MIRA INFORM REPORT
|
Report Date : |
23.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
KALYANI STEELS LIMITED |
|
|
|
|
Registered
Office : |
Corporate Building, 2nd Floor, Mundhwa, Pune -
411036, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
28.02.1973 |
|
|
|
|
Com. Reg. No.: |
11-016350 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 218.644
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27104MH1973PLC016350 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEK05371C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Forging and Engineering Quality Carbon and
Alloy Steels. |
|
|
|
|
No. of Employees
: |
54 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 14180000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having a fine track
record. Financial position of the company appears to be sound. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered normal 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.
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 |
ICRA |
|
Rating |
Term Loans : A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
February 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Debt : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
February 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 DECLINED
MANAGEMENT NON-COOPERATIVE [91-20-66215000]
LOCATIONS
|
Registered/ Corporate Office : |
Corporate Building, 2nd Floor, Mundhwa, Pune - 411036,
Maharashtra, India |
|
Tel. No.: |
91-20-26715000/ 66215000 |
|
Fax No.: |
91-20-26821124 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Works : |
Hospet Road, Ginigera Taluka and District Koppal – 583228, Karnataka, India |
|
Tel. No.: |
91-8539-86603/ 08 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. B.N. Kalyani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. R.K. Goyl |
|
Designation : |
Managing director |
|
|
|
|
Name : |
Mr. Amit B. Kalyani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.S. Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.B. Hattarki |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.U. Takale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun P. Pawar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.G. Patankar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Deepti R. Puranik |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
48355 |
0.11 |
|
|
26078001 |
59.74 |
|
|
26126356 |
59.85 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
26126356 |
59.85 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7800 |
0.02 |
|
|
1818 |
0.00 |
|
|
75000 |
0.17 |
|
|
84618 |
0.19 |
|
|
|
|
|
|
4612370 |
10.57 |
|
|
|
|
|
|
10609656 |
24.30 |
|
|
1766259 |
4.05 |
|
|
453801 |
1.01 |
|
|
214121 |
0.49 |
|
|
239014 |
0.55 |
|
Foreign Corporate
Bodies |
666 |
0.00 |
|
|
17442086 |
39.96 |
|
Total Public shareholding (B) |
17526704 |
40.15 |
|
Total (A)+(B) |
43653060 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
43653060 |
100.00 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons belonging
to the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Ajinkya Investment and Trading Company |
3261822 |
7.47 |
|
2 |
Sundaram Trading and Investment Private Limited |
5691198 |
13.04 |
|
3 |
Ajinkyatara Trading Company Limited |
2560 |
0.01 |
|
4 |
Lohagaon Trading Company Private Limited |
70000 |
0.16 |
|
5 |
BF Investment Limited |
17052421 |
39.06 |
|
6 |
B.N. Kalyani |
1118 |
0.00 |
|
7 |
Amit Kalyani |
31694 |
0.07 |
|
8 |
Sugandha J. Hiremath |
6785 |
0.02 |
|
9 |
S.B. Kalyani |
7743 |
0.02 |
|
10 |
Sugandha Hiremath and Jay Hiremath |
1015 |
0.00 |
|
|
Total |
2,61,26,356 |
59.85 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No.
of Shares held |
Shares
as % |
|
|
1 |
Sadguru Investment and Trading Company |
1601128 |
3.67 |
|
|
2 |
Gloxinia Investment and Finance Private Limited |
500050 |
1.15 |
|
|
|
Total |
2101178 |
4.81 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Forging and Engineering Quality Carbon and
Alloy Steels. |
||||||||
|
|
|
||||||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
Customers : |
International · Alcan Iceland, Iceland · Alcan Primary Metals, UK · Aluminium Bahrain, Alba · Arvin Meritor, USA · BF Klista, Sweden · BF Scottish Stampings, Scotland · Caterpillar Inc, USA · C. V. G. Venalum, Venezuela · Dubai Aluminium Company Limited · Ford, USA · Hydro Aluminium, Norway · Scania, Sweden · Volvo, Sweden · Rio Tinto Domestic · Ashok Leyland · Automotive Axles · Bharat Aluminium Company Limited · Bharat Forge Limited · Bharat Heavy Electricals Limited (Trichy) · Indian Railways · ISMT · Jindal Saw Limited · Kirloskar Oil Engine Limited · Maharashtra Seamless Limited · Mahindra and Mahindra · M. M. Forgings Limited · Tata Motors |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
