MIRA
INFORM REPORT
|
Report Date : |
24.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
UTTAM VALUE STEELS LIMITED |
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Formerly Known
as : |
LLOYDS STEEL INDUSTRIES LIMITED |
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Registered
Office : |
4th Floor, Uttam House, 69, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
27.04.1970 |
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Com. Reg. No.: |
11-014621 |
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Capital
Investment / Paid-up Capital : |
Rs. 9021.173 millions |
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|
CIN No.: [Company Identification
No.] |
L27100MH1970PLC014621 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of manufacturing Steel and Capital Equipments and Turnkey Projects. |
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No. of Employees
: |
1366 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3300000 |
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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 well established company having a moderate track record.
There appears huge accumulated losses. However, trade relations are fair. Business is active. Payment terms 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.
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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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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 : |
4th Floor, Uttam House, 69, P.D Mello Road, Mumbai, 400009, Maharashtra, India |
|
Tel. No.: |
91-22-30418111 |
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Fax No.: |
91-22-30418260 |
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E-Mail : |
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Factory 1 : |
Lloyds Nagar, Bhugaon Link Road, Wardha, Maharashtra, India |
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Factory 2 : |
Plot No. A-5/5 and A-6/3 MIDC Industrial Area, Murbad District Thane, Maharashtra, India |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Mukesh R. Gupta |
|
Designation : |
Chairman |
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|
Name : |
Mr. Rajesh R. Gupta |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. B.L. Agarwal |
|
Designation : |
Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
B.com, LL.B. |
|
Experience : |
43 Years |
|
Date of Appointment : |
01.08.1970 |
|
Other Directorship: |
·
Lloyds Metals and Energy Limited ·
Vidarbha Power Limited |
|
|
|
|
Name : |
Mr. K.A. Krishna Rao |
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Designation : |
Director |
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Name : |
Mr. R. K. Bansal |
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Designation : |
IDBI Nominee |
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Name : |
Mr. B. L. Khanna |
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Designation : |
Special Director BIFR |
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Name : |
Mr. S. K. Gupta |
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Designation : |
ARCIL Nominee |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Katial |
|
Designation : |
Executive Director - Works |
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Name : |
Mr. Ajay Jain |
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Designation : |
Executive Director-Finance |
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Name : |
Mr. Ashok Tandon |
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Designation : |
President |
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Name : |
Mr. Rajendra Sharda |
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Designation : |
President - Corporate Accounts |
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Name : |
Mr. H. Padmanabhan |
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Designation : |
President – Finance |
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Name : |
Mr. O. Ghosh Dastidar |
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Designation : |
President |
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Name : |
Mr. P. R. Raviganeshan |
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Designation : |
Chief Financial Officer - Eng Div |
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Name : |
Mr. R. K. Sharma |
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Designation : |
Senior Vice President - HR & ADMN |
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Name : |
Mr. C. K. Rao |
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Designation : |
Senior Vice President - Steel |
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Name : |
Mr. R. P. Gupta |
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Designation : |
Vice President - Commercial |
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Name : |
Mr. Manish Bawa |
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Designation : |
Vice President – Marketing |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category
of Shareholder |
Total
No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
609472232 |
51.02 |
|
|
609472232 |
51.02 |
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|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
609472232 |
51.02 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
573153 |
0.05 |
|
|
205103234 |
17.17 |
|
|
1500 |
0.00 |
|
|
4389894 |
0.37 |
|
|
239379 |
0.02 |
|
|
210307160 |
17.61 |
|
|
|
|
|
|
269797592 |
22.59 |
|
|
|
|
|
|
59558834 |
4.99 |
|
|
31438801 |
2.63 |
|
|
13943874 |
1.17 |
|
|
201995 |
0.02 |
|
|
4185479 |
0.35 |
|
|
4500 |
0.00 |
|
|
9551900 |
0.80 |
|
|
374739101 |
31.37 |
|
Total Public
shareholding (B) |
585046261 |
48.98 |
|
Total (A)+(B) |
1194518493 |
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) |
1194518493 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of manufacturing Steel
and Capital Equipments and Turnkey Projects. |
GENERAL INFORMATION
|
No. of Employees : |
1366 (Approximately) |
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Bankers : |
· State Bank of India · Punjab and Sind Bank · Abu Dhabi Commercial Bank Limited |
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Facilities : |
(Rs.
