MIRA
INFORM REPORT
|
Report Date : |
12.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHUSHAN STEEL LIMITED (w.e.f. 2007) |
|
|
|
|
Formerly Known
As : |
BHUSHAN STEEL AND STRIPS LIMITED |
|
|
|
|
Registered
Office : |
F Block, 1st Floor, International Trade Tower, Nehru Place,
New Delhi – 110019 |
|
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|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
07.01.1983 |
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|
|
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Com. Reg. No.: |
55-014942 |
|
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|
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Capital Investment
/ Paid-up Capital : |
Rs. 1454.811 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1983PLC014942 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELB07323B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB1247M |
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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
: |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils and
Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
|
|
|
|
No. of Employees
: |
5828 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 360000000 |
|
|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a fine track record. There
appears a dip in the profitability during current year. However, general financial
position of the company is good. The share price are quoted high on stock
exchange. Trade relations are reported
as fair. Business is active. Payment are reported to be regular and as per
commitment. The company can be considered good for normal for business dealings at
usual trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another megatrend
happening. The World order is changing as economic power shifts from West to
East. According to McKinsey study, it took Britain more than 100 years to
double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities : “A+” |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
02.08.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities : A1+ |
|
Rating Explanation |
Very strong degree of safety and low credit
risk. |
|
Date |
02.08.2013 |
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/
Corporate Office : |
F Block, 1st
Floor, Nehru Place, International Trade Tower, New Delhi – 110019, India |
|
Tel. No.: |
91-11-26462373 (5 Lines) / 42297777 / 42295555 / 39194000 |
|
Fax No.: |
91-11-26478750 /
26415845 |
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E-Mail : |
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|
Website : |
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Factory 1 and Marketing Office – Sahibabad : |
23, Site IV, Sahibabad
Industrial Area, Sahibabad, District |
|
Tel. No.: |
91-120-2770601-
04/ 3028000-09 |
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Fax No.: |
91-120-2770509/
4100574 |
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E-Mail : |
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Factory 2 : |
28/4, Site IV,
Sahibabad Industrial Area, Sahibabad, District |
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Factory 3 : |
Village Nifran, Savroli
and Dehvali, Taluka – Khalapura, (Near Khopoli), District Raigad – 410 203, |
|
Tel. No.: |
91-2192-274146/
302000 |
|
Fax No.: |
91-2192-274294/
274354 |
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E-Mail : |
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Factory 4 : |
Narendra Pur, P O
Shibapur, Village Meramandali, District – Dhenkanal – 759 121, |
|
Tel. No. : |
91-6764-300000/
326443/ 325133/ 325857 |
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E-mail : |
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Branches : |
Located at: ·
Agra ·
Ahmedabad ·
Aurangabad ·
Bengaluru ·
Bhubaneshwar ·
Chandigarh ·
Chennai ·
Coimbatore ·
Dehradun ·
Delhi ·
Faridabad ·
Gurgaon ·
Guwahati ·
Haldwani ·
Hyderabad ·
Hosur ·
Indore ·
Jaipur ·
Jammu ·
Kullu ·
Kolkata ·
Kanpur ·
Ludhiana ·
Mandigovindgarh ·
Mumbai ·
Pilkhuwa (Hapur) ·
Pune ·
Parwanoo ·
Rishikesh ·
Varanasi |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Brij Bhushan
Singal |
|
Designation : |
Chairman |
|
Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
|
Date of Birth/
Age: |
20.11.1936 |
|
Date of
Appointment: |
15.01.1987 |
|
|
|
|
Name : |
Mr. Neeraj Singal |
|
Designation : |
Vice Chairman and Managing Director |
|
Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
|
Date of Birth/
Age: |
23.04.1968 |
|
Qualification: |
Graduate |
|
Date of
Appointment: |
01.04.1992 |
|
|
|
|
Name : |
Mr. Nittin Johari |
|
Designation : |
Whole-time
Director [Finance] |
|
Qualification: |
M.Com, FCA |
|
Date of
Appointment: |
06.01.1995 |
|
|
|
|
Name : |
Mr. Rahul Sen Gupta |
|
Designation : |
Whole-time
Director [Technical] |
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|
|
|
Name : |
Mr. P.K. Aggarwal |
|
Designation : |
Whole time Director [Commercial] |
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|
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|
Name : |
Mr. Mohan Lal |
|
Designation : |
Director |
|
Address: |
19-A, Udham Singh Nagar, |
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|
|
|
Name : |
Mr. B B Tondon |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. V.K. Mehrotra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. V. Surya
Narayana |
|
Designation : |
Director |
|
Address: |
12-2-417/A/11, Gudimalkapur,
Jaya Nagar, Hydedrabad - 500028, Andhra Pradesh, India |
|
Date of Birth/
Age: |
05.04.1946 |
|
Date of
Appointment: |
25.09.2010 |
|
|
|
|
Name : |
Mrs. Sunita
Sharma |
|
Designation : |
Nominee Director
of LIC |
KEY EXECUTIVES
|
Name : |
Mr. O. P. Davra |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
129002355 |
56.96 |
|
|
31171540 |
13.76 |
|
|
160173895 |
70.72 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
160173895 |
70.72 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
19350 |
0.01 |
|
|
4405 |
0.00 |
|
|
6208543 |
2.74 |
|
|
4036368 |
1.78 |
|
|
10268666 |
4.53 |
|
|
|
|
|
|
44154633 |
19.50 |
|
|
|
|
|
|
3371144 |
1.49 |
|
|
8288011 |
3.66 |
|
|
228740 |
0.10 |
|
|
123380 |
0.05 |
|
|
105360 |
0.05 |
|
|
56042528 |
24.74 |
|
Total Public
shareholding (B) |
66311194 |
29.28 |
|
Total (A)+(B) |
226485089 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0.000 |
0.00 |
|
|
0.000 |
0.00 |
|
|
0.000 |
0.00 |
|
Total (A)+(B)+(C) |
226485089 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils
and Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
||||||||
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|
||||||||
|
Products : |
· Cold Rolled Galvanised Bhushan Galume Colour Coated Coil Colour Coated Tiles Drawn Tubes of OEM Grade Hardened and Tempered Strip High Tensile Steel Stripping Wire Rods and Alloy Billets Sponge Iron |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Hot Rolled Steel Strips/Sheets/Coils |
MT |
1900000 |
805675 |
|
Cold Rolled Steel Strips/Sheets/Coils |
MT |
1250000 |
1191715 |
|
Cold Rolled Galvanised Steel
Strips/Sheets/Coils |
MT |
540000 |
545196 |
|
Colour Coated Galvanised Steel Strips/Sheets/Coils |
MT |
160000 |
118691 |
|
Precision Tubes |
MT |
140000 |
126642 |
|
Hardened & Tempered Cold Rolled Steel Strips |
MT |
11000 |
12412 |
|
High Tensile Steel Strapings |
MT |
20000 |
9865 |
|
Sponge Iron |
MT |
900000 |
406787 |
|
Billets |
MT |
340000 |
242035 |
|
Wire Rods |
MT |
20000 |
8623 |
|
Formed Sections |
|
3000 |
780 |
GENERAL INFORMATION
|
Customers |
· Alstom BHEL Bajaj Bundy Ashok Leyand Ford Honda Hitachi Hyundai IFB Mahindra GM SKF Kone Carrier Yamaha |
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No. of Employees : |
5828 (Approximately) |
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Bankers : |
·
State
Bank of India ·
Punjab
National Bank |
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Facilities : |
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Banking
Relations : |
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|
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|
Auditors : |
|
|
Name : |
Mehra Goel and Company Chartered
Accountants |
|
|
|
|
Joint Venture: |
·
Andal East Coal Company Private Limited |
|
|
|
|
Associates : |
· Angul Sukinda Railway Limited Bhusahan Energy Limited |
|
|
|
|
Subsidiary companies: |
·
Bhushan
Steel (Orissa) Limited. ·
Bhushan
Steel Madhya Bharat Limited ·
