1. Summary Information

 

 

Country

INDIA

Company Name

USHA MARTIN LIMITED

Principal Name 1

MR. PRASHANT JHAWAR

Status

GOOD

Principal Name 2

MR. RAJEEV JHAWAR

 

 

Registration #

21-091621

Street Address

2 A, SHAKESPEARE SARANI, P.S. SHAKESPEARE SARANI, MANGAL KALASH,  KOLKATA – 700 071, WEST BENGAL

Established Date

22.05.1986

SIC Code

--

Telephone#

91-33-22828540

Business Style 1

MANUFACTURER

Fax #

91-33-22821660

Business Style 2

--

Homepage

www.ushamartin.com

Product Name 1

WIRE

# of employees

8000 (APPROXIMATELY)

Product Name 2

WIRE ROPES

Paid up capital

Rs.305,400,000/-

Product Name 3

STEEL

Shareholders

PROMOTER AND PROMOTER GROUP-44.59%

PUBLIC SHAREHOLDING-55.41%

Banking

STATE BANK OF INDIA

Public Limited Corp.

YES

Business Period

27 YEARS

IPO

YES

International Ins.

--

Public Enterprise

YES

Rating

A (58)

Related Company

Relation

Country

Company Name

CEO

SUBSIDIARIES

--

USHA MARTIN INTERNATIONAL LIMITED (UMIL)

--

Note

--

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets
10,235,700,000

Current Liabilities
21,616,200,000

Inventories
12,127,400,000

Long-term Liabilities

21,741,100,000

Fixed Assets

29,088,900,000

Other Liabilities

2,273,700,000

Deferred Assets

0,000

Total Liabilities

45,631,000,000

Invest& other Assets

9,494,400,000

Retained Earnings

15,010,000,000

 

 

Net Worth

15,315,400,000

Total Assets

60,946,400,000

Total Liab. & Equity

60,946,400,000

 Total Assets

(Previous Year)

49,686,500,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

28,368,900,000

Net Profit

(327,700,000)

Sales(Previous yr)

25,247,100,000

Net Profit(Prev.yr)

995,300,000

 

MIRA INFORM REPORT

 

 

Report Date :

26.02.2013

 

IDENTIFICATION DETAILS

 

Name :

USHA MARTIN LIMITED (w.e.f. 22.07.2003)

 

 

Formerly Known As :

USHA BELTRON LIMITED

 

 

Registered Office :

2 A, Shakespeare Sarani, P.S. Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

22.05.1986

 

 

Com. Reg. No.:

21-091621

 

 

Capital Investment / Paid-up Capital :

Rs.305.400 Millions

 

 

CIN No.:

[Company Identification No.]

L31400WB1986PLC091621 (New)

L99999WB1986PTC091621 (Old)

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALU01301G

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in manufacture of wire, wire ropes, steel with captive mineral linkages of iron ore and coal and cables.

 

 

No. of Employees :

8000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (58)

 

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 61262000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track record. There appears some loss in the current year recorded by the company. However, financially company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

FITCH

Rating

A+ (Long Term Issuer Rating)

Rating Explanation

The capacity for payment of financial commitments is considered strong. This capacity may nevertheless, be more vulnerable to adverse business or economic conditions.

Date

November, 2012

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

2 A, Shakespeare Sarani, P.S. Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, West Bengal, India

Tel. No.:

91-33-22828540/ 41/ 6737/ 8545/ 39800300/ 22825816

Fax No.:

91-33-22821660/ 1971/ 39800400

E-Mail :

gdsaini@ushamartin.co.in

r.jhawar@ubest.sprintrpg.ems.net.in

kalyanc@ushamartin.co.in

investor_relation@ushamartin.co.in

Website :

http://www.ushamartin.com

 

 

Corporate Office :

Agarwal Estate, 168 CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Tel. No.:

91-22-26160176/ 26528477

Fax No.:

91-22-26526774

Email:

marketing-west@ushamartin.com

 

 

Administrative Office :

Usha Alloys and Steel Division, Post Box 147, Jamshedpur – 831 001, Jharkhand, India

Tel No.:

91-657-2386052/ 2386070

 

 

Factory 1 :

Wire Ropes and Speciality Products Division:

Tatilswai, Ranchi – 835 103, Jharkhand, India

 

 

Factory 2 :

Steel Division:

Adityapur, Jamshedpur – 831 001, Jharkhand - India

 

 

Factory 3 :

Construction Steel Division-North:

Nawalganj, Agra – 282 006, Uttar Pradesh, India

 

 

Factory 4 :

Wire and Wire Rope Division North:

Hoshiarpur – 146 024, Punjab, India

 

 

Factory 5 :

Iron Ore Mines:

Barajamda Jharkhand, Barajamda – 833 221, Jharkhand, India

 

 

Factory 6 :

Coal Mines:

Daltongunj, Jharkhand, Daltongunj – 822 101, Jharkhand, India

 

 

Factory :

Also located at:

 

·         Sri Perumbudur, Tamilnadu, India

·         Bangalore, Karnataka, India

 

 

Wind Farm :

Speciality Product Division - South:

Sri Perumbudur, Chennai – 602 105, Tamilnadu, India

 

 

DIRECTORS

 

As on 31.03.2012

 

Name                    

Mr. B.K. Jhawar

Designation

Chairman Emeritus

 

 

Name :

Mr. Prashant Jhawar

Designation :

Chairman

 

 

Name

Mr. Rajeev Jhawar

Designation

Managing Director

Date of Birth/Age :

46 Years

Qualification :

B. Com (Hons)

Experience :

26 Years

Date of Appointment :

01.10.1997

 

 

Name

Dr. Vijay Sharma

Designation

Joint Managing Director [Steel Business]

 

 

Name :

Mr. Brij K Jhawar

Designation :

Director

 

 

Name :

Mr. A K Chaudhri

Designation :

Director

 

 

Name :

Mr. S Singhal

Designation :

Director

 

 

Name :

Mrs. Ramni Nirula

Designation :

Director

 

 

Name :

Mr. G N Bajpai

Designation :