In Millions)
Notes: LONG TERM
BORROWING 1. Details of Term Loan are as follows a) Phoenix ARC Pvt Ltd carries NIL interest. The loan is repayable in 36 monthly installments of Rs. 7.200 millions each, from 1st October 2009. b) ARCIL loan carries interest @ 11.00% p.a. The loan is repayable in 3 annual installments of Rs. 533.333 millions each along with interest , from 15th March 2013 c) IDBI loan carries interest @ 11.00% p.a. The loan is repayable in 56 monthly installments of Rs. 11.602 millions each along with interest, from 1st September 2011 d) Punjab and Sind Bank loan carries interest @ 7.00% p.a. The loan is repayable in quarterly installments of Rs. 11.775 millions each along with interest. e) SBI loan carries interest @ 14.75% p.a. The loan is repayable in 3 quarterly installments of Rs. 100.000 millions each along with interest , from 1st June 2012 2. Deferred Sales Tax loan from Government of Maharastra carries Nil Interest. 3. The details of Security of the loans are as follows:- a) Long Term Loans referred under secured loan, are secured by way of hypothecation of all the movables except book debts, including movable machinery, machinery spares, tools and accessories, present and future, subject to prior charges createdand/or to be created in favour of the Company’s Bankers for Working Capital facilities. b) Long Term Loans referred under secured loan above, to the extent of Rs. 3558.247 millions, are also secured by way of first mortgage and charge on Company’s immovable properties, both present and future ranking pari passu with other First Charge holders, subject to prior charge of SBI for housing colony for the employees at Wardha and specified movables, both present and future, hypothecated to Banks for Working Capital. c) Long Term Loans referred secured loan above, to the extent of Rs. 283.701 millions, are also secured by way of first mortgage and charge on Company’s immovable properties situated at Wardha, both present and future, ranking pari passu with other First Charge holders, subject to prior charge of SBI for housing colony for the employees at Wardha and specified movables, both present and future, hypothecated to Banks for Working Capital. d) The Term Loans of Rs. 35.397 millions from SBI are secured by exclusive mortgage of the housing colony situated at Wardha. e) Long Term Loan referred to in above, to the extent of Rs. 192.467 millions, cash credit facilities assigned by banks, is secured against hypothecation of Raw Materials, Work-in-process, Finished Goods, Stores and Spares, Book Debts etc., and by way of Second Charge on company’s immovable properties, and also uaranteed by some of the directors of the Company. f)
Cash Credit from Bank is secured against hypothecation of Raw Materials,
Work-in-process, Finished Goods, Stores and Spares, Book Debts etc., and by
way of Second Charge on Company’s immovable properties, and also guaranteed
by some of the Directors of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Todarwal and Todarwal Chartered Accountant |
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Address : |
12, Maker Bhavan No. 3, 1st Floor, 21, New
Marine Lines, Mumbai – 400020, Maharashtra, India |
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|
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Other Related
Party: |
· Indrajit Power Private Limited Shree
Global Tradefins Limited |
CAPITAL STRUCTURE
After 23.05.2012
Authorised Capital : Rs.20000.000 millions
Issued, Subscribed & Paid-up Capital : Rs. 12051.673 millions
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000000 |
Equity Shares |
Rs.10/- each |
Rs.15000.000 millions |
|
500000000 |
Preference Shares |
Rs.10/- each |
Rs. 5000.000 millions |
|
|
Total |
|
Rs.20000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
664518493 |
Equity Shares |
Rs.10/- each |
Rs.6645.185
millions |
|
2714451 |
Equity Shares forfeited (Amount Originally Paid up) |
|
Rs.13.234
millions |
|
236275420 |
Preference Shares (Redeemable) |
Rs.10/- each |
Rs. 2362.754 millions |
|
|
Total |
|
Rs. 9021.173 millions |
NOTES:
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
31.03.2012 |
|
|
|
IN Nos. |
Amount (Rs. in
millions) |
|
At the beginning of the period |
391338241 |
3913.382 |
|
Issued during the period |
273180252 |
2731.802 |
|
Outstanding at the end of the period |
664518493 |
6645.184 |
|
Preference shares |
31.03.2012 |
|
|
|
IN Nos. |
Amount (Rs. in
millions) |
|
At the beginning of the period |
236275420 |
2362.754 |
|
Issued during the period |
-- |
-- |
|
Outstanding at the end of the period |
236275420 |
2362.754 |
Terms/rights attached
to equity shares
The company has only one class of shares having a par value at Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.
