MIRA
INFORM REPORT
|
Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
GALLANTT METAL LIMITED |
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Registered
Office : |
1,
Crooked Lane, Second Floor, Room No. 222 and 223, Kolkata – 700069, West
Bengal |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
07.02.2005 |
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Com. Reg. No.: |
21-101553 |
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Capital
Investment / Paid-up Capital : |
Rs.813.223 Millions |
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CIN No.: [Company Identification
No.] |
L27109WB2005PLC101553 |
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IEC No.: |
0205004733 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RKTG00912C |
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PAN No.: [Permanent Account No.] |
AACCG2934J |
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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
: |
The Company is engaged in the business of Production of Iron, Steel and Power. |
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No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 9299000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory record. The rating reflects factor in the GML’s established operations and
experience of its promoters in the steel industry, its adequate liquidity position
on account of its efficient working capital management and extensive
distributor network. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade
terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate
credit isk |
|
Date |
September 20, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities A2 |
|
Rating Explanation |
Strong degree og safety and low credit isk |
|
Date |
September 20, 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 DENIED BY
|
Name : |
Mr. Sandeep Aggarwal |
|
Designation : |
General Manager Finance and Accountant |
|
Contact No.: |
91-9327717000 |
|
Date : |
13.12.2013 |
LOCATIONS
|
Registered Office : |
1,
Crooked Lane, Second Floor, Room No. 222 and 223, Kolkata – 700069, West
Bengal, India |
|
Tel. No. : |
91-33-40642189 |
|
Mobile No. : |
91-9327717000 (Mr. Sandeep Aggarwal) |
|
Fax No. : |
91-33-22312429 |
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E-Mail : |
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Website : |
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Factory 1 : |
Survey No. 175/1, Village Samkhyali, Taluka Bachau, Kutch, |
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Factory 2 : |
Near Toll Gate, Village Samakhyali, Taluka Bhachau, Kutch, |
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Tel. No.: |
91-2387-283555/ 238557 |
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Fax No.: |
91-2387-267307 / 283690 |
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Branch Office : |
Sidhi Vinayak, 101 Ward, 10 Bc, Opposite IFFCO Colony, Gandhidham –
370201, Gujarat, India |
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Tel. No.: |
91-2836-295626 |
|
Fax No.: |
91-2836-235787 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Chandra Prakash Agarwal |
|
Designation : |
Chairman and Managing Director |
|
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|
Name : |
Mr. Dinesh R Agarwal |
|
Designation : |
Whole time Director |
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|
Name : |
Mr. Nitin M Kandoi |
|
Designation : |
Director |
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|
Name : |
Mr. Prashant Jalan |
|
Designation : |
Director (Plant Operation) |
|
Designation : |
Non-Executive Independent Director |
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Date of Bith : |
01.07.1974 |
|
Qualification : |
Bachelor of Commerce from Lucknow University and one Year Diploma in
Material and Suupply Chain Management, IMT, Gaziabad. |
|
Date of Appointment : |
12.08.2013 |
|
|
|
|
Name : |
Mr. Rajesh Kumar Jain |
|
Designation : |
Non-Executive Independent Director |
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|
|
|
Name : |
Mr. Jyotirindra Nath Dey |
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Designation : |
Non-Executive Independent Director |
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Date of Bith : |
05.07.1937 |
|
Qualification : |
