MIRA
INFORM REPORT
|
Report Date : |
15.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
RMG ALLOY STEEL LIMITED (w.e.f. 14th May, 2013) |
|
|
|
|
Formerly Known
As : |
REMI METALS GUJARAT LIMITED (w.e.f. 23rd January,
1993) REMI METALS LIMITED |
|
|
|
|
Registered
Office : |
Plot No.1, G.I.D.C. Industrial Estate, Valia Road, Jhagadia, District
Bharuch – 392 001, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
06.10.1993 |
|
|
|
|
Com. Reg. No.: |
04-020358 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.650.600 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100GJ1993PLC020358 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR14671G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR2121C |
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|
|
|
Legal Form : |
Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of
steel and steel products such as seamless tubes and rolled products. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (17) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a part of “Welspun Group”. It is an old and established company having a moderate track record. There appear huge accumulated losses recorded by the company during
2013 which resulted in erosion of its networth. However, business is active. Payment terms are reported as slow. The company can be considered for business dealings on a safe and secured
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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/ Factory : |
Plot No.1, G.I.D.C. Industrial Estate, Valia Road, Jhagadia, District
Bharuch – 392 001, Gujarat, India |
|
Tel. No.: |
91-2645-619700/ 220406/7 |
|
Fax No.: |
91-2645-226841/ 619800/ 220403 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
Welspun House, 4th Floor, Kamala Mills Compound, Senapati
Bapat Marg, |
|
Tel. No.: |
91-22-66136000 |
|
Fax No.: |
91-22-24908020 |
|
E-Mail : |
|
|
|
|
|
Corporate Office 2 : |
B-9, Trade World, Kamala City, S.B. Marg, Lower Parel, Mumbai – 400
001, Maharashtra, India |
|
|
|
|
Sales Office : |
Located at: ·
Ahmedabad ·
New Delhi ·
Chennai ·
Bangalore ·
Kolkata ·
Nagpur |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Atul Desai |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Abhishekh Mandawewala |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R.R. Mandawewala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Singh Bapna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajendra C. Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rishabh Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nirmal Gangwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ramgopal Sharma |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Kaushik N. Kapasi |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Raja Ganesh |
|
Designation : |
Assistant Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
99465 |
0.09 |
|
|
94519209 |
87.17 |
|
|
270799 |
0.25 |
|
|
94248410 |
86.92 |
|
|
94618674 |
87.26 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
94618674 |
87.26 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18430 |
0.02 |
|
|
140 |
0.00 |
|
|
23761 |
0.02 |
|
|
42331 |
0.04 |
|
|
|
|
|
|
2157213 |
1.99 |
|
|
|
|
|
|
6912946 |
6.38 |
|
|
3673040 |
3.39 |
|
|
1031636 |
0.95 |
|
|
3432 |
0.00 |
|
|
28204 |
0.03 |
|
|
1000000 |
0.92 |
|
|
13774835 |
12.70 |
|
Total Public shareholding (B) |
13817166 |
12.74 |
|
Total (A)+(B) |
108435840 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
108435840 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of
steel and steel products such as seamless tubes and rolled products. |
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|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Year ended 31.03.2011 Qty. (MT) |
|
i) Licensed Capacity |
— * |
|
ii) Installed Capacity |
|
|
- Steel Bloom |
150000 |
|
- Rolled Products |
100000 |
|
- Seamless Pipes |
70000 |
|
iii) Production |
|
|
- Steel |
109318** |
|
-Seamless Pipes |
12366* |
* Not applicable in
terms of Government of India’s Notification No.SO.477 (E) dated 25th
July 1991.
** Includes 7882 MT
processed by third parties.
GENERAL INFORMATION
|
Customers : |
· Echjay Industries Limited · Sadhu Forge Limited · Bharat Forge Limited · Ramkrishna Forgings Limited · Kadvani Forge Limited · GNA Group · RIJ Engineering Limited · Ahmednagar Forge Limited · MM Forge Limited · Bay Forge · Trinity Engineers Limited · Kalyani Forge Limited · BHEL · TOYO Engineering · Fremak Industries Inc · Siemens · John Deere |
||||||||||||||||||||||||||||||
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No. of Employees : |
Not Available |
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Bankers : |
|
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|
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Facilities : |
Notes: LONG TERM BORROWINGS a) Rupee loan of
Rs.786.000 millions (Previous year Rs.770.000 millions) and Foreign Currency loan
of Rs.216.400 millions (Previous year Rs.374.800 millions) are secured, on
pari passu basis, by way of: i. Equitable
mortgage of fixed assets on first charge basis. ii.
