|
Report Date : |
28.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
WELSPUN MAXSTEEL LIMITED (w.e.f. 01.07.2009) |
|
|
|
|
Formerly Known
As : |
VIKRAM SPONGE IRON LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
27.06.2008 |
|
|
|
|
Com. Reg. No.: |
04-064145 |
|
|
|
|
Capital Investment/
Paid-up Capital: |
Rs.1300.824 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27100GJ2008PLC064145 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Sponge Iron. |
|
|
|
|
No. of
Employees: |
1200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 9800000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of Welspun Corp Limited. It is an established company having a moderate track record. The
profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active.
Payments are slow but correct. The company can be considered for business dealings with some caution. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
SHORT TERM BANK FACILITIES : CARE A3 |
|
Rating Explanation |
Having moderate degree of safety regarding timely payments of
financial obligations it carry higher credit risk. |
|
Date |
April, 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Sanjay Mishra |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-66136499 |
|
Date : |
25.01.2013 |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Web Site: |
|
|
Location: |
Owned |
|
|
|
|
Corporate Office : |
B-Wing, Trade World, 9th Floor, Kamala Mills Compound, Senapati
Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
|
Tel. No.: |
91-22-66136000/24908000 |
|
Fax No.: |
91-22-24908020/24908021 |
|
|
|
|
Plant Office : |
Village Salav, P.O.Welspun Baug, District Raigad -402202, |
|
Tel. No.: |
91-2144 – 260110 to 260119 |
|
Fax No.: |
91-2144-260122 |
|
|
|
|
Regional Office : |
No.1, C-310, Blue Cross Chambers, Bangalore – 560001, Karnataka, India
|
|
E-Mail : |
DIRECTORS
As on 14.09.2012
|
Name : |
Mr. Balkrishan Gopiram Goenka |
|
Designation : |
Director |
|
Address : |
Rocky Isle 46-C, |
|
Date of Birth/Age : |
15.08.1966 |
|
Qualification: |
B.Com |
|
Date of Appointment : |
22.05.2009 |
|
Din No.: |
00270175 |
|
|
|
|
Name : |
Mr. Mintoo Bhandari |
|
Designation : |
Nominee Director |
|
Address : |
35, |
|
Date of Birth/Age : |
19.08.1965 |
|
Qualification: |
Mechanical Engineering from MIT (S.B. ’87) and the |
|
Date of Appointment : |
18.08.2011 |
|
Din No.: |
00054831 |
|
|
|
|
Name : |
Mr. Utsav Baijal |
|
Designation : |
Nominee Director |
|
Address : |
561 ATS Greens, Sector 93A, Expressway Noida 201301 |
|
Date of Birth/Age : |
11.12.1976 |
|
Date of Appointment : |
17.12.2011 |
|
Din No.: |
02592194 |
|
|
|
|
Name : |
Mr. Vijay Singh Bapna |
|
Designation : |
Whole Time Director |
|
Address : |
5th Floor, Room No. 503, Purna, 68-A, Sir Pochkhanwala
Road, Worli, Mumbai – 400025, Maharashtra, India |
|
Date of Birth/Age : |
28.08.1948 |
|
Qualification: |
M.COM, FCA |
|
Experience : |
39 Years |
|
Date of Appointment : |
22.05.2009 |
|
Din No.: |
02599024 |
|
|
|
|
Name : |
Mr. Madhav Vasant Phadke |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. 3, Bldg No. 4B, Pereira Nagar CHS Limited,
Khopat, Behind ST Work Shop Thane- 400601 |
|
Date of Birth/Age : |
19.06.1961 |
|
Qualification: |
BA(Eco), LLM, MLL and LW, Master Degree In Personnel Management, Post Graduate Diploma in Banking |
|
Date of Appointment : |
18.03.2011 |
|
Din No.: |
03432453 |
|
|
|
|
Name : |
Mr. Rajesh Rameshkumar Mandawewala |
|
Designation : |
Additional Director |
|
Address : |
161/171-B, |
|
Date of Birth/Age : |
05.05.1962 |
|
Date of Appointment : |
31.01.2012 |
|
Din No.: |
00007179 |
|
|
|
|
Name : |
Mr. Ram Gopal Sharma |
|
Designation : |
Additional Director |
|
Address : |
E 707 Lok Sarita, Military Road, Marol, Andheri(E) Mumbai -
400059Maharashtra |
|
Date of Birth/Age : |
11.09.1940 |
|
Qualification: |
Commerce Graduate with a Master Degree in Economics |
|
Date of Appointment : |
31.01.2012 |
|
Din No.: |
00026514 |
|
|
|
|
Name : |
Mr. Ashok tandon |
|
Designation : |
Director |
|
Date of Birth: |
13.10.1958 |
|
Qualification: |
B.E. (Mechanical) |
|
Experience: |
32 Years |
|
Date of Appointment : |
01.02.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Jigar Shah |
|
Designation : |