No. of Employees : |
54 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
v Bank of Baroda v Union Bank of India
v Canara Bank v HDFC Bank Limited v State Bank of India
v Axis Bank Limited v The Hongkong and Shanghai Banking Corporation Limited |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. G. Bhagwat Chartered Accountants |
|
Address : |
Suite No. 2, "Orchard", Dr. Pai Marg, Baner, Pune – 411045, Maharashtra, India |
|
|
|
|
Associates : |
· Kalyani Mukand Limited ·
Lord Ganesha Minerals Private Limited |
|
|
|
|
Joint Venture : |
Hospet Steels Limited |
|
|
|
|
Companies under
Common Control : |
· Bharat Forge Limited · Kalyani Carpenter Special Steels Limited · Kalyani Investment Company Limited ·
BF Investment Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
95,000,000 |
Equity Shares |
Rs. 5/- each |
Rs. 475.000 Millions |
|
3,010,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 301.000 Millions |
|
2,400,000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 24.000 Millions |
|
|
Total |
|
Rs. 800.000 Millions
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43,759,380 |
Equity Shares |
Rs. 5/- each |
Rs. 218.797
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43,653,060 |
Equity Shares |
Rs. 5/- each |
Rs. 218.265
Millions |
|
106,320 |
Add : Forfeited Equity Shares (amount paid up) |
|
Rs. 0.379
Million |
|
|
Total |
|
Rs. 218.644 Millions |
(a) Terms / Rights attached to Shares:
Equity Shares:
The Company has
only one class of Equity Shares having at par value of Rs. 5/- per share.
Equity Shares are pari-passu in all respects and each shareholder is eligible
for one vote per share held. The Company declares and pays dividend in Indian
Rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders at the ensuing Annual General Meeting. In the
event of liquidation of the Company, the equity shareholders are eligible to
receive the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.
(b) Details of shareholders holding more than 5%
Shares in the Company:
Equity Shares:
|
Particulars |
31.03.2013 |
|
|
|
No. of Shares |
% holding in the class |
|
Equity Shares of
Rs.5/- each fully paid |
|
|
|
Ajinkya Investment and Trading Company |
3,261,822 |
7.47 |
|
Sundaram Trading and Investment Private Limited |
5,691,198 |
13.04 |
|
BF Investment Limited |
17,052,421 |
39.06 |
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 |
218.644 |
218.644 |
218.644 |
|
(b) Reserves & Surplus |
3327.335 |
3165.264 |
2995.636 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
3545.979 |
3383.908 |
3214.280 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1251.573 |
831.073 |
898.751 |
|
(b) Deferred tax liabilities (Net) |
382.751 |
321.525 |
364.267 |
|
(c)
Other long term liabilities |
795.016 |
526.448 |
537.431 |
|
(d)
long-term provisions |
5.794 |
2.038 |
1.281 |
|
Total
Non-current Liabilities (3) |
2435.134 |
1681.084 |
1801.730 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
746.300 |
1095.596 |
1356.641 |
|
(b)
Trade payables |
1513.390 |
1136.914 |
906.757 |
|
(c)
Other current liabilities |
516.779 |
619.866 |
580.073 |
|
(d)
Short-term provisions |
82.800 |
58.183 |
109.544 |
|
Total
Current Liabilities (4) |
2859.269 |
2910.559 |
2953.015 |
|
|
|
|
|
|
TOTAL |
8840.382 |
7975.551 |
7969.025 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
3371.435 |
1906.354 |
2141.396 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
116.603 |
595.822 |
123.101 |
|
(iv) Intangible assets under development |
26.739 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
487.300 |
687.300 |
832.500 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
571.693 |
714.132 |
504.861 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
4573.770 |
3903.608 |
3601.859 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1282.633 |
1177.049 |
1352.393 |
|
(c)
Trade receivables |
2274.793 |
1984.355 |
2495.677 |
|
(d)
Cash and cash equivalents |
89.579 |
190.075 |
176.233 |
|
(e)
Short-term loans and advances |
526.275 |
638.216 |
299.559 |
|
(f)
Other current assets |
93.332 |
82.248 |
43.305 |
|
Total
Current Assets |
4266.612 |
4071.943 |
4367.167 |
|
|
|
|
|
|
TOTAL |
8840.382 |
7975.551 |
7969.025 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations [Net] |
8090.681 |
9768.465 |
12368.217 |
|
|
|
Other Income |
71.545 |
218.030 |
166.908 |
|
|
|
TOTAL (A) |
8162.226 |
9986.495 |
12535.125 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material consumed |
4312.678 |
5474.676 |
5845.124 |
|
|
|
Purchases of traded goods |
104.828 |
592.061 |
2426.175 |
|
|
|
(Increase)/ Decrease in inventories of finished goods and work in
progress |
148.472 |
(6.510) |
(227.684) |
|
|
|
Employee Benefit Expenses |
378.168 |
335.678 |
300.325 |
|
|
|
Other Expenses |
