MIRA INFORM REPORT
|
Report Date : |
23.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
Pipe
Nagar, Village-Sukeli, N.H.17, B.K.G. Road, Roha, Raigad -402 126,
Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
10.05.1988 |
|
|
|
|
Com. Reg. No.: |
11-080545 |
|
|
|
|
Paid-up Capital
: |
Rs.352.667 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1988PLC080545 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company's shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacturer of Seamless Pipes. |
|
|
|
|
No. of Employees
: |
1165 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 110300000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Listing : |
Yes |
|
|
|
|
Comments : |
Subject is a well establishment and a reputed company having fine
track record. There appears slight dip in the profitability during 2012.
However, financial position of the company appears to be sound. Trade
relations are reported as decent. Business is active. Payments are reported
to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
06.08.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
06.08.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Pipe
Nagar, Village-Sukeli, N.H.17, B.K.G. Road, Roha, Raigad -402 126,
Maharashtra, India |
|
Tel. No.: |
91-2194-238511/ 12/ 238567/ 69 |
|
Fax No.: |
91-2194-238513 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
5000 sq ft |
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
Jindal
Corporate Centre, Plot No 30, Institutional Sector 44, Gurgaon – 122 002,
Haryana, India |
|
Tel. No.: |
91-124-2574325,
2574326, 4624000 |
|
Fax No.: |
91-124-2574327,
4624215 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
2nd Floor, 5 Pusa
Road, New Delhi-110005, India |
|
|
|
|
Factory 2 : |
D –
114, Industrial Area, Vile Bhagad, Taluka Mangaon, District Raigad,
Maharashtra, India |
|
|
|
|
Factory 3 : |
Village
Nivknae, Taluka Patan, District Satara, |
|
|
|
|
Factory 4 : |
Pokaran,
District Jaisalmer, Rajasthan, India |
|
|
|
|
Mumbai Office : |
402,
Sarjan Plaza, 100, Dr. Annie Besant Road, Opposite Telco Showroom, Worli,
Mumbai-400018, Maharashtra, India |
|
|
|
|
Kolkata Office : |
Sukh Sagar
Apartment, Flat No.8A, 8th Floor, 2/5, Sarat Bose Road,
Kolkata-700020, West Bengal, India |
|
|
|
|
Chennai Office : |
3A,
Royal Court, 44, Venkatanarayan Road, T Nagar, Chennai-600017, Tamilnadu,
India |
|
|
|
|
New Delhi Office : |
1/23-B, 1st Floor, Asaf Ali Road, New Delhi-110002, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. D.P. Jindal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
|
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. U.C. Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D.K. Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjeev Rungta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P. Raj |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
|
|
Designation : |
VP and Company Secretary |
|
|
|
|
Name : |
Mr. Anil Jain |
|
Designation : |
CFO |
|
|
|
|
Audit Committee : |
Mr. U.C. Agarwal – Chairman Mr. D.P. Jindal Mr. D.K. Parikh Mr. Sanjeev Rungta |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
|
|
(1) Indian |
|
|
|
|
Individuals / Hindu Undivided Family |
2133582 |
3.02 |
|
|
|
36990488 |
52.44 |
|
|
|
39124070 |
55.47 |
|
|
(2) Foreign |
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
39124070 |
55.47 |
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds / UTI |
5675197 |
8.05 |
|
|
Financial Institutions / Banks |
33382 |
0.05 |
|
|
|
1700489 |
2.41 |
|
|
|
10806631 |
15.32 |
|
|
Sub Total |
18215699 |
25.83 |
|
|
(2) Non-Institutions |
|
|
|
|
|
5089038 |
7.22 |
|
|
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
4645792 |
6.59 |
|
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
1358716 |
1.93 |
|
|
|
2100107 |
2.98 |
|
|
|
337280 |
0.48 |
|
|
Trusts |
1762827 |
2.5 |
|
|
Sub Total |
13193653 |
18.71 |
|
|
|
31409352 |
44.53 |
|
|
|
70533422 |
100 |
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0 |
|
|
|
0 |
0 |
|
|
(2) Public |
0 |
0 |
|
|
Sub Total |
0 |
0 |
|
|
Total (A)+(B)+(C) |