Bhushan
Steel (South) Limited ·
Bhushan
Steel Bengal Limited ·
Parakeet
Finvest Private Limited
(from 25th January, 2012) ·
Marsh
Capital Services Private Limited
(from 25th January, 2012) ·
Paragon
Securities Private Limited
(from 25th January, 2012) ·
Perpetual
Securities Private Limited
(from 25th January, 2012) ·
Jawahar
Credit and Holdings Private Limited
(from 29th February, 2012) ·
Bhushan
Capital and Credit Services Private Limited. (from 29th February, 2012) ·
Bhushan
Steel Global FZE (Upto 7th May, 2011) ·
Bhushan
Steel (Australia) PTY Limited -
Bowen
Energy Limited, Australia -
Kondor
Holdings PTY Limited -
Bowen
Coal PTY Limited -
Bowen
Consolidated PTY Limited ·
Capricorn
Metals Ltd. (Deregistered w.e.f. 4th April, 2011) ·
Capricorn
Resources (Australia) Limited
(Deregistered w.e.f. 4th April, 2011) · Golden Country Resources (Australia) PTY Limited |
|
|
|
|
Enterprises over which
Key Management Personnel and their relatives are able to exercise significant
influence: |
·
Arshiya
International Limited ·
Bhushan
Aviation Limited ·
Bhushan
Infrastructure Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.2/- each |
Rs.800.000 Millions |
|
14500000 |
Preference Shares |
Rs.100/- each |
Rs.1450.000Millions |
|
|
Total |
|
Rs.
2250.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
230605220 |
Equity Shares |
Rs. 2/- each |
Rs.461.210 Millions |
|
9405367 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 940.537 Millions |
|
354000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 35.400 Millions |
|
400000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.40.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1477.147 Millions |
Subscribed and
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
212358310 |
Equity Shares |
Rs. 2/- each |
Rs.424.717 Millions |
|
14157220 |
Equity Shares |
Rs. 1/- each |
Rs.14.157 Millions |
|
9405367 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 940.537 Millions |
|
354000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 35.400 Millions |
|
400000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.40.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1454.811 Millions |
Note:
Detail of
Shareholders holding more than 5% shares:
|
Name of
Shareholders |
As at 31st March,2013 |
|
|
|
No. of Shares |
% Held |
|
(A) Equity Shareholders |
|
|
|
1. Brij Bhushan Singal |
45628672 |
20.14% |
|
2. Neeraj Singal |
73105933 |
32.27% |
|
3. Bhushan Infrastructure Private Limited |
29486540 |
13.01% |
|
(B) Preference Shareholders |
|
|
|
1. Bhushan Energy Limited |
1200000 |
11.81% |
|
2. Bhushan Finance Limited |
840000 |
8.27% |
|
3. Robust Transportation Limited |
531567 |
5.23% |
|
4. Shri Neeraj Singal |
1204400 |
11.86% |
|
5. Brij Bhushan Singal |
707100 |
6.96% |
|
Particulars |
As at 31st March,2013 |
|
|
No. of Shares |
Amount (Rs. In
Millions |
|
|
Reconciliation of
number of shares outstanding is set out |
|
|
|
below: |
|
|
|
(A) Equity Shares |
|
|
|
At the beginning of the year |
212358310 |
424.717 |
|
Add : Shares Issued |
14157220 |
14.157 |
|
Less: Shares Cancelled |
-- |
-- |
|
At the end of the year |
226515530 |
438.874 |
|
(B) Preference
Shares (Non Convertible Cumulative Redeemable Preference Shares) |
|
|
|
10% Preference
Shares |
|
|
|
At the beginning of the year |
7795267 |
779.527 |
|
Add : Shares Issued |
1610100 |
161.010 |
|
Less: Shares Redeemed |
-- |
-- |
|
At the end of the year |
9405367 |
940.537 |
|
4% Preference
Shares |
|
|
|
At the beginning of the year |
399000 |
39.900 |
|
Add : Shares Issued |
-- |
-- |
|
Less: Shares Redeemed |
45000 |
4.500 |
|
At the end of the year |
354000 |
35.400 |
|
25% Preference
Shares |
|
|
|
At the beginning of the year |
400000 |
40.000 |
|
Add : Shares Issued |
-- |
-- |
|
Less: Shares Redeemed |
-- |
-- |
|
At the end of the year |
400000 |
40.000 |
The holders of Equity Shares has one vote for each equity shares held by them. The registerd holders of Equity Shares are entitled to dividend declared from time to time. The Preference Shareholders are entitled to pro-rata dividend in preference over Equity Shareholders. The dividend is cumulative at the rate specified against each category.
