||||||||||||||||||||||||||||
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No. of Employees : |
500 (Approximately) |
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|
Bankers : |
·
Allahabad Bank, Chennai Main Branch, 41, Mount
Road Branch, Chennai -600 002 ·
Bank of ·
Bank of India, Chennai Corporate Banking Branch,
IV th Floor, Tara pore Tower, 826, Anna
Salai, Chennai - 600 002 ·
Bank of Maharashtra, 116, Sri Gujarati Mandal
Bhavan, Broadway Branch, Chennai - 600 108 ·
Canara Bank, Teynampet Branch, 574, Anna Salai,
Chennai – 600 018 ·
Central Bank of India, Corporate Finance Branch,
Addison Building, No. 803, Mount Road, Chennai -600002, India ·
IDBI Bank Limited, Chennai Main Branch, No.115,
Anna Salai, Saidapet, Chennai - 600 015 ·
Indian Overseas Bank, C and IC Branch, No. 98-A,
Dr. Radhakrishnan Salai, Chennai - 600 004. ·
Oriental Bank of Commerce, Mylapore Branch, No.
63, Dr. Radhakrishnan Salai, Chennai - 600 004 ·
Punjab National Bank, 35, Mint Street Branch, Sow
carpet, Chennai - 600 079 ·
State Bank of India, Industrial Finance Branch,
No. 155, Anna Salai, Chennai - 600 002 ·
Syndicate Bank, Corporate Finance Branch, 170,
Eldams Road, Teynampet, Chennai – 600018 ·
UCO Bank, Flagship Corporate Branch, PLA Towers,
212, Anna Salai, Chennai - 600 006 |
||||||||||||||||||||||||||||||
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Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors:
: |
|
|
|
|
|
Name : |
C.S.P Jain and Company Chartered Accountants |
|
Address : |
No.60, NSC Bose Road, Chennai - 600079, Tamilnadu, India |
|
|
|
|
Name : |
R. Subramanian and Company Chartered Accountants |
|
Address : |
No.6, Krishnaswamy Avenue, Luz, Mylapore, Chennai - 630004, Tamilnadu, India |
|
|
|
|
Cost Auditors : |
|
|
|
|
|
Name : |
Mr. R. Sivasubramanian Cost Accountant |
|
Address : |
Flat No.15, Anand Apartments, New No.11, (Old No.7) 9th Street, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600014, Tamilnadu, India |
|
|
|
|
Associates/Subsidiaries : |
· Surana Corporation Limited · Surana Power Limited · Surana Mines And Minerals Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70000000 |
Equity Shares |
Rs.10/- each |
Rs. 700.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
44519067 |
Equity Shares |
Rs.10/- each |
Rs. 445.191
Millions |
|
|
|
|
|
Note 1-A EQUITY SHARES
|
EQUITY SHARES |
31.03.2013 |
|
|
|
No. of Shares |
Rs. In Millions |
|
Outstanding at the beginning of
the year |
29,044,622 |
290.446 |
|
Issued during the year |
15,474,445 |
154.744 |
|
Bought back during the year |
-- |
-- |
|
Outstanding at the end of the year |
44,519,067 |
445.191 |
Note 1-B TOP SHAREHOLDERS
|
NAME OF
SHAREHOLDERS |
31.03.2013 |
|
|
|
No. of Shares held |
% of Holding |
|
G.R.Surana |
2,356,625 |
5.29 |
|
Shantilal Surana |
2,377,008 |
5.34 |
|
Vijayraj Surana |
2,376,743 |
5.34 |
|
Dineshchand
Surana |
2,433,164 |
5.47 |
|
Chandanbala
Surana |
2,216,978 |
4.98 |
|
Saraladevi
Surana |
2,234,978 |
5.02 |
|
Alka Surana |
2,182,578 |
4.90 |
|
Vasantha Surana |
2,176,578 |
4.89 |
|
Indiastar
(Mauritus) Limited |
9,669,067 |
21.72 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
445.191 |
290.446 |
271.500 |
|
(b) Reserves & Surplus |
10508.458 |
5716.385 |
5196.702 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.0000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
2500.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
10953.649 |
8506.831 |
5468.202 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5663.993 |
5326.998 |
7050.557 |
|
(b) Deferred tax liabilities (Net) |
758.549 |
612.950 |
500.001 |
|
(c) Other long term
liabilities |
594.483 |
594.483 |
309.897 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
7017.025 |
6534.431 |
7860.455 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
3437.152 |
3012.136 |
2496.991 |
|
(b) Trade payables |
1213.831 |
2417.149 |
1027.704 |
|
(c) Other current
liabilities |
584.428 |
451.669 |
300.916 |
|
(d) Short-term
provisions |
146.151 |
170.566 |
144.543 |
|
Total Current
Liabilities (4) |
5381.562 |
6051.520 |
3970.154 |
|
|