2380.286 |
2946.708 |
3007.391 |
|
|
|
TOTAL (B) |
7324.432 |
9342.613 |
11351.331 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
837.794 |
643.882 |
1183.794 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
224.844 |
213.672 |
203.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
612.950 |
430.210 |
980.488 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
235.628 |
260.568 |
294.762 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
377.322 |
169.642 |
685.726 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
138.644 |
(50.722) |
138.688 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
238.678 |
220.364 |
547.038 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of Exports |
267.555 |
492.651 |
195.117 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
|
|
|
|
|
- Coke |
804.818 |
765.117 |
584.674 |
|
|
|
- Coal |
0.000 |
449.293 |
887.113 |
|
|
|
- Ferro Alloys |
154.874 |
125.906 |
3.615 |
|
|
|
Goods Traded in : |
|
|
|
|
|
|
- Coal |
0.000 |
276.785 |
1557.654 |
|
|
|
Capital Goods |
269.870 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
1229.562 |
1617.101 |
3033.056 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.47 |
5.05 |
12.53 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
2447.300 |
|
Total Expenditure |
|
|
2183.700 |
|
PBIDT (Excl OI) |
|
|
263.600 |
|
Other Income |
|
|
11.400 |
|
Operating Profit |
|
|
275.100 |
|
Interest |
|
|
38.900 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
236.100 |
|
Depreciation |
|
|
80.800 |
|
Profit Before Tax |
|
|
155.300 |
|
Tax |
|
|
53.800 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
101.500 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
101.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.92
|
2.21 |
4.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.66
|
1.74 |
5.54 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.60
|
2.53 |
9.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.05 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.56
|
0.57 |
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.40 |
1.48 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Debentures 10.75%
Non-Convertible Redeemable Debentures (Nineteenth Series) of Rs. 1.000
Million each |
183.333 |
183.333 |
183.333 |
|
Rupee Term Loans |
|
|
|
|
Bank of Baroda |
0.000 |
6.250 |
0.000 |
|
Axis Bank Limited |
0.000 |
126.010 |
0.000 |
|
Canara Bank |
0.000 |
32.085 |
128.340 |
|
HDFC Bank Limited |
0.000 |
0.000 |
6.250 |
|
Total |
183.333 |
347.678 |
317.923 |
|
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
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 |
No |
|
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 LOANS
|
Unsecured Loans |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
SHORT TERM BORROWINGS |
|
|
|
Foreign Currency Term Loans from Banks, under a buyer’s line of credit
for Import of Goods |
171.696 |
795.630 |
|
Sales Bill Discounting |
574.560 |
299.922 |
|
Deposits |
0.044 |
0.044 |
|
Total |
746.300 |
1095.596 |
THE YEAR IN RETROSPECT:
On the backdrop of Iron Ore mining ban in the State of Karnataka, Odisha and Goa, adversely affecting the supply as well as cost of iron ore, the Company performed reasonably well during the year 2012-13. The Company achieved Profit before Tax of Rs. 377.321 Million during 2012-13, as compared to Rs. 224.443 Million in the previous year, representing a growth of 68%. This was possible due to improvement in operational efficiencies and cost reduction initiatives undertaken by the Company.
The members are aware of the Iron Ore mining ban imposed by the Hon'ble Supreme Court vide its Order dated 29th July, 2011 and 5th August, 2011, in the State of Karnataka. As a result of the mining ban, the iron ore production declined drastically in the State of Karnataka and the Company was required to operate at a lower capacity.
The Hon'ble Supreme Court later allowed NMDC Limited (NMDC) to mine 1 Million Tons of Iron Ore per month and sell it to steel plants through e-Auction. The Hon'ble Supreme Court also allowed selling 1.5 Million Tons of Iron Ore per month through e-Auction from the then existing stocks of 25 Million Tons in the State of Karnataka. However, subsequently a cap of 30 Million Tons per annum was put on the total production of Iron Ore from the State of Karnataka. The decision of selling Iron Ore through e-Auction and limiting the mining quantity in the State of Karnataka led to speculative prices, which in turn led to closure or lower capacity utilisation of steel plants in the State of Karnataka.
After closure of mines, the leases for Iron Ore mining had been categorised by the Hon'ble Supreme Court appointed Central Empowered Committee (CEC) as 'A', 'B' and 'C', based on the level of illegalities.