Director

 

 

Name :

Mr. Nripendra Misra

Designation :

Director

 

 

Name

Mr. Jitender Balakrishnan

Designation

Director

 

 

Name

Dr. Vijay Sharma

Designation

Executive Director and Chief Executive [Steel Business]

Date of Birth/Age :

56 Years

Qualification :

B. Tech, M.Sc, PGD in BA Phd (Metallurgical Engineering)

Experience :

34 Years

Date of Appointment :

06.01.2010

 

 

Name :

Mr. Pravin Kumar Jain

Designation :

Executive Director and Chief Executive [Wire and Wire Ropes Business]

Date of Birth/Age :

57 Years

Qualification :

B. Tech, MBA

Experience :

34 Years

Date of Appointment :

01.09.2009

 

 

KEY EXECUTIVES

 

INDIA

Name :

Mr. A.K. Somani

Designation :

Chief Financial Officer and Company Secretary

Date of Birth/Age :

57 Years

Qualification :

B. Com., C.A. C.S

Experience :

32 Years

Date of Appointment :

03.04.1990

 

 

Name :

Mr. Sanjay Nath

Designation :

Senior Vice President [Sales and Marketing]

 

 

Name :

Mr. D.J. Basu

Designation :

Senior Vice President [HR]

 

 

Name :

Mr. S.K. Jala

Designation :

Senior Vice President [IT]

 

 

Name :

Mr. Rajesh Sharma

Designation :

Senior Vice President [Wire and Wire Rope Division]

 

 

Name :

Mr. Sunil Gupta

Designation :

Senior Vice President [Commercial]

 

 

Name :

Mr. Anjan Kumar Dey

Designation :

Senior Vice President [Iron Making]

 

 

Name :

Mr. Malay Kumar De

Designation :

Senior Vice President [Metallurgical Services]

 

 

Name :

Mr. Arvind Kapoor

Designation :

Vice President [Marketing]

 

 

EUROPE

Name :

Mr. S. Jodhawat

Designation :

Chief Executive Officer – Usha MartinInternational Limited

 

 

Name :

Mr. Paul Scutt

Designation :

Managing Director – European Marine and Management

 

 

Name :

Mr. Len Allen

Designation :

Director Operation – Brunton Shaw UK

 

 

Name :

Mr. Henk Steenbergen

Designation :

General Manager – De Ruiter Staalkabel B.V

 

 

SOUTH EAST ASIA

Name :

Mr. Amogh Sharma

Designation :

Managing Director – Usha Siam Steel Industries Public Company Limited

 

 

Name :

Mr. Tapas Ganguly

Designation :

Chief Executive Officer – Usha Martin Singapore Pte Limited

 

 

MIDDLE EAST

Name :

Mr. S. Mazumder

Designation :

Sr. DGM, Sales and Marketing – Brunton Wold Wire Ropes, Fzco.

 

 

UNITED STATES OF AMERICA

Name :

Mr. Sunil Sadani

Designation :

Vice President – Usha Martin Americas Inc.

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

7525250

2.66

http://www.bseindia.com/include/images/clear.gifBodies Corporate

85199935

30.14

http://www.bseindia.com/include/images/clear.gifSub Total

92725185

32.80

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

33336135

11.79

http://www.bseindia.com/include/images/clear.gifSub Total

33336135

11.79

Total shareholding of Promoter and Promoter Group (A)

126061320

44.59

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

38271014

13.54

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

70740

0.03

http://www.bseindia.com/include/images/clear.gifInsurance Companies

22351259

7.91

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

36796924

13.02

http://www.bseindia.com/include/images/clear.gifSub Total

97489937

34.49

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

25600930

9.06

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 million

25116032

8.88

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 million

8423846

2.98

http://www.bseindia.com/include/images/clear.gifSub Total

59140808

20.92

Total Public shareholding (B)

156630745

55.41

Total (A)+(B)

282692065

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

14640125

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

7409590

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

22049715

0.00

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

304741780

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacture of wire, wire ropes, steel with captive mineral linkages of iron ore and coal and cables.

 

 

Products :

Products Description

 

Item Code No.

Wire Ropes, Strands Including Locked Coil, Wire Rope

7312

Wires

7217

Wire Rods

7213

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity $

Actual Production

a. Wire Rods

M.T.

400,000

318,567

b. Bars

M.T.

323,000

173,048

c. Billets

M.T.

1,000,000

500,140

d. Pig Iron/Hot Metal

M.T.

570,000

292,994

e. Sponge Iron

M.T.

300,000

237,209

f. Rolled Products

M.T.

72,300

42,581

g. Wire Ropes, Strands including Locked Coil Wire Ropes

M.T.

129,708

104,004

h. Wires

M.T.

111,060

80,087

i. Bright Bar

M.T.

25,480

19,278

Conveyor Cord

M.T.

3,600

1,786

j. Wire Drawing and Allied Machines

Nos.

60

12

k. Hydraulic Machines including Presses

Pcs.

100

60

n. Blocks, Dies etc.

Sets

400

19

Ferrules, Slings, Fitting

Pcs.

700,000

116,057

l. Equipment for Prestressed Concrete System

Pcs.

6,500,000

1,892,326

m. Jointing Equipment

Pcs.

100,000

20,637

 

NOTES:

 

·         $ As certified by the Management.

·         a Including internal consumption 192,229 M.T.

·         b Including internal consumption 16,006 M.T.; excluding trial production Nil M.T

·         c Including internal consumption 503,410 M.T. and purchase (net) 6,895 M.T.; excluding trial production Nil M.T.

·         d Including internal consumption 312,286 M.T. excluding trial run production 45,669 M.T.

·         e Including internal consumption 240,123 M.T.; excluding trial production Nil M.T.

·         f Including internal consumption 99 M.T.

·         g Including internal consumption 3,100 M.T.

·         h including internal consumption 7,447 M.T.

·         i Including internal consumption 2,977 M.T.; excluding trial production Nil M.T.

·         j Including internal consumption 6 Nos.

·         k Including internal consumption Nil Sets.