70533422 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Seamless Pipes. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Seamless Pipe |
MT |
350000 |
201279 |
|
ERW Pipe |
MT |
200000 |
115210 |
|
Wind Power (Units
Generated) |
KWH |
61320000 |
7773116 |
GENERAL INFORMATION
|
Customers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
No. of Employees : |
1165 (Approximately) |
||||||||||||||||||
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|
|
||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kanodia Sanyal and Associates Chartered Accountant |
|
Address : |
New Delhi, India |
|
|
|
|
Joint Venture Companies : |
Hydril Jindal International Private Limited Gondkhari Coal Mining Limited |
|
|
|
|
Associates : |
Jindal Pipes (Singapore) Pte. Limited (w.e.f.06.06.2011) |
|
|
|
|
Wholly Owned Subsidiaries : |
Maharashtra, Seamless (Singapore) Pte. Limited (w.e.f.06.06.2011) Maharashtra Seamless Finance Limited (w.e.f.08.02.2012) |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.5/- each |
Rs. 400.000 Millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs. 200.000 Millions |
|
|
TOTAL |
|
Rs. 600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70533422 |
Equity Shares |
Rs.5/- each |
Rs. 352.667
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
352.667 |
352.667 |
352.667 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
27245.452 |
25038.908 |
22523.066 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
27598.119 |
25391.575 |
22875.733 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5.340 |
0.000 |
18.682 |
|
|
2] Unsecured Loans |
303.709 |
28.295 |
782.316 |
|
|
TOTAL BORROWING |
309.049 |
28.295 |
800.998 |
|
|
DEFERRED TAX LIABILITIES |
594.020 |
448.382 |
434.388 |
|
|
|
|
|
|
|
|
TOTAL |
28501.188 |
25868.252 |
24111.119 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13226.817 |
9988.872 |
10171.101 |
|
|
Capital work-in-progress |
98.853 |
2451.252 |
1907.182 |
|
|
Silver Coins in hand |
0.064 |
0.038 |
0.030 |
|
|
|
|
|
|
|
|
INVESTMENT |
4735.878 |
5164.548 |
6283.963 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7171.863
|
5412.148 |
5140.016
|
|
|
Sundry Debtors |
3622.360
|
3123.661 |
1825.547
|
|
|
Cash & Bank Balances |
201.409
|
101.716 |
83.807
|
|
|
Other Current Assets |
12.165
|
8.614 |
0.000
|
|
|
Loans & Advances |
2598.470
|
2446.584 |
428.636
|
|
Total
Current Assets |
13606.267
|
11092.723 |
7478.006 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1474.991
|
1038.958 |
944.764 |
|
|
Other Current Liabilities |
1597.576
|
1634.319 |
184.017
|
|
|
Provisions |
94.124
|
155.904 |
600.382
|
|
Total
Current Liabilities |
3166.691
|
2829.181 |
1729.163 |
|
|
Net Current Assets |
10439.576
|
8263.542 |
5748.843
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
28501.188 |
25868.252 |
24111.119 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22916.860 |
17612.714 |
15931.726 |
|
|
|
Other Income |
765.616 |
920.675 |
529.393 |
|
|
|
TOTAL (A) |
23682.476 |
18533.389 |
16461.119 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
15970.765 |
11027.917 |
|
|
|
|
Employee benefits expenses |
403.809 |
301.488 |
|
|
|
|
Other expenses |
3497.045 |
2538.376 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock
in trade |
(867.667) |
(488.165) |
|
|
|
|
TOTAL (B) |
19003.952 |
13379.616 |
11932.733 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4678.524 |
5153.773 |
4528.386 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
51.889 |
31.535 |
34.032 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4626.635 |
5122.238 |
4494.354 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
200.838 |
184.915 |
183.410 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
4425.797 |
4937.323 |
4310.944 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1318.464 |
1520.693 |
1464.877 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3107.333 |
3416.630 |
2846.067 |
|
|
|
|
|
|
|
|
|
|
Income tax
adjustment relating to earlier years / wealth tax |
0.000 |
0.000 |
(0.128) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