Details of
Shareholders holding more than 5 % shares in the company
|
Particulars |
31.03.2012 |
|
|
Equity shares of
Rs.10/- each fully paid up |
IN Nos. |
% holding in the
class |
|
Shree Global Tradefin Limited |
18376329 |
27.65% |
|
Trump Investments Limited |
37404966 |
5.63% |
|
Asset Reconstruction Co. India. Limited |
48918450 |
7.36% |
|
Ultimate Logistics Solutions Private Limited |
81500000 |
12.26% |
|
Siddharth Holding Private Limited |
81500000 |
12.26% |
|
State Bank of India |
50261802 |
7.56% |
The Redeemable Preference Shares will be redeemed with a premium of 11.50 % in 6 (Six) Annual insatllments commecing from financial year 2016.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 (9 month) |
30.06.2011 (15 month) |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
9021.173 |
6289.371 |
|
(b) Reserves & Surplus |
|
(8203.220) |
(9280.222) |
|
(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) |
|
817.953 |
(2990.851) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
3842.687 |
7427.285 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
225.337 |
192.123 |
|
Total Non-current Liabilities (3) |
|
4068.024 |
7619.408 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
0.000 |
0.000 |
|
(b) Trade payables |
|
12943.858 |
12451.823 |
|
(c) Other current
liabilities |
|
6004.690 |
5861.518 |
|
(d) Short-term provisions |
|
0.000 |
0.000 |
|
Total Current Liabilities (4) |
|
18948.548 |
18313.341 |
|
|
|
|
|
|
TOTAL |
|
23834.525 |
22941.898 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
10748.567 |
11482.446 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
|
11.351 |
308.962 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
25.026 |
25.026 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
164.662 |
194.380 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
10949.606 |
12010.814 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
3768.367 |
2767.801 |
|
(c) Trade receivables |
|
1192.307 |
2022.563 |
|
(d) Cash and cash
equivalents |
|
497.212 |
489.302 |
|
(e) Short-term loans and
advances |
|
7427.033 |
5651.418 |
|
(f) Other current assets |
|
0.000 |
0.000 |
|
Total Current Assets |
|
12884.919 |
10931.084 |
|
|
|
|
|
|
TOTAL |
|
23834.525 |
22941.898 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
4604.370 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
7161.033 |
|
|
4] (Accumulated Losses) |
|
|
(15060.366) |
|
|
5] Subscription for Share Warrants |
|
|
421.250 |
|
|
NETWORTH |
|
|
(2873.713) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
7893.438 |
|
|
2] Unsecured Loans |
|
|
35.231 |
|
|
TOTAL BORROWING |
|
|
7928.669 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
5054.956 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
8161.419 |
|
|
Capital work-in-progress |
|
|
2250.099 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
25.026 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
2029.076 |
|
|
Sundry Debtors |
|
|
2018.621 |
|
|
Cash & Bank Balances |
|
|
304.875 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
3894.595 |
|
Total
Current Assets |
|
|
8247.167 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
7688.921 |
|
|
Other Current Liabilities |
|
|
5798.442 |
|
|
Provisions |
|
|
141.392 |
|
Total
Current Liabilities |
|
|
13628.755 |
|
|
Net Current Assets |
|
|
(5381.588) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
5054.956 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 (9 month) |
30.06.2011 (15 month) |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operation |
38481.637 |
40807.376 |
28987.206 |
|
|
|
Other Income |
434.693 |
463.661 |
44.709 |
|
|
|
TOTAL (A) |
38916.330 |
41271.037 |
29031.915 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
15738.282 |
21156.524 |
|
|
|
|
Purchases of Stock in Trade |
17183.856 |
12069.099 |
|
|
|
|
Employee benefits expense |
508.654 |
678.078 |
|
|
|
|
Other Expenses |
4947.608 |
6986.655 |
|
|
|
|
Exceptional Items ( Net ) |
132.240 |
(23.689) |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
(1009.742) |
(723.903) |
|
|
|
|
TOTAL (B) |
37500.898 |
40142.764 |
28150.560 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
1415.432 |
1128.273 |
881.355 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1084.994 |
975.679 |
489.703 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND
AMORTISATION (C-D) (E) |
330.438 |
152.594 |
391.652 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1064.984 |
1549.307 |
1166.820 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
(734.546) |
(1396.713) |
(775.168) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(734.546) |
(1396.713) |
(775.168) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(16457.079) |
(15060.366) |
(14279.557) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(17191.625) |
(16457.079) |
(15060.366) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Brokerage and Commission |
6.300 |
2.177 |
2.230 |
|
|
TOTAL EARNINGS |
6.300 |
2.177 |
2.230 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
935.102 |
1256.811 |
2244.245 |
|
|
|
Production Consumables, Stores and Spares |
345.012 |
0.000 |
391.411 |
|
|
TOTAL IMPORTS |
1280.114 |
1256.811 |