Hypothecation of movable machinery on first charge basis. iii. Second
charge on current assets. Foreign Currency
loan carries interest at LIBOR plus bank margin and is repayable in 10
quarterly installments starting from March 13 and ending in June 15. Rupee term loans
of Rs.336.000 millions carry interest at bank prime lending rate /base rate
plus margin and are repayable in 20 quarterly installment starting from
September 2010 and ending in September 2015. Rupee term loans
of Rs.450.000 millions carry interest at base rate plus margin and are
repayable in single bullet payment/installment at the end of 36 months from
the date of drawdown, i.e. December, 2012. b) Installments
of rupee term loans aggregating to Rs.39.000 millions due have been paid
after the balance sheet date. The rephasement proposal has been sanctioned by
major lender in the consortium and is under advanced consideration by other
member banks. Post the sanction by all, amount remitted over and above the
installment as per revised schedule is to be adjusted against the dues
arising in future. SHORT TERM BORROWINGS a) Working
Capital Loans are secured, on pari passu basis, by way of i. Hypothecation
of current assets on first charge basis. ii.
Hypothecation of movable machinery on second charge basis. iii. Equitable
mortgage of fixed assets on second charge basis. b) Working
Capital Loans carry interest, at bank prime lending rate/base rate plus
margin, ranging from 13.50% to 15.15%. c) Rupee loan is
secured by second pari passu charge on immoveable properties of the company.
It carries interest at 13.15%. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountants |
|
Address : |
Nariman Point, Mumbai – 400 021, Maharashtra, India |
|
|
|
|
Enterprise
having significant influence over the Company : |
|
CAPITAL STRUCTURE
AS ON 21.09.2012
Authorised Capital : Rs.1200.000 millions
Issued, Subscribed & Paid-up Capital : Rs.1053.044
millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
110000000 |
Equity Shares |
Rs.6/-each |
Rs.660.000 millions |
|
54000000 |
Preference Shares |
Rs.10/-each |
Rs.540.000 millions |
|
|
|
|
Rs.1200.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
108435840 |
Equity Shares |
Rs.6/-each |
Rs.650.600 millions |
|
|
|
|
|
Reconciliation of the Number of Shares Equity Shares : Face value of
Rs.10 each
|
Particulars
|
As at 31st March, 2012 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
As at beginning of the year |
108435840 |
650.600 |
|
Share issued during the year |
-- |
-- |
|
Buyback/ forfeiture/ reduction shares |
-- |
-- |
|
Outstanding at the end of the year |
108435840 |
650.000 |
Details of
Shareholders holding more than 5% shares
|
Name of the Shareholders |
As at 31st March, 2012 |
|
|
No. of Shares |
% held |
|
|
Welspun Steel Limited |
43247034 |
40 |
|
Widescreen Holding Private Limited |
24143333 |
22 |
|
Magnificent Trading Private Limited |
7012334 |
6 |
|
Calplus Trading Private Limited |
5520481 |
5 |
Terms/ rights
attached to equity shares
The company has
108435840 equity share having par value of Rs.6/- each fully paid up. Each holder
of equity shares is entitled to one vote per share. The company declares and
pays dividends, if any, in Indian rupees. The dividend proposed if any, by the
board of directors is subject to the approval of the shareholders in ensuing
annual general meeting.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the share holders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
650.600 |
650.600 |
|
(b) Reserves & Surplus |
|
(1984.100) |
(1414.000) |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
(1333.500) |
(763.400) |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
|
2106.100 |
2673.500 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long
term liabilities |
|
0.000 |
0.000 |
|
(d) Long-term
provisions |
|
22.000 |
17.700 |
|
Total Non-current
Liabilities (3) |
|
2128.100 |
2691.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
1160.300 |
863.300 |
|
(b)
Trade payables |
|
1785.000 |
1407.700 |
|
(c)
Other current liabilities |
|
844.700 |
340.200 |
|
(d) Short-term
provisions |
|
1.900 |
2.800 |
|
Total Current
Liabilities (4) |
|
3791.900 |
2614.000 |