433.979 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
NA |
NA |
423.201 |
|
|
|
Dividend Distribution Tax on Proposed
Dividend |
NA |
NA |
70.288 |
|
|
|
Transfer to General Reserve |
NA |
NA |
2250.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
536.429 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2298.312 |
587.845 |
3347.669 |
|
|
TOTAL EARNINGS |
2298.312 |
587.845 |
3347.669 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3857.830 |
3126.997 |
1942.445 |
|
|
|
Stores & Spares |
70.935 |
43.724 |
154.306 |
|
|
|
Capital Goods |
125.177 |
495.544 |
255.725 |
|
|
TOTAL IMPORTS |
4053.942 |
3666.265 |
2352.476 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
44.05 |
48.44 |
40.35 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3916.200 |
4807.200 |
3916.200 |
|
Total Expenditure |
3578.700 |
4256.300 |
3578.700 |
|
PBIDT (Excl OI) |
337.500 |
550.900 |
337.500 |
|
Other Income |
152.000 |
89.600 |
152.000 |
|
Operating Profit |
489.500 |
640.500 |
489.500 |
|
Interest |
17.500 |
22.400 |
17.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
472.000 |
618.100 |
472.000 |
|
Depreciation |
91.300 |
94.100 |
91.300 |
|
Profit Before Tax |
380.700 |
524.000 |
380.700 |
|
Tax |
96.700 |
90.700 |
96.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
284.000 |
433.300 |
284.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
284.000 |
433.300 |
284.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
13.12
|
18.43 |
17.29
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.31
|
28.03 |
27.06
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.49
|
23.42 |
24.43
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.19 |
0.19
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.01
|
0.00 |
0.04
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.30
|
3.92 |
4.32
|
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 |
No |
|
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 |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
No |
|
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 |
Yes |
|
Unsecured Loan |
Rs.
In Millions 31.03.2012 |
Rs.
In Millions 31.03.2011 |
|
Long Term
Borrowings |
|
|
|
Term Loan |
|
|
|
From Other Parties |
10.435 |
11.633 |
|
Short Term
Borrowings |
|
|
|
Loans repayable on demand from banks |
293.274 |
16.662 |
|
|
|
|
|
TOTAL |
303.709 |
28.295 |
|
*Loan repayable
in 7 yearly installments from the date of disbursement of loan. |
||
RESULTS OF OPERATIONS
Revenue from
Operations during the year increased to Rs. 22916.900 Millions against Rs.
17612.700 Millions in the previous year showing a strong growth of 30%. Profit
before tax for the year was Rs. 4425.800 Millions as against Rs. 4937.300
Millions in the previous year. Profit after tax and adjustments for the year
was Rs. 3107.300 Millions as against Rs. 3416.600 Millions in the previous
year.
EXPANSION
The
Directors are pleased to inform that its new state of the art manufacturing
facility of 6 Seamless plant at Vile-Bhagad Industrial Area, Near Mangaon
(Maharashtra) has commenced operations during the year. The Company is using
MPM Technology which would provide good quality, higher productivity and yield.
The added advantage of this mill is that besides manufacturing dril pipes, it
would be able to manufacture high thickness as well as long length pipes. This
will help the Company to broaden its product base in Oil and Gas, Boiler and
Automobile segment.
The
capacity of the plant is 200000 TPA and with this, total capacity to manufacture
seamless pipes of the Company has increased to 550000 TPA.
With
the commissioning of this facility, the Company would be able to substantially
improve its sales volume in coming years.
OTHER PROJECTS
The
Company has also commissioned 5 MW (AC) Solar Power project on 6th January
2012. The project is located at Pokaran, District Jaisalmer, Rajasthan.
The
project was allotted under Jawaharlal Nehru National Solar Mission (JNNSM) by
NTPC Vidyut Vyapar Nigam Limited (NVVN), the Nodal agency under Ministry of New
and Renewable Energy (MNRE).
