MIRA
INFORM REPORT
|
Report Date : |
25.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
WELSPUN MAXSTEEL LIMITED (w.e.f. 01.07.2009) |
|
|
|
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Formerly Known
As : |
VIKRAM SPONGE IRON LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
27.06.2008 |
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|
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|
Com. Reg. No.: |
04-064145 |
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Capital
Investment/ Paid-up Capital: |
Rs.1300.824 Millions |
|
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|
|
CIN No.: [Company Identification
No.] |
U27100GJ2008PLC064145 |
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|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in manufacturing and selling of Gas based Sponge Iron. |
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No. of
Employees: |
Information declined by the management |
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 |
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|
|
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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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 |
Long term rating: BBB- (Suspended) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk |
|
Date |
23 October 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term rating: A3 (Suspended) |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk |
|
Date |
23 October 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. Ameya |
|
Designation : |
Finance Manager |
|
Date : |
24.07.2013 |
LOCATIONS
|
Registered Office : |
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|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Web Site: |
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Location: |
Owned |
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|
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|
Corporate Office : |
Welspun House, 7th 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 |
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|
|
|
Plant Office : |
Village Salav, P.O.Welspun Baug, District Raigad -402202, |
|
Tel. No.: |
91-2144 – 260110 to 260119 |
|
Fax No.: |
91-2144-260122 |
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|
|
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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 : |
27.08.2012 |
|
Din No.: |
00270175 |
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|
|
|
Name : |
Mr. Mintoo Bhandari |
|
Designation : |
Nominee Director |
|
Address : |
35, |
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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 |
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|
|
|
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 : |
14.09.2012 |
|
Din No.: |
00007179 |
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|
|
|
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 : |
14.09.2012 |
|
Din No.: |
00026514 |
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|
|
|
Name : |
Mr. Ashok tandon |
|
Designation : |
Director |
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Date of Birth: |
13.10.1958 |
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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 : |
Mr. Ameya |
|
Designation : |
Finance Manager |
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 : |
Subject is engaged in manufacturing and
selling of Gas based Sponge Iron. |
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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 : |
Information declined by the management |
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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 |
||||||||||||||||||
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Facilities : |
(Rs. In Millions)
|
|
|
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Financial Institutions: |
IDBI Trusteeship Services Limited, |
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Banking
Relations : |
-- |
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Auditors : |
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|
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 |
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|
|
|
Holding Company : |
Welspun Corp
Limited CIN No.: L27100GJ1995PLC025609 |
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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) |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1300.824 |
1300.824 |
|
(b) Reserves & Surplus |
|
1137.262 |
1841.355 |
|
(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) |
|
2438.086 |
3142.179 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
7125.536 |
7167.510 |
|
(b) Deferred tax liabilities (Net) |
|
301.865 |
301.865 |
|
(c) Other long term liabilities |
|
0.050 |
0.050 |
|
(d) long-term provisions |
|
34.603 |
42.627 |
|
Total Non-current Liabilities (3) |
|
7462.054 |
7512.052 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
2302.458 |
2395.330 |
|
(b) Trade payables |
|
2543.328 |
5120.101 |
|
(c) Other current
liabilities |
|
426.045 |
326.160 |
|
(d) Short-term provisions |
|
33.761 |
6.544 |
|
Total Current Liabilities (4) |
|
5305.592 |
7848.135 |
|
|
|
|
|
|
TOTAL |
|
15205.731 |
18502.366 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
6392.670 |
5771.747 |
|
(ii) Intangible Assets |
|
7.156 |
8.826 |
|
(iii) Capital
work-in-progress |
|
2093.245 |
1749.523 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
29.906 |
29.906 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
2021.030 |