|
|
|
|
|
|
TOTAL |
|
4586.500 |
4541.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
2066.200 |
2271.500 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
|
17.300 |
17.100 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
27.700 |
27.900 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
2111.200 |
2316.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
1064.900 |
863.200 |
|
(c)
Trade receivables |
|
1126.700 |
1104.200 |
|
(d) Cash
and cash equivalents |
|
185.200 |
124.800 |
|
(e)
Short-term loans and advances |
|
98.500 |
133.100 |
|
(f)
Other current assets |
|
0.000 |
0.000 |
|
Total Current
Assets |
|
2475.300 |
2225.300 |
|
|
|
|
|
|
TOTAL |
|
4586.500 |
4541.800 |
|
Particulars |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
650.600 |
|
|
2] Share Application Money |
|
|
0.000
|
|
|
3] Reserves & Surplus |
|
|
0.000
|
|
|
4] (Accumulated Losses) |
|
|
(888.600) |
|
|
NETWORTH |
|
|
(238.000) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1769.500 |
|
|
2] Unsecured Loans |
|
|
1664.000 |
|
|
TOTAL BORROWING |
|
|
3433.500 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
3195.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS (Net Block] |
|
|
2454.900 |
|
|
Capital work-in-progress |
|
|
18.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000
|
|
|
DEFERRED TAX ASSETS |
|
|
0.000
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
956.200
|
|
|
Sundry Debtors |
|
|
854.000
|
|
|
Cash & Bank Balances |
|
|
180.200
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
149.600
|
|
Total
Current Assets |
|
|
2140.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
1309.600 |
|
|
Other Current Liabilities |
|
|
91.800
|
|
|
Provisions |
|
|
16.700
|
|
Total
Current Liabilities |
|
|
1418.100 |
|
|
Net Current Assets |
|
|
721.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
3195.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
5848.700 |
5956.400 |
3715.000 |
|
|
|
Other Income |
22.500 |
17.700 |
16.400 |
|
|
|
TOTAL (A) |
5871.200 |
5974.100 |
3731.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
Materials Consumed |
3958.600 |
3869.900 |
3786.700 |
|
|
|
Changes in
Inventories of Finished Goods & Work in Progress |
(209.200) |
43.000 |
|
|
|
|
Employee
Benefits Expenses |
281.600 |
275.900 |
|
|
|
|
Others Expenses |
1766.100 |
1767.200 |
|
|
|
|
TOTAL (B) |
5797.100 |
5956.000 |
3786.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
74.100 |
18.100 |
(55.300) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
421.500 |
312.200 |
149.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(347.400) |
(294.100) |
(204.700) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
222.700 |
231.300 |
188..800 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(570.100) |
(525.400) |
(393.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(570.100) |
(525.400) |
(393.500) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
(1414.000) |
(888.600) |
(495.100) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1984.100) |
(1414.000) |
(888.600) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
184.700 |
72.400 |
4.200 |
|
|
TOTAL EARNINGS |
184.700 |
72.400 |
4.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
626.000 |
182.000 |
583.800 |
|
|
|
Stores & Spares |
96.200 |
93.100 |
66.800 |
|
|
|
Capital Goods |
0.000 |
0.000 |
17.500 |
|
|
TOTAL IMPORTS |
722.200 |
275.100 |
668.100 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(5.26) |
(4.85) |
(6.72) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1179.200 |
757.200 |
850.700 |
755.000 |
|
Total Expenditure |
1224.100 |
854.200 |
911.700 |
804.000 |
|
PBIDT (Excl OI) |
(44.900) |
(97.000) |
(61.000) |
(49.000) |
|
Other Income |
6.300 |
3.700 |
12.500 |
4.000 |
|
Operating Profit |
(38.600) |
(93.300) |
(48.500) |
(45.000) |
|
Interest |
120.500 |
123.700 |
121.600 |
119.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(159.100) |
(217.000) |
(170.100) |
(164.200) |
|
Depreciation |
55.500 |
56.000 |
56.000 |
55.200 |
|
Profit Before Tax |
(214.600) |
(273.000) |
(226.100) |
(219.400) |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(214.600) |
(273.000) |
(226.100) |