Electrical Egineer |
|
Date of Appointment : |
30.11.2005 |
|
|
|
|
Name : |
Mr. Prasant Kankrania |
|
Designation : |
Non-Executive Independent Director |
|
|
|
|
Name : |
Mr. Ramesh Kumar
Choudhary |
|
Designation : |
Non-Executive Independent Director |
|
Date of Bith : |
20.02.1976 |
|
Qualification : |
B. Com (H), Chartered Accountants |
|
Date of Appointment : |
12.08.2013 |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Upaddhyaya |
|
Designation : |
Company Secretary and Manager A and F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of
Shareholder |
Total
No. of Shares |
%
of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3651463 |
4.49 |
|
|
37862895 |
46.56 |
|
|
41514358 |
51.05 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
41514358 |
51.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5000000 |
6.15 |
|
|
5000000 |
6.15 |
|
|
|
|
|
|
24272243 |
29.85 |
|
|
|
|
|
|
3803781 |
4.68 |
|
|
4811750 |
5.92 |
|
|
1920192 |
2.36 |
|
|
5000 |
0.01 |
|
|
653177 |
0.80 |
|
|
1262015 |
1.55 |
|
|
34807966 |
42.80 |
|
Total Public shareholding (B) |
39807966 |
48.95 |
|
Total (A)+(B) |
81322324 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
81322324 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|
|
Gallantt Ispat Limited |
19,82,589 |
2.44 |
|
Gallantt Udyog Limited |
2,41,13,127 |
29.65 |
|
Hipoline Commerce Pvt Ltd |
1,17,67,179 |
14.47 |
|
Anand Kumar Gupta |
1,68,000 |
0.21 |
|
Anju Pansari |
1,02,500 |
0.13 |
|
Anupam Agarwal |
20,400 |
0.03 |
|
Anurag Khetan |
17,462 |
0.02 |
|
Ashutosh Agarwal |
1,78,591 |
0.22 |
|
B Ashok Kumar |
1,38,500 |
0.17 |
|
Brij Mohan Joshi |
2,500 |
0.00 |
|
Chandra Prakash Agarwal |
6,50,000 |
0.80 |
|
Dinesh Chandra Agrawal |
1,35,000 |
0.17 |
|
Dinesh Kumar Agarwal |
2,10,000 |
0.26 |
|
Gauri Shankar And Co (Huf) |
1,15,814 |
0.14 |
|
Karuna Jindal |
5,000 |
0.01 |
|
Kusum Devi Jalan |
19,661 |
0.02 |
|
Madhu Agarwal |
1,00,000 |
0.12 |
|
Manju Agarwal |
1,35,000 |
0.17 |
|
Narain Prasad Ajitsaria |
2,500 |
0.00 |
|
Naresh Chandra Agarwal |
10,000 |
0.01 |
|
Nidhi Jalan |
24,500 |
0.03 |
|
Nitin Kandoi |
10,500 |
0.01 |
|
Om Prakash Jalan |
26,000 |
0.03 |
|
Prem Prakash Agarwal |
32,500 |
0.04 |
|
Priya Agarwal |
1,00,000 |
0.12 |
|
Priyanka Das |
4,938 |
0.01 |
|
Priyanka Gupta |
1,09,500 |
0.13 |
|
Ritu Agarwal |
2,500 |
0.00 |
|
Santosh Kumar Agarwal |
3,50,000 |
0.43 |
|
Santosh Kumar Agrawal Huf |
1,10,000 |
0.14 |
|
Sharda Devi Jalan |
4,000 |
0.00 |
|
Shruti Kandoi |
40,000 |
0.05 |
|
Shyama Agrawal |
1,90,000 |
0.23 |
|
Smriti Agarwal |
10,000 |
0.01 |
|
Sonal Agarwal |
10,000 |
0.01 |
|
Subodh Kumar Jalan |
10,000 |
0.01 |
|
Sumesh Kumar Agarwal |
1,00,000 |
0.12 |
|
Sunil Kumar Shivang Pansari (Huf) |
1,52,500 |
0.19 |
|
Uma Agarwal |
3,50,000 |
0.43 |
|
Vinod Kumar Tekriwal |
3,597 |
0.00 |
|
Total |
4,15,14,358 |
51.05 |
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
|
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
Aar Commercial Company Ltd |
6439182 |
7.92 |
|
|
Elara India Opportunities Fund Ltd |
5000000 |
6.15 |
|
|
Lexi Exports Pvt Ltd |
11977179 |
14.73 |
|
|
Richie Credit and Finance Pvt Ltd |
2898958 |
3.56 |
|
|
Total |
26315319 |
32.36 |
|
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public”
and holding more than 5% of the total number of shares of the company
|
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
Aar Commercial Company Ltd |
6439182 |
7.92 |
|
|
Elara India Opportunities Fund Ltd |
5000000 |
6.15 |
|
|
Lexi Exports Pvt Ltd |
11977179 |
14.73 |
|
|
Total |
23416361 |
28.79 |
|
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business of Production of Iron, Steel and Power. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management |
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Bankers : |
Ø Bank of Baroda Ø HDFC Bank
Limited Ø State Bank of
Hyderabad Ø State Bank of
India Ø State Bank of
Indore Ø State Bank of
Mysore Ø State Bank of
Patiala Ø State Bank of
Travancore Ø UCO Bank Ø ICICI Bank |
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Facilities : |
NOTE: LONG TERM
BORROWINGS (i)
Term loan includes corporate loan T Nil (P.Y Rs. 131.000 millions). (ii)
Current portion of the loan have been grouped
under "Current maturity of long term debt" (iii)
Terms of repayment for secured borrowings a.