|
|
|
|
TOTAL |
23352.236 |
21092.782 |
17298.811 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6786.111 |
7085.955 |
6062.412 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
73.596 |
|
(iii) Capital
work-in-progress |
4511.019 |
896.360 |
816.503 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
5057.061 |
4872.280 |
4872.280 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
0.000 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
16354.191 |
12854.595 |
11824.791 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2987.744 |
2964.064 |
2107.579 |
|
(c) Trade receivables |
3113.340 |
3955.056 |
2751.862 |
|
(d) Cash and cash
equivalents |
254.836 |
175.088 |
50.216 |
|
(e) Short-term loans
and advances |
642.125 |
1143.979 |
419.820 |
|
(f) Other current
assets |
0.000 |
0.000 |
144.543 |
|
Total Current Assets |
6998.045 |
8238.187 |
5474.020 |
|
|
|
|
|
|
TOTAL |
23352.236 |
21092.782 |
17298.811 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14250.087 |
13514.246 |
12230.268 |
|
|
|
Other Income |
54.343 |
110.343 |
18.066 |
|
|
|
TOTAL (A) |
14304.430 |
13624.589 |
12248.334 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material |
11516.583 |
11298.433 |
|
|
|
|
Purchase of stock – in – trade |
802.427 |
0.000 |
|
|
|
|
Change in inventories of finished goods |
(482.335) |
(378.528) |
|
|
|
|
Employees benefits expenses |
184.883 |
182.934 |
|
|
|
|
Other Expenses |
479.100 |
727.338 |
|
|
|
|
TOTAL (B) |
12500.658 |
11830.177 |
10625.064 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1803.772 |
1794.412 |
1623.270 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1138.381 |
1019.767 |
822.049 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
665.391 |
774.645 |
801.221 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
390.310 |
327.294 |
256.668 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
275.081 |
447.351 |
544.553 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
172.592 |
119.693 |
(20.906) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
102.489 |
327.658 |
565.459 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2032.975 |
1778.590 |
1326.475 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
49.733 |
34.854 |
48.870 |
|
|
|
Corporate Dividend Tax |
8.308 |
5.653 |
7.928 |
|
|
|
General Reserve |
10.249 |
32.766 |
56.546 |
|
|
BALANCE CARRIED
TO THE B/S |
2067.174 |
2032.975 |
1778.590 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value Export |
28.365 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Import of Raw materials (CIF Value) |
0.000 |
142.502 |
96.968 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
2.44 |
11.90 |
20.83 |
|
|
|
Diluted |
2.44 |
9.31 |
17.17 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.72
|
2.40 |
4.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.93
|
3.28 |
4.45 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.00
|
2.92 |
4.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.05 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.83
|
0.98 |
1.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.36 |
1.38 |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
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 |
UNSECURED LOAN
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
a) Bonds/debentures FCCB's
due / Redemption for conversion on or before 20th June 2012. |
0.000 |
1051.620 |
|
(b) Deposits: ICD (No guarantee is given by the directors from other corporates interest free loan) |
959.765 |
899.850 |
|
Total |
959.765 |
1951.470 |
CASE DETAILS:
CHENNAI COURT CASE
STATUS INFORMATION SYSTEM
|
Case Status: |
Pending |
|
Case No.: |
66 |
|
Year: |
2013 |
|
Petitioner : |
Mycon Construction Limited |
|
Respondent : |
Surana Industries Limited |
|
Pet's Advocate : |
M/S. R. Senthil Kumar |
|
Category : |
No Category Mentioned |
|
Case Updated on : |
24.01.2013 |
FINANCIAL PERFORMANCE
The Company achieved Net sales of Rs. 14246.000 millions for the year ending on 31st March, 2013 as compared to Rs.13514.200 millions in the previous year despite a very difficult period.