(219.400) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(214.600) |
(273.000) |
(226.100) |
(219.400) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(9.71) |
(8.79)
|
(10.54)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.75) |
(8.82)
|
(10.59)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.48) |
(11.61)
|
(8.56)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43 |
0.69
|
1.65
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(2.45) |
(4.63)
|
(14.43)
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.65 |
0.85
|
1.51
|
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
Yes |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
|
Unsecured Loans |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
LONG TERM BORROWINGS |
|
|
|
Sales Tax Deferred Payment Loan |
341.600 |
303.000 |
|
Long Term Loan from Body Corporate |
1408.500 |
1408.500 |
|
SHORT TERM BORROWINGS |
|
|
|
Foreign Currency Loans- Buyers Credit |
173.000 |
0.000 |
|
Total
|
1923.100 |
1711.500 |
Notes:
LONG TERM BORROWINGS
a) Sales tax
deferment loan is interest free and is repayable from April 2012 in six equal yearly
installments.
b) Loan from body
corporate carry nil interest till the Company is deregistered from BIFR and is
repayable after March 2013 on mutually agreed terms.
SHORT TERM BORROWINGS
a) Buyers Credit carry interest at LIBOR plus margin (115 bps to 250
bps).
OPERATIONS
Performance of
Alloy Steel and Seamless Tubes of the Company was as under:
|
Particulars |
2011-12 |
2010-11 |
||||
|
Production (Tones) |
Sales (in Qty.) |
Gross Sales (Rs. in millions) |
Production (Tones) |
Sales (in Qty.) |
Gross Sales (Rs. in millions) |
|
|
Steel |
96649 |
95768 |
5333.400 |
109318 |
109524 |
5645.700 |
|
Seamless Pipes |
11543 |
11494 |
1082.400 |
12366 |
12303 |
910.000 |
Their main share is
in automobile industry. There is a tough competition from companies with Blast
Furnace route which has resulted in erosion of margin of profits.
Steel division has
not performed well since steel input cost has gone up during the year and
increased in input cost could not be passed on to customers in view of
recession in steel market. Cost of production of pipe was high due to frequent
breakdown in pressure which resulted into increase in maintenance cost and loss
of production
The Company has
developed new grades in steel division and also rejections in pipes have been
reduced.
MANAGEMENT AND
DISCUSSION ANALYSIS
Industry
structure, scenario and development
India ranked as
the fourth largest producer of crude steel in the world during January-November
2011 after China, Japan, and the USA. After a sharp increase in world
consumption of finished steel in 2010 (15 per cent), the consumption is
estimated to slow down to 6.5 per cent for 2011 and 5.4 per cent in 2012 as per
World Steel Association estimates. The country has also been the largest sponge
iron producer in the world since 2002. Domestic crude steel production grew at
a compounded annual growth rate (CAGR) of 8.4 per cent during 2006-7 to
2010-11.
The increase in production
is driven by 8.8 per cent growth in crude steel capacity mainly in the
private-sector plants and high utilization rates during this period. The Indian
steel industry has diversified its product mix to include sophisticated value
added steel used in the automotive sector, heavy machinery, and physical
infrastructure. Despite the softening of industrial demand as reflected in a
4.4 per cent growth in real consumption of total finished steel during
April–December, 2011 over the same period of last year, the overall
April-December 2011 performance of the Indian steel industry is optimistic. In
2011, it was faced with stiff challenges posed by rising inflationary pressures
at home and deteriorating global growth conditions. The multiple hikes in interest
rates by the central bank also impacted the industry’s growth directly and
indirectly through their effect on the growth of key user industries. Raw
material security (e.g. getting iron ore mining lease),infrastructure
(affecting logistics and transport), quality of coking coal, and uncertainties
in land acquisition have emerged as bottlenecks to setting up new steel plants.