Category ‘A’ Mines - It comprises of (a) working leases where there is no illegality / marginal illegality have been found and (b) non-working leases wherein no / marginal irregularities have been found. The number of such leases comes to 21 & 24 respectively.
Category ‘B’ Mines - It comprises of (a) mining leases where illegal mining by the way of (i) mining pits outside the sanctioned lease areas have been found to be upto 10% of the lease areas and / or (ii) overburden / waste dumps outside the sanctioned lease areas have been found to be upto 15% of the lease areas and (b) leases falling on interstate boundary between Karnataka and Andhra Pradesh and for which survey sketches have not been finalised. The number of such leases in Category ‘B’ comes to 72.
Category ’C’ Mines - It comprises of leases wherein (a) the illegal mining by way of (i) mining pits outside the sanctioned lease area have been found to be more than 10% of the lease area and / or (ii) overburden / waste dumps outside the sanctioned lease areas have been found to be more than 15% of the lease areas and / or (b) the leases found to be involved in flagrant violation of the Forest Conservation Act and / or found to be involved in illegal mining in other lease areas. The number of such leases comes to 49.
On 3rd September 2012, the Hon'ble Supreme Court allowed mining in 18 Category 'A' mines and on 18th April, 2013, permitted reopening of remaining Category 'A' mines (27 in number) and Category 'B' mines (63 in number). Thus, 108 out of the 166 mines in Karnataka are allowed to resume operations after compliance of stringent conditions laid down by the Hon'ble Supreme Court, subject to cap of 30 Million Tons per annum, on the total production of Iron Ore in the State of Karnataka. The decision regarding remaining mines in Category 'B' is pending and will be taken in due course by the Hon'ble Supreme Court. However, the Hon'ble Supreme Court cancelled 49 leases of Category 'C' mines.
Although the Hon'ble Supreme Court took commendable steps in its decisions for clampdown on the illegal mining, Category 'A' and 'B' mines may take even two years of time for implementing all the 'Reclamation and Rehabilitation (R & R)' Plans and opening of all the Category 'A' and 'B' mines.
In the given situation, the Company has no other option than to procure iron ore by participating in e-Auction conducted by Monitoring Committee. Due to short supply of iron ore, the prices of iron ore have become speculative and almost doubled, putting pressure on the operating margins of the Company.
ROLLING MILL:
The Rolling Mill started its commercial production with effect from 28th March, 2013. The mill has capacity to roll 100,000 MTs of steel per annum. This will reduce reliance on outside rolling as well as achieve reduction in the rolling cost, inventory and the Company will be able to cater the customer needs faster.
COST REDUCTION INITIATIVES:
33m2 Circular Sinter Plant commissioned on 4th March, 2013. This will enhance flexibility to use cheaper raw materials like iron ore fines instead of lumpy ore. Completed installation of Stoves on MBF - I. Completed installation of Coal Injection System.
The Company expects to achieve substantial cost savings, by taking these initiatives, thus improving margins.
COKE OVEN ALONG WITH DRI PLANT:
Metallurgical Coke is one of the basic inputs of steel making process. At present Coke is purchased from domestic and international markets however, inconsistent quality and high prices continuously affect the Steel Industry. To reduce the cost and improve quality of Coke, the Company intends to set up Coke Oven along with DRI plant based on Coke Oven gas and a Pellet Plant. Details of the Project are being worked out.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY SCENARIO:
World Crude Steel production reached 1,548 Million MTs for the year 2012, up by 1.2% compared to 2011. The growth came mainly from Asia and North America while crude steel production in the EU and South America decreased in 2012 compared to 2011.
The biggest steel producing country was China, which accounted for 46.3% of world crude steel production in 2012, followed by Japan and the US, retaining their slots in the respective order in 2012.
India's rank remained unchanged at the fourth slot with an output of 76.7 Million MTs despite recording the highest growth of 4.2 per cent amongst major steel producing nations in 2012. Although the consumption during the said period was seen to grow at a slower pace than the production, the increase in exports became feasible and actually rose compared to 2011. Long term prospects of the Indian Steel Industry are very bright. Domestic Steel consumption is expected to grow steadily in the years to come driven by urbanisation, infrastructural investments and industrialisation. India may become world's second largest country in terms of consumption by 2020 only behind China.