Term loan amounting to 7 NIL (P.Y. Rs. 757.250
millions is repayable in 20 quarterly installments commencingfrom July 2007
Last installment was due in April 2012. Rate of interest 13.25% P.A as at the
year end (P.Y. 13.25% P.A). b.
Term loan amounting to Rs. Nil (P.Y. Rs. 28.250
millions is repayable in 20 quarterly installments commencing from January
2008. Last installment due was in October 2012. Rate of interest 13.25% P.A
as at the year end (P.Y. 11.75% P.A). c.
Term loan amounting to Rs. 316.100 millions (P.Y.
Rs. 378.000 millions is repayable in 14 quarterly installments
commencing from June 2012. Last installment is due in September 2015. Rate of
interest 12.95% P.A as at the year end (P.Y. 13,25% P.A). d.
Corporate loan amounting to 3 Nil (P.Y. 3 1310.00
Lacs is repayable in 8 quarterly installments commencingfrom June 2012. Last
installment was paid in March 2013. Rate of interest 12.95% P.A as at the
year end (P.Y. 13.25% P.A). (iv)
Nature of Security for secured borrowing a.
All the above term loans are secured by first
pari pasu charge on all the fixed assets (present and future) and second
paripasu charge on current assets of the plant situated in Kutch, Gujarat. b.
All the above term loans are secured by equitable
mortgage of house property of Sri S.K.Agarwal, relative of director and
collateral security by pledge of equity share of the company held by
promoters. c.
Further the above term loans has been guaranteed
by the corporated guarantee of MIS. Gallantt Udyog Limited to the extent of
shares pledged aggregating Rs. 14.650 millions equity shares of Rs. 101- each
and MIS. Hipoline Commerce Private Limited d.
Further the above Term Loans have been guaranteed
by the personal guarantee of Sri C.P. Agarwal, Sri Dinesh R Agarwal and Sri
Nitin Kandoi director of the company and Mr. S.K.Agarwal relative of the
director. (v)
Deferred sales tax loan is interest free and
payable in 6 equal yearly installment of Rs. 0.489 millions payable from
2011-12. SHORT TERM BORROWINGS
i.
Working Capital Loan includes Working Capital Term
Loan of Rs. Nil (P.Y. Rs. 201.868 millions)
bearing interest @ 11.70% P.A
(P.Y. 11%) and repaid in
August 2012. ii.
Working capital loan from bank is secured by
first charge on all the current assets charge on fixed assets of the plant
situated in kutch, Gujarat bearing interest @ 10.20% p.a. (P. Y. 13.752%) at
the end of the year. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A K Meharaja and Associates Chartered Accountants |
|
|
|
|
Cost Auditors |
|
|
Name : |
Upendra Tiwari and Associates Cost Accountants |
|
|
|
|
Associates : |
Ø Gallantt Ispat
Limited Ø Ganesh Laxmi
Processors Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
83000000 |
Equity Shares |
Rs.10/- each |
Rs.830.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
81322324 |
Equity Shares |
Rs.10/- each |
Rs.813.223 Millions |
|
|
|
|
|
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 |
813.223 |
813.223 |
813.223 |
|
(b) Reserves & Surplus |
1511.776 |
1194.271 |
1048.838 |
|
(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) |
2324.999 |
2007.494 |
1862.061 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
216.767 |
379.056 |
603.264 |
|
(b) Deferred tax liabilities (Net) |
196.803 |
187.819 |
179.704 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
413.570 |
566.875 |
782.968 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
265.508 |
572.344 |
314.298 |
|
(b) Trade payables |
740.589 |
326.042 |
263.001 |
|
(c) Other current
liabilities |
216.386 |
298.429 |
338.220 |
|
(d) Short-term provisions |
169.199 |
152.076 |
208.395 |
|
Total Current Liabilities (4) |
1391.682 |
1348.891 |
1123.914 |
|
|
|
|
|
|
TOTAL |
4130.251 |
3923.260 |
3768.943 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1928.512 |
2044.183 |
2151.753 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
90.128 |
6.357 |
5.896 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
426.037 |
426.037 |
291.037 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3.954 |
3.935 |
3.935 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
2448.631 |
2480.512 |
2452.621 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
790.847 |
618.892 |
480.019 |
|
(c) Trade receivables |
299.449 |
334.935 |
215.540 |
|
(d) Cash and cash
equivalents |
174.363 |
110.197 |
66.348 |
|
(e) Short-term loans and
advances |
194.214 |
216.481 |
267.522 |
|