India’s steel
consumption may grow by just 4.3% in 2011 to 67.7 million tonne (MT), premier
industry body World Steel Association said “In 2011, India’s steel use is
forecast to grow by 4.3% to reach 67.7 MT due to economic growth. In 2012, the
growth rate is forecast to accelerate to 7.9%,” the association said in its
outlook for 2011 and 2012.
Countries like
Australia and Brazil are reaching out to strengthen the iron ore export
industry, which is expected to boom for the next five years, whereas India, the
third largest iron ore exporter, is under threat of severe damage to the iron
ore exports, if practical and viable mining policies are not implemented
immediately. With the blanket ban continuing in Karnataka, Steel industry in
India is struggling to meet the production requirements, with severe shortage
of raw material. If the ban extends for few more weeks, many units will face
shut downs shortly. Indian steel makers are investing in iron ore exploration
overseas, in countries like Afghanistan, with their domestic growth largely
affected by regulatory issues. A strong mining regulation is a must to curb the
illegal mining, but the mining should start in full swing in order to help the
domestic steel and iron ore export industry.
The historical
relationship between gross domestic product (GDP) and steel use growth in India
indicates the latter has always been ahead, except during the slowdown in
2008-09. With its sluggish growth, steel consumption will once again lag behind
the GDP growth rate.
The global steel
market is threatened by excess capacity. Despite the demand growth seen in
2010-11, steelmaking capacity still exceeds steel demand. It cites the
reduction of confidence in the marketplace in the latter half of 2011 resulting
from the European sovereign debt crisis as being responsible for halting
investments in large-scale European infrastructure projects. It adds that this
is further complicated by the political expediency of protecting jobs, thereby
stopping any rationalisation in the steel sector.
The steel sector
seems to be the newest victim of slowing demand. Monetary tightening is
reflecting in demand deceleration. India’s steel production appears to be
getting affected by inflation and higher interest rates and their effect on
demand.
Business Line
reported that the foundry industry in India may find it tough to sustain the
15% growth rate because of dwindling iron ore resource. Iron ore for the
foundry industry is mainly supplied from mining pits in Karnataka, Goa and
Chhattisgarh. The ban on mining of iron ore in Karnataka and Goa has impacted
the supply of high grade iron ore for pig iron. World Foundry Organization said
that in addition to iron ore supply, the supply of uninterrupted power in all
the major foundry clusters of West Bengal, Karnataka, Punjab, Tamil Nadu, and
Gujarat, is poor. In Tamil Nadu, foundries are being forced to run just one
shift per day. Besides, every year, the power tariff is going up significantly.
The ban on mining of iron ore has impacted foundries which are basically small
and medium units and are not in a position to secure supplies as it will
significantly increase the cost of production.
The Indian economy
is estimated to grow by 6.9 per cent in 2011-12, after having grown at the rate
of 8.4 per cent in each of the two preceding years. With agriculture and
services continuing to perform well, India’s slowdown can be attributed almost
entirely to weakening industrial growth. Monetary policy was tightened by the
Reserve Bank of India (RBI) during the year to control inflation and curb
inflationary expectations.
In a significant
relief to the Indian Steel makers currently reeling under severe raw material
shortages, India’s largest iron ore producer National Mineral Development
Corporation (NMDC) will step up production by at least 20% this fiscal on the
back of fresh iron ore reserves that pushed total reserves up by around 50%. The
iron ore shortages have of late forced several Indian steel makers scale down
their operations. NMDC sells over 85% of iron ore produced to the domestic
players.
DISCUSSION AND
FINACIAL PERFORMANCE
REVENUE
Revenue from
operation of the Company is of Rs.5820.000 millions during the year ended 31st
March 2012 as Rs.5940.000 millions during the year 31st March 2011.
EBDITA
Profits before
depreciation and financial charges during the year ended 31st March
2012 was of Rs.74.100 millions as compared to profits of Rs.18.100 millions for
the year ended 31st March 2011.