The premium on redemption of preference shares to the extent of premium received on issue will be adjusted against the security premium account and any premium paid over the above said amount shall be paid out of current appropriation / General Reserve.
The Preference Share are not convertible in Equity and are redeemable at the option of the company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1454.811 |
1284.144 |
1111.577 |
|
(b) Reserves & Surplus |
89026.194 |
72679.500 |
57852.511 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
3830.100 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
90481.005 |
77793.744 |
58964.088 |
|
|
|
|
|
|
(3) Non-current liabilities |
|
|
|
|
( (a) long-term
borrowings |
216642.128 |
155287.802 |
109693.445 |
|
(b) Deferred tax liabilities (Net) |
13427.818 |
10388.183 |
6983.183 |
|
(c) Other long term liabilities |
21794.561 |
15058.998 |
6477.588 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
251864.507 |
180734.983 |
123154.216 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
52328.639 |
42877.823 |
44741.482 |
|
(b) Trade payables |
16170.235 |
9931.250 |
9920.126 |
|
(c) Other current
liabilities |
21011.854 |
22622.509 |
15285.234 |
|
(d) Short-term provisions |
759.843 |
548.366 |
484.205 |
|
Total Current
Liabilities (4) |
90270.571 |
75979.948 |
70431.047 |
|
|
|
|
|
|
TOTAL |
432616.083 |
334508.675 |
252549.351 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
181415.523 |
157327.164 |
125656.922 |
|
(ii) Intangible Assets |
11.584 |
11.801 |
6.025 |
|
(iii) Capital work-in-progress |
125953.132 |
90686.743 |
53247.265 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
4024.554 |
3047.026 |
1541.324 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
24959.380 |
28260.352 |
28543.917 |
|
(e) Other Non-current assets |
214.014 |
193.754 |
3.500 |
|
Total
Non-Current Assets |
336578.187 |
279526.840 |
208998.953 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
247.500 |
247.500 |
247.500 |
|
(b) Inventories |
55596.755 |
33114.261 |
31684.055 |
|
(c) Trade receivables |
23430.872 |
12203.763 |
4835.331 |
|
(d) Cash and cash
equivalents |
1536.256 |
3349.803 |
347.290 |
|
(e) Short-term loans and
advances |
15226.513 |
6066.508 |
6436.222 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
96037.896 |
54981.835 |
43550.398 |
|
|
|
|
|
|
TOTAL |
432616.083 |
334508.675 |
252549.351 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
107442.697 |
99414.077 |
70004.625 |
|
|
|
Other Income |
173.359 |
273.442 |
695.128 |
|
|
|
TOTAL |
107616.056 |
99687.519 |
70699.753 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
57986.415 |
55067.473 |
42382.553 |
|
|
|
Purchase of Goods Traded |
811.855 |
0.000 |
0.000 |
|
|
|
Change in Inventories of Finished Goods, Work In Progress and Stock- in –Trade |
(1058.367) |
(653.307) |
(4717.536) |
|
|
|
Employee Benefits Expense |
1734.541 |
1439.797 |
1230.922 |
|
|
|
Other Expenses |
14818.588 |
13519.329 |
10804.748 |
|
|
|
TOTAL |
74293.032 |
69373.292 |
49700.687 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
33323.024 |
30314.227 |
20999.066 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
12874.431 |
10462.673 |
4464.108 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
20448.593 |
19851.554 |
16534.958 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
8308.619 |
6199.295 |
2778.453 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
12139.974 |
13652.259 |
13756.505 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
3051.071 |
3417.510 |