2635.656 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(1.75) |
(4.46) |
(3.65) |
|
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 |
13624.200 |
14997.800 |
15553.600 |
16212.500 |
|
Total Expenditure |
13463.200 |
14119.600 |
15012.400 |
15295.400 |
|
PBIDT (Excl OI) |
161.000 |
878.200 |
541.200 |
917.000 |
|
Other Income |
143.900 |
206.600 |
120.100 |
149.700 |
|
Operating Profit |
304.900 |
1084.800 |
661.300 |
1066.800 |
|
Interest |
263.200 |
457.700 |
415.400 |
521.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
41.800 |
627.200 |
245.900 |
545.500 |
|
Depreciation |
357.500 |
361.900 |
362.600 |
368.100 |
|
Profit Before Tax |
(315.700) |
265.200 |
(116.700) |
177.400 |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(315.700) |
265.200 |
(116.700) |
177.400 |
|
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 |
(315.700) |
265.200 |
(116.700) |
177.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 (9 month) |
30.06.2011 (15 month) |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1.89)
|
(3.38) |
(2.67) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.91)
|
(3.42) |
(2.67) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.09)
|
(6.18) |
(4.72) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.90)
|
0.47 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
4.70
|
(2.48) |
(2.76) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.18
|
0.91 |
0.61 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
------ |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
------ |
|
22] |
Litigations that the firm / promoter involved in |
------ |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
------ |
|
26] |
Buyer visit details |
------ |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
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 |
NOTE:
The register office address has been shifted
from “Trade World, ‘C’ Wing, 16th Floor, Kamala City,
Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India” to the
present address.
UNSECURED LOANS
|
Particulars |
31.03.2012 (Rs.
in millions) (9
months) |
30.06.2011 (Rs.
in millions) (15
months) |
|
Long Term
Borrowings |
|
|
|
Other Loans and
Advances |
|
|
|
Sales Tax Loan from Government of Maharashtra |
18.075 |
21.977 |
|
Sales Tax Deferral |
532.089 |
342.092 |
|
Total |
550.164 |
364.069 |
STEEL INDUSTRY
SCENARIO
The Indian Steel
Industry has entered into a new development stage riding high on the resurgent
economy and rising demand for steel. Rapid rise in production has resulted in
India becoming the 4th largest producer of crude steel and the
largest producer of sponge iron or DRI in the world. India’s real consumption
of steel recorded a growth of 4.4% during April-December 2011 over same period
of last year.
However, despite
some positive influence, overall steel consumption growth in the country was
subdued because of steep decline in growth in end use sectors and slow growth
in EDP. Sourcing of Raw material has turned into a major bottleneck for the
Steel Industry apart from rising input costs with sustained rise in inflation
and consequent high interest cost. With Government passing the land acquisition
bill and mining bill, the country’s steel industry is likely to regain
stability.
OPERATIONS AND
OVERALL PERFORMANCE
The Company achieved
a Turnover of Rs.40530.300 millions in
9 months period as against Rs.43653.600
millions in the previous financial year (15 months). The Company achieved an operating
Profit (PBDIT) of Rs.1547.700 millions
in the current period as against Rs.1104.600 millions in the previous period.
The Company incurred a loss of Rs.734.500
millions during the period (9 months) as against a loss of Rs.1396.700 millions in the previous financial
year (15 months) after providing depreciation of Rs.1065.000 millions (Previous period Rs.1549.300 millions).
STEEL PRODUCTS
Sale of steel
products during the period (9 months) has been Rs.22396.900 millions as against the previous period (15 months)
figure of Rs.28419.600 millions.
Export during the period of 9 months is Rs.107.700 millions as against Rs. 133.200 millions recorded during the previous period of 15 months.
Industry structure
and development : .
In 2011 the world crude steel production reached 1527 million tones (mt)
and showed a growth of 6.8% over 2010. China
remained the largest crude steel producer in the world. Steel production
in Asia was around 988 million tones registering a growth of 7.9% over last
year.
Indian Steel
Industry has grown from a production of 2 million tones crude steel in 1951 to
nearly 67 million tones in 2010. The world steel Association, a premiere global
steel producer’s association in its annual meet held in Paris during October
2011 has projected a growth of 7.9% for the Indian steel industry in 2012. The
Indian steel industry plays an important role in the country’s economic growth.
Consumption of
Steel is taken to be an indicator of economic development. Growth of the Indian
Steel Industry looks positive but the performance was slow during April-
December 2011. This was because of efforts of government to check the sustained
rise in inflation. The frequent increase in lending rates, made with the object
to contain inflation, have resulted in a high cost of capital.