STATEMENT OF
AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH
2013
PART-I
(Rs.
in millions)
|
Sr. No |
Particulars |
Quarter Ended |
Year Ended |
|
|
|
|
31st
March |
31st
December |
31st
March |
|
|
|
2013 |
2012 |
2013 |
|
|
|
Unaudited |
Audited |
|
|
1 |
Income from
Operations |
|
|
|
|
a) |
Net
sales / Income from operations |
753.900 |
848.300 |
3529.700 |
|
b) |
Other
operating income |
1.100 |
2.400 |
12.200 |
|
|
Total |
755.000 |
850.700 |
3541.900 |
|
2 |
Expenses |
|
|
|
|
a) |
Cost
of materials consumed |
450.100 |
524.500 |
2134.000 |
|
b) |
Changes
in inventories of finished goods, work in progress and stock in trade |
57.300 |
40.300 |
207.200 |
|
c) |
Employee
benefits expense |
50.900 |
61.900 |
251.800 |
|
d) |
Depreciation
and Amortisation expense |
55.200 |
56.000 |
222.700 |
|
e) |
Power
& fuel |
137.100 |
167.100 |
684.600 |
|
f) |
Other
expenses |
108.600 |
117.900 |
516.300 |
|
|
Total |
859.200 |
967.700 |
4016.600 |
|
3 |
Profit/(Loss)
from operations before other income, finance costs and exceptional Hems (1-2) |
(104.200) |
(117.000) |
(474.700) |
|
4 |
Other
income |
4.000 |
12.500 |
26.700 |
|
5 |
Profit
/(Loss) from ordinary activities before finance costs and |
(100.200) |
(104.500) |
(448.000) |
|
|
exceptional
items ( 3+4) |
|
|
|
|
6 |
Finance
Costs |
119.200 |
121.600 |
485.000 |
|
7 |
Profit/(Loss)
from ordinary activities after finance costs but before exceptional items
(5-6) |
(219.400) |
(226.100) |
(933.000) |
|
8 |
Exceptional
Items |
-- |
-- |
-- |
|
9 |
Profit/(Loss)
from ordinary activities before tax (7-8) |
(219.400) |
(226.100) |
(933.000) |
|
10 |
Tax
expenses |
-- |
-- |
-- |
|
11 |
Net
Profit/(Loss) from ordinary activities after tax (9-10) |
(219.400) |
(226.100) |
(933.000) |
|
12 |
Extraordinary
Item (net of tax expense Rs.nil) |
-- |
-- |
-- |
|
13 |
Net
Profit/(Loss) for the period (11-12) |
(219.400) |
(226.100) |
(933.000) |
|
14 |
Paid-up
equity share capital (Rs.6/- per equity share) |
650.600 |
650.600 |
650.600 |
|
IS |
Reserve
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
-- |
-- |
(1911.000) |
|
16i |
Earnings
per share (before extraordinary items) |
|
|
|
|
|
Basic |
(2.02) |
(2.09) |
(8.60) |
|
|
Diluted |
|
|
|
|
16ii |
Earnings
per share (after extraordinary items) |
|
|
|
|
|
Basic |
(2.02) |
(2.09) |
(8.60) |
|
|
Diluted |
|
|
|
|
PART-II |
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
Public
Shareholding |
|
|
|
|
- |
Number
of shares |
13817166 |
13817166 |
13817166 |
|
- |
Percentage
of shareholding |
12.74 |
12.74 |
12.74 |
|
|
Promoters
& Promoter group shareholding |
|
|
|
|
a) |
Pledged/Encumbered |
|
|
|
|
- |
Number
of shares |
-- |
-- |
-- |
|
- |
Percentage
of shares (as a % of the total shareholding of promoters & promoter
group) |
-- |
-- |
-- |
|
- |
Percentage
of shares (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
b) |
Non-encumbered |
|
|
|
|
- |
Number
of shares |
94618674 |
94618674 |
94618674 |
|
- |
Percentage
of shares (as a % of the total shareholding of |
100 |
100 |
100 |
|
|
promoters
& promoter group) |
|
|
|
|
- |
Percentage
of shares (as a % of the total share capital of the company) |
87.26 |
87.26 |
87.26 |
|
B |
Investor
Complaints |
31st March, 2013 |
|
|
Pending
at the beginning of the quarter % |
-- |
|
|
Received
during the quarter |
14 |
|
|
Disposed
of during the quarter |
14 |
|
|
Remaining
unresolved at the end of the quarter |
-- |
STATEMENT
OF ASSETS AND LIABILITIES
(Rs.