3705.646 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
9088.903 |
10234.749 |
10050.859 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
89.309 |
37.769 |
720.833 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
113.258 |
106.179 |
106.179 |
|
|
|
Proposed Dividend on Preference Shares |
1.148 |
0.407 |
37.014 |
|
|
|
Provision for Dividend Tax |
19.443 |
17.291 |
23.230 |
|
|
|
Interim Dividend on Preference Shares |
89.547 |
75.050 |
0.000 |
|
|
|
Dividend Tax on Interim Dividend |
14.527 |
12.193 |
0.000 |
|
|
|
Transferred to Debenture Redemption Reserve |
2696.250 |
847.500 |
547.500 |
|
|
|
Release from Debenture Redemption Reserve |
0.000 |
0.000 |
(100.000) |
|
|
|
Transfer to General Reserve |
6000.000 |
9000.000 |
10120.000 |
|
|
|
Premium paid on Redemption of Preference
Shares |
26.407 |
124.589 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
217.632 |
89.309 |
37.769 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
18128.945 |
14553.645 |
12059.629 |
|
|
|
Interest Received |
1.862 |
14.816 |
2.260 |
|
|
TOTAL EARNINGS |
18130.807 |
14568.461 |
12061.889 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
16794.751 |
14937.369 |
27393.773 |
|
|
|
Stores & Spares |
1219.888 |
599.810 |
1091.688 |
|
|
|
Capital Goods |
12426.676 |
19137.965 |
7861.598 |
|
|
TOTAL IMPORTS |
30441.315 |
34675.144 |
36347.059 |
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted Earnings Per Share (Rs.) |
41.61 |
47.78 |
47.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st
Quarter |
|
Net Sales |
24908.600 |
|
Total Expenditure |
17535.100 |
|
PBIDT (Excl OI) |
7373.500 |
|
Other Income |
33.100 |
|
Operating Profit |
7406.600 |
|
Interest |
4026.100 |
|
Exceptional Items |
0.000 |
|
PBDT |
3380.500 |
|
Depreciation |
2339.800 |
|
Profit Before Tax |
1040.700 |
|
Tax |
278.100 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
762.600 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
762.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.45
|
10.27
|
14.22
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.30
|
13.73
|
19.74
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.79
|
5.67
|
6.96
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.18
|
0.23
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.97
|
2.55
|
2.62
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.51
|
0.72
|
0.62
|
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
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 LOAN
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM BORROWINGS |
|
|
|
Term Loan |
|
|
|
Foreign Currency Loans |
|
|
|
From Indian Banks |
1791.900 |
1678.710 |
|
From Foreign Banks |
4234.735 |
12373.297 |
|
From Others |
84.711 |
115.245 |
|
Less: current maturity of Long Term Borrowing |
(16263.148) |
(15344.103) |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
From Bank |
|
|
|
Rupee Loan |
|
|
|
Term Loan / Commercial Paper |
6803.175 |
11679.365 |
|
Foreign Currency
Loans |
|
|
|
From Indian Banks |
1286.749 |
2765.403 |
|
|
|
|
|
Total |
(2061.878) |
13267.917 |
EXPANSION
PROJECT:
The company is under
implementation of 0.35 MTPA capacity Colled Rolling cum Electrical Steel (CRNGO)
Complex at estimated project cost of Rs.15630.000 Millions at Meramandali,
Orissa.
In addition to the above,
the company shall also be completing the Coke oven plant (1.3 MTPA), Coal
Washery (2.5 MTPA) and 2 DRI Kilns (aggregate capacity of 0.34 MTPA) and 197 MW
Power Plant at the existing site of Integrated steel plant at Orissa in the
current financial year i.e. 2013-14.