Secretary |
|
Address : |
16, Kirti Kunj, |
|
Date of Birth/Age : |
21.04.1987 |
|
Date of Appointment : |
12.10.2011 |
|
PAN No.: |
BMLPS6577G |
|
|
|
|
Name : |
B L Biyani |
|
Designation : |
President |
|
Date of Birth: |
18.06.1959 |
|
Qualification: |
AICWA, B. Com. |
|
Experience: |
34 Years |
|
Date of Appointment : |
16.01.2010 |
|
|
|
|
Name : |
Mr. P S.Ghose |
|
Designation : |
President and Unit Head |
|
Date of Birth: |
28.01.1952 |
|
Qualification: |
M. Tech |
|
Experience: |
36 Years |
|
Date of Appointment : |
26.10.2009 |
|
|
|
|
Name : |
Mr. Prakash Tatla |
|
Designation : |
President (marketing) |
|
|
|
|
Name : |
Mr. Pradeep Gokhroo |
|
Designation : |
President (Finance and Commerce) |
|
|
|
|
Name : |
Mr. Dilip singh |
|
Designation : |
Senior Vice President (Technical) |
|
|
|
|
Name : |
Mr. Narendra Bhandari |
|
Designation : |
Senior Vice President (Finance ) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 14.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Welspun Corp Limited, |
|
113622058 |
|
Insight Solutions Limited, |
|
16260294 |
|
Grasim Industries Limited, India |
|
198800 |
|
Dwarka Dass Rathi,
|
|
200 |
|
Sanjeev Bafna |
|
200 |
|
Pavan Kumar Jain |
|
200 |
|
Ashok Malu |
|
200 |
|
Hemant Kadel |
|
200 |
|
Ravindra Kastia |
|
200 |
|
Total
|
|
130082352 |
As on 14.09.2012
|
Category |
|
Percentage |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
12.50 |
|
Bodies corporate |
|
87.50 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sponge Iron. |
||||
|
|
|
||||
|
Product: |
|
PRODUCTION STATUS As on 31.03.2012
|
Particulars |
Unit |
31.03.2012 |
|
Installed Capacity |
MT |
450000 |
|
Actual Production |
MT |
264215 |
GENERAL INFORMATION
|
No. of Employees : |
1200 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe
Parade, Mumbai -400005, Maharashtra, India ·
State Bank of ·
Canara Bank, 85, Maker Tower, F Wing, 20th
Floor, Cuff Parade, Mumbai – 400005, Maharashtra, India ·
Union Bank of India Limited, Union Bank Bhavan, 238,
Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Rs.
In Millions
|
|
|
|
|
Financial Institutions: |
IDBI Trusteeship Services Limited, |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
MGB and Company Chartered Accountants |
|
Address : |
Jolly Bhavan No 2, 1st Floor, 7, Opposite Nirmala Niketan
7, New Marine Lines, Churchgate, Mumbai-400020, Maharashtra, India |
|
Pan No.: |
AAAFM5742R |
|
|
|
|
Holding Company : |
Welspun Corp
Limited CIN No.: L27100GJ1995PLC025609 |
|
|
|
|
Fellow Subsidiaries : |
· Welspun Pipes Limited · Welspun Natural Resources Private Limited · Welspun Pipe Inc · Welspun Tradings Limited · Welspun Infratech Limited · Welspun Mauritius Holdings Limited · Welspun Middle East Pipe Company LLC · Welspun Middle East Pipe Coating Company LLC · Welspun Middle East DMCC · Welspun Tubular LLC, · Welspun Global Trade LLC · Welspun Plastics Private Limited · Welspun Projects Limited · Welspun Road Projects Private Limited · Welspun Infra Projects Private Limited · Anjar Road Private Limited · Welspun BOT projects Private Limited · MSK Projects (Himmatnagar Bypass) Private Limited · MSK Projects (Kim Mandavi Corridor) Private Limited · Welspun Energy Transportation Private Limited · Welspun Water Infrastructure Private Limited · ARSS Bus Terminal Private Limited |
|
|
|
|
Related Parties : |
· Remi Metals Gujarat Limited CIN No.:L27100GJ1993PLC020358 · Welspun India Limited CIN No.:L17110GJ1985PLC033271 · Welspun Projects Limited CIN No.:L45201GJ1994PLC023920 · Welspun Logistics Limited CIN No.:U63012MH2006PLC165280 · Welspun Infratech Limited CIN No.:U45400MH2007PLC170350 |
CAPITAL STRUCTURE
After 14.09.2012
Authorised Capital : Rs.2720.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.1338.224 Millions
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
272000000 |
Equity Share |
Rs.10/- each |
Rs.2720.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
130082352 |
Equity Share |
Rs.10/- each |
Rs.1300.824
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1300.824 |
1300.824 |
1300.824 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1137.262 |
1841.355 |
1565.392 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2438.086 |
3142.179 |