·         l Including internal consumption 16,277 Pcs.

·         m Including internal consumption Nil Pcs.

·         n Including internal consumption 2 Sets

 

GENERAL INFORMATION

 

No. of Employees :

8000 (Approximately)

 

 

Bankers :

·         State Bank of India

·         Canara Bank, Kolkata, West Bengal, India

·         ICICI Bank Limited

·         Induslnd Bank Limited

·         Allahabad Bank, Kolkata, West Bengal, India

·         The Hongkong and Shanghai Banking Corporation Limited, Kolkata, West Bengal, India

·         HDFC Bank Limited

·         BNP Paribas

·         American Express Bank Limited

·         The Bank of Tokyo Limited, Kolkata, West Bengal, India

·         Axis Bank Limited

·         Export Import Bank of India

 

 

Facilities :

Secured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Term Loans

 

 

From Financial Institution (Rupee Loans)

4500.000

2500.000

From Banks

 

 

Rupee Loans

5800.000

5382.400

Foreign Currency Loans

9410.900

5312.600

Working Capital Loans from Banks

[Working Capital Loans from Banks are secured by hypothecation of all current assets of the Company. Further such loans from Banks are also secured by charge on certain immovable properties, subject to prior charges in favour of Financial Institutions and Banks created/to be created in respect of any existing/future financial assistance/accommodation which has been/may be obtained by the Company.]

2030.200

1503.700

TOTAL

21741.100

14698.700

 

NOTE:

 

Nature of Security and terms of repayment for secured borrowings :

 

Nature of Security

 

All Term Loans from Financial Institution and Banks are secured by way of Joint Equitable Mortgage by deposit of title deeds of certain immovable properties and hypothecation over movable assets of the Company both present and future subject to prior charges of the Company’s Bankers on specified movable assets for Working Capital requirements.

 

Terms of Repayment

 

(a) Rupee term loan from a Financial Institution amounting to Rs.2500.000 Millions (31st March, 2011:Rs. 25,000 Millions) is repayable in eighteen quarterly installments commencing from 20th June 2013 to 20th September 2017. Interest is payable on monthly basis at One Year Gsec plus 2.85% p.a.

 

(b) Rupee term loan from a Financial Institution amounting to Rs.2000.000 Millions (31st March, 2011:Rs. Nil) is repayable in eighteen quarterly installments commencing from 20th June 2014 to 20th September 2018. Interest is payable on monthly basis at One Year Gsec plus 3.25% p.a.

 

(c) Rupee Term Loan from a Bank amounting to Rs.1000.000 Millions (31st March, 2011: Rs.1000.000 Millions) is repayable in twenty quarterly installments commencing from 1st April 2013 to 1st January 2018. Interest is payable on monthly basis at Base rate of the Bank plus 2% p.a.

 

(d) Rupee term loan from a Bank amounting to Rs. 800.000 Millions (31st March, 2011:Rs. 960.000 Millions) is repayable in nineteen quarterly installments from 29th April 2013 to 29th October 2017. Interest is payable on monthly basis at Base rate of the Bank plus 1.75% p.a.

 

(e) Rupee term loan from a Bank amounting to Rs. 2000.000 Millions (31st March, 2011:Rs. 2400.000 Millions) is repayable in eleven quarterly installments from 30th June 2013 to 31st December 2015. Interest is payable on monthly basis at Base rate of the Bank plus 2.15% p.a.

 

(f) Rupee term loan from a Bank amounting to Rs.2000.000 Millions (31st March, 2011:Rs. Nil) is repayable in twelve quarterly installments commencing from 31st December 2013 to 30th September 2016. Interest is payable on monthly basis at Base rate of the Bank plus 1.15% p.a.

 

(g) Rupee term loans from Banks aggregating to Rs. Nil (31st March, 2011 Rs. 1022.400 Millions) carrying interest at Base rate of the banks plus 2.25% p.a. have been prepaid during the year.

 

(h) Foreign Currency term loan from a Bank amounting to Rs. 6358.800 (31st March, 2011:Rs.1113.800) is repayable in ten equal quarterly installments commencing from 30th October 2015 to 31st January 2018. Interest is payable on quarterly basis at three months USD LIBOR plus 2.85% p.a.

 

(i) Foreign Currency term loan from a Bank amounting to Rs. 1271.700 Millions (31st March, 2011:Rs.2004.800 Millions) is repayable in five equal quarterly installments from 16th May 2013 to 16th May 2014. Interest is payable on half yearly basis at six months JPY LIBOR plus 1.40% p.a.

 

(j) Foreign Currency term loan from a Bank amounting to Rs. 1780.400 Millions (31st March, 2011:Rs. 1559.200 Millions) is repayable in five equal quarterly installments commencing from 16th August 2013 to 16th August 2014. Interest is payable on half yearly basis at six months JPY LIBOR plus 2% p.a.

 

(k) Foreign Currency term loan from a Bank amounting to Rs. Nil (31st March, 2011:Rs. 233.900 Millions) is repayable in two equal installments on 15th August, 2012 and 15th February, 2013 respectively. Interest is payable on half yearly basis at six months USD LIBOR plus 1.50% p.a.

 

(l) Foreign Currency term loan from a Bank amounting to Rs. Nil (31st March, 2011:Rs. 400.900 Millions) is repayable on 5th June, 2012 and 3rd July, 2012 respectively. Interest is payable on monthly basis at six months USD LIBOR plus 1.50% p.a. 