in millions)
|
|
Particulars |
As at 31st March 2013 |
|
|
|
Audited |
|
I |
EQUITY AND LIABILITIES |
|
|
1 |
SHAREHOLDERS' FUNDS |
|
|
|
Share
Capital |
1053.000 |
|
|
Reserves
and Surplus |
(1911.000) |
|
|
|
(858.000) |
|
|
|
|
|
2 |
SHARE APPLICATION MONEY PENDING ALLOTMENT |
150.000 |
|
|
|
|
|
3 |
NON CURRENT LIABILITIES |
|
|
|
Long
Term Borrowings |
1614.200 |
|
|
Long
Term Provisions |
20.700 |
|
|
|
1634.900 |
|
|
|
|
|
4 |
CURRENT LIABILITIES |
|
|
|
Short
Term Borrowings |
1282.100 |
|
|
Trade
Payables |
868.400 |
|
|
Other
Current Liabilities |
549.100 |
|
|
Short
Term Provisions |
2.700 |
|
|
|
2702.300 |
|
|
|
|
|
|
TOTAL |
3629.200 |
|
|
|
|
|
II |
ASSETS |
|
|
1 |
NON CURRENT ASSETS |
|
|
|
Fixed
Assets |
4307.200 |
|
|
Less:
Depreciation |
2460.800 |
|
|
Tangible
assets |
1846.400 |
|
|
Intangible
assets |
3.000 |
|
|
Capital
work-in-progress |
13.800 |
|
|
Long-Term
Loans And Advances |
29.200 |
|
|
|
1892.400 |
|
|
|
|
|
2 |
CURRENT ASSETS |
|
|
|
Inventories |
794.600 |
|
|
Trade
receivables |
735.200 |
|
|
Cash and
Cash equivalents |
171.500 |
|
|
Short
term Loans and Advances |
23.000 |
|
|
Other
Current Assets |
12.500 |
|
|
|
1736.800 |
|
|
|
|
|
|
TOTAL |
3629.200 |
Notes:
1. The above results were
reviewed by the Audit Committee and thereafter were approved and taken on
record by the Board of Directors at its meeting held on 30th May,
2013.
2. The figures for the last
quarter are balancing figures between audited figures in respect of the full
financial year and the published figures year to date figures up to the third
quarter of the financial year.
3. The Company is engaged
in the business of steel and steel products such as Seamless Tubes and Rolled
Products which in the opinion of the Management is considered the only business
segment in the context of Accounting Standard 17 on "Segment
Reporting"
4. Deferred tax asset is
more than deferred tax liability as computed in accordance with the Accounting
Standard AS 22, notified in the Companies (Accounting Standards) Rules 2006,
The Company, as a matter of prudence has not recognised deferred tax asset.
5. Losses incurred in the
financial year due to sharp slowdown in the industry, increased finance costs
and volatility in foreign exchange movements have further eroded the net worth.
The proposed modification in the scheme of rehabilitation which includes
capital expenditure plans (majority funds lieu up with banks), infusion of
capital, monetization of surplus assets and other mitigating factors is pending
for approval before the BIFR. Together with rationalisation of operations,
release and mobilisation of additional long term funds already done, the
Company expects to achieve earnings recovery to recoup its recent operative
losses and as such financial statements have been prepared on going concern
basis.
Accordingly, the Company
shall issue preference shares upto Rs.150.000 millions including share premium
on preferential basis to strategic investor/co-promoter promoter of the Company
to part finance rehabilitation project as mentioned in Modified Draft
Rehabilitation Scheme pending for approval before BIFR. The Company has
received share application money of Rs.150.000 millions.
6. The figures for the previous periods/year have been regrouped/rearranged, wherever necessary, to make them comparable.
FIXED ASSETS:
·
Leasehold
Land
·
Freehold
Land
·
Plant
and Machinery
·
Electrical
Installation
·
Buildings
·
Office
Equipments
·
Furniture
and Fixtures
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.90 |
|
|
1 |
Rs.90.88 |
|
Euro |
1 |
Rs.78.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
17 |
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.