Profits after taxes (PAT) amounted to Rs. 102.500 millions as compared to Rs. 327.600 millions for the previous year.
The decrease in PAT on basis in mainly on account of increase in cost of raw materials and other inputs due to inconsistency in the supply of iron ore, higher finance cost and depreciation. The sale prices of end products was also volatile. At times the billet prices increased substantially resulting in thin margins. The power situation in Tamil nadu was also very unsatisfactory resulting in lesser production. Further, the company had to make more provisions for depreciation in view of increase in fixed assets.
MANAGEMENT DISCUSSION
AND ANALYSIS
Steel Industry
Outlook:
India has emerged as the fourth largest steel producing nation in the world. India's production grew constantly in the last five years from 57.8 MT in 2008 to 63.5 MT in 2009,69 MT in 2010, 73.6 MT in 2011 and 76.7 MT in 2012 as per the data from World Steel Association (WSA). India is expected to become the second largest producer of crude steel by 2015-16. Consumption of steel follows the GDP growth of any country. As per Ministry of Steel estimates, the Iron and Steel Industry contributes around 2% of the GDP and its weight in the Index of Industrial Production is 6.2%.
The demand for steel in the country is currently growing at the rate of over 8% and it is expected that the demand would grow to over 10% in the next five years. This indicates that there is a lot of potential for increasing the steel consumption in India. In the years 2011-12 and 2012-13, the growth rate slowed to 6.2 per cent and 5.0 per centre spectively, as per the Economic survey for 2012-13. The compound annual growth rate (CAGR) for gross domestic product (GDP) at factor cost, over the decade ending 2012-13 is7.9 per cent.
The growth in India's industry is a result of domestic steel consumption, which has been driven primarily by infrastructure related investments and consumer durables. The 12th (Five Year Plan) FYP projects an investment of US$1t in infrastructure alone, which will accelerate steel consumption. As an estimate, this increase in infrastructure spends may itself lead to additional demand of approximately 40 million tonnes per annum during2012-13 to 2016-17.
Indian steel consumption growth has an elasticity of about 1.1 to growth in GDP. In other words, if the Indian economy grows at 7% per year, steel demand is likely to grow by7.7% during the same time, from the current 68 million tonnes to around 132 million tones by 2020.
In line with GDP growth, Indian steel demand has immense opportunities to grow across sectors in the mid- to long term. The rapid rise in production over the last few years has resulted in India becoming the the largest producer of sponge iron or direct-reduced iron (DRI) in the world. The country has the opportunity of becoming the second largest producer of steel by 2015-16 and per capita consumption of steel in India, which is only55kg (2011) — significantly lower than global averages — suggests a potential to close the gap in future.
THE DOMESTIC STEEL
PRODUCTION FORECAST UPTO 2014
is given below :
In India, steel demand is also expected to pick up and will grow by 5.9% in 2013 as monetary easing is expected to support investment activities. In 2014, growth in steel demand is expected to further accelerate to 7.0% thanks to the reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate.
PROJECTED
DEMAND-SUPPLY SCENARIO
The following are the
primary levers of demand growth:
Increase in Rural demand: Currently, per capita rural consumption of steel in India stands at around 13kg. This is significantly lower than urban per capita consumption. Projects like Bharat Nirman and Rajiv Gandhi Awaas Yojana have led to increased demand for construction steel like thermo-mechanically treated (TMT) bars and galvanized plain and corrugated (GP/GC) sheets, but there remains a significant opportunity to increase rural steel demand by widening the distribution network and by providing customized solutions catering to the needs of 70% of the population.