Indian steel
industry faces the critical dilemma of increasing cost of funds, which rends to
impact margins as well as capital expenditure plans.
The engineering
industry in India manufactures a wide range of products, with heavy engineering
goods accounting for bulk of the production. The development of Engineering
Industry depends upon the development of core sectors and the infrastructure
sector. The Engineering Segment is highly competitive in view of tough
competition from foreign companies/agencies and giant public/private
sector
undertakings.
Segment-wise
performance:
The Company is
mainly in the business of manufacturing Steel and Capital Equipments and
Turnkey Projects. The Company has no activity outside India except export of
steel products manufactured in India.
Outlook:
The outlook for
the domestic steel industry looks positive. The country has acquired a central
position on the global steel map with its giant steel mills, continuous
modernization and up gradation of old plants, improving energy efficiency, and
backward integration into global raw material sources. However the challenges
before the Indian steel industry and the emerging economies are also serious
and need immediate attention. Rising prices of key raw materials like iron ore
and coking coal, inflationary pressure, seasonal fall in demand for automobile
and white goods, stock market crash etc have also posed certain threats.
Inspite of this
the future of steel industry indeed lies in India which is blessed with
abundant mineral resources including iron ore and non-coking coal. With
acquisition of coking coal mines by Indian companies in countries like South
Africa and Australia, India is claiming her rightful place as the second
largest steel producer in the league of nations.
The Company continues
to compete and participate in the tenders of various Public and Private Sector
giants and is hopeful of bagging fresh orders for engineering products. The
Engineering products of the company has been approved for its engineering
skills/works/services by various premier consulting companies such as MECON,
LRIS and also approved by Industrial Boiler Regulatory Authority (IBR).
WEBSITES DETAILS:
PRESS RELEASE:
UTTAM GALVA GROUP CONFIDENT OF TURNING LLOYDS STEEL AROUND
December 29, 2012
Uttam Galva Group , which recently acquired a majority stake in the ailing Lloyds Steel, on Friday said that it would turn around the fortunes of the acquired company and planned doubling of the operating profit in about a year.
"We are confident of turning the company around. We hope that Lloyds Steel will attain net-profit levels in the next one year and its EBIDTA will double in that period," deputy managing director of Uttam Galva Steels, Ankit Miglani told mediapersons in Mumbai.
Uttam Galva Group, promoted by the Migalni family, acquired a 58.35-percent stake in Lloyds Steel, which posted a net loss of Rs 2130.000 millions in the last two financial years. Lloyds Steel, with a steel-making capacity of 1 million tonne per annum, has a total long-term debt of Rs 4410.000 millions on its books.
The company's board has now been reconstituted after the takeover by the Miglani family, though the erstwhile promoters would continue to hold their stake at about 21 percent for now.
Talking about the revival strategy for the company, Miglani said, "Lloyds Steel raised money for working capital from the secondary and tertiary markets which increased its cost of funds by 25 percent. Post acquisition, we are planning to raise working capital from public-sector banks, which will significantly reduce the cost of funds."
He also said it has already started discussions with a few PSU banks and expects to receive a letter of credit worth Rs 15000.000 millions. "We will also increase the operational efficiency with better product mix," Migalni said, adding that the company plans to increase the production capacity to 0.75 million tonne per annum against the current 0.5 million tonne.
Referring to reduction of debt, Miglani said the company is rather under-leveraged with a debt-equity ratio of 1:1. Responding to a query on merger or delisting plans for the company, he said the Uttam group has invested Rs 6470.000 millions in Lloyds Steel, including Rs 770.000 millions on an open offer to buy shares from the market but the new promoters have no plans to delist or merge the company with Uttam Galva as of now.
However, the name of the company may be changed. "We are mulling to change the name of the company to Uttam Value Steels. However, nothing has been finalised yet," Miglani said.
Talking about infusionof funds by a strategic investor, he said," We are open to the idea of strategic investors coming on board by way of private equity." When asked if ArcelorMittal will invest in the company, Miglani said the company was open to the idea. ArcelorMittal holds around 33 percent in Uttam Galva Steel.
FIXED ASSETS:
·
Land
·
Building
·
Plant Machinery
·
Computer
·
Electrical Installation
·
Office Equipment
·
Furniture and Fixtures
·
Motor Vehicles
·
Railway Siding
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.59.35 |
|
|
1 |
Rs.92.11 |
|
Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
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 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
31 |
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.