(f) Other current assets |
222.747 |
162.243 |
286.893 |
|
Total Current Assets |
1681.620 |
1442.748 |
1316.322 |
|
|
|
|
|
|
TOTAL |
4130.251 |
3923.260 |
3768.943 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6627.351 |
5853.236 |
5566.833 |
|
|
|
Other Income |
46.729 |
28.499 |
117.748 |
|
|
|
TOTAL (A) |
6674.080 |
5881.735 |
5684.581 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and component consumed |
5555.317 |
4939.385 |
4617.465 |
|
|
|
Changes in inventory of finished goods and work in progress |
(99.070) |
(54.282) |
3.537 |
|
|
|
Employee benefit expenses |
73.145 |
67.392 |
56.669 |
|
|
|
Other expenses |
549.679 |
460.782 |
409.601 |
|
|
|
TOTAL (B) |
6079.071 |
5413.277 |
5087.272 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
595.009 |
468.458 |
597.309 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
103.338 |
159.469 |
137.965 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
491.671 |
308.989 |
459.344 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
159.196 |
155.354 |
156.750 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
332.475 |
153.635 |
302.594 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
14.970 |
8.202 |
73.369 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
317.505 |
145.433 |
229.225 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (including in-transit) |
2306.846 |
528.311 |
333.206 |
|
|
|
Stores & Spares |
0.067 |
0.276 |
0.000 |
|
|
|
Capital Goods |
1.515 |
2.140 |
1.224 |
|
|
TOTAL IMPORTS |
2308.428 |
530.727 |
334.430 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.90 |
1.79 |
2.82 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.76
|
2.47 |
4.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.02
|
2.62 |
5.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.20
|
4.40 |
8.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.08 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.21
|
0.47 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.21
|
1.07 |
1.17 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBTS
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Current maturities of long term debts |
102.267 |
218.411 |
277.287 |
|
|
|
|
|
|
Total |
102.267
|
218.411 |
277.287 |
|
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 |
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred sales tax loan |
1.467 |
1.956 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Foreign currency loans – Buyers credit |
110.249 |
181.721 |
|
|
|
|
|
Total |
111.716 |
183.677 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification
|
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10171379 |
11/07/2009 |
378,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP, 58, SHRIMALI SOCIETY, NAVRANGAPURA, AHMEDABAD,
Gujarat - 380009, INDIA |
A68112655 |
|
2 |
80008909 |
29/09/2011 * |
1,381,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNT GROUP BRANCH, 58, SHRIMALI SOCIETY, NAVRANGPURA,
AHMEDABAD, Gujarat - 380009, INDIA |
B32047094 |
|
3 |
80035052 |
01/08/2013 * |
1,788,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNT GROUP BRANCH, 58, SHRIMALI SOCIETY, NAVRANGPURA,
AHMEDABAD, Gujarat - 380009, INDIA |
B81807554 |
* Date of charge modification
RESULTS OF OPERATIONS
During the year the Company has reported a turnover of Rs. 6627.351 millions. Theoperating profit stood at Rs. 595.009 millions. The Profit before Tax and Profit afterTaxremains Rs. 332.475 millions and Rs. 317.505 millions respectively. The basic earnings per sharefor 2012-13 were Rs. 3.90 as against Rs. 1.79 for the previous year. Financial Year 2012-13 was a challenging year. Despite adverse Global as well as Indian economy, theCompany performed reasonably well and Gallantt Metal looks ahead to a hopeful further systematic robustness in the business and operation. The Directors continue to identifyopportunities to leverage and introduce technology to improve their performance, be it inoperations, people management, and knowledge management and to strengthen proactive stakeholder relations.
PROJECTS AND
EXPANSION INITIATIVES
The Company has decided to set-up a new Pellet plant with beneficiation unit atvillage-Halavarthi, Taluka and District - Koppal, Karnataka. Company has acquired a landof 106 acres (approx.) for the expansion plan as above and has also obtained clearancesfor the new project from the Karnataka Government and Ministry of Environment and Forests.