 

(m) Outstanding balances of loans as indicated in (a) to (l) above are exclusive of current maturities of such loans.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar,

Kolkata – 700 091, West Bengal, India

 

 

Subsidiaries :

·         Usha Martin International Limited (UMIL)

·         Usha Martin Americas Inc. (UMAI)

·         Usha Martin UK Limited (UMUK)

·         UMICOR Africa (Pty) Limited (UMICOR)

·         Usha Martin Vietnam Company Limited (UMVCL)

·         Usha Martin Australia Pty Limited (UMAUS)

·         European Management and Marine Corporation Limited (EMMC)

·         EMM Caspian Limited (EMM Caspian)

·         Usha Siam Steel Industries Public Company Limited (USSIL)

·         Brunton Shaw UK Limited (BSUK)

·         Usha Martin Singapore Pte. Limited (UMSPL)

·         Brunton Wolf Wire Ropes FZCO (BWWR)

·         P. T. Usha Martin Indonesia (PTUMI)

·         De Ruiter Staalkabel BV (De Ruiter)

·         UM Cables Limited (UMCL)

·         Usha Martin Power and Resources Limited (UMPRL)

·         Bharat Minex Private Limited (BMPL)

 

 

Joint Venture :

·         Gustav Wolf Speciality Cords Limited (GWSCL)

·         Pengg Usha Martin Wires Private Limited (PUMWPL)

·         CCL Usha Martin Stressing Systems Limited (CCLUMSSL)

·         Dove Airlines Private Limited (DAPL)

 

 

Other Related Parties :

UMI Special Steel Limited (UMISSL) - (Under Liquidation)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

500000000

Equity Shares

Re.1/- each

Rs.500.000 Millions

10000000

Redeemable Cumulative Preferences Shares

Rs.50/- each

Rs.500.000 Millions

 

Total

 

Rs.1000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

304741780

Equity Shares

Re.1/- each

Rs.304.700 Millions

 

Add: Shares Forfeited

 

Rs.0.700 Million

 

Total

 

Rs.305.400 Millions

 

NOTE:

 

(a) 8019495 Equity Shares are represented by Global Depository Receipts (GDRs) out of above paid up Equity Shares.

 

(b) Rights, preference and restrictions attached to shares issued:

 

The Company has only one class of equity shares having a par value of Re.1 per share. Each shareholder is eligible for one vote per share held (except in case of GDRs). The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

(c) Details of shares held by shareholders holding more than 5 % of the aggregate shares in the Company.

 

PARTICULAR

 

As on 31.03.2012

UMIL Shares and Stock Broking Services Limited

36673238

[12.03%]

HSBC Global Investment Funds Mauritius Limited

18694789

[6.13%]

Usha Martin Ventures Limited

19822588

[6.50%]

Peterhouse Investments Limited

18971455

[6.23%]

Usha Martin Finance Limited (Merged with PIIL)

--

--

Peterhouse Investments India Limited (PIIL)

20767330

[6.81%]

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

305.400

305.400

305.420

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

15010.000

15265.100

14691.498

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

15315.400

15570.500

14996.918

LOAN FUNDS

 

 

 

1] Secured Loans

21741.100

14698.700

8401.184

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

21741.100

14698.700

8401.184

DEFERRED TAX LIABILITIES

2038.400

2148.800

1691.017

 

 

 

 

TOTAL

39094.900

32418.000

25089.119

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

29088.900

27475.200

22491.433

Capital work-in-progress

7624.900

3824.800

6083.947

 

 

 

 

INVESTMENT

1869.500

1869.500

1869.513

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
12127.400

9626.600
6721.045

 

Sundry Debtors
3597.100

2834.800
1674.942

 

Cash & Bank Balances
2531.800

1129.900
102.974

 

Other Current Assets
687.700

315.100
338.620

 

Loans & Advances
3419.100

2610.600
2505.980

Total Current Assets
22363.100

16517.000

11343.561

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
13685.100

9379.100
3034.791

 

Other Current Liabilities
7931.100

7269.500
13222.759

 

Provisions
235.300

619.900
441.785

Total Current Liabilities
21851.500

17268.500
16699.335

Net Current Assets
511.600

(751.500)
(5355.774)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

39094.900

32418.000

25089.119

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

28368.900

25247.100

18503.855

 

 

Other Income

426.400

488.100

201.639

 

 

TOTAL                                     (A)

28795.300

25735.200

18705.494

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

13140.000

10690.500

 

 

Purchases of Stock-in-trade

35.400

37.600

 

 

 

Employees Benefits Expense

1520.900

1332.800

 

 

 

Other Expenses

12403.000

10029.700

15110.606

 

 

Departmental Orders for own consumption

(35.000)

(30.400)

 

 

 

Changes in inventories of Finished Goods, Work-in-progress, Stock-in-trade and Scrap

(2357.000)

(1365.500)

 

 

 

TOTAL                                     (B)

24707.300

20694.700

15110.606

 

 

 

 

 

Less

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

4088.000

5040.500

3594.888

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2548.500

1822.600

1130.336

 

 

 

 

 

 

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

1539.500

3217.900

2464.552

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1977.600

1764.900

1072.517

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

(438.100)

1453.000

1392.035

 

 

 

 

 

Less

TAX                                                                  (H)

(110.400)

457.700

469.964

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(327.700)

995.300

922.071

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

554.400

411.100

343.588

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

500.000

500.000

 

 

Proposed Dividend on Equity Shares and Tax Thereon

0.000

352.000

304.742

 

 

Provision for Dividend Tax

0.000

0.000

49.817

 

BALANCE CARRIED TO THE B/S

226.700

554.400

411.100

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods (On FOB basis)

4681.400

3956.100

4554.381

 

 

Interest Received

5.700

5.000

12.590

 

 

Service Charges

0.400

0.300

0.153

 

 

Dividend

19.900

165.000

25.656

 

 

Sale of certified emission reduction (carbon credit)

0.000

15.500

38.573

 

TOTAL EARNINGS

4707.400

4141.900

4631.353

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

5363.300

3936.800

2613.732

 

 

Components and Spare Parts

360.400

491.800

230.349

 

 

Capital Goods

419.300

486.500

686.604

 

TOTAL IMPORTS

6143.000

4915.100

3530.685

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.08)

3.27

3.53

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

7284.800

7747.200

7397.300

Total Expenditure

6357.200

6323.900

6028.800

PBIDT (Excl OI)

927.600

1423.300

1368.500

Other Income

187.500

21.500

138.500

Operating Profit

1115.100

1444.800

1507.000

Interest

718.400

782.700

880.500

Exceptional Items

0.000

0.000

0.000

PBDT

396.700

662.100

626.500

Depreciation

568.100

561.100

586.700

Profit Before Tax

(171.400)

101.000

39.800

Tax

(62.800)

36.300

15.400

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

(108.600)

64.700

24.400

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

(108.600)

64.700

24.400

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
(1.14)

3.87

4.93

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(1.54)

5.75

7.52

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(0.85)

3.30

4.11

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.03)

0.09

0.09

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
1.42

0.94

0.56

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.02

0.96

0.68

 

 

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

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

REVIEW OF OPERATIONS:

 

During the financial year 2011-12, the Company has faced challenges of high cost of inputs which could not be passed on to customers due to difficult business environment. In addition, Usha Siam Steel Industries Public Company Limited, a subsidiary of the Company remained out of operation for sizeable part in second half of year due to unprecedented floods in Thailand.