An investment worth US$132b has been planned for the 12th FYP. The Government has launched many road investment programs, namely the National Highways Development Project (NHDP) and Pradhan Mantri Gram Sadak Yojana (PMGSY), to increase the connectivity of roads to ports and plant sites.
Indian Railways has an ambitious investment plan to invest US$328b through 2020 underits 'Vision 2020' programme. The organization's plan is to invest around US$42.6b out of the total allocated budget in laying down new lines. Many of the investments will have high steel intensity.
Automobile and power sectors offer opportunity for specialized steel. As India is currently short of electricity, there are plans to exponentially increase investment in power projects, which will also drive steel demand.
The Government's plan to re-energize manufacturing will lead to accelerated demand from the capital goods sector and projects
OUTLOOK
The installed capacity for crude steel is projected to be 200 MTPA by FY 2020 as per the National Steel Policy, formulated by the Ministry of Steel.
The long-term outlook for steel demand in India is quite robust due to increasing demand from several sectors, including automotive, consumer durables, oil and gas, industrial machinery, real estate and infrastructure. Though there could be supply constraints in India in 2013, steel prices are likely to remain under pressure due to asteady stream of imports. The new capacity in India will be vertically integrated and have the ability to use fines as raw material.
SUBSIDIARIES:
Surana Power Limited
Surana Power Limited is in the process of setting up of 2 x 210 MW Thermal Power Plantat Raichur at a total cost of Rs. 29000.000 millions. SPL already has an existing 35MW Power Plant. After completion of the 420 MW Thermal Power Plant, the generation capacity of Surana Power Limited will be increased to 455 MW.
Surana Industries Limited has already infused a capital contribution of Rs. 3910.000 millions and the Foreign Private Equity Investors are expected to bring in additional equity very shortly.
The funding requirement for the 420 MW Power plant was earlier estimated at Rs. 24000.000 millions. This has now been revised to Rs. 29000.000 millions. The revision in project cost is on account of Interest during Construction for period commencing from Jan 2013. The revised project cost is proposed to tied up by equity contribution of Rs. 7250.000 millions and debt funding of Rs. 21750.000 millions. Surana Industries Limited has already infused Rs. 3910.000 millions asequity. The Company has already spent around Rs. 15000.000 millions as on 31st March 2013. This has been met out of the equity contribution of around Rs. 4000.000 millions and term loan of Rs. 11000.000 millions. The project is now expected to go on stream by January 2015.
Surana Mines and Minerals Limited Singapore:
Surana Mines and Minerals Limited, SMML is the wholly owned subsidiary of Surana Industries Limited at Singapore.
The Company is expected to commence trading activities in coal as well as scraps in the global market for supply to steel and power plants in the group. SMML has a step down subsidiary PT Borneo Mines & Minerals Limited which has acquired mining rights in the Sassanga coal mines in Indonesia. The 2640 acres of the Sassanga coal mines have proven reserves of 60-70 million tonnes of coal. The first consignment of coal are expected to commence in FY 2013.
Surana Green Power Limited:
SGPL, a 100% subsidiary of Surana Industries Limited, is in the business of Power Generation. SGPL has currently 7 windmills.
SGPL has step down subsidiary (wholly owned subsidiary) Surana Green Energy Limited, an SPV through which the Company intends to avail the Group Captive Scheme (GCS),whereby the SGEL shall be able to sell electricity to other Captive users.
SGPL has also been registered under the UNFCCC (United Naitons Framework Convention on Climate Change) Clean Development Mechanism Scheme(CDM). The project is eligible for Carbon Credits which are sold in the international markets. This has provided additional revenue to SGPL.
The Company has plans to setup a 101 MW windmill project and also has plans to enter the Solar Energy space. However, these are yet to take off.