2866.216 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8878.214 |
6783.531 |
6069.083 |
|
|
2] Unsecured Loans |
549.780 |
2466.654 |
0.000 |
|
|
TOTAL BORROWING |
9427.994 |
9250.185 |
6069.083 |
|
|
DEFERRED TAX LIABILITIES |
301.865 |
301.865 |
103.225 |
|
|
|
|
|
|
|
|
TOTAL |
12167.945 |
12694.229 |
9038.524 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6399.825 |
5781.371 |
5160.351 |
|
|
Capital work-in-progress |
2093.245 |
4135.943 |
2998.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
29.906 |
1324.479 |
29.906 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2368.616
|
3753.958
|
1753.218 |
|
|
Sundry Debtors |
1472.360
|
2342.962
|
1261.755 |
|
|
Cash & Bank Balances |
511.254
|
8.349
|
80.093 |
|
|
Other Current Assets |
21.531
|
9.240
|
0.000 |
|
|
Loans & Advances |
2308.994
|
765.222
|
424.873 |
|
Total
Current Assets |
6682.755
|
6879.731
|
3519.939 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
2543.328
|
388.006
|
867.403 |
|
|
Other Current Liabilities |
426.095
|
4990.118
|
1747.804 |
|
|
Provisions |
68.363
|
49.171
|
54.865 |
|
Total
Current Liabilities |
3037.786
|
5427.295
|
2670.072 |
|
|
Net Current Assets |
3644.969
|
1452.436
|
849.867 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12167.945 |
12694.229 |
9038.524 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7212.370 |
24237.009 |
10850.337 |
|
|
|
Other Income |
318.049 |
386.015 |
106.266 |
|
|
|
TOTAL (A) |
7530.419 |
24623.024 |
10956.603 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption materials changes inventories |
6362.932 |
20831.881 |
8757.015 |
|
|
|
Manufacturing service costs |
332.967 |
784.878 |
443.792 |
|
|
|
Employee related expenses |
149.058 |
437.548 |
252.191 |
|
|
|
Administrative selling other expenses |
-- |
453.641 |
239.645 |
|
|
|
Other Expenses |
849.812 |
-- |
-- |
|
|
|
Exceptional Income |
-- |
0.000 |
87.816 |
|
|
|
TOTAL (B) |
7694.769 |
22507.948 |
9780.459 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(164.350) |
2155.076 |
1176.144 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
357.097 |
1167.103 |
730.470 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(521.447) |
947.973 |
445.674 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
180.980 |
424.679 |
236.699 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
(702.427) |
523.294 |
208.975 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.666 |
247.332 |
103.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(704.093) |
275.962 |
105.750 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
381.712 |
105.750 |
- |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(322.381) |
381.712 |
105.750 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
755.776 |
3294.751 |
506.693 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1084.251 |
7332.677 |
2115.225 |
|
|
|
Capital Goods |
49.449 |
204.397 |
113.520 |
|
|
|
Stores & Spares |
2.767 |
136.580 |
113.520 |
|
|
TOTAL IMPORTS |
1136.467 |
7673.654 |
2342.265 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(5.41) |
2.12 |
2.57 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
PAT / Total Income |
(%) |
(9.35)
|
1.12
|
0.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.74)
|
2.16
|
1.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.37)
|
4.13
|
2.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.29)
|
0.17
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.11
|
4.67
|
3.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.20
|
1.27
|
1.31 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS DETAIL
(Rs. In Millions)
|
Particular |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
|
|
|
|
|
Sundry Creditor |
2543.328
|
388.006
|
867.403 |
|
|
|
|
|
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
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 |
No |
UNSECURED LOANS
DETAILS
(Rs.
In Millions)
|
PARTICULARS |
|
31.03.2012 (6
Months) |
|
|
|
|
|
Deferred sales tax loan |
|
549.780 |
|
Total |
|
549.780 |
|
PARTICULARS |
|
30.09.2011 (18
Months) |
|
Rupee term loans banks unsecured |
|
2000.000 |
|
Deferred sales tax loan unsecured |
|
466.654 |
|
Total |
|
2466.654 |
PERFORMANCE REVIEW
During the period the capacity utilization remained at 59%.