 

As a result, the Company’s operating profit reduced to Rs.4977.600 Millions on consolidated basis and Rs.4088.000 Millions on standalone basis from Rs.5950.300 Millions and Rs.5040.500 Millions respectively. The impact on profit before and after tax was even more severe. On consolidated basis, the Company could achieve profit after tax and minority interest of Rs.36.100 Millions against Rs.1370.300 Millions. in previous year. On standalone basis, there was loss after tax of Rs.327.700 Millions against profit after tax of Rs.995.300 Millions. in the previous year.

 

The turnover, however, increased to Rs.33608.200 Millions on consolidated basis and Rs.28368.900 Millions on standalone basis during the year against Rs.30445.900 Millions and Rs.25247.100 Millions respectively in the previous year.

 

PROJECTS:

 

The capex plans undertaken by the Company to further perpetuate the advantage of cost competiveness are under various stages of implementation and are expected to be commissioned in phases over FY 2012-13 and 2013-14. The projects under implementation include pelletisation plant, coke oven, 2 DRI plants and Waste Heat based 65 MW Captive Power plants and other related projects. Upon completion, these projects would significantly strengthen cost base, which in turn would enhance profitability and competitiveness.

 

BUSINESS OUTLOOK:

 

The business conditions continue to remain sub-optimal amidst global and domestic challenges. While in inflationary economy, costs may rise further, uncertain business environment (which disturbs chain of economic activities) reduces ability to resist against such adverse pressures. However, the Company believes that with the hope of Government taking suitable initiatives to restore confidence and environment conducive for growth, the inherent advantages of business model, would enable the Company to improve its performance in FY 12-13 and subsequent years.

 

SUBSIDIARIES:

 

The international subsidiaries provide significant synergy and support to the Company’s business and performance. All the operating subsidiaries of the Company have continued to perform reasonably well during the year.

 

The facilities of Usha Siam Steel Industries Public Company Limited [USSIL], a key subsidiary of the Company became in-operational due to unprecedented floods in Thailand in October’11 which inundated all major industrial areas of Thailand for over 2 months. The Navanakorn Industrial Area, where USSIL’s facilities are located, had water accumulation of more than 6 ft. The industrial activities and other operations suffered for over 4 months. After receding of water, the restoration of normalcy in industrial activities is still under way in other parts, USSIL could start partial operations in February’12. Full level of activities are expected to be resumed by second quarter of FY 12-13. The insurance policy taken by USSIL covers consequential losses to assets and profits out of flood and other perils. The Statement under Section 212 of the Companies Act, 1956 in respect of subsidiaries of the Company is given separately.

 

JOINT VENTURES:

 

All the key joint ventures formed by the Company namely, Pengg Usha Martin Wires Private Limited, Gustav Wolf Specialty Cords Limited and Dove Airlines Private Limited, have done reasonably well in the year.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

ECONOMIC OVERVIEW:

 

The global and domestic economic conditions in financial year 2011-12 remained difficult due to various factors. While US economy was still struggling to come back on path of recovery, unprecedented sovereign debt crisis in some of European countries hugely impacted business conditions not only in Europe but other countries as well. Significant tightening, caution and reduced level of business confidence continue to put downward pressure on growth prospects around the world.

 

The Indian economy had its own challenges of tackling higher inflation, high fiscal deficit and various other factors. European debt crisis compounded these challenges. As a result in FY 11-12 domestic business continued to be impacted by higher interest rates, higher volatility in foreign exchange with depreciating rupee against major global currencies and moderated GDP growth of around 7% against 8.6% in previous year. The reduction in growth rate in industry segment was even more severe at about 4.5% against 8.2%.

 

The Index of Industrial Production has dropped to 3.5% during the period of April 11 to February 12 from 8.1% in corresponding period of previous year. During this period, mining and manufacturing sectors have suffered the most with growth remaining (-) 2.1% and 3.7% against 5.8% and 8.7% respectively.

 

COMPANY OVERVIEW:

 

BUSINESS CONFIGURATION:

 

Usha Martin is an integrated speciality steel and value added steel products Company, having business locations across various parts of the world under itself, subsidiaries and/or joint ventures.

 

The Company has state-of-art integrated steel plant near Jamshedpur (Jharkhand) and a rolling mill at Agra (Uttar Pradesh) producing wide range and sizes of specialty steel wire rods and bars, with captive iron ore and coal mines in Jharkhand. The other/auxiliary products include DRI, hot metal, pig iron, sinter, oxygen and power generation, primarily for captive consumption. The coke oven and pelletisation plants are also being set up. The Company is one of the largest producers of specialty steel in India, catering to requirements for automotive, railways, general engineering and construction sectors.

 

The steel products manufactured at Jamshedpur facility are sold in market to the extent of 60% and balance 40% are for in-house production of value added products such as wire ropes, wires, strands and bright bars at Ranchi, Hoshiarpur, Chennai and Bangkok. The rolled products manufactured at Agra are sold in domestic market for use in automotive and construction sectors.

 

In steel wire rope manufacturing, the Company is the largest in India and one of the largest in the world. Its manufacturing plants are located at Ranchi and Hoshiarpur in India, and in Thailand, Dubai and the UK overseas. The wide range of wire ropes produced by the Company has applications in mining, elevators, cranes, bridges, infra-structure, construction, fishing and variety of general purposes. Besides wire ropes, other value added products includes cords, strands, wires, bright bars and oil tempered wires. The Company also has a plant at Chennai to manufacture bright bars.