The
plant is running successfully and has achieved target level in short duration,
which demonstrates the ability of the Company to execute projects efficiently.
The
Company is intensively working on backward integration project to make steel
billets. The Company is contemplating various options including Greenfield
project and exploring opportunity for acquisition in order to expedite the
process and reduce the lead time involved in Greenfield project.
Ministry
of Coal, Government of India, had allocated a Non Coking Coal Block to the
Company near Nagpur (Maharashtra) in a joint Venture Company named Gondkhari
Coal Mining Limited, an important raw material to produce DRI required for
Steel making. This would facilitate the proposed billet manufacturing
operations.
MANAGEMENT DISCUSSION AND ANALYSIS FORWARD LOOKING STATEMENTS The statement in the Directors` Report and Management Discussion and Analysis Report contains "forward-looking statements" about the business, financial performance, skills and prospects of the Company. Statements about the plans, intentions, expectations, beliefs, estimates, predictions or similar expression for future are forward-looking statements. Forward-looking statements should be viewed in the context of many risk issues, and events that could cause the actual performance to be different from that contemplated in the Directors` Report and Management Discussion and Analysis Report, including but not limited to, risks arising from uncertainties as to future Oil & Gas prices and their impact on investment programs by Oil and Gas companies, steel prices worldwide and domestic, economic and political conditions. We cannot assure that outcome of this forward looking statement will be realized.
The Company disclaims
any duty to update the information
given in the aforesaid report.
MARKET SITUATION
The after-effects of the global financial crisis
in 2008 have continued to cast its shadow on the economies
around the world even now. The crisis
has brought out the
vulner abilities in global system
of regulation and
operation of
financial and fiscal processes.
After staging a good recovery in 2010, growth in
global economic output slowed down considerably in 2011.
Against a growth rate of 5.3% recorded in 2010, global output is estimated to
have grown by only 3.9% in 2011. Growth in advanced economies slowed down to
1.6% in 2011 against 3.2% in 2010
primarily due to government debt crisis in the Eurozone, contraction of the
Japanese economy and sluggish recovery of growth in the US market.
Capital flows
into emerging markets and
developing economies including India declined
and remained volatile caused by
uncertainty n financial system in developed world. This also led to sharp
fluctuation in exchange rates in many of
these economies.
The Indian rupee
was also adversely affected and recorded sharp decline and heavy fluctuations
were observed causing great difficulty to businesses in general that are exposed to foreign
exchange risk
The world economy is passing through a difficult
phase and is expected to grow by a mere
3.5% in 2012. The Indian economy saw considerable reduction in growth during the year 2011-12
and was below 6.5% as compared to 8.4% in the year 2010-11. A tight monetary
policy adopted by RBI with the objective to
balance out growth with inflation and lower globaldem and, accentuated by hardening international crude prices led to
lower growth rate of below 6% during
second half of the year.
As per RBI`s
monetary policy recently announced, the economy is expected to slow down
further. Significant downside risk is seen especially due to high crude oil
prices and slippages on fiscal front which could lead to
high inflation and lower private investment.
In this
background, the Company achieved
a growth of 24% in
sales in quantitative terms
of seamless pipes. This
has been due
to robust marketing, both
on the international
and domestic front
and higher
productivity.
INDUSTRY COMPOSITION
Seamless steeltubes find their application in
specialareas where strength is the prime
consideration. The seamless tubes employed for rotary drilling must possess
great torsion strength and high resistance to collapse and to withstand high external pressures. The oil
refining, chemical and pressure
steam industries also
demand special seamless
steel tubes/pipes to withstand temperatures. Seamless tubes
find application in the manufacture
of bearing, automobile
parts, drill rods,
hydraulic cylinders, gas cylinders, boilers etc.
A seamless
tube has homogenous wall without any weld or joint along
its length. The homogenous wall and smooth inner surface of
the tube is not subjected
to weaknesses caused
by internal weld, bend
and different chemical
compositions and micro structures at the weld zone. As such, there is no danger of preferential corrosion caused by
self-engendered galvanic action. This
makes the seamless tube a natural
choice for applications where strength and resistance to
corrosion are of high importance. The end-uses of seamless steel tubes are
diversified.