2778.744 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
10544.007 |
10338.746 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
1294.573 |
|
(b) Inventories |
|
2368.616 |
3753.958 |
|
(c) Trade receivables |
|
1472.360 |
2342.962 |
|
(d) Cash and cash
equivalents |
|
511.253 |
335.654 |
|
(e) Short-term loans and
advances |
|
287.964 |
322.309 |
|
(f) Other current assets |
|
21.531 |
114.164 |
|
Total Current Assets |
|
4661.724 |
8163.620 |
|
|
|
|
|
|
TOTAL |
|
15205.731 |
18502.366 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
1300.824 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1565.392 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
2866.216 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
6069.083 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
6069.083 |
|
|
DEFERRED TAX LIABILITIES |
|
|
103.225 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
9038.524 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
5160.351 |
|
|
Capital work-in-progress |
|
|
2998.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
29.906 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1753.218 |
|
|
Sundry Debtors |
|
|
1261.755 |
|
|
Cash & Bank Balances |
|
|
80.093 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
424.873 |
|
Total
Current Assets |
|
|
3519.939 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
867.403 |
|
|
Other Current Liabilities |
|
|
1747.804 |
|
|
Provisions |
|
|
54.865 |
|
Total
Current Liabilities |
|
|
2670.072 |
|
|
Net Current Assets |
|
|
849.867 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
9038.524 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7212.370 |
24227.575 |
10850.337 |
|
|
|
Other Income |
318.049 |
356.360 |
106.266 |
|
|
|
TOTAL (A) |
7530.419 |
24583.935 |
10956.603 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
6362.932 |
20279.199 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
332.967 |
-161.943 |
|
|
|
|
Employee benefit expense |
149.058 |
437.547 |
|
|
|
|
Other expenses |
849.812 |
1861.173 |
|
|
|
|
TOTAL (B) |
7694.769 |
22415.976 |
9780.459 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(164.350) |
2167.959 |
1176.144 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
357.097 |
1223.652 |
730.470 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(521.447) |
944.307 |
445.674 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
180.980 |
424.679 |
236.699 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(702.427) |
519.628 |
208.975 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.666 |
243.666 |
103.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(704.093) |
275.962 |
105.750 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
381.712 |
105.750 |
0.000 |
|
|
|
|
|
|
|
|
|
|
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)
|
1.11
|
0.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.74)
|
2.14
|
1.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.37)
|
3.11
|
5.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.29)
|
0.17
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.87
|
3.04
|
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.20
|
1.27
|
1.31 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
125.100 |
0.000 |
NA
|
|
|
|
|
|
|
Total |
125.100 |
0.000 |
NA
|
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOANS
DETAILS
(Rs.
In Millions)
|
PARTICULARS |
31.03.2012 (6
Months) |
30.09.2011 (18
Months) |
|
Long-term
Borrowings |
|
|
|
Deferred payment liabilities |
549.780 |
466.654 |
|
Working capital loans from banks |
302.458 |
395.330 |
|
Total |
852.238 |
861.984 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10396033 |
28/12/2012 |
2,000,000,000.00 |
Canara Bank |
85, Maker Tower, F Wing, 20th Floor Cuffe
Parade, Mumbai- 400005, Maharashtra, India |
B65531758 |
|
2 |
10310174 |
12/09/2011 |
4,000,000,000.00 |
IDBI Bank Limited |
IDBI Towerwtc Complex, Cuffe Parade,
MUMBAI, Maharashtra - 400005, India |
B22540421 |
|
3 |
10263471 |
18/01/2011 |
1,000,000,000.00 |
State Bank of India |
Corporate Accounts Group - Mumbai, Neville
House,, |
B04883195 |
|
4 |
10209487 |
10/02/2010 |
5,000,000,000.00 |
Allahabad Bank |
Industrial Finance Branch, Allahabad Bank
Building, 2nd Floor, 37, Mumbai Samachar Marg, Fort, Mumbai- 400001,
Maharashtra, India |
A82135773 |
|
5 |
10184377 |
28/03/2013 * |
10,944,800,000.00 |
IDBI Trusteeship Services Limited |
Asian Building, Ground Floor, 17, R.
Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
B73398869 |
|
6 |
10184379 |
22/09/2009 |
4,840,000,000.00 |
State Bank of India |
State Bank Bhavan, Madam Kama Road,
Nariman Point, Mumbai - 400021, Maharashtra, India |
A72998552 |
|
7 |
10166698 |
30/05/2009 |
1,000,000,000.00 |
Canara Bank |
Dalamal Tower, Nariman Point, Mumbai-
400021, Maharashtra, India |
A65477960 |
|
8 |
10162078 |
16/05/2011 * |
6,000,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani
Marg, Ballard Estate,, Mumbai - 400001, Maharashtra, India |
B13845516 |
|
9 |
10163663 |
22/05/2009 |
4,000,000,000.00 |
IDBI Bank Limited |
IDBI Towerwtc Complex, Cuffe Parade,
Mumbai, Maha Rashtra - 400005, India |
A64513047 |
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.
CORPORATE INFORMATION
Subject is a Company incorporated under the Companies
Act 1956. The Company is a subsidiary of Welspun Corporation Limited under the
Companies Act 1956. The Company is engaged in manufacturing and selling of Gas
based Sponge Iron which is popularly known as DRI (Direct Reduced Iron) and HBI
(Hot Briquetted Iron). The Company caters mainly domestic market, however,
small volumeis exported based on buyers requirement.