 

The global business of wire rope is supported by marketing, distribution and rigging facilities in various locations in the USA, Europe and south-east Asia. The Company also provides products and solutions for oil and gas sectors for anchoring, drilling and mooring applications out of facilities at Aberdeen in UK and Randaberg in Norway. The Company has an in-house machinery manufacturing facility at Ranchi to cater to captive engineering requirements as well as external demand in India and export markets. Through one of its wholly owned subsidiary in India, the Company also manufactures a wide range of telecommunication cables meant for variety of applications and caters to requirements of domestic and export markets.  The strategy of integration places the Company distinctly in a unique position by combining both ends of value creation, from mining to high value wire ropes and further providing end use solutions on its key product applications. In addition to providing benefits of quality, consistency and self sufficiency for principal raw materials, it provides captive markets for sizeable portion of finished products, thereby de-risking both the businesses. And it enables the Company to aspire to become truly competitive across entire chain of chosen products.

 

STEEL BUSINESS:

 

BUSINESS ENVIRONMENT:

 

The significant drop in Index of Industrial Production for manufacturing sector, including steel, and mining could be attributed to following which were also responsible for sub-optimal performance of Steel business of the Company during the year:

 

·         Inflation, which remained at elevated level through out the financial year, resulting in high interest rates and uncertain economic conditions due to European crisis and other external factors were broadly responsible for cautious and moderated growth in automotive sector where large part of specialty steel manufactured by the Company is consumed. Therefore, the Company could not achieve volume growth during the year.

 

·         Construction sector also got affected due to higher interest rates. This impacted Company’s business of construction steel rolled at its rolling mill at Agra.

 

·         Coking coal, a key input for manufacturing iron and steel, is imported and converted into Coke. The cycle time between pricing of coking coal and selling of finished steel is about six months. The adverse market conditions during this cycle time, which also forced prices of coking coal to reduce, restricted ability to pass on higher input cost to customers.

 

·         The significant depreciation of INR against US $ and other global currencies, along with higher hedging costs, also resulted in higher cost of inputs, particularly coking coal as it is largely imported.

 

·         Apart from extended monsoon in many parts of the country, excessive rainfall in the state of Jharkhand, where the Company’s mines are located, also disrupted mining operations of the Company. As a result part of coal required for DRI production had to be bought at higher prices from the market.

 

·         The inconsistent and erratic supply of linkage coal for captive power generation by Coal India Limited during the year caused significant shortage of power generation.

 

The Company also had to source coal from market at higher prices due to non availability of linkage coal for six months during the year.  The price of liquid fuel kept rising in the current financial year too, due to combined effect of international prices, value of INR and inflationary economy.

 

KEY ACHIEVEMENTS:

 

·         However, the Company had the following focus areas and achievements during the year:

 

·         Achieved highest ever production of hot metal, steel and rolled products,

 

·         Sinter plant which was commissioned in September, 2010 achieved 80% capacity utilization in the first full year of operation,

 

·         Commissioned Hot Blast Stoves in Blast Furnace 1,

 

·         Optimized consumption of coke by increasing use of PCI in production of hot metal,

 

·         Commissioned Bar Mill at Agra to produce speciality steel Bars,

 

·         Achieved 530 days of campaign life in DRI 3 Kiln,

 

·         Obtained further approvals from major OEMs for bloom and bar products, and

 

·         Addressed structural issues of improving equipment health, process robustness, correcting missing links, skill development and TPM.

 

OPERATIONAL HIGHLIGHTS:

 

Under the circumstances, the Steel business could achieve higher turnover of Rs.22114.100 Millions in the current financial year against Rs. 19813.800 Millions in the previous year, up by 11.6%. The operating profit and margins, however, reduced to Rs. 2486.500 Millions at 11.2% during the year against Rs.3386.100 Millions. at 17.1% in the previous year.

 

Share of Steel business stood at 63.4% of the Company’s gross level of activity and 53.8% of reported gross turnover in the current financial year.

 

PROJECTS:

 

The Company has undertaken implementation of various cost optimization projects to further strengthen advantage of cost competiveness. The projects under implementation at Jamshedpur include beneficiation and pellet plant, coke oven plant, two nos. of DRI plants; waste heat based captive power plants, oxygen plant and continuous casting machine. These projects will help the Company to increase productivity, improve quality and optimize the manufacturing cost. These projects are in various stages of implementation and are scheduled to be commissioned in phases in FY 13 and FY 14.

 

WIRE ROPES AND SPECIALTY PRODUCTS BUSINESS:

 

In addition to weak business environment in general, the following factors further influenced business sentiments and performance of value added products business of the Company:

 

·         While growth momentum in advanced global economies had remained subdued during the year, European crisis compounded the same. However due to aggressive market expansion exports grew by 42%. Margins remained under pressure due to severe competition, and

 

·         The devastating floods in Thailand crippled business in 2nd half of financial year in the region.

 

 

On standalone basis, the Wire and Wire Ropes business achieved turnover of Rs.13339.500 Millions in the current financial year against Rs. 11901.500 Millions in previous year, higher by 12.0%. The operating profit and margins, however, reduced to Rs.1823.800 Millions at 13.7% during the year against Rs.1935.900 Millions at 16.3% in previous year.

 

FOCUS AREAS AND NEW INITIATIVES:

 

·         After successful development of PVF mining rope with improved quality, the Company has been able to meet extended life expectancy of this rope desired by various mining companies internationally. This will open new doors for growth in business.

 

·         Development of High Tensile Offshore Mooring Ropes, which are used by the offshore oil and gas industries to work under extreme environments, is expected to open new opportunities in 2012-13.

 

·         The Company has tied up with a leading European bridge designing and Execution Company for development and supply of special PE coated LRPC strand.