COST REDUCTION INITIATIVES TAKEN BY THE COMPANY DURING
2012-13:
Mini Blast Furnace:
Improvement in productivity of Mini Blast Furnace from 2.2 tons/m3/day to 2.8 tons/m3/day by using various measures including usage of Sinter Screening of iron ore fines to segregate nut ore (+8mm). The nut ore is used to replace calibrated iron ore in MBF burden. The Company has been able to replace 5% of calibrated iron ore by nut ore in the MBF burden. Injection of Pulverized Coal to replace costly Coke Installation of Kalugin Stoves to improve hot blast temperature and further reduce coke consumption
Steel Melting Shop:
Replacement of expensive furnace oil by using blast furnace gas as fuel in Ladle Preheater and VD Boiler Improvement in ferro alloy yield Extraction of Metal from EOF Slag
Rolling Mill Shop:
Replacement of expensive furnace oil by using blast furnace gas as fuel in Reheating Furnace Increase in overall productivity by optimum utilisation of the two rolling mills
COMPANY PERFORMANCE:
Sales, Gross - Rs. 10114.000 Million
Profit before Taxation - Rs. 377.000 Million
Sales, Gross includes Trading Revenue of Rs. 105.000 Million and Manufacturing Revenue of Rs. 10009.000 Million.
Manufacturing Revenue consists of sale of Rolled Products, As Cast Blooms, Misc. Sales and Conversion Charges received. The Company sold 128,385 tons of 'Rolled Products' aggregating Rs. 7173.000 Million, 12,837 tons of 'As Cast Blooms' aggregating Rs. 574.000 Million. Misc. sales amounted to Rs. 176.000 Million and Conversion Charges received were Rs. 2086.000 Million. The Manufacturing Turnover includes exports of 4,305 tons of Steel aggregating Rs. 274.000 Million.
STATEMENT OF UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2013
[Rs.
in Millions]
|
Particulars |
30.06.2013 |
|
|
(Unaudited) |
|
Income from Operations |
3068.692 |
|
Less: Excise Duty |
626.928 |
|
Net Sales/Income from Operations |
2441.764 |
|
Other Operating Income |
5.545 |
|
Total Income from
operations (net) |
2447.309 |
|
|
|
|
Expenses |
|
|
(a) Cost of raw material consumed |
1241.000 |
|
(b) Changes in inventories of finished
goods, work in progress and stock in trade |
(49.675) |
|
(c) Conversion Cost |
299.622 |
|
(d) Employee benefit expenses |
139.887 |
|
(e) Depreciation and amortization expenses |
80.815 |
|
(f) Other Expenses |
552.844 |
|
Total Expenses |
2264.493 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
182.816 |
|
Other Income |
11.418 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
194.234 |
|
Finance costs |
38.937 |
|
Profit/ Loss from Ordinary
Activities after Finance costs but Exceptional item |
155.297 |
|
Exceptional
item |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
155.297 |
|
Tax Expenses |
53.840 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
101.457 |
|
Prior Period
Adjustments |
-- |
|
Net Profit for the period |
101.457 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
218.265 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
|
|
Earnings per
share Basic and
Diluted (not annualised) |
2.32 |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public
shareholding |
|
|
Number of
Shares |
17526704 |
|
Percentage of Shareholding |
40.15% |
|
2. Promoters
and promoter group shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
|
Non - encumbered |
|
|
- Number of
Shares |
26126356 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
100.00% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
59.85% |
|
|
Particulars |
Quarter Ended
30.06.2013 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed of during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1.
The above results were reviewed by the Audit
Committee, approved by the Board of Directors of the Company at its meeting
held on 24.07.2013 and have been subjected to a ‘Limited Review’ by the
auditors.
2.
Previous year figures have been regrouped and
reclassified wherever necessary to make them comparable with current period.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. in Millions) |
|
|
A. Contingent Liabilities
not provided for in respect of : |
|
|
|
a) Claims against the Company not acknowledged as debts |
12.648 |
12.648 |
|
b) Excise & Service Tax Demands - Matter under dispute |
19.144 |
14.009 |
|
B. Mysore Minerals
Limited (MML) had raised an illegitimate claim aggregating to
Rs.281.552,035/- for difference in price of calibrated iron ore purchased by
the Company over and above the agreed contracted price. The Company has
repudiated the said claim as the same in ultra-vires to the contract. The
dispute has been referred to Arbitrator. In addition to
above, MML had raised claim of Forest Development Tax on calibrated iron ore
purchased by the Company for ` 68,552,937/- , which is under dispute, out of this
claim, our Company share is ` 28,367,205/-. |
||
FIXED ASSETS:
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Office Equipment
· Furniture and Fixtures
·
Vehicles
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. 65.42 |
|
|
1 |
Rs. 102.10 |
|
Euro |
1 |
Rs. 87.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
63 |
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.