MANAGEMENT
DISCUSSIONS AND ANALYSIS REPORT
BUSINESS ENVIRONMENT
The global economy witnessed a major economic slowdown during fiscal 2013. Economicenvironment remained challenging with growth slowing down globally.
India was impacted by both global and domestic events that led to moderation ineconomic activity. India's gross domestic product (GDP) grew by 5.0% during the first ninemonths of fiscal 2013 as compared to 6.6% during the corresponding period of fiscal 2012.There is a moderation in GDP growth, inflation remains a deterrent to economic growth, thecapital markets are depressed, their currency is at historic lows and the fiscal and currentaccount deficit chasm remains a matter of concern. Depreciating Indian Rupee adverselyaffected its external trade resulting in skewed trade and fiscal deficits and subduedeconomic growth estimated at 5%. Country's under performance was partly due to the mutedand uneven Global economic recovery in 2012 with World GDP slowing down to 3.2%. Outlookfor Global economy is expected to progressively improve with more accommodative monetarypolicies, improving fiscal stability and assuming absence of any adverse events resultingin a gradual restoration of confidence during 2013 through 2014. In accordance, IMF hasprojected World GDP to grow at 3.3% during 2013 and increasing to 4% in 2014.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Global Steel sector witnessed a destocking during C.Y. 2012 influenced by growingeconomic uncertainties coupled with a soft lending for Chinese economy - resulting in amarginal growth of 1.2% each for Global steel production as well as demand. During FY'13,Indian crude steel production increased by 5.4% to 78 million tonnes while domestic demandsaw a growth of 3.3% to 73 million tonnes. The demand was majorly affected by underperforming investment growing @ 1.7%, depressed industrial growth at 1%, decelerating autoproduction growing at 2% and Rupee witnessing a sharp depreciation of 14% putting furtherpressure on margins.
The domestic steel industry faced significant impediments in the form of weak demandgrowth of 3.3%, the lowest since 2009. The elasticity of steel demand to GDP growth in FY2012-13 stood at 0.65, compared to a 10-year average of 1.16, indicating a less steelintensive phase of growth. Per capita steel demand in India increased marginally from 59kg in FY 2011-12 to 60 kg in FY 2012-13. F Y 2012-13 witnessed imports growing by 1 MnT or14% to 8.6 MnT, displacing 45% domestic supplies.
FUTURE OUTLOOK
They believe that the strong underlying fundamentals of the Indian economy with a young population will support strong growth over the medium to long term, and their strategyrevolves around prudently managing short term challenges while being prepared to meet theneeds of a vibrant economy. Despite a challenging macro economic environment they made significant progress with sustained improvements sales and turnover.
In 2012-13, particularly, their efforts at focusing on optimising cost of production yielded positive results. Faced as they were, with raw material shortages and poor quality supplies accentuated by the prevailing uncertainty in the regulatory environment, theysucceeded in reigning in costs through various measures of cost-efficiency in their production processes. Constant monitoring of processes resulted in enhanced yields.Various other methods such as recycling materials to achieve optimum utilisation,procurement of raw material at appropriate prices and various technological enhancements,further enhanced competitiveness. Further, accelerated approach to reformatory policyinitiatives with reducing subsidies, expanding FDI limits in Multiple-brand retail, Insurance, Banking etc., proactive role of Cabinet Committee for Investment for timely clearances of projects coupled with improving industrial production and growing focus on Infrastructure development is expected to witness a more sustainable economic developmentand growth with a moderate inflation and declining deficits. At the back of a modesteconomic recovery Indian Steel industry remains optimistically cautious with demand expected to complement the country's economic performance in fiscal 2014.
Indian steel demand is expected to boost by Infrastructure and Construction development, sustained by industrial, manufacturing and capital goods and be stimulated bythe automotive and consumer durable sectors. The USD 1 trillion investment in toinfrastructure and construction planned during the 12th Five Year will drive demand.Direct demand for infrastructure and construction is pegged at approximately 40 MnT withper capita steel demand projected to increase from 60 kg in FY 2012-13 to 88 kg by FY2016-17. The Indian Steel Industry is expected to achieve a growth of 5.9% during FY2013-14 as per the projection given by World Steel Association.
FIXED ASSETS
Ø
Land
Ø
Building
Ø
Plant and Machinery
Ø
Misc. Fixed assets
Ø
Computer
Ø
Furniture and Fixture
Ø
Office Equipment
Ø
Vehicles
Ø
C. I. Mould
Ø
Rolls
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.62.96 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.85.33 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
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.