The encouraging development of indigenous
end-using industries stimulated the growth of direct consumption of seamless
steel tubes. Survey reveals that oilsector accounts for around 60
percent ofthe total consumption while the share of bearings, automobile and
boiler sector together are estimated at about
30 percent and
the rest are
consumed in other
miscellaneous engineering industries.
Seamless pipes and
tubes are produced in several steel grades depending on application, from ordinary carbon steel to
high alloy and stainless steel. With many
projects in pipeline, the
consumption of seamless
pipes is
expect to grow.
EXPANSION
The Company
has successfully commissioned the 6" Seamless Pipe Plant
at Mangaon. This plant has also
got the facility of manufacturing
Drillpipes and other special
grade pipes for boilers and other value added
products.
The Project
has been awarded the status of
"Mega Project" by
State Government of Maharashtra. With the commissioning of this
capacity the total capacity for
manufacturing of seamless pipes has increased to 550,000
metric tons per
annum.
CONTINGENT
LIABILITIES
a) Letters of Credits
- Rs. 2193.035 Millions (Previous Year Rs. 177.310 Millions)
b) Bank Guarantees
and Others-Rs. 1737.290 Millions (Previous Year Rs. 1753.465 Millions)
c) Sales Tax Demand
under Appeal - Rs. 0.465 Million (Previous Year Rs. 0.465 Million)
d) Income Tax Demand
under Appeal - Rs. 3.558 Millions (Previous Year Rs. 3.558 Millions)
e) Excise Duty Demand
under Appeal - Rs. 190.326 Millions (Previous Year Rs. 166.117 Millions)
f) Indian Oil
Corporation Limited (IOCL) had raised a claim of Rs. 179.848 Millions during
the financial year 2008-09 and against the above mentioned claim a performance
bank guarantee of Rs. 85.279 Millions was given to IOCL, which was realized by
them, and an equivalent amount is charged in the Profit and Loss Account in
financial year 2008-09. The matter is still under dispute and arbitration
proceeding is going on. Any further demand, if any, will be provided for on the
date of final settlement.
FIXED ASSETS
·
Land
·
Shed and Building
·
Plant and Machinery
·
Office Equipment
·
Computer
·
Furniture and Fixtures
·
Vehicles
UNAUDITED
(STANDALONE) FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND NINE MONTH
ENDED 31ST DECEMBER 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
3916.200 |
4807.200 |
13933.100 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
3176.800 |
3233.100 |
10140.200 |
|
|
Purchase of Stock In Trade |
-- |
-- |
-- |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
(438.400) |
126.800 |
(604.600) |
|
|
Employee Benefits Expenses |
110.300 |
123.500 |
354.800 |
|
|
Depreciation and Amortization Expenses |
91.300 |
94.1000 |
271.900 |
|
|
Other Expenses |
730.000 |
772.900 |
2346.000 |
|
|
f) Total |
3670.000 |
4350.400 |
12508.300 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
246.200 |
456.800 |
1424.800 |
|
|
|
|
|
|
|
4. |
Other Income |
152.000 |
89.600 |
425.200 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
398.200 |
546.400 |
1850.000 |
|
|
|
|
|
|
|
6. |
Interest |
17.500 |
22.400 |
52.300 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
380.700 |
524.000 |
1797.700 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
380.700 |
524.000 |
1797.700 |
|
|
|
|
|
|
|
10. |
Tax Expense |
96.700 |
90.700 |
426.800 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
284.000 |
433.300 |
1370.900 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
284.000 |
433.300 |
1370.900 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
352.700 |
352.700 |
352.700 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not
Annualised |
4.03 |
6.14 |
19.43 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
31409352 |
31435268 |
31409352 |
|
|
- Percentage of Shareholding |
44.53% |
44.57% |
44.53% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
39124070 |
39098154 |