The capacity utilization was lower mainly due to extreme low supply of APM Gas and uneconomic price of RLNG. During the there was process problem in the plant for few days and subsequently switching over of plant operations from Cold Reactor to Hot Reactor, the plant was under shutdown for about 2 weeks in totality which has impacted production.
The restriction in supply of APM gas almost by 50% of normal supply, high cost of RLNG and drastic increase in the Raw Material cost has significantly impacted the cost of manufacture. The improved product realization has been neutralized by increased cost of manufacture, therefore the profitability of the company has been severely impacted.
FORM 8
|
Corporate identity number of the company |
U27100MP2008PLC020834 |
|
Name of the company |
WELSPUN MAXSTEEL LIMITED |
|
Address of the registered office or of the principal place of business in India of the company |
Welspun City, Village Versamedi, Taluka NAjar, Kutuch, Anjar Gujarat – 370110, India Email: rashmi_mamtura@welspun.com |
|
This form is for |
Creation of charge |
|
Type of charge |
Immovable property Book debts Movable property (not being pledge) Floating charge Others (entire current assets) |
|
Particular of charge holder |
Canara Bank, 85, Maker Tower, F Wing, 20th Floor, Cuff Parade, Mumbai – 400005, Maharashtra, India E- Mail Id : vidyaanand@canarabank.com |
|
Nature of instrument creating charge |
Common hypothecation agreement dated 28th December 2012 |
|
Date of instrument Creating the charge |
28.12.2012 |
|
Amount secured by the charge |
Rs.2000.000 Millions |
|
Brief of the principal terms an conditions and extent and operation of the charge |
Rate of Interest: Interest on the RSTCL will be at 11.00 % p.a (Base Rate + 0.50%) till 30.09.2014 and to be revised at 13.75% p.a. (Base rate + 3.25%) from 01.10.2014 Margin NIL. Extent and Operation of the charge First pari-passu charge on the entire immovable and movable fixed assets of the Company and second pari-passu charge by way of Hypothecation of the entire current assets of the company, both present and future |
|
Short particulars of the property or asset(s) charged (including complete address and location of the property) |
First pari-passu charge on the entire immovable and movable fixed assets of the Company second pari-passu charge by way of Hypothecation of the entire current assets of the company, both present and future |
CONTINGENT LIABILITY
Rs.In Millions
|
Particulars |
31.03.2012 |
30.09.2011 |
|
Bank Guarantees |
651.344 |
401.202 |
|
Claims against the Company not acknowledged as debts |
79.236 |
28.852 |
|
Disputed service tax / excise duty and custom duty liabilities.# (Include dispute dues
of Rs.53.623 Millions (Rs.53.622.000 Millions) for which bank guarantee
issued) |
459.135 |
453.037 |
|
Bills discounted with Banks |
886.736 |
315.131 |
|
Unexpired Letters of Credit (Net of liability provided) |
620.020 |
471.373 |
FIXED ASSETS
Tangible Assets
In Tangible Assets
PRESS RELEASE
WELSPUN, APOLLO JUNK RS.6750.000
MILLIONS INFRA INVESTMENT ON MARKET BLUES
THE WELSPUN GROUP IS
NOW TAKING A FRESH VIEW OF THE INFRASTRUCTURE BUSINESS
21ST NOVEMBER, 2012
US-based private equity (PE) firm Apollo Global Management’s decision to invest Rs 22500.000 Millions in Welspun Corp Limited and two of its subsidiaries was touted to be one of the largest PE deals in India. However, out of this amount, the companies later decided to junk talks for Rs.6750.000 Millions investment.
In June last year, Welspun and Apollo had announced that the latter had agreed to invest Rs22500.000 Millions in Welspun’s holding company and the underlying steel (Welspun Maxsteel) and infrastructure (Welspun Infratech) subsidiaries. According to the deal, Apollo paid Rs.13050.000 Millions for a close to 20 per cent stake in Welspun Corp. Apollo also bought 12.5 per cent in Welspun Maxsteel for Rs.1400.000 Millions and agreed to invest Rs1300.000 Millions in the steel business on account of capital expenditures.
Apart from the above Rs.15750.000 Millions investment, Apollo and Welspun were also in talks for getting Rs.6750.000 Millions in Welspun Infratech, totalling the investment to Rs.22500.000 Millions. However, this investment has been junked.