 

INTERNATIONAL BUSINESS:

 

The Company enjoys a wide international presence through manufacturing and distribution subsidiaries located in different parts of the world. The Company’s international business accounted for 17.7% of its consolidated gross activity level. Gross level of activities of overseas subsidiaries has increased 6.1% from Rs. 8208.500 Millions. in 2010-11 to Rs. 8708.300 Millions. in 2011-12.

 

USHA MARTIN INTERNATIONAL LIMITED [UMIL]:

 

UMIL enjoys a presence in the UK and parts of Europe through it’s wholly owned subsidiaries, namely:

 

a. Usha Martin UK Limited, which comprises manufacturing distribution and end use solutions wire ropes to offshore oil and gas sectors, and

 

b. De Reuiter Staalkabel B.V. Netherlands, which has distribution facilities for wire ropes.

 

The consolidated turnover of UMIL was GBP 43.7 Mn in 2011-12 as against GBP 41.0 Mn in 2010-11. UMIL reported a consolidated net profit of GBP 3.6 Mn as against GBP 2.6 Mn in the previous year. UMIL is taking further initiatives to expand into Europe and Russian markets.

 

USHA MARTIN AMERICAS INC [UMAI]:

 

During the year, UMAI reported a turnover and profit after tax of US$ 17.2 Mn and US$ 0.9 Mn respectively as against US$ 15.2 Mn and US$ 1.1 Mn respectively in the previous year.

 

BRUNTON WOLF WIRE ROPE FZCO [BWWR]:

 

BWWR, a joint venture with Gustav Wolf of Germany, reported a turnover and profit after tax of US$ 23.4 Mn and US$ 1.5 Mn respectively in 2011-12 as against US$ 18.8 Mn and US$ 1.5 Mn respectively in the previous year. Number of new steps have been taken to expand further into African markets.

 

USHA SIAM STEEL INDUSTRIES PUBLIC COMPANY LIMITED [USSIL]:

 

USSIL became in operational due to unprecedented floods in Thailand in October 11 which inundated all major industrial areas of Thailand for over 2 months. The Navanakorn Industrial Area, where USSIL’s facilities are located, had water accumulation of more than 6 ft height. Industrial activities suffered for over 4 months. Though USSIL could start partial operations in February’ 2012 after receding of water, the restoration of normalcy in industrial activities are still under way in other parts. The damages to property, assets and loss of profit (for a period of one year from date of floods) were covered under insurance policy taken by USSIL.

 

The operations of USSIL, in which the Company holds 97.85% of equity (by itself and through Usha Martin Singapore Pte Limited), achieved a turnover of Thai Baht 1,043 Mn during the year as against Thai Baht 1,628 Mn in the previous year. It reported a net profit of Thai Baht 35 Mn as against Thai Baht 86 Mn in the previous year. The production is being gradually increased and is expected to reach normal level by 2nd quarter of the next financial year.

 

USHA MARTIN SINGAPORE PTE LIMITED [UMSPL]:

 

UMSPL together with its wholly owned subsidiaries (Usha Martin Australia Pty Limited, Usha Martin Vietnam Company Limited and PT Usha Martin Indonesia), achieved a consolidated turnover of US$ 36.6 Mn and net profit of US$ 1.7 Mn during the year as against US$ 30.0 Mn and net profit of US$ 1.7 Mn respectively in the previous year.

 

CABLE BUSINESS:

 

U M Cables Limited (UMCL), a wholly owned Indian subsidiary of the Company, engaged in business of telecommunication cables achieved turnover of Rs. 10910.000 Millions against Rs. 850.000 Millions. in the previous year. The net profit for the year was higher at Rs. 30.000 Millions as against Rs. 20.00 Millions. in FY 2010-11.

 

FINANCIAL DISCUSSION:

 

During the year, consolidated turnover of the Company stood at Rs.33608.200 Millions which is 10.3% higher than Rs.30445.900 Millions in the previous year. On standalone basis, the Company’s turnover increased to Rs.28368.900 Millions in the current financial year against Rs.25247.100 Millions in the previous year, up by 12.3%.

 

The operating profit achieved by the Company on consolidated basis was Rs. 4977.600 Millions., being 14.8% of the reported turnover against Rs. 5950.300 Millions., being 19.5% in previous year. On standalone basis, the operating profit was at Rs. 4088.000 Millions., being 14.4% of the reported turnover as against Rs. 5040.500 Millions., being 20.0% in previous year. Domestic and export sales was maintained at 83.0% and 17.0% of net turnover respectively. The increase in prices of key inputs such as coking coal and sluggish business conditions for Company’s products particularly in international markets reduced operating margins.

 

FOREX MANAGEMENT:

 

The European debt crisis triggered depreciation in value of INR against global currencies. During the period from August’ 11 to December’ 11, value of rupee against US $ declined from 44 to 53. At the same time, hedging cost of FCY liabilities also remained at higher levels during most of the period in current financial year. This had a sharp negative effect on the Company’s operations and profitability. On the net import liabilities the Company suffered foreign currency loss of Rs. 260.700 Millions, after considering derivative gains of Rs.157.100 Millions on long term foreign currency loans. The Ministry of Corporate Affairs issued notification modifying AS 11 vide which companies were allowed an option to account for changes in valuation of long term capex loans in respective fixed assets. By exercising this option the Company accounted for effect of rupee depreciation on FCY loans, amounting to Rs. 1414.000 Millions., in the fixed assets. The value of FCY loans as on 31st March, 2012 thus enhanced accordingly.

 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

A) Claims against the Company not acknowledged as debt

 

 

Disputed Tax and Duty for which the Company has preferred appeal before appropriate authorities.