39124070 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
55.47% |
55.43% |
55.47% |
|
Particulars
|
31.12.2012 |
|
Pending at the beginning of the quarter |
1 |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31/12/2012 |
30/09/2012 |
31/12/2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Pipes and Tubes |
3878.200 |
4741.00 |
13781.800 |
|
|
|
Power - Electricity |
38.000 |
66.200 |
151.300 |
|
|
|
Others / Unallocated |
152.000 |
89.600 |
425.200 |
|
|
|
|
|
|
|
|
|
|
Total Income |
4068.200 |
4896.800 |
14358.300 |
|
|
|
|
|
|
|
|
|
|
Less: Inter segment revenue |
9.700 |
40.800 |
67.700 |
|
|
|
|
|
|
|
|
|
|
|
4058.500 |
4856.000 |
14290.600 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Pipes and Tubes |
226.500 |
408.700 |
1326.100 |
|
|
|
Power - Electricity |
19.700 |
48.100 |
98.700 |
|
|
|
Others / Unallocated |
152.000 |
89.600 |
425.200 |
|
|
|
|
|
|
|
|
|
|
Less: i) Interest & Financial Charges |
17.500 |
22.400 |
52.300 |
|
|
|
|
|
|
|
|
|
|
Total Profit Before Tax |
380.700 |
524.000 |
1797.700 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Pipes and Tubes |
14106.700 |
14448.800 |
14106.700 |
|
|
|
Power - Electricity |
827.900 |
873.800 |
827.900 |
|
|
|
Others / Unallocated |
7943.400 |
7667.000 |
7943.400 |
|
|
|
|
22878.000 |
22989.600 |
22878.000 |
|
|
|
Less : Unallocable Liabilities - Assets |
514.600 |
910.200 |
514.600 |
|
|
|
|
|
|
|
|
|
|
Total |
22363.400 |
22079.400 |
22363.400 |
NOTES
1.
The above financial results were reviewed by the Audit
Committee and approved by the Board of Directors at its meeting held on 7th
February 2013 and have undergone “Limited Review” by the Statutory Auditors of
the Company.
2.
Figures for the previous periods have been re-grouped
/ rearranged / recast to make them comparable with the figures of the current
period.
WEBSITE DETAILS:
PROFILE:
Subject,
is one of the flagship company of Rs.30000.000 millions D.P. Jindal Group. Due to
our willingness to take on big challenges and see them through, and a
persevering policy of "no compromise on quality", subject has evolved into a Rs.21830.000 millions Seamless Pipes Manufacturing Company by
2008-2009 from Rs.1050.000 millions in 1994-1995.
They pride theirselves in providing a whole range of high-class, customizable and innovative seamless pipes and tubes using state-of-art technology. They also manufacture ERW pipes along with the seamless pipes. This ERW plant is India's first and only Plant capable of manufacturing ERW Pipes upto 21" Outer Diameter. They have also diversified into Power Generation with 7 MW wind power project at Satara Maharashtra, thus committing theirselves to environment friendly GREEN POWER.
Their
engineers and technicians are among the best and they can boast quality and
productivity levels on par with those of any seamless pipes manufacturing
facilities in the world.
Listed are years and the associated events:
· 1988 Incorporated
· 1991 IPO Launched
· 1992 7" Seamless plant Commissioned
· 1993 API Certification and Production of Casing and Line Pipes
· 1995 IBR Certification by Central Boiler Board
· 1996 ISO Certification by BVQI
· 2000 21" ERW Plant OD Commissioned
· 2001 7MW Wind Power Plant Commissioned
· 2004 14" Seamless plant Commissioned
·
2005 JV facility with Hydril
· 2005 FCCB issue of USD 75 Million (entirely converted in Indian Equity Shares)
· 2006 Coating facility Commissioned.
·
2007 6" Seamless Plant having 200000 TPA
acquired from
· 2008 JV Arrangement with Tenaris reconstituted (post Hydril acquisition)
·
2008 Allocation of Non Coking Coal Block near
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to
suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceeding for making any
prohibited payments or other improper payments to government officials for
engaging in prohibited transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 53.33 |
|
|
1 |
Rs. 82.55 |
|
Euro |
1 |
Rs. 70.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.