In order to maintain its
leadership position in downstream segment of steel industry and to maximize the
margins, the company is setting up the downstream capacity of 1.8 MTPA, where
the company shall come up with PLTCM of 1.8 MTPA and CAL of 1 MTPA with the
estimated capex of Rs.59950.000 Millions at Meramandali, Orissa to fully
utilize its additional HR capacity. With this the company's total downstream
production capacity shall be increased to about 4 MTPA by FY 2017.
FINANCE:
During the year the Company
has tied up the term loans in foreign currency and rupee for its expansion
plans and for the requirement of funds for its normal capital expenditure. The
Company has tied up Rupee Term Loan of f 10420.000 Millions from Axis Bank as
Syndication lead bank for their CRNGO project at Orissa.
The Working Capital
facilities for Sahibabad, Khopoli and Orissa Plants have been appraised by PNB,
the lead Bank, for Rs.113900.000 Millions (Fund Based limit of Rs.53900.000
Millions and Non Fund Based limit of Rs.60000.000 Millions) for the Financial
year 2013-14.
CREDIT
RATING:
The Long Term rating of The
Company is Care A+ by Credit Analysis and Research Limited as per the
provisions of BASEL II guidelines of RBI.
The Credit Analysis and
Research Ltd (CARE) has rated the short term rating at the highest rating of
A1+ (A One Plus) for short term credit facilities of the Company.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY
STRUCTURE AND DEVELOPMENTS
The steel industry is
divided into primary and secondary sectors. The primary sector products are
billets, pallets, rounds and Hot Rolled Coils/Plates (HRC/HRP).These form raw
material for the secondary sector ,which produces value added items such as
Angles, Channels, wire Rods, Cold Rolled Coils/sheets (CRC/CRS) AND Galvanised
Coils/Sheets. CR Sheet is a thinner sheet used for consumer durables like
refrigerators, washing machines, automobiles, bicycles, etc. CR sheets are used
by the automobile and domestic appliances industry whereas CR strips are used
in manufacturing of bicycles, drums, barrels, fabrication, furniture etc. CR
Coils are mainly used for manufacturing GP/GC sheets. Bhushan Steel Limited
which so far falls under secondary sector, also entered in primary sector with
setting up plant at Orissa.
PERFORMANCE
The company is engaged in Steel business, which is context of Accounting Standard (AS)-17 issued by the institute of Chartered Accountants of India is considered the only business segment. The overall operational performance of the company has been much satisfactory during the year. The plants have operated optimally during the year and there were no major break downs or shutdowns.
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013
(Rs. In Millions)
|
Sl. no. |
particulars |
Quarter ended 30.06.2013 |
|
|
|
Unaudited |
|
1 |
INCOME FROM
OPERATIONS |
|
|
|
Domestic Sales |
21489.800 |
|
|
Export Sales |
4579.300 |
|
|
Total Gross Sales
of Finished Goods |
26069.100 |
|
|
Less : Excise Duty |
2325.600 |
|
(a) |
Net Sales of
Finished Goods / income from operation |
23743.500 |
|
|
Other operating income |
1240.00 |
|
|
Less : Excise Duty |
74.900 |
|
(b) |
Net Other Operating
Income |
1165.100 |
|
2 |
Net Sales/ Total
Income from Operations Expenses |
24908.600 |
|
|
a) Consumption of Raw Materials |
14337.800 |
|
|
b) Purchase of Traded Goods |
190.300 |
|
|
c) Change in Inventories of Finished Goods, Work in Progress and stock in trade (Increase)/ Decrease |
(1181.300) |
|
|
d) Employee Benefits Expense |
443.400 |
|
|
e) Depreciation and Amortisation Expense |
2339.800 |
|
|
f) Other Expenses |
3744.900 |
|
|
Total Expenses |
19874.900 |
|
3 |
Profit from
operations before other income, finance costs and exceptional items |
5033.700 |
|
4 |
Other Income |
33.100 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items |
5066.800 |
|
6 |
Finance Costs |
4026.100 |
|
7 8 |
Profit from ordinary activities after Finance costs but before Exceptional items Exceptional items |