CONTINGENT LIABILITY
Rs.In Millions
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
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
- Land Freehold
- Buildings
- Factory Buildings
- Plant and Machinery
- Office Equipments
- Furniture and Fixture
- Motor Vehicles
- Vehicles
In Tangible Assets
- Goodwill
PRESS RELEASE
AFTER JUNKING INFRA DEAL, APOLLO ROLLS BACK WELSPUN MAXSTEEL INVESTMENT
MUMBAI JUNE 10, 2013
Since 2011, when the deal was first announced, the Welspun Maxsteel expansion has been standstill because of the natural gas unavailability
Touted as one of the largest private equity deals in India just two years ago, the Apollo Global Management and Welspun Corporation Limited deal has gone sour. After junking the Rs 6750.000 Millions investment, Apollo has decided to sell its 12.5% stake in Welspun Maxsteel to Welspun Corporation at a steep 30% discount.
In 2011, the two had announced that Apollo will invest Rs 15750.000 Millions in two companies of Welspun while talks of investing another Rs 6750.000 Millions in Welspun Infratech were on going. In the gamut of Rs 15750.000 Millions investment, Apollo had agreed to pick up 12.5% stake in Welspun Maxsteel for Rs 1400.000 Millions. The company had also agreed to spend Rs 1300.000 Millions on account of capital expenditure in this sponge iron venture. The rest of the investment was for picking up 20% stake in Welspun Corporation.
As on date, the Rs 6750.000 Millions investment deal has fallen off. Welspun is focussing on its core business of textiles and pipe making and has put its plans for the infrastructure business on hold.
Apollo has decided to sell its stake in Maxsteel, as well. Welspun, in a stock exchange notification said, “The Company has agreed to acquire 12.5% stake of Insight Solutions Limited. in Welspun Maxsteel Limited. at 30% discount to the fair market value. With this, the ownership of the Company in Welspun Maxsteel Limited will rise to 99.85%.”
At the time of the deal in 2011, Mintoo Bhandari, managing director, Apollo Global Management (India) Advisors Limited, said, had said, "We think long term and we feel that gas-based direct reduced iron will be very effective in India in the long run. It is a very clean route to produce the kind of slabs the company wants to make. And Maxsteel’s plant is very apt for making high-quality steel slabs.”
Since 2011, when the deal was first announced, the Welspun Maxsteel expansion has been standstill because of the natural gas unavailability. The talks of investing Rs 6750.000 Millions in Welspun Infratech have also fallen off with Welspun focussing on its core business of pipe making.
As per the original plan of 2011, Apollo was to invest Rs 15750.000 Millions in Welspun Corporation and Welspun Maxsteel. The private equity player was also in talks with the company for an additional Rs 6750.000 Millions investment in Welspun’s infrastructure arm -- Welspun Infratech.
Off the three deals in Welspun, two (Maxsteel and Infratech) have fallen off in the last two years. Apollo now continues to be invested in Welspun Corp. Under the deal, Apollo was to pay Rs 13050.000 Millions to buy close to 20 % in Welspun Corp. The investment was through fully/compulsorily convertible debentures worth Rs 7880.000 Millions and global depository receipts worth Rs 5170.000 Millions. The debentures were supposed to be converted within 18 months at Rs 225 a share.
At 11.10 am on June 10, the shares of Welspun Corp were trading at Rs 45.95 per share on the Bombay Stock Exchange. The day Welspun and Apollo announced the deal in 2011, Welspun shares had risen 2.8 % to close at Rs 173.9 per share on the Bombay Stock Exchange.
However, the turmoil of the last two years has forced Welspun to rethink its plans. Welspun had three infrastructure companies, namely; Welspun Infratech, Welspun Projects and Welspun Leighton Contractors. The company has scaled back its plans for the infrastructure segment. Apollo is not investing Rs 6750.000 Millions in Welspun Infratech. Rs 5500.000 Millions worth, or, 72 % of the orderbook of Welspun Projects has been transferred to Welspun Leighton Contractors for a mere Rs 1150.000 Millions in exchange of a 7.5 % stake.
The investment in Welspun Maxsteel was also important in terms of the integration of its various businesses. Welspun is a big player in the steel pipes business. For Welspun Maxsteel, the company wanted backward integration in terms of iron ore mines and steel slab unit. This would have brought down its cost of sponge iron production which in turn was the raw material for its pipe business.
The plant has been running at a capacity utilisation of under 50% and at high costs because the company is being forced to buy natural gas from open market at higher rates than the contract signed with Reliance Industries for the Kg-D6 basin gas
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.59.45 |
|
|
1 |
Rs.91.24 |
|
Euro |
1 |
Rs.78.44 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
KVT |
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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.