 

 

Demand for Income Tax Matters

194.000

194.100

Demand for Sales Tax

46.500

8.400

Demand for Excise Duty and Service Tax

581.800

443.900

Demand for Customs Duty

57.500

61.600

Outstanding Labour Disputes

3.100

3.400

Disputed Electricity duty rebate matters which is subjudice

50.400

0.000

B) Bills discounted with Banks including against Letter of Credit

1268.200

613.800

TOTAL

2201.500

1325.200

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2012

(Rs. in millions)

 

 

Particulars

Quarter Ended

Nine Months Ended

31.12.2012

30.09.2012

31.12.2012

(Unaudited)

(Unaudited)

(Unaudited)

1. Income from Operations

 

 

 

(a) Net Sales / Income from Operations (Net of excise duty)

7397.300

7747.200

22429.300

(b) Other Operating Income

-

-

-

Total Income from Operations (net)

7397.300

7747.200

22429.300

2. Expenses

 

 

 

a. Cost of Materials consumed

2878.800

2828.700

8598.500

b. Purchase of stock-in-trade

8.900

6.200

24.300

c. Changes in inventories of finished goods, work-in-progress, stock-in-trade and scrap

(621.000)

254.200

(977.300)

d. Power and Fuel

1053.100

979.900

3107.600

e. Consumption of Stores and Spare Parts

520.400

478.300

1606.200

f. Employee Benefits expenses

440.200

435.400

1296.900

g. Depreciation and amortisation expenses

586.700

561.100

1715.900

h. Other Expenses

1748.400

1341.200

5053.700

Total Expenses

6615.500

6885.000

20425.800

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

781.800

862.200

2003.500

4. Other Income

138.500

21.500

347.500

5. Profit from ordinary activities before Finance Costs and Exceptional Items (3 + 4)

920.300

883.700

2351.000

6. Finance costs

880.500

782.700

2381.600

7. Profit / (Loss) from ordinary activities after Finance Costs but before Exceptional Items (5 - 6)

39.800

101.000

(30.600)

8. Exceptional Items

-

-

-

9. Profit / (Loss) from Ordinary Activities before Tax (7 ± 8)

39.800

101.000

(30.600)

10. Tax Expense (Note 2 below)

15.400

36.300

(11.100)

11. Net Profit / (Loss) from Ordinary Activities after Tax (9 ± 10)

24.400

64.700

(19.500)

12. Extraordinary Items (net of tax expenses)

-

-

-

13. Net Profit / (Loss) for the period (11 ± 12 )

24.400

64.700

(19.500)

14. Paid-up Equity Share Capital [Face value Re.1 each]

305.400

305.400

305.400

15. Reserves excluding Revaluation Reserve

(as per Balance Sheet of the previous accounting year)

-

-

-

16. Earning Per Share (before / after Extraordinary Items) (of Re.1 each) (not annualised)

 

 

 

Basic

0.08

0.21

(0.06)

Diluted

0.08

0.21

(0.06)

Part II

 

 

 

A. PARTICULARS OF SHAREHOLDING @

 

 

 

1. Public Shareholding - Number of Shares

170165335

170165335

170165335

- Percentage of Shareholding

55.84%

55.84%

55.84%

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)

-

-

-

b) Non-encumbered

 

 

 

- Number of Shares

134576445

134576445

134576445

-           Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100.00%

100.00%

100.00%

-           Percentage of shares (as a % of the total share capital of the company)

44.16%

44.16%

44.16%

 

@ Including Shares held by Custodians and against which Depository Receipts have been issued.

 

Particulars

3 months ended

(31st December, 2012)

B. INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

Nil

Received during the quarter

15

Disposed of during quarter

15

Remaining unresolved at the end of the quarter

Nil

 

Notes:

1.       Figures for the previous periods have been regrouped/rearranged in conformity with revised format for disclosure of Financial Results as per the Listing Agreement with Stock Exchanges.

2.       Tax expense represents deferred tax.

3.       The above results, after review by the audit committee, have been approved and taken on record by the Board of Directors at its meeting held on 30th January, 2013.

4.       The Auditors of the Company have carried out a 'Limited Review1 of the aforesaid results for the period ended 31st December, 2012 in terms of Clause 41 of the Listing Agreement with Stock Exchanges.

 

STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

(Rs. in millions)

 

 

Particulars

Quarter Ended

Nine Months Ended

31.12.2012

30.09.2012

31.12.2012

(Unaudited)

(Unaudited)

(Unaudited)

1. Segment Revenue (Net Sales / Income from Operations)

 

 

 

a.         Steel

5868.600

6035.300

17825.900

b.         Wire and Wire Ropes

3174.600

3511.900

10425.400

c.         Unallocated

-

-

-

 

 

 

 

Total Segment Revenue

9043.200

9547.200

28251.300

 

 

 

 

Less: Inter-Segment Revenue

1645.900

1800.000

5822.000

 

 

 

 

Net Sales / Income from Operations

7397.300

7747.200

22429.300

 

 

 

 

2. Segment Results [Profit(+)/Loss(-) before tax and finance costs from each segment]

 

 

 

 

 

 

a.         Steel

589.000

604.400

1423.000

b.         Wire and Wire Ropes

357.300

359.800

1036.600

c.         Unallocated

--

11.600

11.600

Total

946.300

975.800

2471.200

 

 

 

 

Less:

 

 

 

a.         Finance costs

880.500

782.700

2381.600

b.         Other Un-allocable Expenditure

(Net of Un-allocable Income)

26.000

92.100

120.200

 

 

 

 

Total Profit(+) / Loss(-) before Tax

39.800

101.000

(30.600)

 

 

 

 

3. Capital Employed

(Segment Assets less Segment Liabilities)

 

 

 

a.         Steel

31980.800

32089.800

31980.800

b.         Wire and Wire Ropes

10112.300

10441.800

10112.300

c.         Unallocated

868.500

411.700

868.500

 

 

 

 

Total

42961.600

42943.300

42961.600

 

 

 

 

After considering net unrealised exchange gain/(loss) forming part of exceptional item.

 

 

 

*           Steel

-

-

-

#          Wire and Wire Ropes

-

-

-

@ Other Un-allocable Expenditure

-

-

-

Total

-

-

-

 

FIXED ASSETS:

·         Land and Site Development

·         Freehold

·         Leasehold

·         Mining Lease and Development

·         Buildings

·         Plant and Machinery

·         Railway Sidings

·         Electrical Installation

·         Water Treatment and Supply Plant

·         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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.04

UK Pound

1

Rs.81.80

Euro

1

Rs.71.41 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

58

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

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

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