CONTINGENT LIABILITIES AND COMMITMENTS
|
PARTICULARS |
As on 31.03.2013 |
|
(i) Contingent
Liabilities |
|
|
(a) Claims against the (company not acknowledged as debt |
|
|
1) Disputed Excise Duty Liability |
1933.87* |
|
* Disputed Central Excise Duty liability includes a demand of Rs.117.600 millions raised by the Department of Central Excise reversing the cenvat credit taken on steel and cements used for factory shed and fabrication of equipments. The Management has preferred an appeal before CESTAT, Bengalore and is expecting favourable order. |
|
|
2) Dispnted Income Tax: Liability The Hon'ble ITAT has set aside the order of the Assessing) Officer, The AO is yet to pavs the Revision Order |
66.50 |
|
3) Customs Duty on import of Scrap The case is pending before the Hon'be Supreme Court |
138.29 |
|
4) TNVAT The demand arose due to the levy of tax @ 4% on Zero rated sales to S7Z within TN and levy of VAT @ 4% on stock transfers from Gummidipondi to Madhavaram. The case is under appeal. |
974.51 |
|
(b) Guarantees Guarantee is Given to Gescom Rs. 20.250 millions. Corporate guarantee to SBI for loan given to SGPL Rs. 241.700 millions. Corporate guarantee to IFCI for loan given to SGEL Rs. 125.000 millions. |
3,869.50 |
|
(c) Other" money for" which the company is contingently liable |
|
|
1) Customs Duty on Import 2) Civil Cases |
100.00 103.00 |
|
(ii) Commitments |
|
|
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for |
37.56 |
|
(b) Other Commitments |
|
|
Export Obligation ** The Customs duty is payable if export obligation is not completed en or before 2016 mainly on account of duty saved on import of Capital Machineries for the Integrated Steel Plant, Raichur. |
1989.69** |
|
TOTAL |
9,213.22 |
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10429770 |
27/05/2013 |
100,000,000.00 |
PUNJAB NATIONAL BANK |
35, MINT STREET. SOWCARPET, CHENNAI, TAMILNADU - 600079, INDIA |
B76599737 |
|
2 |
10421233 |
30/03/2013 |
1,240,000,000.00 |
PUNJAB NATIONAL BANK |
35,MINT STREET, SOWCARPET, CHENNAI, TAMILNADU - 600079, INDIA |
B73616450 |
|
3 |
10423244 |
30/03/2013 |
1,900,000,000.00 |
PUNJAB NATIONAL BANK |
35, MINT STREET, SOWCARPET, CHENNAI, TAMILNADU - 600079, INDIA |
B74234154 |
|
4 |
10421227 |
28/03/2013 |
560,000,000.00 |
CENTRAL BANK OF INDIA. |
POST BOX NO.2719, ADDISION BUILDING ,803, ANNA SALAI, CHENNAI,
TAMILNADU - 600002, INDIA |
B73615528 |
|
5 |
10423272 |
21/03/2013 |
373,500,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI, TAMILNADU -
600002, INDIA |
B74243296 |
|
6 |
10422143 |
07/03/2013 |
130,000,000.00 |
CANARA BANK |
520, ANNA SALAI, TEYNAMPET, CHENNAI, TAMILNADU |
B73866642 |
|
7 |
10405777 |
31/12/2012 |
20,000,000.00 |
CANARA BANK |
520, ANNA SALAI, TEYNAMPET, CHENNAI, TAMILNADU - |
B68848787 |
|
8 |
10395450 |
31/12/2012 |
205,000,000.00 |
BANK OF BARODA |
NO.21, GOPALAKRISHNAN STREET, T. NAGAR,, CHENNAI |
B65309841 |
|
9 |
10395611 |
29/12/2012 |
980,000,000.00 |
IDBI BANK LIMITED |
NO.115, ANNA SALAI, SAIDAPET, CHENNAI, TAMILNADU - 600015, INDIA |
B65366692 |
|
10 |
10396821 |
16/11/2012 |
50,000,000.00 |
CENTRAL BANK OF INDIA |
POST BOX NO.2719, ADDISON BUILDINGS, 803, ANNA SALAI, CHENNAI,
TAMILNADU - 600002, INDIA |
B65819997 |
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. 64.45 |
|
|
1 |
Rs. 95.08 |
|
Euro |
1 |
Rs. 81.78 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPH / KVA/ MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
35 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.