1040.700 |
|
9 |
Profit from
ordinary activities before Tax |
1040.700 |
|
10 |
Tax Expense |
278.100 |
|
11 |
Net Profit from
ordinary activities after Tax |
762.600 |
|
12 |
Extraordinary items (net of tax) |
- |
|
13 |
Net Profit for the
Period |
762.600 |
|
14 |
Share of Profit / (Loss) of associates |
|
|
15 |
Minority interest Profit / (Loss) |
|
|
16 |
Net Profit after
Tax, minority interest and share of Profit of associate |
762.600 |
|
17 |
Paid-up Equity Share Capital (Face Value of Rs.2/- each) |
453.00 |
|
18 |
Reserves Excluding Revaluation Reserves |
|
|
19 |
EPS (Not
Annualised) |
|
|
|
i) Basic (Rs.) |
3.31 |
|
|
ii) Diluted (Rs.) |
3.31 |
|
A 1 |
PARTICULARS OF
SHAREHOLDING Public Shareholding |
|
|
|
- Number of Shares |
66341635 |
|
|
- Percentage of Shareholding |
29.29% |
|
2 |
Promoters and Promoters
Group Shareholding a) Pledged/Encumbered |
|
|
|
- Number of Shares |
55050813 |
|
|
- Percentage of Shares (as a Percentage of the total shareholding of promoter and promoter group) |
34.37% |
|
|
- Percentage of Shares (as a Percentage of the total share capital of the company) |
24.30% |
|
|
b) Non-encumbered |
|
|
|
- Number of Shares |
105123082 |
|
|
- Percentage of Shares (as a Percentage of the total shareholding of promoter and promoter group) |
65.63% |
|
|
- Percentage of Shares (as a Percentage of the total share capital of the company) |
46.41% |
|
B |
INVESTOR COMPLAINTS
(Nos.) |
Quarter Ended
30.06.2013 |
|
|
Pending at the beginning of the Quarter |
NIL |
|
|
Received during the Quarter |
4 |
|
|
Disposed off during the Quarter |
4 |
|
|
Remaining unresolved at the end of the Quarter |
NIL |
NOTES:
1. The above results have been reviewed by Audit committee and approved by the Board of Directors at New Delhi on 14th August 2013.
2. During the current quarter the company has made redemption of 693334 10% Redeemable Cumulative Preference Shares of Rs. 100/- each at a premium of Rs. 2900/- per shares. The Board of Directors have approved interim Dividend on aforesaid preference shares on prorate basis.
3. In terms of letter of offer dated January 9, 2013 for the Right Issue and pursuant to first and final call money notice dated May 4, 2013, the company during the current quarter received call money on 14132459 equity shares @ Rs. 167.50 (comprising Re.1/- per equity Share towards share capital and Rs. 166.50 per equity share as share premium). Consequently the paid-up equity share capital of the company has increased by Rs. 14.132 millions. The proceeds from right issue have been utilized as per the objects of the right issue.
4. The limited review for the quarter ended on 30th June, 2013 as required under clause 41 of the listing agreement with the stock exchanges has been carried out by the statutory auditors.
5. The company is engaged in steel business, which in the context of accounting standard (AS)-17, is considered the only business segment.
6. During the Quarter ended 30th June, 2013 production at their Orissa plant got adversely affected due to fire incident at Steel Melting Shop.
7. Earning per share for the quarter ended 30th June, 2012 has been recalculated on account of right issue as required by Accounting Standard (AS)-20.
8. Figures of the quarter ended 31st March, 2013 are the balancing figures between audited figures in respect of full financial year and the published figures of nine months ended 31st December, 2012.
9. Previous period / year figures have been regrouped / rearranged wherever considered necessary.
Fixed Assets
v
Tangible
Assets
Freehold
Land
Leasehold
Land / Building
Plant
and Machinery
Railway
Siding
Furniture
and Fixtures
Vehicles
Office
Equipment
v
Intangible Assets
Computer
Software
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 records 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 pyments 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.61.16 |
|
|
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
62 |
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.