“At that time, the infrastructure market was in a very different sphere. We have seen a lot of correction in the infrastructure market. Even if Apollo wants to give us money, we don’t want it,” said Akhil Jindal, director of Welspun Corp.
Jindal said the company had realised infrastructure sector in India had lot of pains and challenges and there was a slowdown in the sector.
The infrastructure business of Welspun is split into three companies — Welspun-Leighton, Welspun Projects and Welspun Infratech.
Welspun bought 35 per cent in Leighton Contractors for Rs.4700.000 Millions. This company is now known as Welspun-Leighton. It also bought MSK Projects in 2010 and renamed it Welspun Projects. Welspun Infratech is the third infrastructure arm of the group, in which Apollo was looking to pick up a stake for Rs.6750.000 Millions.
The Welspun Group is taking a fresh view of the infrastructure business. Jindal said: “Our infrastructure plans are static. We are not growing too much. We are completing our existing projects. As far as infrastructure is concerned, we have four-five projects which we will be completing.”
He said the company was not bidding for each and every project that is being announced, if any. “We are bidding very selectively. It’s a negative IRR (internal rate of return) game and we don’t want to stoop to that. This market is a winner’s curse.”
Apollo has two seats on the board of Welspun Corp as per the investment agreement.
WELSPUN PUTS RS 60000.000 MILLIONS STEEL PROJECT IN MAHARASHTRA ON HOLD
CUT IN KG-D6 GAS ALLOCATION, SURGE AND AMBIGUITY IN IRON ORE PRICES
CHANGE CALCULATIONS
24TH APRIL, 2012
Welspun Maxsteel, wholly owned subsidiary of
the $3-billion Welspun Group, has kept its proposed steel factory plan in
Maharashtra on hold due to the shortage of raw material and energy. The delay
in environment clearances has also forced the company to keep the project in
abeyance for now.
The company proposed in August 2009 to set up
a steel plant with annual capacity of 1.5 million tonnes, at an investment of
Rs 60000.000 Millions. Power back up from gas-based power plants with a
capacity of 330 Mw was part of the plan.
“The proposed plans were made based on the
government assurance of adequate gas supplies for both steel mills and power
plants from the Krishna-Godavari (KG) basin. The government had also assured us
a green signal after it was satisfied with all the requisites. But, neither
adequate gas supplies are ensured to us nor environment clearance given. Hence,
we decided to put the plant on hold,” said a senior management official.
Welspun was pinning its hopes on this
expansion to complete its backward integration. The steel plates from this
plant would have been used as raw material for its steel pipe business. Welspun
Corp has a pipe mill in Gujarat. The company had planned this investment to
shield itself from fluctuating steel prices and getting completely integrated
from the raw material to the end product.
Apollo, a global private equity company, had
agreed to invest Rs 22500.000 Millions in Welspun Corp in June 2011.
Welspun Maxsteel was formed in May 2009 after
Welspun Steel Limited completed the acquisition of Vikram Ispat, the sponge
iron division business of Grasim Industries Limited. The Raigad plant was set up
in 1989 with an annual capacity of 750,000 mt of sponge iron in the form of hot
briquetted iron and an initial investment of Rs.5250.000 Millions. The company
was held by the promoters of Welspun Group and in June 2011, when Apollo
announced a Rs.22500.000 Millions investment, was sold to Welspun Corp for
Rs.8050.000 Millions. Apollo invested Rs.1400.000 Millions for a 12.5 per cent
promoter stake and another Rs.1300.000 Millions in expansion of the plant.
The company’s direct reduced iron plant with
annual capacity of 900,000 tonnes is operating normally. However, there are
closure fears. The company says it is losing Rs.150.000 Millions a month, as
the net weighted cost of gas has soared to $12 per unit, a threefold increase
in recent times.
In 2009, the government estimated a total gas
output of 60 mscmd from the D6 gas block in the K-G Bsin (KG-D6), estimated to
rise to 80 mscmd and later to 100 mscmd in phases in four years. The output at
present is 32.3 mscmd. Consequently, the government cut the supply target for
each consumer. A cut of 25 per cent has been imposed on the Welspun allocation,
which may go down further.
The biggest worry is the change in the pricing
of iron ore. “When this steel plant was proposed, the government assured us of
an iron ore mining lease on a fixed price basis for a long and sustainable
period. From the annual pricing system earlier, the government changed it to
quarterly and has now made it index-based, which has made iron ore price
several times costlier,” said a company source.
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.53.85 |
|
|
1 |
Rs.85.26 |
|
Euro |
1 |
Rs.71.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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.